National Audit Office to conduct financial audits of municipalities with a budget of less than BGN 10 M based on risk assessment
November 24, 2010
The Audit Office will conduct financial audits of municipalities with a budget of less than BGN 10 million, based on their risk assessment and at intervals set by the latter. These are provisions of the Audit Office (Chamber) Bill, adopted at second reading. Municipalities with annual budgets exceeding BGN 10 M are to be audited by the Audit Office. The deputies have given the municipalities with a budget under BGN 10 million, the discretion to choose private registered auditors to certify their annual financial statements. The chairman of the audit institution shall inform the Minister of Finance to undertake legal action for missed, late or refused certification of financial statements. The parliament has decided to impose a penalty at the amount of BGN 2000 to 10 000 when an inspection obstruction has occurred. The Council of Ministers, the National Social Insurance Fund (NSSI) the National Health Insurance Fund (NHIF) and the National Bank (BNB) are obliged to submit to the Audit Office the reports on the implementation of their budgets within seven days after the approval of their respective managing bodies. The Office, in turn, must submit the reports to the National Assembly, together with its opinion, within three months.