2006 COCOBU hearing
by Vice President Kallas
22 January 2008
2006 - the best DAS yet
45%
Above 42%
in 2006
40%
35%
30%
3 years
25%
20%
15%
10%
5%
Only 6%
in 2003
0%
2003
2004
2005
2006
Non-material errors in legality & regularity of all payments (excl. compensations)
2006 - the best DAS yet
100%
80%
60%
40%
20%
0%
2003
2004
<2%
2005
2-5%
>5%
2006
The Accounts
 Accrual accounting delivered on time
 Positive auditors’ opinion again in 2006
 Non-material errors of 0.13% of overall
expenditure
 Signed 2006 accounts delivered on time
The Synthesis Report 2006
”By adopting this Synthesis, the Commission
assumes its political responsibility for
management by its Directors-General and Heads of
Service, on the basis of the assurances and
reservations made by them in these Reports, while
acknowledging that further efforts are needed to
resolve a number of weaknesses.”
ECA AAR Scoreboard 2004-2006
Evidence given by the AAR for the Court’s audit conclusions
2004
2005
2006
Own Resources
A
A
A
CAP - IACS
C
C
C
B
C
C
B
C
C
B
C
B
B
B
A
B
B
A
A
A
A
CAP – non IACS
Structural Measures
Internal Policies
External Actions
Preaccession
Strategy
Administration
Progress on IICF Action Plan
ACTION
PROGESS
Audit Certificates
Audit procedures agreed with the
accounting profession
Sharing of Audit
Data
2,500 audits now registered in the
financial and accounting system
Risk & Representative
Sampling in Research
Revised sampling approach
FP7
Audits in Research
378 audits closed in 2007
(Target was 300)
INDICATOR
Recovery decisions in 2006: some € 2 Bn
Mio EUR
1000
900
108
800
700
- 947
?
- 807
214
600
Corrections
(total: 1.371)
61
Irregularities
(total: 426 + ?)
Withdrawn by MS
(total : 214)
deduction from the payments
(total : ?)
500
400
839
300
532
200
?
100
172
0
EAGGF
SF
External
?
85
Internal
Structural Funds: Typology of errors
As a percentage of
Types of errors
total errors
Non respect of rules
20%
Missing documents
Irregular public procurement
procedures
25%
Revenue not deducted
6%
Incorrect co-financing rate
16%
Overheads
5%
Total
100%
28%
Structural funds: 12% analysed
SF payments 2006
12% at risk according to ECA
32.4b€
3.89b€
Commission analysis of action on 2000-2006 programme
Cases already corrected/rectified by the Member States*
Corrections in 2006 from Commission audits
Corrections in 2007 from Commission audits
Financial correction decisions in progress
Corrections expected to be unsustainable in Courts*
*Projected from the cases in the Court’s sampling
0.330b€
0.502b€
0.359b€
2.330b€
0.556b€)
Structural funds action plans
Fund
Action Member
Plans States
covered
Programmes Amount
covered
covered
(Billion €)
Amount
covered
(% of total
funds
committed
2000-2006)
ERDF
10
8
80
51,8
40%
ESF
17
10
20
12,3
18%
27
13
without
overlap
100
64,1
32%
TOTAL
Annual Summary Declarations
“Based on the results of the above certification of expenditure and
audit summaries, it is my opinion that for the year ended 31
December 20.. the management and control systems for ______
structural measures established for the programming period 2000-06
and for 2007-13 complied with the applicable regulatory requirements
and functioned effectively so as to provide reasonable assurance that
statements of expenditure certified to the Commission are correct
and, as a consequence, reasonable assurance of the legality and
regularity of the underlying transactions.
OR
(add, if applicable)
except for the following: 1.…, 2…, etc
I can confirm that actions detailed below are underway to correct the
above exceptions. “
………………..
(SIGNED by)
Tolerable Risk
Policy Area
Cost of Control
(% of budget)
Structural
Operations
3.6%
Agriculture
4.2%
Research
4.1%
DAS Result
2006
IACS
Non-IACS
2006 - the best DAS yet
45%
40%
35%
Above 42%
in 2006
30%
3 years
25%
20%
15%
10%
5%
0%
2003
2004
2005
2006
Only 6%
in 2003
Non-material errors in legality & regularity of all payments
(excl. compensations)