Current Issues
Second supplementary budget constitutionally questionable – the German SAI sees no need for reaffirming the fiscal emergency situation
On 29 June 2020, at the expert hearing of the parliamentary Budget Committee, the German SAI criticised the second supplementary budget. We hold that seen in particular from the constitutional law perspective, this instrument is no viable option.
Current Issues
Spokesman appointed to the German SAI
With effect from 1 July 2020 Mr. Jens Hamer serves as spokesman at the German SAI.
Current Issues
Funding shortage jeopardises cultural heritage building
For years, the Prussian Cultural Heritage Foundation has neglected the Otto-Nagel Building that is part of the German cultural heritage. This may result in a fundamental renovation at excess cost and effort.
Current Issues
Excess remunerations for implementing grant programmes: 20 per cent of grant funding paid to KfW
Excess amounts of federal remuneration are paid to KfW development bank for implementing several grant programmes. Out of approximately €206 million grants, almost 20 per cent are kept by KfW. Such funds are no longer available for the original programme purposes.
Current Issues
Interior Ministry lacks digital transformation strategy as to building construction
The Federal Ministry of the Interior has long-standing plans to reform and digitise building works. At the same time, the Ministry has not used the potential of digital transformation for making, for example, more accurate forecasts of cost and time schedules. Building Information Modeling is a useful method for this purpose.
Current Issues
Home ownership-related child benefit is not well aligned to the target
The home ownership-related child benefit scheme has not been well aligned to the target and grant purposes are not consistently pursued over the course of the funding period.
Current Issues
Gaps in the digital radio network cause security risks
Poor transmission of digital radio in public places and highly frequented sites such as train stations and airports have repeatedly endangered the Federal Police. The police officers had to discontinue prisoner liberation and predatory blackmail operations, as attempts to call reinforcements did not work because of lacking digital radio transmission.
Current Issues
Ineffective governance of grant programmes
The Federal Ministry for Economic Affairs and Energy does not effectively steer its grant programmes of an annual total of more than €6 billion. Often the Ministry has not been aware of whether its programmes have been successful, whether the funds have been used efficiently and effectively and for the purposes for which they were appropriated.
Current Issues
Chaotic travel management within the Federal Armed Forces
Several times, the Federal Ministry of Defence restructured the travel management scheme of the Federal Armed Forces without doing a structured organisational analysis. In restructuring the scheme, the Ministry largely reversed modifications initially made.
Current Issues
Federal Armed Forces failed to keep their promise of billing logistics services provided to third parties
The Federal Armed Forces provide logistics services to third parties but do not always ensure billing of these services. They have no overview of the services, such as flights and operating supplies, provided to foreign units, authorities and civilians.
Current Issues
Child support advance payments: Federal government does not assert compensation claims for damages against federal states
We have repeatedly stated that the state governments do not make consistent use of available enforcement remedies to recover child-support advance payments from defaulting absent parents. This is often due to inaction and particularly to lacking or insufficient knowledge of the staff in charge.
Current Issues
High workload levels of central tax offices
In recent years, the burden on the central tax offices has been on course to hit an all-time high. This has led to a situation where the offices are unable to ensure the taxation of turnover due for foreign traders. The federal and state governments tolerate these structural shortcomings and the ensuing tax shortfalls and distortions of competition.
Current Issues
Finally develop uniform regulations on non-deduction of fines from taxable income
Fines are subject to diverging tax treatment. Fines imposed within the European Union are not deductible from operating expenses. Conversely, fines imposed by third countries are tax-deductible and reduce taxable income.
