Control of the applications of the Public sector accounting and reports consolidation information system

The National Audit Office performed an audit of the Public sector accounting and reports consolidation information system managed by the Ministry of Finance. Summing up the results of the audit, Auditor General Mrs Giedrė Švedienė said: “We saw that there is sufficient control of the applications of this information system as well as effective data processing controls in place. However, a number of data entry management deficiencies were identified which increase the risk of erroneous primary data entry. Also, the automated data entry tools have not been used to full capacity.”

Data entry control is important in order to avoid application errors, fraud, and to ensure application integrity. It is therefore important to ensure that the information of public sector entities related to the management of material and financial resources is provided automatically. However, in 2012 less than 1 per cent of the public sector entities provided data to the Public sector accounting and reports consolidation information system in an automated manner, which is only 28 out of more than 4,000.

Although no significant problems were identified in relation to the management of the data of the Public sector accounting and reports consolidation information system, consolidated financial statements of the public sector entities may be incorrect due to inadequate primary data in the event of errors in the accounting. Therefore, system users’ competence development is required not only in the area of working with the system, but also in the application of the Public sector financial reporting standards.

With a view to ensuring correct information in consolidated financial statements of public sector entities and effective data provision process, the National Audit Office provided recommendations to the Ministry of Finance.