Auditing operation No. 04/19
Closing account of the State Budget chapter – Ministry of Justice
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. 04/19. 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 Ministry of Justice 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 Ministry of Justice as at 31 December 2003 (as the source for the closing account of the State Budget chapter – the Ministry of Justice), as well as relevant connections in the years 1997 to 2002 and the year 2004, were subjected to the audit.
The audited bodies were the Ministry of Justice and the organizational units of the state under its authority: City Court in Prague and Regional Court in Brno.
1. Credibility of the financial statements as at 31 December 2003
Seeing the total value of irregularities in financial statements of the audited bodies it is evident that their financial statements do not give a true and fair view of the subject of the accounts for the year 2003 in the significant regards in accordance with the Act on accountancy and related regulations.
2. Breach of best budgetary practice
The total magnitude of breaches of the best budgetary practice within the meaning of the Section 44 of the Budgetary Rules was found to be CZK 16,758,421.89.
3. The Closing Account of the State Budget chapter No. 336 – Ministry of Justice for the year 2003
The financial statements drawn up by the audited bodies were not a reliable basis for the closing accounts of the State Budget chapter in accordance with the Ministry of Finance Decree No. 419/2001 Coll. All of above-mentioned irregularities were in the closing account aggregated into number data outputs.
Total irregularity in the closing account of the State Budget chapter – the Ministry of Justice amounts CZK 373,285,550. Including CZK 373,122,760 in the statement “Balance sheet of Organizational Units of the State”, and CZK 162,790 in the Budget Fulfilment Statement.
Due to irregularities ascertained in the financial statements of the audited bodies it is necessary that they should immediately ensure corresponding revision in their bookkeeping in order to eliminate ascertained imperfections and introduce accurate and complete information in this closing account of the State Budget chapter.