Implementation of the grant-in-aid programmes for families with children ‘ineffective’
Press Release – September 7, 2008
Auditors from the Supreme Audit Office (SAO) performed an audit focused on implementation of the grant-in-aid programmes for families with children. The Ministry of Labour and Social Affairs (MoLSA) granted over CZK 74 million in 2006 and almost CZK 76 million in 2007.
From 2006 to 2008, the prime areas of the grants were gradually modified and the main emphasis subsequently targeted on providing the foster care and the aid for those leaving children’s homes. But the ministry did not give reasons for such a shift or submit an assessment of the financial resources’ utilisation within the context of the service level.
“The ministry produced no evidence of issuing decrees, which would include the conditions applicable for the utilisation of amounts granted to 105 grant recipients in 2006. Accounts kept by the ministry give unclear notice of the utilised financial resources drawn for support of families from 2006 to 2007 thus confusing the state budget chapter closing accounts in 2006 and 2007. The ministry did not apply sanctions on the non-profit non-governmental organizations, which had not handed in annual reports or submitted to audits on financial statements“, said František Dohnal, president of the SAO, and gave the following example:
The ministry acted in contradiction with standard proceedings when granting aid to the Fund for Children in Need (FOD) in the amount of CZK 15 million. The application was not presented to the MoLSA till November 2006, but according to the data in the form, the grant was assigned by the statutory body already in June 2006. Before the ministry obtained the request, two exceptions to the rule had been made and CZK 5 million had been granted. Just one day after the application had been presented, the ministry granted CZK 15 million, but changed the project title. The ministry cannot find the original decree or prove that the documents were delivered over to the Fund. The Fund has not accounted for the grant-in-aid as the ministry did not require such accounts. The ministry also failed to exercise control of the subsidies’ disposing.
The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/34. Rudolf Němeček, Member of the SAO Board, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office