Report on the parallel audit on the Management and Control Systems for Assistance Granted under the Structural Funds

Report ID: 68

This was a parallel audit on the application of the Structural Funds regulations, to ensure that all Member States establish appropriate audit trails and implement independent checks on 5% of transactions. The results of the audit will be used by all current and prospective new Member States in developing their own management and control systems.

The main conclusions were:

• In most countries there is a sufficient audit trail as required by regulations, although some weaknesses in the audit trail were noted when examining individual projects, these were not usually systematic weaknesses, but individual project failings.
• The progress reporting of projects was felt to be relatively weak, focusing largely on financial monitoring without providing any link to the outputs and outcomes of the projects.
• In most countries the execution and reporting of the 5% checks complied with Commission Regulation 438/2001. Where this is not the case, the relevant authorities have taken steps in the right direction to ensure that the required checks will be carried out by the end of the programming period.
• The independence of the organizations that carry out the 5% sample checks was guaranteed in all programmes.
• The implementation of the 5% checks across all countries has been relatively slow and has often not been evenly spread over the period to date.
• The way the Structural Fund rules are formulated by the European Commission (Commission) leaves room for ambiguous or even contradictory interpretations.
• Furthermore, some Member States expressed concern about an increasing burden to implement the new provisions for the 2000 - 2006 Programme, with little opportunity to apply a risk-based approach, and associated resource costs that were out of proportion to the funding provided by the European Union.

Source: https://www.eca.europa.eu/sites/cc/Lists/CCDocuments/1959819/1959819_EN.PDFhttps://www.eca.europa.eu/sites/cc/Lists/CCDocuments/1959819/1959819_EN.PDF

Report on parallel audit on the processes of identifying reporting and following-up on irregularities

Report ID: 69

In total the 2000-2006 Structural Funds programme involved an expenditure of 141,5 billion Euro (without Community initiatives, innovative measures and technical assistance) to the nine Member States whose SAIs carried out the parallel audit.

The significance of the value of Structural Funds to all Member States prompted the Contact Committee in 2000 to establish a Working Group to carry out an exploratory survey of EU structural funds. A questionnaire was sent to the SAIs to gain an understanding of how these funds were controlled and managed by the various countries and to identify possible risk areas. Work was planned to coincide with the 2000-2006 funding cycle and revision of the regulations covering the funds.

The Working Group reported its findings from this work to the Contact Committee in November 2002 and recommended to conduct  a parallel audit aimed to identify parts of the controls that need to be improved, and provide an overview of best practice. It was determined that the best way to achieve this was to focus the parallel audit on the application of the regulations, to ensure that all Member States establish appropriate audit trails for transactions and implement independent checks on 5% of transactions. The results of the audit would be used not only for the Member States, but also for the new Member States.

Each SAI produced a Country Report which has been consolidated to provide an overall conclusion, identify good practice, weaknesses and recommendations arising from the work. Issues raised byindividual SAIs are annotated under each Objective where appropriate. The Working Group have then produced the combined report summarising the key findings and recommendations from those Country.

The audit approach was enhanced through the participation of the European Court of Auditors (ECA), in particular, towards the end of the report drafting process the ECA benchmarked the draft report findings and recommendations against those reported by the ECA. The report contains recommendations for  audit trails and 5% checks as well as for  future parallel audits.

Source: https://www.eca.europa.eu/sites/cc/Lists/CCDocuments/1959819/1959819_EN.PDF

Report on the parallel audit on the Performance of the Structural Funds programmes of the EU in the areas of employment and or environment

Report ID: 70

In 2006 the Contact Committee gave a mandate to the Working Group on Structural Funds to continue its reviews of Structural Funds issues and specifically to carry out a focused review on “Performance (output/effectiveness) of the Structural Funds programmes in the areas of employment and/or environment″. The Working Group agreed an Audit Plan which provided a framework for carrying out the review. Each SAI examined their respective national administration’s work on the planning, monitoring and evaluation of projects, measures, sub programmes or programmes (as appropriate) co-financed by the Structural Funds.

The SAIs of Austria, Finland, Germany, Hungary, Italy, Latvia, Malta, The Netherlands, Poland, Portugal, Slovak Republik, Slovenia, Spain and the United Kingdom participated in the audit. The SAIs of Bulgaria, the Czech Republic and Lithuania and the ECA were observers. The aim was to identify potential improvements in the Structural Funds’ programmes, especially in their planning and in their administrative management.

The review involved each SAI in an examination of the Structural Funds (objectives 1 and 2) in the areas of employment and/or environment, and concluding on the following:

• if and how national authorities monitored the sustainable success of the funded measures;

• to what extent aid measures (sub programmes, major projects and other projects) provided an effective and sustainable contribution to the strategic goals of the Structural Funds.

