The SAO audited Czech Hydrometeorological Institute
Press Release – April 15, 2013
Auditors scrutinized the state property and funds allotted to the state-funded organisation Czech Hydrometeorological Institute (CHMI).
Auditors revealed insufficiencies and concluded that the CHMI’s accounting did not give a true and fair view of the CHMI’s assets and liabilities in the period 2009–2011. In 2011, the CHMI’s accounting was not conclusive as required by the Accounting Act. Insufficiencies were found in assets’ records, evidence, and accounting, and in the inventorying of assets and liabilities.
As revealed during the auditing operation, the CHMI undervalued the outcome of their 2010 economic activities by more than CZK 3 million. In 2011, the CHMI overvalued the outcome by more than CZK 1.2 million.
The CHMI violated the Act No. 219/2000 Sb., on management of the state property, when improperly managed its properties. Before selling properties, the CHMI failed to verify whether other organisational units of the state would show interests in them and also failed to provide documents clearly showing that organisational units or state organisations would not need the properties or that it was not in public’s interest to keep the properties in the state’s possession.
In 2011, the CHMI’s revenues from transfers (operating subsidies and grants received from the establisher) were decreased by CZK 96 million (16.2 %). In the same period, there was an increase of revenues from services sales by CZK 23.7 million (13 %) and an increase of revenues from other operating activities by CZK 1.5 million (22.9 %).
Auditors scrutinized the CHMI’s assets in 2010 and 2011, which amounted to more than CZK 1,700 million. The scrutinized funds amounted to nearly CZK 335 million.
The auditing operation was performed from June to November 2012. The audited period extended from 2010 to 2011; where relevant, the preceding period and the period till the completion of the auditing operation were also scrutinized. The auditing operation was included into 2012 Audit Plan of the SAO under No. 12/16. Antonín Macháček, Member of the SAO Board, managed the auditing operation and prepared the audit report as well.
For further details about the auditing operation No. 12/16 (in Czech only), see the following link: http://www.nku.cz/assets/media/informace-12-16.pdf (pdf 330 kB).
Communication Department
Supreme Audit Office