01 October 2013

Audit AuthorityEU Funds Audit Department

Ministry of Finance

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Content

Overview of systems and operations audits:

1.System audits (ACR 2013)

• Implementation of the system audit plan

2.Audits of Operations (ACR 2013)

• Sample of audit of operations

• Results of audit of operations• Complementary audits of operations

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System audits (ACR 2013)

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ACRYear

Type of audits Approach

2013

System audits- All Institutions involved in EU funds

administration- Key requirements and criteria with highest risks

Horizontal system audits- Equal Opportunities- Environmental requirements- Publicity

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Implementation of the system audit plan

Management and Control System Audits for the Period from 01.07.2012. to 30.06.2013.Annual Control Report 2013

System Audits

N° Responsible institution From To Location Fund Type of the Audit Comments (system audited; project ect) Status

1.  Audit Authority

17.09.2012. 30.12.2012. Latvia ERDF, CF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in Managing authority Done

01.02.2013.SIST-VI-12/25

1.  Audit Authority 01.10.2012. 15.12.2012. Latvia ERDF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Science and Education and State Education Development Agency

Done07.01.2013.

SIST-IZM/VIAA-12/27

1.  Audit Authority

01.11.2012. 15.02.2013. Latvia ERDF, CF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Certifying authority

Done18.02.2013.

SIST-SEI-12/30

1.  Audit Authority

01.12.2012. 15.02.2013. Latvia ERDF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Latvian Investment Development Agency

Done19.04.2013.

SIST-LIAA-12/31

1.  Audit Authority

02.01.2013. 28.02.2013. Latvia ERDF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Welfare and State Employment Agency

Done24.04.2013.

SIST-LM/NVA-13/1

1.  Audit Authority

02.01.2013. 28.02.2013. Latvia ERDF, CF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the State Regional Development Agency

Done02.08.2013.

SIST-VRAA-13/3

1.  Audit Authority

02.01.2013. 28.02.2013. Latvia ERDF, CF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Central Financing and Contracting Agency

Done23.04.2013.

SIST-CFLA-13/2

1.  Audit Authority 01.02.2013. 31.03.2013. Latvia ERDF, CF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Transport

Done01.08.2013.

SIST-SM-13/7

1.  Audit Authority

15.02.2013. 30.04.2013. Latvia ERDF, CF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Environmental Protection and Regional Development

Contradictory procedureSIST-VARAM-13/11

1.  Audit Authority

01.03.2013. 30.04.2013. Latvia ERDF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Culture

Contradictory procedureSIST-KM-13/14

1.  Audit Authority

01.04.2013. 31.05.2013. Latvia ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the State Chancellery and Society Integration Foundation

Done10.09.2013.

SIST-VKanc/SIF-13/10

1.  Audit Authority

01.05.2013. 30.05.2013. Latvia ERDF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Health

Done25.06.2013.

SIST-VM-13/8

1.  Audit Authority

01.05.2013. 30.06.2013. Latvia ERDF, ESF System auditEU structural funds and the Cohesion Fund management and control system audit in the Ministry of Economics

Audit is in processSIST-EM-13/19

Horizontal system audits

1.  Audit Authority 01.10.2012. 15.02.2012. Latvia ERDF, CF, ESF Horizontal system auditHorizontal system audit regarding Environmental requirements Done

24.05.2013.VIDE-AI/SAI/VI-12/26

1.  Audit Authority 01.10.2012. 31.01.2012. Latvia ERDF, CF, ESF Horizontal system auditHorizontal system audit regarding Equal Opportunities Done

28.05.2013.VIENL-VI/AI/SAI-12/28

1.  Audit Authority

01.03.2013. 30.04.2013. Latvia ERDF, CF, ESF Horizontal system audit Horizontal system audit regarding Publicity and CommunicationDone

15.08.2013.PUBL-VI/AI/SI-13/9

Audits of Operations (ACR 2013)

1. ESF, ERAF, KFAudit of Operations (expenditures declared during the year 2012)

Contradictory procedurePDR-13/4

2. ESF, ERAF, KF

Complementary Audit of Operations (due to risky areas identified, follow-up of advance payments, individually significant units)

Audit in processPDR-13/18

3. ESF, ERAF, KFAudit of technical assistance project No VSID/TP/CFLA/08/10/013

Audit in process

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Sample of audit of operations (expenditures declared during the year 2012)

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Population size (Expenditure declared

during year 2012)Selected sample Exact verified expenditures

units LVL units LVL % units LVL %

5 314 580 886 618,37 76 80 141 919,75 13,80 76 75 271 699,15 12,96

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Results of audit of operations (expenditures declared during the year 2012)

Certified expenditures

(LVL)

Sample (units)

Audited expenditure

(LVL)

Irregular expenditure found

within sample*

Error within

sample*

Expenditures declared during the year 2012

580 886 618,37 5 314 75 271 699,15 487 336,06 0,65%

*Results are under contradictory procedure/ Audit for TA is in process

Main areas/fields of errors:•Procurement – 45%

•Supervision of project implementation – 30%

•Eligibility of expenditures – 13%

Complementary audits of operations

• Due to risky areas identified 9 projects (15 payment claims) selected – risky areas from regular audit

of operations and system audits («health» projects, municipalities)

• Follow-up of advance payments 7 advance payments – follow-up of administration of advances that had been

selected within previous regular audits of operations

• Individually significant units21 projects (for 9 projects full scope audit, for other only risky areas

covered) that are considered as high risk projects

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Thank you for your attention!

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Nata Lasmane, Head of Audit Authority, Director of EU Funds Audit Department

Phone +371 67095669, Nata.Lasmane@fm.gov.lv