THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY EDIS The

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY EDIS The final phase Martin BECK (martin. beck@cec. eu. int) DG Regional Policy Unit G 6: Audit of ERDF and ISPA Annual Meeting of ISPA partners Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Four Phases EDIS ¯ 1: Gap Assessment ¯ 2: Gap plugging ¯ 3: Compliance assessment ¯ 4: Preparation Commission Decision Annual Meeting of ISPA partners Brussels, 9 April 2003

Current state of play (1) THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Phase 1 completed: XCzech Republic: –Deloitte & Touche XEstonia: –Deloitte & Touche XHungary: –Government Control Office XLatvia: –Price, Waterhouse & Coopers XLithuania: –Ernst & Young XSlovakia: –P. E. International XSlovenia: –Ministry of Finance XRomania Annual Meeting of ISPA partners –Price, Waterhouse & Coopers XPoland –Ernst & Young Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Current state of play (2) Phase 2 & 3 completed: XEstonia: –Price, Waterhouse & Coopers (Phase 2) –Deloitte & Touche (Phase 3) Phase 4 running XEstonia –Commission services Contract auditor Phase 2 signed: XHungary –P. E. International XLithuania –Deloitte & Touche Annual Meeting of ISPA partners Updated information available on: –http: //forum. europa. eu. int/Members/irc/budg/fccweb 02/ (Financial Control Contact website) Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Conflict of interests ¯Same auditor can carry out Phase 1 & 3 audit ¯Auditor Phase 2 cannot carry out Phase 1 & 3 audit ¯Phase 4 auditor: Commission services Annual Meeting of ISPA partners External firms may be called on by Commission to provide assistance These auditors not involved in previous stages Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Scope Phase 4 audit ¯Assessment of: national and sectoral project management capacity financial control procedures structures regarding public finance ¯Target bodies: Annual Meeting of ISPA partners NIC NAO and National Fund SAO and supporting staff implementing agencies internal audit bodies responsible for the ex-ante control on tendering and contracting Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Request file ¯Elements NAO confirming fulfilment of conditions Compliance Assessment Report Xpositive assurance external auditor XEDIS request complete and accurate Xnon-blocking findings, requiring action within a fixed time-scale Audit trails Xpayments to contractors Xclaiming funds from EU Xreporting system (Monitoring Committee, irregularities, final report) Xsupporting documentation Annual Meeting of ISPA partners Updated ISPA implementation paper Other useful documents (e. g. Manuals) Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Steps Phase 4 (1) ¯Consultation of other services DG BUDG, MARKT, ELARG, AGRI Directorate F EC Delegation ¯Preparation of the audit Analysis of request file Analysis of earlier audit work Info from ECD on procurement ¯On-the-spot audit Annual Meeting of ISPA partners Joint methodology DG REGIO/ELARG More oriented on testing system Using COSO approach XMore info: presentation Berrisford 13. 11. 2002 Brussels, 9 April 2003

THE EUROPEAN COMMISSION DIRECTORATEGENERAL REGIONAL POLICY Steps Phase 4 (2) ¯Drafting audit report Findings Xweaknesses serious enough to block EDIS Xrecommended corrective actions with timetable but not blocking EDIS Xpossible corrective actions without any timetable Xno comments required Annual Meeting of ISPA partners Discussion with and submission to manager ISPA: Directorate F Granting EDIS or not to be decided by DG REGIO Decision can vary per implementing agency Opinion of the auditors Brussels, 9 April 2003