2012 closing account of the Ministry of Defence: CZK 19,800 million wrongly accounted for
PRESS RELEASE on Audit No. 13/29 – August 18, 2014
The Supreme Audit Office (SAO) audited the Ministry of Defence and scrutinized its accounting processes performed in 2012, its final accounts and the closing account for the year 2012, and examined whether the Ministry proceeded in compliance with relevant legal regulations when compiling the accounts.
Auditors revealed that data were incomplete and sometimes wrongly accounted for. For example, the Ministry of Defence failed to keep complete accounts of long-term tangible assets. Errors in the Ministry’s accounts included cases of putting the data on improper account entries.
The errors revealed by the auditors amounted to CZK 19,800 million in total. The errors were significant when taken separately as well as aggregated, but the nature of the errors could not influence the Ministry’s closing account’s users in making economic decisions. Thus the SAO concluded that 2012 closing account of the Ministry of Defence gave – with the exclusion of the above mentioned errors – true and fair view of the Ministry’s financial state and accounts.
Auditors also revealed that the Ministry of Defence had violated Cadastre Act in case of their properties: Some properties were put in the Ministry’s final accounts in spite of the information shown in the cadastre, while other properties were registered in the cadastre but were not kept in the Ministry’s accounts.
Supreme Audit Office