In order to eliminate the identified shortcomings in the sports financing and management system, the Ministry of Education and Science pointed out that in the next year Latvia should consolidate non-governmental sports organizations by establishing an association of sports organizations to which the state could delegate important functions in sports financing and administrative management.
In case the fragmentation at the level of associations of non-governmental sports organizations will not be eliminated during the year, the Ministry of Education and Science will take over the performance of the state sports budget funds and other sports management functions from 1 January 2023.
Sandis Riekstins (JKP), Parliamentary Secretary of the Ministry of Education and Science, pointed out that for almost two years now, as the chairman of the Sports Subcommittee of the Saeima Education, Culture and Science Commission, sports federations have called for more careful treatment of taxpayers’ money. “Unfortunately, the changes during this time have been minimal, so we have to announce that the negotiation time is over. Non-governmental sports organizations that receive funding from the Ministry of Education and Science are given a year to agree on consolidation,” he stressed.
Analyzing the current sports funding and administrative management model, the MES has previously identified a number of shortcomings, including instability and long-term unpredictability, regular additional funding requests and reallocations, unpredictability of private sector support, fragmentation of public funding for sports between different line ministries , a branched budget administration system at the level of non – governmental sports organizations, as well as an overlap of certain functions and tasks.
The State Audit Office has also identified several shortcomings in the audit “Is the action of the association” Latvian Olympic Committee “in using the allocated state budget funds efficient, economic and appropriate for the intended purposes?”. Thus, it is pointed out that the current funding model for the sports sector, in which sports federations receive funding from several sources at the same time, runs the risk of double funding for sports federations.
The Ministry recalled that the audit also found that several of the sports federations included in the inspection, reporting on the use of the received funding to both the Latvian Olympic Committee (LOC) and the Latvian Sports Federation Council (LSFP), attached the same reports. supporting documents for expenditure, thus receiving double funding. The State Audit Office has called on the Ministry of Education and Science, when working on changing the funding and management model of the sports sector, to take into account the shortcomings in the sports funding organization, including to prevent the risk of double funding and the possibility for sports federations to manipulate the submitted funding use reports; making the process traceable and understandable.
In order to eliminate the mentioned shortcomings, in 2020 the Ministry of Education and Science made several significant changes in the field of financing and administrative management of the sports sector, which were continued in the first half of 2021. The draft Sports Policy Guidelines for 2021-2027 developed by the Ministry of Education and Science also envisage reform of the sports sector funding management and administrative management model, significantly reducing the number of organizations involved in the administration of state budget funds for the sports sector, as well as strengthening the role of recognized sports federations. asset management.
In order to eliminate the identified shortcomings in the sports financing and management system, in the coming year Latvia should consolidate non-governmental sports organizations by establishing an association of sports organizations, to which the state could delegate important functions in the field of sports financing and administrative management. Which of several possible consolidation models will be chosen is within the competence of sports federations recognized in accordance with the procedures specified in the Sports Law, as well as associations of existing sports organizations (including LOK, LSFP and Latvian Team Sports Games Association).
However, the Ministry of Education and Science wants the state to have one cooperation partner in all matters that affect the interests of Olympic and non-Olympic sports federations (both in individual and team sports). Taking into account the specifics of Paralympic sports, the MES considers that the association “Latvian Paralympic Committee” may not be involved in the consolidation process, but it is also a matter of negotiations between non-governmental sports organizations.
In case the fragmentation at the level of associations of non-governmental sports organizations is not eliminated during the year, from 1 January 2023 the Ministry will fully take over the state sports budget and other sports management functions and ensure funding to sports federations according to common principles and funding criteria, without involving associations of sports organizations in this process.
The Minister of Education and Science Anita Muižniece (JKP) noted that taxpayers’ money needs to be treated more carefully, therefore it is the last moment to arrange funding for non-governmental sports organizations and thus finally comply with the principles of efficiency and financial transparency.
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