Tirana, Albania, 5 December 2025 – UNDP hosted a two-day regional dialogue in Tirana that brought together General Auditors and senior representatives of Supreme Audit Institutions (SAIs) from Albania, Bosnia and Herzegovina, Moldova, Montenegro, North Macedonia, and Serbia, alongside counterparts from Slovakia. The discussions also included officials from Ministries of Finance, UNDP Country Offices, and the UNDP Istanbul Regional Hub, creating a unique platform for collaboration among key actors in public financial management.

The event marked the official launch of the Smart Finance for Accountable Local Governance project, funded by Slovakia the Ministry of Finance of the Slovak Republic under the broader Public and Private Finance for Development (PPFD) initiative.

The project is designed to strengthen public finance management systems, enhance audit capacity, and foster transparency and accountability at the local level—critical priorities for countries advancing toward EU integration and the 2030 Sustainable Development Goals.

Western Balkan countries and Moldova face persistent governance inefficiencies, gaps in public finance management, and corruption risks that slow progress toward EU accession, particularly in Chapter 32 on Financial Control.

The Smart Finance project responds to these challenges by improving oversight, introducing citizen-driven innovations, and embedding gender-sensitive approaches into auditing practices. A central focus of the programme is SDG auditing, ensuring that governments’ commitments to sustainable development are monitored effectively and integrated into performance audits without overwhelming existing systems.

Over two days, participants engaged in strategic discussions on emerging audit challenges, reviewed findings from a recent capacity needs assessment, and co-created a consolidated work plan for the year ahead. The dialogue also explored models of cooperation with the Slovak State Audit Office to facilitate knowledge transfer and peer learning across jurisdictions. These exchanges underscored the importance of regional collaboration and practical solutions to strengthen institutional capacities and align audit practices with international standards.

“Supreme Audit Institutions are essential for effective public financial management, transparency, and reducing corruption, especially at the local level. Yet they often face capacity challenges and coordination gaps. This dialogue was an opportunity to share experiences, strengthen collaboration, and identify priority areas for targeted support,” said Biljana Cvetanovska Gugoska

Key Takeaways

• Strengthen communication so people can understand how public money is used and take part in decisions that affect them.
• Use sustainability reporting to show where money is spent inefficiently, where corruption risks appear, and where improvements are needed.
• Improve coordination between institutions by clarifying roles and aligning efforts around SDG priorities.
• Provide stronger support to local governments, which manage essential services and face the highest risks, through better tools for planning, budgeting, and reporting.
• Introduce SDG budget tagging so it is clear how public spending supports national priorities and long-term goals.
• Use performance audits to connect yearly reporting with long-term development commitments.
• Invest in better data and indicators to guide decisions and track results.
• Make monitoring more regular and transparent, including more inclusive VNR processes.
• Keep building on regional cooperation, where parallel audits and shared learning are already 
  delivering concrete improvements.

The event concluded with a shared commitment to advance joint SDG audits, integrate sustainability into performance audits, and build stronger partnerships between SAIs. These efforts aim to create a transparent and accountable financial ecosystem that supports inclusive development and positions the region for successful EU convergence.