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Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
Compliance assessment
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Compliance assessment

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Model for the Compliance Assessment Exercise …

Model for the Compliance Assessment Exercise

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  • 1. EUROPEAN COMMISSION DG Regional Policy & DG Employment, Social Affairs and Equal Opportunities EN Guidance on Compliance Assessment Technical Group MeetingComplianceAssessment Brussels, 27 March 2007
  • 2. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Outline of the Presentation  Introduction  Legal Basis  Time Limits  Description of the Management and Control Systems  Planning  Work to be carried out  Report and Opinion on ComplianceComplianceAssessment Brussels, 27 March 2007 2
  • 3. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Introduction Purpose of the guidance note – To provide practical guidance on: • Who • When • How – To propose a model report and a checklist for the compliance assessment exerciseComplianceAssessment Brussels, 27 March 2007 3
  • 4. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Legal Basis  Art 71 (2) & (3) of Regulation (EC) 1083/2006 – A report giving an opinion on compliance with articles 58 to 62 should accompany the description of management and control systems to be provided as per art 71 (1) of the Regulation (EC) 1083/2006 and art 21 and annex XII of the Regulation (EC) 1828/2006. – Audit authority or a public or private body • Functionally independent of the managing and certifying authorities • Take into account the internationally accepted audit standards  Art 25 and annex XIII of Regulation (EC) 1828/2006 – Basis on which the Compliance Assessment body will base the report and opinion – Possibility to take into account results of the 2000-2006 period where the systems are essentially the same – Model opinion (annex XIII)ComplianceAssessment Brussels, 27 March 2007 4
  • 5. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Time Limits  Before 1st interim application for payment or within 12 months of the approval of the OP  Phases: – Reception of a definitive formal overall description of the systems: key date and starting point of the assessment – First analysis to decide the work to be done – Performance of the work, gathering information and analysis of data (see below) – Preparation and validation of the report, including initial contradictory phase – Submission of the system description, report and opinionComplianceAssessment Brussels, 27 March 2007 5
  • 6. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Time Limits (Continued)  Two possible outcomes: – No reservations => the Commission has 2 months to provide observations – Reservations: submission of action plan, i.e. corrective measures & timetable of implementation • To be underlined: action plan submitted by the bodies/authorities concerned by the reservation to the Compliance Assessment body, but confirmation of the implementation of the corrective measures by the Compliance Assessment Body • Upon Confirmation of implementation of the corrective measures and withdrawal of reservations => the Commission has 2 months to provide observations – On absence of Commission observations within 2 months, the report and opinion are deemed accepted.ComplianceAssessment Brussels, 27 March 2007 6
  • 7. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Description of the Systems  Different authorities responsible for different parts – Managing authorities assume the responsibility for the description of intermediate bodies under their supervision – Certifying authorities assume the responsibility for the description of intermediate bodies under their supervision – The audit authority assumes the responsibility for all audit bodies  The Commission recommends the designation of a coordinating authority, which will assume the responsibility for the submission of the definitive formal overall description  Possibility to have a common description for more operational programmes – Common key elements – Generally, common authoritiesComplianceAssessment Brussels, 27 March 2007 7
  • 8. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Planning  Realistic planning needed taking into account: – Examination of the systems description – Examination of relevant documents (laws, circulars, manuals etc) – Examination of the results of previous audits – Examination of the IT and accounting systems – Interviews with staff – Adequate time for an initial contradictory procedureComplianceAssessment Brussels, 27 March 2007 8
  • 9. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Planning (continued) Possibility to assess IBs on a sample basis – Exceptional cases where there are complex structures with numerous IBs – Adequate risk analysis should be done – IBs functioning under the same administrative framework and exercising similar functions – Focus on responsibility of MA and/or CACompliance (control & supervision)Assessment Brussels, 27 March 2007 9
