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Work Programme
2015
EN
EUROPEANCOURTOF AUDITORS
EUROPEAN COURT OF AUDITORS12, rue Alcide De Gasperi1615 LuxembourgLUXEMBOURGTel. +352 4398-1Fax +352 4398-46410E-mail: [email protected]: http://eca.europa.eu
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© European Union, 2015
Reproduction is authorised provided the source is acknowledged.
Printed in Luxembourg
EN 2015
Workprogramme
02
The European Court of Auditors (ECA) is the guardian of the EU’s finances. We contribute to the sound man-agement of the EU’s budget and assist the legislators of the European Parliament in holding to account the Eu-ropean Commission, its executive body. Our annual report rigorously tests the reliability of the EU’s accounts and the legality and regularity of the transactions underlying them. Our special reports go further with their focus on other aspects of financial management such as performance and value for money, with the aim of constantly improving the level of service from European institutions to our citizens.
The European Court of Auditors undertakes:
ο Financial audits - on the reliability of accounts and the legality and regularity of transactions. Financial audits are generally required by legislation (notably the statement of assurance, or ‘DAS’) on an annual basis.
ο Compliance audits - a key component of financial audit, comprising an assessment of whether transac-tions (income or spending) or systems of specific budgetary areas comply with the rules and regulations governing them.
ο Performance audits - on the soundness of financial management (including value for money). These au-dits are on specific management or budgetary topics, often covering a number of financial years.
Performance and compliance audit topics are selected at the ECA’s discretion on the basis of criteria such as risk of irregularity or poor performance, potential for improvement and public interest. Their complex and detailed nature means they generally require more than a year to complete.
The ECA publishes the results of its audit work in the following types of reports:
ο Annual reports - present the results of financial audits of the EU budget and the European Development Funds in the form of statements of assurance. These two reports are published together in November of the following year.
ο Specific annual reports - present the results of financial audits of the EU agencies and decentralised bod-ies. They are published at the end of the following year.
ο Special reports - present the results of selected performance and compliance audits. Special reports can be published at any time of the year.
In addition, the ECA is called upon to provide its opinion on new or updated legislation with a financial im-pact. The ECA recently introduced landscape reports, providing information and analysis of key issues based on its audit knowledge. It can also issue position papers on topics of interest at its own discretion.
The ECA - in line with other supreme audit institutions - carries out its work in compliance with international standards to ensure the highest professional quality.
03ECA strategy 2013-2017
The ECA’s objective for the 2013 to 2017 period is to maximise the value of its contribution to EU public accountability. In order to meet this objective, our priorities are to:
focus the ECA’s products on improving EU accountability;
work with others to leverage the ECA’s contribution to EU accountability;
guarantee the ECA’s continuing professionalism;
make best use of the ECA’s knowledge, skills and expertise; and
demonstrate the ECA’s performance and accountability.
These priorities are translated into specific audit tasks through a comprehensive planning process (see box).
Planning to maximise impact
Our programming system follows a rigorous process aiming at achieving maximum impact of our audits and best use of our resources. The following four step approach is followed:
1. A yearly dynamic ECA-wide policy and risk review is carried out taking into account risk analysis, develop-ments in policy areas, the priorities of our stakeholders, the results of recent audits, audit profession devel-opments, the work of other Supreme Audit Institutions, and relevant media coverage. This review defines the ECA’s priorities in alignment with the strategic objectives.
2. Based on these priorities, our audit chambers prepare lists of their proposed audit tasks (PAT) and infor-mation on their relative priority. An institution-wide list of PATs is approved by the ECA’s College based on this input, which then provides the basis for identifying the tasks to be included in the annual work programme (AWP).
3. The annual work programme sets out the audit tasks to be implemented during the year and the resources allocated to them. It contains both permanent and recurrent tasks (DAS- financial and compliance audits), as well as priority tasks selected (performance audits) from the PAT. The AWP is reviewed and updated dur-ing the year, to take into account significant changes to priorities and the inclusion of new tasks.
4. The implementation of the AWP is monitored regularly and lessons learned are fed back into the process.
04
The European Court of Auditors is the external auditor of the European Un-ion. Most of its resources are devoted to auditing the budget of the EU. However, we also audit the European Development Funds and the EU agen-cies, decentralised bodies and other institutions.
This document provides an overview of our planned work and output for 2015.
The ECA intends to adopt and publish:
ο 55 annual reports on the 2014 financial year, including the an-nual reports on the EU budget and the European Development Funds, and the specific annual reports on EU agencies, decentralised bodies and other institutions (53 reports);
ο 35 special reports1, representing an increase on those published in 2014;
ο one dedicated follow-up report of previous special reports; and
ο the ECA’s annual activity report for 2014.
Statement of assurance
We devote a significant proportion of our resources preparing the annual statements of assurance (also known as ‘DAS’), which are then presented in our annual reports. These are based on financial audits of the EU budget and European Development Funds, as well as the 53 EU agencies, decen-tralised bodies and other institutions. The audit work takes place between March of every year through to June of the following year to allow the annual reports to be made available according to the timetable set by the Financial Regulation. During 2015 the ECA will therefore work on the completion and publication of the statement of assurance for the 2014 financial year and start on the exercise for the 2015 financial year.
The work underlying the statement of assurance covers the two aspects on which the Treaty on the Functioning of the European Union requires us to pro-vide an annual opinion: the reliability of the accounts and the legality and regularity of the transactions that underlie them. Where possible, we take account of the results of the work of other auditors as well as the repre-sentations of management in the form of the annual activity reports of the Directors General of the Commission.
Further information on the audit ap-proach followed can be obtained from our website eca.europa.eu.
In performing our work in this area we aim to provide clear conclusions on the state of accounting and financial management of the EU budget (and specific spending areas), as well as to give practical, cost-effective recom-mendations where improvements can be made.
Planned audit work in 2015
1 Some of the audit reports have been finished and adopted by the ECA in 2014 but will be published in early 2015.
05
Selected audit tasks in 2015
In its 2013-2017 strategy, the ECA aims to focus its performance audits on top-ics which relate to the overall EU objec-tives of achieving added value and growth as well as the EU’s response to global challenges. These include the sustainability of public finances and the environment and climate change. These overarching themes are developed into the following priorities for the 2015 work programme:
√ Financial and economic governance framework
√ Europe 2020 strategy
√ Closure of 2007-2013 program- ming period and the Multian- nual Financial Framework
√ Disaster preparedness and response at EU level
√ Youth employment
√ Energy security
Many of the selected audit tasks ad-dress these priorities and the topics covered are presented below under the relevant Multiannual Financial Framework heading or main theme.
Planned audit work in 2015
Smart and inclusive growth – Competitiveness for growth and employment
Danube river basin
Inland waterways
Micro-finance for social inclusion
Baltic sea strategy
Security of energy supply
Implementation of the Service Directive
European Institute of Innovation and Technology
06
Smart and inclusive growth – Cohesion for growth and employment
Public procurement
Youth employment
Deprived urban areas rehabilitation
Planned audit work in 2015
Preservation and management of natural resources
ο Emissions Trading Scheme
ο Forestry potential and prevention actions
ο Causes of Rural Development errors
ο Technical assistance in Agriculture and Rural development
ο Financial engineering instruments in Rural development
ο Knowledge transfer and advisory measures in rural development
ο Non-productive investments linked to environmental objectives
ο Fisheries Partnership Agreements
Citizenship, freedom, security and justice
Animal disease eradication
The EU as a global player
ο Cooperation with third countries on migration and asylum
ο EUPOL Afghanistan
ο Democracy, human rights and fundamental freedoms
ο Renewable energy Eastern Africa
ο EU assistance to Ukraine
ο Tropical forests including FLEGT (Forest Law Enforcement, Governance, and Trade)
07
Administration
ο EU External Action Service management of delegation buildings
ο Grant management in Agencies and Joint Undertakings
Planned audit work in 2015
Revenue
ο Anti VAT fraud strategy
Financial and economic governance
ο Implementation of Balance of Payments (BOP) and European Financial Stabilisation Mechanism (EFSM)
ο Implementation of the Excessive Deficit Procedure
ο Intervention in the Greek financial crisis
ο Reform of European Securities and Markets Authority (ESMA)
ο European Central Bank – Single Supervisory Mechanism
More information is provided in the appendix.
