The SAO performed an audit of the Office of the President of the Czech Republic
Press Release – December 3, 2012
The Supreme Audit Office (SAO) scrutinized the state budget heading Office of the President of the Republic and focused on management of the immovable property worth CZK 1,500 million and subventions in the amount of CZK 230.5 million administered within the period 2007–2011. The auditors also scrutinized two allowance organisations, which had been established to manage the real property: Prague Castle Administration and Lány Forestry Administration. Auditors concluded that the allowance organisations made errors in pursuance of public procurements, in accounting records, and within property inventorying. In spite of the minor errors described in the audit report, the SAO concluded that the state budget funds had been utilised effectively and the expenses had been eligible. In addition, the audited subjects already tried to remedy some of the errors during the audit operation.
Both Prague Castle Administration and Lány Forestry Administration violated the Public Procurement Act when divided tenders into smaller orders. For example, Prague Castle Administration divided a tender involving reconstruction, connection, and back-up power supply of distribution points. Lány Forestry Administration opted for a similar method during one stage of reconstruction and revitalization of water reservoirs and during reconstruction of paths in the Lány Game Park.
During the audited period, Prague Castle Administration and Lány Forestry Administration also violated accounting principles when failed to record buildings and lands in the correct entries. For example, Prague Castle Administration over-evaluated the Long-term assets in progress entry by CZK 90 million in 2008 as they included three buildings, which had already been finished as the final inspections had taken place. These buildings should have been recorded in the Buildings, halls and structures entry.
The SAO revealed that the Office of the President had failed to perform public administration controls aimed at management of the immovable property and investments included into the property reproduction programmes. Partial errors were also revealed within administration of the property reproduction programmes.
For further details about the auditing operation No. 12/05 (in Czech only), see the following link: http://www.nku.cz/assets/media/informace-12-05.pdf (pdf 282 kB).
Communication Department
Supreme Audit Office