Policy Brief – Audit Follow-Up and Enforcement Effectiveness under Chapter 32: Public Financial Control and EU Accession in Albania, May 2026

This paper, authored by Dr. Robert Çelo, Dr. Zamira Veizi, and M.Sc. Rovena Bega for the European Movement in Albania (EMA), examines the effectiveness of Albania’s Public Financial Control (PFC) system within the framework of Chapter 32 – Financial Control of the EU acquis and the country’s EU accession process. The paper argues that while Albania has largely established the legal and institutional framework required under EU standards, the key challenge has shifted from legislative alignment to implementation effectiveness.

The study focuses primarily on the Public Internal Financial Control (PIFC) framework and assesses enforcement performance through audit follow-up mechanisms. To move beyond traditional compliance assessments, the authors develop three performance indicators: the Implementation Effectiveness Ratio (IER), measuring the proportion of fully implemented audit recommendations; the Enforcement Gap Index (EGI), capturing the discrepancy between accepted and fully implemented recommendations; and the Follow-Up Compliance Rate (FCR), evaluating adherence to implementation deadlines. Using audit follow-up data from the Supreme State Audit (ALSAI), the paper finds that although 99% of audit recommendations are formally accepted, only 37% are fully implemented, while compliance with implementation deadlines remains relatively weak.

The analysis interprets these findings as evidence of a structural enforcement gap, whereby institutions demonstrate procedural responsiveness without consistently translating commitments into substantive corrective action. Drawing on governance and  public management, the paper argues that effective financial control depends not only on oversight structures and audit mechanisms but also on managerial accountability, credible enforcement incentives, and institutional follow-through.

To address identified weaknesses, the authors recommend strengthening performance-linked managerial accountability, establishing a centralised digital audit follow-up platform, enhancing parliamentary oversight, introducing graduated sanctions for persistent non-compliance, and further integrating risk-based management practices into public administration.

Policy Brief – Audit Follow-Up and Enforcement Effectiveness under Chapter 32: Public Financial Control and EU Accession in Albania, May 2026

*This material was produced within the project “Building Partnership on Fundamentals: Empowering CSOs for the EU accession process”, with the financial support of the European Union. Its content is the sole responsibility of the European Movement in Albania and the authors, and does not necessarily reflect the views and positions of the European Union.

The project “Building Partnership on Fundamentals: Empowered CSOs in the EU accession process” is being implemented by the European Movement in Albania (EMA), with the financial support of the European Union – IPA Civil Society Facility 2021, in cooperation with the Academy of European Integration and Negotiations (AIEN), Slovak Foreign Policy Association (SFPA) and the Center for Transparency and Freedom of Information (CTFI).