1. Nicholas Martyn DG Regional Policy
COCOF 08/0013/00-EN
COCOF 26 March 2008
Action plan to strengthen
the Commission’s supervisory
role of Structural actions
Nicholas Martyn DG Regional Policy
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2. ECA 2006 Annual Report
Control systems in Member States generally ineffective or moderately effective
Commission maintains only moderately effective supervision
Reimbursement of expenditure subject to material error – at least 12%
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3. Commission analysis
Measures taken over last 5 years to improve supervision
Increased audit activity
Remedial action plans in MMSS
Suspensions and corrections
But ─ no measurable impact on reliability of certified expenditure
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4. Transition between programme periods
Strengthened control arrangements for :
Compliance assessment procedure
Approval of audit strategies
Annual audit opinions
More detailed regulatory requirements
Better guidance
But ─ impact on reimbursements not significant before 2009
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5. Basis of the Action Plan
Joint REGIO / EMPL actions to strengthen impact of audits in October 2007
Discharge hearing of 18 December 2007
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6. Objectives of Action Plan
Political commitment to strengthen Commission supervision of structural actions
Single framework for all current and new actions to achieve improved supervision
Specific outputs / indicators / deadlines
Formal monitoring and reporting
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7. Link to recommendations of ECA (1)
11 recommendations identified
Most important:
Complete, transparent, reliable information on financial corrections and recoveries
Improve effectiveness of Commission’s supervisory controls
Ensure sound closure procedures for
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8. Link to recommendations of ECA (2)
Focus on improving first level controls
Encourage use of simplification for period
Increase impact of audit activity by better use of suspensions and corrections
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9. Action Plan Communication adopted 19 February 2008
10 components – 37 actions
Mid-term report 31 October 2008
Final report 31 January 2009
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10. Component 1 – Joint audit strategy 2000-2006
Targeted audits on high risk bodies
Completion of follow-up of 27 current remedial actions plans
Conclude 20 suspension and correction procedures 2000/2006 and 34 correction procedures 1994/1999
Follow-up individual 2006 DAS cases
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11. Component 2 – II CF Action Plan
Action 9 – co-ordination and sharing of audit results
Action 10 – estimating cost of controls
Action 11n – verifying reliability of national reporting on corrections
Action 14b – guidance on controls
Action 15 – promotion of contracts of confidence
Action 16 – co-ordination of audit standards
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12. Component 3 – Preventive actions for closure 2000-2006
Completion of audit enquiry on winding-up bodies
Finalise internal procedure for closure
Raise awareness of MMSS on closure guidelines
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13. Component 4 – Preventive actions 2007-2013
Review of compliance assessment reports and opinions
Review of national audit strategies
Actions on simplification – partial closure/use of flat rates for overheads
Clarification on eligibility issues
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14. Component 5 – Primary controls
Seminar for managing authorities and certifying authorities
Update guidance notes on primary controls and certification function
Provision of self-assessment tool for managing authorities
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15. Component 6 – Reporting on financial corrections by Member States
Follow-up on data reported by deadline
On the spot verifications of a sample of Member States
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16. Component 7 – Reporting by Commission
Improvements in systems for reporting on follow-up of audit recommendations
Improvements in systems for reporting on corrections resulting from Commission audits
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17. Component 8 – Increase impact of Commission audit activity
Launch suspension procedure more quickly when serious deficiencies detected
Speed-up procedures for adapting Commission decisions on suspensions and corrections
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18. Component 9 – Annual activity report
Actions to improve quality of reporting on assessment of MMSS systems
Analysis of summaries and follow-up action in cases of non-compliance
Component 10 – Annual summaries
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19. Strengthening Commission's supervisory role. Action plan time line
Strengthening Commission's supervisory role Action plan time line (number of actions to be implemented)
24 actions 15
17 actions
Report on 31/10/2008
Report on 31/01/09 5
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20. To sum up :. Commission action plan is about squeezing the
To sum up : Commission action plan is about squeezing the residual risk on programmes by time of closure
Improved supervisory and control
systems
Decreased error rate
To close the gap
and reduce the risk to
a tolerable level!
Error rate
Increased recovery rate
Improved information and
strengthened correction mechanisms
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