The Pharmacy of Montenegro “Montefarm” has successfully implemented 20 recommendations from the State Audit Institution (SAI), with 12 ongoing and three yet to be executed.

As per the DRI report released two days ago, the board of directors at “Montefarm” has adopted a recommendation to routinely approve work and development programs in compliance with the Statute, alongside adopting financial reports per legal requirements, which was previously overlooked. One recommendation has seen partial implementation, and the institution must submit a new report within six months.

“Montefarm” has adhered to the advice of submitting annual financial reports to the Tax Administration regularly, as mandated by the Law on Accounting. They also have set procedures for writing off medicines and medical devices of greater value, requiring prior review by the inventory commission before a decision by the director.

The SAI’s recommendation to establish internal procedures governing the costs and rights related to representation, as well as the maximum permissible expenses for such purposes, has also been acted upon. Additionally, “Montefarm” has complied with the recommendation to enforce mandatory checks of incoming invoices, which should include essential details regarding the type of goods distributed, number of tenders, etc. Furthermore, they embraced the recommendation to develop an internal procedure detailing rights, limitations, and justifications relating to corporate and social responsibility and sponsorship spending. An employee code of ethics, a Risk Register, and an internal procedure for the utilization of official vehicles have also been adopted.

However, “Montefarm” has yet to fulfill recommendations against engaging temporary employment agencies for standardized positions during hiring. Furthermore, it has not established a procedure ensuring that compensation and other income for Board members are disbursed based on decisions made by the appointing authority. The Board did approve a decision regarding compensation approved under the Law on Salaries of Employees in the Public Sector, which is pending endorsement from the Ministry of Finance before being presented to the Ministry of Health, for subsequent submission to the Government.

Additionally, “Montefarm” has not yet created an internal procedure for the calculation, collection, and documentation of its revenues. A commission is currently working on this aspect, and the institution is mandated to provide a new report on the advancements of these recommendations in six months.

In 2023, the SAI issued a negative evaluation regarding the audit of this public institution, leading to the findings being forwarded to the prosecutor’s office and the dismissal of the former director, among other consequences.

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