SAO audited the Programme for the Revitalisation of Former Military Areas
Press Release – July 27, 2011
The auditing operation focused on state budget funds provided for Programme for the Revitalisation of Former Military Areas for Public Use. At the Ministry of Regional Development, auditors scrutinized drawing of the funds, the administration system, the evaluation, and financial management of the Programme. At selected subsidy beneficiaries, the auditors scrutinized whether the regulations set by the Ministry for utilization and financial management of the subsidies and for the programme’s evaluation were abided by.
The audit conclusion states that the Ministry of Regional Development did not created such conditions that would allow for an objective final assessment of the Programme for the Revitalisation of Former Military Areas for Public Use. The reason for this was the fact that the Ministry set parameters in certain cases that were different from the documentation, as well as extended the deadlines for implementing non-updated parameters in the decisions on the provision of subsidies.
The auditors revealed shortcomings in the methodological, managerial and evaluation efforts of programme managers and subsidy providers. The programmes created by these groups frequently lack specific objectives and clear indicators, which is the reason for their inability to determine the benefits of subsidy programmes. To a great degree, subsidies are provided without a relationship to the goals and objectives of the programmes and without an assessment of the suitability and effectiveness of expended funds. The obligations of certain programme managers are thus fulfilled formally but not factually.
It is shown that in particular the non-observance of rules and procedures stipulated by the Act No. 137/2006 Sb., on public procurement, allows the contracts to be divided up purposefully or economic criteria to be suppressed. The economic use of the funds cannot be guaranteed. The setup and effectiveness of the control systems of certain programme managers were also found to be questionable. For example, two subsidy beneficiaries divided up below-threshold public contracts worth CZK 53 million during procurement procedures. Furthermore, the SAO discovered that two beneficiaries violated budgetary discipline by approx. CZK 14 million when utilising subsidies.
The auditing operation was performed from November 2010 to May 2011. The audited period was years 2009 and 2010; where relevant, the preceding period and the period until the completion of the auditing operation were also scrutinized. Among the audited bodies were Ministry of Regional Development and selected subsidy beneficiaries. The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/25. Marie Hošková, Member of the SAO Board, managed the operation and prepared the audit conclusion as well.
Communication Department
Supreme Audit Office