Presentation by the State Audit Institution of North Macedonia, on the Compliance audits on topics concerning the prevention and protection from the pandemics caused by the coronavirus COVID-19, at the SIGMA webinar on the audit of COVID-related expenditures, held on 17 February 2021.

1. COMPLIANCE AUDITS
ON TOPICS CONCERNING THE PREVENTION OF AND PROTECTION FROM THE
PANDEMICS CAUSED BY THE CORONAVIRUS COVID-19
“
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
STATE AUDIT OFFICE
Republic of North Macedonia
Audit Team:
Ms.Dobrinka Veskovska, Assistant to the Auditor General
Ms.Mirjana Simakoska, Senior Auditor
Mr. Sasho Mateski, Senior Auditor
Ms. Daniela Todorovska, Auditor
Mr. Isamedin Murati, Auditor
Ms. Julija Takovska, Auditor
SIGMA Webinar
Audit of COVID-19 related expenditures

2. Given the global pandemic caused by the coronavirus (COVID-19)
and the level of risk we are all facing, the State Audit Office, by
amending its Annual Work Programme for 2020 decided to carry
out two compliance audits on topics concerning the prevention of
and protection from the pandemic caused by COVID-19.
INSTITUTIONAL RESPONSIBILITY
IN THE TIME OF COVID-19
The selection of the compliance audits is aimed at providing brief and fast reports
allowing all relevant institutions and the general public to obtain information on the
resources engaged and the manner of taking actions for prevention of and protection
from COVID-19.

3. Compliance audits on topics concerning the prevention of and
protection from COVID-19:
1. Awarding public contracts by public sector institutions aimed at providing
prevention of and protection from the pandemic caused by COVID-19.
2. Obtaining non-financial aid, its distribution and use by the public sector
institutions aimed at providing prevention of and protection from the
pandemic caused by COVID-19.
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
SELECTION OF THE AUDIT TOPIC

4. » The State Audit Office decided to carry out a compliance audit on this topic because, from the
onset of the pandemic, a large share of the contracting authorities in the public sector decided
to conduct negotiated procedures without publication of a contract notice for purchases of
supplies and services.
» The negotiated procedure without publication of a contract notice is not transparent and the
contracting authorities are not obliged to ensure competition between economic operators
which poses a risk that the achieved prices would not reflect the real market value of the
supplies and services that are the subject-matter of procurement.
» .
SELECTION OF THE AUDIT TOPIC
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
PURPOSE OF THE AUDIT
To allow all relevant institutions and the general public to obtain
information on the resources engaged and the manner of conducting
the public procurement procedures by the public sector institutions
for prevention of and protection from COVID-19.
1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION
FROM THE PANDEMIC CAUSED BY COVID-19

5. The audit covered public sector institutions and contracting authorities
purchasing supplies and services, specifically:
o Government of the Republic of North Macedonia;
o Competent ministries;
o Independent scientific institutions;
o Public health institutions;
o Local self-government units;
o State-owned public enterprises;
o State-owned joint-stock companies.
SELECTION OF AUDITEES
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION
FROM THE PANDEMIC CAUSED BY COVID-19

6. AUDIT APPROACH
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
The source of data about the
amount of public contracts awarded
for prevention and protection from
COVID-19 is the Electronic System
for Public Procurement (ESPP).
Data about this type of contracts
and the contracting authorities that
awarded them is downloaded from
the web page
www.koronavirus.gov.mk
1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION
FROM THE PANDEMIC CAUSED BY COVID-19

7. AUDIT SCOPE
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
 Public contracts awarded in the period from 01.03.2020 to
01.10.2020 in the amount of MKD 416,630 thousand (EUR
6,752 thousand).
 Covered 19 public sector institutions.
 Subject to the audit were public contracts awarded in the
amount of MKD 335,445 thousand (EUR 5,346 thousand),
which was 80.5% of the total public contracts awarded in
the period subject to audit.
1. AWARDING PUBLIC CONTRACTS BY PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF AND PROTECTION
FROM THE PANDEMIC CAUSED BY COVID-19

8.  In performing the audit, we applied a direct testing approach, i.e. detailed
tests were carried out at the auditees concerning the public procurement
procedures conducted for prevention of and protection from COVID-19.
 The audit was carried out by electronic means, i.e. the necessary documents
were delivered to the audit team in an electronic format.
 Some of the documents were delivered at the premises of the State Audit
Office by post.
 90% of the communication for the needs of the audit was conducted by
electronic means.
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
AUDIT SCOPE

