THE CERTIFYING AUTHORITY How the Certifying Authority can deliver assurance? Adérito Pinto European Commission DG Regional Policy

How assurance will be built up 2007-2013 Ex post How the Certifying Authority can deliver assurance? During implementation Ex ante

? EUROPEAN COMMISSION EU AUDITS CERTIFYING AUTHORITY AUDIT AUTHORITY How the Certifying Authority can deliver assurance? CERTIFYING AUTHORITY ? AUDIT AUTHORITY MANAGING AUTHORITY BENEFICIARIES

THE CERTIFICATION FUNCTION I, the undersigned, representing the Certifying Authority: Certify that all expenditure included in the attached statement of expenditure complies with criteria for eligibility of expenditure set out in Art. 56 of Reg.1083/2006 and … How the Certifying Authority can deliver assurance?

THE CERTIFICATION FUNCTION (2) I also certify that operations are progressing in pursuance with the objectives laid down in the decision and in accordance with Reg. 1083/2006, and in particular that: The expenditure declared complies with applicable Community and national rules and… The statement of expenditure is accurate, results from reliable accounting systems and is based on verifiable supporting documents … How the Certifying Authority can deliver assurance?

THE CERTIFICATION FUNCTION (3) The Commission prepared a: GUIDANCE DOCUMENT ON THE FUNCTIONS OF THE CERTIFYING AUTHORITY for the 2007 – 2013 programming period How the Certifying Authority can deliver assurance?

OBJECTIVE OF THE DOCUMENT The objective of the document is to provide guidance on the functions of the Certifying Authority (CA) under Article 61 of Council Regulation (EC) N° 1083/2006. How the Certifying Authority can deliver assurance?

OBJECTIVE OF THE DOCUMENT (2) It is intended as a reference document for the Member States for the implementation of Art. 61 of Reg. 1083/2006. Member States are recommended to follow the guidance, taking account of their own organisational structures and control arrangements. How the Certifying Authority can deliver assurance?

MAIN FUNCTIONS OF THE CA (Art. 61 Reg. 1083/2006) Obtains assurance that the expenditure complies with Community and national rules Certifies statements of expenditure to the Commission; Maintains the accounting records (in computerised form) for the expenditure declared; Keeps account of amounts recoverable and of amounts withdrawn and repays the recovered amounts to the general budget of the European Union. How the Certifying Authority can deliver assurance?

SET UP/ORGANISATION OF CA Key requirement is the clear definition, allocation and separation of functions between the CA and the other authorities as well as within the CA. How the Certifying Authority can deliver assurance?

SET UP/ORGANISATION OF CA (2) The Commission has recommended that MS adopt a solution whereby the CA is assigned to a different organisation from the MA and AA; Where this was not followed, MS must take mitigating measures. How the Certifying Authority can deliver assurance?

SET UP/ORGANISATION OF CA (3) Good practice: In view of the direct responsibility of the CA it is recommended avoiding delegation of tasks as far as possible. Where formal arrangements are established to delegate tasks they should be recorded in writing specifying the tasks, the obligations of the intermediate body to carry out them properly and the power of the CA to review or to withdraw delegation. How the Certifying Authority can deliver assurance?

SET UP/ORGANISATION OF CA (4) How the Certifying Authority can deliver assurance? The test of the independence of the CA is that it has the requisite authority to refuse to certify expenditure presented by a Managing Authority when it is not satisfied that all the conditions are met.

Certification of statements of expenditure The CA must have adequate evidence to be able to conclude that it has sufficient assurance to submit to the Commission a certified statement of expenditure. The assurance should be based on evidence that the systems of the MA and intermediate bodies are functioning effectively to prevent, detect and correct irregularities. How the Certifying Authority can deliver assurance?

Certification of statements of expend. (2) The CA obtains such evidence from: Compliance assessment report and opinion; Reports of the MA on the execution of the management verifications; Audit reports and the annual control report of the AA; Audit reports of the Commission and the European Court of Auditor or other audit bodies; The CA should, when necessary, reinforce further its assurance by additional examination carried out by its staff on the level of the MA and IB. How the Certifying Authority can deliver assurance?

Certification of statements of expend. (3) Good practice: The Commission recommends that the Managing Authority send to the CA regular reports on its control activities with information on key indicators which demonstrate the functioning of the system. How the Certifying Authority can deliver assurance?

Certification of statements of expend. (4) How the Certifying Authority can deliver assurance? If the CA is not satisfied about the legality and regularity of the whole, or part, of the expenditure claim, it should send the claim back to the Managing Authority with instructions for remedial actions. If the evidence provided justifies adequately the legality and regularity of the expenditure claim, then the CA certifies the statement of expenditure to the Commission.

Accounting system and the audit trail Reg. 1083/2006 and Reg. 1828/2006 require the existence of an adequate audit trail and computerised system: adequate accounting records of expenditure declared to the Commission should be maintained in computerised form; audit trail within the CA should allow reconciliation of the expenditure declared to the Commission with the expenditure statements received from the Managing Authority. How the Certifying Authority can deliver assurance?

Accounting system and the audit trail (2) The use of a single electronic Monitoring Information System (MIS) by the Managing Authority, the Certifying Authority and Intermediary bodies is recommended; Where different systems have been developed, the CA should lay down the content and format of the information that must be provided to upload to the CA; The Managing Authority should provide all information in the requested format and within the deadlines mutually agreed; The CA should have full read-access to the Managing Authority system information. How the Certifying Authority can deliver assurance?

KEY MESSAGES Discuss and agree now with MA on reporting required for certification – content and timing; Make clear to MA that if it does not provide the required information, the CA will not be able to certify; Put in place effective procedures and adequate resources to receive and examine the information provided by MA, AA and other audit bodies; How the Certifying Authority can deliver assurance?

KEY MESSAGES (2) Establish clear procedures to follow when information is not sufficient to allow certification; Put in place robust data systems for financial reporting, including for recoveries and withdrawals; Do not duplicate work of MA. How the Certifying Authority can deliver assurance?

Thank you for listening. How the Certifying Authority can deliver assurance? Contact: Adérito Pinto DG REGIO J.4 E-mail: aderito.pinto@ec.europa.eu