Audit of Pljevlja Clubs Uncovers Multiple Irregularities
This is highlighted in the Audit of Transfers Allocated for Sports in 2024, conducted by the Internal Audit Service of the Municipality of Pljevlja.
The municipality’s President Dario Vranes stated to “Vijesti” that every cent of taxpayers’ money should be spent openly, transparently, and legally.
“The sports budget for Pljevlja is relatively substantial, provided the funds are utilized for their intended purposes. Some may unfortunately view this as merely a change in leadership rather than a genuine shift. I will advocate for a thorough investigation into any potential illegal activities and inappropriate spending of funds. Our role is to serve the citizens, not the other way around,” Vranes emphasized.
Last year, the municipality allocated 829,000 euros for sports financing, a significant increase from the previous year. The majority of the funds, amounting to 450,000 euros, were designated for a quality sports program. Nineteen sports organizations competed for the funding, with a total of 442,000 euros awarded.
As per the competition rules, clubs and sports organizations receiving funds are mandated to utilize them as intended and to submit semi-annual and final reports on their expenditures at the year’s end.
In the report signed by the head of the service, Vladimir Gluščević, serious irregularities were noted in the program execution of the Women’s Football Club Breznica, which received 59,499 euros from the municipal budget. The club filed 16 requests for program co-financing, which included costs for match play as well as expenses for food (17,900 euros), accommodations at “Taša” LLC (15,152 euros), lodging at “Faraon” (5,110 euros), and net salaries for coaches (9,000 euros).
Among the invoices was one documenting 2,880 overnight stays priced at 1 euro each, issued in May last year.
“The FK Breznica program showcases severe irregularities that warrant further and deeper analysis (including past funding years), legal actions, and a review of previous funding practices,” the auditor’s opinion reads.
In the conclusion, the auditor highlights a myriad of issues regarding cost justification and the fiscal validity of submitted invoices.
“Invoices lacking a QR code, issued by doo ‘Čarobnjak’ and ‘Faraon’ lodging (totalling 6,968.9 euros), were deemed non-compliant with the Tax Administration’s Law on Fiscalization in Sales of Products and Services. Consequently, these invoices cannot be classified as reliable accounting documents. Accommodation costs were overstated, including an invoice with 2,880 overnight stays priced at 1 euro nightly. Inspections by the Police Administration revealed that out of a total of 19 players, only two utilized accommodation services during the specified period, raising significant concerns regarding the legitimacy of the reported overnight stays. This also applies to a December 2023 invoice, where out of nine female players, only one was recorded, with a notably reduced number for reported overnight stays. Food invoices were aggregated and ambiguous, lacking clear records of daily users. Documentation for most costs was not attached. The data presented was non-transparent and illogical, with many varying meal types invoiced simultaneously on the same day, alongside unsubstantiated meal counts. Income from membership fees (projected at 1,000 euros) is not reflected in the financial documents, indicating either inaccurate or incomplete income records,” the report asserts.
For the Rudar Youth Handball Club, auditors found receipts from dining establishments that included alcoholic beverages, which contradicts the program’s intended purpose.
“Attention must be drawn to expenses that are unjustified and include inappropriate items such as alcohol, food allowances exceeding the legally non-taxable limit without proper tax or contribution calculations, and the absence of documented contracts with players supporting payments made, along with missing reports on the women’s selection which preceded additional scoring considerations for co-financing amounts,” the report states.
The auditor also noted that the women’s team had not officially played any games in Pljevlja and was based in Podgorica while only being formally registered in Pljevlja.
Rudar Pljevlja football club was allocated 81,825 euros for 2024; however, total expenses soared to 93,896 euros, including an additional 5,000 euros from budget reserves and obligations carried over from 2023.
“The club primarily used funds for match and travel expenses, as well as salaries for players and coaching staff, all without accompanying contracts. Medical exams and catering service expenses were noted but to a lesser extent. The audit revealed that several payments, particularly those related to salaries, lacked proper documentation justifying their purpose and legal basis, which poses risks concerning the transparency and legality of expenditure,” the auditor’s report reads.
The Rudar volleyball club realized 41,133 euros, with expense justifications indicating service contracts for coaches, airline tickets, and fines for unplayed games. The audit raised concerns about potential fund misuse.
