Sitting of Standing Audit Group on State Audit Service Reports at the Budget and Finance Committee
The Standing Audit Group considered the results of eight ministries' financial reporting, particularly the State Audit Office's consolidated financial audit reports of the Ministries for the reporting period ending December 31, 2020.
The State Audit Office evaluated the financial statements of eight key government agencies in 2021, according to Paata Kvizhinadze, the Head of the Standing Audit Group, and offered 85 recommendations.
According to him, the Parliament has been analyzing the financial statements in a systematic manner for the past three years, as required by the EU agreement.
"Our European colleagues and we consider this procedure as the primary source of legislative scrutiny - to look into where and how monies are managed”, - Paata Kvizhinadze said.
The sitting was attended by the representatives of the Ministries of IDPs, Regional Development and Infrastructure, Environment Protection and Agriculture, Economy and Sustainable Development, Education and Science, Internal Affairs, Culture, Sports and Youth Affairs, Justice, Defense, and Finance.
"Financial accounting and reporting face substantial obstacles in government systems, including historical and systemic flaws. Despite these obstacles, all ministries achieved accounting progress during the reporting period. I'd want to highlight two ministries in particular: the Ministry of Environment and Agriculture and the Ministry of Defense, both of which have achieved significant progress in several key areas”, - Davit Gogichaishvili, Deputy Auditor General, stated at the sitting.
The Deputy Head of Defense, Public Order and Security Audit Department at State Audit Office of Georgia, Giorgi Khitarishvili presented the outcome of the audits of the 2020 financial statements of the organizations within the structure of the Central Government of Georgia. He provided information to the attendees about the objectives and scale of the audit, and the significant findings and recommendations identified during the process.
Accounting and financial reporting, as well as an examination of the internal control environment, are the key topics of financial audits. The results and recommendations, according to Giorgi Khitarishvili, were made in four directions: asset management, requirements and liabilities, accounting, and general control methods. The audits, he explained, covered the financial statements for 2020 and around 91 percent of the consolidated budget payments, resulting in six negative and two conditional conclusions as well as 85 suggestions. Representatives from the agencies discussed and communicated recommendations made to specific ministries.
The Standing Audit Group will continuously monitor the implementation of the recommendations by the Ministries.
“The goal of examining the results of ministry audits is to produce a unified consolidated report for all agencies while also allowing others to benefit from each other's experiences. Only a few recommendations were noted and requested by the Ministries out of a total of 85 recommendations. One of them was about finances, and the Ministry of Finance stated that it will be resolved. A comment on accounting, receivables, and payables was also made, and we agreed. We shall provide the suggestions agreed by Parliament to the ministries and oversee their implementation”, - Paata Kvizhinadze stated.