site.btaNational Audit Office Corrects BGN 6.73 billion in Misstatements in Annual Financial Statements of Budget Organizations in 2023

The Bulgarian National Audit Office (BNAO) corrected BGN 6.73 billion in misstatements in the annual financial statements of budget organizations (ministries, agencies, public universities and municipalities) as a result of financial audits in 2023. This is nearly 2.5 times more than in 2022 when BNAO corrected BGN 2.75 billion in misstatements, the National Audit Office said on Wednesday.

In 2023, BNAO carried out 333 financial audits of the 2022 annual financial statements of budget organizations, 16% more than in 2022.

BNAO expressed 271 unmodified opinions, 50 qualified opinions and 11 adverse opinions. BNAO issued a disclaimer of opinion on the annual financial statement of one budget organization.

An unmodified opinion means that the statements give a true and fair view of the financial status and performance of budget organizations.

There are two types of modified opinion - qualified and adverse. BNAO issues a qualified opinion when the audited financial statements contain material misstatements or
omissions of important non-financial information whose effect is confined. An adverse opinion is issued when the audited financial statements contain material misstatements or omissions of
important non-financial information whose effect is pervasive. A disclaimer of opinion is issued in exceptional cases, when the circumstances prevent the auditors from performing the necessary procedures and it is impossible to conclude whether the financial statements provide a true and fair view of the financial position, financial performance and cash flows of the respective public sector entity.

The corrections have helped to increase considerably the number of financial statements which present a true and fair picture of the financial position, financial performance and cash flows of the public sector entities.

BNAO referred cases of non-compliance with the legal framework by two ministries and agencies and 34 municipalities to the Public Financial Inspection Agency, and by one central government agency to the prosecution service, in order to initiate appropriate action. The prosecution service was notified of legally non-conforming collection or spending of budget or other public funds and evidence of offences by six municipalities.

Audit reports were also sent to other bodies for information or for taking action.