Court of Audit: Systematically late submission of financial statements by public bodies

A new audit report by the Court of Audit shows that only one‑third of the legal entities under its supervision submit their annual accounts (statement of revenue and expenditure and balance sheet) on time. This undermines the rule of law, under which “public bodies must manage the resources available to them transparently in order to fulfil their public mission and must be accountable for that management.”

On 29 January 2025, the Court of Audit, Greece’s supreme fiscal court, constitutionally established under Article 98, published an audit finding that only one‑third of the legal entities under its supervision submit their annual accounts (statement of revenue and expenditure and balance sheet) within the prescribed deadlines.

The Court of Audit’s own report underscores how important this issue is for the rule of law. It stresses that accountability is inseparable from sound fiscal management and the proper functioning of public bodies. Public entities must manage the resources at their disposal transparently in order to fulfil their public mission, and they must be answerable for how those resources are used. Preparing annual accounts that reflect both budget execution and the entity’s financial position — and submitting them to the Court of Audit on time — is essential for ensuring transparency and reliability in the management of public funds and for strengthening public accountability.

Despite this, the Court of Audit identified the following:

Major delays in preparing balance sheets:

Many entities lack staff with the necessary accounting skills to apply double‑entry bookkeeping and prepare balance sheets. Weaknesses in IT systems further hinder preparation — for example, the Public Employment Service (formerly OAED) has not had an approved balance sheet for more than a decade.

Late outsourcing and poor contract monitoring:

Balance‑sheet preparation is often outsourced years after the end of the financial year, and subsequent audits by certified auditors are also delayed. These contracts are not systematically monitored, causing cascading delays that make timely approval impossible.

Conclusions

Annual accounts are essential for reliable recording of financial management and position, in line with transparency and accountability principles.
Timely submission is not a mere formality but a core obligation of public bodies.
Systemic problems in preparing and approving financial statements prevent timely submission.
Long delays in preparing balance sheets stem from lack of qualified staff and late outsourcing without proper monitoring.
Smaller delays occur in submitting statements of revenue and expenditure, mainly due to approval bottlenecks when deficits arise.
A serious accountability deficit exists in large public bodies such as DYPA, EOPYY and e‑EFKA, which have not produced approved financial statements for years due to unresolved legacy data.

Recommendations

The Court of Audit recommended:

Continuous monitoring of double‑entry bookkeeping and verification of entries throughout the year, either by internal staff or external partners.
Timely outsourcing of accounting work and audits to ensure completion within legal deadlines.
Clear and precise contract terms for external partners, including timelines and phased delivery for multi‑year statements, and systematic monitoring of contract execution.
Inclusion of financial‑statement monitoring in internal audit programmes, and approval of statements of revenue and expenditure regardless of delays in approving balance sheets or previous years’ accounts.
Accelerated completion of financial statements for DYPA, EOPYY, e‑EFKA, OPEKA and all absorbed entities, using all available means.
Prompt finalisation of financial statements for municipal legal entities under the supervision of municipalities.

Where is the problem with the rule of law?

Under the rule of law, public bodies must manage the resources available to them transparently in order to fulfil their public mission and must be accountable for that management.

However, the Court of Audit’s report found that two‑thirds of the legal entities under its supervision do not submit their annual accounts (statement of revenue and expenditure and balance sheet) within the prescribed deadlines.

Thodoris Chondrogiannos

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Court of Audit: Systematically late submission of financial statements by public bodies

Conclusions

Recommendations

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