The Ministry of Labour and Social Affairs provided almost CZK 9 billion in aid for families. However, an overview of how these funds actually helped the persons in need is lacking.
Press release on audit No 21/29 – 28 November 2022
The SAO focused on auditing the funds spent by the Ministry of Labour and Social Affairs (MoLSA) from the state budget and EU funds on family policy aid. The management of the funds from the Operational Programme ‘Employment’ (OPEm) and the national subsidy ‘Family’ between the years 2018 and 2020 was reviewed. The SAO also examined the strategic management of the financial support for families in the Czech Republic. The auditors found that a total of almost CZK 9 billion, which came from the state budget and the EU, contributed only partially to support families. The family policy support system was designed so that beneficiaries would absorb a maximum amount of funds from the OPEm. However, in some cases the Ministry did not monitor how these funds actually helped the ones in need. The number of participants supported was monitored, rather than the qualitative benefits of the aid.
An interactive view of the data set included in the audit report is available here (only Czech): https://www.nku.cz/scripts/detail.php?id=12728.
Under the Operational Programme ‘Employment’, CZK 8.6 billion was spent in support of families through at least 3,593 projects. Almost 160 thousand people were supported. As the MoLSA did not oblige beneficiaries to monitor and evaluate the impact of projects after their completion, it is not possible to prove the long-term impact of the aid. It is therefore unclear whether these funds have contributed to a reduction in the number of people at risk of poverty or social exclusion, as required by the objective set out in the ‘National Reform Programme’.
The audit revealed that for 179 out of 331 (i.e. 54%) completed family policy support projects with a total expenditure of CZK 495 million, the specific sub-objective, i.e. ensuring qualifications for project participants, was not achieved.
For the national subsidy ‘Family’, which is intended to contribute to the prevention of undesirable situations such as family breakdown or the removal of children, the MoLSA did not set specific objectives. In this case as well, it is not possible to monitor and evaluate the benefits, efficiency and effectiveness of the funds spent from the state budget.
The SAO reviewed 10 projects on the part of specific beneficiaries. These projects, on which CZK 216.7 million was spent from the state budget and from EU funds, were aimed at improving the situation of carers of children under the age of 15 and those at risk of social exclusion. A total of 2,999 people participated in the projects, with 91% being women. The auditors found that the money spent had contributed to improving the situation of these persons to a smaller extent than expected by the beneficiaries themselves. Here too, the long-term effects of the aid are only partial or not possible to prove.
The audit revealed that the MoLSA did not act in accordance with the Financial Control Act when administering OPEm projects. Furthermore, it was found that the ‘Family Policy Concept’ of 2017 does not provide sufficient support for the effective use of state and EU funds in support of family policy. The MoLSA did not set specific, measurable and time-bound targets and no indicators to systematically monitor and evaluate the achievement of the set objectives. In 2019 and 2021, although the MoLSA prepared and submitted updates of the Concept to the government, they were never discussed and approved.
At-risk-of-poverty rate for selected household types (2015-2021)
Communication Department
Supreme Audit Office