of production cooperatives; lending to inhabitants of rural areas; lending and auditing the economic operations, investment projects and general renovations of all contractor enterprises subordinated to the Ministry of Agriculture, certain contractor enterprises subordinated to the Ministry of Development of Cities and Residential Areas, and design offices subordinated to the Ministry of Agriculture and Forestry44. In addition, BR s tasks included gathering the investment funds and funds for general renovations of state agricultural and forestry enterprises, and funds of indivisible agricul- tural production cooperatives, as well as overseeing the timely repayment of funds and their utilization. At the same time, BR performed settlements of financing provided to the investment projects and general renovations, and settlements of operations of contractor enterprises developing the investment projects financed by the bank45. Bank Rolny gradually expanded the scope and improved the methods of banking audits. The following measures were implemented as part of permanent banking audit: audit of concentration of capital expenditures, audit of cost estimates, audit of investment goods, audit of working procurements, audit of design offices, audit of implementation of plans of commissioning the facilities. Additionally, direct audit on construction sites was expanded and broadened, and comprehensive audit of the investors overall investing activities was introduced46.

As of 1956, several new forms of state financial assistance for production cooperatives were implemented, and they constituted a significant burden to BR s operations. They included, among other things, new principles of extending loans for investment proj- ects carried out by production cooperatives, principles of paying for the workmanship of members of production cooperatives, and principles of borrowing the cooperative s own investment funds for production purposes47. New long-term loans were made available to the cooperatives for production outlays, as well as special-purpose loans. Bank Rolny was also ordered to disburse and audit the utilization of budget subsidies for multi-family construction projects, cancel the loans taken out for construction of a first cow, pig or sheep barn, carry out a campaign consisting in consolidation of overdue liabilities of cer- tain production cooperatives48. BR s financing and lending activity was covered from various financing sources, depending on its type. Central investment projects were financed from the central budget or local budgets. As far as the lending activity is concerned, BR used primarily the deposit of the state budget, refinancing loans taken out in the National Bank of Poland, own funds, and spare funds of business entities49.

44. Ibidem, pp. 25-26.

45. Ibidem, p. 26.

46. Ibidem, p. 27.

47. Ibidem, pp. 30-31.

48. Ibidem, p. 31.

49. AAN, BR, file no. 5/14, Memo on activities, principles of financing, extending loans and auditing the agriculture, and organization of the apparatus extending the loans to agriculture, 25 November 1959, p. 32, 32 verso.

122 T H E H I S T O R Y O F B G Z