2021 Annual Report: supplementary report with current audit findings published
Federal Armed Forces, health insurance companies, transport, energy research – these are just some of the many topics covered in the supplementary report. Our 17 reporting items list cases in which the federal government has not used budget funds in a targeted, efficient and effective way. The reporting items supplement the annual report we have published in November 2021.
The annual report serves the purpose of parliamentary oversight of government action. As always, we take up cases that are relevant to parliament granting discharge to the federal government. The Public Accounts Committee of German parliament’s Budget Committee will deliberate on the annual report in the next months until the parliamentary summer recess.
all contributions of the supplementary Report
No rules for participation in public-private partnerships of the European Union: unknown financial burden
The federal government needs to make clear rules for German participation in joint undertakings at EU level. In doing so, the government has to ensure that the government departments take into account the financial burden placed on the federal budget and the key risks involved when making a decision on German participation.
Finally create transparency of the foundations established by the government
The federal government does not have a reliable overview of the foundations it has established.
Interior Ministry neglects supervisory duties: Federal Office of Administration does not examine aid applications and wrongly pays out millions of euros
The Interior Ministry failed to meet its supervisory duties by not ensuring that the Federal Office of Administration complies with applicable rules governing expenses for medical care, including childbirth and geriatric care, reimbursable within the system of government aid to civil servants. For quite some time, the Office has not, or not thoroughly, examined applications for government aid. This led to overpayments amounting to more than €8 million in 2019 alone.
Digital transformation in the public sector: Interior Ministry tries to whitewash the status of progress
The Interior Ministry uses its reports and websites to suggest that the digital transformation of public services and processes has made significant headway. However, only 3.8 per cent of the federal government’s services and processes has undergone a digital shift as yet.
Economic Ministry uses an annual amount of €500 million for energy research without knowledge of programme impact
The Federal Ministry for Economic Affairs and Climate Action spends an annual amount of €500 million on energy research without having sufficient knowledge of whether, when and how the results of the energy research programme contribute to a successful energy transition. The reason for this is that the programme is not aimed at using the research results to develop technologies that are ready to be launched on the market.
Statutory pension scheme: 2021 pension adjustment may adversely impact both younger and older generations
The 2021 pension adjustment may due to a statistical effect lead to lower pension increases for older generations in the years to come. Concurrently, the suspended balancing factor burdens on younger generations.
Federal Office for Social Security needs to better prevent corruption
The Federal Office for Social Security failed to address the prevention of corruption. The last comprehensive analysis of the Office’s particular risks of corruption took place in 2013. However, the Office has not updated the risk analysis ever since.
Every fourth long-distance train of Deutsche Bahn is delayed – no change in terms of punctuality
For years, the federal government as the owner of Deutsche Bahn (German rail company) has accepted that many long-distance trains are delayed. So far, the Federal Ministry for Digital and Transport has not properly ensured that Deutsche Bahn improves punctuality in long-distance traffic.
For years, poor prevention of corruption in Federal Armed Forces’ largest procurement office
For years, the Federal Ministry of Defence has not ensured adequate protection against corruption in the Federal Armed Forces’ largest procurement office. Staff members have for far too long remained in posts especially vulnerable to corruption.
Expensive Cyber Coordination Centre cannot support NATO Response Force
So far, the Federal Ministry of Defence has spent more than €60 million for a Cyber and Information Domain Coordination Centre (Cyber Coordination Centre) which cannot support the NATO Response Force (NRF) as intended in 2023 by providing a “consolidated situation report”. This is mainly due to poor planning.
Federal Armed Forces spent more than €50 million on unused software
Since 2006, the Federal Armed Forces have wasted more than €50 million on unused software acquired from a certain provider. If the terms of the software license agreement remain unchanged, the Armed Forces would have to pay the provider at least €5 million annually for maintenance of unused software.
Expensive Armed Forces electronic records management: delays in providing full functionality, limited operational readiness
The Federal Ministry of Defence plans to introduce the electronic records management system (e-file) throughout the Federal Armed Forces at a cost of €110 million, although the software still has many shortcomings and does not meet essential requirements.
Health insurance companies do not properly monitor the provision of medical devices and aids
Health insurance companies neglect their responsibility to monitor providers of medical devices and aids. This is at the expense of the insured persons.
Health insurance companies do not adequately protect insured persons against unnecessary additional costs for hearing aids
The health insurance companies have done too little to protect their insured persons against unjustified additional costs for hearing aids.
Small photovoltaic systems and block heating stations: need for tax certainty
The Federal Ministry of Finance plans to issue an administrative directive to simplify the taxation of revenue from small photovoltaic systems and comparable block heating stations. To ensure tax certainty, however, a statutory basis is required.
Benefit payments for children who have reached the age of majority generate high deadweight effects – Finance Ministry eschews programme evaluation
Deadweight effects in connection with benefit payments for children who have reached the age of majority cause additional costs of around one billion euros per year, which the legislator did not see coming. The Federal Ministry of Finance failed to notify the legislator about this trend which first became obvious in 2014.
Federal Ministry of Finance needs to support federal states in tax prosecutions by establishing a service unit within the Federal Central Tax Office
For more than 16 years, the Finance Ministry has failed to ensure that the Federal Central Tax Office can provide the planned assistance to the federal states in the prevention and prosecution of certain tax crimes.