State auditors detect irregularities in operations of RHMZ – Public procurement procedures, overtime work and salaries higher than director’s

The State Audit Institution (SAI) has identified a number of irregularities in the operations of the Republic Hydrometeorological Institute of Serbia (RHMZ). Namely, the SAI report on the audit of the regularity of the RHMZ's operations determines that this public company had a number of shortcomings when it came to public procurement procedures, overtime working hours, but also salaries that were higher than the director's, reports the Danas daily.

The report indicates that, during 2022 and 2023, RHMZ violated some of the basic procedures related to public procurement procedures, with irregularities identified in a total amount of at least 76 million dinars, which is about five percent of the total contracted value.

The SAI also identified irregularities in current expenditures in a total amount of 290 million dinars.

Irregularities in public procurement procedures

In 2022 and 2023, RHMZ planned and implemented public procurement procedures in which individual organizational units did not express a need for procurement.

When planning procurement procedures, no market research was conducted, the SAI report states.

In some procurement procedures, the estimated values were not adequately and objectively determined, the selection of the most favorable bidders was not carried out using the selected criteria, obligations were not assumed in accordance with regulations, the provisions of concluded contracts were not complied with, the tender documentation did not require, as a condition, professional liability insurance, more than the contracted value was paid, procurement was carried out outside or without public procurement procedures, and auxiliary records were not reconciled with the general ledger.

Irregularities in current expenditures

The auditor's report states that in 2023, RHMZ improperly incurred salary expenditures, in the amount of at least 173 million dinars.

The payments included, among others: allowances for overtime work longer than the maximum prescribed by law, without a report on the work performed, allowances for tasks performed by internal audit, which undermined its independence, and an allowance for field work, although the work was performed in official premises.

In addition, RHMZ assumed obligations above the approved appropriations, in the amount of 953,000 dinars, made expenditures in the amount of two million dinars without a legal basis and without proof of work performed in the amount of 114 million dinars.

Around 60 employees received 15 million dinars for overtime work

During 2023, 58 employees at RHMZ worked more than 360 hours overtime, i.e. more than the maximum prescribed time for overtime, and were paid 15,855,065 dinars in overtime bonuses (of which 2,086,012 pertain to contributions at the expense of the employer).

The auditor also determined that during 2023, employees at RHMZ were not allowed to use their free hours in the month after overtime work, which is not in accordance with Article 27 of the Law on Salaries of Civil Servants and Employees.

Another irregularity observed when it comes to overtime work is that reports on overtime work performed were not prepared by employees, but by the managers of the units in which the employees were engaged.

In this way, obligations were assumed and expenditures were made in the total amount of 51,927,704 dinars (of which 6,831,999 dinars pertain to contributions borne by the employer) without valid accounting documentation, which is not in accordance with Article 58 of the Law on the Budget System.

Salaries of individual employees in joint jobs higher than the salaries of the director

The auditor also determined that in 2023, RHMZ assumed obligations and made expenditures for salaries in the total net amount of 8,889,115 dinars, for which there was no legal basis, and which pertained to the paid net salaries for 22 employees in joint jobs, based on overtime and standby allowances.

The RHMZ paid this even though overtime could not be achieved in a time longer than the maximum prescribed, even for tasks outside the employees' jurisdiction.

In addition, the nature of these tasks did not require an urgent response outside working hours, nor did the aforementioned persons exercise this right in accordance with the regulations governing salaries, allowances and other income of civil servants and employees.

The aforementioned action resulted in the realization of net salaries (without past work), which, for a certain number of employees in joint jobs, were higher than the salaries earned by the director of the Institute and his four assistants, although they had significantly lower coefficients.

Državna revizorska institucija Republike Srbije

Hidrometeorološki zavod Srbije- RHMZ

State Audit Institution

SAID

Republic Hydrometeorological Institute of Serbia

RHMZ

RHMZ operations

irregularities in operations of RHMZ

public procurement procedures

overtime working hours

salaries