The Sindicatura de Comptes audited compliance with current subsidy and benefit legislation for several municipalities and regional entities in response to COVID-19 relief programs. In fiscal year 2020, programs were implemented by local establishments with populations over 50,000 in Alcoy, Alicante, Benidorm, Castellón, Elche, Elda, Gandia, Orihuela, Paterna, Sagunto, San Vicente del Raspeig, Torrent, Valencia, and Vila-real, alongside the three provincial councils. [Citation: Sindicatura de Comptes]
The audit relied on a sample file extracted from help lists provided by the entities under review. Based on these records, aid totaling 71.7 million euros was disbursed by the organizations. In addition, the audit evaluated certain aspects of the subsidy area and the internal controls governing these disbursements. [Citation: Sindicatura de Comptes]
strategic plan
As a result of the review, it was found that not all organizations had approved a strategic plan for subsidies, and not all calls were published in the National Subsidy Database (BDNS) or on the organizations’ transparency portals. It was also noted that five entities receiving funding from the Generalitat and the county councils to support COVID-19 aid delivery did not implement those funds at a rate exceeding 20 percent in 2020. The Alicante City Council stood out with a non-implementation rate of 40.6 percent. [Citation: Sindicatura de Comptes]
Regarding the amount executed in COVID-19 aid, the ranking of institutions for 2020, from highest to lowest, is as follows: Valencia City Council, Alicante City Council, Alicante Provincial Council, Benidorm, Elche, Castellón Provincial Council, Valencia Provincial Council, Castellón City, Gandia, Sagunto, Elda and San Vicente del Raspeig, Orihuela, Paterna, Torrent, Alcoy, Torrevieja, and Vila-real. [Citation: Sindicatura de Comptes]
On internal control, all organizations maintained an annual financial control plan; some had approved it but did not include the control of aid disbursed, while others had not implemented the plan. It was also observed that there were objections and gaps in control in some examined files. [Citation: Sindicatura de Comptes]
The renewal of Sindicatura de Comptes was excluded from the Botànic pact in Cortes
For the review, a sample representing 36.5 percent of COVID-19 aid administered by the institution was selected, covering eighteen audited entities. Valencia City Council rejected more than one application due to insufficient funds, as well as the full application of the credits referenced. [Citation: Sindicatura de Comptes]
Thirteen cases in the files were identified as important events, including calls from thirteen municipal councils to assist self-employed individuals and small businesses, possibly overlapping with Generalitat aid for the self-employed. Specifically, 1,207 beneficiaries received 1.5 million euros from municipal councils and 1.7 million euros from the Generalitat. [Citation: Sindicatura de Comptes]
pay back
Only four city councils initiated the related reimbursement processes. In the remaining cases, potential duplications were reported to both the relevant town halls and the Labora organization as the aid administrator, thereby coordinating the refunds. [Citation: Sindicatura de Comptes]
In the report, the Court of Auditors issued several recommendations related to aid management, emphasizing the need for verifying the processing status of each aid application and ensuring that documentation is recorded in each beneficiary’s file. It also urged adequate staffing or external audits to support financial control plans. [Citation: Sindicatura de Comptes]