SAO audited receivables under the administration of the Prison Service of the Czech Republic

Press Release – July 15, 2011

The aim of the audit was to scrutinize receivables managed by the Prison Service of the Czech Republic, which include receivables from prisoners and prisoners following release.

Based on the findings of the audit operation, there are substantial reserves in the effective management of the selected receivables. Audit No. 10/17 demonstrated the low level of effectiveness of receivables management in the case of the receivables of the Prison Service. At the end of 2009, the Prison Service reported receivables amounting CZK 1 milliard, of which 52 % were from prisoners and prisoners following release, with only 25 % of the receivables from prisoners and 2.8 % of the receivables from prisoners following release being enforced in the audited period. The low level of effectiveness in the management of receivables is documented, for example, by the fact that in the case of receivables amounting to CZK 18 milliard, the Prison Service undertook 1 173 separate activities to ascertain the debtors’ place of residence and assets to enforce the receivables, but were only successful at enforcing 2.5 % of such receivables.

The inadequacy of reimbursements of actual costs by convicted or the accused is another problem. The average monthly costs per prisoner amount to CZK 27 342 in 2009, whereas under valid legal regulations the convicted person is obliged to reimburse no more than CZK 1 500 per month of the costs of the sentence and the accused person a maximum of CZK 1 395. Actually received reimbursements of the costs of an imprisonment or other sentence amounted to only 1.8 % of actually expended costs in 2009. This enormous difference was mostly caused by the fact that a legally specified group of convicted persons are relieved of the obligation to reimburse the costs of a sentence and that not all convicted persons were assessed the maximum sentence costs.

The ability of the state to effectively collect state budget revenues is gaining in importance in connection with the ever increasing level of national debt. The effective collection of revenues should be based on such revenue management that ensures in particular the timely, due and transparent application of the rights of the state while concurrently fulfilling the cost adequacy requirement related to such management.

The auditing operation was performed from August 2010 to April 2011. The audited period was from 2004 to 2009; where relevant, the preceding period and the period until the completion of the auditing operation were also scrutinized. The audited body was the Prison Service of the Czech Republic. The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/17. Rudolf Němeček, Member of the SAO Board, managed the operation and prepared the audit conclusion as well.

Communication Department
Supreme Audit Office

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