INHALT

Commission Decision of 17 April 2019 on establishing new terms of reference for the pillar assessment methodology to be used under Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council

COMMISSION DECISION
of 17 April 2019
on establishing new terms of reference for the pillar assessment methodology to be used under Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council
Sole Article
ANNEX
<LETTERHEAD OF THE CONTRACTING AUTHORITY>
TERMS OF REFERENCE FOR A PILLAR ASSESSMENT OF AN ENTITY REQUESTING TO BE ENTRUSTED WITH IMPLEMENTATION OF THE EU BUDGET UNDER INDIRECT MANAGEMENT
[NAME OF THE ENTITY]
INSTRUCTIONS FOR USING THESE ToR
1.
INTRODUCTION
Context
2.
OBJECTIVES
3.
STANDARDS AND GUIDANCE
4.
REQUIREMENTS FOR THE AUDITOR
4.1.
General principles
4.2.
Qualifications, experience and team composition
(5)
Qualifications and experience
Team composition
Category 1 — Audit partner
Category 2 — Audit manager
Category 3 — Senior auditor
Category 4 — Assistant auditor
Curricula vitae (CVs)
5.
SCOPE
5.1.
Location and period covered by the assessment
5.2.
Engagement context
Use of Annex 1 Engagement context — Key information for a pillar assessment
Use of Annex 2a Assessment questionnaire
5.3.
Nature, extent and timing of procedures and tests for each pillar
5.4.
Criteria and materiality
Level 1 (Financial Regulation)
Level 2 (Pillar key components)
Level 3 (Assessment questionnaire with blocks of questions)
5.5.
Limitations in the scope
6.
ASSESSMENT PROCEDURES
6.1.
Documentation and evidence
6.2.
Planning and fieldwork
Start of the assessment
Preparatory meeting with the entity
Procedures for assessment planning and fieldwork
6.3.
Reporting
Use of the pillar assessment model report in Annex 4
Language
Findings
Recommendations
Conclusions
Date of the assessment report
Procedures and timetable for submitting draft and final assessment reports
7.
OTHER MATTERS
7.1.
Information on practices for calculation and reporting of costs
7.2.
Follow-up
7.3.
Various matters
Annexes
Annex 1
Engagement context — Key information for a pillar assessment
PILLAR 1 — INTERNAL CONTROL
PILLAR 2 — ACCOUNTING
PILLAR 3 — INDEPENDENT EXTERNAL AUDIT
PILLAR 4 — GRANTS
PILLAR 5 — PROCUREMENT
PILLAR 6 — FINANCIAL INSTRUMENTS
(4)
PILLAR 7 — EXCLUSION FROM ACCESS TO FUNDING
PILLAR 8 — PUBLICATION OF INFORMATION ON RECIPIENTS
PILLAR 9 — PROTECTION OF PERSONAL DATA
Annex 2
ASSESSMENT QUESTIONNAIRE AND CRITERIA
Annex 2A
ASSESSMENT QUESTIONNAIRE
PURPOSE AND USE OF THIS DOCUMENT
Annex 3
ASSESSMENT PROCEDURES
3.1.
Assessment documentation and evidence
1)
Assessment documentation (working papers)
2)
Evidence
3)
Retention of assessment documentation (working papers) <The Contracting Authority can remove or adapt this part as it sees fit>
4)
Access to the entity’s records and documents
3.2.
Planning
1)
Preparatory meeting with the entity
2)
Planning activities, assessment plan and assessment work programmes
3.3.
Fieldwork
1)
Obtaining evidence on the design of systems, controls, procedures and rules
2)
Tests of systems, controls and procedures
3)
Sampling and other means of selecting items for testing
4)
Using the work of internal auditors
5)
Written representations
6)
Debriefing memorandum (‘aide mémoire’)
7)
Closing meeting
3.4.
Reporting
1)
Basic reporting requirements and language
2)
Date of the assessment report
3)
Procedure for the consultation and submission of the draft report
<
The contracting authority can adapt this part as it sees fit as the proposed text is based on Commission procedures.
Attention
: parts where the Commission is consulted/informed must be maintained
>
4)
Procedure for the consultation and submission of the final report
<
The contracting authority can adapt this part as it sees fit as the proposed text is based on Commission procedures.
Attention
: parts where the Commission is consulted/informed must be maintained
>
Annex 4
PILLAR ASSESSMENT REPORT
<AUDITOR'S LETTERHEAD>
[DRAFT, PRE-FINAL OR FINAL] REPORT
[date]
<
for the final report this is the date on which the final independent auditor's report is signed; for a draft or pre-final report this is the date on which these reports are sent for consultation
>
PILLAR ASSESSMENT
OF [NAME OF THE ENTITY]
INSTRUCTIONS FOR USING THIS MODEL REPORT
INDEPENDENT ASSURANCE REPORT
Pillar assessment
Respective responsibilities of the entity's management and the auditor
Scope of work for all pillars
PILLAR 1 — INTERNAL CONTROL SYSTEM
Conclusion
PILLAR 2 — ACCOUNTING SYSTEM
Conclusion
PILLAR 3 — INDEPENDENT EXTERNAL AUDIT
Conclusion
PILLAR 4 — GRANTS
Conclusion
PILLAR 5 — PROCUREMENT
Conclusion
PILLAR 6 — FINANCIAL INSTRUMENTS
(2)
Conclusion
PILLAR 7 — EXCLUSION FROM ACCESS TO FUNDING
Conclusion
PILLAR 8 — PUBLICATION OF INFORMATION ON RECIPIENTS
Conclusion
PILLAR 9 — PROTECTION OF PERSONAL DATA
Conclusion
Distribution and use
1.
EXECUTIVE SUMMARY
1.1.
Conclusions
1.2.
Roadmap
Roadmap
1.3.
Summary of findings and recommendations
Findings
Recommendations
2.
ENGAGEMENT CONTEXT
2.1.
Context
2.2.
Description of the entity subject to the assessment
2.3.
Criteria used for the assessment and materiality
Level 1 (Financial Regulation)
Level 2 (Pillar key components)
Level 3 (Assessment questionnaire with blocks of questions)
3.
INTERNAL CONTROL SYSTEM
3.1.
Description of the internal control system
3.2.
Summary of work performed and criteria used for the assessment
3.3.
Findings and recommendations
3.3.1.
Main findings and critical recommendations
3.3.2.
Other findings and recommendations
4.
ACCOUNTING SYSTEM
4.1.
Description of the accounting system
4.2.
Summary of work performed and criteria used for the assessment
4.3.
Findings and recommendations
5.
INDEPENDENT EXTERNAL AUDIT
6.
GRANTS
7.
PROCUREMENT
8.
FINANCIAL INSTRUMENTS
(6)
9.
EXCLUSION FROM ACCESS TO FUNDING
10.
PUBLICATION OF INFORMATION ON RECIPIENTS
11.
PROTECTION OF PERSONAL DATA
Annex 1
People contacted or involved in the assessment
Annex 2
Assessment questionnaire and criteria
Annex 3
Assessment Questionnaire