Management of the State Budget funds, which were expended by the Ministry of Culture on the 2002 flood damages repair
Auditing operation No. 05/07
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2005 under No. 05/07. The auditing operation was managed and the audit conclusion drawn up by Mrs. Zdeňka Profeldová, the Member of the SAO.
The aim of the audit was to examine the management of the state budget funds spent on the repairs performed on the 2002 flood damages to properties of state and regional cultural institutions.
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 entities were the Ministry of Culture (hereinafter referred to as “MC”), the National Gallery, the National Library, the National Museum, the National Institute for the Protection and Conservation of Monuments and Sites, the National Technical Museum, the Terezin Memorial, City of Prague, the South Bohemian region, the Usti Region, Statutory City České Budějovice, the theatre Divadlo v Dlouhé, the City of Prague Gallery, the South Bohemian Scientific Library, the hospital Nemocnice Na Františku.
The MC followed non-always consistently the Budgetary Rules Act No. 218/2000 Coll. or Decree No. 40/2001 Coll., on the Participation of the State Budget in the Financing of the Property Reproduction Programme, when it poured resources into 2002 flood damages repair and it permitted that beneficiaries paid advances to delivers out of keeping approved programmes.
The MC permitted that some beneficiaries broadened intended purpose of subsidies received for the 2002 flood damages repair, when they used given resources not only for renewal of these monuments, which were damaged by flood, but also for reconstruction of those monuments, which were not directly affected by flood. The audit ascertained that financial resources in total amount of CZK 3,206,938 were spent for a roof repair, new temporary roofing, and a sundial repair.
The MC failed to input the valid data on special-purpose grants from the state budget in the amount of CZK 115,000,000 and on their recipients into the relevant information system. As a result, the database of this system had an impaired referring value on funds, which were distributed by the MC in form of special-purpose grants for the 2002 flood damages repair.
Beneficiaries failed in ascertained cases to adhere Act No. 218/2000 Coll., on the Budgetary Rules and the Amendment of Certain Related Regulations, Act No. 199/1994 Coll., on the Public Procurement, Act No. 563/1991 Coll., on Accounting, and Decree No. 40/2001 Coll., on the Participation of the State Budget in the Financing of the Property Reproduction Programme
- they spent the state budget funds in amount of CZK 2,094,354 in conflict with determined purpose, in doing so, they violated a budgetary discipline as it was defined by the Act No. 218/2000 Coll.;
- they uneconomically spent the state budget funds in the amount of CZK 7,169,189;
- they did not observe the Act on public procurement tendering contracts in amount of CZK 5,899,987;
- they infringed the Act on Accountancy by the wrong booking of transactions in total amount of CZK 3,224,648.