CO-OPERATION BETWEEN THE MINISTRY OF FINANCE AND THE

NATIONAL AUDIT OFFICE

Mr. Rimantas ŠadžiusMinister of Finance of the Republic of Lithuania

20 March 2008

Key Responsibilities

The National Audit Office of Lithuania (NAO)

External (performance and financial) audit on national and EU funds - including:

Winding-up Body (2004-2006) Audit Authority (2007-2013)

Annual reporting on budget execution

The Ministry of Finance Development of the management and control system of

EU funds Central guidance on budgeting, accounting, internal

auditing

Management and Control System for the Programming Period 2004–2006

MINISTRY OF FINANCE

MANAGING AUTHORITY

MINISTRY OF FINANCE

Paying Authority for ERDF, ESF,

EAGGF and FIFG

MINISTRYOF

EDUCATION&

SCIENCE

MINISTRY

OF ENVIRO

N-MENT

MINISTRY OF

TRANSPORT

MINISTRYOF

ECONOMY

TRANSPORTINVESTMENTDIRECTORATE

ENVIRONMENTAL PROJECTS

IMPLEMENTING AGENCY

MANAGING AND PAYINGAUTHORI-TIES

INTER-MEDIARYINSTITU-TIONS

IMPLEMEN-TINGAGENCIES

. LITHUANIAN BUSINESS SUPPORT AGENCY

CENTRAL PROJECT

MANAGEMENT AGENCY

MINISTRY OF SOCIALSECURITY& LABOUR

MINISTRY OF

AGRICULTURE

NATIONAL PAYINGAGENCY

ESF AGENCY

MINISTRY

OF HEALTH-

CARE

ISDC

MINSTRY OF FINANCE

ARTICLE 10 CHECKS COORDINATING BODY

In 2007 Internal Audit Units of the line ministries performed:

6 system audits of the Structural Funds (ERDF, ESF, FIFG, EAGGF),

156 (5-15 %) sample checks (checked 43.27 MEUR of expenditures declared to the EC):

144 Structural Funds (ERDF, ESF, FIFG, EAGGF) sample checks and checked 16.87 MEUR of expenditures declared to the EC;

12 Cohesion Fund sample checks and checked 26.40 MEUR of expenditures declared to the EC.

Statistical Data – Sample Checks of EU Funds

Audit System’s Alternatives for 2007-2013

New EU requirement according to the EU regulation No 1083/2006: to establish an Audit Authority

3 options considered: Ministry of Finance; New separate organisation; National Audit Office.

Decision of the Parliament on October 11, 2007 regarding the National Audit Office

Ministries

Monitoring Committee of Operational programms(consist of officials from institutions that administrate assistance and social economic partners)

Managing Committees of Operational programms(consist of officials from institutions that administrate assistance)

Government of the Republic of Lithuania

Project promoters

Audit Authority

Valstybės kontrolė

Ministry of Finance

Managing Authority

Certifying Authority

Implementation Authorities (Agencies)

European Commision

Aplinkos ministerija

Socialinės apsaugos ir darbo ministerija

Susisiekimo ministerija

Sveikatos apsaugos ministerija

Švietimo ir mokslo ministerija

Ūkio ministerija

Vidaus reikalų ministerija

Informacinės visuomenės plėtros komitetas prie LRV

Veiksmų programų valdymo

departamentas

Nacionalinio fondo

departamentas

Centrinėprojektųvaldymo agentūra

Lietuvosverslo

paramosagentūra

Paramos fondoEuropossocialinio

fondoagentūra

Aplinkosprojektųvaldymoagentūra

Transportoinvesticijųdirekcija

Councils of Regional development

Coordinating AuthorityES sanglaudos politikos ir struktūrinės paramos koordinavimo departamentas

PayingAuthority

ValstybėsIždo

departamentas

UAB “INVEGA”

Administration System for the Programming

Period 2007–2013

Co-operation between the NAO and the MoF

sharing information on internal control, EU funding, on the results of sample checks (5-15 % checks), system audits and closure audits (winding-up audits)

using each other’s work (in order to reduce the scope of the audit work) and eliminating the overlaps in audit work – under mutual confidence and respect

agreed methods for sharing of audit findings discussing training format on the EU issues participation in meetings, help-desk discussions on

the various questions regarding EU funds’ audits