Ministry for Regional Development did not create a system for incidence and benefit evaluation of cross-border cooperation programmes

Press Release
June 21, 2007


The audit, performed by Supreme Audit Office (SAO), focused on management of financial resources used for cross-border cooperation programmes Phare CBC and Interreg IIIA. “Because of poor investor’s interest in close-border regions near Germany, EUR 5,8 million from the granted funds were not invested. The projects fulfilled given conditions as far as the third year of the Interreg IIIA programme period. Two thirds of the allocated money should be spent in the next two years,“ said František Dohnal, president of SAO.

The audited bodies were Ministry for Regional Development, Centre for Regional Development of the Czech Republic, and chosen grant recipients. As for the Phare CBC programme, auditors focused on period from 2000 to 2006 including associated data from the following time. In case of the Interreg IIIA, the audited period was from 2004 to 2006.

As Dohnal said, the programmes aimed a broad spectrum of projects. MfRD did not create a competent system for incidence and benefit evaluations. “MfRD, together with grant recipients, generally appreciated regional incidence of the programmes, but without a sufficient measurement. Auditors also identified insufficiencies within implementation of the Interreg IIIA programme. MfRD did not control activities, which they entrusted to other legal entities involved. Members of the committee that was choosing the projects were not detached from members of the committee that monitored realisation and evaluation of the programmes,“ said Dohnal.

The auditing operation was included in the Annual Audit Plan of SAO for the year 2006 under No. 06/30. Zdeňka Profeldová, Member of the Board, controlled the auditing operation and drew up the audit report as well.

Radka Burketová
Press Speaker
Supreme Audit Office

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