Transcript Slayt 1

Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın
Uygulanması için Kurumsal Kapasitenin Oluşturulmasına
Yönelik Teknik Yardım
This project is co-financed by the European
Union and the Republic of Turkey
Technical Assistance on Institutional Building for the
Implementation of RCOP in Turkey
Basics of Financial Management under
IPA Programme
Ankara, 16 September 2011
[email protected]
IPA Funds Programme Management 12-19 sept. 2011
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Content
This project is co-financed by the European
Union and the Republic of Turkey
1. Budget Allocations in IPA Structure
2. Flow of Funds
3. Functions and Role of the Finance Division
under the RCP-CID and RCOP
4. Lifecycle of Expenditures
5. General overview for payments
6. Plenary Discussion and Questions
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
1)Budget Allocations in IPA
Structure
Let’s start from the beginning
The Commission must keep tight control over the way the
Community budget is executed since, under Article 274 of
the EC Treaty, the Commission is ultimately responsible
for budget implementation of both commitments and
payments.
The Commission has to take appropriate steps to ensure
that the principles of sound financial management are
being adhered to in all cases.
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
When the Commission
gives money?
Implementation of the budget is only delegated to Member
States (shared management) or third countries
(decentralised management) if the Commission is
satisfied that the countries in question will implement the
budget in accordance with the rules in force and with the
principles of sound financial management and that a
clearance of accounts/financial correction mechanism is in
place to correct potential irregularities.
IPA Funds Programme Management 12-19 sept. 2011
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Before deciding
This project is co-financed by the European
Union and the Republic of Turkey
 Before confer management powers the Commission is
checking the fulfillment requirements to the management
and control systems – Accreditation Process
 If you need Commission money you should answer the
requirements
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Requirement for implementation
of IPA Programme
 The Commission confers the management of certain
actions on the beneficiary country, while retaining overall
final responsibility for general budget execution.
 For this purposes of assistance under the IPA Regulation
decentralised management shall cover at least tendering,
contracting and payments which at the same time refers
to the life cycle of expenditures.
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
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Accreditation Criteria Annex to
the IPA Implementing Regulation
718
Control Environment
Planning and Risk Management
Control Activities
Monitoring Activities (supervision of interventions)
Communication (ensuring all actors receive information
necessary to fulfill their role)
IPA Funds Programme Management 12-19 sept. 2011
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Remember the COSO Model?
This project is co-financed by the European
Union and the Republic of Turkey
Control Activities mainly
related with the financial
management of IPA
funds
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Budget Allocation (IPA) 2007-2013
Instrument for Pre- Accession
Assistance
Budget: 11,468 billion euros
Candidate Status
 Croatia (Hırvatistan)
 the former Yugoslav
Republic of Macedonia
(Makedonya)
 Turkey (Türkiye)
IPA Funds Programme Management 12-19 sept. 2011
Potential candidate status
 Albania, Bosnia&
Herzegovina (Arnavutluk,
Bosna Hersek)
 Iceand (İzlanda)
 Serbia and Montenegro
including Kosovo
according to UNSCR 1244
(Sırbistan, Karadağ ve
Kosova)
Allocation of IPA funds per component for Turkey
Source: Instrument for pre- accession assistance (IPA) revised multi- annual indicative financial framework for 20112013
Component
2007
2008 2009 2010 2011 2012
2013
1: Support for transition and
institution building (Kurumsal
Kapasite Geliştirme)
257
250 233 211 231 234
238
2: Cross-border
cooperation(Bölgesel ve Sınır Ötesi
İşbirliği)
2
3: Regional development (Bölgesel
Kalkınma)
9
9
10
10
10
10
168
174 183 238 291 368
378
4: Human resource development
(İnsan Kaynaklarının Gelişimi)
50
53
56
63
96
5: Rural development (Kırsal
Kalkınma)
21
53
86
131 173 198 213
497
539 566 654 782 900 936
Total in million
EUROS
78
90
This project is co-financed by the European
Union and the Republic of Turkey
For Turkey: 2007-2013
Total Budget allocation for Turkey under all IPA
Components: 4,874 billion euros
 Total Budget allocation for Component 3,
Regional Development: 1,800 billion euros
IPA Funds Programme Management 12-19 sept. 2011
For 2007-2013 (Ministry of Science,
Industry and Technology)
This project is co-financed by the European
Union and the Republic of Turkey
Component 3: Regional Development 2007-2013
RCOP
2007 2008
2009
2010
2011
20072011
Priority 1 Business environment
36,5
47,7
80,1
98,5
300,7
*
37,9
20122013
20072013
Estimation for 2012-2013 based on the MIFF and 33% share of RCOP in Component 3.
