The SAO audited 2010 closing account of the state budget heading Ministry of Education
Press Release – September 21, 2011
The audit aimed at 2010 closing account and the balance sheets submitted by the Ministry of Education. Auditors scrutinized whether the Ministry followed the applicable legislation when compiling the closing account.
In the closing account submitted for the year 2010, auditors revealed shortcomings in the total amount of CZK 5.7 milliard. In its financial statements, the Ministry recorded long-term contingent payables in relation to EU resources in an amount that is CZK 3.6 milliard higher than the actual amount. The Ministry did not record receivables from refundable financial assistance provided to Masaryk University in Brno in the amount of CZK 1.8 milliard.
As the audit findings show, accounting and reporting rules for organisational units of the state for 2010 were not clear, comprehensible or complete in their entirety to allow in all cases an assessment of the correctness or incorrectness of their application in the accounting and reporting in 2010. Certain provisions of new accounting regulations, especially in the area of disposal of fixed assets, estimated payables to transfers, valuation differences of assets intended for sale, minor fixed assets and accumulated depreciation related to these assets, and the pre-financing of expenditures co-financed from the EU resources was in 2010 unclearly applicable to some selected accounting entities. That is why the SAO could not provide a conclusive statement on the reliability of the financial statements as a whole.
The SAO, when conducting audits, runs across facts again and again that indicate serious shortcomings in documentation serving to process the closing accounts of the state budget headings. The audited bodies fail to maintain their books in a correct, complete and conclusive manner in accordance with the Accounting Act and other regulations.
The auditing operation was performed from October 2010 to June 2011. The audited period was year 2010, including the relevant data from previous and following periods. The audited body was the Ministry of Education. The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/20. Jaromíra Steidlová, Member of the SAO Board, managed the auditing operation and prepared the audit conclusion as well.
Supreme Audit Office