The use of the health insurance budget

10/15/2003 | 12:00 AM

Text size: [-A] [+A]

Language: EST | RUS | ENG


TALLINN, 15 October 2003 - The SAO audited the "Report on the collection and use of funds for public health insurance in 2002". On the basis of the audit the SAO notes that in the material part the use of budgetary means allocated to the Health Insurance Fund for 2002 was in conformity with the State Budget Act and the 2002 state budget.

However, the SAO made several observations concerning the more economical use of the health insurance budget. In seven cases in the course of structural changes in the Health Insurance Fund, employees were made redundant and redundancy payments in the amount of 8 months’ salary were paid for failing to observe the time limit for advance notification of dismissal. The SAO finds that health insurance money would have been used more economically, if the employees had been given advance notification of the redundancy as provided for by the Employment Contracts Act.

Auditing of the accounts revealed a number of irregularities. For instance, in several cases the procurement procedure had not been applied. Such cases included the purchase of the service of removal and destruction of confidential documents and other data media from Infokaitsesüsteemide OÜ in the amount of 104,700 kroons, the purchase of miscellaneous goods and services from Zoom AS in the amount of 413,400 kroons, including various booklets in the amount of 198,800 kroons, and the purchase of security guard services from Falck AS in the amount of 316,980 kroons. In a number of instances the tendering procedure without publication of tender notice was used. It should be noted that the use of procurement procedures is a method for getting the most favourable price.

Sven Soiver
Press Representative of State Audit Office
Telephone: (372) 640 0787
GSM: (372) 53 414464
E-mail: [email protected]

  • Posted: 10/15/2003 12:00 AM
  • Last Update: 10/2/2015 4:10 PM
  • Last Review: 10/2/2015 4:10 PM

More News