Priority 2 Enterprise capacity and
entrepreneurship
9,9
10,2
12,9
2,2
2,3
37,5
Priority 3 Technical Assistance
3,0
3,0
3,9
1,7
2,7
14,3
Totals
49,3
51,1
64,5
84,0
103,5
352,5
IPA Funds Programme Management 12-19 sept. 2011
223,7 * 576,2*
This project is co-financed by the European
Union and the Republic of Turkey
2) Flow of Funds(Logical
Framework)
EU Contribution:
Fund transfer from the Commission to the NF
National Co- Financing: Fund transfer from
the Line Ministries to the NF
For Both:
Fund transfer from the NF to Contracting
Authority
IPA Funds Programme Management 12-19 sept. 2011
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FLOW OF FUNDS
This project is co-financed by the European
Union and the Republic of Turkey
IPA Funds Programme Management 12-19 sept. 2011
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Request of Funds from the Commission
(Brussels)by the NF (Turkey)
This project is co-financed by the European
Union and the Republic of Turkey
 Request of Funds from
 Payments, transfer of
the Commission
(Brussels)by the NF
(Turkey)
IPA Funds Programme Management 12-19 sept. 2011
funds from the
Commission(Brussels) to
the NF(Turkey)
15
This project is co-financed by the European
Union and the Republic of Turkey
• National
National Authorising Officer
(Ulusal Yetkilendirme Görevlisi)
Authorising
Officer (NAO):
• is the head of the National
Fund (NF)
• has the full responsibility
for
the
financial
management of EU funds
• responsible
from
the
legality and regularity of
transactions
• responsible
from
the
effective functioning of
management and control
systems
under
IPA
regulation
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
The Responsibilities of the
NAO/NF
Responsibilities of NF&NAO according to Article 26 of
the IPA regulation:
 requesting funds from the Commission;
 organising the bank accounts;
 authorising the transfer of funds received from the
Commission to the Contracting Authority/Operating
Structures
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Request of Funds from the
NF
According to Article 40 of the IPA regulation:
In relation to each IPA component&programme, each year
by the 28 February, each Beneficiary country shall send to
the commission a forecast of its likely payment applications
for the financial year concerned and for the subdequent
financial year.
IPA Funds Programme Management 12-19 sept. 2011
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To request the funds
This project is co-financed by the European
Union and the Republic of Turkey
Signature of the Financing Agreement, the Contracting
Authority in close cooperation with the OS shall, on the
basis of:
• The Procurement Plan and
• Commitment and Disbursement forecasts provided
to the NAO / NF with their forecasts for payment
to Contractors.
