Ministry of Agriculture’s 2008 statement of balances found inaccurate
Press Release – December 10, 2009
Auditors from the Supreme Audit Office (SAO) concluded that the 2008 statement of balances of Ministry of Agriculture was not a reliable source for the 2008 final account of the state budget chapter 329 – Ministry of Agriculture. The total absolute inaccuracy overreached CZK 1,400 million and was mainly caused by over- and underestimates of particular statement items. The final accounts of the Ministry’s 2008 state budget chapter missed out some obligatory facts.
The audit was performed from March to September 2009 and aimed at the credibility of the 2008 statement of balances, which was submitted by Ministry of Agriculture as a source for the final accounts of the state budget chapter 329 – Ministry of Agriculture. Auditors also checked whether the Ministry had proceeded in conformity with the relevant regulations.
“In view of the insufficiencies, auditors recommended the Ministry to take specific corrective measures, which could help the Ministry to avoid repetition of the same insufficiencies. It is necessary for the Ministry to implement an efficient internal auditing system in order to prevent the insufficiencies in the future“, said president of the SAO František Dohnal.
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 under consideration.
The total absolute inaccuracy of the ministry’s 2008 final statements overreached CZK 1,400 million. In view of comparisons thereof with the pre-set maximum allowable irregularity ratio of the records it is clear that the said financial statements of the Ministry failed to give a true and fair view of the subject matter of accounting for the financial year 2008, pursuant to the applicable legislation.
| Setting of the allowable ratio of the accounting entity’s records | Maximum allowable irregularity | Total absolute inaccuracy |
|---|---|---|
| 2 % of the value of the year’s financial activities (CZK 42,264,685,520) | CZK 845,293,710 | CZK 1,424,196,000 |
The auditing operation was included into the 2009 Audit Plan of the SAO under No. 09/08. Jaromíra Steidlová, Member of the SAO Board, controlled the operation and prepared the audit report as well.
Bc. Radka Burketová
Press Speaker
Supreme Audit Office