Croatian auditors flag €150,000 in unverified municipal work, refer records to prosecutors

Croatia's state audit office has referred documentation concerning the municipality of Brod Moravice to prosecutors after auditors found that the town's 2024 financial records did not establish whether works and services valued at more than €150,000 had actually been performed.

The finding is about deficient supporting documentation and the auditors' inability to verify delivery. It is not a finding that €150,000 was stolen, nor does the referral establish a criminal offence or a prosecution against any individual.

Croatian public broadcaster HRT reported on 27 October that the State Audit Office gave Brod Moravice adverse opinions on both its financial statements and compliance with applicable rules. The audit identified unreliable accounting records, unreconciled books and deficiencies in inventories and supporting invoices. HRT quoted an audit-office representative saying that documentation gathered for three audited entities had been forwarded to the State Attorney's Office. Brod Moravice was among the municipalities discussed in the coverage.

The national audit office had announced on 26 October that it had delivered 46 audit and implementation-check reports to Croatia's parliament, including financial-audit reports for 29 local government units. Brod Moravice was named in that official list. The audit examined 2024 operations; the public reporting and referral occurred in October 2026. These are different dates and should not be confused.

Local reporting on 28 October described 92 audit orders and recommendations concerning Brod Moravice. Problems reported included missing or inadequate records for contracted works and services, unreliable financial statements and gaps in municipal rules governing procurement, budgeting and other internal controls. Such findings can warrant corrective administrative action without establishing that the underlying services were never delivered.

Municipal officials have offered a different perspective on how the irregularities came to light. HRT and local broadcaster Radio Gorski kotar reported that the current municipal leadership said it had itself suspected problems, requested oversight and started changes to financial procedures. HRT's radio coverage also described steps the municipality said it had taken concerning employees and internal rules. Those statements are the municipality's account of its response, not independent confirmation that all audit recommendations have been implemented.

The transfer of audit material to prosecutors creates a possible route for further official examination. It does not mean prosecutors have filed charges, identified a criminal suspect or reached a determination of unlawful conduct. No such later decision has been established in the documents checked for this report.

The immediate public-interest question is whether municipal expenditure can be reconciled with contracts, invoices, acceptance records and evidence of work actually delivered. A further question is whether the municipality's announced reforms have been tested and accepted by the state auditors. Both require subsequent records rather than inference from the adverse audit opinion alone.

TFNOS will monitor any official prosecutorial decision, the municipality's formal response and follow-up audit findings. Any material new record will be reported separately with a link to this first account.