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This project is co-financed by the European
Union and the Republic of Turkey
Payments by the Comission
to the NF
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Request of Funds from the
Line Ministries (Brussels)by
the NF (Turkey)
 Request of Funds from
the Line Ministries by the
NF (Turkey)
IPA Funds Programme Management 12-19 sept. 2011
 Payments, transfer of
funds from the Line
Ministres to the
NF(Turkey)
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This project is co-financed by the European
Union and the Republic of Turkey
The OS / Contracting
Authority is responsible for:
The request for funds from the National
Fund ensuring the national co-financing
The payment to Contractor
Responsibility of OS/Contracting Authority
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Ensuring the National cofinancing
•As a general rule and unless otherwise agreed with
the EC:
•Investment projects require national co-financing
equivalent to at least 15% of total eligible
expenditure under the relevant project
•Technical assistance projects require national co-
financing equivalent to at least 10% of total
eligible expenditure under the relevant project
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Request of Funds from the NF
by the Contracting Authority
 Request of Funds from
the NF (Turkey) by the
Contracting Authority/OS
IPA Funds Programme Management 12-19 sept. 2011
 Payments, transfer of
funds from the NF to the
Contracting Authority/OS
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This project is co-financed by the European
Union and the Republic of Turkey
Request of Funds From the NF
to the Contracting Authorithy
The amounts of the Requests for Funds are established on
the basis of detailed disbursement forecasts based on the
invoices already checked and approved by the
OS/Contracting Authority and end-recipients, derived from
detailed commitment forecasts developed by the OS and
payment schedules under signed contracts
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Request of Funds from the NF
by the OS/Contracting
Authority
• Finance Division is preparing the Requests for Funds on
a regular basis (generally quarterly basis)
• Finance Division is responsible to check the approved
limit and if there is a difference between the requested
and approved amount to clarify the issue with the
National Fund
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
3) Responsibilities of Finance
Division under RCP-CID / RCOP
 Sound Financial Management
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Overall Responsibilities of
Finance Division
1)Request for Funds from the National Fund
2)Payment Authorisation and Execution
3)Financial Reporting
4)Accounting
VERY IMPORTANT!
Clear segregation of duties between two functions
- Finance
- Accounting
IPA Funds Programme Management 12-19 sept. 2011
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Segregation of Duties
This project is co-financed by the European
Union and the Republic of Turkey
 In accordance with the good internal control practice the following
shall be in place in relation to financial procedures:
– Segregation between payment authorisation and payment
execution
– Segregation between financial management and accounting
Accountants responsible for maintaining the IPA accounting records are
not involved in the approval nor in execution of payments
- Segregation between financial management and tendering
Accounting and payment approval functions are separated from the
tendering function
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities of Finance
Division
Finance Function
Staff
Chief of Finance Division
IPA Expert- Payment 1
IPA Expert- Payment 2
IPA Funds Programme Management 12-19 sept. 2011
Responsibilities
• Preparation of Request
for Funds
• Execution of payments
for service, framework,
supply and works
contracts
• Provision of assistance to
VAT exemption and other
tax related issues
• Financial Reporting
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This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities of Finance
Division
Accounting Function
Staff
Chief of Finance Division
Responsibilities
• Organising book-keeping
activities
• Presto
IPA Expert- Senior Accountant
IPA Expert- Accounting
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Responsibilities of Finance
1) Request for Funds
• Request of Funds from NF
• Verification of availability of funds and checking if the
funds are available under the relevant sub-account to
execute the payment
• Checking if the amount requested in the Request of
Funds are adequate for the reimbursements, in order to
avoid a surplus balance of the funds and late payments.
IPA Funds Programme Management 12-19 sept. 2011
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2) Payments
This project is co-financed by the European
Union and the Republic of Turkey
• Receiving requests for payment from contractors, checking legitimacy of
request
• Checking and verifying the payment dossier in accordance with the contract
dossier and standard EU procedures in force at the time
• Double-checking of the Payment Dossier;
• Checking and verifying the “Good for Payment” amount
IPA Expert- Payment 1
proposed by the
• Checking the Transfer and Payment Order Form prepared by the IPA ExpertPayment 1 and make sure the sub-accounts, payment accounts, bank
details of the Contractor and the payment amounts are correct,
IPA Funds Programme Management 12-19 sept. 2011
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3) Reporting
This project is co-financed by the European
Union and the Republic of Turkey
• This function describes the activity of financial reporting performed
through OS Accounting program, OS database - MIS and reports
prepared manually based on supporting information from these
systems.
