The Ministry of the Environment did not have significant deficiencies in its closing account. Certain figures in the financial statements have been misidentified.
Press release to Audit No. 17/18 – 3. 4. 2018
The Supreme Audit Office (SAO) has scrutinized the closing account, bookkeeping, and preparation of financial statements of the Ministry of the Environment (MoE) for 2016. The audit was also related to data submitted for evaluation of the state budget implementation. In these data and in the closing account of the MoE, the auditors found only minor deficiencies. In the financial statements, however, the MoE reported some data incorrectly.
For example, the MoE failed to report allowances for greenhouse gas emissions, which are specific intangible assets. The MoE incorrectly valued these allowances at the date of their asset allocation. When it appraised their real value at the date of preparation of the financial statements, it incorrectly estimated the difference from that revaluation.
In the annex to the financial statements, the MoE did not report a contingent receivable of almost CZK 727 million. This resulted from a contract on the creation of a lien entered in the Land Registry. The MoE also did not recognize contingent liabilities from framework contracts for the disposal of mining works for more than CZK 229 million.
The MoE incorrectly set up the algorithm for calculating the cash flow statement data, which led to reporting of incorrect data of this statement.
However, the above inaccuracies do not have a significant impact on the financial statements, so the SAO has been able to state that the financial statements of the Ministry of the Environment for the year 2016 provide a true and fair view of the accounting subject and the financial position of the entity, except for the misstatements described above.
Communication Department
Supreme Audit Office