The SAO audited the state property under the management of the Ministry for Regional Development
Press Release – August 10, 2011
The auditing operation aimed at reviewing the management of fixed assets and funds that the Ministry of Regional Development is in charge of managing. Auditors scrutinized acquiring and disposing of state assets, and fulfilling the staple duties corresponding with the state assets management.
The audit conclusion states that the Ministry’s accounting failed to follow the Accounting Act in a correct and complete form during the audited period. The inventory of long-term assets taken by the end of 2009 was not carried out in accordance with the Accounting Act. The Ministry failed to take complete records of the long-term assets, which was put into the balance sheet by the end of 2009. The inventory omitted data, which would determine the assets unequivocally.
The SAO found serious shortcomings in the conclusion of certain lease agreements. For example, in the case of five agreements on the lease of non-residential premises where the annual lease amount amounted to CZK 3.7 million, the Ministry did not arrange the possibility to withdraw from the contractual relationships in case the tenants fail to fulfil their obligations duly on time or cease to fulfil the stipulated contractual terms and conditions.
Furthermore, in 2010, the Ministry reduced the monthly lease amount by more than CZK 300 000 without stating the reason for doing so, thereby reducing revenues from the leased property baselessly although the lessee owed more the CZK 4 million to the Ministry in the period concerned.
The auditing operation was performed from October 2010 to April 2011. The audited period extended from 2008 to 2009; where relevant, the data from the preceding period and the period before the auditing operation’s completion were also scrutinized. The audited body was the Ministry for Regional Development. The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/22. Antonín Macháček, Member of the SAO Board, managed the audit operation and prepared the audit conclusion as well.
Communication Department
Supreme Audit Office