"Artek" tired out in debts

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In 2007 the number of the children revitalized in the Artek International Children's Center (ICC), decreased by 36% in comparison with 2002, and the financial and material condition of MDTs is difficult - for the beginning of 2008 the accounts payable of the enterprise made 36,4 million UAH that in 40 times more, than for the beginning of 2003. Such data are provided by Board of Audit Chamber following the results of audit of efficiency of functioning of MDTs "Artek" after reconstruction.

As reported Ligabusinessinform in a press - service of Audit Chamber of Ukraine, Public administration by affairs which is governing body of property of the International children's center "Artek", and the Center management over the last 5 years "wasn't provided by effective management of its material resources and funds for reconstruction which for this period 102,3 million UAH" are spent.

As auditors noted, the decision of the management of MDTs "Artek" concerning a capture in 2003 of the credits of banks on Center reconstruction of 47 million UAH was "economically unreasonable". "Actually they threatened safety of the state property and led the enterprise to financial crisis, seizure of its bank and treasury accounts. In 5 years 21 million UAH that caused an essential rise in price of cost of the performed works on reconstruction is spent for repayment of percent on credit agreements. At the same time still there is a debt on the bank credits for the sum of 19,9 million UAH, thus the internal resource for its repayment is absent", - is spoken in the message.

According to Audit Chamber, MDTs "Artek" management, despite of a difficult financial position, didn't create own network of implementation of off-budget children's permits. "At the same time intermediaries - commercial structures - sell permits in "Artek" at the price 1,5-2,5 times higher, than buy from the Center which, in turn, loses the real income which is extremely necessary for the solution of its financial problems. By estimation, only in 2 last years - only on Morskoy camp - the Center lost opportunity to receive over 20 million UAH of the additional real income", - note in a press - department service.

"From - for inadequate performance by Public administration by affairs of functions of governing body by MDTs "Artek" state enterprise property, its management didn't provide obligatory state registration of the material rights for real estate of the Center and implementation of requirements of the legislation concerning registration of its rights as land user. It resulted in uncertainty of borders of land use and created prerequisites for submission of numerous judicial claims and withdrawal of part of property of "Artek" in interests of other persons", - speak in Audit Chamber.

According to audit data, MDTs "Artek" management when planning and using funds for reconstruction "allowed a number of violations of requirements of the legislation". "Planning of means of the state budget on financing of capital expenses on MDTs "Artek" in 2004-2006 (all it is directed from the state budget of 58 million UAH) wasn't based on detailed calculations and was carried out in the absence of claimed and coordinated in accordance with the established procedure proyektno - budget documentation that is the budgetary offense", - spoken in the message.

Estimating results of the booked audit, the Board of Audit Chamber noted that "one of the important negative factors, MDTs "Artek" which have entailed inefficient functioning and creation of a crisis financial state of this enterprise, non-performance by the Cabinet of Ukraine of recommendations of the Verkhovna Rada of Ukraine concerning development and the statement of the general state program of development for the long-term period of the International children's center "Artek" became affected.

"Artek" is founded in 1925. The center is located on the southern coast of the Crimea, near the settlement of Gurzuf.


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