EUROSTAT 2017 Control programme

Transcription

1 EUROSTAT 2017 Control programme Information meeting on Financial Issues Luxembourg 14 March 2017 ESTAT Unit A4 Budget, financial management and internal control

2 Control objectives Legal basis: Art. 66(5) and 66(6) of the Financial Regulation (FR) and related implementing rules; Art. II.27 of the provisions of the grant agreement "Checks, audits and evaluation"; Controls are conducted to: - check the legality and regularity of transactions including sound financial management; - detect, correct and help to avoid errors in the future; - provide the basis for the annual declaration of assurance the Director General has to give to the EU Institutions. 2

3 Eurostat control environment Ex ante control In-depth ex ante control Random based Risk based Audit certificate Ex post control Ad hoc controls Regulation FR 66(5) FR 66(5); RAP 49(3) RAP 207(3) FR 66(6) Coverage 100% of all payments Random sampling Riskassessment Grant agreements as from EUR EUcontribution Riskassessment e.g. periodic assessment of unit cost method 5 payments per year Around 5 beneficiaries per year Around 3-6 grant agreements per year Around 2 to 6 beneficiaries per year When? Before payment Before payment Before payment In the context of interim & final payment After final payment On request

4 Eurostat control strategy Comprehensive approach of complementary ex-ante and ex-post controls; Yearly programme of in-depth controls, based on a riskanalysis and random sampling; Risk-based approach; Increasing focus on cost-efficient controls. 4

5 Ex-ante controls In depth ex-ante controls based on additional supporting documents: Random sample each payment may be sampled for an in depth ex-ante control; Focused sample based on criteria such as the amount, conclusions of the last controls, other information which may have an impact on EU funds; May be on the spot (beneficiaries' premises); Process: the beneficiary is informed by letter. Suspension of the payment. Request for supporting documents: A quick reply from the beneficiary avoids cumulative suspensions of payment requests. Follow-up controls to test corrective measures. 5

6 Ex-ante controls Results from last years (real cost incurred) Lack of supporting documents and misinterpretation of grant rules; Staff cost calculation: unavailability of real individual data, wrong calculation method, incorrect application of the pro-rata rule. 6

7 Ex-ante controls Errors to be avoided: Missing supporting documents in case of controls (time recording, pay slips, direct costs); Incomplete payment request (missing cost breakdown, Annex 3); long delay in submitting the supporting documents; Retroactive use of scales of unit cost; Use of retroactive time sheets; MBGA/block grants: several cost claims instead of one final payment request; MBGA: Insufficient follow-up of the financial implementation; Change of the bank account without informing the Commission. Check applicable rules in the grant agreement and guidelines of the year the call was launched! 7

8 Control on Unit cost methodology Findings Time interval for UC-calculation not correct (interval of FTE calculation different to interval of calculation of basic salary); Calculation not based on annual staff cost (instead 1 month multiplied by 12 and holidays pro-rata); Not all staff included in calculation; Untaken holidays not linked to correct reference year; Wrong allocation of staff to pay grades; Not all possible salary components included in calculation.

9 Ex-post control General process Planning Fieldwork Reporting Selection of beneficiaries Check on-the-spot (incl. Formal announcement of controls (incl. date and grant agreements selected) Introductory meeting, collection of control evidence, exit meeting) Transparent control follow-up (Preliminary Findings Sheets for beneficiary for comments) Contradictory procedure on draft control report giving the beneficiary the possibility for comments and presenting additional evidence before Eurostat issuing the final control report 9

10 Ex-post control lessons learnt Financial findings Errors in calculation of staff costs (miscalculation, mathematical errors); Attribution of staff to wrong staff category (scales of unit cost); Supporting documentation not in line with cost claimed; Missing documentation (e.g. missing time sheets); Documentation not provided by co-partner (MBGA); VAT claimed (however not eligible). 10

11 Ex-post control lessons learnt Internal control findings Time records not signed on a regular basis Original documents not kept (to be kept for a period of 5 years from date of payment Art. II.27.2 GA) 11

12 Ex-post control Other issues Understated costs: In case the ex post control reveals understated costs (under declared), they will not be reimbursed by Eurostat; Overstated costs of a specific grant agreement cannot be set off against understated costs of another (different) grant agreement. Recovery order: The deadline of the debit note should be respected otherwise interest are due (at present 3,5%).

13 Ex-post control THANK YOU FOR YOUR ATTENTION! 13