1. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey Trainer: Aslı Gülgör Procurement of Contract Management Non Key Expert

2. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Irregularity & Fraud

3. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Irregularity Any failure to comply with regulations and any breakdown of management and/or control systems may be treated as an irregularity whether or not the irregularity itself involves any loss or potential loss of funds.

4. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY All institutions involved in the management of IPA assistance must take any required measure to ensure that their respective staff: understand what irregularities are, contribute to the prevention of irregularities, report on irregularities, contribute to the recovery of losses deriving from irregularities contribute to the eradication of irregularities.

5. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Irregularities can be Technical, Contractual, Financial or Administrative. Any of those irregularities can be Intentional or Unintentional and irregularities may have, or not have, a financial impact. Their nature may appear to be Systemic or of the One-off irregularity type.

6. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Irregularities Technical irregularities arise due to the supply of material or workmanship of a lower quality than that specified in the contract, especially for works or supplies. Quality control over the deliveries (quality and quantities) of contractors is of major importance to prevent the occurrence of technical irregularities. Such controls shall be performed on site during site visits and / or on-the-spot-checks.

7. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Contractual Irregularities Contractual irregularities (especially in the context of works and/or supplies contracts) arise due to incorrect application of the legal rules for a contract. Contractual irregularities would include: incorrect delegation of powers and duties, over-certification of payments, incorrect site instructions, incorrect approvals of materials or Contractor’s proposals, incorrect presentation of addenda (Variation Orders for Works), improper handling of the Contractor’s claims.

8. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Financial Irregularities Financial irregularities are fraudulent application or theft of funds, including corrupt practices. Segregation of duties is to be established in all cases (i.e. two independent signatures are needed for the release of any funds) to prevent the misuse of funds. But it is not sufficient: ex-ante controls and supervision procedures shall be applied all over the project management cycle to prevent financial irregularities. Internal and external audit shall perform – in the context of their financial audits – ex-post controls over the financial transactions.

9. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Administrative Irregularites Administrative irregularities mainly arise from non- compliance with applicable rules for the tendering and financing of projects.

10. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Examples invoices made out for undelivered services, goods and works [dummy / fictive invoices], invoices made up by a fictive firm [falsifications], invoices made up in duplicate, invoices made up for excessive amounts, non-charging quantity, price and other discount in the invoices,

11. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Examples fraudulent transfer of funds to a wrong account, manipulating findings of documentary checks, manipulating findings arising from checks on the spot, falsifying and modifying accounting and/or other records and justifying documents, incorrect submission or omission of events, operations or other important information.

12. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Responsibility The following institutions (and their respective staff) should monitor and report irregularities and take, as appropriate, corrective measures: National Authorising Officer, National Fund, National IPA Co-ordinator, Strategic Coordinator, Programme Authorising Officer(s), Operating Structures Senior Programme Officer(s)Representative of End Recipient (SRER), Internal Auditors, External Auditors, Audit Authority

13. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Fraud “Fraud” is an irregularity which is committed deliberately, intentionally by a person / a group of persons / an economic operator with a final aim: “enrichment”.

14. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Fraud The use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities, non-disclosure of information in violation of a specific obligation, with the same effect, the misapplication of such funds for purposes other than those for which they were originally granted

15. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Sorularınız..