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The State failed to control cultural support funds, and the Ministry neglected its duties

Bratislava, 27 September 2024 - In the past, the control system of financial management and supervision of accounting between public funds for promoting culture and the Ministry of Culture (MoC) of the Slovak Republic has fundamentally failed. At the same time, the Ministry did not sufficiently require the enforcement of its strategic priorities. "The Audit Office did not obtain assurance from the last audit that the fund institutions in the Ministry of Culture were able to verify and have verified to a reasonable extent the effectiveness of the public funds distributed and whether the recipients of the funds acted as they contractually committed to the fund," says Jaroslav Ivančo, deputy chairman of the national auditors.

In recent months, the Supreme Audit Office (SAO) of the Slovak Republic has been reviewing the activities and management of subsidy funds for promoting culture, arts and creative industries under the auspices of the Ministry of Culture. Over the entire existence of the funds, they have received EUR 386 million from the state budget, while in the audited years 2021 to 2023 the state contribution amounted to almost EUR 159 million. In deciding on the allocation of money from the funds for culture, the auditors found no severe breaches of decision-making procedures. The processes for launching calls and receiving applications were transparent, and the criteria for assessing calls had clear rules.

As the audit showed, the rules were broken, particularly in the payment of remuneration and compensation to members of expert committees in the Fund for the Promotion of the Arts and the Audiovisual Fund, as these were financed from the funds dedicated to support activities. 

The national authority for external audit has identified several areas that indicate significant risks in the financial management of the Audiovisual Fund. "The Fund may struggle to meet its obligations on time in the future if the rate of growth in liabilities continues without an adequate increase in financial resources, for example from the State. It may also face challenges in maintaining its ability to support new projects actively or to provide funding for existing projects that have gone through the approval and evaluation process," Mr Ivančo said.

The audit also highlighted the risk that the Ministry, despite declared changes in the functioning of the subsidy funds, did not make use of the proper legislative process, which includes an inter-ministerial comment procedure. Thus, most amendments to laws were hastily implemented through parliamentary proposals, not through the Ministry.

Read the full text of the press release about this issue in Slovak language.

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