Construction of the Masaryk University Campus audited by the SAO

Press Release – August 13, 2009

From November 2008 to April 2009, auditors from the Supreme Audit Office (SAO) performed an audit that aimed at funds spent by the Ministry of Education and the Masaryk University in Brno on the campus construction of the Masaryk University in Brno. Auditors concluded that there was no serious violation of regulations within the period from 2002 to 2008 as the audited bodies fulfilled their duties with accountability. The approved financial plan was found economical and was implemented thoroughly.

The Government of the Czech Republic approved the policy of the funding of the Masaryk University campus’ construction in 2002. The project’s realization has been funded from the state budget (including a credit allowed from the European Investment Bank), from financial resources of the city of Brno, and from the University’s budget.

“In 2007 – when the program was already being implemented for 5 years – the existing conditions were still making the Project’s implementation difficult and the investment goals could not be reached. In particular, the designated funds missed to cover the increased costs that arose in the process of the construction because of outside influence, among which the higher rate of VAT, exchange fluctuations, and acquisition costs’ rises. Because of the financial deficit, the extent of the Science Faculty had to be reduced. The Project’s implementation got extended in four years and the implementation schedule was delayed to the end of 2010 instead of the 2006”, said president of the SAO František Dohnal.

The presumed construction costs have increased by CZK 1.2 milliard, raising the total cost to some CZK 5 milliard, while the costs were initially expected to be over CZK 3.7 milliard. In 2008, the useful area of the planned campus was reduced by 10,617 square metres and the average area for one student was reduced by 3.1 from 6.8 square metres that were originally planned for one student in 2002. On December 31, 2008, some CZK 3.2 milliard was utilized for the campus construction, including more than CZK 2.6 milliard from the state budget resources.

The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/33. Antonín Macháček, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.

Bc. Radka Burketová
Press Speaker
Supreme Audit Office

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