Audit uncovers irregularities in student dormitory “Pelagonia” procurement

The State Audit Office’s inspection identified several violations and weaknesses in the public procurement procedures carried out by the “Pelagonia” student dormitory in Kisela Voda.

One of the cases identified concerned the supply of bread, for which a significantly higher price than the market price was paid.

According to the State Audit Office, after daily record-keeping was introduced, monthly expenses during 2025 fell significantly compared with 2024. However, the new contract in 2025 raised the price of bread to 126 denars per kilogram, while the market price was around 70 denars/kg. The audit describes this as uneconomical use of public funds and an indication of shortcomings in procurement controls.

The same method of calculation had also been used in 2024 and 2023. One loaf of bread was treated as one kilogram, without the product being accurately weighed.

Problems were also found in the 2023 procedure for purchasing bread and flour. The contract was awarded to a bidder whose primary business was unrelated to the procured item, while the audit documentation lacked the bank guarantee required for proper contract performance. Although the contracted price was 57.46 denars/kg, the economic operator recorded one loaf of bread as one kilogram on its invoices. This irregularity was discovered only at the end of 2024, as a result of inadequate internal controls.

Irregularities were also identified in the supply of mattresses for students. The dormitory purchased 250 mattresses, but they were not used because their dimensions did not match those of the beds.

The audit notes that the 2023 tender documentation for the mattresses contained restrictive requirements and that the contract was signed without a bank guarantee for proper performance. Instead of the 500 mattresses originally planned, 250 were purchased, with a total value of 1,174 thousand denars. The products had dimensions different from those specified in the technical specifications, were accepted without the necessary documentation, and remained stored without being used. According to the audit, 450 mattresses had previously been purchased from the same supplier, even though the existing mattresses were still in good condition. The large dimensions of the new models contributed to damage to the stability of the beds.

Concerns that prices were not in line with the market have also been raised regarding other food purchases by the dormitory.

Auditors reported discrepancies in both the planning and implementation of public procurements. In the procedures for fresh meat, processed meat products and fish in 2023 and 2024, as well as for agricultural products in 2023, usually only one bid was submitted. The contracts were concluded at the planned value, but without quantities being determined in advance. For items purchased regularly, bid prices were above market levels, while unrealistically low prices were set for products that were not procured, without additional explanations being requested from the economic operators. In some cases, the contracted values were exceeded. According to the auditors, these findings demonstrate weak controls and uneconomical use of public funds.