During the audit on the activities of Jelgava municipal agencies, the State Audit Office (hereinafter – SAO) found unjustified expenditure in the amount of over 50 thousand lats – 43 thousand lats by Agency ‘Pilsetsaimnieciba’ and 8 thousand lats by Agency ‘Kultura’.
Agency ‘Pilsetsaimnieciba’ have used 36 thousand lats for remuneration and mandatory state social insurance contributions for the period during which employees did not fulfil their main job responsibilities but participated in the project ‘Promoting Municipal and Private Partnership in Jelgava City Road Maintenance’ instead for which they were remunerated from the project budget. Agency ‘Pilsetsaimnieciba’ have used over 3.5 thousand lats to pay for roads repairs which, according to the agreement, should have been done by the private company at its own expense. There is also a risk that the agency has used almost 3 thousand lats by purchasing snow melting services without completely unfounded reason from the private company which was contracted for snow removal services in Jelgava.
In addition to that the SAO has found that agency ‘Kultura’ have used 8 thousand lats to remunerate PR Specialist for services supplied under the company agreement without ensuring work performance quantity and quality control. The agency also paid for the fuel used by employees during vacation and holidays in the amount of 460 lats.
By laying down the competence of agency ‘Zemgale INFO’ Jelgava City Municipality failed to establish the mandatory connection of advertising service with the content of municipal sphere and fulfilment of autonomous functions thus causing a risk of agency’s engagement in business relations.
During the audit SAO issued recommendations to Jelgava City Municipality which, if implemented, would ensure assessment of effectiveness of institutional system of the municipality and activity of agencies and establish supervision and control procedures for agency activities to prevent unjustified use of funds in the future.
Audit ‘Efficiency, Economy and Compliance with Laws and Regulations of Activity of Agencies Founded by Jelgava City Municipality to Ensure Fulfilment of Autonomous Functions of Municipality’ was conducted regarding the period from January 1, 2009 to June 30, 2011.