08 EU
ROPE
AN CO
URT O
F AUD
ITOR
S – SP
ECIA
L REP
ORTS
TO B
E ADO
PTED
IN 20
15Au
dit s
ubje
ctAr
ea d
escr
iptio
nOb
ject
ive o
f the
task
Smar
t and
inclu
sive g
row
th –
Com
petit
iven
ess f
or g
row
th an
d em
ploy
men
t
Danu
be ri
ver b
asin
I & II
The m
ain ai
m of
the E
U’s w
ater
polic
y is t
o ens
ure t
hat a
suffi
cient
quan
tity o
f goo
d qua
lity w
ater
is
avail
able
for p
eopl
e’s ne
eds a
nd th
e env
ironm
ent t
hrou
ghou
t the
EU.
The D
anub
e Rive
r Bas
in is
hom
e to a
roun
d 100
milli
on in
habi
tant
s and
is ri
ch in
biod
iversi
ty. B
ut it
is
vuln
erab
le to
pollu
tion c
omin
g fro
m: a
gricu
lture
, was
te w
ater
disc
harg
e, an
d old
-fash
ioned
ener
gy
gene
ratio
n.
Ther
e are
a nu
mbe
r of d
irect
ives w
hich
addr
ess v
ariou
s wat
er po
llutio
n sou
rces,
inclu
ding
:
- Th
e Wat
er Fr
amew
ork D
irect
ive;
- Th
e Urb
an W
aste
Wat
er Tr
eatm
ent D
irect
ive (U
WW
TD);
- Th
e Sew
age S
ludg
e Dire
ctive
;-
The N
itrat
es D
irect
ive;
- Th
e Pes
ticid
es D
irect
ive.
The f
indi
ngs o
f the
audi
t will
be re
porte
d in t
wo se
para
te an
d com
plem
en-
tary
spec
ial re
ports
. Th
e firs
t rep
ort w
ill as
sess
the e
ffect
ivene
ss of
was
te w
ater
trea
tmen
t pl
ants.
In pa
rticu
lar, it
will
focu
s on t
he U
rban
Was
te W
ater
Trea
tmen
t Di
rect
ive (U
WW
TD) a
nd th
e Dire
ctive
on th
e use
of sl
udge
.Th
e sec
ond r
epor
t will
asse
ss th
e qua
lity o
f wat
er in
the D
anub
e rive
r bas
in
in an
inte
grat
ed w
ay, o
n the
basis
of th
e Wat
er Fr
amew
ork D
irect
ive.
Inla
nd W
ater
way
s
In 20
07, a
roun
d 515
milli
on to
ns of
freig
ht w
as sh
ippe
d usin
g inl
and w
ater
ways
(IW
W) i
n Eur
ope.
The
main
adva
ntag
es of
IWW
are:
low tr
ansp
orta
tion c
osts
per t
on/k
m an
d low
econ
omic
costs
in te
rms o
f gr
eenh
ouse
gase
s, air
pollu
tion,
accid
ents,
and n
oise.
Its m
ain di
sadv
anta
ges a
re: li
mite
d geo
grap
hica
l co
vera
ge, a
nd sl
owne
ss of
tran
spor
t. Hi
gh vo
lum
es of
freig
ht ar
e req
uire
d to a
chiev
e eco
nom
ies of
scale
. Eu
rope
an fu
ndin
g for
the d
evelo
pmen
t of IW
W ha
s inc
reas
ed ov
er ti
me,
but i
s sca
ttere
d am
ong n
umer
ous
fund
ing p
rogr
amm
es w
ith va
ryin
g obj
ectiv
es an
d with
out o
vera
ll coo
rdin
ation
. EU
Stru
ctur
al Fu
nds
acco
unt f
or th
e bul
k of f
undi
ng in
this
area
.
The a
udit
will a
sses
s whe
ther
EU sp
endi
ng on
Inlan
d Wat
erwa
ys pr
o-gr
amm
es ha
s ach
ieved
the d
esire
d res
ults
in te
rms o
f incre
ased
tran
spor
t vo
lum
es an
d eco
nom
ic be
nefit
s.
Micr
o-fin
ance
The g
oal o
f micr
ofin
ance
is to
give
fina
ncial
ly an
d soc
ially
exclu
ded p
eopl
e who
wish
to be
com
e micr
o-en
trepr
eneu
rs an
oppo
rtuni
ty to
inve
st in
new
or ex
istin
g eco
nom
ic ac
tiviti
es.
In th
e EU,
micr
ofin
ance
is se
en as
a co
ntrib
ution
to in
creas
e gro
wth
and e
mpl
oym
ent.
The E
urop
ean S
ocial
Fu
nd (E
SF) a
nd th
e Eur
opea
n Pro
gres
s Micr
ofin
ance
Facil
ity ar
e the
main
EU fu
ndin
g ins
trum
ents
for
micr
ofin
ance
.
To as
sess
whet
her t
he EU
micr
ofin
ance
instr
umen
ts wo
rk ef
ficien
tly an
d ef
fect
ively
and i
n par
ticul
ar w
heth
er th
ey ar
e suc
cess
ful in
achi
evin
g in
clusio
n.
Balti
c Se
a str
ateg
y
The B
altic
Sea i
s fac
ing v
ariou
s env
ironm
enta
l pro
blem
s. Eu
troph
icatio
n (th
e pro
cess
resu
lting
from
ex
cessi
ve am
ount
s of n
utrie
nt en
terin
g int
o wat
er bo
dies
) is g
ener
ally c
onsid
ered
to be
the p
rimar
y pr
oblem
. The
EU st
rate
gy fo
r the
Balti
c Sea
Regi
on (E
USBS
R) is
the f
irst m
acro
-regi
onal
strat
egy a
dopt
ed
by th
e EU
and i
s mea
nt to
prom
ote r
egion
al co
oper
ation
, pro
mot
e syn
ergi
es, a
nd av
oid ov
erlap
ping
be
twee
n diff
eren
t reg
ional
bodi
es an
d org
anisa
tion.
The a
udit
will a
sses
s whe
ther
the E
U ac
tions
com
batin
g eut
roph
icatio
n in
the B
altic
Sea a
re ef
fect
ive.
Secu
rity o
f ene
rgy
supp
ly
Secu
re, s
usta
inab
le an
d com
petit
ive en
ergy
is of
fund
amen
tal im
porta
nce t
o the
EU’s e
cono
my,
indu
stry
and i
ts cit
izens
. It is
a co
re go
al of
EU po
licy.
Secu
rity o
f ene
rgy s
uppl
y is p
rimar
ily en
sure
d by t
he ex
isten
ce
of ke
y ene
rgy i
nfra
struc
ture
and w
ell-fu
nctio
ning
ener
gy m
arke
ts. Th
e Eur
opea
n Par
liam
ent a
nd th
e Co
uncil
esta
blish
ed in
2009
the E
urop
ean E
nerg
y Pro
gram
me f
or Re
cove
ry to
aid e
cono
mic
reco
very
by
gran
ting C
omm
unity
aid t
o pro
jects
in th
e fiel
d of e
nerg
y. Th
e Com
miss
ion ha
s em
phas
ised m
ajor e
nerg
y in
frastr
uctu
re ch
allen
ges a
nd pr
ioriti
es un
til 20
20 an
d bey
ond a
nd pr
oject
s tha
t sho
uld p
lay a
crucia
l role
in
ensu
ring e
nerg
y sup
ply s
ecur
ity.
