Results of the financial audit of the set of accounts of the State for the year 2025

• The set of accounts of the state contains significant errors in asset accounting relating to the accounting of forest land and stands, mineral resources, infrastructure structures and other state assets.
• In the set of state budget implementation reports, a significant portion of expenditure (EUR 916.81 million) has not been disclosed according to its actual intended use.
• The National Audit Office’s auditors were unable to confirm the accuracy of some of the data presented in the accounts of the State Social Insurance Fund and the Compulsory Health Insurance Fund:
    
  • In the State Social Insurance Fund’s accounts, due to shortcomings in the administration of maternity, paternity and childcare benefits, the auditors were unable to confirm the accuracy of EUR 454.9 million in benefits;
  • Deficiencies identified in the accounts of the Compulsory Health Insurance Fund relate to information systems – some of the data necessary for accounting purposes regarding the Fund’s receivables from natural and legal persons and foreign countries is not recorded.

Decisions on public services, defence funding, social benefits and government borrowing are made on the basis of data, the reliability of some of which the auditors cannot confirm. This is shown by the National Audit Office’s findings on the country’s most important 2025 sets of accounts, presented to the Seimas today.
  
Qualified audit opinions have been issued on the set of accounts of the state, the set of accounts of the State Social Insurance Fund and the set of accounts of the Compulsory Health Insurance Fund. This means that material misstatements were identified in them, and therefore the auditors were unable to confirm the accuracy of some of the data presented in the financial statements.
  
“When the state lacks reliable data on its assets, liabilities or the use of expenditure, it is difficult to make the right decisions. Some of these problems have been recurring for several years, so what is needed are not isolated fixes but systemic solutions – stronger internal controls, more reliable information systems and clearer accountability for the quality of the state’s financial data,” says Auditor General Irena Segalovičienė.
  
Significant shortcomings identified in the accounting of state assets and financial control
  
Material misstatements have been identified in the set of accounts of the state for the fourteenth consecutive year. The set of financial statements contains persistent significant errors in asset accounting relating to the accounting of forest land and stands, mineral resources, infrastructure structures and other state assets. A systemic problem persists in the budget implementation reports – a significant portion of expenditure on wages, goods and services, fixed assets, inventory purchases, etc. (EUR 916.81 million) has not been disclosed in accordance with its actual intended use. The audit revealed that it is necessary to ensure the transparent use of state funding allocated to the Lithuanian Riflemen’s Union. Deficiencies were also identified in the organisation and payment of patient transportation services, as well as in the regulation of the supply and pricing of blood and blood components.
  
Important state financial data cannot be considered reliable, even though decisions on public services, defence, social benefits and government borrowing depend directly on its quality.
  
SODRA’s reports reveal significant shortcomings in the administration of benefits
  
The State Social Insurance Fund’s accounts continued to contain misstatements relating to unrecorded liabilities associated with social benefits that had been allocated but not received by the beneficiaries. Due to shortcomings in the administration of maternity, paternity and childcare benefits, the auditors were unable to confirm the accuracy of the costs of these benefits amounting to EUR 454.9 million. Another issue that influenced the modification of the auditors’ opinion was the administration of arrears in deferred social insurance contributions, which did not comply with legal regulations.
  
Accounting shortcomings in the Compulsory Health Insurance Fund are still being addressed
  
A qualified opinion on the financial statements of the Compulsory Health Insurance Fund was issued because, due to shortcomings in the information systems, the auditors were unable to confirm the accuracy of some of the receivables. The systems still do not record some of the data necessary for accounting regarding the Fund’s claims against natural and legal persons and foreign countries for healthcare services provided in Lithuania. These issues were identified as early as 2021 and are still being resolved.
  
No material misstatements were identified in the accounts of other funds
  
The 2025 sets of accounts for the Guarantee, Long-Term Employment Benefits and Pension Annuity Funds are accurate in all material respects – the auditors have issued unqualified opinions on them. Their data can be relied upon when making management decisions.
  
What does the National Audit Office recommend?
  
The National Audit Office has made recommendations to the audited entities aimed at strengthening the management of state funds and assets, internal control and data reliability. The following actions and changes are expected from the following institutions:

• The Ministry of National Defence has to ensure the sound and transparent use of public funds allocated to the Lithuanian Riflemen’s Union.
• Recommendations have been made to the Ministry of Health regarding the regulation of patient transportation services and the improvement of pricing, as well as a more transparent and uniform system for the supply and pricing of blood and blood components.
• The Lithuanian Geological Survey has to make a breakthrough and establish a system for the accounting and internal control of mineral resources that complies with legislation, thereby ensuring reliable state data on mineral resources.
• The National Land Service has to strengthen its IT control environment and address the identified IT management shortcomings.
• The Ministry of Social Security and Labour and the State Social Insurance Fund Board have to take measures to help prevent the risks of duplication of social benefits and overpayments, and must also ensure that payments from the Guarantee Fund are made at a reasonable level.
• The Ministry of Social Security and Labour is also recommended to take measures to prevent the practice of paying supplementary pension contributions that do not comply with the established legal framework, and to regulate the payment of supplementary contributions by employers more clearly.

The National Audit Office emphasises that systemic changes are necessary to strengthen the reliability of financial data. This is important not only for sound decision-making but also for public confidence in the state; therefore, heads of institutions have to assume clear responsibility and ensure the necessary leadership.
  
It is planned that Auditor General Irena Segalovičienė will present the auditor‘s opinions on the country’s annual accounts to the Seimas on 9 June.

• Results of the financial audit of the set of accounts of the State for the year 2025; Auditor‘s Report
• Results of the financial audit of the set of accounts of the State social funds for the year 2025; Auditor‘s Report
• Results of the financial audit of the set of accounts of the Compulsory Health Insurance Fund for the year 2025; Auditor‘s Report
• Results of the financial audit of the set of accounts of the Pension Annuity Fund for the year 2025; Auditor‘s Report