Financial management of GISF: Significant increase in staff expenditure, unspent money on investments, and weaknesses in budget planning

Press Release on audit No 20/27 – 26 July 2021


The SAO examined the financial management of the General Inspectorate of Security Forces (GISF) between 2017 and 2020. GISF expenditure amounted to almost CZK 448 million in 2020, an increase of more than 60% compared to estimates. A number of weaknesses were identified by the auditors. These concerned, for example, increases in staff expenditure due to increases in average salaries, non-spending of money intended for investments, weaknesses in budget planning or in the provision of accommodation free of charge for a period of several years. Nor did the internal control system function properly at GISF.

GISF is a separate armed security force, an organisational unit of the Czech state and a separate chapter of the state budget. It was created in 2012. Since 2017, its expenditure has increased significantly compared to previous years. In 2020, the expenditure increased to around CZK 448 million. This is an increase of over 60% compared to what was assumed when GISF was created. This increase was mainly due to staff expenditure. In fact, in 2017, GISF asked the government to increase the number of systemized posts and also had its salary appropriations increased several times in the years under review. In this way, GISF wanted to improve its competitiveness in the labour market, stabilise the number of employees, and it also wanted to be prepared for a larger workload.

Since 2017, GISF has been among the institutions with the highest average pay in the public sector. Yet, GISF has not filled the new systemized posts, nor has it increased the volume of its activities, nor has it prevented the high turnover of the corps. In 2020, GISF paid CZK 42 million on retirement compensations, which were 211% higher than in 2017. The total amount paid out will continue to have an impact on the GISF budget in subsequent years. Part of the money allocated to new jobs that could not be filled was allocated by GIBS into remuneration. As a result, the remuneration of current GISF members and employees increased by 102% in 2017 compared to 2016.

In the audited years, GISF failed to use up funds intended for investments in areas such as information technology, new vehicles, or real estate refurbishment. However, GISF itself requested an increase in investment money from the Government on the ground that it did not have sufficient technical equipment for its activities. However, it has used only 54% of the completed investment programme and only 18% of the other that will expire in 2022. GISF is not able to spend its money due to the fact that it does not have clearly defined material, time, and financial needs. Thus, it is not in a position to sufficiently prepare individual investment projects. For example, instead of the planned 60 official cars, only 28 were purchased and the unit price was higher by 49% higher than originally planned.

Errors were also found in the use of GISF properties. For example, as part of travel allowances for one of its employees, GISF had provided accommodation free of charge for 8 years since 2013 and subsequently extended the accommodation agreement until 2026. The auditors also found that GISF did not calculate non-tax and capital revenue and transferred unspent funds to items that it did not draw or did not even intend to draw. A public administrative check by the Ministry of Finance also highlighted similar weaknesses in 2018.

The internal control system of GISF did not function fully correctly as it did not detect these repeated weaknesses. In addition, remedial measures to correct errors have not proved to be sufficiently effective.

Communication Department
Supreme Audit Office

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