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Annual Report 1999

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Annual Report 1999 REPUBLIC OF CYPRUS ANNUAL REPORT 1999 AUDITOR GENERAL OF THE REPUBLIC AUDIT OFFICE OF THE REPUBLIC 1406 LEFKOSIA Auditor General of the Republic File No. 1.3.0.6(99) 20 November 2000 Your Excellency, In accordance with the provisions of paragraph 4 of Article 116 of the Constitution of the Republic, I have the honour to submit herewith my Annual Report on the exercise of my functions and duties, for the year ended 31st December 1999. With the assurance of my highest consideration, (Chrystalla Georghadji) Auditor General of the Republic His Excellency Mr. Glafcos Clerides President of the Republic of Cyprus Lefkosia TABLE OF CONTENTS Page PART I INTRODUCTION 9 PART 2 SUMMARY OF MAIN FINDINGS 11 2.1 Performance Audits 11 2.2 Previous Performance Audits 11 2.3 General Audit Observations 11 2.4 Ministries and Departments 11 2.5 Local Authorities 23 2.6 Statutory Bodies 25 PART 3 PERFORMANCE AUDITS 29 3.1 Capital Gains tax 29 3.2 Previous Performance Audits 32 PART 4 AUDIT OBSERVATIONS 49 4.1 General Audit Observations 49 4.2 Independent Offices 52 4.3 Presidency 52 4.4 Relief Fund for Affected Persons 52 4.5 Judicial 52 4.6 Central Bank of Cyprus 55 4.7 Ministries and Departments 57 4.8 Ministry of Defence 57 4.9 National Guard 57 4.10 Ministry of Agriculture, Natural Resources and Environment 61 4.11 Dept of Water Development 61 4.12 Dept of Geological Survey 65 4.13 Dept of Forests 65 4.14 Dept of Agriculture 67 4.15 Land Consolidation Department 67 4.16 Mines Service 68 4.17 Ministry of Justice and Public Order 68 4.18 Police 68 4.19 Fire Service 76 4.20 Rents Subsidy Fund for Displaced and Affected Persons 77 4.21 Prisons 77 4.22 Ministry of Commerce, Industry and Tourism 77 4.23 Registrar of Companies and Official Receiver 84 4.24 Cyprus Handicraft Service 86 4.25 "Philoxenia" Hotel 87 4.26 International Conference Centre 88 4.27 Ministry of Labour and Social Insurance 89 4.28 Dept of Labour 89 4.29 Social Insurance Services 90 4.30 Social Insurance Fund 91 4.31 Central Holidays with Pay Fund 93 4.32 Redundancy Fund 93 4.33 Higher Technical Institute 93 4.34 Higher Hotel Institute of Cyprus 94 Page 4.35 Productivity Centre 94 4.36 Welfare Services 94 4.37 Ministry of Interior 97 4.38 District Administrations 99 4.39 Nicosia 101 4.40 Limassol 103 4.41 Pafos 103 4.42 Dept of Land and Surveys 104 4.43 Dept of Town Planning and Housing 107 4.44 Press and Information Office 109 4.45 Service for the Administration of T/C Properties 110 4.46 Service for the Care and Rehabilitation of Displaced Persons 112 4.47 Migration Office 113 4.48 Ministry of Foreign Affairs 114 4.49 Ministry of Finance 119 4.50 Treasury 120 4.51 Relief Fund for Displaced and Affected Persons 122 4.52 Dept of Government Purchasing and Supply 123 4.53 Dept of Inland Revenue 125 4.54 Dept of Customs and Excise 134 4.55 Dept of Information Technology Services 140 4.56 Fund for Travelling Expenses of Invalid Persons 140 4.57 Ministry of Education and Culture 141 4.58 Education "A" Fund 145 4.59 School Committees 145 4.60 Nicosia 149 4.61 Larnaka 149 4.62 Geri 150 4.63 Armenian 150 4.64 Ministry of Communications and Works 151 4.65 Dept of Antiquities 151 4.66 Dept of Public Works 152 4.67 Dept of Merchant Shipping 160 4.68 Dept of Electrical and Mechanical Services 163 4.69 Dept of Road Transport 168 4.70 Dept of Civil Aviation 171 4.71 Dept of Postal Services 173 4.72 Ministry of Health 174 4.73 Medical and Public Health Services 179 4.74 Pharmaceutical Services 184 4.75 Government Industrial Personnel Medical Treatment and Welfare Scheme 188 4.76 General Laboratory 188 4.77 Local Authorities 189 4.78 Municipalities – General Observations 189 4.79 Nicosia 192 4.80 Limassol 193 4.81 Larnaca 198 4.82 Pafos 199 4.83 Strovolos 199 Page 4.84 Agios Dometios 201 4.85 Athienou 202 4.86 Aradippou 202 4.87 Poli Chrysochous 203 4.88 Paralimni 204 4.89 Agia Napa 205 4.90 Lefkara 206 4.91 Geroskipou 206 4.92 Pegeia 206 4.93 Mesa Gitonia 207 4.94 Germasogeia 209 4.95 Kato Polemidia 209 4.96 Agios Athanasios 212 4.97 Aglantzia 212 4.98 Enkomi 214 4.99 Latsia 215 4.100 Idhalion 216 4.101 Lakatameia 217 4.102 Community Boards – General 217 4.103 Agios Tychonas Community Board 220 Public Corporations and other Organisations 221 4.104 Industrial Training Authority 221 4.105 Electricity Authority of Cyprus 224 4.106 State Fairs Authority 236 4.107 Cyprus Ports Authority 238 4.108 Cyprus Telecommunications Authority 241 4.109 Cyprus Grain