It also requests faithful implementation of the regulations governing the operation of public schools, as well as compliance with opinions and suggestions of the Legal Service
In the recommendation to the Ministry of Education, Sports and Youth for the implementation of an effective and reliable internal control system, which to ensure compliance with the provisions of the legislation, regulations and circulars, the Audit Service of the Republic proceeded, after an audit it carried out.
In the Special Report on “Audit of the Ministry of Education, Sports and Youth” that was prepared, the Audit Service also recommends faithful application of the regulations governing the operation of public schools, as well as compliance with the opinions and suggestions of the Legal Service.
As it states based on the findings of the financial audit, as well as the compliance audit, there is insufficient compliance with the provisions of the relevant Laws and circulars of the General Accounting Office and the Ministry of Finance, which govern the granting of state grants and weaknesses and omissions in monitoring recovery of receivables.
Also, it identified weaknesses and omissions in terms of monitoring and timely settlement of withholding amounts from payments to construction contractors and non-compliance by the Ministry of Education and the University of Cyprus with the instructions and opinion of the Attorney General for the revision of Regulations and of the corresponding PC Rules, so that they become legal.
Based on its conclusions, the Audit Service reports that in accordance with article 80(1) of the Law on Fiscal Responsibility and the Fiscal Framework, each economic entity makes the necessary arrangements for the implementation and operation of an internal control system for the activities under his responsibility.
According to its report, the Audit Service finds that grants have been granted to School Ephorates (SE) and other Legal Entities of Public Law (NPDD), without observing the defined procedural framework, both with regard to the evaluation of the data submitted to the Ministry of Education, and by granting grants, given to organizations that have a reserve, including bank balances.
Recommends that the Ministry of Finance implements the provisions of the circulars of the General Accounting Office for the purposes of granting state grants, as well as the relevant circular of the Ministry of Finance, dated 8.2.2012, regarding the management of the grants, while finding that the Ministry of Education did not take any actions to ensure that the School Ephorates implement an efficient and effective internal control system, in accordance with the Accounting and Financial Management and Financial Control of the Republic of Law.
The Audit Service calls on the Ministry of Internal Affairs to take the necessary actions to comply with the provisions of the Law, regarding the implementation of effective internal control systems in the School Ephorates.
In addition, it observes that the Ministry of the Interior, in this specific case, did not follow the usual practice, which is applied for construction contracts, regarding the intended validity period of the Advance Payment and Faithful Performance Guarantees and did not proceed with the renewal of the relevant guarantees and states that has recommended that the Ministry of the Interior takes care of the timely renewal of the letters of guarantee, in accordance with the terms of the contracts.
It also finds that the Ministry of Internal Affairs did not submit to the General Accounting Office the statement of balances of departmental deposit accounts, the statement of balances of departmental accounts and advances and the statement of receivables, on December 31, 2021 and recommended that the Ministry of Internal Affairs prepare and check the said statements in a timely manner and adheres to the schedules set by the General Manager for their preparation and submission.
In addition, he observes that, for a number of years, amounts withheld from payments to contractors for construction projects continued to remain outstanding, while due to the accumulation of a large number of cases and a large total amount (€2,457,361 on 31.12.2020) and the passing of a large period of time from the completion of the projects, it becomes difficult to examine whether these should be returned to the contractors or transferred to the State's revenues.
It recommends that the Ministry of the Interior takes the appropriate actions to settle the outstanding amounts.
He points out, at the same time, that the Ministry of the Interior did not amend the Regulations on Excessive Positions in Special Categories at the Universities of Cyprus (C.D.P. 266/2009) which allow admission to public universities based on non-legal criteria, such as race origin of a candidate, despite the opinion of the Attorney General, dated 3.10.2017, for a complete review of them, since they are not legal partners, and also that the PC did not review Rule 1.6 of the Undergraduate Study Rules.
“We considered it important to highlight the different approach of the Government in respect to the opinions of the Attorney General. In the case of those admitted to public universities, the Government has an opinion in its hands that says the Regulations are unconstitutional and should promote their amendment, but chooses to ignore the Attorney General,” the Audit Service reports.
We remind you, he adds, that in contrast the General Accounting Office of the Republic, despite the express provision of the legislation that imposes the suspension of pensions when a former Minister or Member of Parliament assumes another office in the Republic, makes payments to retired Ministers who serve in other offices, citing an opinion of the Attorney General that the law is unconstitutional and that it should not be applied”.
Furthermore, it recommends that the University of Cyprus and the Ministry of the Interior make the necessary amendments to the relevant Rules and Regulations, respectively, as the relevant instructions of the Attorney General of the Republic.