  • 10. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Work to be carried out  Overall objective of the exercise: to provide an opinion – Adequacy of the design of the systems and not on their practical effectiveness – Possibility to perform tests on the functioning of the systems, but not required  Checklist developed by the EC and recommended – Minimum level of analysis – Can be expanded/enriched according to MS needs/specificities  Maintain a full audit trail of the work doneComplianceAssessment Brussels, 27 March 2007 10
  • 11. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Work to be carried out (continued) Flowchart of work Checklist with detailed queries leading to a conclusion for each authority/body Report with conclusion for each authority/body leading to an overall conclusion Opinion based on the overall conclusionComplianceAssessment Brussels, 27 March 2007 11
  • 12. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN Work to be carried out (continued)  Where the audit authority is the Compliance Assessment body: – Declaration of Competence and Operational Independence • All relevant parts of the checklist completed taking into account – Internationally accepted audit standards – Functional independence of the audit authority – Other possibilities • Assessment of the audit authority by different departments • Assessment of the audit authority by separate public orCompliance private audit bodyAssessment Brussels, 27 March 2007 12
  • 13. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN The report on compliance  Introduction – Objectives – Body that draws the report – How the functional independence is ensured  Methodology – Use of previous audit work – Period where the work was performed – Checklists/tools used – Interviews with staff carried out – Initial contradictory procedures – Method used to assess the audit authority – Conformity with internationally accepted audit standards  Risk analysis (in order to better plan the work or in case of IBs assessed on a sample basis) – Identification of common systems – Risk analysis by programme/system and link with work doneCompliance – Specific risk analysis for new elements/systems/authoritiesAssessment Brussels, 27 March 2007 13
  • 14. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN The report on compliance (continued)  Scope of the work – System description – Relevant documents – Interviews with staff (criteria for selection of staff, extend of interviews) – Accounting and IT systems – Use of other audit work – Limitations on scope  Result of the assessment – Per authority • Completeness of description • Conclusion/shortcomings • Priority axes affected • Key/ancillary elements concernedCompliance • Recommendations/corrective measuresAssessment Brussels, 27 March 2007 14
  • 15. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN The report on compliance (continued)  Result of the assessment (continued) – On general principles as referred to in article 58 of Regulation (EC) 1083/2006 • Separation of functions • Procedures to ensure the correctness and regularity of expenditure • Accounting, monitoring and financial reporting • Procedures to ensure adequate audit trail • Reporting of irregularities and accounting of recoveries  Overall conclusion – Overall conclusion with regard to compliance with articles 58 to 62 – Priority axis/axes concerned if there are reservations – Corrective measures requestedCompliance – Follow up foreseen by the compliance assessment bodyAssessment Brussels, 27 March 2007 15
  • 16. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN The opinion on compliance  Unqualified: – The systems are compliant with articles 58 to 62 of Regulation (EC) 1083/2006  Qualified – The systems are compliant with articles 58 to 62 of Regulation (EC) 1083/2006, but there are reservations with regard to some aspects  Adverse – The systems are not compliant with articles 58 to 62 of Regulation (EC) 1083/2006 and there are important reservationsComplianceAssessment Brussels, 27 March 2007 16
  • 17. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN The opinion on compliance (continued) Key elements of the systems – Concern the main aspects of the systems as set out in Regulation (EC) 1083/2006 (Articles 58 to 62) – Indicative list in the guidance note on compliance assessment Ancillary elements of the systems – Concern secondary aspects of theCompliance systemsAssessment Brussels, 27 March 2007 17
  • 18. EUROPEAN COMMISSION DG Employment, Social Affairs and Equal Opportunities & DG Regional Policy EN The opinion on compliance (continued) Exercise appropriate professional judgement: – To assess the seriousness of the findings – To make recommendations or to qualify the opinion The opinion should be consistent with the individual conclusions.ComplianceAssessment Brussels, 27 March 2007 18
  • 19. EUROPEAN COMMISSION DG Regional Policy & DG Employment, Social Affairs and Equal Opportunities EN Thank you for your attention! Questions and AnswersComplianceAssessment Brussels, 27 March 2007

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