The premises can be deemed to have supported the activities carried out in them reasonably well. The audit of the management of premises in the Defence Administration sought to determine whether the management of premises has been effective and economical since the 2003 real estate reform. This document contains a summary of the main results of the audit. The entire audit report is available only in Finnish.
Premises in the use of the Defence Administration account for about one-third of state premises, and a significant part of the defence budget is spent on costs resulting from these premises. The Defence Administration’s office and real estate costs covered by the state budget totalled about 230 million euros in 2010 (about 10% of total expenditure in the administrative sector).
In the real estate reform that was carried out in the Defence Administration in 2003, ownership tasks related to state premises and real estate were shifted outside the Defence Administration, mainly to Senate Properties and Metsähallitus. Since then the Defence Administration has rented the premises and real estate it needs from their owners. In principle the Construction Establishment of Defence Administration nevertheless remained responsible for maintaining these premises. This arrangement has been called a capital rent model and it has been regarded as containing risks compared to the traditional total rent model as a result of the complexity of the parties’ responsibility relations, among other things.
The audit of the management of premises in the Defence Administration sought to determine whether the management of premises has been effective and economical since the 2003 real estate reform.
On the basis of the audit, the premises in the use of the Defence Administration can be deemed to have supported the activities carried out in them reasonably well. The audit observed some problems that are detrimental particularly when the matter is considered from the viewpoint of the state’s overall interests.
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