Cyprus Audit Office reports major backlog in public sector financial reporting

A special report published by the Cyprus Audit Office reveals that as of December 31, 2025, there are 6,734 pending financial statements for 653 public sector entities covering the period from 1995 to 2023. These entities include municipalities, community councils, school boards, and other public law organizations. Of the outstanding statements, 5,449 (80.9%) have been assigned to private auditors but remain unexamined, while 929 (13.8%) were never submitted to the Audit Office in breach of legal requirements. Notably, 4,265 of these cases pertain to years prior to 2020. Auditor General Andreas Papaconstantinou emphasized that these delays undermine financial transparency and the ability to implement timely corrective measures. Extreme examples include 59 school boards with 501 years of cumulative overdue submissions, and the Kyperounta Sewage Board, which faces a 24-year delay. The report highlights a significant backlog increase since auditing was outsourced to private contractors in 2014, when only 1,292 statements were pending.