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

2. 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

3. 1. Institutional framework 2014 - 2020

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

5. 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

6. 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

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

8. 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.

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

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

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

12. 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:

13. Thank you!