Municipalities incorrectly bill the federal government for housing and heating costs

Federal Minister of Labor Hubertus Heil visiting a job center

The Federal Court of Auditors accuses the minister of negligence in spending control.

(Photo: IMAGO/Christian Spicker)

Berlin When it comes to the costs for accommodation and heating for people on basic social security benefits, the local authorities often calculate incorrectly – at the expense of the federal government. But he is doing too little about it, the Federal Court of Auditors complains in its current statements on budget management, which went to the Federal Government, Bundestag and Bundesrat.

A total of 405 job centers in Germany pay the rent and heating costs on behalf of the municipalities for recipients of citizen benefit – formerly unemployment benefit II or colloquially Hartz IV. The federal government pays a share that fluctuates from year to year. Last year it was 68.5 percent or around ten billion euros.

Cities and municipalities report their expenses to the federal states, which in turn settle accounts with the Federal Ministry of Labor led by department head Hubertus Heil (SPD).

However, this often leads to errors, as can be seen from samples. In 2019 and 2021, the Federal Court of Auditors itself checked the accounts in eight of the 405 job center districts in seven federal states. In addition, one state had the accounts of all its municipalities checked. A total of 32 cities and municipalities were examined in this way.

It turned out that the municipalities examined had charged the federal government 9.8 million euros too much. This was due, for example, to the fact that some of them did not even know exactly which accommodation services the federal government is involved in. Or they did not use the participation rate applicable for that year. The federal states corrected the billing errors found by the municipalities, provided that the reimbursement claims were not time-barred.

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9.8 million euros does not sound like much. However, according to the assessment of the Federal Audit Office, the uncovered financial consequences of incorrect accounting are probably only the “tip of the iceberg”. After all, 373 job center districts were not examined. And in the federal state with a complete audit, a third of the municipalities had billed incorrectly.

The Federal Ministry of Labor points out that in its annual letter it informs the federal states comprehensively about the accounting modalities and points out sources of error identified by the Court of Auditors. Ultimately, however, the federal states are responsible for the correctness of the accounts of the municipalities.

The Federal Court of Auditors does not want to leave it that way. The financial responsibility of the federal government also entails obligations, according to the statement by the budget watchdog.

This means that the Ministry of Labor “has to ensure a lawful reimbursement of the federal shares to the states”. In particular, the systematic accounting errors that have now been revealed would have to be remedied in a timely manner together with the federal states.

More: Municipalities are in the black with significantly higher expenditure

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