Please find hereunder the answers to your questions about the open call for tender SRD/01/01/2014 - Framework contract on the execution of audits and controls and the development of audit and control strategies in the areas of home affairs and justice Contract notice in 2014/S 210-371098 of 31/10/2014 Q1: Section I.2 of the specifications states that audits may be carried out in any place where the Union funds in questions are managed or used (almost exclusively in EU and EFTA member states). Furthermore section I.5 states that audits can take place anywhere in the world. Would it be possible to receive an indication of actual or intended distribution of audits by location, for instance by providing details of audit locations during the current framework, by country or by geographical region? A1: Currently, audits are carried out exclusively in EU and EFTA member states whereas the distribution between the different member states varies throughout the different years depending on the priorities set by DG Home Affairs and Justice. As the priorities for audits to be conducted in the next years are still not defined, at this moment in time, it is not possible to provide a reliable estimate of the distribution of audits by location. In addition, the new multiannual financial frameworks of both DG's include also new funding areas, therefore the past and current distribution of audits by location would not be indicative for the future allocation of audits. The new funds managed by DG Home Affairs also include an external dimension, and for this reason we have foreseen the possibility for audits to be executed in countries outside the EU and EFTA. However, we expect that such audits would represent a very limited part of the total audit plan. Q2: Section IV.2.2 part 2) states that the team must be able to work and draft reports in English and/or French. The section on reporting (p.10) also refers to the languages: the audit report and management letter must be drawn up in English or French. Could you please clarify whether this means that contractors may receive specific requests to draft reports just in French or sometimes also in both languages, or whether this means that the contractor will be able to decide in which of the languages certain sections of reports can be drafted? A2: The language of the audit reports will be defined by the Contracting Authority in each specific contract whereas in most cases the audit reports are requested in only one language. Based on the experience so far, the major part of the audit reports would have to be drafted in English. However, depending on the specific audit assignment, audit reports in French may also be requested by the Contracting Authority.
Q3: Also in relation to the above point, the section on reporting (p.10) also mentions A translated version in the language of the country in which the audit was carried out may be requested. Could you please confirm whether such costs can be reimbursed separately or whether they should be incorporated in the prices (daily rates) as explained in section III.2.3? If these costs should be incorporated in the pricing, could you please provide indications on what basis we can assess the volume of translation costs, notably how many pages per audit on average? Without any such indication, it is difficult to assess the possible costs of translation. A3: Costs for translation of audit reports shall be incorporated in the prices (daily rates) referred to in Section III.2.3. of the tender specification and in Annex 5 (Price scenario evaluation form). Our expectation for the future years is that the average volume to be translated would be of 300 pages per year. Q4: Could you indicate the total volume of assignments outsourced under the previous framework contract by type of audit (by reference to the same analysis set out in section 1.2 (1) of the Technical Specifications). Could you also indicate the nature and number of assignments undertaken under each category set out in I2 of the Specifications ie 1) Assistance with execution of audits and controls and 2) Assistance with the development of audit and control strategies. A4: As the priorities for audits to be conducted in the next years are still not defined and the new multiannual financial frameworks of both DG's include also new funding areas, the past and current distribution of audits by type of audit would not be indicative for the future allocation of audits. As mentioned in point I.2. of the technical specifications, the execution of audits and controls (1) is estimated to represent at least 85% of the total volume of the framework contract. The allocation key was made based on the experience made under the current framework and also taking into account the general outline of the new multiannual financial framework of both DG's. Q5: Could you also provide some indicative analysis, based on the descriptions in I.2(1) of the Specifications, of the geographic spread of the various assignments under the previous framework contract. It would be preferable if this could be provided by individual country, but at a minimum it would be good to know: Within EU, Within Associated States and Candidate Countries and Rest of the World (including details of where in this case). A5:Currently, audits are carried out exclusively in EU and EFTA member states whereas the distribution between the different member states varies throughout the different years depending on the priorities set by DG Home Affairs and Justice. As the priorities for audits to be conducted in the next years are still not defined, and the new multiannual financial
