Results of financial audit of the 2021 sets of consolidated financial and budget execution reports of the State Social Insurance Fund

The National Audit Office presented to the Seimas (Parliament) its opinions on the 2021 set of national financial statements, and the sets of financial and budget implementation reports of the State and five resources funds — Compulsory Health Insurance, State Social Insurance, Guarantee, Long-term Employee Benefits, and Reserve (Stabilisation) funds.

“The National Audit Office issues these opinions annually in fulfilling its constitutional duty, and their aim is to assess whether the data of the reports give a true and fair view of the state’s financial position and performance. While we appreciate the efforts to improve reporting, it must be stated that the sets of the State's financial statements continue to be assessed as unreliable due to material and pervasive misstatements. This led to negative auditor‘s opinions on the 2021 sets of national and state financial statements,” says Mindaugas Macijauskas, Auditor General.

Significant deficiencies were identified also in the sets of financial statements of four social security funds (Compulsory Health Insurance, State Social Insurance, Long-term Employee Benefits, and Guarantee funds), and therefore qualified auditor‘s opinions were issued on them. The Reserve (Stabilisation) Fund is subject to an unqualified auditor’s opinion which means that the set is fair in all material respects.

The quality of one of the most important sources of State data — financial reports — would be improved if the implementation of the recommendations of the National Audit Office would simplify and unify the accounting processes in state institutions, the internal control systems function effectively, and methodological assistance is provided in a systematic and timely manner.

Centralised accounting could also contribute more to the quality of data in the financial statements. The results of the audit “Centralisation of Accounting Management and Personnel Administration Functions” carried out by the National Audit Office showed that centralisation would be more effective if criteria for the centralisation of institutions were established, missing and improved existing information systems were developed, and more attention was paid to attracting human resources and ensuring the necessary professional competences.

• Results of financial audit of 2021 set of national financial reports and data of public debt
• Results of financial audit of the 2021 sets of State financial and budget execution reports
• Results of financial audit of the 2021 sets of financial and budget execution reports of the Reserve (Stabilization) Fund
• Results of financial audit of 2021 sets of consolidated financial and budget execution reports of the Compulsory Health Insurance Fund
• Results of financial audit of the 2021 sets of consolidated financial and budget execution reports of the State Social Insurance Fund
• Results of financial audit of the 2021 sets of financial and budget execution reports of the Guarantee Fund
• Results of financial audit of the 2021 sets of financial and budget execution reports of the Long-Term Employee Benefits Fund
• Centralisation of accounting management and personnel administration functions