2008 statement of balances of Ministry of Transport found inaccurate
Press Release – June 7, 2010
From September 2009 to March 2010, auditors from the Supreme Audit Office (SAO) performed an audit that focused on 2008 statement of balances, which was submitted by Ministry of Transport as a source for final accounts of the state budget chapter 327 – Ministry of Transport. Auditors also checked whether the Ministry acted upon the law and relevant regulations when compiling the statement of balances.
“The total absolute inaccuracy of the Ministry’s 2008 final statements overreached CZK 19.7 milliard. 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“, said president of the SAO František Dohnal.
Around CZK 19.4 milliard from the total absolute inaccuracy was made by undervaluing of the capital participation within the joint stock company Czech Railways. Other inaccuracies of the expenditure data included significant accounting errors. Numerous insufficiencies were caused by the inappropriate procedures of the Ministry that was administering the relevant accounting control, which often resulted in subsequent revisions and incorrect valuing of the items on the statements or inserting incorrect information.
The statement of balances submitted by Ministry of Transport for financial year 2008 omitted several important facts. The Ministry lacked an effective internal auditing system to audit their accounting as well as financial management, which resulted in a violence of budgetary principles that overreached CZK 4 million.
“The Ministry should follow the Act on Financial Auditing and develop an internal auditing system, which could prevent and detect insufficiencies and introduce effectual ways to remedy the shortages“, said Dohnal.
The auditing operation was included into 2009 Audit Plan of the SAO under No. 09/22. Jaromíra Steidlová, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
| 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 60,143,712,267.92) | CZK 1,202,874,245.36 | CZK 19,735,200,874.33 |
Bc. Radka Burketová
Press Speaker
Supreme Audit Office