Allowance organisations of Ministry of Health and their management with the state property
Press Release – September 21, 2010
From November 2009 to May 2010, auditors from the Supreme Audit Office were performing audit No. 09/25 and aimed at the long-term tangible state property, which had been managed by selected allowance organisations founded by Ministry of Health within the period from 2007 to 2008. Insufficiencies were found within the accounts, inventory of property and liabilities, acquisitions and disposals.
The audit aimed at the established procedure rules for management of the state property and internal audit activities. During the audited period, the Institute for Clinical and Experimental Medicine failed to perform internal auditing operations that would aim at the long-term tangible property management.
President of the SAO concluded: “As for property accountings, the Institute for Clinical and Experimental Medicine, the Institute of Haematology and Blood Transfusion, and the Institute for the Care of Mother and Child failed to follow the Accountancy Act during the audited period. At the same time, the Institute for Clinical and Experimental Medicine and the Institute for the Care of Mother and Child failed to take inventory of assets and accounts payable“, said president of the SAO František Dohnal.
According to the audit conclusion, the Institute for Clinical and Experimental Medicine (IKEM) violated the Accountancy Act as the IKEM was not able to give proof of documenting assets worth over CZK 68 million in 2007 and assets amounting over CZK 119 million in 2008. In 2007 and 2008, the IKEM kept accounts of assets that were not in the IKEM’s possessions and failed to keep accounts of lands. The IKEM notified the auditors of corrective measures that had been implemented within the land accountancy minutes since 2009.
Auditors also scrutinized the utilisation of lands. “According to an agreement, a private company has rented lands from the IKEM for 90 years. On the rented lands, housing estates have been built by a third party. The utilisation of lands does not correspond to the objectives defined in the foundation charter of the audited body. Nor they respect the state property management principles that are specified by the State Property Act. It is obvious that such a state will last and the lands are not going to be used for the purpose, which was stipulated by the foundation charter“, said Dohnal.
The auditing operation was included into 2009 Audit Plan of the SAO. Marie Hošková, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
Mgr. Bc. Radka Burketová
Press Speaker
Supreme Audit Office