The Audit Office noted that according to significant aspects, the financial reports are prepared and the funds are managed, used and disposed of lawfully. The State Treasury has assumed debt obligations, provided loans and State guarantees in accordance with legal requirements and regulations, the Office reports.
It was noted that the information regarding improperly used European Union (EU) and other international financial support funds, which should be recovered from the project executors, is not disclosed fully in the State Treasury financial reports. The State Treasury accounting is organised in a way, so that the data, needed to register the recovered amount of financial support funds in the accountancy system, is received from other public sector subjects, who have to register funds that should be returned to the State budget according to the public sector accounting and financial reporting standards.
Due to the fact that public sector entities that are managing EU and other international financial support project funds have incorrectly or improperly registered the funds that should be repaid to the State budget, the State Treasury financial reports could not properly and fully disclose information regarding the funds recovered from the project executors, the National Audit Office says.
To ensure the correct preparation of sets of financial reports, the process of providing information for the conclusion of financial reports should be improved. It is also deemed appropriate to inventory and properly review the accounting records, registered in the support beneficiaries' and State Treasury accountancy, as well as their harmonization processes. A more active methodical guidance by the Ministry of Finance and clearer accounting regulations would have a positive impact on the propriety of accountancy. The Ministry of Finance has undertaken to seek ways to address this problem.
