STATE AUDIT OFFICE
- Press Release-
Skopje, 04.03.2026
Identified shortages of tangible assets, including 30 laptop computers, payment of 61% of employee salaries without supporting attendance records, and fueling of vehicles for which ownership by the Ministry of Inter-Community Relations cannot be confirmed
Weaknesses were identified in financial management, payroll, public procurement, asset inventory procedures, implementation of the 2023 Program for Financing the Activities of Associations and Foundations, fuel procurement, motor vehicle servicing, and the internal control system within the Ministry of Inter-Community Relations
The State Audit Office conducted an audit of the Ministry of Inter-Community Relations’ financial statements for the Core Budget account (637), and a compliance audit for 2024. An adverse opinion was expressed regarding the fairness and objectivity of the financial statements and compliance with the applicable legal framework, guidelines, and established policies.
The audit identified weaknesses in the recording and use of funds managed by the Ministry of Inter-Community Relations.
The auditors identified an incomplete inventory of assets and liabilities as of 31 December 2024. Some 28% of total fixed assets, with a current value of 1.565.000 denars (25.360 euros), were not located during the annual inventory. Additionally, due to the absence of a system for issuing handover receipts to employees, 30 laptops assigned for use were also missing.
For seven motor vehicles, no accounting or physical records have been established. For employee receivables amounting to 2.102.000 denars (34.000 euros) originating from previous years (2012–2020), the Ministry does not possess documentation specifying the outstanding amounts and the responsible employees.
Actions were taken during 2024 to address some of the identified issues following a change in management, while other competent authorities are handling the remaining cases.
The audit of the 2023 Program for Financing the Activities of Associations and Foundations, under which funds amounting to 19.800.000 denars (320.900 euros) were disbursed to 33 associations and foundations, identified the following findings:
- The Program was adopted late, in October 2023, when the public call for financial support to associations and foundations was also published. It should have been adopted within 30 days of the Budget’s approval (the 2023 Budget was adopted on 27 December 2022), as required by the Code of Good Practices for Financial Support to Citizen Associations and Foundations.
- Monitoring the implementation of the Program’s activities is the responsibility of the Department for Cooperation with Associations and Foundations. However, during 2024, the period of the Program’s implementation, none of the nine planned positions in the department were filled.
- The 18-member Committee responsible for the allocation of financial resources to associations and foundations from the Ministry’s budget, comprising representatives from various state institutions, did not provide documentation of how each member scored the 138 applications included in the Proposed Ranking List.
- Associations and foundations that were granted the right to use funds from the Ministry submitted part of their documentation in Albanian without a Macedonian translation, which is not in accordance with the provisions of the Law on the Use of the Macedonian Language.
- According to the report on the use of allocated funds and the results achieved by supported activities of associations and foundations for 2023, of the 33 associations and foundations, 17 (51%) are required to return 1.225.000 denars (19.850 euros) because they did not provide evidence of expenditure. As of the audit date, 14 associations have returned 361.000 denars, and two associations are undergoing mediation for the return of 264.000 denars. Legal proceedings have been initiated against one association to recover 600.000 denars.
A total of 165.010.000 denars were paid in salaries and allowances to 244 Ministry employees. For 150 employees (61%), either employed under Subprogram K5 – ‘Adequate and Fair Representation of Communities’ or as translators, salaries were paid without evidence of attendance or full-time work, despite an established electronic attendance system.
Under the Law on Civil Servants, for employees transferred under Subprogram K5, the Ministry is required to amend its staffing structure to align with its operational needs upon their transfer.
The Rulebook on Internal Organization and Job Classification of the Ministry has been amended six times from its adoption in 2019 through 2025, with the required approvals obtained. As of 31 December 2024, out of the 2,556 established positions, 244 positions were filled, representing a staffing rate of 10%. This low level of occupancy is attributable to the lack of alignment with the provisions of the relevant law, which affects the accurate assessment of the Ministry’s actual human resource needs and overall institutional capacity.
In 2025, a functional analysis was initiated to prepare and adopt new Rulebooks on Internal Organization and Job Classification within the Ministry. However, as of the date of the audit, this analysis has not yet been completed.
Regarding the execution of public procurement contracts, auditors noted that during the reporting period, 516.000 denars were paid for petroleum products without verifying vehicle registration numbers or fuel types. As a result, motor vehicles not owned by the Ministry or for which registration information was unavailable were able to refuel and procure liquefied petroleum gas (LPG), which is not authorized under the procurement contract.
During two procurement procedures, auditors found that for the offered prices of 0.01 denars per labor hour for vehicle servicing and 0.01% commission on catering services, the committees did not request explanations for the unusually low bids. Some 2024 vehicle servicing invoices included parts not listed in the tender documentation. Some items were billed at rates several times higher than the accepted bid, and work orders were not attached to the invoices.
In selecting the winning bidder for services from a temporary employment agency, the public procurement committee did not request the required A, B, C, or D licenses as proof of eligibility. The contract was valued at 11.800.000 denars.
For most public procurements, a Final Compliance Audit Report was issued on the topic “Public Procurement in the Ministry of Inter-Community Relations (formerly the Ministry of Political System and Inter-Community Relations) in 2023.”
Recommendations have been made to address the identified issues and call on the responsible officials and bodies to take the necessary measures to improve the situation.
In the Emphasis of Matter section of the Final Audit Report, information was disclosed regarding delays in the transfer of employees under the Law on Civil Servants, employed through the K-5 program in the Ministry of Inter-Community Relations. As a result, 43 employees have still not been transferred to other institutions.
Auditors noted that internal controls have not been established. Furthermore, the Ministry has not implemented a certified quality management system in accordance with ISO 9001. The internal audit function is inactive because internal auditors are not certified and lack the necessary experience.
Additionally, the Ministry has not adopted internal procedures governing its core work processes. Ex-ante and ex-post controls over financial transactions, expenditures, and revenues have not been established. Responsibilities among staff are not clearly defined, resulting in multiple tasks being performed by the same individuals. Moreover, the Head of the Financial Affairs Sector, who is trained in public procurement, also performs tasks related to planning, executing, and implementing public procurements.
Press Contact:
Albiona Mustafa Muhaxhiri +389 72228 203 [email protected]
Mijalche Durgutov +389 70 358 486 [email protected]
Martin Duvnjak +389 75 268 517 [email protected]