Consolidated calculations of central government finances give a more accurate idea of the state’s financial position
In the financial audits concerning year 2025, the number of cautions and opinions on regularity issued to accounting offices was historically low. In addition to audit findings, the financial audit summary report also includes information on the audit of consolidated calculations conducted for the first time.
Consolidated calculations of central government finances were produced for the first time for last year, following an amendment to the State Budget Act in 2024. In addition to central government accounting offices’ final accounts, the consolidated calculations include information on off-budget funds and unincorporated state enterprises.
The NAOF published a separate audit of the consolidated calculations. This audit paid particular attention to practices and the organisation of internal control. While no essential problems came to light, a few findings were reported to the State Treasury.
Director Jaakko Eskola notes that the consolidated calculations are particularly important for giving a true and fair view of the state’s financial position.
“The final account figures in the consolidated calculations show that the situation is not as gloomy as the figures of the on-budget activities alone indicate, as a significant proportion of central government assets are not part of the on-budget entities.”
This audit will be conducted for the second time next year, making it possible to compare the information in the consolidated calculations.
Deferrable appropriations are not justified
The NAOF published an audit of deferrable appropriations in early 2025. A recently published follow-up report found that the deferrable appropriations have remained at the level of EUR 10 billion. At the end of 2025 the deferrable appropriation item of the largest government agencies’ and ministries’ operating expencies, with a few exceptions, exceeded 15% of the appropriation, in many cases amounting to 30%–50% or even more.
The final account analyses contained little or no justification for the operating expencies’ deferrable items. The way the deferrable item was committed to known expenses was only described well in a handful of the final accounts.
The deferrable item amount indicates roughly how much the accounting office has deviated from the budget annuality principle. From the perspective of the budget for the fiscal year, deferrable appropriations represent front-loaded financing of expenditure.
Clean sheet in financial audits
The NAOF issued a total of 66 financial audit reports on the financial audits of the ministries, other accounting offices and three off-budget funds for 2025. The accounting offices did well, as the number (14) and share (22%) of accounting offices that received a caution out of all those audited were the lowest in ten years. A qualified opinion on regularity was only issued to three offices.
“The fact that several substantial errors were discovered and reported during the financial audit process contributed to the small number of cautions. As this allowed the accounting offices time to correct them before closing the books, the errors did not end up in the final accounts,” explains Eskola.
The findings of the financial audits for 2025 have now been gathered into a summary report. The aim of this report published for the sixth time is to enable all accounting offices to benefit from the findings. The report also contains information on the audit of the consolidated calculations and the follow-up of deferrable appropriations.
Jaakko Eskola
Director, the Audit Unit, Authorised Public Accountant
Management
