The Impact of State Audit on the Efficiency of Grant Management in the Public Sector: the Case of the Federation of Bosnia and Herzegovina
The paper aims to explore the impact of state audits of grants in the public sector on reducing non-compliance with legal regulations. The research was conducted over a ten-year period among federal and cantonal ministries in the Federation of Bosnia and Herzegovina (FBiH) responsible for planning and distributing grant funds as part of their regular duties. The research results show that the total number of recommendations given during the observed 10-year period was 1,666, including: 245 recommendations related to grant planning, 684 recommendations related to the distribution of grant funds, 554 recommendations concerning the oversight of the designated expenditure of allocated funds, 74 recommendations concerning grant implementation reporting, and 109 recommendations regarding the accuracy of accounting records. During the observed ten-year period, the number of recommendations decreased by 75%. The research results also indicate that the adoption of stricter guidelines for grant management has a strong impact on reducing the number of identified irregularities. The paper also presents an analysis of the most common causes of irregularities. The results of the conducted research will contribute to filling the literature gap on the importance of grant audits, the most common causes of identified irregularities, and the significance of stricter legal regulations and clearer rules related to grant management.