The SAO audited funds provided for support of agricultural activities in compliance with Act No. 252/1997 Sb., on agriculture
Press Release – August 8, 2011
The auditing operation aimed at financial support provided from national sources (i. e. from the state budget heading Ministry of Agriculture) for agricultural operations within years 2008–2010.
The audit conclusion states that:
- The Ministry neither recorded nor transferred data about paid out subsidies for the period 2007–2009 totalling CZK 1.2 milliard into the CEDR (Central Evidence of Subsidies) information system, thereby violating the provisions of the Act No. 218/2000 Sb., on budgetary rules.
- Within the audited period, the Ministry, with respect to certain subsidy programmes for the support of agricultural operations, failed to perform any audits in accordance with the Act No. 320/2001 Sb., on financial control.
- The Ministry failed to establish proper rules for providing the subsidies as some of the determined conditions did not meet the requirements set by the law effective within the audited period.
Agencies for agriculture and the countryside, which are part of the Ministry, failed to provide the information about the supplier’s address in their decrees. Among other findings were following shortcomings:
- Pardubice Agency for agriculture and the countryside failed to conduct preliminary audits of the subsidy application handed by the National stud Kladruby nad Labem for year 2009. As a consequence, the Ministry issued the decree on providing a subsidy, which was CZK 23,562 higher than appropriate.
- Brno Agency for agriculture and the countryside failed to prove in certain cases that the preliminary audits of subsidy applications had been conducted.
Auditors revealed violations of the Accounting Act, namely with the limited liability company AGROGEN, Troubsko, and the Czech Beekeeper Union, which failed to keep proper records of the subsidies in their accounts. The joint-stock company Krahulík–MASOZÁVOD, Krahulčí, submitted imperfect balance sheets and the National stud Kladruby nad Labem presented a deficient subsidy application.
The auditing operation was performed from October 2010 to April 2011. The audited period extended from 2008 to 2010; where relevant, the preceding period and the period until the auditing operation’s completion were also scrutinized. The audited bodies were Ministry of Agriculture and 14 selected subsidy recipients. The auditing operation was included into 2010 Audit Plan of the SAO under No. 10/21. Zdeňka Profeldová, Member of the SAO Board, managed the operation and prepared the audit conclusion as well.
Communication Department
Supreme Audit Office