Auditing operation No. 04/29
The state support implemented by the form of anti-flood programmes for the revitalisation of the regions affected by the 2002 floods
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as “SAO”) for the year 2004 under No. 04/26. The auditing operation was managed and audit conclusion drawn up by Mr. Josef Pohl, the Member of the SAO.
The aim of the audit was to examine the management of the State Budget funds earmarked for the selected anti-flood programmes and to evaluate whether during their implementation the set conditions for programme financing were kept and whether there was effective and economical procedure.
The audited period covered the years 2002 to 2004.
The audited bodies were the Ministry of Agriculture (hereinafter referred to as “MA”), the Ministry of the Environment (hereinafter referred to as “ME”) and selected beneficiaries.
From the budget chapter 329 – the MA was released the amount CZK 3,526.4 million during the years 2002 to 2004. The audit detected following deficiencies in the activities of the MA, which:
- Did not consistently demand the legitimacy of the funds requested by the beneficiaries.
- Did evaluate the applications for the granting of the subsidies formally, not from the technical-economical point of view. There were financed the projects which had no connection to floods.
- Did not set the comparable technical-economical indicators of the anti-flood programmes for the evaluation of the successfulness of the particular projects as well as the whole programmes.
- Did not set the binding procedure for the evaluation of the construction work and supplies (cost formula) for the price evaluation of the particular programme indicators. When setting the prices the MA proceeded from the experience based on the similar subsidies implemented by the MA, not from the tried budget indicators ordinarily used during the preparatory documentation of the constructions.
The extent of damages was not sufficiently documented or proved at some audited projects.
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From the budget chapter 315 – the ME was released the amount CZK 140.22 million during the years 2002 to 2004. The audit detected following deficiencies in the activities of the ME, which
- Did not insist on the flood damages proper probing and supporting with evidence. Only the formal statement of the Regional Authority often proved the existence of damages and their direct relation to 2002 floods.
- The state assistance for the renewal of the regions affected by floods, for which the ME earmarked CZK 141 million within the programme 215 810, has not been nearly used.
The real usage of these funds CZK 2.2 million (e.g. approx. 1.6%) makes evident that the sewerage water treatment plants were not in higher extent affected by flood in the municipalities with up to 2,000 inhabitants.