Ljubljana, 5 July 2018 – Today, DUTB received the final audit report from the Court of Audit of the Republic of Slovenia. The report focuses on DUTB's operations in 2014 and 2015. The report instructs DUTB to implement 6 corrective measures, with subsidiary measures included, of which 2 have already been partially implemented in the meantime. 11 of 22 of the Court of Audit's earlier recommendations have already been implemented. DUTB has also adopted a number of internal regulations, including some based on its interactions with the Court of Audit in the audit process, and has been considerably improving its operations since the period covered by the Court of Audit's report.
In late December 2017, DUTB received the Court of Audit's draft report on the regularity, efficiency and effectiveness of DUTB's operations in 2014 and 2015. Having provided its expert clarifications with explanations for certain activities, DUTB received a proposal of the final report at the end of January this year. The proposal already comprised fewer corrective measures and recommendations and DUTB continued to implement the proposed measures. The Court of Audit's final report thus incorporates the improvements already made since, and now only contains 6 corrective measures with subsidiary measures instead of the original 10. Of these, DUTB has already partially implemented two corrective measures and 11 out of 22 recommendations.
Pursuing the program of comprehensive and transparent regulation of all internal aspects of its operations, since 2015, DUTB has adopted 38 new internal acts and revised existing internal regulations in additional 118 instances. These regulations affect both asset management operations and general corporate processes, addressed and remedied a significant portion of the shortcomings Court of Audit highlighted in their audit of the 2014-15 period.*
Dr. Miha Juhart, Chairman of the Board of DUTB, said: "The Board of Directors and the Audit Committee have been carefully monitoring the implementation of the proposed draft corrective measures and recommendations, and have adopted 14 amendments to internal regulations so far this year. These changes are reflected in the reduced number of outstanding corrective measures in the final report." In line with the law and economic considerations, DUTB will implement the remaining corrective measures expressed by the Court of Audit.
Dr. Imre Balogh, CEO of DUTB, commented: "In terms of stability of its operations, DUTB is a much different organization today than it was at the period which the Court of Audit report refers to. I can say that the cooperation between DUTB and the Court of Audit was much better than previously." He added that DUTB has grown into a constantly self-improving organization, also due to the measures and recommendations given by the Court of Audit, as it takes into account both internal and external observations about its operations. "Ever since the beginning of this audit exercise, DUTB has viewed cooperation with the Court of Audit as valuable assistance and additional encouragement to introduce improvements in the areas of security, efficiency and regularity of operations. It was a challenging process, but it ultimately benefitted both organizations so that they can both fulfill their respective missions. Our drive to achieve better operational efficiency is also reflected undoubtedly in the excellent results DUTB achieved in 2017," he added.
The Court of Audit report, the purpose of which is to improve the operations of its auditees, provides DUTB with an excellent tool for improving and reaching optimal efficiency. As a company which immediately reacts to change, DUTB therefore consistently enacts proposed changes in the shortest time possible.
Key improvements DUTB has already adopted based on the Court of Audit's recommendations in 2018
DUTB has even more closely regulated sales processes and introduced a standard decision-making template with relevant information required for the decision-making process. It also introduced IT support across all decision-making processes, which provides an audit trail and full operational transparency. It clearly defined internal procurement processes in order to comply with all public procurement requirements and introduced a computerized contracts registry. DUTB established a new Corporate Security unit, which works together with the Compliance Officer to carry out internal investigations and report its findings to the board of directors. DUTB has introduced a complete set of regulations for job systematization, remuneration and performance assessments of its employees.