The a
udit
will a
sses
s whe
ther
the s
ecur
ity of
ener
gy su
pply
has b
een
effe
ctive
ly im
prov
ed by
EU in
tern
al en
ergy
mar
ket p
olicy
mea
sure
s and
sp
endi
ng on
ener
gy in
terco
nnec
tors
and s
tora
ge in
frastr
uctu
re.
Appendix
09 EU
ROPE
AN CO
URT O
F AUD
ITOR
S – SP
ECIA
L REP
ORTS
TO B
E ADO
PTED
IN 20
15Au
dit s
ubje
ctAr
ea d
escr
iptio
nOb
ject
ive o
f the
task
Smar
t and
inclu
sive g
row
th –
Com
petit
iven
ess f
or g
row
th an
d em
ploy
men
tHa
s the
Com
miss
ion
ensu
red
effe
ctiv
e im
plem
enta
tion
of th
e Se
rvice
Dire
ctiv
e by
Mem
ber S
tate
s?
The o
bjec
tive o
f the
Serv
ices D
irect
ive is
to ac
hiev
e a ge
nuin
e int
erna
l mar
ket i
n ser
vices
by re
mov
ing l
egal
and a
dmin
istra
tive b
arrie
rs to
the s
uppl
y of s
ervic
es be
twee
n Mem
ber S
tate
s.To
chec
k whe
ther
the C
omm
ission
has e
nsur
ed ef
fect
ive im
plem
enta
tion o
f th
e Ser
vices
Dire
ctive
by th
e Mem
ber S
tate
s.
Is th
e EIT
a su
itabl
e ve
hicle
to d
eliv
er
inno
vatio
n in
the E
U?
Inno
vatio
n is a
key d
river
of ec
onom
ic gr
owth
and j
ob cr
eatio
n. Th
e Inn
ovat
ion U
nion
, one
of th
e sev
en
pilla
rs of
the E
urop
e 202
0 Stra
tegy
, aim
s to c
reat
e an i
nnov
ation
frien
dly e
nviro
nmen
t tha
t mak
es it
easie
r fo
r gre
at id
eas t
o be t
urne
d int
o pro
duct
s and
serv
ices.
An im
porta
nt de
velop
men
t in r
ecen
t yea
rs in
term
s of E
urop
ean i
nnov
ation
supp
ort i
s the
cre
ation
of th
e Eur
opea
n Ins
titut
e of In
nova
tion a
nd Te
chno
logy (
EIT) i
n 200
8. Th
e EIT
aims t
o pr
omot
e syn
ergie
s and
coop
erat
ion in
side t
he kn
owled
ge tr
iangl
e (hi
gher
educ
ation
, res
earch
an
d inn
ovat
ion).
To ch
eck w
heth
er th
e EIT
rein
force
s the
EU in
nova
tion c
apac
ity.
Smar
t and
inclu
sive g
row
th –
Cohe
sion
for g
row
th an
d em
ploy
men
t
Publ
ic pr
ocur
emen
t
A lar
ge pa
rt of
the E
U str
uctu
ral f
unds
(ERD
F, Co
hesio
n Fun
d and
ESF)
is im
plem
ente
d thr
ough
publ
ic pr
ocur
emen
t. Th
e ECA
’s leg
ality
and r
egul
arity
audi
ts ha
ve re
veale
d con
siste
ntly
high
leve
ls of
erro
r co
ncer
ning
com
plian
ce w
ith pu
blic
proc
urem
ent r
ules
in th
e are
a of C
ohes
ion.
The r
egul
ator
y fra
mew
ork o
f pub
lic pr
ocur
emen
t has
diffe
rent
laye
rs at
EU an
d nat
ional
level.
In 20
14, a
ne
w leg
islat
ive pa
ckag
e for
the m
oder
nisa
tion o
f pub
lic pr
ocur
emen
t in t
he EU
was
adop
ted.
The a
udit
will a
sses
s whe
ther
appr
opria
te ac
tions
wer
e tak
en to
addr
ess t
he
prob
lem of
publ
ic pr
ocur
emen
t erro
rs in
Cohe
sion a
nd th
eir ef
fect
ivene
ss in
re
ducin
g the
freq
uenc
y and
serio
usne
ss of
erro
rs.
Yout
h em
ploy
men
tYo
uth u
nem
ploy
men
t has
incre
ased
dram
atica
lly in
rece
nt ye
ars,
reac
hing
an un
acce
ptab
le lev
el. Si
nce
2010
, the
Com
miss
ion ha
s pre
sent
ed va
rious
prop
osals
and i
nitia
tives
with
the a
im of
drivi
ng do
wn yo
uth
unem
ploy
men
t. Th
is is
part
of th
e wid
er EU
2020
stra
tegy
.
The a
udit
focu
ses o
n: (a)
the C
omm
ission
’s man
agem
ent o
f the
Yout
h Act
ion
Team
s (YA
Ts); a
nd (b
) the
Com
miss
ion’s a
ction
s to e
nsur
e a su
cces
sful
impl
emen
tatio
n of t
he Yo
uth G
uara
ntee
.
Depr
ived
urb
an ar
eas
reha
bilit
atio
n
Cities
and u
rban
aggl
omer
ation
s are
the m
ain be
nefic
iaries
of st
ruct
ural
fund
s in f
avou
r of e
cono
mic,
so
cial, a
nd te
rrito
rial c
ohes
ion, a
s the
prop
ortio
n of t
he EU
’s pop
ulat
ion re
sidin
g in u
rban
area
s has
been
gr
owin
g con
stant
ly. D
ispar
ities
betw
een u
rban
popu
lation
s hav
e also
been
grow
ing a
nd m
ost m
ajor E
U cit
ies ha
ve to
face
the c
halle
nges
of de
aling
with
depr
ived u
rban
area
s. Th
e reg
ener
ation
of de
prive
d ur
ban a
reas
has t
here
fore
beco
me a
n issu
e whi
ch is
of gr
eat i
nter
est t
o the
Euro
pean
Parli
amen
t, th
e EU
Mem
ber S
tate
s, an
d the
Euro
pean
Com
miss
ion.
The a
udit
will a
sses
s whe
ther
supp
ort f
rom
stru
ctur
al fu
nds i
s effe
ctive
in
fund
ing p
rojec
ts to
rege
nera
te de
prive
urba
n are
as.
Appendix
10 EU
ROPE
AN CO
URT O
F AUD
ITOR
S – SP
ECIA
L REP
ORTS
TO B
E ADO
PTED
IN 20
15Au
dit s
ubje
ctAr
ea d
escr
iptio
nOb
ject
ive o
f the
task
Pres
erva
tion
and
man
agem
ent o
f nat
ural
reso
urce
s
Emiss
ions
Trad
ing
Sche
me
Since
2005
, the
EU Em
ission
s Tra
ding
Sche
me (
ETS)
wor
ks on
the “
cap a
nd tr
ade”
prin
ciple,
i.e. t
here
is a
limit
to th
e tot
al am
ount
of ce
rtain
gree
nhou
se ga
ses t
hat c
an be
emitt
ed by
fact
ories
, pow
er pl
ants
and
othe
r ins
talla
tions
. With
in th
is ca
p, co
mpa
nies
can r
eceiv
e em
ission
allow
ance
s whi
ch th
ey ca
n sell
to or
bu
y fro
m on
e ano
ther
as ne
eded
. The
ETS c
over
s alm
ost h
alf of
EU pr
oduc
ed gr
eenh
ouse
gase
s. It
is,
ther
efor
e, on
e of t
he m
ain to
ols to
achi
eve t
he EU
’s red
uctio
n tar
gets
follo
wing
the K
yoto
prot
ocol.
