Financial Audit Municipality of Klina for the year ended 31 December 2007 21 C. Compliance with laws and regulations Finding # 11 By inspection of issuance of construction licenses in Urbanism Department we found certificates where fees where not changed according to the municipality’s regulation approved on date 28.07.2006 and 31.05.2007. Instead in those cases the municipality used fees determined in the previous internal Municipality regulation dated 03.05.2002. The issued licenses that we are inspected and which are charged by fees based on internal Municipality regulation dated 03.05.2002 are as follows: 1. Benita Company -issued licenses num. 351-1037 from 05 February 2007 2. New Co Motel Nora llc Gllarave-issued licenses num. 351-1007 from 06 February 2007 3. Benita Company -issued licenses num. 351-4246 from 10 September 2007. Due to the above error the Urbanism Department has charged less and the difference is in amount of EUR 17,572 from the selected population of invoices in amount of EUR 49,332. Recommendation We recommend the management to comply with the respective internal end external regulations and decision made thru Municipality’s assembly. This is trial version www.adultpdf.com Annex I Municipality of Klina Financial Statements for the year ended 31 December 2007 This is trial version www.adultpdf.com REPUBLIKA E KOSOVËS REPUBLIKA KOSOVO REPUBLIC OF KOSOVA Klina Municipality Komuna e Klines Opstina Klina Annual Financial Report For the year ending on 31 December 2007 This is trial version www.adultpdf.com 2 9 Budget Report Original Budget Reviewed Budget Final Budget Differences Differences Differences Description Rreg.2006/61 Admin.Dir.2007/xx KFMIS in % in % in % A b c d e=c/b f=d/b g=d/c Total Budget 2007 3,527,613 3,597,613 4,857,644 1.020 1.377 1.35 Wages and Salaries 2,275,942 2,275,942 2,325,750 1.000 1.022 1.02 Goods and Services 534,023 511,423 676,027 0.958 1.266 1.32 Utilities 146,000 146,000 156,000 1.000 1.068 1.06 Subsidies and Transfers 44,000 49,000 118,142 1.114 2.685 2.41 Budget Report including Donor Grants Original Budget Reviewed Budget Final Budget Differences Differences Differences Description Rreg.2006/61 Admin.Dir.2007/xx KFMIS in % in % in % A b c d e=c/b f=d/b g=d/c Total Budget 2007 3,527,613 3,597,613 4,818,059 1.020 1.366 1.33 General Grant 2,877,613 2,877,613 3,028,762 1.000 1.053 1.05 Own Source Revenues of 2007 650,000 720,000 680,550 1.18 1.047 0.94 Own Source Revenues Carried Forward from 2006 - - 198,037 - - - Internal Grants - - 910,711 - - - This is trial version www.adultpdf.com 3 Receipt Report us per Programmes Payments from the General Fund Economic Classification Wages and Salaries Goods and Services Utilities Subsidies and Transfers Capital Outlays Total Social Protection Public Services 235,053 179,136 90,790 26,580 61,723 593,282 Protection - - - - - - Public Security and Order 39,964 25,979 3,901 - - 69,845 Economic development 13,347 2,657 - - - 16,004 Environment Protection - - - - - - Housing Case and community 59,074 26,759 - - 568,014 653,847 Health 336,315 127,813 24,993 4,080 - 493,201 Recreation and Religion 36,817 11,496 - 13,401 - 61,714 Education 1,550,945 138,660 23,305 10,000 13,954 1,736,864 Functional Classification TOTAL 2,271,514 512,500 142,989 54,061 643,691 3,624,756 Payments from the General Fund Economic Classification Wages and Salaries Goods and Services Utilities Subsidies and Transfers Capital Outlays Total Social Protection - - - - - - Public Services 17,247 27,698 - 40,174 471,016 556,135 Protection - - - - - - Public Security and Order - - - - - - Economic development - - - - - - Environment Protection - - - - - - Housing Case and community - - - - 40,950 40,950 Health - 1,674 - - - 1,674 Reorientation and Religion - - - - - - Education - 6,174 - - - 6,174 Functional Classification TOTAL 17,247 35,546 - 40,174 511,966 604,933 This is trial version www.adultpdf.com 4 Statement of Cash Receipts and Payments 2007 2006 Treasury account Treasury account KCB OSR Payment from third parties KCB OSR Payment from third parties Note € '000 € '000 € '000 € '000 € '000 € '000 RECEIPTS General Fund Appropriations 2 2,969 655 - 2,989 616 - Special Purpose Fund Appropriations - - - - - - Designated Donor Grants 3 - - - - - - Other Receipts 4 - - - - - - - - - - - - Total Receipts 2,969 655 - 2,989 616 - PAYMENTS Operations Wages and Salaries 5 2,252 19 - 2,265 25 - Goods and Services 6 315 198 - 394 86 - Utilities 7 133 10 - 157 2 - 2,699 227 - 2,816 113 - Transfers Transfers and Subsidies 8 - 54 - - 37 - Capital Expenditures Property Plant and Equipment 9 269 374 - 173 466 - Other Payments 10 - - - - - - Total Payments 2,969 655 - 2,989 616 - This is trial version www.adultpdf.com 5 Budget Execution Report 2007 2006 Original Budget (Appropriation) Final Budget (Appropriation) Payments Actual Budget Payments A B C D=C-A E Notes € '000 € '000 € '000 € '000 € '000 Cash inflows into Treasury account Taxation 12 Own Source Revenues 13 650 650 740 90 745 Grants and Aid 14 - 511 511 - - Capital Receipts 15 - - - - - Privatization Fund 16 - - - - - Other 17 - - - - - Total Receipts collected for KCB 650 1,161 1,251 90 745 Cash outflows from Treasury account Wages and Salaries 18 2,276 2,276 2,289 13 2,299 Goods and Services 19 534 511 548 14 492 Utilities 20 146 146 143 (3) 169 Transfers and Subsidies 21 44 49 94 50 39 Capital Expenditures 22 528 615 1,156 628 709 Privatization Fund 23 - - - - - Other 24 - - - - - Total Payments made from KCB through STA 3,528 3,597 4,229 701 3,708 This is trial version www.adultpdf.com 6 Notes Disclosure 2 General Fund Appropriations 2007 2006 KCB OSR Total Economic Classification € '000 € '000 € '000 € '000 Wages and Salaries 2,252 19 2,271 2,299 Goods and Services 315 198 513 492 Utilities 133 10 143 169 Subsidies and Transfers - 54 54 39 Capital Outlays 269 374 643 709 2,969 656 3,624 3,708 3 Designated Donor Grants 2007 2006 Economic Classification € '000 € '000 Wages and Salaries 17 35 Goods and Services 36 88 Utilities - - Subsidies and Transfers 40 16 Capital Outlays 512 552 605 691 This is trial version www.adultpdf.com 7 5 Wages and Salaries 2007 2006 KCB OSR Total Description € '000 € '000 € '000 € '000 Payments from KCF Net salaries 1,932 - 1,932 2,870 Personal Income Tax 67 4 71 - Employer pension contribution 107 1 108 136 Employee pension contribution 107 1 108 - Payments for Unions -0.10% to 0.50% 3 - 3 - Overtime payments 6 14 20 36 Daily payments for Parliament and committee members - - - - Meals - - - - Shifts - - - - Contracted per diems - - - 1 Participation in Assembly 29 - 29 42 2,252 19 2,271 3,086 Payment from Grants Full time salaries - - - - Overtime wages - - - - Contracted payments - - - - - - - - Totals 2,252 19 2,271 3,086 This is trial version www.adultpdf.com 8 6 Goods and Services 2007 2006 KCB OSR Total Description € '000 € '000 € '000 € '000 Payments from KCF Travel expenses 1 2 3 24 Travel expenses out of the country 7 3 10 7 Internet expenses - 1 1 4 Phone expenses 4 3 7 8 Other Health Expenses - 2 2 2 Representation expenditures 1 - 1 4 Intelligences expenses - - - - Other contracted expenses 4 29 33 17 Ethnical services 11 1 12 3 Computers under 1000 3 2 5 - Hard. per TI - - - - Equipment under 1000 3 5 8 12 Furniture under 1000 - - - 6 Computers under 1000 - - - 2 Other contracted expenses - 10 10 3 Computer from 1000 to 5000 - - - 11 Other equipments (1000 - 5000) - 9 9 12 Traffic Equipment to 5000 E - - - 3 Equipment more than 1000 9 - 9 12 Office Supplies 38 31 69 68 Foods and Drinks 3 5 8 10 Medical supplies 18 7 25 12 Cleaning 4 2 6 5 Clothes supplies 5 - 5 8 Fuel - - - 3 Heating 30 17 47 72 Fuel for heating - - - 5 Coal expenses 22 - 22 35 Wood expenses 42 5 47 45 Oil for generator - 5 5 21 Cars Oil 39 12 51 35 Advance for official travel - 1 1 - Cars registration 6 1 7 - Building insurance 2 - 2 4 Cars maintenance 21 12 33 5 Building maintenance and repairs 11 10 21 34 Roads maintenance 2 - 2 11 IT maintenance 5 4 9 2 Marketing expenditures - 5 5 - Furniture maintenance 1 2 3 6 Public expenses 1 2 3 9 Printing and publication 11 3 14 1 Official lunches 10 7 17 22 315 198 513 543 Travel expenses - - - 3 Furniture’s and equipments - - - 21 Heating - - - 3 Maintenance and repairs - - - 3 - - - 30 Totals 315 198 513 573 This is trial version www.adultpdf.com . Financial Audit Municipality of Klina for the year ended 31 December 2007 21 C. Compliance with laws and regulations Finding # 11 By inspection of issuance of construction. version www.adultpdf.com Annex I Municipality of Klina Financial Statements for the year ended 31 December 2007 This is trial version www.adultpdf.com . OF KOSOVA Klina Municipality Komuna e Klines Opstina Klina Annual Financial Report For the year ending on 31 December 2007 This is trial version www.adultpdf.com