Decree No. 88 / 1972 Coll.
Decree of the Federal Ministry of Finance on the verification and approval of the annual accounts of state economic organisations and foreign trade organisations
Valid
Effective from 01.01.1973
88
DECLARATION
Federal Ministry of Finance
of 8 November 1972
on the examination and approval of the annual accounts of national economic and foreign trade organisations
In agreement with the Federal Statistical Office pursuant to § 35 (3) of Act No. 21 / 1971 Coll., the Federal Ministry of Finance provides:
Scope
This Decree provides for the verification and approval of the annual accounts *) of state economic organisations, including the Directorate-General and Foreign Trade Organisations, with the exception of cooperative undertakings for foreign trade (hereinafter referred to as "organisations').
Financial statements and annual accounts
(1) After each calendar year, the organisation shall draw up the accounts and draw up the annual accounts.
(2) The organisation shall, in the course of the financial statements, follow the instructions for the financial statements as required.
(3) The annual accounts shall be audited and approved in accordance with this Decree, the annual accounts constituting the annual balance sheet and the annual profit and loss account.
Review of the accuracy of the annual accounts
The accuracy of the annual accounts shall be checked by the superior authorities in all organisations directly managed by them (hereinafter referred to as "the investigating authorities'); they shall aim at the examination of the annual accounts in both formal and factual terms and the examination of the evidence of the accounts.
The annual accounts shall be audited on a formal basis.
(a) the consistency of the annual accounts data with the accounting data (balances and turnover of accounts);
(b) the accuracy of the compilation of the annual accounts, in particular whether the links between the indicators are respected both within the annual accounts and in the previous annual accounts (balance sheet continuity).
The accuracy of the reported annual profit or loss shall be checked when the annual accounts are examined in substance; in particular, the accuracy is examined
(a) the individual items of the annual accounts, i.e. the declared stocks of economic resources (assets and liabilities) and costs and revenues with a particular focus on the reported accruals;
(b) quantification of the production and distribution of the economic result, with a particular focus on the organisation's obligations towards the State budget, national committees' budgets and national funds.
(1) When examining the evidence of accounting, it is necessary to establish:
(a) whether the organisation is accounted for in accordance with sound accounting documents;
(b) whether the accounting documents are continuously examined;
(c) whether the accounting documents are accounted for by the correct amounts for the relevant financial years and for the correct accounts and their parties;
(d) whether data on economic resources are verified by proper inventories of such funds.
(2) The evidence of accounting can also be examined during the evaluation year in the course of the normal control activity and in the periodic review of the management. *)
Before verifying the accuracy of the annual accounts pursuant to Sections 5 and 6, the investigating authority shall determine where the centre of gravity of the verification will be limited to random checks, or where there will be no need to examine the evidence of the accounts referred to in Section 6 on the ground that this evidence has already been verified in the year of assessment (in the case of routine control activities or periodic audit of the management). The investigating authority shall take into account the conclusions of the latest periodic review of the management, or financial or other special revisions, the results of the normal control activity and the results of the verification of the accuracy of the previous annual accounts.
The results of the verification of the accuracy of the annual accounts shall be summarised in the opinion of the investigating authority. This opinion shall state what and to what extent the accuracy of the annual accounts has been examined; Furthermore, the opinion shall include the results of the verifications and their evaluation, the proposal for approval of the annual accounts, the proposal for approval of the distribution of the annual profit or loss and, where appropriate, the proposals for measures to address the deficiencies identified. When drawing up the opinion, account shall be taken of the results of the normal control activities of the investigating authority, the results of the revisions and checks carried out by other authorities and the conclusions of the periodic review of the management of the year under assessment.
Focus of annual analysis of the organisation's economic activity
On the basis of the annual accounting and statistical reports and other supporting documents (various reports, reports, results of checks and revisions, analyses carried out during the year, etc.), the organisation shall analyse its year-round economic activity in cooperation with the relevant trade union body and agree with it how to discuss the conclusions of this analysis with the workers; the results of the analysis shall be summarised in the report on the results of the annual analysis of the organisation's economic activity. In this report, the organisation shall evaluate its economic activity and propose measures to further improve it and to address the deficiencies identified.
(1) In the annual economic activity analysis, the organisation shall in particular focus on assessing:
(a) the implementation of the plans in order to identify not only deviations from the plan indicators, but also the causes of these deviations;
(b) performance of the tasks and indicative indicators of the State Economic Plan;
(c) the development of the organisation's management in the year in question and its comparison with previous years and the assessment of the economic outcome in terms of efficiency, economy and satisfaction of the company's needs;
(d) the measures taken to address the deficiencies already in the course of the implementation of the plans, as well as the measures already proposed to create conditions for the performance of the planned tasks and to ensure the continuous development of the organisation;
(e) measures taken or proposed to make more efficient use of material, work and financial resources and to improve the effectiveness of the organisation's economic activity; pay particular attention to cost analysis, in particular material,
(f) measures taken or proposed to protect, maintain and exploit the economic resources of the organisation;
(g) the implementation of a collective agreement, in particular the conditions for the development of a labour initiative, socialist competition, the inventive and improving movement, as well as the implementation of measures to increase workers' care;
(h) the implementation of the measures approved in the final evaluation of the organisation's activities in the last year.
