Regional Policy EUROPEAN COMMISSION OPEN DAYS 2006 The European Week of Regions and Cities Brussels, 9 – 12 October 2006 _________________________ Workshop 11E18: Structural Funds 2007 – 13: The New Control and Audit Requirements Robert Wilms Directorate-General Regional Policy Directorate I - Audit

Regional Policy EUROPEAN COMMISSION Topics: Background: Why control and audit ? Main elements of control and audit How to get assurance about the regularity of spending The general principles of control and audit for the Structural Funds

Regional Policy EUROPEAN COMMISSION 3 Why control and audit ? (1) Volume of spending and complexity of implementation: Spending for cohesion policy : 308bn (= 35 % of total budget) Approx. 270 programmes in 27 Member States Principle of shared management

Regional Policy EUROPEAN COMMISSION 4 Why control and audit ? (2) Legal responsibilities from EC-Treaty, Financial Regulation and SF-Regulations: Responsibility of Commission and Member States to respect principles of sound financial management (Article 274 of EC-Treaty; Article 27 of Financial Regulation) Commission is accountable towards EP and seeks annual discharge (Articles 275,276 of EC Treaty) Scrutiny by ECA Detailed requirements for effective management and control systems and for an audit function complying with internationally accepted audit standards Articles 57 – 61 of Council Regulation, Articles 12 – 25 of [draft] Commission Regulation

Regional Policy EUROPEAN COMMISSION 5 Why control and audit ? (3) To live up to their responsibilities, Commission and Member States need to have solid and well functioning management and control systems and an audit function which checks these systems and provides assurance that they work.

Regional Policy EUROPEAN COMMISSION 6 Commission Audit Audit Authority Certifying Authority Managing Authority (and Intermediate Bodies) The main elements of the control and audit framework :

Regional Policy EUROPEAN COMMISSION 7 Audit opinion at closure Commission audits Annual opinion based on national audits Certification of expenditure (Certifying Authority of MS) Systems description and compliance assessment Guarantees in programme negotiations How assurance will be built up : Ex ante Ex post During implementation During implementation

Regional Policy EUROPEAN COMMISSION 8 Comparison between and current programming period At the level of day-to-day management and control (Managing Authority, Certifying Authority) the system for corresponds essentially with the arrangements for Responsibilities of the Audit Authority with regard to providing assurance to the Commission have been widened. Detailed requirements to ensure compliance with internationally accepted audit standards Commissions audit activity will shift focus on reliability of Audit Authority Improvements of an coordinated approach to audit and of achieving an integrated control framework

Regional Policy EUROPEAN COMMISSION 9 Thank you very much. Any questions ?