The Labour Office has corrected material accounting errors totalling CZK 3.5 billion. The figures in the financial statement are therefore reliable.
PRESS RELEASE ON AUDIT NO 25/21 – 10 August 2026
The Supreme Audit Office (SAO) reviewed the closing account and accounting of the Labour Office (LO) of the Czech Republic, as well as the information that the LO submitted for the evaluation of budget implementation for the year 2025. As the audit began during the 2025 fiscal year, it allowed the LO to continuously rectify the shortcomings identified by the auditors.
The SAO identified shortcomings amount to CZK 5.58 billion that would have had impacted the financial statements. However, before the financial statements were prepared, the LO corrected the shortcomings amounting to CZK 3.5 billion. From the perspective of the financial statements, the uncorrected irregularities totalling CZK 2.08 billion were not material 1.
Regarding budget implementation data, the SAO identified only a partial shortcoming in the classification of revenues, amounting to CZK 5 million. This was corrected prior to the preparation of the “State Budget Evaluation Report” and the aforementioned report was prepared in accordance with legal regulation in all significant aspects.
Furthermore, the audit also identified shortcomings in the internal control system, particularly in the areas of accounting and the management of state assets. During the audit, the LO addressed only some of the systematically material shortcomings, namely by implementing a new system for reporting funds from the budget of the European Union. The SAO also identified shortcomings in record-keeping and oversight of software and software licences. As such, the internal control system cannot be considered fully effective.
The SAO also checked the implementation of measures adopted after audit in 2014. Four of the nineteen measures were not implemented correctly. Following this examination, the LO subsequently corrected three of them during the audit. One measure related to long-term intangible assets remained unfulfilled even as of the date of completion of the audit.
Had all measures been consistently implemented as early as 2015, it could have prevented corrections in accounting totalling CZK 293.3 million that the LO did not make until 2025.
Communication Department
Supreme Audit Office
1] The SAO considers a level of errors to be material if exceeding it could influence a reasonably informed user. In the case of the LO, this threshold amounted to CZK 3.5 billion (i.e. approximately 2% of total expenditures).