TALLINN, 22 April 2003 - When auditing the use of funds allocated in the state budget for recreational sport the SAO established that money, which should be spent only for the promotion of recreational sport, is used for top sport. This is allowed by the current Sport Act, which should be specified in terms of the definition of recreational sport.
Recreational sport should be aimed at increasing the number of people involved in amateur sport. The said Act defines recreational sport as non-competitive physical exercise, but throughout Estonia the aid for recreational sport is used also for top sport, including for holding Estonian championships in various sports. Furthermore, the funds for supporting recreational sport have been used for supporting a top sport team.
The non-purposeful use of funds was made possible by a number of factors. Neither the legislation nor the contracts made with the beneficiaries described the specific activities for which the aid was designed. Also, no penalties applicable in potential cases of contract breach had been laid down. Contracts were made only with those applicants, who received funds from the Ministry, but 70 % of the beneficiaries received money from the county governments and no contracts were signed with them. The Tartu and Ida-Viru County Governments, to which the SAO referred on sample basis for auditing the use of aid, did not require the beneficiaries to produce reports on its use.
The Ministry of Culture informed the SAO that this year it plans to amend the Sport Act by making the definition of recreational sport more specific, since it lays down limitations on the circle of beneficiaries and the use of money. On the basis of the proposals of the SAO the Regulation of the Minister has been amended, which defines more clearly the purpose of the aid and how this use should be reported.
The SAO hopes that the new arrangements ensure more purposeful use of the 6.3 million kroons annually allocated to recreational sport.
Sven Soiver
Press Representative of State Audit Office
Telephone: (372) 640 0787
GSM: (372) 53 414464
E-mail: [email protected]
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Posted:
4/22/2003 12:00 AM
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Last Update:
10/2/2015 6:00 PM
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Last Review:
10/2/2015 6:00 PM