1. 1 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 System evaluation and sampling – first audit experience in the 2007 – 2013 period Nataša Prah Director Budget Supervision Office of the Republic of Slovenia Nataša Prah Director Budget Supervision Office of the Republic of Slovenia

2. 2 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Introduction 1.Structural Funds System in Slovenia 2.What we have planned 3.What we have done 4.What and how we have planned for expenditure in 2008 5.What and how we have done for expenditure in 2008 6.How we intend to report for expenditure in 2008

3. 3 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Structural Funds System in Slovenia 1.Three Operational programs:  Improving human capital: approved on 21st of November 2007  Strengthening of regional development capacity: approved on 27th of August 2007  Strengthening environmental and transport infrastructure development: approved on 27th of August 2007

4. 4 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Structural Funds System in Slovenia (2) 2.Management framework:  1 Managing Authority  1 Certifying Authority  11 Intermediate Bodies: human capital (8), regional development (5) and environmental and transport infrastructure (2)  Several Final beneficiaries and  1 Audit Authority

5. 5 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What we have planned 1.Three Compliance assessments: Outsourced to the private audit firm 2.Common system – common audit approach – one Audit Strategy: Done by the Audit Authority

6. 6 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What we have done 1.Compliance assessments:  Approved by the European Commission: on 14th of August 2008 for Improving human capital, on 28th of May 2008 for Strengthening of regional development capacity, on 17th of March 2008 for Strengthening environmental and transport infrastructure development

7. 7 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What we have done (2) 2.Audit Strategy:  Approved by the European Commission on 21st of October 2008 3.Work done in accordance with the Audit Strategy:  First Audit Report and opinion on 31st of December 2008: Audit Report: work done till 30th of June 2008 Audit opinion: disclaimer of the audit opinion

8. 8 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What and how we have planned for expenditure in 2008 WHAT AND HOW:  Audit work planned for reporting till 31st of December 2009: Follow up of the recommendations from three compliance assessment reports System audit at the Managing authority Since there were no expenditure submitted to the European Commission foreseen till 31st of December 2008 we have not planned any audits of operations

9. 9 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What and how we have done for expenditure in 2008 (2) WHAT:  Till 30th of June we have performed: 1.Follow up audits: recommendations from compliance assessment reports 2.System audit at the Managing authority HOW: 1.Follow up audits:  Review of the implementation of the recommendations related to the findings during the compliance assessment audit

10. 10 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What and how we have done for expenditure in 2008 (3)  Evaluation of the recommendations implemented: In accordance with the Common methodology for the assessment of management and control system It is incorporated into the assessment of the authority concerned 2.System audit at the Managing authority:  Assessment of the system regarding 7 key requirements, 23 assessment criteria and a detailed audit programme prepared for evaluation of each assessment criteria

11. 11 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What and how we have done for expenditure in 2008 (4)  Evaluation of each step in the audit programme using the same four categories (works well, works, works partially, essentially does not work)  Final result for evaluating each step in the audit programme was evaluation of each assessment criteria  Review of evaluated assessment criteria  Evaluation of each key requirements  Review of evaluated key requirements  Evaluation of the Managing authority

12. 12 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What and how we have done for expenditure in 2008 (5)  Example:  Key requirement: Adequate management verifications  Assessment criteria: On-the-spot verifications based on adequate risk assessment  Detailed audit programm:  Is selection of projects which are the subject of on-the- spot review based on a risk assessment?  Is the selection procedures defined in the internal documents?

13. 13 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 What and how we have done for expenditure in 2008 (6)  Are the foreseen procedures actually performed?  Is the risk assessment adequate (review of criteria for selection, selection procedures, project selected)?  Were the selected project indeed the subject of on-the- spot verifications?  Is there a sufficient audit trail on the work done?  Are the records of on-the-spot checks performed kept clear?  In case of irregularities found was there a proper procedure undertaken (report, actions,..)

14. 14 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 How we intend to report  Second Audit Report and opinion till 31st of December 2009:  Audit work done from 1st of July 2008 till 30th of June 2009: Audit Report: system audits performed Audit opinion: disclaimer of the audit opinion

15. 15 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 The end  Questions  Comments  Best practice

16. 16 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Thank you for your attention! natasa.prah@mf-rs.si Tel: +386 1 369 6900