After the SAO’s inspection at the Bratislava City Hall, serious errors were found

The audit of the financial statements of the capital by the Supreme Audit Office (SAO) of the Slovak Republic revealed serious errors in accounting, especially with regard to the registration and recovery of receivables. The audited period was the years 2016 to 2018. For example, the auditors pointed to receivables in the amount of more than 50 million euros, for which the debtor is unknown. On Tuesday, the mayor of Bratislava, Matúš Vallo, informed about it, stating that a criminal report will be filed for the findings.

The inspection also found that in the years 2016 – 2018, the city wrote off receivables for around EUR 4.5 million, with this write-off of receivables carried out without precisely defined conditions and without prior approval by the city council. In addition, accounting documents for depreciation receivables have not been issued in accordance with the Accounting Act.

“Given the seriousness of the results of the inspection, a case will be filed criminal report, of which the SAO also informed us. Probably the most serious The findings of the SAO’s audit concerned accuracy and completeness reporting of receivables, their recovery and depreciation. It goes first and foremost o receivables for the lease of municipal property, flats, non – residential premises and land, “said the mayor.

According to him, the SAO’s inspection showed that the capital in the audited period of 2016 – 2018 it did not perform an analysis receivables. Thus, it had no information on the state of their enforceability. At the same time, the city did not use all legal means for timely implementation their rights. The SAO identified several examples where the city did not act or by wrongdoing it lost the possibility of enforcing receivables or their equivalents wrote off in violation of internal regulations and the law.

“Receivables that the city kept in accounting and for which it did not have no supporting documentation, so-called unidentifiable receivables, amounted to almost EUR 52 million at the end of 2018, “ Vallo said.

The highest share in the total amount of written – off receivables in the year 2018 consisted of a write-off of a receivable from J&T Real Estate for the sale of city property on the site of the current River Park in the amount of about about a million euros.

“The city could not prove the documents on the accounting of the receivable, but neither on the recovery of a claim, or the exercise of his property rights before the competent authorities. The receivable was written off from the accounts in full in April 2018 without prior approval by the city council and discussions in the claims commission, “he explained mayor.

The SAO’s inspection found that by giving the city a claim against J&T Real Estate did not enforce, acted in violation of the law on municipal property and at the same time, it did not respect the status of the capital and did not act in accordance with the Accounting Act. “Because for the whole period they did not check the condition receivables in the accounts corresponds to the facts, “ Vallo remarked.

Currently, an inventory of urban areas is being carried out at the municipality receivables. The self-government has the necessary documentation only for the group receivables in the amount of approximately EUR 19.8 million. Based on this documentation, it is possible to continue to recover these claims.

“Of this amount, up to EUR 18.9 million is in receivables, which are more than a year past due. Other unidentified receivables we will subject it to a detailed inspection and we will inform the city council about the next steps, “said the mayor.

Former mayor of Bratislava Ivo Nesrovnal, who was in charge of the chief the city between 2014 and 2018, in response he stated that “it is complete nonsense”. “It was during my mandate that things began to be resolved and given and they got in order. The result was the historically highest surplus budget, “he said, sending more information on the matter.

The audit of the financial statements of the capital by the Supreme Audit Office (SAO) of the Slovak Republic revealed serious errors in accounting, especially with regard to the registration and recovery of receivables. The audited period was the years 2016 to 2018. For example, the auditors pointed to receivables in the amount of more than 50 million euros, for which the debtor is unknown. On Tuesday, the mayor of Bratislava, Matúš Vallo, informed about it, stating that a criminal report will be filed for the findings.

The inspection also found that in the years 2016 – 2018, the city wrote off receivables for around EUR 4.5 million, with this write-off of receivables carried out without precisely defined conditions and without prior approval by the city council. In addition, accounting documents for depreciation receivables have not been issued in accordance with the Accounting Act.

“Given the seriousness of the results of the inspection, a case will be filed criminal report, of which the SAO also informed us. Probably the most serious The findings of the SAO’s audit concerned accuracy and completeness reporting of receivables, their recovery and depreciation. It goes first and foremost o receivables for the lease of municipal property, flats, non – residential premises and land, “said the mayor.

According to him, the SAO’s inspection showed that the capital in the audited period of 2016 – 2018 it did not perform an analysis receivables. Thus, it had no information on the state of their enforceability. At the same time, the city did not use all legal means for timely implementation their rights. The SAO identified several examples where the city did not act or by wrongdoing it lost the possibility of enforcing receivables or their equivalents wrote off in violation of internal regulations and the law.

“Receivables that the city kept in accounting and for which it did not have no supporting documentation, so-called unidentifiable receivables, amounted to almost EUR 52 million at the end of 2018, “ Vallo said.

The highest share in the total amount of written – off receivables in the year 2018 consisted of a write-off of a receivable from J&T Real Estate for the sale of city property on the site of the current River Park in the amount of about about a million euros.

“The city could not prove the documents on the accounting of the receivable, but neither on the recovery of a claim, or the exercise of his property rights before the competent authorities. The receivable was written off from the accounts in full in April 2018 without prior approval by the city council and discussions in the claims commission, “he explained mayor.

The SAO’s inspection found that by giving the city a claim against J&T Real Estate did not enforce, acted in violation of the law on municipal property and at the same time, it did not respect the status of the capital and did not act in accordance with the Accounting Act. “Because for the whole period they did not check the condition receivables in the accounts corresponds to the facts, “ Vallo remarked.

Currently, an inventory of urban areas is being carried out at the municipality receivables. The self-government has the necessary documentation only for the group receivables in the amount of approximately EUR 19.8 million. Based on this documentation, it is possible to continue to recover these claims.

“Of this amount, up to EUR 18.9 million is in receivables, which are more than a year past due. Other unidentified receivables we will subject it to a detailed inspection and we will inform the city council about the next steps, “said the mayor.

Former mayor of Bratislava Ivo Nesrovnal, who was in charge of the chief the city between 2014 and 2018, in response he stated that “it is complete nonsense”. “It was during my mandate that things began to be resolved and given and they got in order. The result was the historically highest surplus budget, “he said, sending more information on the matter.