State property under the authority of the Administration of Military Housing Stock – Prague
Auditing operation No. 04/33
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. 04/33. The auditing operation was managed and the audit conclusion drawn up by Mr. Ladislav Zeman, the Member of the SAO.
The aim of the audit was to examine the management with the state property under the authority of The Administration of Military Housing Stock – Prague, allowance organisation.
The audited period covered the years 2002 to 2004 as well as previous periods in certain cases of relevant connections and the periods up to the conclusion of the audit.
The audited bodies were the Ministry of Defence and its allowance organisation The Administration of Military Housing Stock – Prague (hereinafter referred to as “AMHS”).
The audit of the state property management under the authority of the AMHS ascertained following deficiencies:
The Ministry of Defence did not specify in the Memorandum of Association the property under the authority of the AMHS when founding the AMHS (1 October 1994). The property was first transferred to the AMHS in January 1995.
The Ministry of Defence kept some transferred property in its bookkeeping also after transferring it. The value of this property (which the AMHS also kept in its bookkeeping) exceeded CZK 200 million.
The specification and the identification of transferred property were not complete. The realties were transferred which did not pass through the approval process, the land for which restitution claims have been made, and also a not own property. Due to those facts some land register offices refused to register the AMHS as the authorized administrator of this state property. Although the Ministry of Defence and the AMHS knew this situation they did not make sufficient effort to register this real estate property in total value approximately CZK 294 million into the land register.
The Ministry of Defence assigned 179 newly acquired flats to the professional soldiers and civilian employees for an undetermined period unless it secured their utilization for the intended purpose. By 31 January 2005 already 40 persons using those flats had left the defence department.
The AMHS did not proceed in accord with Act on Accountancy, particularly when keeping books on property and when inventorying the property and liabilities.