1 Annual report not approved in writing
Incompliance with documentation principle
The company established the conditions for compliant asset management and, in adherence to the regulations, it ensured that the value and condition of the state-owned assets in its management as well as of its own assets were preserved. Separate records were kept on the managed assets and the revenues and expenses deriving from their operation. The SAO revealed, however, that the amount of committed reserve was reduced in 2014 with the capitalised value of the investments and renovations carried out on the managed assets in spite of the fact that HNAM Inc. had not approved the annual report for 2014 in writing by the balance sheet date. The company fulfilled its data provision obligation related to investments and renovations according to the regulations.
Background
HungaroControl provides air traffic services in the Hungarian airspace and (based on the request of NATO in the high airspace above Kosovo, too), provides training for air traffic personnel and carries out air navigation research and development. Its sole shareholder is the Hungarian state, its founder’s and proprietary rights are exercised by the Hungarian National Development Minister. HungaroControl Pte.Ltd.Co., employing more than 700 persons, performed its tasks with the assets received for asset management and with its own assets. Its equity continually increased in the period between 01 January 2012 and 31 December 2015, while the amount of its subscribed capital remained unchanged. The company operated at a profit.
Objectives
The State Audit Office of Hungary, by auditing the systems carrying out public duties outside the state budget, contributes to public funds being used by the organisations operating outside the state budget in a transparent manner. The SAO, therefore, proceeds with scheduled audits of state-owned economic organisations, within the framework of which HungaroControl Hungarian Air Navigation Services Pte.Ltd.Co. was also audited.