The 2023 Financial statements of the Industrial Property Office are reliable except for one material irregularity
PRESS RELEASE ON AUDIT NO 23/19 – 22 July 2024
The Supreme Audit Office (SAO) examined the data of the closing account, accounting and financial statements of the Industrial Property Office (IPO) for the year 2023 and found no material irregularities. Furthermore, the auditors focused on the data submitted by the IPO for the evaluation of the state budget implementation; here the data contained a material irregularity: the IPO incorrectly classified income from abroad in the amount of CZK 9.8 million.
The irregularity was that the IPO incorrectly classified income from abroad from the European Union Intellectual Property Office as both income from domestic sources and income from the provision of services. This had a material impact on the statement for evaluation of budget implementation and the SAO assessed this information as unreliable. This was an isolated shortcoming. The impact of the misclassification of foreign revenue on the reported figures was described by the IPO in the closing account. As regards the other information, the statement of budget implementation was prepared in all material respects in accordance with the relevant legislation.
The SAO identified material irregularities in accounting in the amount of CZK 166.9 million. However, the IPO duly corrected them during the audit and, according to the SAO, the financial statements present a true and fair view of the subject of the accounting in all material respects.
The IPO's closing account was drawn up to the extent required by law and the information given therein is consistent with the data in the budgetary system, the financial statements and other records.
The SAO considers the internal control system to be effective following the measures taken during the audit in the areas audited.
Communication Department
Supreme Audit Office