RIGA, Sept 3 (LETA) - An audit carried out by the State Audit Office at six municipalities has concluded that municipal benefits such as allowances, compensations, discounts, and co-financing are very diverse and costly for municipalities, Gunta Kerevica, head of the Audit Office's Communications Department, informed LETA.

According to the Audit Office, local governments' benefits are often not sufficiently justified, fail to achieve their intended objectives, or are disproportionate to administration costs. In many cases, it is unclear whether benefit is actually necessary.

During the audit, 39 unique types of benefits were identified at local governments, which cost a total of EUR 66.2 million, or 5 percent of municipal budgets on the average.

The Audit Office points out shortcomings in determining benefits' administration costs and a lack of clearly defined objectives.

Development of the Smart Administration and Regional Development Ministry's unified benefits information system has cost EUR 2.7 million. Maintenance of the system will require at least EUR 460,000 annually from the state budget. However, municipalities are not using the system due to technical shortcomings and insufficient funding.

"Different benefits can serve as an important tool for municipalities in achieving their objectives. However, it is important that municipalities act responsibly - clearly defining the purpose of each benefit, assessing whether administration costs do not outweigh the benefits or create bureaucratic burdens for recipients," said Audit Office's board member Oskars Erdmanis.

The audit found that municipalities often do not specify what they aim to achieve with a particular benefit or why a particular amount is paid.

Additionally, municipalities lack preconditions for responsible planning of benefits - funding is often based solely on the previous year's spending rather than on the actual amount of resources needed for the current year, said Erdmanis.

The audit was carried out in six municipalities: Tukums, Olaine, Ropazi, Bauska, Rezekne and Jurmala.