THE NATIONAL MANAGEMENT DECLARATION

1. THE NATIONAL MANAGEMENT DECLARATION TO BE OR NOT TO BE IN PART OR IN WHOLE Jules Muis, an advocacy view 19 December 2007, COCOBU

2. COMMON SENSE MEMBER STATE OWNERSHIP: MISSING LINK IN EU CONTROLS ARCHITECTURE (legal optic) • NATURAL FIT IN EU CONTROLS ARCHITECTURE (controls optic) • LEVER FOR CHANGE FOR THE BETTER; • ENABLING INSTRUMENT • DISCOVERY INSTRUMENT • POWERFUL ACCOUNTABLITY TOOL • CLAPPING WITH TWO HANDS

3. BURNING PLATFORM CHRONIC ADVERSE ECA AUDIT OPINION. • OLAF EXISTENCE/FINDINGS- mainly triggered by third parties, not systems • MEMBER STATES ‘ABSENTEE LANDLORDS’ • RESULTING LACK OF OWNERSHIP • CONTROLS CONSTRUCTS PROCESS RATHER THAN RESULTS DRIVEN • EXPENSIVE, EXPENSIVE, EXPENSIVE

4. MACRO-ASSURANCE DECLARATION • RESULTS BASED RATHER THAN OPEN-ENDED BEST EFFORT PREDICATED • PREVENTATIVE/EX ANTE • MAKING THE IMPLICIT EXPLICIT • PUTTING OWNERSHIP WHERE IT BELONGS • POWERFUL SELF-DISCOVERY TOOLS • OWNERSHIP DRIVEN WHERE IT BELONGS • NOVEL

5. PITFALLS • DO WE REALLY WANT TO KNOW? • SELF-INCRIMINATING? • POLITIZATION SIGN-OFFS • RED TAPE EFFECT, IF ANY • COST/BENEFITS? • WHO CARES…AFTER 50 YEARS…? • SAND IN THE WHEELS OF FORTUNE

6. JOINT EU/NATIONAL INTEREST • WHAT IS GOOD FOR EU=GOOD FOR NATIONAL SCENE AND VV • EU ASSURANCE=NATIONAL ASSURANCE • EU CONTROLS LEVEL PLAYING FIELD • SELF DISCOVERY NATIONAL CONTROLS WEAKNESSES; SELF CLEANSING • MEETING TREATY PROVISIONS/EXPECTATIONS

7. THE BENEFITS OF IGNORING THE INSTRUMENT • MUDDLING THROUGH, BUSSINESS AS USUAL; STATUS QUO ASSURED • HAPPIER FINANCE MINISTERS • EVASIVE BY-PASS CONTROLS CONSTRUCTS • HAPPY SAI’S • LIVING WITH THE DEVIL YOU KNOW • FEWER DIFFICULT CHOICES TO MAKE • PROCESS AS FIDUCIARY FIG LEAF

8. THE COSTS OF IGNORING THE INSTRUMENT • TRACTION, TRACTION, TRACTION • ACCOUNTABILITY, ACCOUNTABILITY,ACCOUNTABILITY • OWNERSHIP, OWNERSHIP, OWNERSHIP • IGNORING TREATY ARCHITECTURE • CONVOLUTED BY-PASSES • NO BASELINE ANY EU CONTROLS CONSTRUCT • NATIONAL IMPLICIT ‘DISCLAIMER’ BY DEFAULT

9. CRYSTAL BALL 2010 • PILOTS WILL HAVE PROVEN HIGH RETURN ON INVESTMENT • MAJORITY IMPLEMENTATION • MINORITY EVASION, AT A PRICE • HUNGER FOR EU LEVEL PLAYING FIELD; POWEFUL PEER PRESSURE • CLEAR DEADLINE FOR MANDATORY IMPLEMENTATION

10. SAI/ECA POSITION 2010 • ECA HAS COME TO REALIZE/RECOGNIZE DECLARATION AS INDISPENSIBLE LINK IN CONTROLS FRAMEWORK • GOOD SAIs (majority) BAD SAI’S (minority) • ROLL OUT EU INTEGRATED CONTROLS FRAMEWORK/SINGLE AUDIT STAGNATED BECAUSE OF PIECEMEAL APPLICATION • POLITICAL SENSE OF URGENCY TO FOLLOW ONE LINE

11. (O)PTION OR (M)ANDATORY? • EU LEVEL PLAYING FIELD OR NOT (M) • LEARNING CURVE PILOTS OR NOT (O) • FUNDAMENTAL SOLUTIONS OR INCREMENTAL/PIECEMEAL (M) • TREATY ENFORCEMENT OR ‘MIGHT MAKES RIGHT’ (M) • DO WE WANT TO GET IT RIGHT OR ONLY IN THE RIGHT DIRECTION (M) • SITTING US OUT: TIME SHALL TELL (O)

12. CRYSTALL BALL 2012 • EU HAS MATURE REALISTICLY RISK PROFILED CONTROLS&SINGLE AUDIT FRAMEWORK • NATIONAL MANAGEMENT DECLARATION IS MANDATORY BASELINE; MOST CARRY QUALIFICATIONS • REPORTING FRAMEWORK WITH QUALIFIED CLEAN DAS ON MANAGEABLE RISKS (80%); AND EXPLICIT UP FRONT QUALIFICATIONS FOR INHERENT HIGH RISK AND/OR SUBSTANDARD AREAS (20%), (MAINLY DEVELOPMENT AID)

13. SOFTBALL QUESTION • HOW LONG WILL PARLIAMENT BE ABLE/WILLING TO CONTINUE GIVING DISCHARGE IN THE FACE OF INCREMENTAL IMPROVEMENTS ONLY (‘PROGRESS’, WITHOUT EVER GETTING THERE) WITH THE PROSPECT OF ANOTHER 5 YEARS OF ADVERSE AUDIT OPINIONS?

14. HARDBALL QUESTIONWHO WILL BLINK FIRST? • WILL ANSWER TO SOFTBALL QUESTION BE THE SAME IF MEMBER STATES CALL PARLIAMENT’S BLUFF, AND ARE UNWILLING TO COMPLY WITH MANDATORY IMPLEMENTATION OF THE NATIONAL MANAGEMENT DECLARATION?