Valencia’s Ivace, the Institute for Business Competitiveness, received an audit verdict from the Sindicatura de Comptes concerning fiscal year 2021. The document highlights concerns about the organization’s oversight of subsidies awarded by Ivace, a body under the Ministry of Economy. The focus rests on assistance to technology centers, with particular emphasis on financial monitoring plans that lacked formal approval. The union could not confirm that all regulations were observed, raising questions about whether subsidies exceeded the actual costs of the intended activities. Ivace acknowledges that a formal control plan was not in place, but notes that verification actions were conducted.
The recently released audit centers on Ivace’s adherence to the law governing subsidies. It states that Ivace’s management generally complies with the regulations governing public resources in material respects, while also identifying a number of notable exceptions that warrant attention.
This represents the Generalitat’s General Intervention’s first instance in which comprehensive financial control was not fully exercised. The public finance framework defines aid as part of the instrumental public sector and the corresponding chapter on subsidies.
Additionally, the control plan outlined in the regulation regarding the nominal aid line for technology centers under the institute’s direct supervision had not been approved. The same section warns that verification did not confirm that the General Subsidies Act was followed in all cases, and that aid must not exceed the cost of the subsidized activity, either alone or combined with other subsidies, aid, income, or resources.
The report explains that the reason for this gap in verification is that the certificates prepared at the time of justification documented the correct distribution of operating income and expenses, yet the funding allocated to each completed project was lower. Moreover, supporting documents related to these aids do not require the allocation of income and expense details to each individual project that forms part of the activity.
In response, the union offers several recommendations to strengthen Ivace’s subsidy management. It calls for a robust system of monitoring and evaluation after aid is granted, to be reflected in annual reports. The proposed analysis framework should assess the success or failure of strategies, using the indicators set for subsidies in the strategic plan and measured in clear terms.
The report also notes that the distribution of allocations and elections has left the renewal of the Sindicatura de Comptes in a state of uncertainty.
Similarly, the document asserts that direct assistance to technology centers and their formalization through agreements should follow a competitive bidding process, as Ivace has already done when providing aid intended to fund specific research and development projects and to support Ivace’s own initiatives. This approach aligns with the work carried out by technology institutes in collaboration with private firms.
Nevertheless, as a public law body integrated into Ivace’s governance, the Sindicatura de Comptes is responsible for applying the same general accounting framework used by the Generalitat Administration. It is noted that Ivace continues to apply the accounting principles and standards set forth in the Spanish Commercial Code and the General Accounting Plan, without documented justification for this deviation in the annual accounts. This is noted alongside the Generalitat’s budgetary provisions for fiscal year 2021.
Ivace contends that, when it comes to exercising financial control over subsidies, it is not within its remit to bypass the Generalitat’s General Intervention and therefore cannot provide any explanation on this matter. Regarding technology center aid, Ivace acknowledges the absence of a formal control plan but asserts that verification actions were performed and later conveyed to the Sindicatura de Comptes as part of the institute’s claims. In any case, the sources indicate that the recommendations are already being implemented.
Overall, the audit underscores the need for strengthened governance and transparent reporting to ensure subsidies are managed in strict accordance with applicable laws, with enhanced oversight mechanisms and clearer accounting practices guiding future disbursements.