Filenews 17 June 2025 - by Vasos Vasiliou
It is open to the possibility that computer equipment in the public sector will make wings, given that the Registry of Movable Property is not informed about the purchases of computer equipment related to IT projects.
In an Audit carried out by the Audit Service at the Deputy Ministry of Research, Innovation and Digital Policy, especially in the part concerning the Register of Computer Equipment of IT Projects, it is recorded that:
"According to Regulation no. 5 of the Government Warehouses, stocks of a capital nature are registered in appropriate registers. Also, according to relevant Circulars of the General Accounting Office, the Competent Officer, before proceeding with the establishment of expenditure, must check, among other things, the registration of the goods in the relevant Fixed Asset Registers that must be kept. We found that the Movable Property Registry was not up to date with the purchases of computer equipment related to IT projects".
The Report states that "An. The Deputy Director of the Deputy Ministry informed the Audit Service that relevant instructions have been given and within the year 2025 all necessary actions will be taken, so that the equipment acquired through Contracts is registered in appropriate Movable Property Registers that will be reconciled with the existing equipment on a regular basis".
From the above, it follows that state property is exposed and unprotected and its preservation is left to the conscientiousness of the employees who handle it.
Another problem identified concerns that grants are paid to various organisations without an internal control mechanism that could prevent possible mismanagement. It is noted that according to the Circular of the General Accounting Office, legal and natural persons who receive sponsorship over €500,000 are obliged to submit a declaration for the implementation of the procedures and the effective operation of the internal control system.
In particular, with regard to the Innovation Research Foundation (RIF), it appears that approximately €21 million was allocated without any internal control. Specifically, the following are mentioned:
"According to a note from the Competent Officer, date. 25.9.2023, to the Director General of the Deputy Ministry, in relation to the payment of the first three instalments of the grant to the RIF for 2023, amounting to €15.7 million, (even though the RIF had not established and implemented an internal control system), had proceeded to specific actions in this direction. Therefore, he recommended the payment of the sponsorship and monitoring of the issue before the payment of the fourth instalment. As we found, the fourth and last instalment of the sponsorship for 2023, amounting to €5,232,010, was paid without the relevant note, date. 1.12.2023, any reference should be made to the actions of the RIF for the creation of an internal control mechanism".
The most important findings that emerged from the audit on a sample of receipts and payments of the Deputy Ministry for the year 2023 are summarised below:
Administration-Sponsorship Payment
-The fourth instalment of the state grant to the Foundation for Research and Innovation (RIF) of €5,232,010 was paid by the Deputy Ministry without any indication of an audit regarding the creation of an internal control mechanism by the RIF.
–A grant of €3,546,000 was paid to the Institute of Neurology and Genetics without audit for compliance with the conditions set by the Ministry of Finance, in relation to the reserves of the Research and Education Fund maintained by the Institute.
Department of Information Technology Services (TYP)
-The letters of authorization for the recommendation of expenditure are not in accordance with the provisions of the relevant Circular of the General Accounting Office, as these are general and do not specify specific expenses.
-A Register of computer equipment relating to IT projects is not kept.
-Significant delays were observed in the establishment, authorization and finalization of the payment of a number of invoices.
-With regard to Contract C2023/11 for the provision of services for the Digital Audio Recording (DAR) project for the Judicial Service, an unjustified use of the negotiation process without prior publication was observed.
General Conclusion
Weaknesses in the control of expenditure and lack of full compliance with the legislative framework governing their handling were identified.
