Icelandic institutions spent ISK 12.7 billion more than they were authorized in 2004 according to a new report by the National Audit Office. The Audit Office finds that many public institutions often repeatedly exceed their authorized spending limits by considerable amounts. The civil servants responsible rarely take any corrective actions such as reducing costs.
The Audit Office recommends that the Ministry of Finance withhold funds from any institution that exceed their spending limits by more than 4 per cent.
