How to prepare for Second Level Control Audits

Transcription

1 How to prepare for Second Level Control Audits Experiences from Saxony Economic Development Corporation, Project Partner in 2 nd call CE project AutoNet Transnational Network in Central Europe Sebastian Dittrich, Project Manager AutoNet Vienna, Wirtschaftsförderung Sachsen GmbH

2 Summary Aim Trying to explain the detailed procedure in our specific SLC audit and to sum up some overall challenges, steps, recommendations Content Background information SLC announcement & auditor contact Preparations SLC on-the-spot check The Follow-up & Findings Recommendations Wirtschaftsförderung Sachsen GmbH AutoNet - 2

3 Brief Information Saxony Economic Development Corporation = Wirtschaftsförderung Sachsen GmbH is a state-owned public equivalent bode located in Dresden, Germany Experienced in several ERDF-funded projects within the last 8 years Project Partner No. 5 in project AutoNet = Transnational Automotive Network in Central Europe 2 nd call project, priority 1, area 1.1 Operational time from 03/2010 until 02/2013 Total original budget: 2,136, EUR PP original budget: 226, EUR Germany Berlin Leipzig Dresden Chemnitz Wirtschaftsförderung Sachsen GmbH AutoNet - 3

4 Second Level Control the words you don t want to read in your account SLC announcement via on Communicate! Try to understand the SLC system C&A guidelines, part 4 National Contact Points Presentations from your national FLC seminars Try to estimate the possible PR s, which can be checked: SLC announcement says expenditure declared in or 3 PR s can be checked Think of problems occurred in these reports, recap them! and finally, wait for the auditor to contact you Wirtschaftsförderung Sachsen GmbH AutoNet - 4

5 SLC auditor Ernst & Young Phone call in early April 2012 Additional to expenditure declared in 2011 was a specific amount of money: 16, EUR Our PCR+PR1 = 16, EUR First explanations about procedure and necessary preparations Checking for possible audit dates for the on-the-spot check Agreed date in our case: Availability of involved persons (PM, FM, HR, accountancy, FLC, ) Reserve a room Auditor will send you an additional Notification letter Needed documents to look at, needed copies, needed outputs, Wirtschaftsförderung Sachsen GmbH AutoNet - 5

6 Getting Started First preparations Get your PR & documents, Check for completeness, Recap the problems, Take care of delays arranged in those times (reasons, actual fulfillment, ) Going through detailed list from notification letter: some is already in the PR, some has to be organized additionally Identify responsible persons for calculations, background data, specific doc s Do the calculations again step by step and with data given in the PR Get support from accountancy staff and check the old background data of the calculations, compare it to new ones (stay in same timeslot!) Problems they can occur: Staff or structural changes in your financial department Use of other methods in the fin. department and also in the following PR s Fin. changes due to transfers in the journals, adjustments from annual financial statements, Wirtschaftsförderung Sachsen GmbH AutoNet - 6

7 Shortly before SLC Contact your auditor, who will be present at SLC to deal with last questions, duties and the FLC-presence Print/copy documents requested Application form, PP s budget, Subsidy Contract, Partnership Agreement, Certificates of PR, Receipt of the ERDF payment Prepare documents to have at disposal & Take care that involved persons will be prepared also Originals of PCR+PR1 and their certificates & ERDF payment, Direct invoices (especially T&A), bank account statements & access to the internal accounting system ( accountancy), Contracts of employees ( HR) Prepare the outputs to show (Promotional mat.) & delayed outputs Prepare a binder: documents, calculations, copies and so on Wirtschaftsförderung Sachsen GmbH AutoNet - 7

8 SLC on-the-spot check Show your office, introduce to your team members, show/prove the safe and lockable storing solution for important documents as PR s The auditor will explain the details of this check, and you have to explain: The project itself, its aims, instruments, outputs and actions in the period The specific PR and the possible problems Go through your PR and the prepared SLC binder together with the auditor step by step Ask for the time plan to visit HR & financial department for specific checks Explain the problems honestly, try to find solutions Introduce FLCer to the SLCer, explain his role and normal PR procedure prepare additional documents/proves while auditor is checking Finally, discuss the findings Wirtschaftsförderung Sachsen GmbH AutoNet - 8

9 Findings & Follow-Up Our result: 2 Findings in the end Ind. Admin Costs: we claimed EUR too much Staff Costs: we didn t use the correct calculations but corrected it in the PR2 by our own In the following days & weeks: Send scans/documents, Sign the Letter of Representation After finalizing all SLC s in one project, a draft audit report will be created Draft audit report (incl. annexes) is the summary of the performed procedures, findings and conclusions incl. reasons and solutions After delivery, you and your FLCer have an official opportunity to give a statement on findings from your point of view These statements will be handled within a contradictory procedure, supported by your national member of the Group of Auditors and finally wait for the final version of the audit report Wirtschaftsförderung Sachsen GmbH AutoNet - 9

10 Recommendations Store your PR s, documents, s and notes in a safe storage location Create notes & remarks for specific problems/situations they will always help you (and even other persons) in preparing a SLC Work together with your SLC auditor Focus and try to solve discovered problems in advance Show/Explain your procedures from the past, and give reasons You prepared a good SLC, if you know the findings (roughly) in advance Accept the reasons for the findings and avoid them in your next PR Use the results for further PR s also in other projects Wirtschaftsförderung Sachsen GmbH AutoNet - 10

11 Contact Thank you for listening! If there are any questions don t hesitate to ask me and/or contact me! Wirtschaftsförderung Sachsen GmbH Saxony Economic Development Corporation Sebastian Dittrich Project Manager AutoNet Bertolt-Brecht-Allee Dresden, Germany Tel.: Mobile: Fax: sebastian.dittrich@wfs.saxony.de Web: Wirtschaftsförderung Sachsen GmbH AutoNet - 11