To ex
amin
e whe
ther
the E
U Em
ission
s Tra
ding
Sche
me i
s man
aged
ad
equa
tely
and,
in pa
rticu
lar, w
heth
er th
ere i
s an a
ppro
priat
e fra
mew
ork
for p
rote
ctin
g the
inte
grity
of th
e sch
eme a
nd w
heth
er th
e sys
tem
has b
een
corre
ctly
impl
emen
ted.
Is EU
supp
ort f
or
prev
entin
g an
d re
stor
ing
dam
age t
o fo
rest
s cau
sed
by fi
re
and
natu
ral d
isast
ers
wel
l man
aged
?
The E
urop
ean A
gricu
lture
Fund
for R
ural
Deve
lopm
ent (
EAFR
D) pr
ovid
es su
ppor
t for
resto
ring f
ores
ts da
mag
ed by
natu
ral d
isaste
rs an
d fire
and a
lso fo
r pre
vent
ion ac
tions
. The
latte
r con
cern
s for
ests
unde
r hi
gh or
med
ium
fore
st fir
e risk
acco
rdin
g to f
ores
t pro
tect
ion pl
ans s
et up
by M
embe
r Sta
tes.
Priva
te an
d pu
blic
fore
sts ar
e elig
ible
and t
he to
tal c
osts
of th
e int
erve
ntion
s may
be su
ppor
ted,
rega
rdles
s of
owne
rship
or th
e am
ount
s req
uire
d.
To as
sess
whet
her t
he EA
FRD
supp
ort m
easu
re fo
r res
torin
g for
estry
po
tent
ial an
d int
rodu
cing p
reve
ntive
actio
ns ha
s bee
n well
man
aged
and
whet
her t
he Co
mm
ission
and t
he M
embe
r Sta
tes c
an de
mon
strat
e tha
t the
su
ppor
t ach
ieved
its i
nten
ded o
bjec
tives
in a
cost-
effe
ctive
way
.
Erro
rs in
rura
l dev
elop
-m
ent s
pend
ing:
wha
t ar
e the
caus
es, a
nd h
ow
are t
hey b
eing
ad
dres
sed?
The E
U all
ocat
ed al
mos
t €10
0 billi
on to
achi
evin
g rur
al de
velop
men
t obj
ectiv
es du
ring t
he 20
07-2
013
prog
ram
min
g per
iod. A
roun
d half
of th
is am
ount
is sp
ent o
n inv
estm
ent m
easu
res,
such
as th
e mod
erni
-sa
tion o
f agr
icultu
ral h
oldin
gs an
d im
prov
ing b
asic
serv
ices f
or th
e rur
al po
pulat
ion. T
he re
st is
alloc
ated
to
mea
sure
s suc
h as a
gri-e
nviro
nmen
tal s
ubsid
ies. O
ver t
he pa
st fe
w ye
ars,
the E
CA’s w
ork h
as id
entif
ied
high
erro
r rat
es in
this
area
. The
sign
ifica
nt le
vel o
f non
-com
plian
ce w
ith ap
plica
ble r
ules
may
ham
per t
he
atta
inm
ent o
f rur
al de
velop
men
t poli
cy ob
jectiv
es.
To id
entif
y the
main
caus
es of
erro
rs in
rura
l dev
elopm
ent m
easu
res a
nd to
as
sess
whet
her t
he ac
tion p
lans a
nd th
e new
EU le
gal f
ram
ewor
k hav
e the
po
tent
ial to
addr
ess t
hese
caus
es ef
fect
ively.
Tech
nica
l Ass
istan
ce:
wha
t con
trib
utio
n ha
s it
mad
e to a
gricu
lture
an
d ru
ral d
evel
opm
ent?
Tech
nica
l assi
stanc
e is a
sour
ce of
EU su
ppor
t for
a wi
de ra
nge o
f act
ivitie
s in v
ariou
s poli
cy ar
eas,
inclu
ding
agric
ultu
re an
d rur
al de
velop
men
t. Te
chni
cal a
ssista
nce i
s ava
ilabl
e for
both
the C
omm
ission
an
d Mem
ber S
tate
s. It
can c
over
the c
osts
not j
ust o
f ext
erna
l exp
erts,
mee
tings
, sem
inar
s, stu
dies
, ne
twor
king,
info
rmat
ion, a
nd co
mm
unica
tion a
ctivi
ties b
ut al
so th
e dev
elopm
ent a
nd m
ainte
nanc
e of IT
sy
stem
s as w
ell as
staf
f cos
ts.
To ex
amin
e whe
ther
the t
echn
ical a
ssista
nce i
n the
area
of Ag
ricul
ture
and
rura
l dev
elopm
ent i
s well
man
aged
.
Are f
inan
cial i
nstr
u-m
ents
a su
cces
sful
and
prom
ising
tool
in th
e ru
ral d
evel
opm
ent
area
?
Finan
cial e
ngin
eerin
g ins
trum
ents
(FEIs
) wer
e firs
t int
rodu
ced i
nto r
ural
deve
lopm
ent i
n the
prog
ram
min
g pe
riod 2
000-
2006
. The
y wer
e int
ende
d to h
elp fa
rmer
s and
small
scale
rura
l bus
ines
ses a
cces
s cap
ital. T
he
set o
f FEIs
inclu
des v
entu
re ca
pita
l fun
ds, g
uara
ntee
fund
s, an
d cre
dit l
oan f
unds
. The
com
mon
feat
ure o
f all
thes
e ins
trum
ents
is th
at, u
nlike
gran
ts, th
ey ca
n be r
euse
d and
shou
ld at
tract
addi
tiona
l pub
lic or
pr
ivate
capi
tal in
to ru
ral d
evelo
pmen
t. Th
e use
of FE
Is is
optio
nal fo
r Mem
ber S
tate
s and
arra
ngem
ents
are
to be
defin
ed in
the r
ural
deve
lopm
ent p
rogr
amm
es.
To ex
amin
e whe
ther
the f
inan
cial e
ngin
eerin
g ins
trum
ents
in ru
ral
deve
lopm
ent a
re on
the r
ight
trac
k and
in pa
rticu
lar, w
heth
er pr
actic
al ex
perie
nce c
onfir
ms t
heir
expe
cted a
dvan
tage
s.
Know
ledg
e tra
nsfe
r an
d ad
viso
ry m
easu
res
in ru
ral d
evel
opm
ent
In th
e cur
rent
rura
l dev
elopm
ent p
rogr
amm
ing p
eriod
. EU
supp
ort i
n the
form
of tr
ainin
g and
advis
ory
serv
ices i
s aim
ed at
peop
le in
volve
d in a
gricu
ltura
l, foo
d, an
d for
estry
activ
ities
as w
ell as
small
busin
esse
s in
rura
l are
as. “
Foste
ring k
nowl
edge
tran
sfer a
nd in
nova
tion i
n agr
icultu
re, fo
restr
y, an
d rur
al ar
eas”
is a
cross-
cutti
ng pr
iority
in th
e new
prog
ram
min
g per
iod 20
14-2
020.
The o
vera
ll risk
is th
at fi
nanc
ial su
ppor
t en
ds up
as a
hand
-out
for t
rain
ing p
rovid
ers a
nd co
nsul
tanc
ies w
ithou
t tan
gibl
e ben
efits
for t
he ec
o-no
mic,
tech
nolog
ical a
nd en
viron
men
tal p
erfo
rman
ce of
their
cour
se pa
rticip
ants
or cl
ients.
To as
sess
whet
her m
anag
emen
t and
cont
rol s
yste
ms a
re in
plac
e to d
elive
r ru
ral d
evelo
pmen
t kno
wled
ge tr
ansfe
r and
advis
ory m
easu
res e
ffect
ively.
