Administrative drama: contract between Neubrandenburg and Neverin about to end!

Administrative drama: contract between Neubrandenburg and Neverin about to end!

What is brewing in Neubrandenburg? The public law contract to form an administrative community for local auditing between the Neverin office and the city of Neubrandenburg is in jeopardy. Again Northern Courier reported, the city council is scheduled to decide on July 17th whether to cancel the contract, which will retrospectively end on June 30th, 2023. Whether the people of Neubrandenburg are willing to take this step remains exciting.

The contract, which has been in force since July 1, 2021, apparently did not turn out to be what the city and office had hoped for. The collaboration did not work as desired, which could now result in the previous expectations not being met. The Audit Committee of the Neverin Office cannot cope with the backlog of annual financial statements without its own tasks suffering.

Background to auditing

The local audit is subject to the city council and acts independently and without instructions. It ensures that the budget and economic management of a municipality is regularly reviewed on the basis of specific municipal law requirements. The annual financial statements should provide a realistic picture of the financial situation - a point that seems all the more important in the current situation, especially after it became clear that some annual financial statements in the Neverin office were not prepared on time. Alexander Diekow, who is responsible for auditing there, attributes this to the introduction of new financial software that was implemented in 2020.

The city of Neubrandenburg has also announced that it is not in a position to deal with the backlog from the Neverin office. This brings additional difficulties. Both sides have now mutually decided to terminate their cooperation in auditing.

Ways out of misery

However, the outlook does not look entirely bleak. From July 1, 2023, the local audit should be carried out by a certified auditor and the Audit Committee of the Neverin Office. This solution is seen as more cost-effective and efficient and could help the Office return to its old form more quickly. Gitta Kutzik, the head of the Neubrandenburg Audit Office, confirms that the contract will definitely end. Holding out for a longer period could be more detrimental in the current situation.

While the city council is still dealing with the issue and deliberating, it is already discussing what the tasks of local auditing could look like in the future as part of the administrative reform. In the future, the audit organization could be made even more flexible and efficient in order to meet changing requirements. In addition, training courses are offered for auditors that cover specific topics, such as risk-oriented audit approaches and the preparation of audit reports, which are intended to contribute to the quality assurance and transparency of municipal financial management ( IFV ).

Finally, it should be noted that the end of this administrative cooperation is imminent. The decision on July 17th will be decisive for how the local audit in Neubrandenburg proceeds. The city council must not sit on the negotiating table carelessly.