16th May 2012

Bill on financial control discussed

Currently, Economic Committee and Budget Committee discuss a governmental proposal of a Bill on Financial Control (zákon o finanční kontrole). The government passed the Bill in March 2012. The Bill regulates financial control of public administration spending. The aim of the amendment is to improve an insufficient mechanism of control of financial means. The current system stipulates two different ways of control on the basis of the origin of financial means (i. e. national, EU and EEA financial means). The Bill unifies the mode of control; the Ministry of Finance should audit any financial means provided by the EU funds as well as the EEA funds. The amendment also introduces two-stage control. A specialized body should conduct controls of proper using of public financial means within each public authority; furthermore, an independent auditing authority should supervise efficiency of financial means spent.
The amendment reacts on the EU’s requirements toward the Czech Republic; passing the Bill is a condition of further EU money flow to the Czech Republic after 30 June. The EU claims inefficiency of the EU funds spending in the Czech Republic and possible malpractice during the grants of financial support (co-financing projects). Therefore, the Bill should apply to any operational programs of the EU cohesion and structural funds.

For further information regarding the Bill, click here.

Members of the American Chamber of Commerce in the Czech Republic