1 “Environmental Auditing in the Republic of Macedonia” “Environmental Auditing in the Republic of Macedonia” State Audit Office Nada Sekulovska Gorast Nikoloski

2 Introduction In 2002 SAO conducted a regulatory audit of the Ministry of Environment and Physical Planning, Environmental Fund and all of the national projects funded by foreign donors and aimed at improving the protection of the environment.

3 Constitutional framework According to the Constitution, all natural resources of the state, the flora and fauna, the goods in general use, so as the objects of special cultural and historical importance defined by law, are goods of general interest for the state and they enjoy special protection.

4 Legal framework  National Action Plan  Law for Protection and Promotion of the Environment and the Nature Institutional arrangements Ministry of Environment and Spatial Planning

5 National Strategy for Sustainable Development National Strategy for Sustainable Development  Develop a Methodology for preparing the National strategy for Sustainable Development;  Define the priorities of the involved subjects;  Prepare the Draft National Strategy for Sustainable Development.

6 Convention on Biological Diversity The Republic of Macedonia has become an official party to the CBD on 2 March 1998.

7 Country Study for Biodiversity of the Republic of Macedonia  Biodiversity assessment  Use and evaluation of biodiversity  Socio-economic and sectoral analysis  Institutions, legislation and existing conservation programs

8 Biodiversity Strategy and Action Plan of the Republic of Macedonia 2004 Defines the national priorities for effective and integrated conservation, as well as essential actions, projects and programs for biodiversity conservation

9 Environmental Financing and Expenditures Environmental Financing and Expenditures  In the past three years, environmental spending has been very limited and has not exceeded 0.5% of the GNDP  1,25% of total Government budget for  Total budget allocated to the MEPP was sufficient to cover salaries, social insurance, administration and maintenance.

10 Environmental Auditing  In 2002, the SAO conducted regulatory and financial audit of the Environmental Fund  In 2003, the SAO conducted regulatory and financial audit of the entire MEPP and all projects financed by foreign donors.  In 2004, SAO conducted a preliminary risk assessment of biodiversity activities.

11 Environmental Fund  The audit found that the status of the Environment Fund was illegal;  The audit confirmed the Fund did not establish written policies on the techniques procedures and criteria for its spending;  The audit also found that the Fund had not adopted measurement tools or assessed the effect of financed projects on the environment.

12 Ministry of Environment and Physical Planning Ministry needs to clearly define its role and responsibilities regarding the environmental aspects of legislation, monitoring, data management and enforcement.

13 Global Environment Facility Project for Developing National Strategy and Action Plan of Biodiversity  SAO found that funds have been spent in accordance with the donor agreements;  SAO also found that Ministry reports only refer to the project activities and not to the effects of the activities;  A new document NEAP 2 is being drafted which will include techniques for monitoring the effects of the activities at both national and local level.

14 State Audit Office Future Plans Widen the scope of the audit in the following areas:  Assessing whether government organizations are operating in accordance with the national environmental objectives and strategies  Conducting performance audits of environmental programs.

15 Thank you for your attention