Auditing operation No. 04/18
Closing account of the State Budget chapter – the State Office for Nuclear Safety
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2004 under No. 04/18. The auditing operation was managed and audit conclusion drawn up by Mr. Jan Vedral, the Member of the SAO.
The aim of the audit was to examine whether the financial and accounting statements submitted by the State Office for Nuclear Safety as the basis for the closing account of the State Budget chapter were correct.
The operations that are the subject of book-keeping and influence the value of closing balances in the financial statements of the State Office for Nuclear Safety as at 31 December 2003 (as the source for the closing account of the State Budget chapter – the State office of Nuclear Safety), as well as relevant connections in the previous financial years, were subjected to audit.
The audited body was the State Office for Nuclear Safety.
The following text sums up main observations from the audit:
1. Credibility of the financial statements as at 31. 12. 2003
In accordance with the INTOSAI (International Organisation of Supreme Audit Institutions) Auditing Standards recommendations, the maximum possible rate of incorrect records that users of accounting statements can regard as acceptable is set at 2 % of the value of expenditure (i.e. CZK 6,489,810). Seeing that the total value of irregularities in the State Office for Nuclear Safety’s financial statements was found to be CZK 620,323,192 and considerably overran the determined materiality threshold, it is evident that the State Office for Nuclear Safety’s financial statements do not give a true and fair view of the subject of the accounts for 2003 in the significant regards in accordance with the Act on accountancy and related regulations.
2. Closing account of the State Budget chapter No. 375 – the State Office for Nuclear Safety
The accounting statements drawn up by the State Office of Nuclear Safety as at 31. 12. 2003 was not a reliable basis for the closing accounts of the State Budget Chapter 375 – the State Office of the Nuclear Safety in accordance with the Ministry of Finance Decree No. 419/2001 Coll. All of above-mentioned irregularities were in the Closing Account aggregated into number data outputs.
Total of irregularities in the Closing Accounts of the State Budget Chapter 375 – the State Office for the Nuclear Safety amounts to CZK 620,323,191.90; including CZK 618,229,692
in the balance sheet of organizational units of the state and CZK 2,093,500 in the budget fulfilling statement. These irregularities were caused by inconclusiveness, overestimating or underestimating of various items of the relevant statements.
3. Breach of best budgetary practice
The total magnitude of breaches of best budgetary practice within the meaning of Section 44 of the budgetary rules was found to be CZK 1,272,990.46 (see the Audit Conclusion, part I.3).