1 / 14

Implementation of Article 73 Ljubljana, 12-13 October 2009

Implementation of Article 73 Ljubljana, 12-13 October 2009. Mark Schelfhout Androulla Ioannou DG Employment, Social Affairs DG Regional Policy and Equal Opportunities . Content. Practices 2000-2006 Inventory of information sources 2007-2013

jelani-freeman
Download Presentation

Implementation of Article 73 Ljubljana, 12-13 October 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Implementation of Article 73 Ljubljana, 12-13 October 2009 Mark Schelfhout Androulla Ioannou DG Employment, Social Affairs DG Regional Policy and Equal Opportunities Ljubljana, 12-13 October 2009

  2. Content • Practices 2000-2006 • Inventory of information sources 2007-2013 • Approach for implementation of Art 73 • Single Audit Concept • Joint Audit Strategy for Structural Actions • Conclusions Ljubljana, 12-13 October 2009

  3. 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

  4. 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

  5. Information sources 2007-2013 • Compliance assessment of MCS • Audit strategy • National audit reports • Annual control reports and opinions • Annual summaries • Coordination meetings Ljubljana, 12-13 October 2009

  6. 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

  7. Implementation of Article 73 • Step-by-step approach • (1) Annual control report and opinion indicate assurance level • 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 re-performance of AA audit work Ljubljana, 12-13 October 2009

  8. 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

  9. 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

  10. Joint Audit Strategy for Structural Actions • Priorities for 2007-13 period: • to obtain assurance on functioning of systems by • (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

  11. Joint Audit Strategy for Structural Actions (1) assessing reliance that can be placed on audit authority • Initial audits 2009-10: selection of OPs with highest risk and responsible AA • 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

  12. 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

  13. 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

  14. Thank you for your attention! Mark.Schelfhout@ec.europa.eu Androulla.Ioannou@ec.europa.eu Tel: +32 2 295 95 18 Tel: +32 2 296 17 94 Ljubljana, 12-13 October 2009

More Related