Appendix
11 EU
ROPE
AN CO
URT O
F AUD
ITOR
S – SP
ECIA
L REP
ORTS
TO B
E ADO
PTED
IN 20
15Au
dit s
ubje
ctAr
ea d
escr
iptio
nOb
ject
ive o
f the
task
Pres
erva
tion
and
man
agem
ent o
f nat
ural
reso
urce
s
Non-
prod
uctiv
e in
vest
men
ts in
Rur
al
Deve
lopm
ent (
mea
sure
21
6)
Supp
ort f
rom
the E
urop
ean A
gricu
ltura
l Fun
d for
Rura
l Dev
elopm
ent t
o non
-pro
duct
ive in
vestm
ents
(NPI
s) is
gran
ted f
or no
n-re
mun
erat
ive in
vestm
ents
when
they
are n
eces
sary
to ac
hiev
e com
mitm
ents
unde
r-ta
ken u
nder
agri-
envir
onm
enta
l sch
emes
or to
enha
nce o
n-fa
rm th
e pub
lic am
enity
valu
e of N
atur
a 200
0 ar
eas a
nd ot
her a
reas
of hi
gh na
tura
l valu
e. Th
e inv
estm
ents
supp
orte
d hav
e thu
s a co
mpl
emen
tary
role
to he
lp ac
hiev
e env
ironm
enta
l obj
ectiv
es pr
edom
inan
tly pu
rsued
by ot
her r
ural
deve
lopm
ent m
easu
res o
r na
tiona
l sch
emes
with
larg
er fi
nanc
ial al
locat
ions.
The s
uppo
rt m
ay co
ver 1
00 %
of th
e elig
ible
costs
.
To ex
amin
e whe
ther
non-
prod
uctiv
e inv
estm
ents
prov
ide a
cost-
effe
ctive
co
ntrib
ution
to ac
hiev
ing t
he en
viron
men
tal o
bjec
tives
of th
e rur
al de
velop
men
t poli
cy.
Fish
erie
s Par
tner
ship
Ag
reem
ents
The o
bjec
tive o
f the
Fish
eries
Partn
ersh
ip Ag
reem
ents
(FPA
s) is
to he
lp to
main
tain
empl
oym
ent i
n the
EU
fishe
ries s
ecto
r and
to en
sure
supp
ly of
the E
U m
arke
t. Th
e FPA
s are
desig
ned t
o ens
ure s
usta
inab
ility b
y lim
iting
fish
ing r
ight
s to t
he su
rplu
s fish
eries
reso
urce
s. Th
ey ai
m to
deve
lop fi
sher
ies se
ctor
of pa
rtner
co
untri
es by
requ
iring
the b
ulk o
f the
mon
ey pa
id fo
r fish
ing r
ight
s to b
e rein
veste
d in a
sect
orial
fish
eries
po
licy.
To as
sess
whet
her t
he pr
oces
s of n
egot
iatin
g and
subs
eque
nt im
plem
enta
-tio
n of F
PAs i
s well
man
aged
by th
e Com
miss
ion.
Citiz
ensh
ip, f
reed
om, s
ecur
ity an
d ju
stice
Anim
al d
iseas
e era
dica
-tio
n, co
ntro
l and
m
onito
ring
prog
ram
mes
The E
U fin
ancia
l con
tribu
tion t
o Mem
ber S
tate
s for
the e
radi
catio
n, co
ntro
l and
mon
itorin
g pro
gram
mes
of
certa
in an
imal
dise
ases
and z
oono
ses r
epre
sent
s the
larg
est a
mou
nt of
expe
nditu
re un
der t
he EU
food
sa
fety
budg
et. T
hese
prog
ram
mes
have
thre
e main
objec
tives
: (i) t
o pro
gres
sively
elim
inat
e ani
mal
dise
ases
and t
o im
plem
ent d
iseas
e mon
itorin
g mea
sure
s in M
embe
r Sta
tes a
nd th
e EU
as a
whole
; (ii)
to
ensu
re a
high
leve
l of a
nim
al he
alth,
publ
ic he
alth a
nd co
nsum
er pr
otec
tion;
and (
iii) to
impr
ove t
he
econ
omic
susta
inab
ility o
f the
sect
ors d
irect
ly or
indi
rect
ly af
fecte
d by a
n ani
mal
dise
ase o
utbr
eak.
To as
sess
whet
her t
he an
imal
dise
ase e
radi
catio
n, co
ntro
l and
mon
itorin
g pr
ogra
mm
es ad
equa
tely
restr
ain an
imal
dise
ases
.
The E
U as
a gl
obal
pla
yer
Coop
erat
ion
with
third
co
untr
ies o
n m
igra
tion
and
asyl
um
The G
lobal
Appr
oach
to M
igra
tion a
nd M
obilit
y (GA
MM)
is th
e ove
rarch
ing f
ram
ewor
k of t
he EU
’s ext
erna
l m
igra
tion p
olicy
. Its i
mpl
emen
tatio
n res
ts on
a ra
nge o
f mea
sure
s and
instr
umen
ts, in
cludi
ng th
e DC
I-fun
ded T
hem
atic
Prog
ram
me o
n Mig
ratio
n and
Asy
lum
(TPM
A), a
s well
as ge
ogra
phica
l instr
umen
ts lik
e the
Euro
pean
Neig
hbou
rhoo
d and
Partn
ersh
ip In
strum
ent.
The T
PMA a
ims t
o assi
st th
ird co
untri
es to
be
tter m
anag
e mig
ratio
n in a
ll of it
s dim
ensio
ns.
To as
sess
whet
her t
he EU
supp
ort t
o neig
hbou
rhoo
d cou
ntrie
s for
mig
ra-
tion,
mob
ility,
and a
sylu
m is
well
coor
dina
ted a
nd ef
fect
ive.
EUPO
L Af
ghan
istan
EUPO
L sta
nds f
or EU
Polic
e miss
ion. T
he Co
mm
on Se
curit
y and
Def
ence
Polic
y (CS
DP) h
as be
com
e an
impo
rtant
part
of th
e Com
mon
Fore
ign a
nd Se
curit
y Poli
cy (C
FSP)
, not
ably
with
the d
eploy
men
t of c
ivilia
n an
d milit
ary m
ission
s to r
espo
nd to
the i
ncre
asin
g sec
urity
chall
enge
s fac
ed by
the E
U. Th
e dep
loym
ent o
f a C
SDP m
ission
is a
key i
nstru
men
t for
the E
U to
deve
lop a
cohe
rent
fore
ign p
olicy
and i
ncre
ase t
he U
nion
’s in
fluen
ce in
the w
orld
.
To as
sess
whet
her E
UPOL
Afgh
anist
an w
as w
ell pl
anne
d, im
plem
ente
d and
co
ordi
nate
d and
whe
ther
it ac
hiev
ed it
s int
ende
d obj
ectiv
es.
Dem
ocra
cy, h
uman
rig
hts a
nd fu
ndam
enta
l fr
eedo
ms -
Tort
ure /
De
ath
pena
lty
EU Tr
eaty
artic
le 21
prov
ides
that
the E
U’s e
xter
nal a
ction
shall
be gu
ided
by th
e prin
ciple
of de
moc
racy
, ru
le of
law,
and h
uman
righ
ts. Th
e Eur
opea
n Ins
trum
ent f
or D
emoc
racy
and H
uman
Righ
ts (E
IDHR
) fun
ds
hum
an ri
ghts
proje
cts a
nd in
itiat
ives a
roun
d the
wor
ld ac
cord
ing t
o rele
vant
EU po
licies
.
To as
sess
whet
her t
he pr
omot
ion by
the E
IDHR
of pr
even
tion o
f tor
ture
, re
habi
litat
ion of
vict
ims o
f tor
ture
and t
he ab
olitio
n of t
he de
ath p
enalt
y is
effe
ctive
.
