Every three years, the Council of the NIK adopts audit priorities. In the 2009-2011 period, NIK audits are to verify whether the State operates efficiently and is friendly to its citizens, what the presence of Poland in the European Union is like and whether public assets are managed efficiently. Several dozens of audits carried out within the audit priority called Cost-efficient Governance of Public Assets are to assess whether public administration offices and public services work effectively, economically and efficiently and appropriately manage public resources.
State Budget and its revenue
Every year, NIK auditors verify how auditees and the government execute the state budget. The NIK positively assessed their activities in this respect in 2009. None of the audited offices was given a negative opinion. However, the NIK observed that the relation of the public debt to GDP increased dangerously and reached 49.8 percent (after the 50-percent level is exceeded, Poland will have to introduce a very restrictive cost-reduction programme). A positive economic growth at the time of the world economic crisis should be, undoubtedly, regarded a success of Poland.
State revenue is generated, among other things, from taxes paid by citizens. NIK auditors checked how tax offices deal with collecting Corporate Income Tax (CIT). Their audit reveals that tax offices have several problems with collection of tax arrears, which generates losses to the state budget.
Restructuring processes and privatisation
NIK audits reveal that there are numerous irregularities in privatisation and restructuring processes. The NIK checked, among other things, privatisation of health resorts. The Ministry of State Treasury gives health resorts to private owners much slower than it was expected. There are no consistent proceedings in this respect, for instance in the process of selecting companies to be privatised. NIK auditors also claim that the Minister of Health did not analyse the impact of privatisation of health resorts on access to services they provide, although it is required by the law.
The NIK negatively assessed the privatisation and restructuring processes in the printing sector. It estimates that there are huge losses in the sector, resulting from mismanagement. The condition of the audited entities form the sector is very poor, the majority of them have become ineffective and unprofitable.
Management of State Treasury assets
NIK auditors checked the functioning of regional radio broadcasting companies in 2006-2008. The results of the audit are far from optimistic. Reshuffles in supervisory boards cost the Polish Radio several millions of zloty, while new boards were appointed without appropriate qualification procedures.
The NIK also checked technical condition of 48 public medical centres. It turned out that over three-quarters of buildings are in very poor technical condition, which may pose a threat to patients. There are no necessary fire protection measures in these buildings and they are not adjusted to the needs of the disabled.
The above are only a brief illustration of the findings of NIK audits conducted within the Cost-efficient Governance of Public Assets priority. The results of NIK audits frequently point to improvements needed in the audited areas. The NIK describes mechanisms that do not operate as they should so that they could be improved and so that effectiveness could become a rule in the management of public resources.