Commission 252 4.110 Nicosia Water Commission 254 4.111 Cyprus Theatrical Organisation 255 4.112 Youth Board 257 4.113 Cyprus News Agency 257 4.114 Cyprus Sports Organisation 258 4.115 Cyprus Land Development Corporation 265 4.116 Cyprus Tourism Organisation 267 4.117 Agricultural Insurance Organisation 272 4.118 Cyprus Dairy Industry Organisation 274 4.119 Housing Finance Corporation 281 4.120 University of Cyprus 282 4.121 Cyprus Broadcasting Corporation 284 4.122 Vine Products Commission 294 4.123 Nicosia Sewerage Board 295 4.124 Limassol Amathus Sewerage Board 297 4.125 Famagusta Sewerage Board 298 4.126 Larnaka Sewerage Board 299 4.127 Pafos Sewerage Board 300 4.128 Paralimni Sewerage Board 301 4.129 Agia Napa Sewerage Board 302 4.130 Council for the Registration and Control of Contractors for building and Technical Works 303 Page 4.131 Cyprus Olive Products Marketing Board 304 4.132 Cyprus Table Grapes Export Board 308 4.133 Cyprus Potato Marketing Board 308 4.134 Central Slaughter House Board 313 4.135 Water Boards – General 317 4.136 Nicosia Water Board 318 4.137 Limassol Water Board 320 4.138 Famagusta Water Board 323 4.139 Larnaka Water Board 323 4.140 Fund for the Erection of Cyprus Museum 324 4.141 Public Loans Fund 325 4.142 Cyprus Children's Assistance Fund Committee 326 4.143 Game Fund 326 4.144 Provident Lottery Fund 326 4.145 Advocates Pensions Fund 327 4.146 Christos Steliou Ioannou Foundation 327 4.147 Central Agency for Equal Distribution of Burdens 329 4.148 Cyprus Foundation for Muscular Dystrophy Research 329 4.149 Cyprus Stock Exchange 331 4.150 Securities and Exchange Commission 333 4.151 Technical Chamber of Commerce 333 4.152 Institute of Technology 334 4.153 Clinical Laboratories Fund 335 4.154 State Scholarships Foundation 336 4.155 E.O.K.A. Struggle 1955–1959 Historical Memory Fund 337 4.156 Bank of Cyprus Oncological Centre 337 4.157 Karaiskakeio Foundation 339 4.158 Tax Tribunal 340 4.159 Cyprus Radio–Television Authority 340 PART 5 STATE BUDGETS AND FINAL ACCOUNTS 343 5.1 Approval of State Budgets for 1999 343 5.2 Ordinary Budget 343 5.3 Development Budget 345 5.4 Budget of the Relief Fund for Displaced and Affected Persons 345 5.5 General 346 5.6 Final Accounts 353 5.7 Assets 354 5.8 Liabilities 357 PART 6 AUDIT OFFICE OF THE REPUBLIC – ORGANISATION AND PLANNING 363 PART 7 APPENDICES 369 APPENDIX I Budgetary Results 369 APPENDIX II Arrears of Revenue as at 31 December 1999 376 APPENDIX III Statement of Permanent Posts (Ordinary and Development Budgets) 379 AUDITOR GENERAL OF THE REPUBLIC ANNUAL REPORT 1999 PART 1 – INTRODUCTION 1.1 This Report is submitted to the President of the Republic who, under article 116(4) of the Constitution, shall cause it to be laid before the House of Representatives. 1.2 The Auditor General is the Head of the Audit Office of the Republic, which is an Independent Office not coming under any Ministry. 1.3 Pursuant to article 116 of the Constitution, the Auditor General, assisted by the Deputy Auditor General, shall control, on behalf of the Republic, all disbursements and receipts and audit and inspect all accounts of monies and other assets administered, and of liabilities incurred, by or under the authority of the Republic. 1.4 In addition to the audit of the public accounts, the Auditor General is responsible for the audit of the financial statements of Public Corporations, Special Funds and Local Authorities, as provided by special legislation or by administrative arrangement. 1.5 The powers and duties of the Auditor General are exercised either by herself or by her officers who act according to her directions. 1.6 The constitutional and statutory provisions envisage that the Auditor General shall examine the financial and other activities of Government Services, Public Corporations and Local Authorities, in order to satisfy herself that: • All necessary measures are taken to secure collection of all public monies and all revenues are collected in accordance with the Laws, Regulations and other directions; • the expenditures are incurred in the most economic and effective way; • all sums appropriated are spent for the services and purposes for which they have been approved by the Legislature and in accordance with the authority given; and • all assets are properly maintained, physically inspected and verified. 1.7 For presentation purposes, matters relating to the current year are included in Part A of the Report for each Service, while outstanding matters relating to previous years are included in Part B.
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