the verification of public investments. first level control managing authority responsibility self...

The verification

of

public investments

First level controlManaging Authority responsibility

First level controlManaging Authority responsibility

Self controlFinal Beneficiaries responsibility

Self controlFinal Beneficiaries responsibility

Second level controlAudit Authority responsibility

Second level controlAudit Authority responsibility

Certification of expenditures

Certifying Authority responsibility

Certification of expenditures

Certifying Authority responsibility

First level controlFirst level control

Article 60 COUNCIL REGULATION (EC) No 1083/2006of 11 July 2006


Article 13 COMMISSION REGULATION (EC) No 1828/2006of 8 December 2006


First level control

First level control activities shall include:

administrative check regarding 100% of applications for payment

on the spot check on a sample basis

First level control activities shall include:

administrative check regarding 100% of applications for payment

on the spot check on a sample basis

Sequence of activities

Administrative Checks

Art. 13 par 2 lett. A 1828/06

On the Spot check Art 13 par. 12 lett. B

Reg 1828/06

Self controlAdministrative

checkRisk analysis

Sampling operations

On the Spot check

Tip

ology control

Con

trol activities

Con

tolrep

resentativen

ess

Alloperations

Alloperations

Sample check

First level control

Second level control (audit)

Second level control (audit)





Second level control

Evaluation of reliability

Sequence of activities

Management and control

system check

Sampling operations

On the Spot check on

operations

Gathering documents

Gathering documents

Audit trailPrevious auditFirst level controlControl by CA


Process analysis of

Process analysis of

SelectionImplementationReporting

SelectionImplementationReporting

Desk controlDesk control

First levelControl by CARelevant documentation

First levelControl by CARelevant documentation

Sample dimension

Sample dimension

Number and type of operation

Number and type of operation

Risk analysisRisk analysis

Inherent risksControl risksConfidence level

Inherent risksControl risksConfidence level

Control report

Control report

Check listIrregularitiesRelevant data

Check listIrregularitiesRelevant data

On site control

On site control



Documents and information to support the audit activity

Community Decisions;

Documents for Monitoring Committees;

The description of management and control systems;

Annual Implementation Reports (RAE) of the MA;

Audit trail ex art.15 Reg. EC 1828/06;

Monitoring data;

Updated list of the co-financed operations;

Indications on the functions of Audit Authority in the agreements for delegating tasks to the IBs and/or to the Final beneficiaries

Community Decisions;

Documents for Monitoring Committees;

The description of management and control systems;

Annual Implementation Reports (RAE) of the MA;

Audit trail ex art.15 Reg. EC 1828/06;

Monitoring data;

Updated list of the co-financed operations;

Indications on the functions of Audit Authority in the agreements for delegating tasks to the IBs and/or to the Final beneficiaries


Updated list of referents/IBs/ priority responsible;

Models and standards for expenditure justification;

Circular letters from the Managing Authority;

MA communications on the controls performed by

Internal and national or Community bodies

(CONTROL REGISTER);

Final beneficiaries expenditure declarations;

Certifying Authority expenditure certification

Annual questionnaire on controls development;

Observations and actions performed after the controls results;

Communication sent to the Commission (through the national body) regarding the irregularities found


Documents and Information sent by the Control Authority to the IBs

Communication on the programme an audit strategy ex. Art. 62 (Reg. EC 1083/02);

The audits shall be carried out each 12-month period from 1 July 2008 on a sample of operations:

applied methodology for selecting the sample;

list of the operations selected;

period for performing the controls;

indication of the names of the civil servants responsible in this sense.

For knowledge, the communications sent to the final beneficiaries which are subject to the controls;

Photocopy of the control reports;

Synthesis report on the results of the controls.

