Most of the errors in the annual accounts were corrected by the Czech Science Foundation. However, some significant shortcomings were omitted.

Press release on audit No 20/33 – 23 August 2021


The Supreme Audit Office (SAO) examined whether the Czech Science Foundation (CSF) drew up its closing account correctly, accurately kept its accounting and how reliable its annual accounts for the year 2020 were. The auditors also focused on the accuracy of the data submitted by the Czech Science Foundation for the evaluation of the implementation of the state budget. The CSF corrected irregularities in its accounting, which amounted to more than CZK 5.9 billion, in the course of SAO’s audit. However, other significant misstatements worth almost CZK 114 million remained uncorrected. The CSF did not have significant weaknesses in its closing account or in the statement for the evaluation of state budget implementation. In the internal control system, the audit found weaknesses in CSF’s approval procedures.

The CSF provides grants for projects in the field of basic research. Most of the misstatements amounting to more than CZK 5.9 billion arose from the Foundation’s failure to account for long-term contingent liabilities from newly concluded contracts for projects scheduled to start in 2020. The SAO pointed out these inaccuracies to the Czech Science Foundation which was able to correct them during the audit, before the closing of the accounting books for 2020.

However, further significant misstatements worth almost 114 million CZK remained uncorrected in the annual accounts. The CSF cleared the advances granted to the beneficiaries of the subsidies without providing evidence of their actual consumption. These funds should have been declared by the CSF as an advance until the beneficiaries submitted a financial statement. Another material misstatement in the annual accounts was also related to this fact. This concerned the estimated amount of transfer costs, i.e., the estimated consumption of subsidies. For 2020, the CSF estimated the cost of transfers at 100% of the subsidy granted. However, the auditors found that such an estimate of costs was inadequate as 100% of the consumption of subsidies in a given year never occurs.

The SAO therefore assessed the information in some accounts in the balance sheet and in the profit and loss account as unreliable. However, other information in the annual accounts, according to the auditors, gave a true and fair view of the subject matter of the accounts.

The weaknesses identified by auditors in the closing account and in the State Budget Implementation Assessment Statement for 2020 were not significant.

In the CSF’s internal control system, shortcomings were identified in the area of approval procedures. For all 75 transactions audited, the main accountant was not signed on the approval form which is necessary for paying out the subsidy. In the case of 27 of these operations, the CSF paid out the subsidy before recording that it had checked the incurred obligation of the principal of the operation.

The auditors also pointed out that the CSF unduly paid a subsidy of CZK 10.6 million without publishing the grant agreement within the statutory deadline in the contract register, so the relevant contract was cancelled from the start.

Communication Department
Supreme Audit Office

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