Auditing operation No. 03/09
The Realisation of the National Programme of the Preparation of the Czech Republic for the Membership in the European Union under the competence of the Department of Agriculture
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as „SAO“) for the year 2003 under No. 03/09. The auditing operation was managed and audit conclusion drawn up by Mr. Zdeněk Brandt, the Member of the SAO.
The aim of the audit was to examine the management of the State Budget funds earmarked for the realisation of the National Programme of the Preparation of the Czech Republic for the Membership in the European Union in the Department of Agriculture and to assess the effectiveness and economy of the selected projects.
The audited period covered the years 2001 and 2002 as well as preceding years and part of the year 2003 in case of relevant connections.
The audited bodies were the Ministry of Agriculture, the Forest Management Institute, the State Phytosanitary Administration, the Research Institute of Agricultural Economics, the State Veterinary Administration, the Research Institute of Meliorations and Soil Protection, the Research Institute of Animal Production, the Institute for the State Control of Veterinary Biologicals and Medicaments, the State Agriculture and Food Inspection Authority, the Central Institute for Supervising and Testing in Agriculture.
During the realisation of the National Programme the concrete activities necessary for its fulfilment were not specified in some cases. The requirements were overestimated and the specified funds were then also used for purposes that were not directly connected with the programme.
During the years 2001 and 2002 the Ministry did not issue any internal regulation for the National Programme indicators, which would specify:
- The concrete expenses which should have been earmarked for the National Programme or which could be included in the expenses for the National Programme,
- The methodology of monitoring expenses for the National Programme,
- The instructions for the realisation of the National Programme (in some cases Ministry did not even entrust the relevant state organisational units or contributory organisations with concrete tasks in the framework of the National Programme).
That was the main reason that the subordinated state organisational units and contributory organisations under the competence of the Department of Agriculture even financed routine activities from the funds of the National Programme that apparently were not connected with the Czech Republic’s entry to the EU.
Thus the specific partial indicator of the State Budget, „Expenses for the Realisation of the National Programme of the Preparation of the Czech Republic for Membership in the EU“, did not fulfil its function.
Though the Ministry invested an amount of 123,026,250 CZK to the IACS project which was supposed to be completed by 31 December 2002 and then, after a mutual agreement, by 31 May 2003, the system was not even verified and globally implemented by the completion of the SAO audit (September 2003).
Since 2003 the National Programme has stopped being a monitored indicator of the State Budget and unfinished tasks are fulfilled in the framework of the regular activities in the Department of Agriculture.