AUDIT OFFICE - 59 SCHOOL BOARDS ARE MAKING HISTORY WITH A TOTAL GAP OF 501 YEARS IN SUBMISSION OF FINANCIAL STATEMENTS - UNBELIEVABLE THINGS IN MUNICIPALITIES AND COMMUNITIES AS WELL - Filenews 12/3 by Vassos Vassiliou
Some municipalities, communities and school boards look like an unfenced vineyard. Especially in the latter, the pending issues regarding the submission of their financial statements are monumental. The pending issues of 59 School Boards reach a total of 501 years until 2023. The surprising finding belongs to the Audit Office, with the Auditor General himself recording delays and in the submission of financial statements by Sewerage Boards (SAs) with Kyperounta holding the scepter with a delay of 24 years while the Community Councils of Palaichori and Orini present delays of 23 years.
As stated in a relevant report by the Auditor General, Mr. Andreas Papaconstantinou, as of December 31, 2025, the number of financial statements of 653 organizations (Municipalities, Community Councils, School Boards and other public law organizations) that are pending audit, for the period 1995-2023, amounts to 6,734.
Of the 653 organizations that were audited, 352 concern community councils, 182 school boards, 81 concern other public law organizations and 38 municipalities.
The 6,734 financial statements pending on 31.12.2025 cover the period 1995–2023 and are broken down as follows:
-5,449 (80.9%) have been assigned but not audited by private auditors.
-929 (13.8%) were not submitted to the Audit Office in violation of the legislation.
-4,265 (63.3%) of the 6,734 (financial statements) that are pending, concern years before 2020.
-653 Organizations have outstanding audits of their financial statements for the years 1995–2023.
Regarding the financial statements submitted to the Audit Office and their audit has not yet been completed by the Private Auditors, it is stated that there is a significant delay (in the completion of the audits) resulting in the accumulation of a large number of unaudited financial statements. Specifically, as of 31.12.2025, there were 5,805 financial statements relating to the years from 1995 to 2023 whose audit has either not begun, or has been assigned but not completed.
It is noted that some Municipalities that experienced significant delays of 4-8 years in the submission of Financial Statements, no longer exist (they were merged in the context of the Reform). These include the Municipality of Aglantzia (8 years), while significant delays (4-8 years) are presented by the Municipalities of Dromolaxia-Meneou (6 years), Lapithos (eight years), Geroskipou (seven years) and Kyrenia for four years.
Since 2014, when the audit was entrusted to private individuals, the backlog skyrocketed from 1,292 at the time, to 6,734 in 2023.
Based on the data concerning Municipalities, community councils, school boards, and other organizations, the pending issues, from 9 in the period 1995-1999, amounted to 83 in the period 2000-2004, increased to 600 in the period 2005-2009, closed to 1,292 in the period 2010-2014, increased to 2,281 in the period 2015-2019, rose to 2,469 in the period 2020-2023, raising the total backlog.
Financial statements for the period 1995-2023 as of 31/12/2025
Based on the data, the community councils pulled out both the rope and the stake, taking into account that the pending submission of financial statements amounted to 4,118, compared to 1,897 of the pending issues concerning the school boards, 482 other organizations and 237 related to Municipalities.
As stated in the Report, the Public Law Organizations currently operating in the Republic and subject to an audit of their financial statements by the Auditor General, amount to 705.
In this maze, it is worth noting that there are Organizations that have their obligations in order in relation to the submission of their financial statements and do not show any delay in completing their audits until the year 2023.
Based on the data kept, the financial statements relating to the years up to and including 2023 that had not been submitted to the Audit Office by 31.12.2025, amounted to 929 and concern a total of 179 Organizations.
The Auditor General considers the prevailing situation to be unacceptable and, above all, illegal, since the provisions of the relevant legislation are violated, which provides that the financial statements must be submitted to the Auditor General for audit within four months after the end of each financial year.
As indicated by the Auditor General, delays substantially undermine the reliability of financial information and limit the ability of competent authorities to take corrective action in a timely manner. It also observes that the timely submission and completion of the audit of financial statements is a basic condition for enhancing transparency and protecting the public interest.
