1. AUDITING PUBLIC TENDERS
Nataša Prah
Savelletri, 10. and 11. June 2010

2. Introduction Public Tenders Call for Project Proposals Audit Approach
Flat Rate Corrections
Public Procurement

3. 1. Public Tenders

4. 2. Call for Project Proposals
Audit Approach:
When to test
What to test
How to test
WHEN:
During the system audit and during the audit of operations

5. Call for Project Proposals (2)
1. System audit:
WHAT and HOW:
Under the key requirement 2 (selection of operations)
On a sample of (10) different calls for project proposals:
Proper publishment (who, where)
Proper content of the tenders documentation (clear, transparent and objective selection and awarding criteria; compliance with the OP, state aid; other obligatory elements)

6. Call for Project Proposals (3)
2. Audit of operations
WHAT and HOW:
On the operations selected
Was the call for project proposals already subject of system audit review:
if yes, take the results and additionally check the selection procedures and content of signed contract
If not, repeat the procedures foreseen in the system audit and then check the selection procedures and content of signed contract

7. Call for Project Proposals (4)
Flat rate corrections:
Deficiencies found during the audit (non-compliance with the OP, non-existence of the selection and awarding criteria,…)
Guidelines from the EC are not prepared yet
Use of the old Guidelines on the principles, criteria and indicative scales to be applied by EC?
How to report to the auditee (finding and recommendations)?

8. 3. Public Procurement Audit Approach: When to test What to test
How to test
WHEN:
During the audit of operations and in a special horizontal audit

9. 3. Public Procurement (2) 1. Audit of operations WHAT and HOW:
On the operations selected:
Basic checks (does the beneficiary have to respect the public procurement law, are the values of the contract below the threshold foreseen for publishment of rublic tender:
if yes: at least three offers, written justification of the selected offer, respect ion of general principles
If not: further checks)

10. 3. Public Procurement (3) Further checks:
Initiating of the public procurement procedures
Public procurement documentation
Publishing the public tender
Receiving and opening offers
Reviewing and evaluating offers
Awarding and publishing the results
Interruption of the procedures in case of complaints

11. 3. Public Procurement (4) Signing the contract Proper audit trail
Respecting the general principles
2. Special Horizontal Audit:
WHEN, WHAT and HOW:
Once in programming period
On selected 10 high values procurements
Using the same audit procedures (questionnaire) as foreseen for substantive testing

12. 3. Public Procurement (5) Flat rate corrections:
Deficiencies found during the audit as they are listed in the EC Guidelines
How to report to the auditee?
Applying the percentages of financial correction foreseen in EC Guidelines?

13. The end
Questions
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