Auditing operation No. 04/32
Non-investment subsidies contributed to the non-state subjects rendering social services
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2004 under No. 04/32. The auditing operation was managed and the audit conclusion drawn up by Mr. Jan Holeček, the Member of the SAO.
The aim of the audit was to examine the provision, the drawing and the usage of the non-investment State Budget subsidies contributed to the civic societies and humanitarian organisations.
The audited period covered the years 2002 and 2003 as well as previous or following periods in certain cases of relevant connections.
The audited bodies were the Ministry of Labour and Social Affairs (hereinafter referred to as “MLSA”) and the selected civic societies and organisations.
The audit ascertained that some deficiencies, already found out by the similar SAO audit (No. 00/02), were not eliminated, for instance:
- The MLSA did not secured the bindingness of the Procedures for the years 2002 and 2003, as it had not done it in the years 1998 and 1999 in case of that time issued Procedures of the MLSA for the provisioning of the State Budget subsidies;
- There lasted the uneconomy in the subsidies provisioning;
- There lasted the insufficient specification not only of the non-investment costs of the projects but also of the subsidies – in the Procedures for the year 2003 it was not divided even to the entries of the labour costs and the entries of the running cost;
- There was repeatedly find out that there was not properly discharged the coordination of the State Budget subsidies provision, even within one department (e.g. the MLSA State Budget chapter).
- As well as in previous years, the MLSA did not set the duty for the beneficiary to present namely in the form for the subsidy statement of costs or in the final report other contributors of the funds for the project (in particular the Labour Offices).
- As well as in the years 1998 and 1999 (when there were concluded the amendments to the contracts legalizing the usage of the subsidy in full extent), there were published in the December 2002 and 2003 the new Procedures for the same purpose.
- In the years 1998 and 1999 there was proved the subsidies drawing in contradiction to the set purposes and conditions in total amount CZK 2,275 thousand. In the years 2002 and 2003 there was proved the subsidies drawing in contradiction to the set purposes and conditions in total amount CZK 3,565 thousand minimally.
The SAO audit proved serious deficiencies in the MLSA control activities. In the years 2002 to 2004 the MLSA carried out 30 controls at 3,446 supported projects. 20 out of 30 control operations were not finalized by the control protocol. Thus there were not fulfilled legal conditions of the state funds control, as well as there was disregarded the preventive function of the control.