Presentation to the GNI Committee ECA PERFORMANCE AUDIT « The effectiveness of the Commission’s verification of GNI data used for own resources » 26th GNI Committee meeting on April 25, 2013 Under point IX Any other Business European Court of Auditors 12, rue Alcide de Gasperi L - 1615 LUXEMBOURG Tel.: +352 4398-1 Fax: +352 4398-46233

ECA performance audit on GNI TABLE OF CONTENTS Progress Expected timetable for reporting 3. Results of the survey 3.1 Response rate 3.2 Results 3.3 Overall conclusion 3.4 Specific aspects 3.5 Use of the survey in the audit report 2 ECA performance audit on GNI

ECA performance audit on GNI 1. Progress MILESTONES DEADLINES Commission’s setting of specific reservations on GNI for the period 2002 – 2007 January 2012 Making available to the Court’s auditors of Eurostat control files February-March 2012 START OF THE AUDIT March 2012 AUDIT FIELDWORK (Commission and Member States) March-December 2012 END OF THE AUDIT / REPORTING February / July 2013 PUBLICATION September 2013 3 ECA performance audit on GNI

2. Expected timetable for reporting ACTIVITY DEADLINES Preparation of the draft Report March 2013 Adoption of the Final Report by Chamber IV / Court April (- beginning of May) 2013 Pre-contradictory meeting(s) with DG BUDG and Eurostat May-June 2013 Contradictory meeting with DG BUDG and Eurostat mid-July 2013 Adoption of the Final Report APC by Chamber IV / Court end of July 2013 PUBLICATION September 2013 4 ECA performance audit on GNI

24 Member States replied to the survey. ECA performance audit on GNI 3. Results of the survey 3.1 Response rate 89% 24 Member States replied to the survey. - Most of them added the reasoning for the answers, - Some of the replies did not include answers for all questions. 5 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.2 Results Question 2.2 is a « negative » question: « No » means OK 6 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.3 Overall conclusion Member States’ delegates of the GNI Committee consider that Eurostat’s verification of Member States’ GNI data for own resources is generally adequate. 77% of the replies to questions are positive. However, there are some comments on some specific aspects (as further presented) ….. 7 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.4 Specific aspects (1) STEP 1 – CONTROL STRATEGY/APPROACH 10 of the respondents (42%) consider that the cost-benefit principle was not (always) properly applied by Eurostat in its verification (question 1.2), 8 of the respondents (33%) state that Eurostat did not (always) report on the cases where the cost-benefit principle applied (question 1.3). 8 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.4 Specific aspects (2) STEP 2 – VERIFICATION PROCESS 9 of the respondents (38%) consider that the working tools used by Eurostat (partially) involve unjustified work to be carried out by NSIs (i.e. GIAQ is too detailed) (question 2.2), 8 of the respondents (33%) state that the process of setting (transversal and country) specific reservations was not (always) adequate in terms of contents and transparency (question 2.7). 9 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.4 Specific aspects (3) STEP 3 – REPORTING 6 of the respondents (25%) consider that the criteria used by the Commission to set reservations were not (always) clear and consistently applied in all Member States (question 3.2). This is coherent with the reply to the previous question 2.7. 10 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.4 Specific aspects (4) OTHER ISSUES 10 of the respondents (42%) take the view that the duration (i.e. 5 years) of Eurostat’s verification process on Member States’ GNI Inventories was not (entirely) adequate (question 2.4), 8 of the respondents (33%) consider that the GNI Committee and/or Eurostat did not (always) take sufficient measures to develop best practices for the GNI compilation process (question 5). 11 ECA performance audit on GNI

ECA performance audit on GNI 3. Results of the survey 3.5 Use of the survey in the audit report The results of the survey were one of the sources used to draw up a set of best practices of verification arrangements (the “Court’s control model”). The results are used to reinforce some of the observations included in the special report. 12 ECA performance audit on GNI

Presentation to the GNI Committee ECA performance audit on GNI Thank you for your attention. 13 ECA performance audit on GNI