NIK has looked into the organisation and financing of border crossings on the Lublin section of the state border with Ukraine and Belarus. The Lublin Executive Board for Maintenance of Border Crossings, managing border crossings on behalf of the governor, was obliged to provide the border services free of charge with facilities, equipment, technical and control devices and to keep them in a good condition.
In the period 2011-2013, the Executive Board provided the Customs Service (CS) and the Border Guard (BG) with proper conditions for efficient functioning of 10 border crossings. Its investments in the border services totalled PLN 222 million, including funds from the state budget (90%) and the EU funds (10%). The investments were mainly related to the construction or expansion of border crossings and erection of new facilities for border services. The demand for equipment was met only to a small extent: the Lublin Executive Board satisfied only 37% of orders placed by the Customs Service, including the control equipment and technical devices. The reason was limited budget funds earmarked for that purpose.
Despite the fact that the Customs Service had its needs satisfied to a small extent only, the border crossings operated efficiently. It was possible thanks to the Ministry of Finance and the Customs Chamber which financed the control equipment in 96%. NIK points out that the use of control equipment by the Customs Service brought the total of PLN 79 million financial benefits to the state budget. Interestingly enough, proceeds from the controls conducted using the CS’ own equipment were over 9 times higher than benefits from the controls where the equipment was provided by the governor.
According to NIK, the low satisfaction of the Customs Service’s needs may make the control at border crossings less effective in the future. Higher effectiveness of control may be ensured when the border services buy portable devices and control equipment from their own funds, leaving out the governor’s services.
This situation also implies the need to change the law in a way enabling the transfer of some of the governor’s duties to the border control services. The point is first of all to provide the services with specialist technical devices and portable control equipment. That would make the public spending more effective at the stage of purchasing equipment and devices. That would also help achieve higher effectiveness of the border control. Besides, when the border services take over these tasks, the purchasing procedure will be more efficient and the services will make sure that the parameters of the equipment and technical devices meet their expectations. That will be possible after eliminating - with purchases of this type - the intermediary link which now is the Executive Board for Maintenance of Border Crossings.
As a result of implementing changes proposed by NIK, the State Treasury will obtain PLN 3-5 million financial benefits from the Customs Service per year, from Lublin Province only.
NIK is of the opinion that the Customs Service should be given more funds for the purchase of new control equipment and devices. The reason is that the equipment provided by the Executive Board is largely worn-out. In practice it means that large part of the equipment, including all x-ray devices designed to screen vehicles and luggage, is worn-out in almost 100%. It means that they may be no longer fit for use in the coming years.
As at 31 December 2013, the Lublin Executive Board for Maintenance of Border Crossings had under its management assets of which the initial value was PLN 651 million. Those assets - used by 11 border crossings - gradually lose their value. The level of depreciation of assets used by the Border Guard was nearly 33%, whereas for the Customs Service it was as much as 83%. At the same time, in the Violence Prevention Section being part of the Customs Chamber, all the assets (mainly x-ray devices) were depreciated in whole. The Section could continue screening trucks in the car terminal in Koroszczyn (near the border with Belarus) only thanks to the Ministry of Finance which financed the entire purchase of new x-ray devices.
Another issue highlighted by the inspectors of NIK is the deficit of funds on part of the Executive Board for Maintenance of Border Crossings to repair or dispose of the control equipment of border services. As a consequence, the x-ray devices to screen trucks, which have not worked for 4-5 years and cannot be repaired anymore, remain in the vehicle terminal in Koroszczyn. That is why, the Executive Board’s budget should include the needs that have not been taken into account so far, e.g. related to the devices’ disposal. NIK has also noted that the Executive Board should make ongoing decisions to sell or dispose of the devices in case of which potential repairs do not pay off anymore.
Considering the need for maximum efficiency of border services’ work, the Supreme Audit Office, upon full approval of the Vice-Minister of Finance - Head of Customs Service, proposed a system change: to relieve the governor of the obligation to purchase and maintain the portable control equipment used by border services. NIK also submitted the relevant de lege ferenda proposal, concerning a change to the ordinance of the Council of Ministers on the governor’s responsibilities.
NIK has also moved for increasing funds for the purchase of new equipment and devices for the Customs Service to be used in border controls.
