Audit Authority and Auditors Group of

“European Territorial Cooperation” Programmes for 2007-2013

Lessons to be learnt from the INTERREG IIIB NWE Auditors Group?

Tobias Witschke Finance Officer INTERREG IIIB NWE JTS Tobias@nweurope.org

INTERREG IIIB NWE North-West Europe – Key facts

• 7 EU Member States

• Total Budget: 330 Mio ERDF

• July 2005: 305 Mio ERDF committed

• 95% of budget to projects committed

• 86 projects with 775 partners

INTERREG IIIB NWE Project Control Procedure

Paying Authority

Programme Bank Account

JTS

Assesses the Activity Report and the Payment Claim received (check of LP audit statement)

Prepares the payment request to the Paying Authority

Member States

National Authority consulted if any suspicion of irregularity

Certified Audit statement for project expenditure

Project Lead Partner

Receives audited claims + supporting documents

Carries all necessary additional checks

Project Partner

Controls invoices

Project Partner

Controls invoices

Payment Claim Controls

Money Flow

I. Introduction

A. The Audit Authority & Auditors Group of the Next Programme Period (Objective 3 – current INTERREG programmes)

B. The work of the NWE Auditors Group

C. Lessons to be learnt for the next programming period

A. The Audit Authority in the next Programming Period

Managing – Certification – Auditing

« overall architecture of the proposed management and control system

distinguishes clearly between management, certification and control functions »

Responsibilities of the Audit Authority

• Carrying out controls of programme management system and sample controls on projects

 • Submission of an audit strategy at the start of the programme

 • Submission of an annual report about the implementation of the audit

strategy

• Final declaration and a control report at the closure of the programme

• Meeting regularly the Commission in order to discuss the implementation of the audit strategy

Objective 3 ‘Territorial cooperation’ Auditors group

• Assists the Audit Authority in ‘Territorial Cooperation’ Programmes ( current INTERREG programmes)

• Composed of representatives from each Programme Member State

• Chaired by the Audit Authority of the programme and approves its own rules of procedures

 • Set up after three months of the approval of the programme by

the Commission

• Approves the final report of the programme

• Set up following Letter of Agreement between Member States/MA/PA at the beginning of the programme

• Since beginning 2003 meets twice the year

• MA, PA, JTS and Article 15 winding up body also participating

• Main task: carrying out of Sample checks

• Broader function as programme’s ‘financial controllers’

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B. The INTERREG IIIB NWE Auditors Group

The INTERREG IIIB NWE Auditors Group

• First level control procedure

• Implementation of sample checks ‘second level control’

• Closure declaration of the programme

• Procedure for Financial Corrections and Recovery of undue amounts

C. Experience from the NWE Auditors Group - Lessons to be learnt?

• Regular and continuous participation of all Member States in the

group

• Early information about the management system of the programme

• Sometimes confusion between control and management function

• « Learning by doing » – sample checks should start as soon as possible

• Agreement on procedures for controls easier than implementing them

Experience from the NWE Auditors group - Lessons to be learnt?

• Transnational implementation of controls needs good communication

• Compiling of projects results from several member States takes a lot of time

• Limited resources within Member States for controls of INTERREG programmes

• Outsourcing of controls on the ground ?

• Commission proposal sets clear framework for financial controls in new Objective 3 programmes

• Based on current practice: overall ‘financial control group’

• Financial group involved from the start of the programme (tight deadlines)

• Member States need to be aware and have to make available necessary resources

II. Conclusion

NWE programme

www.nweurope.org

This presentation

Tobias Witschke Finance Officer INTERREG IIIB NWEJoint Techncial Secretariat tobias@nweurope.org

The views expressed in this paper are those of the author and do not necessarily represent the views of, neither should they be attributed to INTERREG IIIB NWE programme authorities (Member States, MA, PA etc.) or the NWE Auditors Group.

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