Repeated inadequacies of the CAP payments
Press Release – December 4, 2008
From January to August 2008, auditors from the Supreme Audit Office (SAO) performed an audit of payments within the frame of the common market organisation. Among the audited bodies were the State Agricultural Intervention Fund and 32 selected grant recipients. In 2006 and 2007, the payments reached over CZK 585 million with the audited bodies. The SAO audited some 85 % of them.
During the audit, several administrational insufficiencies were revealed at the State Agricultural Intervention Fund. “In spite many grant applicants did not keep the terms, the Fund continued in the claims’ administration without pointing out to the inadequacies. Two grant recipients cut short the VAT with almost CZK 1.3 million“, said president of the SAO František Dohnal.
The auditors also revealed insufficiencies that had already been found during previous year’s audits No. 06/26 – Financial resources earmarked for the Common Agriculture Policy and No. 07/11 – Financial resources earmarked for the Common Agriculture Policy – direct payments. By the authority of the Ministry of Agriculture, the State Agricultural Intervention Fund was obliged to carry out regular financial settlements of the grants within the frame of the Common Agriculture Policy. However, such a settlement was not proposed.
“For example, auditors suggested in the audit report conclusion that the grant recipients were advised to follow the Act No. 235/2004 Coll. in case of the programme entitled School Milk Subvention. As for the grants for preliminary acknowledged fruit and vegetable producers, the method of the aid calculation should be enclosed in the statements so that the recipients could check over the data. The auditors also recommend so that the State Agricultural Intervention Fund perform regular “on-the-spot controls” of the fruit and vegetable producers and particular members of the producers’ associations“, said Dohnal.
The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/05. Jiří Kalivoda, Member of the SAO Board, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office