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However, a number of observations were made in respect of the use and management of public funds and assets, the National Audit Office said.

"The Ministry of National Defence failed to always ensure sparing and economical use of public funds and assets and to avoid unreasonable costs. Also, legislative provisions on the management of public assets were not always observed," said Auditor General Giedre Svediene commenting on the audit results.

It is for the second consecutive year that the National Audit Office tells the Ministry that the latter has been organising centralised supply to the national defence system in breach of the Law on the Management, Use and Disposal of State and Municipal Assets and related legislation. Failure to implement the recommendation made last year has lead to repeated violations.

There is also another recommendation which has not been implemented by the Ministry. The auditors found that a private catering company was using the premises and equipment of the Ministry free of charge and recommended to address this issue in accordance with law. In 2013, after the expiry of a catering services contract with the private company, the Ministry carried out a public procurement, purchased services from the same company, and again allowed to it to use the premises, furniture, kitchen and household equipment free of charge.

Legislation does not provide for reduction of the food price for soldiers at the expense of the state budget, since soldiers already receive financial compensation for their subsistence expenses. Nevertheless, the Lithuanian army was reducing the prices of the food sold thus spending more than LTL 2.6 million (EUR 0.75 million) in 2013.

Observations were also made concerning the acquisition of military equipment. In 2013, the Ministry of National Defence and the Lithuanian Army spent almost LTL 2.8 million (EUR 0.81 million) and more than LTL 8.6 million (EUR 2.5 million), respectively, for public capital investments which had not been included in the Public Investment Programme 2013-2015.

The Communications and Information Systems under the Ministry of National Defence failed to comply with the Law on Public Procurement by incorrectly assessing the value of a planned procurement of hardware, office and telecommunications equipment and, therefore, chose a wrong procurement procedure for purchasing equipment and machinery for more than LTL 1.1 million (EUR 0.32 million). The selection of an inappropriate procurement procedure limited the possibility of participation of a greater number of suppliers and procurement of goods at a lower price.

The National Audit Office also applied to the Prosecution Service with a request to defend the public interest and to recover LTL 350,000 (EUR 88,500) for the damage done to the state budget when court declared the dismissals of three soldiers as illegal.