Risk Assessment

ActivitiesActivities

Operative Program Audit trailSystem of Management and control

InputInput

Identification of the strategy

OutputOutput

Methodology of sampling

Audit’s strategyNormative

Identification of the methodology of sampling

Audit of operations

Audit trailDocumentationand records held by the CA, beneficiaryNormative

Control’s report

Sampling Methodology of sampling

List of the operations to be audited

1

2

3

4

Process of au

dit activities

Identification irregularities

Documentation object of the control and this case of irregularities

Control’s reportCompetent organs irregularities report

Additional auditsDocumentationand records held by the beneficiaryIrregularities

Control’s reportSupplementary request documentation

Measures corrective and estimates

Singles irregularities verified or system’s irregularities

Annual report and opinion

ActivitiesActivities InputInput OutputOutput

5

6

7

Process of au

dit activities

a. The structure and the organization of the MA, of the CA and of the IB;

b. The connections between the functions of the MA, CA, the IB and the functions of control, as well as the informative obligations towards the European Commission;

c. The formal procedure with are managed under the administrative profile-accountant the funds;

d. Methodology for the identification of the objectives that want to reach themselves

e. The controls directed to ensure that the execution of the interventions is as the respect of the initial objectives

f. The existence of adequate internal audit

g. The appropriateness the procedures of the system of monitoring

h. The organizational formal procedure and the general procedures across that come carried out the functions of management and payment

a. The structure and the organization of the MA, of the CA and of the IB;

b. The connections between the functions of the MA, CA, the IB and the functions of control, as well as the informative obligations towards the European Commission;

c. The formal procedure with are managed under the administrative profile-accountant the funds;

d. Methodology for the identification of the objectives that want to reach themselves

e. The controls directed to ensure that the execution of the interventions is as the respect of the initial objectives

f. The existence of adequate internal audit

g. The appropriateness the procedures of the system of monitoring

h. The organizational formal procedure and the general procedures across that come carried out the functions of management and payment

The contents of the system audit

l. The responsibility of the activity of management and control

m. The suitability of the human resources and technologies with respect to the requirement of the ordinary control

n. The procedures that regulate the activity of management and payment and the skills delimit of it

o. The spread of the relevant indications to the correct capacity of the documentation of expenditure

p. The completeness of the d information in the declarations of expenditure

q. The criteria utilized from the Authorities to verify if the declarations of expenditure received respect the requirement of the rules established for the structural Funds about of contracts, competition, equal opportunity, environment, publicity

r. The existence of a procedure so that the payments come emitted for their total amount and without unjustified deductions

s. The existence of measures for the return of the sums unduly distributed

t. The procedures for a separate bookkeeping destined to the record of the operations founded with the structural founds-

l. The responsibility of the activity of management and control

m. The suitability of the human resources and technologies with respect to the requirement of the ordinary control

n. The procedures that regulate the activity of management and payment and the skills delimit of it

o. The spread of the relevant indications to the correct capacity of the documentation of expenditure

p. The completeness of the d information in the declarations of expenditure

q. The criteria utilized from the Authorities to verify if the declarations of expenditure received respect the requirement of the rules established for the structural Funds about of contracts, competition, equal opportunity, environment, publicity

r. The existence of a procedure so that the payments come emitted for their total amount and without unjustified deductions

s. The existence of measures for the return of the sums unduly distributed

t. The procedures for a separate bookkeeping destined to the record of the operations founded with the structural founds-

The contents of the system audit

The sample of operations to be audited art. 17 and annex IV Reg. (EC) 18282006 Based on a random statistical sampling method; Additional operations may be selected as a complementary sample Internationally accepted audit standards and be documented; Having regard to the amount of expenditure, the number and type of operations and other relevant factors, the audit authority shall determine the appropriate statistical sampling method to apply The sample to be audited each twelve-month period shall be selected; The audit authority shall draw conclusions on the basis ofthe results of the audits relating to expenditure declared to theCommission during the year; The audit authority shall regularly review the coverage providedby the random sample, having regard in particular to theneed to have sufficient audit assurance for the declarations to beprovided at partial and final closure for each operationalprogramme.