The club reported 162 members and provided a membership registration certificate from the Federation. However, no income from membership fees was documented in the financial statements. They filed requests for co-financing match-related expenses, including transportation. They also paid service contracts for coaches, equipment purchases, and fines for games not played,” the auditor remarked.
The Pljevlja Basketball Club had a contract worth 46,673.58 euros, but realized 48,568 euros. Funds for food (15,900 euros over four months) and accommodation at “Taša” LLC, charged 1 euro per night, raised serious concerns, with overnight stays ranging from 160 to 467 euros, depending on the month.
“The club submitted nine requests for fund realization, with a significant portion pertaining to food contract payments, totalling 15,900 euros for four months. The audit revealed irregularities and inaccuracies, particularly in invoices from doo ‘Taša,’ where accommodation costs were recorded at a nominal price of 1 euro per night combined with extremely high overnight stay counts compared to tourist tax and insurance figures. Explanations were inadequate, primarily concerning food users while information about accommodation users was missing. Additional checks by the Police Directorate confirmed accommodation for only two players during the specified time, raising doubts about the credibility of reported overnight stays, compromising the appropriate use of public funds. Furthermore, food payments to players showing a variance from December to March complicates both auditing and transparency monitoring of public funds. One list indicated that food expenses were paid for both coaches and players, showing user counts fluctuating between 12 and 15, with fixed monthly payments of 300 euros per person,” concludes the auditor.
FK Pljevlja realized 18,173 euros. Funds were allocated for match costs, transport, medical exams, and daily allowances for players (ranging from 20 to 50 euros based on playing status), and service contracts for coaches (300 to 450 euros). Discrepancies were noted concerning member numbers versus active players.
The Pljevlja Cycling Club was granted 11,329 euros last year, with requests submitted for equipment purchases, competition travel, accommodation funding, and registration fees.
“A monthly coaching fee of 450 euros (GC) was also approved along with his plane ticket from Germany and fiscal receipts provided upon arrival. However, there was no request for co-financing of a race held in Germany,” the auditor noted.
Funding of 9,876 euros was allocated to the Ris Karate Club, primarily for competition-related expenses, registration fees, transportation, food, venue rental, and equipment acquisition.
They reported projected earnings of 3,000 euros from membership fees, citing 64 members and submitting a registration certificate.
The Potoci Karate Club received 9,301 euros in co-financing.
“Lack of evidence regarding membership through registration certificates may impact data accuracy,” the auditor remarked.
The Potoci Karate Club stated that they generate 2,000 euros from membership fees, maintaining 62 members, and submitted requests for funds justifying travel expenses related to competitions, registration fees, food, rental costs, fuel, coaching per diems, and hall rental.
The Rudar Athletic Club received 21,225 euros in co-financing.
“No membership fee income was reported, although they reported 139 registered members. Requests pertained to competition travel expenses within the country and region, food and accommodation for competitions, transport costs, hall expenses, equipment, and props purchasing, as well as seminar attendance and accounting services. Alongside a request for participation in a competition in Bar, invoices related to shoe purchases from Dubrovnik were submitted,” the report specifies.
Funding for the Rudar Chess Club and the Elementary and Secondary School Chess Club totalled 4,728 euros and 7,905 euros, respectively. The Pljevlja Judo Club received 5,272 euros, the Pljevlja Kickboxing Club 4,948 euros, the Centar Steljacki Club 4,912 euros, and the AP Sport Auto Moto Club 9,364 euros, all without reported member registration evidence.
Co-financing for the Handball Club Pljevlja 01 stood at 15,399 euros.
“Requests were made concerning costs for matches, training hall rentals, equipment acquisition, and food costs, although no food invoices were attached. A service contract was signed with the club president GM, also the coach, for an annual period at 450 euros monthly, stipulating that he would not receive payment for months without training. The contract was made between himself as both contractor and client,” the internal auditor remarked.
The North Star 2014 football club obtained 2,000 euros from the municipality last year for financing its work program.
“The club submitted two separate requests, one containing an administrative error as the same payment slip was submitted twice for sports equipment purchases. The first request included both the payment slip and invoice, while the second contained only the payment slip,” the auditor’s report indicated, among other findings.
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