• Reports submitted by the OS are the basis for the NF further
reporting to the EC. All reports are provided in the standard format
agreed by the NF
• Monthly Financial Report, providing to the National Fund, for
distribution to the NAC and EC Representation in Ankara, monthly
reports covering the status of projects being implemented and the
financial status of each programme
IPA Funds Programme Management 12-19 sept. 2011
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4) Accounting
This project is co-financed by the European
Union and the Republic of Turkey
• Establishing and maintaining the accounting system
• Registration of the contracts with all necessary details;
such as Contract Number, Contractor, Contract Amount,
Estimated Payment Amounts, Bank Details of the
Contractor, bank guarantees, payment requests;
• Organises the book-keeping activity;
• Ensures appropriate book-keeping and registration for
each programme, objective, component, contract;
Making records of payments under signed contracts
IPA Funds Programme Management 12-19 sept. 2011
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4) Lifecycle of Expenditures
This project is co-financed by the European
Union and the Republic of Turkey
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Types of Components
Service: Procurement of consultancy, research, know-how
and training
Supplies: Procurement of equipment, materials
Works: infrastructure, superstructure and oher engineering
works
IPA Funds Programme Management 12-19 sept. 2011
Name of the Training
37
Fee based
Service
(FWC)

Based on
Direct Costs


Supplies
Works
Global price


Twinning

Grants
(Direct
Grants)

5) Payments to the Consultants
/Contractors
This project is co-financed by the European
Union and the Republic of Turkey
IPA Funds Programme Management 12-19 sept. 2011
Sözleşme Türü
(Component
Type)
Avans Ödemesi
Pre-financing payment
Ara ödeme
Interim Payment
Nihai ödeme
Final Payment
12 ay veya daha az %40
Ücret bazlı
12-24 (24 hariç)
%30
Hizmet
This
project is veya
co-financed by the European
Union and the Republic of Turkey
24 ay veya fazlası %20
Birim
Fiyat
Müşavirlik
Service/FWC
*Fee- based
Service/TA
*Unit Price
Supervision
6 ayda bir
(%90’ a kadar)
% 10
Götürü Usulü
Hizmet
Global Price
% 60
N/a
%40
İnşaat
Works
%10
Hakedis Ödemeleri Aylık olarak
yapılır.
Ara ödemelerden %5 retention
kesintisi yapılır.
Retention
Supply
%60
MalIPA
Alımı
Funds Programme Management 12-19 sept. 2011
%40
40
This project is co-financed by the European
Union and the Republic of Turkey
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Basic Terminology during the
payment process of the project
Contractor: For all types of contracts
Consultant: For service contracts
An official commercial request for payment/payment claim/invoice
The complete contract number
The complete contract title
Invoice number
Date of issue of the invoice
The type of payment claim
The period covered by the payment claim
IPA Funds Programme Management 12-19 sept. 2011
Types of Payments
This project is co-financed by the European
Union and the Republic of Turkey
 Pre-financing
 Further pre-financing
Interim Payment
 Balance
Different in all components!!!
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
After the request of payment is
received from a Consultant by
the Contracting Authority:
 The invoice of the Consultant is registered in the Invoice
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Register upon receipt by the OS
The original invoice is also registered into the accounting
system
The Invoice is checked with Invoice Identification Control
Sheet
If approved a payment order is prepared by Finance
Manager
Once the payment to the contractor is done the Contracting
Authority shall inform the Consultant about the payment
IPA Funds Programme Management 12-19 sept. 2011
Time Frame for payment
This project is co-financed by the European
Union and the Republic of Turkey
 Within 45 days of receipt of the contract signed by all
parties and all relevant documents (request for payment,
financial guarantee if applicable).
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
The submission and approval of the below
documents are necessary to start to 45 days
payment deadline (Example service
contracts)
 Invoice / request for payment
 A detailed list of expenses for fees and incidentals which
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form the financial report which shall indicate the
cumulative expenditure and the balance available.
