Management of the State Budget Funds Earmarked for Long-Term Property Acquisition under Responsibility of the Ministry of Labour and Social Affairs
Press release on completion of the auditing operation No. 05/38
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2005 under No. 05/38. The auditing operation was managed and the audit conclusion drawn up by Mr. Josef Pohl, the Member of the SAO.
The audit aim was to evaluate effectiveness and economy of the State Budget funds used for building development of the Labour Offices seats.
The audited period covered the years 2003 to 2006 (the first quarter). The audited bodies were the Ministry of Labour and Social Affairs (hereinafter referred to as “MLSA”) and six selected beneficiaries.
The MLSA had some system deficiencies in its procedures of office building development that subsequently influenced the whole process of preparation and implementation of the planned projects. Ministry namely failed to determine unambiguous starting parameters in the programme documentation including a qualified technical economic reasoning either final evaluation indicators. The programme documentation was not completed and finally approved by the end of the auditing operation despite the Ministry of Finance required this. Labour Offices wrong and unsatisfactorily ensured pre-designing and designing preparation of building development and they worked out insufficient investment projects. This fact, together with incorrect procedures of the MLSA, resulted into increase of expenditures and changes of binding technical-economic parameters of individual projects and their time scheduling. The audit also found out failures in public procurement and in fulfilment of conditions determined by the program administrator.