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09/03/2020   National Audit Office carried out compliance audit for EU Investments

European Union Investment Audit Department of the National Audit Office carried out annual compliance audit for expenditure declared to the European Commission.

The audit assessed the fifth reporting period (1 July 2018 – 30 June 2019) within 2014–2020 Operational Programme. In total EUR 945 million were declared to the European Commission during this reporting period. The audit assessed the eligibility of randomly selected expenditure for an amount of EUR 157 million and the functioning of the EU investment management and control system. More than EUR 8 million of ineligible expenditure were identified in the projects assessed.

The audit results show that the most frequent errors were related to public procurement, including also those where several irregularities of different nature were identified.

“As a result of the audit, we found systemic errors that occur in a number of projects or funded instruments. Besides other things, we issued a qualified audit opinion on this basis,” says Lina Talmontė, Chief Adviser to the European Union Investment Audit Department of the National Audit Office.

In addition to assessing the amount of ineligible expenditure in the projects audited, the National Audit Office has to estimate the potential error in all expenditure declared to the European Commission. As determined by these calculations, the expected error rate is 3.6 %. This figure also includes irregularities highlighted by the EC related to the limited possibility of subcontracting (without these irregularities the expected error rate would be 2.86 %).

During the audit, the authorities administering EU investments implemented 63% of the recommendations made and undertook other actions which reduced the residual error to 2% of error level tolerable by the EC.

The European Commission is exceptionally concerned with the eligibility of all expenditure declared, therefore in certain cases (e.g. systemic errors mentioned above) the auditees have taken additional corrective actions in projects other than those assessed during the audit.

 

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Last updated on 27 July 2020

National Audit Office of Lithuania

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