The expected benefits of the establishment of the National Sports Agency have not materialised: billions in subsidies are not transparent and lack efficiency examination
PRESS RELEASE ON AUDIT NO 23/04 – 29 April 2024
The Ministry of Education, Youth and Sports (MoEYS) and the National Sports Agency (NSA) have spent a total of CZK 26.5 billion from the state budget between 2019 and 2022 to support sport. The NSA was established in August 2019 and took over the activities previously carried out by the MoEYS. The Supreme Audit Office (SAO) audit revealed that the NSA did not monitor or audit the use of subsidies by beneficiaries, nor did it ensure that they complied with the conditions set. It was anticipated that the establishment of the NSA would lead to enhanced transparency, with a view of implementing a functional system for evaluating the use of provided support. The establishment of the NSA did not, therefore, result in the expected benefits.
The NSA did not monitor and evaluate whether its expenditures led, for example, to halting the decline in physical fitness among children and youth, halting the growth of overweight and obesity among children and youth, or reducing the economic burden on families to participate in sport. However, these were also the expected impacts and priorities of the support spent.
In some cases, the MoEYS and the NSA did not proceed transparently and in accordance with the law in the provision of subsidies. The process of administering applications for support at both the MoEYS and the NSA was lengthy for one fifth of the grant calls audited. For 2019 and 2020, the MoEYS issued grant decisions after an average of 90 to 300 days, and for 2021 and 2022, the NSA issued these decisions after an average of 172 to 335 days.
Additionally, the auditors identified deficiencies in the NSA's management practices. In some cases, the NSA did not manage state property and funds efficiently, economically and in accordance with legal regulations. For example, it unjustifiably reduced the income from property by at least half a million crowns when it allowed the original tenants to use part of the downhill and ski jumping area in Harrachov free of charge even after the lease contracts expired. This concerned six out of the 46 plots in total. For the remaining 40 plots, the NSA did not have any lease agreements in place during the audited period. From publicly available sources, it was found that the land was also demonstrably used by other entities (legal or natural persons). For example, the NSA's land included a ropeway which is open throughout the year, a hotel, and refreshment stands.
The NSA also failed to follow the law in the procurement of services and the acquisition of property. In some cases, for example, it spent funds on contracts that were void ab initio under the Contract Register Act. During the whole audited period, it concluded contracts and purchase orders, paid invoices and disbursed subsidies without complying with the legal approval procedures. It has not implemented an effective internal control system to ensure the economical, efficient and effective performance of public administration.
The SAO audit also included a questionnaire survey of sports clubs and associations. For instance, approximately 56% of sports clubs that had previously undergone the grant process at both the MoEYS and the NSA indicated that there was no discernible shift towards a more transparent evaluation of applications. Details of this survey can be found here: https://www.nku.cz/scripts/detail.php?id=13493.
The SAO auditors also asked for information from 47 European Supreme Audit Institutions associated with EUROSAI in order to make an international comparison of state support for sport. Details of this survey can be found here: https://www.nku.cz/scripts/detail.php?id=13494.
Communication Department
Supreme Audit Office