Internal Control, Risk Management, Irregularities: Management of EU Funds

Workshop: April 16 – 19, 2018ILjubljana, SloveniaIAuditing

This workshop provided a platform for exchange of practices on EU requirements to ensure effective spending of money from the EU budget through structural, cohesion funds and EU external assistance (IPA II and ENI). It addressed the elements of management and control systems of operational programs, including exploring the functions and bodies involved in the management and control of the EU funds; need for internal control systems, performance of risk management systems; arrangements for auditing the functioning of the system; and reporting and monitoring irregularities.

What it was about

To assure that money from the EU budget is spent economically, effectively, and efficiently it is essential to have internal control system in place which provides reasonable assurance for achievement of the set objectives. In this context, this workshop explored principles of financial management of EU funds, Commission’s control modes (preventive and corrective measures) and what are the components of proper internal control system.

As most of the EU budget is executed by country authorities through shared management, we explored what functions and roles national authorities involved in management of the EU funds need to have in place.

Effective and working internal control system is connected to the prevention and detection of irregularities. We specifically addressed preventive and corrective measures against irregularities, fraud risk assessment, reporting and monitoring irregularities, and explore the EU requirements to mitigate risk of fraud, role of European Anti-Fraud Office (OLAF), and meaning of anti-fraud strategies. Control framework (COSO), European Commission’s integrated Internal Control & Risk Management (ICRM) model, and principles and application of risk management will also be addressed. We also looked into audit arrangements both on national and EU level.

The workshop covered the following topics:

  • EU budget, EU funds, and principles of shared management
  • Financial management of money from the EU budget
  • Principles of shared management
  • Internal control systems
  • Risk management
  • Dealing with irregularities and fraud
  • Audit arrangements

What were the benefits

Experienced practitioners from managing authorities, central finance and contracting units, and audit authorities facilitated this workshop. Workshop participants benefited from concrete experience and examples. This workshop was equally relevant for pre-accession countries and EU member states.

By the end of the workshop, the participants:

  • Understood the EU Commission’s requirements for the internal control, risk management, and irregularities when dealing with EU funds
  • Learnt about the ways to apply these requirements
  • Learnt about good practices in internal control, RM, and irregularities when managing EU funds

Who was it for

This workshop brought together officials involved in management and control of EU funds from the quality control, irregularities, risk management, financial management and financial control functions in central finance and contracting units, national fund, bodies responsible for the operational programs, Anti-fraud coordination service (AFCOS) and managing authorities.

The workshop was delivered in ENGLISH only. No translation was provided.

Lead experts

  • Dijana Blažević, Central Finance and Contracting Agency, Croatia
  • Kristina Ozimec Škof, Central Finance and Contracting Agency, Croatia
  • Larisa Vukoja, Central Harmonization Unit, Ministry of Finance, Croatia
  • Arthur Schothius, Central Government Audit Service, Ministry of Finance of the Netherlands
  • Dušan Sterle and Irena Kure,Budget Supervision Office of the Ministry of Finance of Slovenia
  • Josip Mihalic and Irena Brcko Kogoj, Government Office for Development and European Cohesion Policy, Slovenia

Partners

This learning initiative was supported by:

Slovenia's Development Cooperation Ministry of Finance, the Netherlands Ministry of Finance Slovenia
Središnja Agencija za Financiranje i Ugovaranje