1. The verification of
public investments

2. Certification of expenditures
Self control
Final Beneficiaries responsibility
First level control
Managing Authority responsibility
Certification of expenditures
Certifying Authority responsibility
Second level control
Audit Authority responsibility

3. First level control Article 60 COUNCIL REGULATION (EC) No 1083/2006
of 11 July 2006
Article 13 COMMISSION REGULATION (EC) No 1828/2006
of 8 December 2006

4. First level control First level control activities shall include:
administrative check regarding 100% of applications for payment
on the spot check on a sample basis

5. Sequence of activities
First level control
Sequence of activities
Tipology control
Administrative
Checks
Art. 13 par 2 lett. A
1828/06
On the Spot check
Art 13 par. 12 lett. B
Reg 1828/06
activities
Control
Self control
Administrative
check
Risk analysis
Sampling
operations
On the Spot
check
representativeness
Contol
Sample
check
All
operations
All
operations

6. Second level control (audit)
Article 62 COUNCIL REGULATION (EC) No 1083/2006
of 11 July 2006
Article 16 COMMISSION REGULATION (EC) No 1828/2006
of 8 December 2006

7. Sequence of activities
Second level control
Evaluation
of reliability
Sequence of activities
Management
and control
system check
Sampling
operations
On the Spot
check on
Gathering documents
Audit trail
Previous audit
First level control
Control by CA
Process analysis of
Selection
Implementation
Reporting
Desk control
First level
Relevant documentation
Sample dimension
Number and type of operation
Risk analysis
Inherent risks
Control risks
Confidence level
Control report
Check list
Irregularities
Relevant data
On site control

8. Documents and information to support the audit activity
Community Decisions;
Documents for Monitoring Committees;
The description of management and control systems;
Annual Implementation Reports (RAE) of the MA;
Audit trail ex art.15 Reg. EC 1828/06;
Monitoring data;
Updated list of the co-financed operations;
Indications on the functions of Audit Authority in the agreements for delegating tasks to the IBs and/or to the Final beneficiaries

9. Documents and information to support the audit activity
Updated list of referents/IBs/ priority responsible;
Models and standards for expenditure justification;
Circular letters from the Managing Authority;
MA communications on the controls performed by
Internal and national or Community bodies
(CONTROL REGISTER);
Final beneficiaries expenditure declarations;
Certifying Authority expenditure certification

10. Documents and information to support the audit activity
Annual questionnaire on controls development;
Observations and actions performed after the controls results;
Communication sent to the Commission (through the national body) regarding the irregularities found

11. Documents and Information sent by the Control Authority to the IBs
Communication on the programme an audit strategy ex. Art. 62 (Reg. EC 1083/02);
The audits shall be carried out each 12-month period from 1 July 2008 on a sample of operations:
applied methodology for selecting the sample;
list of the operations selected;
period for performing the controls;
indication of the names of the civil servants responsible in this sense.
For knowledge, the communications sent to the final beneficiaries which are subject to the controls;
Photocopy of the control reports;
Synthesis report on the results of the controls.

12. Process of audit activities
Input
Output
Operative Program Audit trail
System of Management and control 1
Process of audit activities
Identification of the strategy
Risk Assessment 2
Identification of the methodology of sampling
Methodology of sampling
Audit’s strategy
Normative 3
Sampling
Methodology of sampling
List of the operations to be audited 4
Audit trail
Documentation
and records held by the CA, beneficiary
Normative
Audit of operations
Control’s report

13. Process of audit activities
Input
Output
Process of audit activities
Documentation
and records held by the beneficiary
Irregularities
Control’s report
Supplementary request documentation 5
Additional audits 6
Documentation object of the control and this case of irregularities
Control’s report
Competent organs irregularities report
Identification irregularities 7
Measures corrective and estimates
Singles irregularities verified or system’s irregularities
Annual report and opinion

14. The contents of the system audit
The structure and the organization of the MA, of the CA and of the IB;
The connections between the functions of the MA, CA, the IB and the functions of control, as well as the informative obligations towards the European Commission;
The formal procedure with are managed under the administrative profile-accountant the funds;
Methodology for the identification of the objectives that want to reach themselves
The controls directed to ensure that the execution of the interventions is as the respect of the initial objectives
The existence of adequate internal audit
The appropriateness the procedures of the system of monitoring
The organizational formal procedure and the general procedures across that come carried out the functions of management and payment

