CO-OPERATION BETWEEN THE MINISTRY OF FINANCE AND THE NATIONAL AUDIT OFFICE Mr. Rimantas Šadžius Minister of Finance of the Republic of Lithuania 20 March 2008

Key Responsibilities  The National Audit Office of Lithuania (NAO)  External (performance and financial) audit on national and EU funds - including:  Winding-up Body ( )  Audit Authority ( )  Annual reporting on budget execution  The Ministry of Finance  Development of the management and control system of EU funds  Central guidance on budgeting, accounting, internal auditing

Management and Control System for the Programming Period 2004–2006 MINISTRY OF FINANCE MANAGING AUTHORITY MINISTRY OF FINANCE Paying Authority for ERDF, ESF, EAGGF and FIFG MINISTRY OF EDUCATION & SCIENCE MINISTRY OF ENVIRON- MENT MINISTRY OF TRANSPORT MINISTRY OF ECONOMY TRANSPORT INVESTMENT DIRECTORATE ENVIRONMENTA L PROJECTS IMPLEMENTING AGENCY MANAGING AND PAYING AUTHORI- TIES INTER- MEDIARY INSTITU- TIONS IMPLEMEN- TING AGENCIES. LITHUANIAN BUSINESS SUPPORT AGENCY CENTRAL PROJECT MANAGEMENT AGENCY MINISTRY OF SOCIAL SECURITY & LABOUR MINISTRY OF AGRICULTURE NATIONAL PAYING AGENCY ESF AGENCY MINISTRY OF HEALTH- CARE ISDC MINSTRY OF FINANCE ARTICLE 10 CHECKS COORDINATING BODY

In 2007 Internal Audit Units of the line ministries performed: 6 system audits of the Structural Funds (ERDF, ESF, FIFG, EAGGF), 156 (5-15 %) sample checks (checked MEUR of expenditures declared to the EC):  144 Structural Funds (ERDF, ESF, FIFG, EAGGF) sample checks and checked MEUR of expenditures declared to the EC;  12 Cohesion Fund sample checks and checked MEUR of expenditures declared to the EC. Statistical Data – Sample Checks of EU Funds

Audit System’s Alternatives for New EU requirement according to the EU regulation No 1083/2006:  to establish an Audit Authority 3 options considered:  Ministry of Finance;  New separate organisation;  National Audit Office. Decision of the Parliament on October 11, 2007 regarding the National Audit Office

Ministries Monitoring Committee of Operational programms (consist of officials from institutions that administrate assistance and social economic partners) Managing Committees of Operational programms (consist of officials from institutions that administrate assistance) Government of the Republic of Lithuania Project promoters Audit Authority Valstybės kontrolė Ministry of Finance Managing Authority Certifying Authority Implementation Authorities (Agencies) European Commision Aplinkos ministerija Socialinės apsaugos ir darbo ministerija Susisiekimo ministerija Sveikatos apsaugos ministerija Švietimo ir mokslo ministerija Ūkio ministerija Vidaus reikalų ministerija Informacinės visuomenės plėtros komitetas prie LRV Veiksmų programų valdymo departamentas Nacionalinio fondo departamentas Centrinė projektų valdymo agentūra Lietuvos verslo paramos agentūra Paramos fondo Europos socialinio fondo agentūra Aplinkos projektų valdymo agentūra Transporto investicijų direkcija Councils of Regional development Coordinating Authority ES sanglaudos politikos ir struktūrinės paramos koordinavimo departamentas Paying Authority Valstybės Iždo departamentas UAB “INVEGA” Administration System for the Programming Period 2007–2013

Co-operation between the NAO and the MoF sharing information on internal control, EU funding, on the results of sample checks (5-15 % checks), system audits and closure audits (winding-up audits) using each other’s work (in order to reduce the scope of the audit work) and eliminating the overlaps in audit work – under mutual confidence and respect agreed methods for sharing of audit findings discussing training format on the EU issues participation in meetings, help-desk discussions on the various questions regarding EU funds’ audits