site.btaNational Audit Office Refers Culture Ministry to Prosecution Service

The National Audit Office has sent materials to the prosecution service from the audit report on the annual financial statement of the Culture Ministry for 2024, the audit institution said on Friday. This is the second consecutive year in which the National Audit Office has referred financial management at the Ministry to the prosecutors, after the same was done regarding the annual report for 2023.

In both years, the audit team issued a negative opinion – the most severe assessment in audit practice. It is given only in cases of pervasive irregularities that significantly distort the true and accurate representation of the institution’s activities, assets and financial position. Such an opinion is rare in the public sector and effectively means that the report cannot be used as a reliable document for financial management.

According to the 2024 report, evidence of a criminal offence has been identified. In addition, significant breaches of accounting legislation and budgetary discipline have been recorded. The auditors also note a critical lack of documentation at the Rhodope Drama Theatre in Smolyan, including the absence of accounting data for a period of more than a year, which in practice makes it impossible to trace financial operations.

The audit report also describes cases of improper reporting of assets, depreciation and revaluations, as well as non-compliance with instructions from the Minister of Finance. It highlights the absence of effective internal control mechanisms, including examples related to unsettled copyright issues. The auditors stated they did not obtain sufficient assurance regarding the completeness and reliability of the accounting information, which led to the issuance of the negative opinion.

During the audit itself, corrections were made relating to incorrectly booked assets and theatrical productions, uncharged penalties and interest, as well as additional violations affecting the National Culture Fund.