European Alert Controls of EU-funded projects How to efficiently prepare for final control and completion of the settlement process of a project co–financed from the EU funds? All beneficiaries of EU funds should be prepared for different types of control carried out by authorities during the realization of the investment or the project durability period. Those include ad hoc or planned controls and final controls, which precede a payment of last grant installment and a final approval of the project completion. Every beneficiary can expect at least one control during the implementation of co-financed projects. Due to the fact that the period of project realization and the eligibility of expenditures within the Financial Perspective 2007 – 2013 will come to the end in 2015, the increase of obligatory audits and controls of projects co-funded from the EU funds can be observed. Operational program controls are conducted by the Managing Authority (the Ministry of Infrastructure and Development for central programs, the marshal offices for regional programs), which delegates its powers to the Intermediate and Implementing Authorities and Regional Financing Institutions. Controls of the project can be carried out also by: Controlling institutions • European Commission (EC) • European Court of Auditors (ECA) • Tax Control Office • Supreme Audit Office • Regional Clearing Chamber In some programs external audit is mandatory (conducted by an independent auditor with appropriate qualifications). Controls are conducted to verify, among others: • Incurring of eligible expenditures, including compliance with European and national rules and the provisions of the funding agreement • Fulfillment of reporting obligations (particularly important in those projects, which are settled in a simplified way, i.e. the request for payment represents only a summary of the expenditure incurred, without supporting financial documents) • Results of implementation of the subject of the investment - whether the expenditures declared have actually been incurred, construction works performed etc. • Fulfillment of other obligations of the financing agreement (e.g. information and promotion responsibilities, timely completion of the project, achievement of project’s objectives) Scope of the control © 2014 Deloitte Poland. Member of Deloitte Touche Tohmatsu Limited Possible consequences in case of infringements • Decision to reimburse a part of the funding, together with interest calculated as for tax arrears • Termination of the grant agreement by the financing institution and a reimbursement of the grant with interest • Imposition of financial corrections • Exclusion from the possibility of using UE funded aid programs for the period of 3 years • Criminal liability for false statements, submitting documentation that is counterfeit or certifying untrue, not communicating about a situation which could have an impact on stopping or limiting the amount of the provided support Our support About us R&D and Government Incentives team provides a comprehensive scope of services which help entrepreneurs to effectively prepare for the control and to reduce the risk of returning the grant: • Conducting an independent verification of the project and identification of weaknesses (implemented with respect to 100% of the documents or a specific sample) • Development of risk mitigation actions and assistance in their implementation • Assistance in the development of explanations for post-audit information and support in dealing with authorities • Analysis of procedures in the company for compliance with the requirements of public aid We are part of an international network of over 800 R&D and Government Incentives advisers in 50 countries around the world, which allows us to exchange the experiences, tools and methodologies. Experts currently working in R&D and Government Incentives Team participated in obtaining public funding of over PLN 6 billion. Contact Magdalena Burnat-Mikosz Partner R&D and Government Service, Line Leader for CE phone: +48 (22) 511 00 65 e-mail: mburnatmikosz@deloitteCE.com Michał Turczyk Director phone: +48 666 831 825 e-mail: mturczyk@deloitteCE.com Magdalena Jabłońska Senior Manager phone: +48 (22) 511 04 72 e-mail: mjablonska@deloitteCE.com Ewa Rutczyńska-Jamróz Senior Manager phone: +48 (22) 511 08 35 e-mail: erutczynska@deloitteCE.com Katarzyna Berbeć Manager phone: +48 (61) 882 42 23 e-mail: kberbec@deloitteCE.com Agata Kurcewicz Manager phone: +48 (22) 511 07 50 e-mail: akurcewicz@deloitteCE.com Jagoda Aleksandrowicz Manager phone: +48 (61) 882 42 12 e-mail: jaleksandrowicz@deloitteCE.com Monika Krześniak Manager phone: +48 (22) 511 04 10 e-mail: mkrzesniak@deloitteCE.com Krzysztof Senger Senior Manager phone: +48 (22) 348 37 63 e-mail: ksenger@deloitteCE.com Please visit our website: www.deloitte.com/pl/dotacjeiulgi, where you can find more information about the possibilities to co-finance investments from European funds and other support schemes. 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Deloitte experts are involved in creating the corporate social responsibility and take up initiatives in support of creating public trust and supporting local communities. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/pl/onas for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © 2014 Deloitte Poland. Member of Deloitte Touche Tohmatsu Limited