Ministry of Agriculture kept accounts contrary to law
Press Release – September 7, 2007
The audit performed by the Supreme Audit Office (SAO) aimed at expediency and economy of financing site adjustments accomplished by land offices. According to the law, state budget article entitled General Cash Administration should cover the costs of adjustments, but these expenses mismatch the article specifications.
Audited bodies were Ministry of Agriculture (MA) and State Agricultural Intervention Fund (SAIF). The audited interval ran from 2003 to 2006, regarding associated data from the previous and following periods.
Land offices followed the existing concepts of their activities only in 2004 when initiating the adequate number of site adjustments. Due to lack of state budget funding in 2005 and 2006, the previously planned numbers were not met. “In 2005 and 2006, asset transfers from the Land Funds of Czech Republic (LF CR) tried to compensate the lack of resources; rising to CZK 200 million in 2005 and to CZK 500 million in 2006. The grants for site adjustments, i. e. delimitations or reconstructions of parcels, were not put to use overall,” said František Dohnal, president of SAO.
The AOP finance for site adjustments, in the amount of CZK 1 556,5 million, as provided by law for the period from 2004 to 2006, will not be spent. The land offices advertised cost economies from project cutbacks with delay, therefore the money could not be used till the end of 2006. SAIF tolerated contraventions against the duty to announce any modifications to the projected costs.
“Ministry of Agriculture did not keep accounts of EU support for the agrarian operational programme (AOP) in 2005 and 2006. At the end of 2005, these assets footed up to CZK 154 million. That is why we claim that the Ministry’s book-keeping was incorrect,” said František Dohnal.
The auditing operation was included into the 2006 Annual Audit Plan of SAO under No. 06/34. Zdeňka Profeldová, Member of the SAO Board, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
CR – Supreme Audit Office