During this workshop you will learn about differences between errors, irregularities and fraud, about common types of irregularities, about irregularities resulted from public procurement and state aid, about simplified cost options and irregularities, and how to proceed with irregularities and financial corrections. The second day will be devoted to antifraud cycle and detecting and combatting of fraud in management of ESI Funds.Share
The correct handling of irregularities and fraud within ESI Funds is still a very difficult issue for all involved bodies. The number of irregularities and fraud cases reported to the European Commission remains high, therefore member states need to continue their efforts to minimize the rate of irregularities and to prevent and combat fraud on project and programme level. As a consequence, this topic remains high on agenda for national authorities managing ESI Funds.
Managing authorities and intermediate bodies have to put in place effective and proportional risk management measures. Certifying Authorities are obliged to certify completeness, accuracy and veracity of accounts and that expenditure entered in accounts complies with applicable law. Audit authorities have to ensure that internationally accepted audit standards are applied, and have to conduct annual control report and annual opinion, presenting findings and corrective measures.
Irregularities and fraud on project or programme level can bring to withdrawals, repayments and financial corrections. If lead partner does not succeed in securing repayment of any amount unduly paid as result of an irregularity or fraud, the member state on whose territory the beneficiary causing the error is located is obliged to reimburse the amount. Therefore it is crucial for national authorities to implement all measures, aimed to prevent, detect and combat irregularities and fraud at any stage of management of ESI Funds.
The two-day intensive workshop focuses on the following topics:
- Difference in definitions between error, irregularity and fraud
- Role of managing, certifying, audit authority and intermediate body in matters of irregularities and fraud
- Most common types of irregularities
- Public Procurement as the biggest source for irregularities and fraud
- Most common procurement errors
- Management verifications as measure to prevent irregularities
- How to proceed in case of irregularities and financial corrections?
- Irregularities resulted from state aid
- Simplified cost options and irregularities
- How to avoid irregularities
- Fraud and corruption in the procurement cycle
- How to conduct fraud risk assessment and risk analysis
- The Anti-fraud cycle: Prevention of fraud & corruption
- How to detect and combat fraud
Who should participate?
- Representatives from public authorities in charge of management and control of ESI Funds, especially from:
- Managing Authorities
- Certifying Authorities
- Audit Authorities
- Intermediate Bodies
- ESI Funds experts from regional and local authorities and experts involved in ETC Programme
- Auditors controlling and auditing ESI Funds programmes and projects
- Experts from EU, National and regional Court of Audit
- Experts from Institutions involved in implementation of ESI funds
- Consultants and lawyers specialized on ESI Funds
- Beneficiaries of EU funded projects
Workshop Material – No need to miss anything!
If you are unable to make it to the workshop you may want to order a copy of the printed material including the access data to all presentations shown during the events. The price is € 199,- (each, excl. of VAT).
If interested, please contact Anya Zuschke.
Day 1: Thursday, 5 December | Errors, Irregularities and Financial Corrections in ESI Funds | 08:45 - 18:00
Registration and Welcome Coffee
Welcome note by Lexxion and Chair, Introduction Round
Most Common Irregularities in ESI Funds
- Definition of an irregularity
- Difference between error, irregularity and fraud
- Overview on most common types of irregularities
- Irregularities in public procurement
- State aid as new source of irregularities?
- Simplified cost options and irregularities
- Role of programme bodies with regard to irregularities
- How to avoid irregularities?
Common Procurement Errors
- The EU Public Procurement Regime
- Requirements for ESIF Programmes
- Regulatory requirements and the application of public procurement to ESIF Programmes
- Types of breaches and irregularities
- Key areas of risk
- In which areas irregularities occur and why?
Case Study: Typical Errors and Irregularities in Procurement Cycle
- Pre-tendering phase
- Tendering phase
- Post-award/contracting phase
Management Verifications – Measure to Find Errors before they Become Irregularities
Treatment of Irregularities, Reporting and Financial Corrections
- Criteria indicative of fault or negligence by MS
- When do irregularities lead to recoveries, withdrawals, and financial corrections?
- Purpose and types of financial corrections
- Pre‐ and post‐payments
- What accounting records have to be kept?
- How to treat financial corrections in annual accounts
- New rules on treatment and reporting of irrecoverable amounts
- Recoveries and withdrawal workflow
Case Study: How to Detect and Handle Irregularities
Participants will apply theoretical knowledge to real-life cases in small working groups
Working Group Exercise
How to Choose the Right Type of Financial Correction and How to Calculate the Rate of Corrections
- Identification of errors and ineligible expenditure
- How to calculate a correction
- Financial corrections regarding the performance framework and system deficiencies
Participants will work in groups on a life-based case study on how to conduct financial corrections.
Final Discussion and Q&A
End of Day 1
Day 2: Friday, 6 December | Preventing, Detecting and Combating Fraud and Corruption in ESI Funds | 08:00 - 16:30
Preventing, Detecting and Combating Fraud and Corruption in ESI Funds –
Interactive Serious Game with Practical Cases, Exercises and Group Work
(including coffee breaks and lunch)
Anti-Fraud Game of Jo Kremers was introduced during the Workshop on Good Practices in preventing Fraud and Corruption in ESI Funds, organized by the European Commission on 13th of September 2018 in Brussels.
Fraud and Corruption
- An “Alert on Fraud and Corruption” (BP)
- Identifying risks
- Risk areas (public procurement, HR, tax)
Use of Innovative Sources and Innovative Instruments for Detection of Fraud, such as
- EU databases
- Analytical review and data analytics
- Official certification marks
- Frameworks set up by accredited renowned institutions
- Internal audit in an effective way
- Self-assessments and SATooling
and many other instruments
Conducting Fraud Risk Assessment and Risk Analysis
- Threats inside and outside the organization
- Identifying risks
- Risks of corruption, bribery, manipulation, non-integrity
- How to control those risks?
- Analysing the risks – identifying the risk causes
- Which methods and procedures can be implemented for prevention?
- How to apply risk rating in the control activities?
- How to design, implement and incorporate a culture of integrity effective anti-fraud policies, deterrence techniques and vigilance systems
- IT tool (ARACHNE)
The Anti-fraud Cycle: Implementing Effective and Proportionate Anti-fraud Measures
- Preventive, detective, corrective ones
- The most important fraud symbols
- How to make use of them to recognize cases of fraud and corruption
Prevention of Fraud & Corruption
- The most important instruments, methods, standards,(New) techniques and sources
- What are red flags and signals for fraud
- Which methods and procedures can be implemented for detection and correction?
- Fraud hotlines and helpdesks: critical success factors, financing of hotlines, successful cases
End of the Workshop
Reduced fee for public authorities: € 1.240,- (excl. VAT)
Regular fee: € 1.640,- (excl. VAT)
The Austrian VAT of 20% will be added.
The number of seats is limited. Registrations will be accepted first come, first served.