Appendix
12 EU
ROPE
AN CO
URT O
F AUD
ITOR
S – SP
ECIA
L REP
ORTS
TO B
E ADO
PTED
IN 20
15Au
dit s
ubje
ctAr
ea d
escr
iptio
nOb
ject
ive o
f the
task
The E
U as
a gl
obal
pla
yer
Rene
wab
le en
ergy
in
East
ern
Afric
a
Acce
ss to
ener
gy is
a pr
e-re
quisi
te to
mee
t mos
t Mille
nniu
m D
evelo
pmen
t Goa
ls an
d is v
ital fo
r pov
erty
er
adica
tion,
healt
h, ed
ucat
ion, a
gricu
lture
, and
econ
omic
deve
lopm
ent.
Afric
a has
huge
rene
wabl
e ene
rgy
pote
ntial
to m
eet g
rowi
ng en
ergy
need
s. In
June
2005
, the
ACP-
EU Co
uncil
appr
oved
the c
reat
ion of
the
Ener
gy Fa
cility
to su
ppor
t pro
jects
aimed
at im
prov
ing a
nd in
creas
ing a
cces
s to m
oder
n, af
ford
able,
and
susta
inab
le en
ergy
serv
ices f
or th
e poo
r livi
ng in
rura
l and
perip
hera
l urb
an ar
eas i
n ACP
coun
tries
.
To as
sess
whet
her t
he Co
mm
ission
mad
e goo
d use
of th
e EU
Ener
gy Fa
cility
to
prom
ote a
cces
s to r
enew
able
ener
gy fo
r the
poor
in Ea
stern
Afric
a.
EU as
sista
nce t
o Uk
rain
e
Ukra
ine i
s the
mos
t im
porta
nt of
the E
urop
ean N
eighb
ourh
ood a
nd Pa
rtner
ship
Instr
umen
t (EN
PI) E
ast
coun
tries
and o
ccup
ies a
key g
eopo
litica
l pos
ition
sinc
e ind
epen
denc
e in 1
991.
Ukra
ine r
eceiv
es EU
as
sista
nce m
ainly
thro
ugh t
he EN
PI w
ith bu
dget
supp
ort.
To as
sess
whet
her t
he Co
mm
ission
has m
anag
ed bu
dget
supp
ort t
o Ukr
aine
well i
n the
area
of pu
blic
finan
ce m
anag
emen
t and
in th
e sec
tor o
f ene
rgy.
Trop
ical f
ores
ts
inclu
ding
FLEG
T
The w
orld
’s for
ests
cove
r 30 %
of th
e ear
th’s l
and s
urfa
ce. T
hey c
ontri
bute
to th
e fer
tility
of ag
ricul
tura
l lan
d, pr
otec
ting w
ater
sour
ces a
nd re
ducin
g the
risk
s of n
atur
al di
saste
rs. Th
ey ar
e an i
mpo
rtant
fact
or in
cli
mat
e cha
nge.
Fore
sts ca
n play
an im
porta
nt ro
le in
the a
chiev
emen
t of t
he U
N M
illenn
ium
Dev
elopm
ent
Goals
for e
radi
catin
g ext
rem
e pov
erty
and h
unge
r and
ensu
ring e
nviro
nmen
tal s
tabi
lity.
Illega
l logg
ing i
s an
impo
rtant
caus
e of d
efor
esta
tion.
FLEG
T sta
nds f
or Fo
rest
Law
Enfo
rcem
ent,
Gove
rnan
ce an
d Tra
de.
To as
sess
whet
her t
he Co
mm
ission
man
aged
well
the s
uppo
rt pr
ovid
ed
unde
r the
EU FL
EGT A
ction
Plan
to ti
mbe
r-pro
ducin
g cou
ntrie
s to a
ddre
ss ille
gal lo
ggin
g.
Reve
nue
The e
ffec
tiven
ess o
f the
An
ti VA
T fra
ud st
rate
gy
Tax f
raud
crea
tes a
sign
ifica
nt di
storti
on in
the f
unct
ionin
g of t
he in
tern
al m
arke
t, pr
even
ts fa
ir co
mpe
ti-tio
n and
erod
es re
venu
e tha
t cou
ld be
used
for p
rovid
ing p
ublic
serv
ices a
nd in
vestm
ents
at na
tiona
l leve
l. VA
T fra
ud af
fect
s the
fina
ncial
inte
rests
of th
e EU
as it
lead
s to l
ess V
AT be
ing c
ollec
ted a
nd, t
here
by,
lower
s the
VAT-
base
d rev
enue
. Thi
s los
s is c
ompe
nsat
ed by
the G
NI-b
ased
own r
esou
rce, le
adin
g to a
di
storte
d dist
ribut
ion of
the c
ontri
butio
n to E
U re
venu
e bet
ween
Mem
ber S
tate
s. Th
e own
reso
urce
s sy
stem
need
s to b
e “fa
ir an
d tra
nspa
rent
” in o
rder
to gu
aran
tee g
ood f
unct
ionin
g of t
he EU
.
To ch
eck w
heth
er th
e Com
miss
ion’s a
nti V
AT fr
aud s
trate
gy ha
s bee
n ef
fect
ive.
Adm
inist
ratio
n Eu
rope
an Ex
tern
al
Actio
n Se
rvice
man
age-
men
t of d
eleg
atio
n bu
ildin
gs: a
re th
ey
gett
ing
it rig
ht?
Since
its f
orm
ation
on 1
Janu
ary 2
011,
the E
urop
ean E
xter
nal A
ction
Serv
ice (E
EAS)
has b
ecom
e res
pons
i-bl
e for
all 1
44 de
legat
ions p
revio
usly
unde
r the
resp
onsib
ility o
f the
Com
miss
ion. T
he EE
AS is
also
re
spon
sible
for t
he re
siden
ces o
f hea
ds of
deleg
ation
and t
he pr
ovisi
on of
acco
mm
odat
ion fo
r som
e 2 40
0 sta
ff. Th
e ann
ual b
udge
t for
the d
elega
tion b
uild
ings
is in
the o
rder
of €1
60 m
illion
.
To as
sess
whet
her t
he EE
AS ha
s a re
levan
t and
cohe
rent
build
ings
stra
tegy
wh
ich re
spon
ds to
orga
nisa
tiona
l nee
ds an
d whe
ther
it m
anag
es de
legat
ion
build
ings
in or
der t
o mee
t org
anisa
tiona
l nee
ds in
an ec
onom
ic an
d ef
ficien
t way
.
Gran
t Man
agem
ent i
n Ag
encie
s and
Join
t Un
dert
akin
gs
Ther
e are
10 EU
agen
cies w
hich
fina
nce b
enef
iciar
ies’ p
rojec
ts th
roug
h gra
nts.
90%
of th
e gra
nts a
re
fund
ed by
four
agen
cies.
The J
oint U
nder
takin
gs (J
Us) a
im to
supp
ort c
ollab
orat
ive re
sear
ch in
their
re
spec
tive d
omain
s. Th
ey co
mbi
ne pr
ivate
-sect
or in
vestm
ent w
ith EU
and n
ation
al pu
blic
fund
ing.
No
n-EU
coun
tries
can a
lso be
invo
lved.
To ch
eck w
heth
er th
e gra
nt m
anag
emen
t is e
ffect
ive an
d effi
cient
.
Appendix
13
EURO
PEAN
COUR
T OF A
UDIT
ORS –
SPEC
IAL R
EPOR
TS TO
BE A
DOPT
ED IN
2015
Audi
t sub
ject
Area
des
crip
tion
Obje
ctiv
e of t
he ta
skTh
e EU
as a
glob
al p
laye
r
Rene
wab
le en
ergy
in
East
ern
Afric
a
Acce
ss to
ener
gy is
a pr
e-re
quisi
te to
mee
t mos
t Mille
nniu
m D
evelo
pmen
t Goa
ls an
d is v
ital fo
r pov
erty
er
adica
tion,
healt
h, ed
ucat
ion, a
gricu
lture
, and
econ
omic
deve
lopm
ent.
