The State Audit Office (SAO) has delivered a scathing assessment of the Institute of Public Health (IPH) in North Macedonia, issuing an adverse opinion on its 2024 financial statements and operational compliance. This marks a recurring failure for the institution, as auditors noted that previous recommendations had been largely ignored or only partially addressed.
Key Financial Failures
Among the most concerning findings is the failure to collect over 18 million denars in receivables that are more than three years old. Auditors criticized the leadership for failing to take active measures to recover these significant funds, which remain outstanding on the balance sheet.
Operational Deficiencies
The audit report highlights systemic issues regarding the management of medical supplies. Specifically, the Institute failed to maintain accurate records of consumption, including the receipt and distribution of vaccines, which were not properly entered into business ledgers. Furthermore, auditors discovered that expensive medical equipment purchased by the facility has been left completely unused.
Procurement and Personnel Concerns
Beyond inventory, the report details irregularities in:
- Public Procurement: Non-compliant procedures were identified in several acquisition processes.
- Personnel Management: Issues were raised regarding staff hired via service contracts. Many payments were made without verified work reports, and the Institute failed to secure mandatory approvals from the Ministry of Finance for these engagements.
- Property and Payroll: The audit also flagged discrepancies in the leasing of business premises and the distribution of salaries and allowances.
The SAO has ordered the Institute to conduct a full inventory of all medical supplies and to implement a rigorous framework for tracking receivables and personnel expenditures to ensure future compliance.
