The financial audit of the annual consolidated financial statement for 2022 assessed how 20.7 million euros allocated to the services of the Ministry of the Interior (MoI) within the framework of the priority measure were spent for increasing remuneration. In general, it was used appropriately, however, 15% or 3.1 million euros were redistributed to other purposes related to compensation payment although the goals of the priority measure were not fully achieved.
BRIEFLY
- Six years after the introduction of the new remuneration system in the Ministry of the Interior, officials with special ranks in the lowest monthly salary groups (or the majority) have equalized monthly salaries for positions of “equal value”, but there are still significant differences in the highest monthly salary groups.
- In connection with strengthening the capacity of the State Border Guard, the planned goal of the priority measure to increase the proportion of filled posts up to 90.5% has not been achieved (the number of vacancies increased last year, and 87% filled at the end of the year). Also, the new special allowances for border guards were paid in a significantly smaller amount than planned.
- The goal of ensuring the compliance of the investigators’ monthly salary with the monthly salary of district (city) prosecutor has not been achieved, although the funding has already been allocated to MoI for this purpose several times.
“The Ministry of the Interior services have a large number of vacant positions for a long time because it is difficult to attract and retain staff due to low remuneration. From 2016 to 2023, additional 107.6 million euros were allocated from the state budget for raising the remuneration of officials with special ranks. They plan to allocate another 24 million euros annually in the following two years, which will allow the continuation of the compensation increase. Therefore, measures are gradually being taken to ensure competitive remuneration in the MoI services, thereby strengthening internal security. However, the competitiveness of the remuneration of the officials of the MoI services with the remuneration of the officials of the National Armed Forces is largely based on the variable part of the remuneration, as the remuneration of the officials of the MoI services is competitive at the expense of overtime work and special allowances, which is not a sustainable solution for successful operation of those services,” indicated Ms Kristīne Jaunzeme, Council Member of the State Audit Office.
The purpose of the priority measure “Strengthening the Capacity of Officials with Special Ranks (marginal premium, compensation of investigators, equalization of monthly salaries)” is to strengthen the capacity of MoI institutions by attracting qualified specialists and keeping them in the MoI services. For the MoI services to classify positions of “equal value” in one monthly salary group and to receive an equivalent monthly salary for similar work, the MoI services have been implementing a remuneration reform for officials with special ranks from 2016. Within the framework of the reform, additional 155.6 million euros will be allocated for increasing compensation from 2016 to 2025.
Six years after the introduction of the new remuneration system in the Ministry of the Interior, officials with special ranks in the lowest monthly salary groups (or the majority) have equalized monthly salaries for positions of “equal value”. Since the lower-ranking positions make up most posts in the services, one can consider that the MoI services have managed to equalize the monthly salaries of most officials. However, there are still significant differences in the highest monthly salary groups. An average monthly salaries are still the lowest in the State Border Guard and the highest ones are in the State Fire and Rescue Service (SFRS). At the same time, the average total remuneration in almost all monthly salary groups was higher in the State Border Guard and State Police, but the lowest ones in the SFRS in 2022.
This can be explained by the fact that in 2022, the State Police and the State Border Guard had a larger variable part of the compensation of officials, as additional funding was allocated from contingency funds of around 11 million euros for one-time allowances in connection with measures to limit COVID-19, compliance with the emergency conditions on the Latvian-Belarusian border, ensuring public order and security in events related to the glorification of the occupation regime, as well as the dismantling of objects glorifying the Soviet and Nazi regimes. Since the allowances were granted from the contingency funds and were related to specific circumstances, when the situation changed, the State Police and the State Border Guard officials would no longer receive such allowances.
To strengthen the capacity of the State Border Guard and the ability of the service to staff its structural units on the external border of the country so that to achieve the density of the security of the state border, a new special bonus for the mobility and strengthening of border control was determined for the officials of the State Border Guard who perform their duties at the border. However, the new special bonus for the border guards have been paid significantly less than planned. Although the application of the priority measure assumed that the average special bonus would be 277 euros per month, it was only 152 euros on average in 2022. From 5.7 million euros allocated for the special bonus for the mobility and strengthening of border control in 2022, only 2.5 million euros were spent for this purpose (44%). In their turn, 3.1 million euros (54%) were redistributed to other types of remuneration, i.e., to other institutions subordinate to the MoI. It should be mentioned that the planned goal of the priority measure to increase the proportion of filled positions up to 90.5% was not achieved either because the number of vacant positions in the State Border Guard increased last year and 87% of the jobs were filled at the end of 2022.
The goal of ensuring that monthly salary of investigators matches the monthly salary of district (city) prosecutor has not been achieved either. Although the funding has already been allocated to MoI for this purpose several times, it has still not been possible to ensure that the monthly salary of investigators who conduct investigations into particularly complicated, serious, or particularly serious crimes of an interregional or international nature reaches the monthly salary of a district (city) prosecutor. An average monthly salary of such investigators was 2,090 euros in 2022, which constituted 69% of a monthly salary of a district (city) prosecutor of 3,016 euros. The highest monthly salary determined for the State Police investigator was 2,241 euros that was 74% of the monthly salary of a district (city) prosecutor. A difference between the remuneration of an investigator and a prosecutor is not reduced by premiums, bonuses, cash prizes, and allowances. The total average remuneration of investigators in State Police structural units was up to 77% of the total average remuneration of district (city) prosecutors.
When comparing the remuneration of officials of the MoI services and the National Armed Forces (NAF) who have recently started their service, one has concluded that the total average remuneration of the mentioned officials was equivalent in 2022. However, the competitiveness of the remuneration of the officials of the MoI services with the remuneration of the NAF officials has largely been achieved at the expense of overtime and night work allowances, as well as at the expense of special bonuses. A fixed part of compensation for NAF soldiers (monthly salary and compensations) was 25% higher than a fixed part of compensation for officials of the MoI (monthly salary and special allowance for rank) on average. Therefore, due to the differences in remuneration, the service in the NAF may be more attractive to young people than the service in the State Police, the State Border Guard, and the State Fire and Rescue Service.
State Audit Office recommendations #PēcRevīzijas
After the audit, we provided two recommendations to the Ministry of the Interior to (1) determine the remuneration of officials with special ranks in the services according to uniform principles by eliminating differences in the monthly salaries of positions of “equal value”, and to (2) approximate the maximum monthly salary of investigators who conduct investigations in particularly complicated, serious or particularly serious crimes of interregional or international nature to the monthly salary of district (city) prosecutors.
About the State Audit Office of Latvia
The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), whose recognition in Latvia is determined by the Auditor General.
100 years of AUDIT STRENGTH
On 16 August 2023, the State Audit Law will turn 100 years old. With the adoption of this Law, the State Audit Office from a formal de facto institution founded on 2 December 1918 became a de jure independent, collegial supreme audit institution of the Republic of Latvia. The State Audit Office is one of the independent state institutions enshrined in the Satversme (Constitution) of Latvia. The Constitution was signed by Roberts Ivanovs as the secretary of the Constitutional Assembly, who was then confirmed as the Auditor General. He worked as the first Auditor General for 12 years. His signature confirmed the text of our Constitution alongside that of Jānis Čakste.
Additional information
Ms Signe Znotiņa-Znota
Head of PR and Internal Communication Division
Ph. + 371 67017671 | M. + 371 26440185 | E-mail: signe.znotina-znota@lrvk.gov.lv