State Audit Office
- Press Release -
Skopje, 20.02.2025
Weaknesses in the Implementation of Employment Measures and Uneven Distribution of Funds in 2023
In 2023, weaknesses were identified in the implementation of employment measures, including an uneven distribution of funds among planning regions. Shortcomings were also observed in activities aimed at advanced IT skills training, which is one of the Agency's objectives, indicating the need to improve efficiency and fair allocation of resources
The State Audit Office conducted an audit of the financial statements along with a compliance audit of the Employment Agency of the Republic of North Macedonia (the Agency) for 2023.
SAO issued a qualified opinion on the accuracy and objectivity of the financial statements and an adverse opinion on compliance with legal regulations, guidelines, and policies in place.
For unemployment benefits in 2023, the Agency has paid out 1.305.639.000 denars (21 million euros), which is a decrease of 102.071.000 denars compared to 2022.
Payments for Unemployment Benefits (2019-2023)
The audit revealed that the documentation related to some payments was incomplete. Specifically, parts of the required documentation were missing due to inefficiency in the operations of certain employment centers. There was also a lack of timely data exchange between the Agency and the Pension and Disability Insurance Fund, attributed to the lack of an established electronic data exchange system and integration of records resulting in delays beyond legally defined deadlines.
In 2023, 1.239.596.000 denars (20 million euros) were allocated for 14 employment programs and measures under the operational plan, a 13% decrease compared to 2022 (1.420.003.000 denars or 23 million euros).
Distribution of Funds by Programs and Measures (2022 and 2023)
The largest part of the funds for active employment programs and measures were allocated for the "Support and Self-Employment" (entrepreneurship) measure.
One of the criteria for allocating funds for active employment measures is balanced regional development. The auditors found that the principle of balanced regional development for the eight planning regions was not adhered to in the distribution of funds, as defined in the operational guidelines and plan.
Certain planning regions have received significantly higher allocations than stipulated in the Decision on the planning regions’ classification according to the development level, while the central and eastern regions have been underfunded. In some cases, the Skopje region and western planning regions have received funds exceeding the defined amounts by up to four times.
Payments by Planning Regions
Internal controls for the legal and earmarked use of funds for active employment measures were found to be inappropriate and insufficient. Many reports consisted of general statements without a detailed description of how the funds or subsidized equipment were utilized.
In 2023, 87.080.000 denars (1.4 million euros) were spent on advanced IT skills training, a 54% increase compared to 2022. However, only 22% of candidates completed the training by September 2024, indicating that the measure did not achieve its intended effect.
The auditors also identified weaknesses in the public procurement process for heating fuel (pellets) worth 2.100.000 denars (34.000 euros), where market prices at the time of delivery were less than half of the procurement price.
Additionally, irregularities were found in the procurement of IT equipment (PCs, laptops, and printers) under a contract worth 20.587.000 denars (334.800 euros), completed in 2024. These issues impacted the economical, effective, and efficient use of funds and adherence to public procurement principles.
The Collective Agreement of the Agency provides for points for the director and deputy director, contrary to the Law on Employment and Unemployment Insurance. Since June 2019, this shortcoming has been planned to be resolved through managerial contracts between the appointees and the Government. However, as of the audit date, salaries for the director and deputy director were paid without signed managerial contracts, affecting payroll calculations and leadership management.
Recommendations have been provided to the responsible individuals and bodies to take measures and activities aimed at addressing identified issues and improving the situation.
Албиона Мустафа Мухаџири +389 72228 203 [email protected]
Мијалче Дургутов +389 70 358 486 [email protected]
Мартин Дувњак +389 75 268 517 [email protected]