CERTIFICATION OF ACCOUNTS AND CLEARANCE

1
CERTIFICATION OF ACCOUNTS AND CLEARANCE

• Mark Tompkins
• UK Co-ordinating Body

2
WHAT IS CLEARANCE?

• Decisions by the Commission
• accept accounts
• exclude from financing.
• Follows
• audit of compliance with rules or
• audit of annual accounts (certification).

3
COMPLIANCE (AD HOC) VS. FINANCIAL (CERTIFICATION)
CLEARANCE

• AD HOC
• Compliance audit of scheme operations
• Compliance audit by Commission
• Lengthy process
• audit 1 week
• clearance 1 year (min.)
• Safeguards in process
• 2() Decisions p.a.

• FINANCIAL
• Audit of paying agencies annual accounts
• Audit by Certifying Body
• Certifying Body appointed by Competent Authority
• Short process
• audit 10 months
• clearance 2 months
• No safeguards
• One Decision p.a.

4
CERTIFYING BODY

• Certifies FEOGA accounts
• Tables 104 to 108 stock accounts
• Table of differences
• Reports on compliance with accreditation criteria
• Reports that EC financial interests protected
• Identifies major/intermediate/minor weaknesses
• Makes recommendations

5
UK CERTIFYING BODY

• Currently NAO (including contract with Audit
  Scotland and NAONI)
• NAO under contract to UK Co-ordinating Body as
  Secretariat to Competent Authority
• Competitive tender process every 3 years
• Current contract covers 2002 to 2004
• Undertakes work alongside Exchequer role
• Takes instructions from Co-ordinating Body

6
CERTIFICATION TIMETABLE

• NAO Audit Planning Strategy - for UK - April
• Client Liaison Memorandum - for each p.a.- April
• Contractual dates
• Interim management letter - 31 July
• Final management letter - 15 December
• CAG signing of accounts - 31 January
• Deliverables to Certifying Body
• In year electronic transaction data
• Monthly Tables 104 etc
• Annual FEOGA accounts

7
CERTIFICATION TIMETABLE

• Standard Timetables
• Importance of period October to January
• Paying Agency meetings with NAO
• Wash ups
• Regular liaison meetings
• Co-ordinating Body liaison meetings with NAO(HQ)

8
FINANCIAL CLEARANCE PROCESS

• Co-Body send certified accounts to Commission by
  10 Feb.
• Commission read audit reports (Feb/Mar)
• Commission may visit or ask for more info. (Mar)
• UK responds to Commission (Mar)
• Commission proposes Clearance of p.a.s accounts
  (Mar/April)
• Commission issue Summary Report (April)
• FEOGA Committee consulted (late April)
• Commission Decision on Clearance (end April)

9
CERTIFYING BODY REPORT

• Findings and Recommendations
• major
• intermediate
• minor
• Follow up last years recommendations
• Meeting accreditation criteria
• Response and timetable for action
• Realistic
• Achievable

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CO-ORDINATING BODY ACTION

• Major - report to Competent Authority (art 4.7)
• Intermediate/minor - monitor via
• Steering Group
• AFWG
• Consequences of failure to implement
  recommendations
• Downgrading/removal of accreditation status
• Disallowance