The Commission of Audit has concluded the “Audit Report on the General Account 2007”. In the consolidated financial statements of 2007 prepared by the Finance Services Bureau, material errors involving very high sums were detected and, consequently, the Commission of Audit, in accordance with auditing standards internationally accepted expresses a “qualified opinion”.

In the Report, the Commissioner Fátima Choi discloses that “special financial operations” as investment transactions, issuing and reacquisition of bonds, and lendings and borrowings involving hundreds of thousands of millions patacas in revenues and expenses were not reflected as “revenues” and “expenses” in the consolidated financial statements, which is against the stipulated in the Administrative Regulation n.o 6/2006, effective since 2007. Considering that the consolidated financial statements of 2007 contain material errors, the Commission of Audit is obliged to issue a “qualified opinion”.

In the Report, the Commission of Audit also revealed that the “special financial operations” of the autonomous departments were highly frequent, which by following the public accounting, as the law demands, would artificially and exponentionally inflate the revenues and expenses on the revenues and expenses sheet. The fact puts in evidence the legislation in force is not suitable to adequately present the public departments’ special financial operations transactions, which in turn cannot be fully reflected by using the single entry registration of the cash base accounting.

The Commission of Audit underlines the legislation in force don’t bestow on Finance Services Bureau discretionary powers to introduce special accounting measures to handle situations to which the accounting regime approved by law appears inadequate. So, at present, the Finance Services Bureau cannot help but abide by the law to prepare the General Account.

The Commissioner of Audit affirms the Commission of Audit has the responsibility to verify whether the accounts were prepared in compliance with the accounting regime set up by law and to express an audit opinion. This following, besides pointing out the legislation shortfalls, the Commission, considering the material errors involving very high amounts detected in the financial statements, as a result of not abiding by the public accounting regime in the preparation of accounts, can not express an unreserved opinion.

However, the audit verified that, apart the effects of the “special financial operations”, the consolidated financial statements present in all material aspects the financial position and the budget execution as at 31 December 2007 in accordance with the public accounting regime effective in Macao Special Administrative Region.

The “Audit Report on the General Account 2007” has been sent to the Chief Executive, who furthered a copy to the Legislative Assembly.