Digitalisation of libraries is successful, but the Ministry of Culture has been making mistakes in subsidies
PRESS RELEASE ON AUDIT NO 24/03 – 3 March 2025
The SAO's audit focused on the money spent between 2017 and 2023 to support the digitalisation of libraries showed that the Ministry of Culture (MoC) directed the funds to the real needs of libraries, but set the digitalisation objectives very generally, which prevented an overall evaluation of the effectiveness and economy of the funds provided. The Supreme Audit Office (SAO) found that the MoC did not monitor the impact of the financial aid provided, did not transparently evaluate applications, provided subsidies contrary to the conditions set and carried out only one public administration audit in seven years. In the audited period, the MoC spent CZK 446.7 million to support the digitalisation of libraries from the state budget and the "National Recovery Plan". The SAO focused on three beneficiaries, which are the largest public libraries in the Czech Republic, including the National Library of the Czech Republic (NL CR) and the National Technical Library (NTL).
The SAO selected a sample of 72 projects worth almost CZK 70 million. The audit showed that the projects have had a positive impact on the services provided by the Czech library network. For example, between 2017 and 2023, almost 80,000 digitised historical and rare documents from the NL CR's collections were made available and the library preserved or reformatted a total of 564 volumes comprising over 416,000 pages. The SAO verified that no duplicate digitisation of identical documents took place.
The auditors found that the MoC provided subsidies of CZK 12.7 million to 24 projects in the audit sample in violation of the legal regulation. The Ministry paid 100% of the budgeted costs, although the relevant government regulation stipulated that the maximum amount of the subsidy could be 70% of these costs. According to the SAO, this is evidence of a breach of budgetary discipline. The MoC also did not transparently evaluate the applications for subsidies, as it did not exclude committee members whose impartiality was in doubt. These members were involved in the evaluation of 29 projects for which they had links to the applicants.
The SAO draws attention to insufficient public administration control by the MoC. In seven years, it has carried out only one audit of a single subsidy recipient. "In view of the shortcomings mentioned in this audit report, the area of subsidy provision by the Ministry of Culture can be considered risky. The SAO repeatedly points out the low number of public administration audits carried out by the Ministry of Culture, see for example SAO audits No. 18/19, No. 21/16 or No. 23/15," said Adolf Beznoska, the SAO Member who led the audit.
Between 2017 and 2022, the NTL has drawn almost CZK 1.1 billion from the European Structural and Investment Funds and the state budget for the provision of electronic information resources* within the "CzechELib" project. According to the SAO, these funds were spent effectively and economically. Thanks to the project, a national centre for the acquisition of electronic information resources was established, which saved money and reduced administration.
The audit showed that the NTL does not consider digitalisation as one of its key activities, although it is included in its charter. Compared to the NL CR, it digitises documents from historical collections more slowly. The NTL does not have a dedicated workplace for digitisation of library collections and the technical equipment for digitalisation consists of only two outdated large format book scanners and one desktop scanner. Meanwhile, there is a growing preference among users for digitised documents. According to the SAO, it is desirable that the NTL speed up the process of digitisation of documents. The auditors found shortcomings in the archives and filing service of the NTL.
Since 2011, the Czech Republic has been dealing with the introduction of mandatory printouts of electronic publications. Although the MoC has already submitted a draft law, it had not been discussed and approved by the Parliament of the Czech Republic by the end of the SAO audit.
Communication Department
Supreme Audit Office
* A collective name for electronic journals, electronic books and special databases of particular relevance to research and development