Numerous irregularities in financial management of Faculty of Philosophy without sanctions

Centre for Civic Education (CCE), in line with its efforts to make things right when it comes to management of University of Montenegro and its units, points out at additional information regarding the irregularities in the financial management of Faculty of Philosophy of University of Montenegro, which have been documented in the audit reports available to the CCE.

In addition to irregularities that the CCE published yesterday, Memorandum of audit of Faculty of Philosophy (warrant no. 07-2255, 07-2255/1) and Conclusion of MB (no. 07-183) lists numerous others.

One set of those irregularities relates to misconducts that took place during the engagement and payment of compensations to associates.

For instance, in 2011, the payment of cash to external associates for fees and trainings was done. Moreover, in addition to compensations for implemented teaching course, associates were awarded with per diems, travel costs and accommodation, which amounted 117.780,86 € in 2011, out of which 96.701,00 € was paid in cash. In 2012, total amount based on these costs amounted 118.289,12€, out of which 75.037,04 € was paid in cash. In general, cash payment of such big portion of costs affected the transparency of management in a negative manner, as well as the better supervision conditions, and simultaneously increased the room for abuse significantly.

Also, compensations to associates, related to conduct of teaching course for study programme in Berane and for Psychology programme, were paid according to individual Dean’s decisions in much greater amount than it was envisaged within concluded agreements on the engagement and Collective agreement. This is creating an impression that Dean managed with the Faculty resources as if these were his personal ones!

Finally, it was determined that 15.959,46 € were paid for compensations in gross amount in 2011 for the engagement of 9 persons employed without internal and public advertisements, which was discovered based on the insight in lists of engaged foreign associates. This tendency was continued in 2012, when 15 persons were hired without internal and public advertisements, and neither the audit was able to determine the manner of their engagement, but it was determined that their compensation amounted 26.363,40€.

There are also numerous irregularities in the management of cashier. Thus, the inexistence of evidence is notable for 2012 – cashiers warrant for cash payment of the compensation for accommodation is missing, driver’s signatures on fuel bill were different, bills for purchase of stuff for hygiene were not addressed to Faculty of philosophy and similar. In 2011, a shortage of 9.341,95 € was hidden through the mismatch of state of resources in bank account and in cashier with state of the same in Main Book, as well as the lack of documentation regarding the justification of costs on grounds of received advance payments, based on which costs of payments from cashier were less presented in the amount of 10.027,75€. Also, the inadequate documentation for travel costs was determined for 2011, more precisely, travel orders are not accompanied with letters of invitation, Dean’s decision for official trip, confirmations on the participation on seminars, etc. Also, the credibility of some travel orders is questionable in terms of its credibility, for instance: per diem was paid by travel order, transport on relation Niksic – Pale – Niksic and fees, and with that same order accompanied documentation was for the work of section which was organised on Faculty of Philosophy in NK!

In addition to this, Faculty of Philosophy ended up with yet another debt to suppliers in 2011 in the amount of 82.059,50€.

Based on the analysis of audit reports, it can be concluded that practically no procurement was conducted in accordance with the Procurement Law. Thus, illegal procurement procedures for hygienic items, office material, transport services, constructions, etc. were noted in 2011. In 2012, there were numerous examples of illegally submitted supply offers for hotel services, taxi services, transport of professors, etc. and without a red tape or sealing wax, so that the individual conditions could be additionally included, removed or changed, or attachments and that the wax is not visibly damaged or the papers of submitted offer. In that same year are the examples of more procurement than it was supposed to be based on concluded procurement agreements, failure to conduct procurement procedures (e.g. for the purchase of airplane tickets in the amount of 39.396,00 € with agency Miross there was no procurement procedure, as well as for purchase of catering services in the amount of 8.826,00 € with supplier Vajoma system).

In the end, the disproportions in conducted procurement and costs documented in accountancy is dramatic in 2012. Namely, according to documentation submitted to the auditor, realised procurements amounted 86.500,00€, while the costs, according to data from accountancy in positions in which the documented costs of supply of goods, services and work were presented in the amount of 316.739,53€, with the reserve of auditor that the expenses for official trips were not separated from per diems, use of personal vehicle and transport service.

CCE will continue to point out on these and similar information and negative practices that are inappropriate for an academic institution that should be a role model in every aspect and set an example to students it educates, as well as to practices which should be subject to urgent proceeding of responsible ones from both of Faculty of Philosophy and management of University of Montenegro. Questions remain: why did the management of UoM kept this internally instead of informing competent authorities on this matter in order for them to react? Is that the expression of fear of management of UoM from opening “Pandora’s box” that could take in its vortex many others from that same management?

Daliborka Uljarević, Executive director