Reporting and Investigating Suspected Corruption and Fraud in Latvia. 25 February 2015

Institutional framework of the EU funds management in Latvia Content Institutional framework of the EU funds management in Latvia Institutions and their role in verifying and reporting irregularities Reporting and Investigating Suspected Corruption and Fraud The administration system of irregularities Meassures to mittigate irregularities and fraud risk Irregularities detected Recovery of ineligible expenditure 2018.12.06.

1. Institutional framework 2014 - 2020 2018.12.06.

2. Institutions and their role in verifying and reporting irregularities 2018.12.06.

3. Reporting and Investigating Suspected Corruption and Fraud Suspected fraud has detected * Staff report is prepared Discussions within internal irregularitie’s workshop Irregularity decision is made; Data is entered in the national MIS and EK/OLAF IMS Application in the investigating authority (if appropriate) Cooperation with law enforcement authorities * Contracting authority – Responsible authority or Co-operation authority 2018.12.06.

4. The administration system of irregularities The administration system of irregularities established by MA – a key tool for detection of weakest links in management and control system Irregularities monitoring process on quarterly bases: During monthly MIS data quality checks Analyses during preparing for quarterly meetings Reporting to the OLAF Reporting to the government AFCOS (Interdisciplinary network) Improvements of Guidelines Exchange of best practice trough guidelines, working groups and seminars 2018.12.06.

5. Meassures to mitigate irregularities and fraud risk (1) Financial corrections Disciplinary action Administrative responsibility 2018.12.06.

5. Meassures to mitigate irregularities and fraud risk (2) Internal procedures (methodology) The ex-ante procurement checks Risk based on the spot checks Greater use of simplified cost One central IT system Cooperation with law enforcement authorities 1. The Managing Authority regularly updates internal procedures of the Managing Authority and provides methodological and interpretative materials for the institutions involved in the management of EU funds, thus reducing the possibility of systemic errors and prevent possible irregularities. 2. The ex-ante procurement checks that are preventive and very effective as irregularity managament tool. 3. Risk based on the spot checks, including administrativre checks and technical on the spot checks. 4. Greater use of simplified cost (flat rate, unit cost, lump sum). 5. One central IT system for the institutions involved in the management of EU funds and final beneficiaries, including ARACHNE tool. 6. Managing Authority cooperation with law enforcement authorities and OLAF as well as participation in AFCOS. 2018.12.06.

6. Irregularities detected (2007-2014) Suspected fraud cases reported to OLAF – 68 Fraud reported to OLAF – 1 Total number of irregularities - >6 000 2018.12.06.

7. Recovery of irregular expenditure if FB is private person / entrepreneur (1) 2018.12.06.

7. Recovery of irregular expenditure if FB is public institution (2) 2018.12.06.

7. Recovery of irregular expenditure (3) Recovery of ineligible expenditure (mln. euro, % of amount of irregularity) Withheld from the current/next payment; Repayment; Not possible to recover (insolvency, bankruptcy, other); State budget expense - write off. The main types of recoveries: 2018.12.06.

Thank you! www.esfondi.lv www.fm.gov.lv esfondi@fm.gov.lv 2018.12.06.