FINANCIAL AUDIT ON THE FINANCIAL STATEMENTS KLINA MUNICIPALITY FOR THE YEAR ENDED 31 DECEMBER 2007 _part3 potx

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.

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Annex I
Municipality of Klina
Financial Statements for the year ended 31 December 2007

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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

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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

- - -


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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
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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 -


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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



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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

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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


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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

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