Transcript Titre du slide show

European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Implementation of Article 73
Ljubljana, 12-13 October 2009
Mark Schelfhout
Androulla Ioannou
DG Employment, Social Affairs
and Equal Opportunities
DG Regional Policy
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Content
 Practices 2000-2006
 Inventory of information sources 20072013
 Approach for implementation of Art 73
 Single Audit Concept
 Joint Audit Strategy for Structural Actions
 Conclusions
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Practices 2000-2006
• Approaches
– System audits and audits of operations
– Reliance from other Commission/ECA audits
– Reliance on information from national audit
activity
– Contract of confidence
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Practices 2000-2006
• Difficulties
– No ex-ante control of systems
– Non-standardized audit strategy and/or unclear
risk assessment
– Absence of common audit methodology
– Lack of timely exchange of information
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Information sources 2007-2013
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Compliance assessment of MCS
Audit strategy
National audit reports
Annual control reports and opinions
Annual summaries
Coordination meetings
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Implementation of Article 73
• Regulation- « …Commission may ..rely
principally… » if:
– …compliance of systems…is without reservations
– …audit strategy of audit authority is satisfactory
– …reasonable assurance…that management and
control systems function effectively…
– …on the basis of ..audits by Commission and Member
State
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Implementation of Article 73
•
Step-by-step approach
–
(1) Annual control report and opinion indicate
assurance level
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•
–
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Works well, only minor improvements needed (unqualified
opinion)
Works, but some improvements needed (qualified opinion)
- ONLY on a case-by-case basis
(2) Combined with low error rate resulting from the
audits of operations
(3) satisfactory results from the review and reperformance of AA audit work
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Implementation of Article 73
•
Step-by-step approach (con’t)
– (4) sufficient coverage of audit universe
– (5) official notification by the Commission of
its conclusion to put into effect Article 73(3)
– (6) increased coordination
– (7) if there is evidence of shortcomings…
Ljubljana, 12-13 October 2009
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European Union
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•
•
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Single audit concept
Coordination with Member States: technical
meetings, annual bilateral meetings, and
Homologues
Common standards: guidance-ARM, standard
models and internationally accepted audit
standards
Financial Regulation
–
–
Internal Control Standards
Annual Summary
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Joint Audit Strategy
for Structural Actions
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Priorities for 2007-13 period:
– to obtain assurance on functioning of systems
by
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(1) assessing reliance that can be placed on audit
authority and
(2) conducting systems audits and substantive
testing of operations, where applicable
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Joint Audit Strategy
for Structural Actions
(1) assessing reliance that can be placed on
audit authority
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Initial audits 2009-10: selection of OPs with
highest risk and responsible AA
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Desk work to review procedures of AA
On-the-spot visits to review audit files
Re-performance of systems audits
Re-performance of audits of operations
2010+ : Selection of OPs with lower risk and
responsible AA
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Joint Audit Strategy
for Structural Actions
(2) conducting systems audits and
substantive testing of operations, where
applicable
•
•
based on risk assessment and/or
focus on bodies which will not be immediately
subject to national audit
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Conclusions
• Greater responsibility on audit authority
• Reliance by the Commission – subject to
conditions for Article 73 being met
• Greater coordination, less Commission
audits
• Reconsideration of Article 73
Ljubljana, 12-13 October 2009
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European Union
Republika Slovenija
Homologues Group Meeting
Slovenia, October 2009
Thank you for your attention!
[email protected]
[email protected]
Tel: +32 2 295 95 18
Tel: +32 2 296 17 94
Ljubljana, 12-13 October 2009
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