1. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20031/9 EDIS The final phase Martin BECK (martin.beck@cec.eu.int) DG Regional Policy Unit G6: Audit of ERDF and ISPA

2. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20032/9 Four Phases EDIS 1: Gap Assessment 2: Gap plugging 3: Compliance assessment 4: Preparation Commission Decision

3. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20033/9 Current state of play (1) Phase 1 completed: Czech Republic: –Deloitte & Touche Estonia: –Deloitte & Touche Hungary: –Government Control Office Latvia: –Price, Waterhouse & Coopers Lithuania: –Ernst & Young Slovakia: –P.E. International Slovenia: –Ministry of Finance Romania –Price, Waterhouse & Coopers Poland –Ernst & Young

4. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20034/9 Current state of play (2) Phase 2 & 3 completed: Estonia: –Price, Waterhouse & Coopers (Phase 2) –Deloitte & Touche (Phase 3) Phase 4 running Estonia –Commission services Contract auditor Phase 2 signed: Hungary –P.E. International Lithuania –Deloitte & Touche Updated information available on: –http://forum.europa.eu.int/Members/irc/budg/fccweb02/ (Financial Control Contact website)

5. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20035/9 Conflict of interests Same auditor can carry out Phase 1 & 3 audit Auditor Phase 2 cannot carry out Phase 1 & 3 audit Phase 4 auditor: Commission services External firms may be called on by Commission to provide assistance These auditors not involved in previous stages

6. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20036/9 Scope Phase 4 audit Assessment of: national and sectoral project management capacity financial control procedures structures regarding public finance Target bodies: NIC NAO and National Fund SAO and supporting staff implementing agencies internal audit bodies bodies responsible for the ex-ante control on tendering and contracting

7. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20037/9 Request file Elements NAO confirming fulfilment of conditions Compliance Assessment Report positive assurance external auditor EDIS request complete and accurate non-blocking findings, requiring action within a fixed time-scale Audit trails payments to contractors claiming funds from EU reporting system (Monitoring Committee, irregularities, final report) supporting documentation Updated ISPA implementation paper Other useful documents (e.g. Manuals)

8. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20038/9 Steps Phase 4 (1) Consultation of other services DG BUDG, MARKT, ELARG, AGRI Directorate F EC Delegation Preparation of the audit Analysis of request file Analysis of earlier audit work Info from ECD on procurement On-the-spot audit Joint methodology DG REGIO/ELARG More oriented on testing system Using COSO approach More info: presentation Berrisford 13.11.2002

9. Annual Meeting of ISPA partners THE EUROPEAN COMMISSION DIRECTORATE- GENERAL REGIONAL POLICY Brussels, 9 April 20039/9 Steps Phase 4 (2) Drafting audit report Findings weaknesses serious enough to block EDIS recommended corrective actions with timetable but not blocking EDIS possible corrective actions without any timetable no comments required Discussion with and submission to manager ISPA: Directorate F Granting EDIS or not to be decided by DG REGIO Decision can vary per implementing agency Opinion of the auditors