Management of the State Budget Funds earmarked for housing construction programs
Press release on completion of the auditing operation No. 05/16
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. 05/16. The auditing operation was managed and the audit conclusion drawn up by Mr. Josef Pohl, Member of the SAO.
The aim of the audit was to examine effectiveness, economy and efficiency of implemented programs from the point of program objectives or the state housing policy view. The audited period covered the years 1998 to 2004 at the Ministry of Regional Development, the Ministry of Finance, and 26 selected beneficiaries.
At the Ministry of Regional Development, the audit was focused on managerial, methodological and control activities within implementation of the support programs for housing construction and its technical infrastructure. Auditors evaluated value of money spent for implementation of selected projects of support.
At the Ministry of Finance, they audited approval process of program documentation and following procedure of budget funds supply, which were earmarked for support of housing construction and technical infrastructure from the budget chapter of the Ministry of Regional Development.
At the beneficiaries, auditors examined drawing and using funds earmarked for selected housing construction programs. They also audited beneficiaries’ activities as program participants and direct investors of each individual project.
The auditing operation ascertained in financing and implementation of the housing construction and technical infrastructure programs a number of shortcomings:
- Financing of housing construction and technical infrastructure was implemented from 1998 till September 2004 unless it had approved program documentation. The Ministry for Regional Development provided for housing construction and technical infrastructure an amount of CZK 13,604 billion during this period unless the basic financial indicators and principles were laid down and approved by the Ministry of Finance.
- The Ministry of Finance permitted financing of housing construction and technical infrastructure despite the Ministry for Regional Development failed to fulfil even the basic conditions for the state Budget participation.
- Beneficiaries also showed a number of irregularities namely in failing to adhere the public contracts act and the requirements of program conditions.
The audit conclusion was approved on the 9th January 2006.
On the 21st April, the Regional Prosecutors’ Office in Ústí nad Labem expressed consent to publish it.