Legal Obligation on Monitoring the Recommendations

1. LEGAL OBLIGATION ON MONITORING THE RECOMMENDATIONS According to the Law on State Audit auditees should notify SAO for the measures and activities taken on recommendations within 90 days of receipt of the final report. In order to implement this activity SAOhas drafted and adopted a methodological act - Manual for follow-up audits.

2. TYPES OF PROCEDURES FOR MONITORING THE RECOMMENDATIONS • Monitoring the effects from the audit /ИЗПМ; • Review actions and measures taken upon recommendations during the current audit; • Procedures on follow-up checks after final reports are issued (in January and February) and, • Follow up procedures as a separate audit. In order to increase the efficiency of monitoring the implementation of recommendations SAO developed a software tool which has an option to follow up the status of given recommendations in the final audit reports.

3. FOLLOW UP Follow-up of SAIrecommendations can serve for: • Increasing the effectiveness of audit reports - the main reason for monitoring of audit reports is to increase the probability that the recommendations will be implemented; • Help the legislative and executive authorities – monitoring may be very useful for guiding the activities of the Government and the Assembly; • Evaluation of SAI operation – the follow-up procedures provide the bases for evaluation of the work of SAI, and • Gives an incentive for learning and progress – follow-up can contribute to increase auditors knowledge and better practice .

4. FOLLOW - UP • In 2012 SAO officially started with processing data from the Final Audit Reports; • SAPRIis a software witch provides reliable, timely and relevant information to SAO (in preparation of Annual Report; Annual Programme, other internal reports, different analyzes as well as other purposes). • It provides fast, efficient and continuous exchange of information and data within the SAO; • For the purposes of the Parliament, PPB, SCPC and other institutions in accordance within their mandate; • SAPRI software provides data on the audited municipalities, the number and type of findings in audit reports, on the status of the recommendations, the percentage of audited revenues and expenditures , expansion of public spending at local level / type of audit opinions e.t.c.

5. FEATURES OF SAPRI • It is based on modern technical - technological solutions, development platforms, security and backup options; • Provides protection and security of data and resources at multiple level and across all stages of data entry, transfer, processingandoutput; • Provides individual access rights, with exact log in procedures in different levels; • Fast, flexible and easy to use which provides numerous reports in various formats: tables, graphs , pies , etc.

6. MODULES • Module – records of auditees; • Module for preparation of annual program of SAO and monitoring its execution; • Module for recording the data from audit reports; • Module for processing, monitoring and analyzing the status of recommendations; • Module with output reports.

7. Findingsreview

8. Reviewofrecommendationsbytypeoffindings

9. Feedback on the status of recommendations implemented after follow-up

10. Status of recommendations after regular audit

11. Conclusion The audit procedures for monitoring the implementation of recommendations increase the efficiency of audit results, improve the performance of the municipalities, … and the central government undertakes measures for improvement of certain legal solutions where systemic weaknesses have been identified, while the SAPRI software provides timely and active monitoring of the audit recommendations status.

12. Contact: liljana.stojanova@dzr.gov.mk blerta.selmani@dzr.gov.mk www.dzr.mk