Medvedev used a visit to Sochi to take part in the celebration of the raising of the Olympic and Paralympic flags following their arrival from Canada to launch his latest initiative to get to the bottom of the team's poor performance last month when they finished a lowly 11th in the final medals table.

They won only 15 medals, three of them gold, and finished below the Netherlands in the medals table - Russia's worst performance in the Winter Olympics since Lillehammer in 1994 when they competed under their own banner following the break-up of the Soviet Union.

Medvedev said: "The problem is not so much a lack of resources as their ineffective use.

"The Audit Chamber on my order is already checking the use of budget funds aimed at preparing for the Vancouver Olympics."

Medvedev has asked the Audit Chamber to carry out the checks on the Russian Olympic Committee (ROC), the Sports, Tourism and Youth Policy Ministry, sports federations and several small sports agencies.

But the results of the report are not expected to be made public until September.

Medvedev said: "According to the results, we will decide what to do with [the report] - just to hear it or send it to the prosecutor's office."

Russian Prime Minister Vladimir Putin, the country's most powerful politician, complained earlier this month that Russia spent five times as much money on Vancouver as on the 2006 Turin Olympics, where Russia secured eight golds.

The Government spent about 3.5 billion rubles (£79 million/$118 million) over three years to prepare for Vancouver.

Medvedev and Putin (pictured) went skiing together in Sochi after the flag-raising ceremony and the team's poor performance in Vancouver is bound to have been a leading topic of conversation.

State Duma Speaker Boris Gryzlov the leader of United Russia, has claimed that sport in the country is in danger of imploding.

He said: "We are witnessing a complete collapse of the Russian Olympic Committee.

"Many sports federations are corrupt, and the Sports Ministry is helpless.

"The system of financing sports is corrupt from the top to the bottom."

Medvedev has already called on top sports officials to resign or face dismissal over the Vancouver showing.

Leonid Tygachyov, the President of the ROC, Gennady Alyoshin, the Deputy Sports Minister and Valentin Piseyev, President of the Figure Skating Federation of Russia, are among those who have quit already.

Medvedev told a group of top Russian sports officials gathered in Sochi that he expects greater success in the future.

He said: "You must work 24 hours a day, not just wear out the seats of your pants, and rove abroad."

He also warned them that they must stop fighting among each other.

Medvedev said: "If I find out that the bosses, including the new ones, again start fighting each other, I will have to reshuffle the cards again."

Medvedev is also angry that Russia's reputation has been badly tarnished following a series of failed dope tests on some of its leading athletes, although he also hinted that they were being unfairly targeted as part of a global conspiracy.

He said: "We need to break this image and do all that is necessary."

A total of 343 Russian athletes have tested positive in the last three years, including 31 in international competition, Sports Minister Vitaly Mutko revealed last week.

Medvedev said: "But doping scandals to a certain extent are a way to settle scores and are a part of global sporting competition.

"So we need to be able to strike back and be able to defend ourselves without turning the other cheek."

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