Article 16 COMMISSION REGULATION (EC) No 1828/2006

The audits shall verify that the following conditions are fulfilled:

a) the operation meets the selection criteria for the Operational Programme, has been implemented in accordance with the approval decision and fulfils any applicable conditions concerning its functionality and use or the objectives to be attained;

b) the expenditure declared corresponds to the accounting records and supporting documents held by the beneficiary;

c) the expenditure declared by the beneficiary is in compliance with Community and National rules;

d) the public contribution has been paid to the beneficiary in accordance with Article 80 of Regulation (EC) No 1083/2006.

a) the operation meets the selection criteria for the Operational Programme, has been implemented in accordance with the approval decision and fulfils any applicable conditions concerning its functionality and use or the objectives to be attained;

b) the expenditure declared corresponds to the accounting records and supporting documents held by the beneficiary;

c) the expenditure declared by the beneficiary is in compliance with Community and National rules;

d) the public contribution has been paid to the beneficiary in accordance with Article 80 of Regulation (EC) No 1083/2006.

Audits of operations

Phase deskPhase desk

Phase of the check on-the-spot


Phase of deepening and reporting


Acquisition of the Audit trail

Acquisition of the Audit trail

Predisposition of the check list for the controlPredisposition of the check list for the control

PHASE DESK

Acquisition of the records by a

certifying authority and 1 st level audit

report

Acquisition of the records by a

certifying authority and 1 st level audit

report

Acquisition of the documentation on the final Beneficiary of the operationAcquisition of the documentation on the final Beneficiary of the operation

Economical financial control


ConcerningConcerning

EffectivenessEffectiveness

Legality Legality

Control of conformity

Control of conformity

Par condicioPar condicio

Administrative transparency


Legal certaintyLegal certainty

Regularity of the execution


Realized/Approved Project

Realized/Approved Project

Respect of technical prescriptions

Respect of technical prescriptions


Control of regularity of the execution


Typologies

Typologies

ConcerningConcerningLegalityLegalityEffectivenessEffectiveness

Conten

tsC

ontents

Connection between sustained expenditure and activity funded

Connection between sustained expenditure and activity funded

Correspondence between monetary disburse and documentation of expenditure

Correspondence between monetary disburse and documentation of expenditure

Absence of violations of law and of the normative on the acceptable expenditure

Absence of violations of law and of the normative on the acceptable expenditure


Typologies

Typologies

Equality of treatment

Equality of treatment

The legal certainty in the management of the public resources

The legal certainty in the management of the public resources



Conten

tsC

ontents

Respect of the normative concerning public contracts, information and equal opportunities

Respect of the normative concerning public contracts, information and equal opportunities

Respect of the administrative procedures of engagement, payment and account and access to the documents

Respect of the administrative procedures of engagement, payment and account and access to the documents

Respect of the National and European laws about public resources

Respect of the National and European laws about public resources

The control of conformity

Typologies

Typologies



Respect technical prescriptions

Respect technical prescriptions

Regularity between project approved and activities

Regularity between project approved and activities

Conten

tsC

ontents

Check correct: procurements of goods and services; training; constuction of pubblic works.

Check correct: procurements of goods and services; training; constuction of pubblic works.

Effctiveness of operations with respect to final results

Effctiveness of operations with respect to final results

Respect technical prescriptionsRespect technical prescriptions


Typologies

Typologies

DirectDirectOverheads Overheads IndirectIndirect

Reporting of

expen

diture

Reporting of

expen

diture

Direct and total to the operation or to the project

Direct and total to the operation or to the project

Indirect and partial to the operation or to the project with technical and physical criteria

Indirect and partial to the operation or to the project with technical and physical criteria

Indirect in the limit established with fair and verifiable criteria

Indirect in the limit established with fair and verifiable criteria

The costs of the operations and projects

REPORTINGREPORTING


Deepening with final beneficiaryDeepening with final beneficiary

ReportingReporting

Determination of eventual irregularity

Determination of eventual irregularity

European Commission

European Commission

National Organisms

National Organisms

the verification of public investments. first level control managing authority responsibility self...

Documents

level control control

level control slide

level control activities

level control article

level control audit

ca audit trail previous

functions of audit authority

operations sample check