Afric
a has
huge
rene
wabl
e ene
rgy
pote
ntial
to m
eet g
rowi
ng en
ergy
need
s. In
June
2005
, the
ACP-
EU Co
uncil
appr
oved
the c
reat
ion of
the
Ener
gy Fa
cility
to su
ppor
t pro
jects
aimed
at im
prov
ing a
nd in
creas
ing a
cces
s to m
oder
n, af
ford
able,
and
susta
inab
le en
ergy
serv
ices f
or th
e poo
r livi
ng in
rura
l and
perip
hera
l urb
an ar
eas i
n ACP
coun
tries
.
To as
sess
whet
her t
he Co
mm
ission
mad
e goo
d use
of th
e EU
Ener
gy Fa
cility
to
prom
ote a
cces
s to r
enew
able
ener
gy fo
r the
poor
in Ea
stern
Afric
a.
EU as
sista
nce t
o Uk
rain
e
Ukra
ine i
s the
mos
t im
porta
nt of
the E
urop
ean N
eighb
ourh
ood a
nd Pa
rtner
ship
Instr
umen
t (EN
PI) E
ast
coun
tries
and o
ccup
ies a
key g
eopo
litica
l pos
ition
sinc
e ind
epen
denc
e in 1
991.
Ukra
ine r
eceiv
es EU
as
sista
nce m
ainly
thro
ugh t
he EN
PI w
ith bu
dget
supp
ort.
To as
sess
whet
her t
he Co
mm
ission
has m
anag
ed bu
dget
supp
ort t
o Ukr
aine
well i
n the
area
of pu
blic
finan
ce m
anag
emen
t and
in th
e sec
tor o
f ene
rgy.
Trop
ical f
ores
ts
inclu
ding
FLEG
T
The w
orld
’s for
ests
cove
r 30 %
of th
e ear
th’s l
and s
urfa
ce. T
hey c
ontri
bute
to th
e fer
tility
of ag
ricul
tura
l lan
d, pr
otec
ting w
ater
sour
ces a
nd re
ducin
g the
risk
s of n
atur
al di
saste
rs. Th
ey ar
e an i
mpo
rtant
fact
or in
cli
mat
e cha
nge.
Fore
sts ca
n play
an im
porta
nt ro
le in
the a
chiev
emen
t of t
he U
N M
illenn
ium
Dev
elopm
ent
Goals
for e
radi
catin
g ext
rem
e pov
erty
and h
unge
r and
ensu
ring e
nviro
nmen
tal s
tabi
lity.
Illega
l logg
ing i
s an
impo
rtant
caus
e of d
efor
esta
tion.
FLEG
T sta
nds f
or Fo
rest
Law
Enfo
rcem
ent,
Gove
rnan
ce an
d Tra
de.
To as
sess
whet
her t
he Co
mm
ission
man
aged
well
the s
uppo
rt pr
ovid
ed
unde
r the
EU FL
EGT A
ction
Plan
to ti
mbe
r-pro
ducin
g cou
ntrie
s to a
ddre
ss ille
gal lo
ggin
g.
Reve
nue
The e
ffec
tiven
ess o
f the
An
ti VA
T fra
ud st
rate
gy
Tax f
raud
crea
tes a
sign
ifica
nt di
storti
on in
the f
unct
ionin
g of t
he in
tern
al m
arke
t, pr
even
ts fa
ir co
mpe
ti-tio
n and
erod
es re
venu
e tha
t cou
ld be
used
for p
rovid
ing p
ublic
serv
ices a
nd in
vestm
ents
at na
tiona
l leve
l. VA
T fra
ud af
fect
s the
fina
ncial
inte
rests
of th
e EU
as it
lead
s to l
ess V
AT be
ing c
ollec
ted a
nd, t
here
by,
lower
s the
VAT-
base
d rev
enue
. Thi
s los
s is c
ompe
nsat
ed by
the G
NI-b
ased
own r
esou
rce, le
adin
g to a
di
storte
d dist
ribut
ion of
the c
ontri
butio
n to E
U re
venu
e bet
ween
Mem
ber S
tate
s. Th
e own
reso
urce
s sy
stem
need
s to b
e “fa
ir an
d tra
nspa
rent
” in o
rder
to gu
aran
tee g
ood f
unct
ionin
g of t
he EU
.
To ch
eck w
heth
er th
e Com
miss
ion’s a
nti V
AT fr
aud s
trate
gy ha
s bee
n ef
fect
ive.
Adm
inist
ratio
n Eu
rope
an Ex
tern
al
Actio
n Se
rvice
man
age-
men
t of d
eleg
atio
n bu
ildin
gs: a
re th
ey
gett
ing
it rig
ht?
Since
its f
orm
ation
on 1
Janu
ary 2
011,
the E
urop
ean E
xter
nal A
ction
Serv
ice (E
EAS)
has b
ecom
e res
pons
i-bl
e for
all 1
44 de
legat
ions p
revio
usly
unde
r the
resp
onsib
ility o
f the
Com
miss
ion. T
he EE
AS is
also
re
spon
sible
for t
he re
siden
ces o
f hea
ds of
deleg
ation
and t
he pr
ovisi
on of
acco
mm
odat
ion fo
r som
e 2 40
0 sta
ff. Th
e ann
ual b
udge
t for
the d
elega
tion b
uild
ings
is in
the o
rder
of €1
60 m
illion
.
To as
sess
whet
her t
he EE
AS ha
s a re
levan
t and
cohe
rent
build
ings
stra
tegy
wh
ich re
spon
ds to
orga
nisa
tiona
l nee
ds an
d whe
ther
it m
anag
es de
legat
ion
build
ings
in or
der t
o mee
t org
anisa
tiona
l nee
ds in
an ec
onom
ic an
d ef
ficien
t way
.
Gran
t Man
agem
ent i
n Ag
encie
s and
Join
t Un
dert
akin
gs
Ther
e are
10 EU
agen
cies w
hich
fina
nce b
enef
iciar
ies’ p
rojec
ts th
roug
h gra
nts.
90%
of th
e gra
nts a
re
fund
ed by
four
agen
cies.
The J
oint U
nder
takin
gs (J
Us) a
im to
supp
ort c
ollab
orat
ive re
sear
ch in
their
re
spec
tive d
omain
s. Th
ey co
mbi
ne pr
ivate
-sect
or in
vestm
ent w
ith EU
and n
ation
al pu
blic
fund
ing.
No
n-EU
coun
tries
can a
lso be
invo
lved.
To ch
eck w
heth
er th
e gra
nt m
anag
emen
t is e
ffect
ive an
d effi
cient
.
EURO
PEAN
COUR
T OF A
UDIT
ORS –
SPEC
IAL R
EPOR
TS TO
BE A
DOPT
ED IN
2015
Audi
t sub
ject
Area
des
crip
tion
Obje
ctiv
e of t
he ta
skFi
nanc
ial a
nd ec
onom
ic go
vern
ance
Has t
he im
plem
enta
-tio
n of
the B
OP an
d EF
SM b
een
man
aged
ap
prop
riate
ly b
y the
Co
mm
issio
n?
Balan
ce of
paym
ents
supp
ort (
BOP)
enta
ils m
ediu
m te
rm lo
ans g
rant
ed to
non-
euro
area
Mem
ber S
tate
s to
help
resto
re co
nfid
ence
in th
eir ec
onom
ies an
d sup
port
refo
rm. T
he lo
ans a
re fi
nanc
ed th
roug
h ba
ck-to
-bac
k bor
rowi
ngs o
n the
capi
tal m
arke
ts by
the E
urop
ean U
nion
(off-
budg
et op
erat
ions),
ther
eby
bene
fitin
g fro
m th
e EU’
s fav
oura
ble c
redi
t rat
ing.
The p
refe
rent
ial in
tere
st ra
tes a
re pa
ssed
on to
the
bene
ficiar
y cou
ntrie
s whi
ch w
ould
othe
rwise
have
to bo
rrow
at hi
gher
cost.
