The 2006 closing account of the Ministry of Labour and Social Affairs found unreliable
Press Release – February 4, 2008
From April to October 2007, auditors from the Supreme Audit Office (SAO) carried out an audit that focused on the basis of the 2006 final accounts submitted by the Ministry of Labour and Social Affairs and the Czech Social Security Administration.
“The large number of inaccuracies which were included into the 2006 final account of the Ministry of Labour and Social Affairs gives us a clear view of their violations of the accountancy law. The submitted account sets up an unreliable support for the final account of the state budget chapter. The breach of financial discipline was enumerated at CZK 1,25 million and the total accounting inaccuracies reckon up to CZK 2,5 billion,“ said František Dohnal, president of the SAO.
The ministry showed a capital participation worth over CZK 7 billion. “The audit No. 06/20 already focused on capital participation in 2006. Even then auditors noted that such a problem demands a complex juristic and accounting analyses as the standard regulations lacked sufficiency and exactness, said Dohnal.
The audit also revealed serious shortcomings of immovable property management, claims booking, and placing public orders. In 2005, the ministry made a contract on a basis of proceedings that violated the law of public orders as only one potential provider was called upon the competition. “This order should have qualified for a public competition. According to the contract, over CZK 4,5 million will be spent on a technical support each year in the next 5 years; the technical support meaning periodic repairs of the information and communications technology and common supplement of expendable properties,“ said Dohnal.
The audit operation was included into the 2007 audit plan of SAO under No. 07/13. Jan Vedral, Member of the SAO, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office