They need to ensure that their audit methods are up-to-date, accurate and capable to uncover bad governance so that they can recommend innovative and adequate solutions.
Old threats in a new environment
Due to the expanding of responsibilities and new fields of activities, public sector auditors need to extend their know-how on a daily basis. At the same time, fraud and corruption remain the biggest threat to a proper functioning of public institutions. The European Academy for Taxes, Economics & Law supports internal and external auditors by providing the high-quality practical seminars and trainings in key issues such as:
Extend your expertise by participating in the various events held by the European Academy for Taxes, Economics & Law in this area.
See our range of training opportunities in EU Funding here.
Higher education and research institutions face unique challenges in Internal Audit. Their complexity, individuality and diverse foci and fields of work make for a wide array of issues, which are not covered by common place Internal Audit knowledge covered by the private sector.
Closure of Operational Programmes 2007-2013 has to be conducted simultaneously to the management of the new programming period 2014-2020.
Technical Assistance (TA) for European Structural Funds has been in use for several years now. However, there are many changes that will apply to Technical Assistance in the new Programming Period 2014-2020.
In times of austerity, audits of public procurements have gained in importance. However, practitioners from public administrations often find auditing public procurement processes to be one of the most challenging and complex fields to audit. Misspent public money in low quality services and goods can endanger both the financial and operational integrity of an organisation.
Many authorities within the management and control system of EU Funds still face considerable difficulties and uncertainties when it comes to detecting and handling (suspected) fraud cases. They are presented with the challenge of distinguishing these cases from irregularities as well as identifying necessary actions.
The ESI Funds 2014-2020 offer the possibility to support an operation comprising a series of works, activities or services of a precise economic or technical nature (for which the total eligible costs exceed 50 million Euro) as well as operations contributing to one thematic objective (where the total eligible costs exceed 75 million Euro) such as transport, water, waste and energy projects.
With the integration of the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF) into a single Common Provisions Regulation for the programming period 2014-2020 and the introduction of single rules for management and control of all European Structural and Investment Funds (ESIF), the management and implementing bodies of EAFRD and EMFF have to follow the single set of rules, decisions and procedures.
The European Commission has set out detailed arrangements on the management and control systems to be operated by Member States for the EU Structural Funds in both programming periods (2007-2013 and 2014-2020).
The New Programming Period has begun and the National Programmes are in the process of their submission and examination by the European Commission. With the new year, comes the practical implementation of the rules and regulations for the two remaining Home Affairs Funds: the Asylum, Migration and Integration Fund (AMIF) and the Internal Security Fund (ISF).
The new EU Directives on Public Procurement implicate a number of modifications and bring in some significant changes, particularly to the range of contracts subject to the EU public procurement regime.
In current times of tight public budgets, public administrations must set and achieve their goals in the most effective, efficient and economical way. This new obligation also alters the responsibilities of auditors in the public sector. To ensure that public institutions operate most efficiently and effectively, auditors can no longer focus on their traditional task of financial audits.
With the start of the new programming period 2014-2020 new regulations and rules regarding financial management, control and audit have been introduced. On the basis of the Common Provisions Regulation, Fund-specific rules as well as delegated and implementing acts EU-Member States have created and set up management and control systems for the European Structural and Investment Funds (ESI Funds) 2014-2020.
Revenue generating projects under Art 61 of the Regulation (EC) 1303/2013 are projects that generate net income after their completion. These include investments in infrastructure which generate direct incomes (net revenues) for their utilisation.
Fraud and corruption in the public sector heavily harm the economy, lower investment levels and reduce public finances. Anti-fraud and anti-corruption strategies are often not effective enough and damages done to public institutions and their budgets by fraud and corruption can be enormous ranging from financial loss to reduction of organisational performance, reputation, credibility and public confidence.
The European Union (EU) and its Member States remain the world’s biggest donor, providing more than half of all development aid worldwide. However, in order to cooperate successfully with the EU and to benefit from the external cooperation funds, beneficiaries have to follow a multitude of administrative regulations and fulfil all external audit requirements.
Whether internal or external, strategic, financial, operational or reputational risks – these can significantly hinder the work of your authority. In the current economic and financial context the lack of an adequate approach to risk management is an enormous and real threat to the work of any public administration, since nowadays work efficiency and effectiveness in the public sector are more important than ever before. For that reason, it is of extreme importance that public authorities do not rely solely on their intuition in dealing with risks, but use professional formalised risk management as an integral and ongoing part of their general management process.