1 Managing Authority Conducting a self assessment 10 June 2008 A. Badrichani – DG Regional Policy – Audit Unit J3

2 Conducting a self assessment –Background and justification –The tool: a questionnaire –How to fill in the questionnaire and how to use it –Conclusions

3 Conducting a self assessment Background and justification It is an element of risk assessment / risk management It is in the interest of Managing Authorities to evaluate whether the systems meet required standards

4 Background and justification This exercise is separate from the compliance assessment which is done by an external body and covers only the set- up This exercise is for the MA and does not prejudice the work of the Audit Authority to give its independent opinion on the functioning of the system The exercise can be done regularly during programme implementation

5 MA AA EC/ECA CA Risk assessment - Audit reports - Compliance assessment - Audit reports - Compliance assessment - Audit reports - Corrections - Audit reports - Corrections Feed back - Management verif results - Self assessment - Other sources - Management verif results - Self assessment - Other sources - Address risks Background and justification Part of a regular risk assessment exercise

6 Objectives for the Managing Authority: –To evaluate the quality of the system –To detect the areas which need to be strengthened –To take remedial actions Tool A self assessment questionnaire

7 –Focus is on the key requirements auditors would look at –The key requirements and assessment criteria are the ones identified by the EC and ECA services (see systems evaluation guidance note) Tool The content of the questionnaire

8 The practical aspects –As simple as possible with a minimum of questions (7 key requirements, 23 assessment criteria) –Covers both design and functioning –Only questions with Yes or No answers –A framework which can be adapted and completed by each Managing authority Tool

9 Works well Works but Works partially Does not work Key requirement (KR) 1: Clear definition, allocation and separation of functions between and within the managing authority / intermediate body/ies X KR. 2: Adequate procedures for the selection of operations X KR. 3: Adequate information and strategy to provide guidance to beneficiaries X … Overall structure Extracts from the tool 1/2

10 Works well Works but Works partially Does not work KR. 4: Adequate management verifications X KR. 5: Adequate audit trailX KR. 6: Reliable accounting, monitoring and financial reporting systems in computerised form X KR. 7: Necessary preventive and corrective action where systemic errors are detected by the audit X Overall structure Extracts from the tool 1/2

11 How to fill in the questionnaire - In case of yes answer, please indicate which supporting evidence (document reference, precise date etc), you would be able to deliver. On the contrary, answer with No -In case of No, please indicate which mitigating action will be taken How

12 Example of a key requirement Questions Guidance from EC 1 - Yes 0 - No Supporting evidence in case of Yes answer Actions to be taken in case of No answer Key requirement 3: Adequate information and strategy to provide guidance to beneficiaries Clear and unambiguous national eligibility rules have been laid down for the programme. Is there one document which summarises the national eligibility rules? 1 document reference xx Are explanations given on each eligibility rule? 0 clarification for eligibility rule nr.. to be prepared ……… … …… TOTAL % of YES 85 %

13 Overall assessment by key requirement Works well Works but Works partially Essentially does not work Preliminary conclusion % of Yes > 90% 90% > % of Yes > 75% 75% > % of Yes > 50% % of Yes < 50% -Quantitative result is the 1 st step of the evaluation - A qualitative evaluation is needed (which are the problematic questions?) -Quantitative result is the 1 st step of the evaluation - A qualitative evaluation is needed (which are the problematic questions?) How

14 The benefits 1.Internal tool to be used objectively (EC services will not request the assessment) 2.Dynamic and adaptable tool 3.Management tool: Allows the MA to take remedial actions if necessary, and to have its own risk analysis Conclusion 1/2

15 Next steps -Working document -Test the questionnaire with 2 or 3 MA which will be willing to participate in a pilot exercise -Feed back from Audit Authorities on this tool welcome -Finalised version to be distributed before end 2008 Conclusion 2/2