The SAO audited funds and assets under the management of regional public health authorities
Press Release – October 26, 2011
Auditors aimed at the state funds and property managed by selected regional hygienic stations and scrutinized activities of the Ministry of Health, which administers the state budget heading and controls Programme No. 235 010 – Development and Reconstruction of the Material and Technical Bases of the Management System of the Ministry of Health. Auditors revealed violations of the Accounting Act, Act on the State Property, the Public Procurement Act, and Act on Budgetary Regulations.
The auditing operation revealed inefficient use of assets. The Moravian-Silesian Regional Hygienic Station concluded an agreement on the lease of outside means of transport although it had its own means of transport at its disposal. It thus expended uneconomically almost CZK 376,000. Other shortcomings in the conclusion of lease agreements were discovered at six regional hygienic stations.
The auditing operation revealed shortcomings in stocktaking at the regional hygienic stations. For example, the Central Bohemian Regional Hygienic Station did not ascertain the current state of its assets and did not perform stocktaking of immovable assets valuated by an expert opinion at almost CZK 53 million and moveable assets with an accounting value of CZK 1.4 million. Nine out of the ten audited regional hygienic stations did not account for leased and borrowed assets in the off-balance sheet accounts and four regional hygienic stations did not monitor fine ledgers on the off-balance sheet accounts.
Two regional hygienic stations violated Act No. 137/2000 Sb., on public procurement, when failed to abide by the procedures defined by the law.
The auditing operation discovered that Pardubice Regional Hygienic Station had not call a tender for the purchase of automobiles worth CZK 500,000 in compliance with the rules of transparency and equality and non-discrimination, as it did not retain documentation, did not choose the lowest bid, and inquired after a specific model of vehicle. Olomouc Regional Hygienic Station had not conduct the selection of a supplier for the reconstruction of an immovable asset, a contract worth CZK 1.7 million, in a transparent manner.
Zlín Regional Hygienic Station violated the budgetary regulations when used CZK 495,000 provided from the state budget to cover the whole amount charged for a lift reconstruction in a building, in which the state possessed only one half.
Six regional hygienic stations violated Act No. 219/2000 Sb., on the property of the Czech Republic, when entered lease agreements without setting legal terms for usage of the rented property, omitted other data in the agreements, or even let the property without a written agreement.
The auditing operation was performed from January to June 2011. The audited period was years 2009 and 2010; where relevant, the preceding period and the period until the auditing operation’s completion were also scrutinized. The audited bodies were the Ministry of Health, Prague Hygienic Station, and ten regional hygienic stations: Vysočina, Southern Moravia, Liberec, Moravia-Silesia, Olomouc, Pardubice, Plzeň, Central Bohemia, and Zlín. The auditing operation was included into 2011 Audit Plan of the SAO under No. 11/01. Pavel Hrnčíř, Member of the SAO Board, managed the operation and prepared the audit conclusion as well.
Communication Department
Supreme Audit Office