frameworks of both DG's include also new funding areas, the past and current distribution of audits by location would not be indicative for the future allocation of audits. The new funds managed by DG Home Affairs also include an external dimension, and for this reason we have foreseen the possibility for audits to be executed in countries outside the EU and EFTA. However, we expect that such audits would represent a very limited part of the total audit plan. Q6: The respective DGs manage many different programmes and projects which involve the award of grant on a direct, shared or decentralised management basis. Could you clarify which of these programmes are within the scope of the proposed framework contract and which are not (in part or whole). A6: All programmes and management modes fall within the scope of the framework contract. Q7: Could you provide some indicative analysis of the nature and types of grant recipients within these programmes that we may be asked to audit? A7: The recipients of grants from the Commission under direct management mode are published each year under the so called "Financial Transparency System". Under the following link, information on the type of grant recipients and the volume of grants may be consulted http://ec.europa.eu/budget/fts/index_en.htm For shared management, each Member State has the same obligation as the Commission to publish the recipients of grants from the four funds established under the General Programme "Solidarity and Management of Migration Flows". This information may be consulted on the respective website of each member state. http://ec.europa.eu/dgs/home-affairs/financing/fundings/index_en.htm Q8: We understand that the anticipated annual audit assignment volume is around 120 per annum. Is it possible to provide any information as to the relative size and / or complexity of these assignments by reference to likely man-days of fieldwork needed (high, low and average)? A8: The figure of 120 refers to the average annual number of projects externalised based on the experience of the past four years and should not be understood as the anticipated
annual audit assignment volume. The size and complexity of each specific audit assignment vary throughout the different years depending on the priorities set by DG Home Affairs and Justice. As the priorities for audits to be conducted in the next years are still not defined and the new multiannual financial frameworks of both DG's include also new funding areas, at this moment in time, it is not possible to provide a reliable estimate on the relative size and complexity of the audit assignments to be performed following this call for tender. Q9: We have understood from section III.1 of the Specifications that, excluding annexes, the main Technical Proposal must not exceed 10 pages. Is this correct and is this limit an absolute maximum? Would pages in excess of 10 be automatically ignored for evaluation purposes? A9: As no specific format is requested (e.g. size and type of characters or paper), the 10 pages limit as mentioned in the technical specifications must be understood as indicative size and therefore the bid may contain a few more pages (e.g. the introduction) provided that the overall size of the document remains reasonable. Q10:Can we consider the 10 page maximum (without annexes) as an indicative requirement provided that the overall size of the document remains reasonable (e.i. 15 pages)? If we decide to include an introduction to the tender, will this information still be considered as part of the 10 pages? A10:As no specific format is requested (e.g. size and type of characters or paper), the 10 pages limit as mentioned in the technical specifications must be understood as indicative size and therefore the bid may contain a few more pages (e.g. the introduction) provided that the overall size of the document remains reasonable. Q11: Paragraph 1.2 of the tender specifications: The commission may require several types of services, such as audit of legality and regularity, audit of financial statements, agreed procedures, system audits, performance audit, initial audit, EDP audit and specific assignments. Would it be possible to provide us with the split for all the requested services. If this is not possible, would you please specify which services you will most likely require the most? A11: As the priorities for audits to be conducted in the next years are still not defined and the new multiannual financial frameworks of both DG's include also new funding areas, at this point in time, it is not possible to provide a reliable estimate on how the audit assignments will be split between the different types. Q12: Paragraph IV3.1 of the tender specifications: The methodology for organising and performing audits and audit related services in complex legal environments must be described.
Can you please provide more detailed information what you mean by complex legal environments. Can you give an overview and split of the several complex environments, such as co-existance of union, different national rules, projects under shared management, NGO's, etc. A12: As DG Home Affairs and Justice manage funds under three management modes (direct, shared and indirect), audit work would involve taking into consideration various legal basis depending on the management mode, under which funds were granted by the Commission. Some examples of legal basis are the Financial Regulation and its Rules of Application; Shared Management Four Funds' current legal basis as well as the legal basis for the two Funds under the new multiannual financial framework; National and EU eligibility rules; Public Procurement and Defence Procurement Directives; Commission Decisions on specific issues etc. Also, the legal status of the auditee may vary depending on each audit assignment (e.g. Member State's public authorities; NGO's; local government; private bodies etc) and it would require appreciation of the specific legal requirements applicable to the auditee (e.g. rules on VAT; accounting rules on depreciation; calculation of staff costs for civil servants etc). All these factors are considered to trigger a complex audit legal environment. Q13: Can you inform which funding years/program periods are subject to audit under this new frame work contract? What years are covered by the old now ongoing framework contract and what years are subject to this new framework contract? A13: Audit assignments under the new framework contract subject to this call for tender, will be requested for the current programmes as well as for programmes under the new financial framework. The on-going framework contract has covered so far audit assignments under the current programmes of both DG's.