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On the bases of research carried out by the SARAS and information provided by professional organizations, auditors, audit firms, SARAS determined factual circumstances that can cause non-compliance with the laws regulating audit service in the State Procurement implementation process.
According to the law of Georgia on ”accounting, reporting and auditing”, paragraph 1, item 3, the present Law shall not apply to budgetary organizations defined under the Budget Code of Georgia except to special provisions specified by the Law.
According to the paragraph 8, item 28 of the same law, for the purpose of segregating the audit and valuation professions, the Government of Georgia prior to December 31, 2017, shall draft a normative act on valuation activity, prior to entry into force of which:
a) The LEPL Accreditation Center, a Single National Agency of Accreditation under the Ministry of Economic and Sustainable Development, shall carry out the accreditation and monitoring of valuer professional organizations in accordance with rules and procedures adopted by the Accreditation Center;
b) A member of the International Valuation Standards Council (IVSC), as well as accredited bodies of valuers’ certification, shall ensure the availability of the Georgian version of the International Valuation Standards.
c) The right to render valuation services shall be granted only to those persons where a valuer certified by accredited certification body is employed. The evaluation shall be performed and the right to sign a valuation report/ opinion shall be granted to a valuer certified by the accredited certification body.
d) A Certification body of valuers accredited by the Accreditation Center shall ensure quality monitoring of the education of certified persons, observance of ethical norms and quality of activities in accordance with the certification scheme.
Results of research and analysis carried out by the Service demonstrated the following issues arising in the state procurement implementation process:
1. Possible inadequacy between the cost and quality of audit service.
2. Conditions that can result in non-compliance with the law.
SARAS has drafted recommendations regarding these issues. The recommendation is published on the LEPL State Procurement Agency website.
The service expresses hope that noted recommendation will become a guideline document for procurement activity participants.