9. The selection of the topic for this compliance audit was made:
» considering the global pandemic caused by COVID-19 and the level of risk we are facing, a large
number of domestic and foreign entities are involved in providing support by donation of goods
to the health system in RNM, and
» based on the great interest of the public about the readiness of the health system to cope with
the pandemic with the existing available resources, and about the obtaining and use of donations
for prevention of and protection from the virus.
SELECTION OF THE AUDIT TOPIC
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
PURPOSE OF THE AUDIT
To get added value of the effects from the efforts made for
legal and earmarked use of the awarded non-financial aid
related to the prevention of and protection from COVID-19.
2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION
OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19

10. The audit covered a larger number of public sector institutions involved in the
receipt of donations and their distribution:
o Ministry of Health;
o Secretariat for European Affairs;
o Protection and Rescue Directorate;
o Public Health Institutions.
SELECTION OF AUDITEES
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION
OF AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19

11. 2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF
AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19
AUDIT APPROACH
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
One of the sources for the non-financial
aid/donation received by legal entities is
the data presented on the web page:
https://finansiskatransparentnost.korona
virus.gov.mk/#/donation-financial-details
Data from the web page is presented up
to 28.05.2020.

12. AUDIT APPROACH
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
 In the audit, we opted for a direct testing approach of the donations received, their
distribution and manner of use.
 One of the more important auditing tools was the drawing up and sending out of
questionnaires to 24 entities-donation recipients and daily electronic communication with
the entities.
 The audit was carried out by electronic means, i.e. the necessary documents were delivered
to the audit team in an electronic format.
 Some of the meetings and communication with the responsible persons were organised by
using the Zoom application.
2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF
AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19

13. AUDIT SCOPE
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
 According to the data from the web page, the total value of non-financial aid/donation
received from legal entities in the country was MKD 63,716 thousand up to and including
28.05.2020.
 The audit covered non-financial aid/donation by legal entities in the country received
through the Protection and Rescue Directorate (MKD 12,622 and EUR 610,079 thousand)
and foreign non-financial aid received through the Secretariat for European Affairs for a
share of the value of the foreign non-financial aid received in the country in the total
amount of EUR 1,718 and USD 2,048 thousand.
 Depending on the materiality and significance of the non-financial aid/donations, the audit
covered 24 public sector institutions; all 15 initially established COVID centres and 9 public
health institutions as beneficiaries of non-financial aid/donations.
2. OBTAINING NON-FINANCIAL AID, ITS DISTRIBUTION AND USE BY THE PUBLIC SECTOR INSTITUTIONS AIMED AT PROVIDING PREVENTION OF
AND PROTECTION FROM THE PANDEMIC CAUSED BY COVID-19

14. LIMITING FACTORS IN CARRYING OUT THE AUDIT
 Auditees are facing:
 An increased workload with the same
number and structure of employees, who in
light of the pandemic are carrying out some
of the work tasks from home or in shifts;
 Some of the employees are free from work
in accordance with the measures and
recommendations by the Government of
the Republic of North Macedonia;
 Some of the employees are in isolation
because they are infected with the virus or
have been in contact with an infected
person.
 Some of the entities were directly involved
in dealing with the pandemic caused by
COVID-19.
 Audit impact:
 Limited access to the premises of the
auditee.
 Limited access to the responsible persons at
the auditees.
 Limited access to the employees at the
auditees.
 Difficult obtaining and delivery of the
necessary documents.
 Prolongation of the activities to be taken by
the auditees for the needs of the audit
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021

15. о SAO’s Annual Work Programme for 2021 covers three performance audits
concerning the measures and policies for copying with the pandemic on the
following topics:
 Measures and policies taken to support employment and professions affected by the
health and economic crisis caused by the COVID-19 pandemic;
 Efficiency of the measures and policies taken to curb the effects of the pandemic on
the tourism sector;
 Economic measures by the Government of RNM to deal with the crisis caused by
COVID-19.
SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021
LESSONS LEARNED FOR FUTURE AUDITS
SELECTION OF TOPICS FOR AUDIT

16. SECOND COVID-19 SIGMA WEBINAR, 17 FEBRUARY 2021