STRUCTURAL, COHESION AND FISHERIES FUNDS’ AUDITS UNIT

Malta Structural and Cohesion Funds 2004-2006

The Internal Audit and Investigations Department (IAID) is the audit body with respect to:

• the Cohesion Fund;
• the four types of Structural Funds included in Malta’s Single Programming  Document 2004-2006, that is:
  •  
    • the European Regional Development Fund (ERDF);
    • the European Social Fund (ESF);
    • the Guidance Section of the European Agricultural Guidance and Guarantee Fund (EAGGF); and
    • the Financial Instrument for Fisheries Guidance (FIFG).
• the Equal Community Initiative Programme 2004-2006 co-funded from the European Social Fund (ESF).

In accordance to Commission Regulation (EC) No 1386/2002 for the Cohesion Fund and Commission Regulation (EC) No 438/2001 for the Structural Funds, the IAID is responsible for:

• the carrying out of system audits to verify the effective functioning of the management and control systems;
• the carrying out of sample checks on operations co-funded from the Structural Funds and the Cohesion Fund;
• the submission to the European Commission of annual control reports incorporating the results of the audit work carried out during the previous calendar year and providing any necessary updates to the descriptions of the management and control systems;
• holding annual bilateral co-ordination meetings with the European Commission to exchange audit plans and the results of audits carried out; and
• the issue of winding-up declarations assessing the validity of the applications for payment of the final balances. 

Malta Structural, Cohesion and Fisheries Funds 2007-2013

Council Regulations (EC) No 1083/2006 and 1198/2006 set out the detailed audit functions of the Audit Authority (IAID) for the programming period 2007-2013. The new regulations give more importance to the Audit Authority when compared to the previous programming period 2004-2006 and stipulate additional responsibilities. The IAID has to fulfil such responsibilities with respect to:  

• Malta’s Operational Programme I Cohesion Policy 2007-2013 “Investing in Competitiveness for a Better Quality of Life” co-funded from the European Regional Development Fund (ERDF) and the Cohesion Fund; and
• Malta’s Operational Programme II “Empowering People for More Jobs and a Better Quality of Life” co-funded from the European Social Fund (ESF).
• Malta’s Fisheries Operational Programme co-funded from the European Fisheries Fund (EFF).

The functions of the Audit Authority as per Council Regulations (EC) No 1083/2006 and 1198/2006 are as follows:

• presenting to the Commission an audit strategy for the whole programming period (where applicable);
• ensuring that system audits are carried out to verify the effective functioning of the management and control systems;
• ensuring that audits on operations are carried out on the basis of an appropriate sample to verify expenditure declared;
• submitting to the Commission annual control reports and opinions on the basis of audits carried out during the previous 12 months;
• holding annual bilateral co-ordination meetings with the European Commission to exchange audit plans and the results of audits carried out; and
• submitting to the Commission closure declarations assessing the validity of the applications for payment of the final balances which shall be supported by final control reports.

The IAID was also appointed as the Compliance Assessment Body with respect to the 2007-2013 Operational Programmes and was responsible to assess whether the descriptions of the management and control systems in place are compliant with the regulations. 

2004-2006 Interreg III Community Initiative Programmes and 2007-2013 Territorial Cooperation Programmes co-funded by the European Regional Development Fund (ERDF)

The IAID is also responsible to perform second-level controls regarding Maltese Partners with regards to Italia-Malta Programmes for both programming periods 2004-2006 and 2007-2013.

IAID auditors are also members of numerous Financial Control Groups/Groups of Auditors of other interregional programmes which involve the participation of Malta and various other EU Member States, including:

• Interreg IIIB Archimed and Medocc Programmes (2004-2006);
• Interreg IIIC and IVC Programmes (2004-2006 and 2007-2013 respectively);
• European Spatial Planning Observation Network (ESPON) Programmes I and II (2004-2006 and 2007-2013 respectively);
• INTERACT Programmes I and II (2004-2006 and 2007-2013 respectively);
• URBACT Programmes I and II (2004-2006 and 2007-2013 respectively); and
• Med Programme (2007-2013).

The Financial Control Groups/Group of Auditors are composed of auditors representing all the EU Member States participating in such programmes and are responsible for the overall audit methodology of the Programmes as stated in the applicable EU Regulations.