Accounting errors of the Ministry of Regional Development exceeded CZK 25,000 million

PRESS RELEASE on Audit No. 13/19 – May 19, 2014

The Supreme Audit Office (SAO) audited accounting records of the Ministry of Regional Development and scrutinized whether the Ministry followed legal regulations when compiled its closing account and financial statements for the year 2012. Auditors revealed errors in the total amount of CZK 25,500 million. Among the reasons of the revealed errors were omitting of records about the transfer prepayment in the amount of CZK 14,700 million.

The SAO could not give its opinion on reliability of the closing account of the Ministry as the legal regulations related to the issue keep being equivocal and can be interpreted in various ways. Different interpretations may lead to various depictions of data in the closing account. The SAO has already criticized the ambiguity of the existing accounting legislation during several previous auditing operations.

Auditors concluded that the Ministry’s accounting for the year 2012 was not correct. For example, the Ministry made errors when accounted for long-term assets and transfers. The Ministry’s accounting was not complete – for example, in the field of accounting records about licences for MONIT and BENEFIT informational systems, which had been acquired without fees, and depreciations of properties purchased in 2012.

Auditors also revealed that the Ministry violated budgetary regulations when provided the total amount of CZK 3.2 million to civil society organizations, municipalities, business associations, and one public benefit organisation under so-called auspices of the minister. According to the applicable legal regulations, the Ministry cannot provide such a support. The SAO informed the relevant financial authorities about the breach of budgetary regulations.

Communication Department
Supreme Audit Office

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