Auditing operation No. 03/22
State property and funds under the competence of the State Agricultural Intervention Fund
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. 03/22. The auditing operation was managed and audit conclusion drawn up by Mr. Jiří Kalivoda, the Member of the SAO.
The aim of the audit was to examine the management of the State Agricultural Intervention Fund with the state property and the provided funds.
The audited period covered the years 2002 and 2003.
The audited body was State Agricultural Intervention Fund (hereinafter referred to as SAIF).
The audit of the SAIF identified deficiencies in the following areas in particular:
- State property management,
- System of the internal financial control,
- Public procurement,
- Paying Agency establishment expenses.
The audit has detected the infringements against the Act No. 563/1991 Coll. On accounting and Act No. 219/2000 Coll. on the property of the Czech Republic and its appearance in legal relations in the area of property registration, inventory and protection.
As regards the internal financial control system, the SAIF did not comply with some provisions of the Act No. 320/2001 Coll. on financial control in public administration.
In public procurement for hardware, software and building reconstruction the SAIF was in some cases in breach of the Act No. 199/1994 Coll., on public procurement.
The SAO audit of expenses and establishment of the Paying Agency included verification of the level of achievement of public targets towards which the State Budget resources were deployed. The declared target of setting up a functioning Paying Agency was not achieved by the determined deadline (31 December 2003) despite the fact that a considerable amount of resources (almost 43 millions CZK) was spent for that purpose.
At the time of completion of the SAO audit (as of 18 March 2004) the Paying Agency of the SAIF was still not a fully functioning accredited paying agency for the EU common agricultural policy in the Czech Republic.