Commission Implementing Regulation (EU) No 447/2014Dangos y teitl llawn

TITLE II U.K. INDIRECT MANAGEMENT BY IPA II BENEFICIARIES

CHAPTER I U.K. Management and control systems

Article 7 U.K. Structures and authorities

1. The IPA II beneficiary shall establish the following structures and authorities needed for the management, control, supervision, monitoring, evaluation, reporting and internal audit of IPA II assistance:

(a) the National IPA Coordinator (NIPAC);

(b) the National Authorising Officer (NAO);

(c) the Operating Structures.

2. The NAO shall establish a management structure composed of a National Fund and a support office for the NAO.

3. The IPA II beneficiary shall provide for an audit authority.

4. The IPA II beneficiary shall ensure adequate segregation of duties between and within the structures and authorities referred to in paragraphs 1 to 3.

Article 8 U.K. Functions and responsibilities of the National IPA Coordinator

In addition to the functions provided for in Article 4(2), the NIPAC shall take measures to ensure that the objectives set out in the actions or programmes for which budget implementation tasks have been entrusted are appropriately addressed during the implementation of IPA II assistance.

Article 9 U.K. Functions and responsibilities of the National Authorising Officer

1. The NAO shall bear the overall responsibility for the financial management of IPA II assistance in the IPA II beneficiary and for ensuring the legality and regularity of expenditure.

2. The NAO shall be a high-ranking representative of the government or the national administration of the IPA II beneficiary with the appropriate authority.

3. The NAO shall, in particular, be responsible for:

(a) the management of IPA II accounts and financial operations;

(b) the effective functioning of the internal control systems for the implementation of IPA II assistance;

(c) putting into place effective and proportionate anti-fraud measures taking into account the risks identified;

(d) launching the process provided for in Article 14.

4. The NAO shall follow up the reports of the audit authority referred to in Article 12 and shall provide an annual management declaration to the Commission. The annual management declaration shall be drawn up per programme, in the form specified in the Framework Agreement, based on actual supervision by the NAO of the internal control systems throughout the financial year.

At the end of the implementation of a programme, the NAO shall provide a final statement of expenditure.

Article 10 U.K. Functions and responsibilities of the operating structures

1. Operating structure(s) shall be established by the IPA II beneficiary to implement and manage the IPA II assistance.

2. The operating structure shall be responsible for the implementation, information and visibility, monitoring and reporting of programmes, and the evaluation thereof whenever relevant, in accordance with the principle of sound financial management, and for ensuring the legality and regularity of the expenditure incurred in the implementation of the programmes under its responsibility.

Article 11 U.K. Functions and responsibilities of the management structure

1. The National Fund shall be located in a national level ministry of the IPA II beneficiary with central budgetary competence. It shall support the NAO in fulfilling his/her tasks in particular those referred to in point (a) of Article 9(3).

2. The NAO support office shall assist the NAO in fulfilling his/her tasks in particular those referred to in point (b) of Article 9(3).

Article 12 U.K. Functions and responsibilities of the audit authority

1. In accordance with point (c) of the first subparagraph of Article 60(2) of Regulation (EU, Euratom) No 966/2012, the structures and authorities referred to in Article 7(1) established by the IPA II beneficiary and the management structure referred to in Article 7(2) established by the NAO shall be subject to an independent external audit performed by the audit authority referred to in Article 7(3) which shall be independent from the aforementioned structures and authorities. The IPA II beneficiary shall ensure that the Head of the audit authority possesses adequate competence, knowledge and experience in the field of audit.

2. The audit authority shall carry out audits on the management and control system(s), on actions, transactions and on the annual accounts in line with internationally accepted auditing standards and in accordance with an audit strategy prepared on a tri-annual basis. The audit strategy shall be updated annually.

3. The audit authority shall prepare an annual audit activity report and an annual audit opinion drawn up in accordance with internationally accepted auditing standards.

4. At the end of the implementation of a programme, the audit authority shall prepare a final audit activity report and provide an audit opinion on the final statement of expenditure.

CHAPTER II U.K. Specific provisions relating to entrusting budget implementation tasks

Article 13 U.K. Conditions for entrusting an IPA II beneficiary with budget implementation tasks

1. The Commission entrusts budget implementation tasks to an IPA II beneficiary by concluding a financing agreement in accordance with the provisions of Articles 60(1) and (2), 61 and point (b) of Article 184(2) of Regulation (EU, Euratom) No 966/2012.

2. The IPA II beneficiary shall guarantee a level of protection of the financial interests of the Union equivalent to that required under Regulation (EU, Euratom) No 966/2012 and Delegated Regulation (EU) No 1268/2012 and shall set up the necessary structures ensuring the effective functioning of internal control systems.

3. The management, control, supervision and audit systems set up in the IPA II beneficiary shall provide for an effective internal control system which includes at least the following five areas:

(a) control environment;

(b) risk management;

(c) control activities;

(d) information and communication;

(e) monitoring activities.

Article 14 U.K. Entrusting budget implementation tasks

1. The NAO, on behalf of the IPA II beneficiary, shall be responsible for submitting to the Commission a request for being entrusted with budget implementation tasks in accordance with Article 13.

2. Before submitting the request referred to in paragraph 1, the NAO shall ensure that the management structure and relevant operating structure(s) satisfy the requirements in points (a), (b) and (d) of the first subparagraph of Article 60(2) of Regulation (EU, Euratom) No 966/2012 and those of Article 13(3) of this Regulation.

3. Before the Commission entrusts budget implementation tasks of IPA II assistance, it shall review the request referred to in paragraph 1 and the established structures and authorities referred to in Article 7 and shall, for the purposes of the ex ante assessment pursuant to Article 61(1) of Regulation (EU, Euratom) No 966/2012, obtain evidence that the requirements set out in points (a) to (d) of the first subparagraph of Article 60(2) of Regulation (EU, Euratom) No 966/2012 and those of Article 13(3) of this Regulation are fulfilled.

For entrusting budget implementation tasks of IPA II assistance, the Commission may rely on an ex ante assessment carried out with regard to an earlier financing agreement with the IPA II beneficiary or an ex ante assessment carried out with regard to the conferral of management powers decided under Council Regulation (EC) No 1085/2006(1). The Commission shall request additional evidence if those assessments do not address all the requirements.

4. The NAO shall monitor the continued fulfilment by the management structure and operating structure(s) of the requirements referred to in paragraph 2. In case of failure to satisfy these requirements, the NAO shall inform the Commission without delay, and take any appropriate safeguard measures regarding payments made or contracts signed.

5. The Commission shall monitor the compliance with Article 60(2) and (3) of Regulation (EU, Euratom) No 966/2012 and may take appropriate remedial measures, including suspension or termination of parts of the financing agreement at any time if the requirements are no longer fulfilled.

(1)

Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an instrument for pre-accession assistance (IPA) (OJ L 210, 31.7.2006, p. 82.)