Ministry of Labour gave true and fair view of 2009 balance accounts
Press Release – November 2, 2010
From March to July, 2010, auditors from the Supreme Audit Office (SAO) were performing auditing operation No. 10/06 that aimed at the 2009 balance accounts, which had been submitted to support the final account of the state budget chapter Ministry of Labour and Social Affairs. Among the audited bodies were the Ministry of Labour and Social Affairs and the Labour Office in Prague.
"In view of comparisons of the total absolute inaccuracy with the pre-set maximum allowable irregularity ration of the records1) it is clear that the 2009 financial statements submitted by both institutions gave true and fair view of the accounts, pursuant to the applicable legislation", said president of the SAO František Dohnal.
The total absolute inaccuracy of the Ministrys 2009 balance accounts made nearly CZK 220 million. On the basis of previously found accounting irregularities, auditors recommended the audited bodies to adopt the necessary corrective measurements so that to avoid such inaccuracies in the future.
Auditing operation No. 10/06 followed auditing operations No. 09/05, No. 08/13, and No. 07/13, which aimed at identical subjects. While using the same audit methodology, auditors chose different auditing periods.
"After the results of previous audits had been known, the Ministry promised to take the required corrective measures. In spite of correcting the biggest inaccuracies, some accounting irregularities recurred in 2009", said Dohnal.
The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/06. Jan Vedral, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
| Audited body | Value of financial activities in 2009 | Maximum allowable irregularity | Total absolute inaccuracy |
|---|---|---|---|
| Ministry of Labour and Social Affairs | CZK 37,792,082,530 | CZK 755,841,650 | CZK 181,880,420.84 |
| Labour Office in Prague | CZK 6,177,295,600 | CZK 123,545,910 | CZK 38,106,872.28 |
1) The maximum allowable ratio of bad records, which the users of the statements may still consider as acceptable, was specified in keeping with the recommendations of the INTOSAI international audit standards as 2 % of the value that best represents the extent of financial activities of the accounting unit in the accounting period.