In its report for 2022, EY finds weaknesses in the Ministry of Health in terms of full compliance [..] regarding the implementation of the budget.
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Weaknesses of compliance in the implementation of the budget, non-observance of security rules regarding the storage of ammunition, issues with the attendance of hourly staff and problematic canteen operations, the Audit Service for the Ministry of Defense finds, among other things.
In its report for 2022, it identifies weaknesses in terms of full compliance with the provisions/provisions of the relevant Laws/Regulations, circulars and Standing Orders of the General Staff of the National Guard (GEEF,) regarding the implementation of the budget, the completion and destruction of controlled forms, storage of attractive materials, compliance with fire safety measures, operation – organization and accounting monitoring of canteen transactions, as well as in the regulation of matters related to hourly staff and the estimated time of administration of the officers of the Police.
Also found long-term delays in the promotion of the required actions for the conclusion of a contract with ATIK, for the provision of telecommunications services to the EF, as well as in the creation of asset registers for the new buildings of the Ministry of Health.
The findings concern both shortcomings and weaknesses in the implementation of the established procedures (faulty execution), which aim to ensure the orderly and normal operation of the Units, as well as the Ministry of Health and Welfare, as well as the incomplete planning of the procedures in question. In the first case, the responsibility and authority for the promotion of appropriate corrective actions are borne by the respective Unit Commanders and Heads – Department Directors of the Ministry of Internal Affairs and Communications and, in the second case, the Hierarchy of the Ministry of Internal Affairs and Communications and the Administration of the Ministry of Internal Affairs and Communications should be taken over.
For this purpose, the Audit Service reiterates its recommendation for the establishment of a reliable internal control system, which will ensure, on the one hand, compliance with the regulatory framework and existing procedures, and on the other, the implementation and monitoring of the Service's recommendations, within the framework of the principles of good administration.
Without ministerial authorization and information the implementation of the budget
According to the main findings of the financial audit, the expenses of Chapter 11.03 “National Guard”, amounting to €166.18 million, are presented in the budget as total expenditure and the corresponding explanatory memorandum, which constitutes an indicative distribution of the above total expenditure, is not submitted for approval in the House of Representatives. Therefore, any redistribution of credits during the implementation of the budget is done without any authorization from the Minister of Defense and the written notification of the Minister of Finance.
It is also noted that, as of 2019, the completion of the creation of Asset Registers for the new buildings of the Ministry of Health is pending, in violation of the relevant provisions of the Warehouse Regulations.
Also, it is reported that although the General Staff of the National Guard (GEEF) pointed out to the Ministry of Foreign Affairs in 2012 the need to conclude a contract with the Cyprus Telecommunications Authority (CTA), for the provision of telecommunications services to the EF, and the Council of Ministers (SC) issued a relevant Decision since 2017, there has been no substantial development so far. The amount of said services amounted to €3.12 million in 2022 and the results of the audit demonstrated possible indirect state aid to the ATHIK.
The Audit Service, on the basis of relevant audit findings, expressed the opinion that the payment of an additional amount to Non-Commissioned Officers (NCOs) upon their retirement is not legal.
He also noted that an increased special monthly allowance was erroneously paid to a newly promoted SYP, as the accounting department of the Ministry of Finance did not take into account a relevant circular of the Ministry of Finance in time, resulting in an overpayment and later recovery, with a delay.
Non-observance of security rules in ammunition depots
Among the most important findings of the compliance audit is that in the Unit's ammunition depots, the safety rules specified in the relevant Standing Order (Std) of the General Directorate of Defense were not observed, and concern both the stacking of ammunition within the depots and their marking with the appropriate signs , indicating the various risks involved.
Certain batches of hand grenades were deemed unsuitable by the EOEF and required to be returned to the supply body, however an EO Unit still kept a significant quantity of the ammunition in question on its premises, the which was finally removed after 39 days.
Also, a fire extinguisher located in a fire station near the Unit's ammunition stores, was marked with an expiration date in 2014, and has not been maintained since then. Fire extinguishers used to fireproof ammunition stores of two Units were locked inside the stores, rather than outside them, and in one case, the extinguishers did not have an expiration date. In two other warehouses (ammunition and food) there were no fire stations.
It is also noted that administrators correct errors, both in the general record register (EF 402) and in the warehouse records (EF24), using correction fluid or even using a blue pen, smudging the said forms. Cases were also found where material details were entered in pencil in said tabs.
Numerical errors were also found in the depot records (EF24), which however were not detected by the Administrators when preparing the comparative statements, which shows that they were not prepared with due care.
Five smoke grenades issued according to the warehouse card (ΕΕ24) of a specific Unit, they were not located in the corresponding warehouse card of the receiving Unit.
No tracked forms were located in the Unit, among which a significant number of supporting documents for receiving or granting supplies/materials (ΕΕ1 ).
Many violations in the canteen, not recording staff absences
From a surprise check in the canteen of the central offices of the Ministry of Health and Welfare, numerous violations of the relevant Standing Order (Standing Order), concerning the organization, operation and accounting system of the Recreation Centers (KPSM), as well as the sound practices of prudent financial management, were found .
In an audit at a specific Unit of the EF, it was found that the Attendance Sheet of the Hourly Government Personnel (OKP) was not kept, to be signed both when coming in and when leaving work. Out of the total of nine hourly workers employed at the Unit, only three were present during the inspection. One was absent for a personal reason, without recording the time of his departure from work, and the remaining five were reported to be absent on a day's rest leave. It is noted that, upon the arrival of the Service at the camp, there was a total delay of half an hour until the control was allowed, which raises reasonable questions.
It is also noted that the PAD of the General Staff, refers to the calculated time of command of the officers of the General Staff that they are required to complete in their current rank, in order to be entitled to promotion to the next rank, includes, among other things, a number of positions that do not pertain to military departments and services of the Army and are therefore not covered by a corresponding Table of Organization and Material (POU), which is not consistent with the provisions of the current legislation. her husband (Officer of the Force), without the Ministry of Defense determining any criteria or qualifications required for the position in question and without notifying the staff of the Force, through the Chief of the Force, of his intention to fill the specific position, according to violation of the corresponding legislative provision.
The Ministry of Health and Welfare reported that the filling of the above position does not entail additional costs.
