Management of budgetary institutions lacks the touch of ownership
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The National Audit Office of Lithuania evaluated the management of buildings and premises by budgetary institutions. At the end of 2007 their residual value amounted to LTL 4.9 billion. The Auditor General Ms Rasa Budgergytė reminded that one and a half years ago the Seimas recommended the Government to appoint institutions responsible for formation and implementation of the management policy of the State-owned assets; however, the Government did not implement neither this, nor the other recommendations to more efficiently manage the State-owned assets. According to Ms Budbergytė, budgetary institutions which |
manage State-owned premises
should immediately analyse terms of lease agreements for such premises
and initiate breaking of agreements disadvantageous to the State or
change of their terms.
A fair number of budgetary institutions use premises assigned to them
not for their own purposes; instead, they lease them. In recent years,
income from the lease amounted to over LTL 20 million; this money they
could use for their own needs. It was identified that lease agreements
often include terms disadvantageous to the State. Premises are leased
for several times lower than the market price; agreements do not provide
for terms of lease recalculation and advance cancellation of the
agreement in cases when the premises are needed by public institutions.
A large part of the audited institutions have signed a long-term lease
of their premises; they do not intend to use them for their own needs in
the future either. This fact shows that these assets are not necessary
for implementation of the State functions.
Budgetary institutions are entitled to devolve premises on loan for use
basis to charity and support organizations, associations, political
parties, public entities which carry out activities beneficial to the
public. However, most institutions which gratuitously received premises
do not publicly inform about their activities beneficial to the public.
Many of such premises are located in the prestigious parts of Vilnius
and Kaunas.
Full report is available in Lithuanian:
Provision with administrative premises and the use of premises managed on trust of public institutions, entities, and organizations