The State Audit Institution (DRI) has published a conditional opinion regarding the financial audit and compliance review of the annual financial statement of “Barska Plovidba” AD Bar for the year 2024. This evaluation, conducted by a specialized team led by Vesna Mihailović, a Senate member of DRI, and Siniša Čađenović, Senate President, highlighted significant discrepancies in the company’s financial reporting and operational compliance.
During the financial audit, it was determined that material misstatements in the financial statements for 2024, while individually or cumulatively significant, did not pervade the overall financial reports. Consequently, the DRI issued a conditional opinion on the financial audit. Notably, the company failed to report the value of artworks, items, and the contents of its photo archive and library, which were documented by a commission responsible for the inventory of intangible investments and fixed assets. Additionally, the company could not provide documentation related to the valuation of these assets, prompting the DRI to recommend that “Barska Plovidba” record and disclose these values in its financial statements once established.
The compliance review of the annual financial statement for “Barska Plovidba” AD Bar revealed that the company had not fully aligned its business activities with applicable laws and regulations. The audit identified discrepancies with several legal frameworks, including the Labour Law, Law on Management and Internal Controls in the Public Sector, Law on State Property, and Law on Accounting. While these deviations were material, they did not significantly impact the established criteria for the compliance audit, which led to the issuance of a conditional opinion.
Furthermore, the audit found that the company had not prepared a Business Plan since 2022, which would define strategic goals, development plans, market analysis, risk assessments, and financial projections for the upcoming period. The DRI has advised the company to create a comprehensive Business Plan that encompasses both short-term and long-term objectives, competitive market analysis, development and marketing plans, risk mitigation measures, financial revenue and expenditure projections, and key performance indicators. This plan should be submitted to the relevant authority for review and approval.
Notably, the company did not establish an internal audit function as required by Article 49 of the previously applicable Law on Management and Internal Controls in the Public Sector, nor did it prepare and submit an annual report on its management and control activities. The DRI recommended that “Barska Plovidba” rectify these deficiencies in accordance with the new laws governing management, internal control, and internal audit.
In 2025, the company entered into fixed-term employment contracts with two individuals without public advertisement, contravening Article 24 of the Labour Law. The DRI has urged the company to fill vacancies solely through public announcements in accordance with legal requirements.
From 2019 to 2022, “Barska Plovidba” faced challenges in securing liquidity to repay debts to a Chinese bank, the Export-Import Bank. During this period, the Government of Montenegro issued four decisions transferring the necessary funds to the company to meet its credit obligations. These funds were recorded under account 4231, labeled as a loan from the Government. The audit revealed that some short-term obligations were not reconciled with the Government, with the Ministry of Finance seeking only the amount that was transferred to the Chinese bank during 2024 and 2025 under an issued guarantee. However, an amount of €6,000,000 related to subsequent credit payments was not formally reconciled with the relevant ministry. The DRI recommended that the company align its views on the status and repayment method of its obligations with the ministry and subsequently adjust its accounting records to accurately reflect its obligations.
Following the issuance of ten recommendations, the company is required to develop and submit an action plan to the DRI by March 16, 2026, for the implementation of these recommendations. Additionally, a report on the actions taken in response to the recommendations must be submitted by July 31, 2026.
The final report on the audit of the annual financial statement for “Barska Plovidba” AD Bar for the year 2024 has been presented to the company’s Board of Directors for further action. The report has also been submitted to the Government of Montenegro, the Ministry of Finance, and the Ministry of Maritime Affairs for necessary measures. Furthermore, it has been made available to the Committee on Economy, Finance, and Budget of the Parliament of Montenegro.
The public can access the full content of the final audit report on the official website of the DRI at www.dri.co.me.
