SAO audit: The Ministry of Transport corrected material accounting irregularities in the amount of CZK 24.6 billion

PRESS RELEASE ON AUDIT NO 23/17 – 8 July 2024

As the audit started during the 2023 financial year, the MoT was able to continuously correct material irregularities that would have affected the 2023 MoT financial statements' balances in the amount of CZK 24.6 billion. These related mainly to incorrect accounting for contingent receivables and contingent liabilities from pre-financing transfers. Based on the SAO's warnings, the MoT changed its accounting system during the audit, thus creating the preconditions for avoiding the recurrence of the identified irregularities in the future; as a result, the internal control system of the MoT can be considered effective in the audited areas.

The closing account of the MoT and the data submitted by the MoT for the evaluation of the implementation of the state budget for 2023 did not contain material irregularities; therefore, according to the SAO, these data are reliable.

The SAO also examined measures to remedy the shortcomings identified in the previous Audit No 19/08. The MoT informed the government in 2020 that all necessary measures from this audit had been taken. However, the auditors found that by 2023, the MoT had not effectively and correctly implemented 3 of the 10 measures taken. As a result, the MoT did not provide reliable information to the government in 2020. If the MoT had effectively implemented all the measures in 2020, it would not have had to make corrections amounting to CZK 7.6 billion in 2023.

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