Fina
ncial
assis
tanc
e to
euro
-are
a Mem
ber S
tate
s is v
ery s
imila
r. The
Euro
pean
Fina
ncial
Stab
ilisat
ion M
echa
nism
(EFS
M)
esse
ntial
ly re
prod
uces
the b
asic
mec
hani
cs of
the B
OP Re
gulat
ion.
EFSM
was
esta
blish
ed in
May
2010
and a
llows
max
imum
fina
ncin
g of €
60 bi
llion.
Und
er th
e EFS
M th
e Co
mm
ission
is al
lowed
to bo
rrow
on th
e fin
ancia
l mar
kets
on be
half o
f the
EU. T
he Co
mm
ission
then
lend
s th
e pro
ceed
s on t
o the
bene
ficiar
y Mem
ber S
tate
. The
bene
ficiar
y Mem
ber S
tate
repa
ys th
e loa
n prin
cipal
as w
ell as
all in
tere
st.
The E
FSM
has b
een a
ctiva
ted f
or Ir
eland
and P
ortu
gal fo
r a to
tal a
mou
nt up
to €4
8.5 b
illion
to be
dis-
burse
d ove
r 3 ye
ars (
2011
–201
3).
To ch
eck i
f the
fina
ncial
assis
tanc
e pro
vided
thro
ugh B
OP an
d EFS
M w
as
man
aged
in a
way w
hich
effe
ctive
ly co
ntrib
uted
to th
e im
prov
emen
t of t
he
econ
omic
situa
tion o
f the
Mem
ber S
tate
s con
cern
ed.
Is th
e exc
essiv
e def
icit
proc
edur
e sou
ndly
ba
sed
and
adeq
uate
ly
impl
emen
ted?
Unde
r the
Stab
ility a
nd G
row
th Pa
ct (S
GP), M
embe
r Sta
tes m
ust a
void
exce
ssive
publ
ic de
ficits
(3 %
of
GDP)
and e
xces
sive d
ebt (
60%
of G
DP) i
n ord
er no
t to p
ut fi
scal
susta
inab
ility a
t risk
. The
Exce
ssive
Def
icit
Proc
edur
e (ED
P) is
trig
gere
d whe
n Mem
ber S
tate
s do n
ot re
spec
t the
thre
shold
s. In
resp
ondi
ng to
the
econ
omic
and d
ebt c
risis,
the C
omm
ission
has i
ntro
duce
d tig
hter
surv
eillan
ce of
EU ec
onom
ic an
d fisc
al po
licies
.
To as
sess
whet
her t
he ED
P is b
ased
on so
und i
ndica
tors,
appr
opria
te
thre
shold
s, an
d reli
able
data
and w
heth
er it
is ad
equa
tely
impl
emen
ted.
Was
the C
omm
issio
n’s
inte
rven
tion
in th
e Gr
eek f
inan
cial c
risis
effe
ctiv
e?
The a
im of
the e
cono
mic
adju
stmen
t pro
gram
mes
for G
reec
e has
been
to su
ppor
t the
Gre
ek go
vern
men
t’s
effo
rts to
resto
re fi
scal
susta
inab
ility a
nd to
impl
emen
t stru
ctur
al re
form
s in o
rder
to im
prov
e the
co
mpe
titive
ness
of th
e eco
nom
y whi
le re
gain
ing t
he co
nfid
ence
of th
e fin
ancia
l mar
kets.
Finan
cial s
uppo
rt in
the f
orm
of lo
ans w
ith a
wide
rang
e of m
atur
ities
was
acco
mpa
nied
by ec
onom
ic po
licy c
ondi
tiona
lity.
To as
sess
whet
her t
he Co
mm
ission
’s int
erve
ntion
in th
e Gre
ek fi
nanc
ial
crisis
was
effe
ctive
and w
heth
er it
incre
ased
the c
onfid
ence
of th
e fin
ancia
l m
arke
ts in
the E
MU.
Audi
t of t
he re
form
of
the r
egul
ator
y and
su
perv
isory
syst
ems:
ESM
A
As pa
rt of
its r
espo
nse t
o the
fina
ncial
crisi
s the
Com
miss
ion se
t up t
hree
new
Euro
pean
Supe
rviso
ry
Auth
oriti
es (E
SAs)
in 20
11 to
supe
rvise
the f
inan
cial s
ecto
r: th
e Eur
opea
n Ban
king A
utho
rity (
EBA)
, the
Eu
rope
an Se
curit
ies an
d Mar
kets
Auth
ority
(ESM
A), a
nd th
e Eur
opea
n Ins
uran
ce an
d Occ
upat
ional
Pens
ions A
utho
rity (
EIOPA
). Of a
ll thr
ee ES
As, E
SMA i
s the
Auth
ority
that
has b
een c
onfro
nted
with
the
mos
t int
ensiv
e reg
ulat
ory w
orklo
ad du
e to w
ide-
rang
ing l
egisl
ative
activ
ity in
cludi
ng th
e rev
ision
of
exist
ing l
egisl
ation
and a
num
ber o
f new
Dire
ctive
s and
Regu
lation
s. Its
miss
ion is
to en
hanc
e the
pr
otec
tion o
f inve
stors
and t
o pro
mot
e sta
ble a
nd w
ell-fu
nctio
ning
fina
ncial
mar
kets
in th
e Eur
opea
n Un
ion. E
SMA a
chiev
es th
is aim
by bu
ildin
g a si
ngle
ruleb
ook f
or EU
fina
ncial
mar
kets,
risk
mon
itorin
g, an
d an
alysis
of se
curit
ies m
arke
ts an
d sup
ervis
ion, e
ither
dire
ct or
thro
ugh t
he ac
tive c
o-or
dina
tion o
f nat
ional
supe
rviso
ry ac
tivity
.
To co
mpl
emen
t the
ECA’s
audi
t on E
BA by
prov
idin
g an a
sses
smen
t of t
he
Com
miss
ion’s r
espo
nse t
o the
regu
lator
y and
supe
rviso
ry re
form
in ot
her
area
s of t
he fi
nanc
ial se
ctor
.
ECB
– Si
ngle
Supe
rvi-
sory
Mec
hani
sm
The S
ingl
e Sup
ervis
ory M
echa
nism
(SSM
) Reg
ulat
ion is
adop
ted i
n Oct
ober
2013
. It co
nfer
s to t
he
Euro
pean
Cent
ral B
ank (
ECB)
spec
ific t
asks
relat
ing t
o the
prud
entia
l sup
ervis
ion of
cred
it in
stitu
tions
. SSM
cre
ates
a ne
w sy
stem
of ba
nkin
g sup
ervis
ion co
mpr
ising
the E
CB an
d the
natio
nal c
ompe
tent
auth
oriti
es
of pa
rticip
atin
g EU
coun
tries
. Am
ong t
hese
EU co
untri
es ar
e tho
se w
hose
curre
ncy i
s the
euro
and t
hose
wh
ose c
urre
ncy i
s not
the e
uro b
ut w
ho ha
ve de
cided
to en
ter i
nto c
lose c
oope
ratio
n with
the S
SM. T
he
main
aim
s of t
he SS
M w
ill be
to en
sure
the s
afet
y and
soun
dnes
s of t
he Eu
rope
an ba
nkin
g sys
tem
and t
o in
creas
e fin
ancia
l inte
grat
ion an
d sta
bilit
y in E
urop
e. Th
e ECB
will
assu
me i
ts ne
w ba
nkin
g sup
ervis
ion
resp
onsib
ilities
in N
ovem
ber 2
014,
12 m
onth
s afte
r the
SSM
Regu
lation
ente
red i
nto f
orce
.
To ve
rify t
he ef
fect
ivene
ss of
the s
uper
visor
y pro
cess
in pr
actic
e.
Appendix
QJ-A
B-14-001-EN-C
ISSN 1831-0834
QJ-A
B-12-025-EN-C
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