Related Progress Report
Expenditure Verification Report by external auditors
Timesheets for the related period
Working at weekend or national holiday approvals
Subject to the approval of the interim report by end
recipient and Contracting Authority in accordance with
Article 27 of General Conditions
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
The role of the end-recipient:
 A copy of the front page of the invoices stating “Read and
Approved” signed and dated by two authorised
signatures one of which is the SRER is a pre-requisite for
starting the payment request and execution of the
payment deadline of 45 days.
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
Approval of the progress
report
 The approval of the progress report is a pre-
requisite to proceed with the payment
 The period of the progress report should
comply with the period of expenses in the
request for payment/invoice.
 The progress reports should be accompanied
by a financial report and an expenditure
verification by the audit firm
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
Audit Firm for the expenditure
verification & eligibility of costs
 Notification from the Consultant related to the audit
firm
 The audit firm has to be a member of an
internationally- recognised supervisory body for
statutory auditing according to Atricle 20 of the
contract
 CPA or YMM in Turkey
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
Basic Terminology
During the implementation of the
project
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
Verifications on fees/mandays
To execute a payment there should be reliable and
sufficient evidence that:
 the experts employed by the consultant have actually
been working on the contract for the number of days
claimed in the Consultant’s invoices
 Fees are paid for services actually rendered, the time
worked.
 STEs must have CFCU prior approval
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
Eligibility Verifications on Incidentals
Incidental Budget Approval Requests
 All incidental expenditure in contract is to be invoiced at
actual cost
 The invoice and /or other documents must be compatible
with the Turkish regulations.
 A number of items are ineligible, examples include:
 VAT, customs and import duties
 Types of administration
 etc.
IPA Funds Programme Management 12-19 sept. 2011
Exchange Rates
This project is co-financed by the European
Union and the Republic of Turkey
 Conversion of expenses incurred in currencies
other than Euro should be based on the monthly
Info euro exchange rates published by the
European Commission web site.
www.europa.eu.int/comm/budget/inforeuro/index.cfm
?fuseaction=dsp_html_monthly_rates&lamguage=en)
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
Physical Storage of the
Documents
 Relevant documentation must be kept for a 7-year period
after the final payment made under the contract
 All supporting documents are kept carefully
IPA Funds Programme Management 12-19 sept. 2011
This project is co-financed by the European
Union and the Republic of Turkey
AS YOU SEE Control Activities –
mainly related with the financial
management of IPA funds
• Verification – ensuring double-check of all steps in a
transaction
• Procedures
for
supervision
by
accountable
management of tasks delegate to subordinates
• Payment procedures (including procedures for
confirmation of output delivery and eligibility conditions
“on-the-spot where necessary
IPA Funds Programme Management 12-19 sept. 2011
54
More....
This project is co-financed by the European
Union and the Republic of Turkey
• Budgetary procedures – to ensure
availability of funds (including funds
necessary to maintain implementation if
Commission funding is delayed or refused)
• Procedures for monitoring delivery of cofinancing
• Procedures for continuity of operations
IPA Funds Programme Management 12-19 sept. 2011
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And More....
This project is co-financed by the European
Union and the Republic of Turkey
• Accounting procedures – ensuring full and
transparent accounting following accepted
accounting principles
• Reconciliation procedures – ensuring that
wherever possible accounting balances are
reconciled against third-party information
• Security procedures – ensuring that assets and
data are kept secure from interference or
physical damage
• Archiving procedures ensuring that documents
will be available and kept secure
IPA Funds Programme Management 12-19 sept. 2011
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And More....
This project is co-financed by the European
Union and the Republic of Turkey
• Segregation of duties – ensuring that where
different tasks in the life of the same
transaction are allocated to different staff to
ensure some automatic cross-checking controls
• Reporting of internal control weaknesses –
ensuring that the registration of any internal
control weakness identified from any source
and that management responses are recorded
and followed-up.
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
Preminary Discussions
Questions
IPA Funds Programme Management 12-19 sept. 2011
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This project is co-financed by the European
Union and the Republic of Turkey
THANK YOU!
IPA Funds Programme Management 12-19 sept. 2011
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