National and External Control of Public Procurement Main Issues

National Control System of PP Public Procurement Office Implementing institutions Audit Authority Issues: Overlapping control actions Different standpoints Selective approaches

Main PP Problems in EU Structural Funds Administration Different standpoints of controlling institutions Lack of clear guidelines for application of national legal acts Frequent changes (or amendments) in national and EU legal base Lack of controlling institutions skills Lack of POs responsibility and interest concerning the performance of PP duly and in time Lack of POs skills

National Control System of PP Solutions Standardization and uniformity of checks Centralized PP Optimization of national legal base on PP Methodical documents regulating the application of the Public Procurement Law

National Control System of PP Skills of POs and Controlling Institutions Larger POs have better skills and experience The (un) importance of skills of controlling institutions

Thematic Evaluations The Impact of Public Procurement on EU Structural Assistance Efficiency The aim of this evaluation is to improve the use of EU structural assistance by evaluating the impact of public procurement on EU structural assistance absorption rates and efficiency. The recommendations focused on the improvement of: legal acts and methodological documents public procurement control system and procedures skills and knowledge of the Procurement Organisations mas_ESSP_Neringos/Ataskaitos_2011MVP/Viesuju_pirkimu_ve rtinimas_summary.pdf

Audit Authority - National Audit Office of Lithuania (NAO) The institution of State Control is set in the Constitution of the Republic of Lithuania. The system and powers of the State Control are established by law. The NAO is the Supreme Public Audit Institution, accountable to the Seimas (Parliament) of the Republic of Lithuania. The Parliament appoints the Auditor General, as well as fixes and allocates the appropriations for the NAO budget. While implementing its functions, the NAO cooperates both with the Parliament as a whole and its separate committees (Committee of Audit). Its main function is to supervise the lawfulness and effectiveness of the management and use of the State property and the implementation of the State budget. The function of audit of the EU financial assistance granted to Lithuania delegated to the NAO by the Parliament. During the financial period the NAO carried out the Winding-up Institutions functions. For the financial period of it is the Audit Authority.

Cooperation with the Audit Authority In order to deal with the Audit Authority recommendations there are: Cooperation Agreement with the Audit Authority signed every year. This document is intended to: a) inform the MCS authorities to what extent, methods and limits the Audit Authority plans to conduct the State Financial (legitimacy) audit, b) agree on information and data to be submitted to the Audit Authority in order prepare the annual report and annual opinion in accordance with EU Regulations and national legal acts and to submit it to EC in time and necessary form. The draft Cooperation Agreement is submitted to institutions, so they can indicate the obstacles and / or offer in their opinion, better organization of work (as far as it is in compliance with international auditing standards and other auditing bodies governing law). There are listed all the documents and data needed to submit to the Audit Authority and the terms set. Interim results of the Annual Expenditure and Performance of Management and Control System audit. Recommendations Implementation Plan prepared by the Managing Authority, or other institutions, and coordinated with the Audit Authority. Working meetings with the Audit Authority.

Audit Authority Audits 3 Annual Expenditure and Performance of Management and Control System audits carried out by the Audit Authority (NAO): In all cases the Audit Authority stated that system corresponds to requirement of the EU Regulations and work effectively, except some reservations. Main audit findings / recommendations are related to public procurement: Insufficient 2 nd level ex-ante controls (check-lists to be improved) PP shortcomings related to the procedure itself

Audit Authority Audits. Extent and Scope of Controls Due to increasing pressure (from EC), audit findings Members States have had to place a stronger emphasis on PP control systems over the past few years. Sufficient controls: different standpoints during 2 nd level ex-ante controls NAO vs. intermediate bodies. Scope of controls and reducing administrative burden - mission impossible?

European Commission and European Court of Auditors Audits 12 EC and ECA audits were carried out. The most common cases stated in audit reports related to PP and the Management Authoritys control over the delegated functions Restrictive conditions in the contract notice, Revenue issues, VAT issues, Negotiation procedure