Procedures by which an Independent Examination of the Final Statement of Expenditure of a Cohesion Fund Project is Planned and Performed and Procedures by which a Winding-up Declaration is Prepared

Issued pursuant to
Section 19 of
the Law On the Management of the
European Union Cohesion Fund Projects

1. These Regulations prescribe the procedures by which the unit of the Ministry of Finance, which is functionally independent from the managing authority, the paying authority and intermediate bodies (hereinafter - the independent body), shall plan and perform an independent examination of the final statement of expenditure of a Cohesion Fund project (hereinafter - a project) and shall prepare an winding-up declaration.

2. The managing authority shall once a year upon the request of the independent body submit the information to it regarding the planned periods of time for the next year, within which the final statements of expenditure of the projects are to be submitted to the managing authority, as well as once a quarter during the current year shall notify the independent body regarding the changes in the referred to periods of time.

3. The independent body shall develop the annual plan for the examinations of the final statements of expenditure of the projects for the next year, as well as, if necessary, amend the approved annual plan in accordance with the changes of the periods of time referred to in Paragraph 2 of these Regulations and shall send it to the managing authority, the paying authority and intermediary bodies.

4. The independent body shall take a decision regarding the carrying out of the examinations of the management and control system in the bodies involved in the management and supervision and shall include this decision in the approved annual plan.

5. Within 3 working days after the receipt of the original of the final statement of expenditure of the project and within 3 working days after the receipt of the final report of the project (which has been co-ordinated with the intermediary body) the managing authority shall submit them to the independent body and to the paying authority.

6. Within 3 working days after the receipt of the final statement of expenditure of the project and the final report of the project co-ordinated with the managing authority the independent body shall send to the intermediary body the approved working plan for the examination task of the final statement of expenditure of the project, where the following information shall be provided:

6.1. the objective of the examination and the scope;

6.2. the planned date of the initiation of the examination;

6.3. the planned date of the preparation of the draft report regarding the examinations performed and the report regarding the examinations performed; and

6.4. the planned time for carrying out the examination and the responsible officials.

7. After sending the plan referred to in Paragraph 6 of these Regulations the independent body shall commence an independent examination during which:

7.1. it verifies the results of the examinations carried out previously and the implementation of the recommendations provided in accordance with them;

7.2. it verifies the legality and correctness of the transactions included in the final statement of expenditure of the project;

7.3. it examines the compliance of the information regarding the implementation of the project included in the final report of the project with the decision of the European Commission or with the financial memorandum and the objective of the project specified therein; and

7.4. it carries out the efficiency examinations of the management and control system.

8. If during the examinations carried out previously by the independent body or other institutions significant errors or irregulaities of a systematic nature of the management and control system were determined, the independent body shall carry out sample checks of the expenditure or additional examinations of the management and control system.

9. If an intermediary body has submitted the final statement of expenditure of the project and the final report of the project co-ordinated with the managing authority in accordance with the periods of time specified in the regulatory enactments regulating the area of the Cohesion Fund and the managing authority has notified the independent body in accordance with the procedures specified in Paragraph 2 of these Regulations, the independent body shall carry out an independent examination within 3 months after the receipt of the referred to documents.

10. The independent body shall send the draft report regarding the examinations carried out to the managing authority, to the paying authority and to the intermediary body for co-ordination not later than within 15 working days prior to the period of time for the submission of the final report of the project to the European Commission specified in Article F (4) of Annex II to Council Regulation (EC) No 1164/94 of 16 May 1994 establishing a Cohesion Fund. If an intermediary body fails to submit to the managing authority the final statement of expenditure of the project and the final report of the project co-ordinated with the managing authority without justification within 3 months after the final date of the project specified in the financial memorandum or in the decision of the European Commission, the independent body is entitled to refuse to provide an winding-up declaration.

11. If the managing authority, the paying authority or an intermediary body has any comments in respect of the draft report regarding the examinations carried out, the authorities shall submit them in writing to the independent body within 5 working days after the receipt of the draft report regarding the examinations carried out.

12. If the independent body has determined significant deficiencies in the management and control system, in the final statement of expenditure of the project or in the final report of the project, then the managing authority shall convene the working group, in which the representatives of the managing authority, the paying authority and intermediary body are included, within 3 working days after the receipt of the draft project form the independent body regarding the examinations carried out.

13. The working group shall evaluate the information included in the draft report regarding the examinations carried out and take a decision regarding the further action and the managing authority shall notify the independent body in writing thereof not later than 7 working days prior to the period of time for the submission of the final report of the project to the European Commission specified in Article F (4) of Annex II to Council Regulation (EC) No 1164/94 of 16 May 1994 establishing a Cohesion Fund.

14. The independent body shall evaluate the comments of the managing authority, the paying authority and the intermediary body received or the decision of the working group and, if necessary, shall clarify the draft report regarding the examinations carried out.

15. On the basis of the information referred to in the report regarding the examinations carried out, the independent body shall prepare the winding-up declaration in accordance with the indicative model of Annex III to Commission Regulation (EC) No 1386/2002 of 29 July 2002 laying down detailed rules for the implementation of Council Regulation (EC) No 1164/94 as regards the management and control systems for assistance granted from the Cohesion Fund and the procedure for making financial corrections

16. The independent body shall send to the paying authority a report regarding the examinations carried out and the winding-up declaration, but to the managing authority and to the intermediary body - a copy of the report regarding the examinations carried out and a copy of the winding-up declaration not later than 5 working days prior to the period of time for the submission of the final report of the project specified in Article F (4) of Annex II to Council Regulation (EC) No 1164/94 of 16 May 1994 establishing a Cohesion Fund.

17. The bodies involved in the management and supervision of the Cohesion Fund projects shall ensure the independent body with unlimited access to the registries of all types, accounting documentation and other information connected with the project and which is necessary for carrying out the examination of the final statement of expenditure of the project and the final report of the project.

Prime Minister A. Kalvītis

Minister for Finance O. Spurdziņš

Translation © 2007 Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre)