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THE CERTIFYING AUTHORITYTHE CERTIFYING AUTHORITY

How the Certifying Authority can How the Certifying Authority can deliver assurance?deliver assurance?

Adérito PintoEuropean Commission

DG Regional Policy

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How assurance will be built up 2007-2013

How theCertifyingAuthority candeliverassurance?

Audit opinion at closure

Commission audits

Annual opinion basedon national audits

Certification of expenditure Management verifications

Compliance assessment

Guarantees in programme negotiations

Ex post

During

implementation

Ex ante

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EUROPEAN COMMISSIONEUROPEAN COMMISSION

CERTIFYING AUTHORITYCERTIFYING AUTHORITY

MANAGING AUTHORITYMANAGING AUTHORITY

??EU AUDITSEU AUDITS

BENEFICIARIESBENEFICIARIES

AUDIT AUTHORITY

AUDIT AUTHORITY

How the

Certifying

Authority can

deliver

assurance?

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THE CERTIFICATION FUNCTION

How the

Certifying

Authority can

deliver

assurance?

I, the undersigned, representing the Certifying Authority:

Certify that all expenditure included in the attached statement of expenditure complies with criteria for eligibility of expenditure set out in Art. 56 of Reg.1083/2006 and …

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THE CERTIFICATION FUNCTION (2)

How the

Certifying

Authority can

deliver

assurance?

I also certify that operations are progressing in pursuance with the objectives laid down in the decision and in accordance with Reg. 1083/2006, and in particular that:

The expenditure declared complies with applicable Community and national rules and…

The statement of expenditure is accurate, results from reliable accounting systems and is based on verifiable supporting documents

…

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THE CERTIFICATION FUNCTION (3)

• The Commission prepared a:

GUIDANCE DOCUMENT ON THE FUNCTIONS OF THE CERTIFYING AUTHORITY for the 2007 – 2013 programming period

How the

Certifying

Authority can

deliver

assurance?

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OBJECTIVE OF THE DOCUMENT

How the

Certifying

Authority can

deliver

assurance?

The objective of the document is to provide guidance on the functions of the Certifying Authority (CA) under Article 61 of Council Regulation (EC) N° 1083/2006.

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OBJECTIVE OF THE DOCUMENT (2)

It is intended as a reference document for the Member States for the implementation of Art. 61 of Reg. 1083/2006.

Member States are recommended to follow the guidance, taking account of their own organisational structures and control arrangements.

How the

Certifying

Authority can

deliver

assurance?

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MAIN FUNCTIONS OF THE CA(Art. 61 Reg. 1083/2006)

How the

Certifying

Authority can

deliver

assurance?

• Obtains assurance that the expenditure complies with Community and national rules

• Certifies statements of expenditure to the Commission;

• Maintains the accounting records (in computerised form) for the expenditure declared;

• Keeps account of amounts recoverable and of amounts withdrawn and repays the recovered amounts to the general budget of the European Union.

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SET UP/ORGANISATION OF CA

How the

Certifying

Authority can

deliver

assurance?

Key requirement is the clear definition, allocation and separation of functions between the CA and the other authorities as well as within the CA.

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SET UP/ORGANISATION OF CA (2)

How the

Certifying

Authority can

deliver

assurance?

The Commission has recommended that MS adopt a solution whereby the CA is assigned to a different organisation from the MA and AA;

Where this was not followed, MS must take mitigating measures.

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SET UP/ORGANISATION OF CA (3)

How the

Certifying

Authority can

deliver

assurance?

Good practice:

• In view of the direct responsibility of the CA it is recommended avoiding delegation of tasks as far as possible.

• Where formal arrangements are established to delegate tasks they should be recorded in writing specifying the tasks, the obligations of the intermediate body to carry out them properly and the power of the CA to review or to withdraw delegation.

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SET UP/ORGANISATION OF CA (4)

The test of the independence of the CA is that it has the requisite authority to refuse to certify expenditure presented by a Managing Authority when it is not satisfied that all the conditions are met.

How the

Certifying

Authority can

deliver

assurance?

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Certification of statements of expenditure

The CA must have adequate evidence to be able to conclude that it has sufficient assurance to submit to the Commission a certified statement of expenditure.

The assurance should be based on evidence that the systems of the MA and intermediate bodies are functioning effectively to prevent, detect and correct irregularities.

How the

Certifying

Authority can

deliver

assurance?

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Certification of statements of expend. (2)

The CA obtains such evidence from:

Compliance assessment report and opinion;

Reports of the MA on the execution of the management verifications;

Audit reports and the annual control report of the AA;

Audit reports of the Commission and the European Court of Auditor or other audit bodies;

The CA should, when necessary, reinforce further its assurance by additional examination carried out by its staff on the level of the MA and IB.

How the

Certifying

Authority can

deliver

assurance?

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Certification of statements of expend. (3)

Good practice:

The Commission recommends that the Managing Authority send to the CA regular reports on its control activities with information on key indicators which demonstrate the functioning of the system.

How the

Certifying

Authority can

deliver

assurance?

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Certification of statements of expend. (4)

If the CA is not satisfied about the legality and regularity of the whole, or part, of the expenditure claim, it should send the claim back to the Managing Authority with instructions for remedial actions.

If the evidence provided justifies adequately the legality and regularity of the expenditure claim, then the CA certifies the statement of expenditure to the Commission.

How the

Certifying

Authority can

deliver

assurance?

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Accounting system and the audit trail

Reg. 1083/2006 and Reg. 1828/2006 require the existence of an adequate audit trail and computerised system:

adequate accounting records of expenditure declared to the Commission should be maintained in computerised form;

audit trail within the CA should allow reconciliation of the expenditure declared to the Commission with the expenditure statements received from the Managing Authority.

How the

Certifying

Authority can

deliver

assurance?

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Accounting system and the audit trail (2)

The use of a single electronic Monitoring Information System (MIS) by the Managing Authority, the Certifying Authority and Intermediary bodies is recommended;

Where different systems have been developed, the CA should lay down the content and format of the information that must be provided to upload to the CA;

The Managing Authority should provide all information in the requested format and within the deadlines mutually agreed;

The CA should have full read-access to the Managing Authority system information.

How the

Certifying

Authority can

deliver

assurance?

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KEY MESSAGES Discuss and agree now with MA on reporting

required for certification – content and timing;

Make clear to MA that if it does not provide the required information, the CA will not be able to certify;

Put in place effective procedures and adequate resources to receive and examine the information provided by MA, AA and other audit bodies;

How the

Certifying

Authority can

deliver

assurance?

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KEY MESSAGES (2)

Establish clear procedures to follow when information is not sufficient to allow certification;

Put in place robust data systems for financial reporting, including for recoveries and withdrawals;

• Do not duplicate work of MA.

How theCertifyingAuthority candeliverassurance?

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Thank you for listening.How theCertifyingAuthority candeliverassurance? Contact:

Adérito PintoDG REGIO J.4E-mail: aderito.pinto@ec.europa.eu