An investigation carried out by the Audit Office into the compliance of the Cyprus Sports Organization's Pension and Grant Plan for its employees, including their dependents, spanning the years 2019 to 2022, has unearthed a number of inconsistencies.

The core aim of the examination was to ascertain if the procedures of the Pension Scheme aligned with the provisions of the Regulations of the Cyprus Sports Organization's Pensions and Grants (KDP 111/93). This is to ensure its comparability with the Government's Pension Scheme.

• During the assessment of loan provisions, grave discrepancies were discovered. Among other things, several loan-related documents were untraceable. In some instances, members partook in meetings where their own loan requests were discussed. There were either missing or incomplete loan contracts, and some that were found weren't fully filled or signed. Additionally, some documents lacked sequence numbers, and certain loan contracts had dates prior to their actual approval.

• A recommendation was made to adopt practices that align with pertinent laws and regulations. Another suggestion emphasizes the importance of maintaining valid and legally acceptable loan contracts. It was also advised that committee members seeking loans should not participate in meetings where their requests are reviewed.

• The investigation also identified a lack of readily available information regarding the outstanding balance of each loan. This is because a single account is maintained for each member, rather than a distinct account for every loan. It was advised to establish a separate account for every loan granted.

• There was a notable delay in the submission of financial statements for the year 2018, which was only presented for review on 17th May 2022. The financial statements for the years 2019 to 2022 have yet to be compiled. Timely preparation of financial statements is recommended, as specified by the professional pension fund laws.

• The fund's capital, which amounted to €10.5 million on 31st December 2021 and €10.4 million on 31st December 2022, is deposited in bank accounts. This practice conflicts with Article 31 of KDP 111/93. According to the Audit Office, this isn't congruent with a rational investment management strategy. A suggestion was made to diversify the fund's capital investments, in line with relevant regulatory provisions.

• Lastly, the loan contracts established between the Fund's Committee and its members lack stamp duty. A proposal was put forward to seek expert advice from the Stamp Duty Commissioner regarding its necessity.