NIK positively evaluated the way research institutes managed their property. They maintained financial liquidity and their economic standing enabled them to perform their statutory tasks. In the audited period, only five in 32 institutes did not make any profits on their business operations. 10 of the remaining ones made regular earnings with net profits exceeding even PLN 1 million. NIK underlines, though, that only 50 percent of institutes generate profits on their statutory activity, that is intellectual property management. In no case did the proceeds from the sale of rights to inventions or granting licences to use them exceed 4 percent of the total revenue.
Research institutes
24 institutes making money on business activity did not pay income tax. It was possible because until October 2010 their activity (not only the core activity related to research and development works) was subject to tax exemption. Although the practice of leasing premises was of permanent nature and the tax authority considered that business activity, only six institutes paid due tax. 19 institutions took advantage of the tax exemption[1]. 5 of them [2] did not even isolate their business activity in financial or accounting terms from the core research and development activity. Consequentially, they did not declare any related income.
NIK also points out that in case of 75 percent of institutes which earned on rent or lease of real estates the statutes did not provide for such use of property. In 13 institutes cases of sale or lease of property with the breach of procedures were identified. Most frequently the issue was the lack of valuation or consent of the Minister of Treasury to manage property worth more than EUR 50 thousand. It happened sometimes that a real property was rented without a tender which according to NIK was a potentially corruption-prone behaviour.
In four[3] institutes the auditors discovered irregularities in awarding procurements for the purchase of research equipment. They were related e.g. to the fact that some agreements lacked material provisions or that there were no statements of Tender Committee members excluding conflict of interests. It also happened that decisions were taken by a single person where at least 2 persons should be involved in the decision-making process.
NIK also has serious reservations about the way institutes discharged their obligations of real property owner or administrator. As many as 20 of 32 audited institutes failed to carry out periodical technical check-ups of facilities on time and in the required scope. At the same time, more than a half institutes incurred additional costs due to untimely payment of their liabilities and nearly one third pursued payment of their amounts due (e.g. rents) improperly or ineffectively.
[1] e.g. Institute of Innovative Technologies EMAG in Katowice, Leather Industry Institute in Łódź, Industrial Chemistry Research Institute in Warsaw.
[2] e.g. Metal Forming Institute in Poznań, Wood Technology Institute in Poznań, Rail Vehicles Institute “TABOR” in Poznań.
[3]e.g. Polish Welding Centre of Excellence in Gliwice, Institute of Precision Mechanics in Warsaw, Institute of Natural Fibres and Medicinal Plants in Poznań.