The subject of the audit was an important topic of relevance to both the 2000-2006 and 2007- 2013 Structural Funds’ programmes. The audit was concerned with the two Key Areas of the strategic planning and the evaluation of aid measures. Based on the examination of measures from the period 2000-2006 each of the SAIs aimed to conclude on the extent to which Member States have contributed to the realisation of the respective OP’s strategic goals. As the goals of the Structural Funds have continued from the 2000-2006 period to the programme period 2007-2013, the findings from the audit of measures from the period 2000- 2006 have been used to inform the recommendations for the improvement of the new period 2007-2013.

The report sets out good practice identified by individual SAIs, relevant for both programme periods 2000-2006 and 2007-2013. As a general matter of good practice, many of the lessons learned from the 2000-2006 programme period have been incorporated into Member States’ administrative arrangements for 2007-2013.

Source:https://www.eca.europa.eu/sites/cc/Lists/CCDocuments/1959901/1959901_EN.PDF

AUDITORIA COORDENADA SOBRE HABITAÇÃO SOCIAL

Report ID: 301

 O tema da habitação social é central para a realidade da América Latina e das Caraíbas, dada a elevada percentagem da população que vive actualmente em condições precárias. Dada a inquestionável importância social e económica da habitação social na região, no âmbito do Grupo de Trabalho de Auditoria de Obras Públicas (GTOP) do OLACEFS, foi realizada uma auditoria coordenada sobre este tema. As ISC da Argentina, Brasil (Coordenador de Auditoria), Chile, Colômbia, Costa Rica, Honduras, México, Paraguai e República Dominicana participaram na auditoria, a qual teve o apoio da GIZ.

O objectivo da auditoria foi verificar se as políticas de habitação social e os projectos de construção em cada país participante estavam em conformidade com todos os aspectos e recomendações que a Comissão Económica para a Europa das Nações Unidas (UNECE/ONU) apresentou no documento intitulado Guidelines on Social Housing - Principles and Examples (2006), considerado essencial para determinar se a habitação é adequada e também se os objectivos quantitativos estabelecidos para a construção de unidades habitacionais foram definidos e estão a ser cumpridos. Para o efeito, foram revistas as leis e outros regulamentos aplicáveis aos programas de habitação auditados e foi inspeccionada fisicamente uma amostra de 64 unidades/projectos de habitação concluídos, distribuídos por cada país participante, que no seu conjunto totalizam 36.633 habitações.

Source: https://www.olacefs.com/26-10-2016informe-internacional-de-la-auditoria-coordinada-sobre-vivienda-social-portugues/ 

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Report on the three-border area of Hungary, Slovenia and Austria

Report ID: 75

Environment and nature protection are decisive factors in modern society. As environmental problems do not stop at national borderlines, intensive international cooperation is needed in order to prevent and reduce pollution. Supreme Audit Institutions (SAIs) as independent organizations have a special function in covering these topics.

With the aim to contribute to a supranational approach on environmental issues, the Heads of the SAIs of the Republic of Hungary, Republic of Slovenia and the Republic of Austria decided to carry out a coordinated audits on how to treat the frequently identical problems of environment and nature protection in the region located along the joint borders of the three countries. All SAIs already had experience with successful bilateral audit cooperation; this trilateral audit denotes a further step in cooperation and exchange of know-how between the SAIs of the Republic of Hungary, Republic of Slovenia and the Republic of Austria.

The environmental audits carried out by the three SAIs covered the topics water, soil and nature protection. The audited area comprised the border region of the three countries with emphasis on the region of Raab/Rába and Mur/Mura border river basin and protected areas. The audits covered the period 2000-2005 with focus on the trends and recent developments.

The main objectives were to address:

• the quality of rivers, groundwater, soil and natural habitats,

• the situation of sewage disposal,

• the effectiveness of the measures taken by the authorities to foster environment and nature protection, and of the application of funds,

• deficiencies and need for further measures.

In the audits special emphasis was given to the transboundary cooperation of the competent authorities of the three countries in the field of environment protection.
The audits were carried out in the spirit of tight cooperation of the three SAIs. Beyond the in-depth reconciliation of the audit highlights with one another, each of the three SAIs carried out the audit under its own authority and as part of its annual national audit program. Audit results were published in separate national reports and condensed to the joint report, compiled by the three SAIs.

Source:https://www.asz.hu/storage/files/files/Angol_portal/coordinated_audit_reports/0542ar.pdf?ctid=524

Report in german: intosai-cooperativeaudits.org/catalog/report/umweltschutz-im-dreilndereck-ungarn-sterreich-und-slowenien