The SAO prised that records of demands on the social security insurance improved
Press Release – January 13, 2009
Social security insurance payments represent the largest resource of the state budget and made 35.8 % of the total state budget revenues in 2007. The auditors from the Supreme Audit Office (SAO) performed an audit that focused on proceedings of the Czech Social Security Administration (CSSA) when writing off demands on the social security insurance and recording the amortized arrears in 2006 and 2007.
The CSSA has shown a decreasing trend in amounts of the demands on the social security insurance payments since 2004. From 2005 till the end of 2007, the claims decreased by 7.5 % reaching beyond CZK 57 milliard.
By means of administrative actions, processes, and bankruptcy proceedings, the CSSA recovered more than CZK 4 milliard in 2006 and over CZK 4.5 milliard in 2007. Claims amounting over CZK 317 million were discharged through competitive examinations in 2006, while in 2007 it was more than CZK 337 million. With a view to demands on the social security insurance, the insolvency proceedings did not prove to be quite effective because of the bankrupts’ poorness. In the auditing operation No. 04/30, the auditors criticised that it lasted too long before the arrears statements could be made out; as for now, the periods have significantly shortened.
“The claim proceedings did not go along with insufficiencies or subsequent defaults in ruling executions of the district social security administration offices in Brno-Country, České Budějovice, Jihlava, Liberec, Olomouc, Pardubice, and Prague-East, which were picked for this auditing operation“, said František Dohnal, president of the SAO.
As revealed from the calculation process at the audited social security administration offices, there were no records of the penalty payment claims with 77 payers sampled for analysis, which amounted CZK 18.4 million by the end of 2007. By the end of 2007, the stock-taking lists of demands on the social security insurance payments from organizations and sole proprietors did not include unpaid demands, which bulked up to over CZK 5.4 milliard.
The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/04. Antonín Macháček, Member of the SAO Board, controlled the operation and drew up the audit report as well.
Radka Burketová
Press Speaker
Supreme Audit Office