The Ministry of Finance deferred claims
Press Release – February 13, 2008
The auditors from the Supreme Audit Office (SAO) aimed at management of the Ministry of Finance with repayable grants-in-aid provided from the state budget chapter General Cash Administration and from the state financial assets. The administration of the claims ensued from the grants-in-aid and government loans were also audited.
The budgetary rules placed the duty to book the provided grants-in-aid on the Ministry of Finance already in 2004. From 2004 till the end of June 2007, the ministry provided repayable grants-in-aid for 8 payees that reached over CZK 465 million. By the end of the period, claims worth over CZK 14 million had been managed. Contrary to the accountancy law and the law of budgetary rules, the Ministry of Finance misrepresented the grants-in-aid and the established debts as the books did not include authentic administration records and presented inaccurate financial data.
“For example, auditors found out that a chief executive had approved three grant decrees without authorization of the minister or the vice-minister. Two decrees did not include time limitation for the object in view as required by the law of budgetary rules,“ said František Dohnal, president of the SAO.
The ministry did not account for active debts worth CZK 195 million, neither put in claims for some assets to ensure on the return of the money. The ministry did not submit the documents that would declare that three of the audited cases had been settled; the documents should include information about the usage of the granted money as the law imposes on the grant recipients.
The auditing operation was included into the 2007 Audit Plan of the SAO under No. 07/15. Eliška Kadaňová controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office