Support is granted from the state budget to a variety of non-profit organisations, associations, foundations and institutions. Overall, the processes for subsidy granting, payment and supervision are appropriately organised, although some deficiencies were detected. The audit also examined three cases where tasks relating to discretionary government transfers had been delegated to actors other than public authorities.
The NAOF audited six types of subsidies paid from the state budget to non-profit organisations. In 2018, the subsidies paid from these items amounted to 128 million euros. The aim of the audit was to examine whether the applicable regulations had been followed in the application for and granting and payment of government subsidies, and in the supervision of the use of the subsidy, and whether the internal control of support processes is appropriately arranged. The audit also examined three cases where tasks relating to discretionary government transfers had been delegated to actors other than public authorities.
Overall, the processes are appropriately organised, and no actual abuses were detected. The audit revealed that there are inconsistencies between and within different forms of subsidies regarding the use of concepts. Due to this, the scope of these concepts may remain ambiguous. This in turn can result in differing interpretations, which may impact, for example, the subsidy decision and the amount of subsidy.
The audit also revealed some individual irregularities. For example, support had been granted contrary to the relevant regulations, and there were some deficiencies in the supervision of the use of the subsidy. The NAOF also recommends that the regulations concerning the Finnish Institute of Occupational Health be updated as they are in many respects outdated and inadequate.
The audit also examined three cases where tasks relating to discretionary government transfers had been delegated to actors other than public authorities. These actors were Business Finland, Motiva Oy and Finnish Wildlife Agency.
The NAOF notes that if public administrative tasks are delegated to actors other than public authorities, it should be ensured that the tasks are defined and specified sufficiently accurately by law. A public administrative task may be delegated to another actor than public authorities only by an act or by virtue of an act if this is necessary for the appropriate performance of the task and if requirements of good governance are not endangered. However, tasks involving significant exercise of public powers can only be delegated to public authorities.