1. INTERACTION AND COOPERATION
AUDIT OF EUROPEAN UNION FUNDS EXECUTIVE AGENCY
BULGARIAN AUDIT
AUTHORITY
and
INTERNAL AUDIT UNITS –
INTERACTION AND COOPERATION
October 2015, Yerevan

2. BG AUDIT AUTORITY’ UNIVERSE
all 8 mainstream national programmes under ESIF - European Regional Development Fund, Cohesion Fund, European Social Fund and European Fishery Fund
CBC programmes with Serbia, Turkey and FYROM
ETC programmes with Romania, Greece, SEE, INTERREG ІVC, ESPON, URBACT ІІ
Erasmus+
SOLID - External Borders Fund and European Return Fund
Winding-up Body for ISPA/CF projects / SAPARD Certification Body
EEA and Norwegian Mechanisms, Bulgarian-Swiss Program

3. MISSION OF AUDIT AUTHORITY
Provide assurance that the European Community’s financial interests are properly protected –
whether management and control systems (MCS) of the respective EU-financed programme are adequate and function effectively so as to provide reasonable assurance that the statements of expenditure presented to the Commission are correct and, as a consequence, reasonable assurance that the underlying TRANSACTIONS ARE LEGAL AND REGULAR
each year - Annual Control Report and Annual Opinion
31 March 2017 – Closure Declaration

4. AA - AUDIT WORK
Audit Engagements
Auditees
Nature of auditees
Systems audits (tests of controls)
Managing and Certifying Authorities
Directorates within the ministries
Agencies
Units within the municipalities
Audits of operations (substantive tests)
Beneficiaries
Public organizations – municipalities, agencies, ministries, social cervices, hospitals, museums…
Private persons/companies

5. AUDITS OF OPERATIONS 5

6. SIMILARITIES AND DISTINCTIONS IA/AA
IA units AA
Structure
- Decentralized
1 central agency, 63 auditors
Reporting lines
Head of the organization
European Commission
Nature
- internal - assurance and consulting
external - assurance
Auditees
- ministries, agencies, municipalities, beneficiaries
Objectives regarding EU-funded projects
- help organization for legal and effective implementation of EU projects
- without irregularities (financial corrections)
- provides opinion on expenditure declared to EC on annual basis
- calculates financial corrections for irregularities, if needed

7. CO-OPERATION BETWEEN IA AND AA
Different options - according to applicable laws and standards - EC Guidance note for reliance of the work of other auditors
- national decision for management and control system
Bulgarian case at the moment, based on formal agreement
communication of audit plans
sharing AA’ check lists, tools and approach – aeuf.bg publications and trainings - general and on-the-job

8. IA ENGAGEMENTS RELATED TO EU PROGRAMMES
Consulting or assurance – the choice is yours
Source: Consolidated report for internal control in the public sector

9. PREVENTIVE ROLE OF IA
In Managing/Certifying authorities
Elaboration of adequate internal procedures - focus on EC requirements for risk assessment and antifraud measures and annual management declaration and report
Regularity and effectiveness of key processes – selection of operations, verification and certification of expenditure
In beneficiaries
Design and implementation of projects – indicators, procurements, publicity, audit trail, physical execution and status, durability
All levels’ issue: compliance with public procurement legislation – 80 % of irregularities and financial corrections

10. AUDIT OF EUROPEAN UNION FUNDS EXECUTIVE AGENCY
THANK YOU FOR YOUR ATTENTION!
Ludmila Rangelova, CGAP
Head of Bulgarian Audit Authority
Sofia – 1040
4 Slavyanska Str.
Tel: +359(2)
Fax: +359 (2) 10