Auditing operation No. 04/17
Closing account of the State Budget chapter – the Academy of Sciences of the Czech Republic
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2004 under No. 04/17. The auditing operation was managed and audit conclusion drawn up by Mr. Jan Vedral, the Member of the SAO.
The aim of the audit was to examine whether the financial and accounting statements submitted by the Academy of Sciences of the Czech Republic as the basis for the closing account of the State Budget chapter were correct.
The operations that are the subject of bookkeeping and influence the value of closing balances in the financial statements of the Academy of Sciences of the Czech Republic as at 31 December 2003 (as the source for the closing account of the State Budget chapter – the Academy of Sciences of the Czech Republic), as well as relevant connections in the years 1998 to 2002, were subjected to audit.
The audited body was the Academy of Sciences of the Czech Republic.
The auditing operation detected the following facts:
1. Credibility of the financial statements as at 31. 12. 2003
In accordance with the INTOSAI (International Organisation of Supreme Audit Institutions) Auditing Standards recommendations, the maximum possible rate of incorrect records that users of accounting statements can regard as acceptable is set at 2 % of the value of expenditure (i.e. CZK 72,949.37). Seeing that the total value of irregularities in the Academy’s financial statements was found to be CZK 15,855.92 and did not reach determined materiality threshold, it is evident that the Academy’s financial statements give a true and fair view of the subject of the accounts for 2003 in all significant regards in accordance with the Act on accountancy and related regulations.
Nevertheless, certain irregularities in the Academy’s financial statements require it to make suitable adjustments to its accounting to eliminate the existing shortcomings.
2. Breach of best budgetary practice
The total magnitude of breaches of best budgetary practice within the meaning of Section 44 of the budget rules was found to be CZK 2,923,077.52.