Andorra Court of Auditors Exposes Widespread Fiscal Mismanagement

Andorra's Court of Auditors has issued its 2024 fiscal oversight report, identifying persistent management lapses across government departments, public entities, the General Council, Andorra Turisme, and the Canillo parish council.

Government practices include late-year budget adjustments to fund prior commitments lacking sufficient allocation, breaching budgetary standards. Recent surpluses, totalling €46 million for 2024 excluding financial assets and liabilities, have not been directed toward debt repayment or reserves as mandated by public finance sustainability rules. Officials face €500 million in debt maturities in 2027 and another €500 million in 2031, with auditors doubting that projected savings will cover these without new market financing.

Among 73 general administration employees, overtime compensated beyond the 120-hour annual cap prompted concerns over service pressures or staffing shortfalls. Details show three exceeding 300 hours, 12 between 200 and 300 hours, 27 between 150 and 200 hours, and 31 between 120 and 150 hours. Exceedances require departmental reports and Public Function Department sign-off.

A €2.88 million extraordinary credit for acquiring Sant Esteve's mural paintings drew criticism for inadequate justification of its urgency and fixed purchase deadline.

The Andorran Health Care Service (SAAS) repeated end-of-year amendments to cover underfunded outlays, used unapproved payment methods such as cards and cash advances, and showed incomplete receipt documentation for certain public contracts.

The Andorran Social Security Fund (CASS) recorded €129,859 in uncleared bank cheques that should reduce treasury balances directly. It also misclassified €75,215 in guarantees as short-term rather than long-term, with €26,418 over a decade old lacking explanation.

The General Council maintained service contracts past the six-year public procurement limit, amounting to €389,903. These covered Vallsegur security services (€29,269), Musitronic audiovisual work (€121,792 committed), and Agefred Servei maintenance (€238,842). The Council acknowledged these as legacy arrangements needing updates for operational needs and legal alignment, pursuing phased reviews for continuity.

Auditors challenged a €44,706 extension for heating fuel supply, which ended in 2023 without fresh tendering. The Council explained it invoked a one-year extension option from the January 2022 contract, delayed by setbacks in connecting to FEDA Ecoterm's network. Officials framed it as a temporary exception to ensure service continuity.

The Council's mutual fund for temporary disabilities outside CASS scope lacks formal regulations. The Council is finalizing rules for 2026 approval, noting that established unwritten practices are clear to stakeholders.

Andorra Turisme recruited three permanent staff—an agent for commercial and tourism promotion, branding technician, and content specialist—via a selection firm without Official Bulletin (BOPA) publication, sidestepping merit, publicity, equality, and competition principles. Website notices do not substitute legal requirements.

The entity botched at least two tenders: security for the 2024 Cirque du Soleil event and an agency for audiovisual, digital, and graphic ad creatives. It directly awarded a €365,750 contract, extendable to 2027, for electrical and air-conditioning rental at the Cirque du Soleil site, exceeding minor contract thresholds and requiring public tendering.

Andorra Turisme also retained unspent government subsidies without returning them to cut net assets, as required. Auditors suggest joint approvals, since the director general currently handles payments up to €100,000 alone. Further issues involve cash handling at tourism offices lacking independent checks and cybercard payments violating dual authorization.

Newly flagged, Canillo parish council fully funds supplementary life and CASS-complementary medical insurance for active employees (excluding short-term contract workers), contravening rules requiring staff contributions for such enhancements. The parish views it as a social benefit for active workers only, planning inclusion in forthcoming regulations by March 2026, but auditors deem it an undue payment potentially triggering sanctions under finance laws. The parish also faces questions over not levying all possible taxes like property and rental income levies, though it prioritizes higher-yield fees; the council insists this falls within its discretion.

The Court affirmed that all audited accounts fairly represent financial positions and called for fixes to these recurring problems.