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

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

1. Public Tenders

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

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)

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

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)?

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

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)

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

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

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?

The end Questions Comments Best practice natasa.prah@mf-rs.si