1. Audit Authority and Auditors Group of “European Territorial Cooperation” Programmes for 2007-2013 Lessons to be learnt from the INTERREG IIIB NWE Auditors Group? Tobias Witschke Finance Officer INTERREG IIIB NWE JTS Tobias@nweurope.org

2. INTERREG IIIB NWE North-West Europe – Key facts 7 EU Member States Total Budget: 330 Mio ERDF July 2005: 305 Mio ERDF committed 95% of budget to projects committed 86 projects with 775 partners

3. INTERREG IIIB NWE Project Control Procedure Paying Authority Programme Bank Account JTS Assesses the Activity Report and the Payment Claim received (check of LP audit statement) Prepares the payment request to the Paying Authority Member States National Authority consulted if any suspicion of irregularity Certified Audit statement for project expenditure Project Lead Partner Receives audited claims + supporting documents Carries all necessary additional checks Project Partner Controls invoices Project Partner Controls invoices Payment Claim Controls Money Flow

4. I. Introduction A.The Audit Authority & Auditors Group of the Next Programme Period (Objective 3 – current INTERREG programmes) B. The work of the NWE Auditors Group C. Lessons to be learnt for the next programming period

5. A. The Audit Authority in the next Programming Period Managing – Certification – Auditing « overall architecture of the proposed management and control system distinguishes clearly between management, certification and control functions »

6. Responsibilities of the Audit Authority Carrying out controls of programme management system and sample controls on projects Submission of an audit strategy at the start of the programme Submission of an annual report about the implementation of the audit strategy Final declaration and a control report at the closure of the programme Meeting regularly the Commission in order to discuss the implementation of the audit strategy

7. Objective 3 ‘Territorial cooperation’ Auditors group Assists the Audit Authority in ‘Territorial Cooperation’ Programmes ( current INTERREG programmes) Composed of representatives from each Programme Member State Chaired by the Audit Authority of the programme and approves its own rules of procedures Set up after three months of the approval of the programme by the Commission Approves the final report of the programme

8. Set up following Letter of Agreement between Member States/MA/PA at the beginning of the programme Since beginning 2003 meets twice the year MA, PA, JTS and Article 15 winding up body also participating Main task: carrying out of Sample checks Broader function as programme’s ‘financial controllers’ B. The INTERREG IIIB NWE Auditors Group

9. The INTERREG IIIB NWE Auditors Group First level control procedure Implementation of sample checks ‘second level control’ Closure declaration of the programme Procedure for Financial Corrections and Recovery of undue amounts

10. C. Experience from the NWE Auditors Group - Lessons to be learnt? Regular and continuous participation of all Member States in the group Early information about the management system of the programme Sometimes confusion between control and management function « Learning by doing » – sample checks should start as soon as possible Agreement on procedures for controls easier than implementing them

11. Experience from the NWE Auditors group - Lessons to be learnt? Transnational implementation of controls needs good communication Compiling of projects results from several member States takes a lot of time Limited resources within Member States for controls of INTERREG programmes Outsourcing of controls on the ground ?

12. Commission proposal sets clear framework for financial controls in new Objective 3 programmes Based on current practice: overall ‘financial control group’ Financial group involved from the start of the programme (tight deadlines) Member States need to be aware and have to make available necessary resources II. Conclusion

13.  NWE programme www.nweurope.org  This presentation Tobias Witschke Finance Officer INTERREG IIIB NWE Joint Techncial Secretariat tobias@nweurope.org The views expressed in this paper are those of the author and do not necessarily represent the views of, neither should they be attributed to INTERREG IIIB NWE programme authorities (Member States, MA, PA etc.) or the NWE Auditors Group. More Information