15. The contents of the system audit
The responsibility of the activity of management and control
The suitability of the human resources and technologies with respect to the requirement of the ordinary control
The procedures that regulate the activity of management and payment and the skills delimit of it
The spread of the relevant indications to the correct capacity of the documentation of expenditure
The completeness of the d information in the declarations of expenditure
The criteria utilized from the Authorities to verify if the declarations of expenditure received respect the requirement of the rules established for the structural Funds about of contracts, competition, equal opportunity, environment, publicity
The existence of a procedure so that the payments come emitted for their total amount and without unjustified deductions
The existence of measures for the return of the sums unduly distributed
The procedures for a separate bookkeeping destined to the record of the operations founded with the structural founds-

16. The sample of operations to be audited art. 17 and annex IV Reg
The sample of operations to be audited art. 17 and annex IV Reg. (EC)
Based on a random statistical sampling method;
Additional operations may be selected as a complementary sample
Internationally accepted audit standards and be documented;
Having regard to the amount of expenditure, the number and
type of operations and other relevant factors, the audit authority shall
determine the appropriate statistical sampling method to apply
The sample to be audited each twelve-month period shall be selected;
The audit authority shall draw conclusions on the basis of
the results of the audits relating to expenditure declared to the
Commission during the year;
The audit authority shall regularly review the coverage provided
by the random sample, having regard in particular to the
need to have sufficient audit assurance for the declarations to be
provided at partial and final closure for each operational
programme.

17. Article 16 COMMISSION REGULATION (EC) No 1828/2006
The audits shall verify that the following conditions are fulfilled:
the operation meets the selection criteria for the Operational Programme, has been implemented in accordance with the approval decision and fulfils any applicable conditions concerning its functionality and use or the objectives to be attained;
the expenditure declared corresponds to the accounting records and supporting documents held by the beneficiary;
the expenditure declared by the beneficiary is in compliance with Community and National rules;
the public contribution has been paid to the beneficiary in accordance with Article 80 of Regulation (EC) No 1083/2006.

18. Audits of operations Phase of deepening and reporting
Phase desk
Phase of the check on-the-spot
Phase of deepening and reporting

19. Acquisition of the Audit trail
PHASE DESK
Acquisition of the Audit trail
Acquisition of the records by a certifying authority and 1 st level audit report
Predisposition of the check list for the control

20. Phase of the check on-the-spot
Acquisition of the documentation on the final Beneficiary of the operation
Economical financial control
Control of conformity
Control of regularity of the execution
Regularity of the execution
Par condicio
Concerning
Effectiveness
Administrative transparency
Realized/Approved Project
Respect of technical prescriptions
Legality
Legal certainty

21. Economical financial control
Typologies
Concerning
Effectiveness
Legality
Absence of violations of law and of the normative on the acceptable expenditure
Contents
Connection between sustained expenditure and activity funded
Correspondence between monetary disburse and documentation of expenditure

22. The control of conformity
Typologies
Equality of treatment
Administrative transparency
The legal certainty in the management of the public resources
Respect of the National and European laws about public resources
Contents
Respect of the normative concerning public contracts, information and equal opportunities
Respect of the administrative procedures of engagement, payment and account and access to the documents

23. Control of regularity of the execution
Typologies
Regularity of the execution
Regularity between project approved and activities
Respect technical prescriptions
Respect technical prescriptions
Contents
Check correct: procurements of goods and services; training; constuction of pubblic works.
Effctiveness of operations with respect to final results

24. The costs of the operations and projects
Typologies
Direct
Indirect
Overheads
Indirect in the limit established with fair and verifiable criteria
Reporting of expenditure
Direct and total to the operation or to the project
Indirect and partial to the operation or to the project with technical and physical criteria

25. Deepening with final beneficiary
Phase of deepening and reporting
Deepening with final beneficiary
Determination of eventual irregularity
Reporting
REPORTING
European Commission
National Organisms