Closing Account of the State Budget Chapter –The Industrial Property Office
Press release on completion of the auditing operation No. 06/16
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2006 under No. 06/16. The auditing operation was managed and the audit conclusion drawn up by Mr. Jan Vedral, Member of the SAO.
The aim of the auditing operation was to examine the accuracy of financial statements, which were base for the final account of the state budget chapter 344 – The Industrial Property Office – 2005.
The audit was focused on operations that were the subject of bookkeeping of the Industrial Property Office and influenced the value of audited closing balance in its financial statements as at 31.12.2005, which were the basis for the closing account pf the State Budget Chapter 344 – the Industrial Property Office – 2005.
The audited body was the Industrial Property Office.
1. Credibility of the financial statements as at 31.12.2005
In accordance with the recommended INTOSAI international auditing standards, the highest level of bad reporting that the users of accounting statements can hold to be still acceptable was specified as 2 % of the value of revenues (i.e. at the Industrial Property Office CZK 2,360,395.33), for this value most reasonably reflects an extent of the accounting entity’s financial activities. Seeing that the total value of inaccuracies in the Industrial Property Office’s financial statements as at 31.12.2005 was found to be CZK 1,025,256.94, and comparing it with the determined materiality threshold, it was evident that the Industrial Property Office’s financial statements gave a true and fair view of the subject of the accounts for 2005 in all significant regards in accordance with the Act on accountancy and related regulations.
2. Closing account of the Chapter 344 – the Industrial Property Office
The financial statements of the Industrial Property Office as to 31.12.2005 were a reliable basis for elaboration of the closing account of the State Budget Chapter 344 – the Industrial Property Office despite inaccuracies described in the audit conclusion. All of above-mentioned irregularities found at the audited body were in the closing account aggregated into number data outputs.
Total irregularity in the closing account amounts CZK 1,025,256.94. From that
- inaccuracy in the Balance sheet CZK 1,025,256.94.
- no inaccuracy in the Budget Fulfilment Statement was found.
Considering occurred irregularities in the Industrial Office’s financial statements, it is necessary that the audited body should ensure corresponding revision in its bookkeeping in order to eliminate described imperfections.
3. Breach of budgetary discipline
The total magnitude of breach of budgetary discipline within the meaning of the Section 44 of the Budgetary Rules was found to be CZK 1,598,555.30.