(2) The annual analysis of the organisation's economic activity shall further assess the facts to be taken into account in determining the economic performance shares * *) and in evaluating the management activities of managers. * * *)
Final evaluation
(1) The annual accounts, the opinion of the investigating authority and the report on the results of the annual analysis of the organisation's economic activity shall be discussed in the final evaluation of the organisation's activities, chaired by the representative of the investigating authority.
(2) The final evaluation of the organisation's activities shall take place only after the financial relations with the state budget have been cleared, but no later than the end of May of the year following the year under assessment. The investigating authorities may shorten this deadline for organisations managed by them. The site and date of the final evaluation shall be determined by the head of the evaluated organisation in agreement with the investigating authority.
(1) Representatives of the relevant branch of the bank, the district financial administration, responsible for managing the financial relations of the rated organisation to the state budget (state funds) and the authorities designated by the superior body must be invited to the final evaluation; for organisations managed by national committees, a representative of the National Committee Financial Department under whose responsibility the management of the levy (pension tax) of the evaluated organisation under the national committee's budget shall be invited - unless the final evaluation is chaired by a representative. In addition, the head of the evaluated organisation shall invite representatives of the party and trade union bodies and youth organisations to the final evaluation; it may invite representatives of other institutions as appropriate.
(2) An invitation to participate in the final evaluation shall be sent to all invited at least 10 days before the final evaluation; In doing so, it is necessary to ensure that invited persons are able to get to know the annual accounts in due time, the opinion of the investigating authority and the report on the results of the annual analysis of the organisation's economic activity.
Approval of the annual accounts
(1) After assessing the economic activity of the organisation, the final evaluation will be decided on behalf of the investigating body of the President.
(a) the approval of the annual accounts;
(b) authorising the distribution of the annual profit or loss;
(c) the measures proposed to improve the organisation's economic activity and to address the deficiencies identified.
(2) The approval of the annual accounts and the approval of the distribution of the annual economic result are without prejudice to the assessment procedure for levies and taxes and to the implementation of periodic revisions of the economy, financial revisions and checks.
(1) The annual accounts are approved without reservation or subject to reservation. If, after the annual accounts have been drawn up, deficiencies which cannot be remedied until the final evaluation period, the annual accounts shall be approved subject to the correction of those deficiencies; at the same time, corrective measures shall be laid down, time limits for compliance with those measures and the method of control. Only after these measures have been completed and they have been checked shall the annual accounts be deemed to have been approved.
(2) The examination, evaluation and approval of the annual accounts must be recorded and sent to all invited for the final evaluation. The head of the organisation shall inform the working organisation of the conclusions of the final evaluation.
If the representative of the Financial Administration or the Financial Department of the National Committee (Paragraph 12 (1)) does not agree with the approval of the annual accounts or the approval of the distribution of the annual profit or loss, the authority superior to the investigating authority in agreement with the Regional Financial Administration (Regional National Financial Department) shall decide on the approval by 15 June of the year following the evaluation year at the latest; If the investigating authority is a central authority (Regional National Committee), the latter shall decide to approve it in agreement with the Regional Financial Administration (Regional National Committee Financial Department).
Final provisions
The summary annual accounts drawn up at the level of senior bodies (branch directorates, general directorates) for the entire production unit, unless otherwise provided by each central authority within its competence, shall not be audited and approved under this decree.
The provisions of this Order shall also apply to the verification and clearance of accounts drawn up at the date of cancellation of the organisation.
An examination of the accuracy of the annual accounts under this decree is not necessary if it is replaced in full and before the final assessment is carried out by a periodic review of the management.
This Decree shall take effect on 1 January 1973; its provisions shall already apply to the examination and approval of the annual accounts drawn up on 31 December 1972.
Minister:
Doc. Ing. Rozechek, CSc.
*) § 14 of the ČSSR Decree No. 153 / 1971 Coll., on the Information System of Organisations.
*) Decree No. 163 / 1971 Coll., on the conduct of periodic revisions of the economy.
* *) § 27 of Decree No 158 / 1970 Coll., on the regulation of wage developments and on the principles of pay, as amended by Decree No 165 / 1971 Coll.
* * *) Revenue of the Federal Ministry of Labour and Social Affairs of 24 February 1971 No 9 / 1971 Ú. v. ČSR and No 8 / 1971 Ú. v. SSR, on the material involvement of managers, registered in the Collection of Laws, amount 6 / 1971.
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Regulation Information
| Citation | Decree of the Federal Ministry of Finance No. 88 / 1972 Coll., on the examination and approval of the annual accounts of state economic organisations and foreign trade organisations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.11.1972 |
|---|---|
| Effective from | 01.01.1973 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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