Despite Albania's significantprogress in establishing a legal and institutional base, andits strong commitment to reform - placing the country in agood position to develop a sound fiduciary infrastructure -there are however, several issues that need to be addressed:weak institutional capacity; weak internal controls,including cash management, and internal audit functions;and, absence of solid bases for internal audit in the publicsector. In the area of private sector accounting, andauditing, issues need to address: differentiation betweenthe banks, insurance companies, listed and non-listedcompanies, and other entities, for determining accountingstandards; in addition to weak audit capacity, andexperience in implementing international standards inauditing. Recommendations include the enactment of the Lawon Public Sector Internal Audit; strengthened internalcontrols, including in the Treasury - specifically, theTreasury cash management function - by establishing dailyreconciliation of district treasury payment requests, withthe reimbursement by the Bank of Albania to Agent Banks, aswell as reconciliation between revenue collections,transferred by the agent banks, with the taxpayer-filledpayment forms. Further recommendations include strengthenedinternal audit capacity, by establishing the methodology forconducting internal public sector audits, and providingtraining; capacity building to the Ministry ofFinance's Accounting Department; strengthened internalaudit capacity within the Social Insurance Institute,introducing computerized pension and accounting systems indistricts; and, strengthened systems at the ParliamentaryCommission on Economic, Finance and Privatization (EFP).
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