The audit of Ukrtransbezpeka revealed shortcomings in the identification and accounting of intangible assets
The financial statements of the State Service of Ukraine for Transport Safety for 2024 are prepared reliably and in all material respects in accordance with national accounting standards, however, they contain certain distortions, in particular, in the definition and accounting of intangible assets. The Service also does not have complete information about its facilities located in the occupied territories, – this is stated in the Report on the Results of the First Financial Audit of Ukrtransbezpeka, approved on May 27 at a meeting of the Accounting Chamber. Responsible for the audit – Deputy Chairman of the Accounting Chamber Serhiy Klyuchka.
The amount of funds covered by the audit amounted to over 413 million hryvnias. Of this amount, the auditors found errors and distortions of 37.1 million hryvnias (of which significant at the balance sheet level – 28.2 million hryvnias). These are:
- incorrect accounting of intangible assets that did not meet the criteria for recognition as an asset;
- failure to reflect intellectual property objects introduced into economic circulation;
- recognition of software copies as an intangible asset without property rights.
In addition, it was established: Ukrtransbezpeka does not have up-to-date information on the condition and availability of assets that were in the territories where hostilities are underway or temporarily occupied by the Russian Federation. Proper accounting organization within the body was not ensured: document flow rules and accounting information processing technology were not developed. This weakened the internal control system and affected the reliability of financial reporting.
Since the beginning of the audit (November 2024),the Service has timely corrected some of the errors identified by the auditors of the Accounting Chamber in the annual reporting for a total of UAH 29.9 million. As of the date of completion of the audit, errors for a total of UAH 7.2 million remained uncorrected.
To eliminate the remaining shortcomings, the Accounting Chamber provided a total of 13 recommendations to the Ministry of Finance of Ukraine, the Ministry of Development of Communities and Territories of Ukraine, and Ukrtransbezpeca. In particular:
– bring the accounting of intangible assets in line with legislative requirements;
– approve the rules for organizing accounting and the document flow schedule;
– to formalize transactions for the introduction of intellectual property rights into economic turnover in accordance with legal requirements;
– strengthen control measures to ensure the reliability of accounting for intangible assets, etc.
The Deputy Head of the State Service of Ukraine for Transport Safety, Yevhen Zborovsky, who was present at the meeting, noted that the results of the audit of the Accounting Chamber are important, since the Service has not had external audits for a long time.
The Decision and Report on the results of the financial audit will be sent to the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, and also published on the official website of the Accounting Chamber.
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