Press Release – June 17, 2010
From June 2009 to February 2010, auditors from the Supreme Audit Office (SAO) performed an audit of 2009 balance accounts submitted by the Czech Social Security Administration (CSSA) to support the final account of the state budget chapter Ministry of Labour and Social Affairs. The pension payments made 90.5 % of the total expenditures of the CSSA in 2009.
“In view of comparisons of the total absolute inaccuracy with the pre-set maximum allowable irregularity ratio of the records1) it is clear that the 2009 financial statements of the CSSA gave true and fair view of pension payments, pursuant to the applicable legislation. The only exception was CZK 440 378 142, which had been put on accounts of the budget item No. 5410 – Social allowances; the SAO auditors could not assess the accuracy of the records with the view of the structure of expenditures. The sum partially represents pension payments that were charged by levies in 2009. Regarding the pre-set allowable ratio of the accounting entity’s records, the said sum would not influence the true and fair statement, even if we put it on the list of inaccuracies “, said president of the SAO František Dohnal.
A control of expenditures revealed an inaccuracy amounting to CZK 137.4 million. The inaccuracy was primarily caused by the fact that the obligations arising from execution claims were not placed on the CSSA accounts in 2009.
The CSSA administers a large agenda of levies imposed on pensions. Civil Procedure Act and the execution rules define the compensation claims of the executor (the executor’s expenses and fees), the creditors, and the company liquidator (in case of a bankruptcy). The regulations do not define the relation to the payments’ administrators.
Every month, the CSSA administers tens of thousands execution claims and the related expenses are funded by the state budget. “The current legislation does not enable the administrator of the payment to make a claim for the expenses. An appropriate legislation change could lead to a more economical utilization of the state budget funds“, said Dohnal.
The auditing operation was included into 2009 Audit Plan of the SAO under No. 09/30. Jan Vedral, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
1) 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 0.5 % of the value that best represents the extent of financial activities in the accounting period, the i. e. pension payments in 2009.
|Pension payments*||Maximum allowable irregularity||Total absolute inaccuracy|
|CZK 331,594,682,912.51||CZK 1,657,973,414.56||CZK 137,612,898.00|