Lack of efficient asset management in the Ministry of the Interior
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Having assessed the management of fixed assets worth LTL 390 million exercised by the Ministry of the Interior and its subsidiaries, the National Audit Office said that the management could have been more economic, as well as more rational. According to public auditors, the Ministry could save much more if all management issues of the fixed assets would be assigned to one body in the Ministry, which would exercixe a strict control over the way and purpose of their use. |
Over ten years ago Assets Management and Economy Department and
Transport Department - bodies established by the Ministry of the
Interior – had to be handed over issues of the management of all the
assets belonging to the Ministry and its 13 subsidiaries maintained from
funds allocated to the Ministry. However, some 40 per cent of the assets
are still managed by all the 13 bodies of the Ministry. In 2009 two
bodies, which had to manage the assets in a centralized way employed 176
staff, the maintenance of which was allocated LTL 5.1 million. Some 150
staff in the Ministry and its other subsidiaries partially work with
issues related to assets management. The NAOL says that concentration of
assets management in one body would reduce the management expenditure
and would allow to systematically solve assets management problems.
The NAOL critically assessed the management of the transport in the
Ministry‘s Transport Department. Already in 2005 the NAOL recommended to
the Ministry to reorganize the work of this body and its financing;
however, the recommendation was not implemented. The Transport
Department currently manages 181 vehicles, only 26 of which are
constantly used by the Ministry and its 13 subsidiaries; 111 vehicles
are used by Police bodies and Financial Crime Investigation Service,
which are allocated separate financing from the State Budget. The
Transport Department serves some vehicles belonging to the Police
Department; the service is financed with the Budget funds allocated to
the Ministry. The NAOL says that the Ministry has to stop this faulty
practice, since it does not allow to properly control the use of the
Ministry‘s service vehicles and funds allocated to their maintenance.
The NAOL pointed out that the Transport Department provides commercial
services: transportation of passengers and goods, maintenance, cleaning
of vehicles, etc. The NAOL says that such services are not
characteristic to public sector, therefore they should be stopped in due
time.
The NAOL issued recommendations to the Ministry of the Interior to
fundamentally reform organization of assets management of the Ministry
and its bodies. The Ministry of the Interior pledged to implement the
recommendation by the beginning of 2011.
Public audit report is available in Lithuanian:
Assets Management in the Ministry of the Interior and its Subsidiaries