Experience from programming period 2004-2006 Audit findings & Winding-up activities

1. Experience from programming period 2004-2006 Audit findings & Winding-up activities Ministry of Finance Audit Authority Department Jiri Pesina Unit of ERDF, EFF, ESF programmes CONFERENCE NEW MEMBER STATES 18. – 20. APRIL 2011, PLZEŇ

2. Outline • Closure of assistance 2004 – 06 period in Czech Rep. • Winding-up methodology (manual – checklists) • Winding-up process • Audit findings • Winding-up barries • Submission of documents to EC • Open issues • Experience made

3. Closure of assistance 2004 – 06 period in Czech Rep. Operational programmes – Objective 1 • OP Human Resources Development – ESF • OP Rural Development and Multifunctional Agriculture – EAGGF, ESF • OP Industry and Enterprise – ERDF • OP Infrastructure - ERDF • Join Regional OP – ERDF, ESF

4. Closure of assistance 2004 – 06 period in Czech Rep. • Operational programmes – Objective 2 Single Programming Document for Prague – ERDF • Operational programmes – Objective 3 Single Programming Document for Prague – ESF

5. Closure of assistance 2004 – 06 period in Czech Rep. • EQUAL – ESF • INTEREG IIIA (5X) – ERDF • INTEREG IIIB – ERFD • INTEREG IIIC – ERDF • ESPON – ERDF • INTERACT - ERDF

6. Closure of assistance 2004 – 06 period in Czech Rep. • ISPA/CF transport section – 8 projects • ISPA/CF environmental section – 13 projects • ISPA/CF technical assistance – 5 projects • CF transport section – 5 projects • CF environmental section – 25 projects • CF technical assistance – 1 projects

7. Winding-up methodology (manual – checklists) • EC Closure Guidelines from year 2006 KOM(2006)3424 • Towards a Successful Closure of Structural Funds 2000-2006 Programmes - Answers & Questions and its annexes from 2009,2010 • AA-WuB winding-up guideline for performing the closure audit work (from 2009, updated 2010) A manual was elaborated with E&Y contribution

8. Winding-up process • Desk checks of system audits and sample checks reports (AA-WuB supervision, participation) • Desk checks of SAO reports • Desk checks of EC, ECA reports (AA-WuB participation) • Own on-the-spot checks (MA, IB, CA, FB)

9. Audit findings • Sample checks findings • Irregularities: • In most cases, non-elegible project costs and its accounting (accounting records); • Breaking public procurement rule. • System audits findings • Stabilization HR (historical memory); • Methodology (Audit trail);

10. Winding-up barries • Irregularities (following and clearing up irregularities); • Methodology (should be standardised as far as possible); • Open findings, additional review of AA-Wu-B declaration;

11. Submission of documents to EC - MA sends the final implementation report after approval from the MC • PA sends final declaration of expenditure, list of operations, list of irregularities and reimbursements • AA-Wu-B attaches final audit report and winding up declaration Documents were sent as a package (via Perm. Rep.) • 2003 – first CZ winding-up with CF projects • 2010 / 03 – first CZ winding up with operational programme

12. Winding-up: open issues EC reaction: • Ask for additional information related to irregularities, confirmation data sent; • Additional audit on winding-up envisaged in one case (from DG REGIO in May 2011);

13. Experience made • Closure procedure takes more time and energy than expected: • Setting up the deadlines for collection of Management ‘Closure documents is necessary. • The work to be done and the timetable should be scheduled in cooperation with every participating body (MA, IB, CA, AA-Wu-B) necessary;

14. Thank you for listening Ministry of Finance of the Czech Republic Depatrment of Audit Authority Unit 523 – Audit of ERDF, ESF and EFF programmes jiri.pesina@mfcr.cz