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Friday 19.10.2018 | Name days: Drosma, Drosmis, Elīna

State Audit Office: unjustified use of half a million lats on social security net fulfillment

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The State Audit Office (SAO) informs national and municipal authorities responsible for «Safety Net and Social Sector Reform Program» between the Republic of Latvia and the World Bank setting social security net measures fulfillment have spent 462 167.28 lats improperly, the institution concluded after conducting an audit.

SAO claims local authorities should arrange the social agencies internal control procedures in a way needy family status cannot be applied to families owning several real estate or means of transport, and whose income per person exceeds the level of income defined for a low-income family. SAO presents an example, when the status was applied to a family possessing nine means of transport, two of which were purchases in the needy family status and a family having six means of transport and four real estate. 73% of the mentioned families have been allotted improperly also GMI (Guaranteed minimum income) benefits at the extent of 116 371.75 lats. The status of a needy family also grants rights to receive incentives for real estate tax payment and receiving health care services and reimbursable medicines.

In order to ensure state social insurance special budget funds efficient use and sustainability, SAO also suggests the Ministry of Welfare reconsiders calculations of unemployment benefits for persons with the length of insurance period between one and (and including) 19 years. The initially calculated unemployment benefit of such persons amounts to 45 lats, which is to be paid by late 2011 without considering the mandatory state social contributions. This does not comply neither with the principle of equality, nor the Constitution, as persons with length of insurance period exceeding 20 years are paid unemployment benefits in correspondence to state social contributions,not guaranteeing the minimal fixed benefit of 45 lats. 342 088 lats was spent in unemployment benefits for the mentioned persons.

The audit also concluded the Ministry of Health does not have objective information on the number of people and terms, when planning funding of health services, local authorities social agencies do not compile information in issued health certificates.

The audit Actions of national and municipal authorities to ensure the fulfillment of the obligations under the Loan Agreement «Safety Net and Social Sector Reform Program» between the Republic of Latvia and the World Bank and the World Bank Program Document refers to the time period of 01.01.2010 up to 30.06.2010.


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