CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Experience from programming period 2004-2006

Audit findings & Winding-up activities Ministry of Finance

Audit Authority Department

Jiri PesinaUnit of ERDF, EFF, ESF programmes

CONFERENCE NEW MEMBER STATES18. – 20. APRIL 2011, PLZEŇ

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Outline

• Closure of assistance 2004 – 06 period in Czech Rep.• Winding-up methodology (manual – checklists)

• Winding-up process • Audit findings

• Winding-up barries

• Submission of documents to EC • Open issues

• Experience made

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Closure of assistance 2004 – 06 period in Czech Rep.

Operational programmes – Objective 1

• OP Human Resources Development – ESF

• OP Rural Development and Multifunctional Agriculture – EAGGF, ESF

• OP Industry and Enterprise – ERDF

• OP Infrastructure - ERDF

• Join Regional OP – ERDF, ESF

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Closure of assistance 2004 – 06 period in Czech Rep.

• Operational programmes – Objective 2

Single Programming Document for Prague – ERDF

• Operational programmes – Objective 3

Single Programming Document for Prague – ESF

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Closure of assistance 2004 – 06 period in Czech Rep.

• EQUAL – ESF

• INTEREG IIIA (5X) – ERDF

• INTEREG IIIB – ERFD

• INTEREG IIIC – ERDF

• ESPON – ERDF

• INTERACT - ERDF

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Closure of assistance 2004 – 06 period in Czech Rep.

• ISPA/CF transport section – 8 projects

• ISPA/CF environmental section – 13 projects

• ISPA/CF technical assistance – 5 projects

• CF transport section – 5 projects

• CF environmental section – 25 projects

• CF technical assistance – 1 projects

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Winding-up methodology (manual – checklists)

• EC Closure Guidelines from year 2006 KOM(2006)3424

• Towards a Successful Closure of Structural Funds 2000-2006 Programmes - Answers & Questions and its annexes from 2009,2010

• AA-WuB winding-up guideline for performing the closure audit work (from 2009, updated 2010) A manual was elaborated with E&Y contribution

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Winding-up process

• Desk checks of system audits and sample checks reports (AA-WuB supervision, participation)

• Desk checks of SAO reports

• Desk checks of EC, ECA reports (AA-WuB participation)

• Own on-the-spot checks

(MA, IB, CA, FB)

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Audit findings

Sample checks findings

• Irregularities:

•In most cases, non-elegible project costs and its accounting (accounting records);

•Breaking public procurement rule.

System audits findings

•Stabilization HR (historical memory);

•Methodology (Audit trail);

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Winding-up barries

• Irregularities (following and clearing up irregularities);

• Methodology (should be standardised as far as possible);

• Open findings, additional review of AA-Wu-B declaration;

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Submission of documents to EC

- MA sends the final implementation report after approval from the MC

– PA sends final declaration of expenditure, list of operations, list of irregularities and reimbursements

– AA-Wu-B attaches final audit report and winding up declaration

Documents were sent as a package (via Perm. Rep.)

• 2003 – first CZ winding-up with CF projects• 2010 / 03 – first CZ winding up with operational programme

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Winding-up: open issues

EC reaction:

• Ask for additional information related to irregularities, confirmation data sent;

• Additional audit on winding-up envisaged in one case (from DG REGIO in May 2011);

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

Experience made

• Closure procedure takes more time and energy than expected:

• Setting up the deadlines for collection of Management ‘Closure documents is necessary.

• The work to be done and the timetable should be scheduled in cooperation with every participating body (MA, IB, CA, AA-Wu-B) necessary;

CONFERENCE NEW MEMBER STATES, PLZEŇCONFERENCE NEW MEMBER STATES, PLZEŇ

• Thank you for listeningThank you for listening

Ministry of Finance of the Czech RepublicMinistry of Finance of the Czech Republic

Depatrment of Audit AuthorityDepatrment of Audit Authority

Unit 523 – Audit of ERDF, ESF and EFF programmesUnit 523 – Audit of ERDF, ESF and EFF programmes

jiri.pesina@mfcr.cz jiri.pesina@mfcr.cz