Official title of the project

Strengthening Capacities of the State Audit Institution of Serbia


Project information

Region / City
Total budget of programme / project

EUR 1,400,000

Implementation period
2012. Oct - 2014. Oct
Expected results

1.Comprehensive review of the SAI-related legal framework (laws, bylaws and regulations) completed with clear targets for further alignment with EU and international standards

2.SAI introduces an appropriate organisational structure in accordance with good international practice and Intosai Capacity Building Guidelines for SAIs

3.SAI staff is capable of performing all types of audit in accordance with the Law on SAI and international auditing  standards

4.External communication and visibility of SAI improved on national and international level


State Audit Institution

Target Groups

Direct and indirect budget beneficiaries of the Republic, territorial autonomies and local authorities; mandatory social insurance organisations; budget funds; National Bank of Serbia, public enterprises, companies, and other legal entities, estab

Summary of the project

The State Audit Institution like some other institutions with oversight function in Serbia was facing difficulties in carrying out their mandates due to lack of resources and inadequate official follow-up to their decisions and recommendations.

Speeding up the introduction of the fully functional State Audit Institution was one of the recommendations of the Group of States against Corruption (GRECO) – Recommendation XXV stated in the Evaluation Report on the Republic of Serbia (Strasbourg, June 23rd 2006). In the GRECO Compliance Report on the Republic of Serbia (Strasbourg, June 13th 2008), special emphasis is put on the role of the State Audit Institution in controlling public procurement process and establishing further cooperation channels between public and private auditing bodies. Likewise, in the conclusions of the Report, this anti-corruption body states that the Recommendation XXV, relating to establishment of national auditing authority has been partly implemented, and that personnel recruitment, IT development and training are expected to take place throughout 2008, which would enable the effective operation of the State Audit Institution.

In 2010 Progress Report for Serbia, it is pointed out that State Audit Institution has expanded in terms of both staff and office space. Furthermore, the Progress Report positively remarks that the Law on the State Audit Institution (SAI) was amended in May 2010 primarily to allow easier recruitment of audit staff and better salary conditions. However, it is still considered that the setting up of the State Audit Institution remains slow and that the first audit report produced covered only a small part of the state budget. This brought up the subsequent conclusion of the Progress Report that the SAI is not yet fully operational and that further audit staff needs to be recruited. In general, it is estimated that there has been progress in this area, but that Serbia is still at an early stage

Programme/Project objectives

Overall Objective is to enhance accountability and effective management of public and EU funds in Serbia and strengthen Serbian audit institutions

Project purpose is to provide further support to State Audit Institution in aligning its organizational structure, procedures, practice and the overall performance with international standards and EU best practice