Beneficiary States in the key role – how to meet the expectations of the FMO and Donors? Elise Oukka, Head of Finance and Control, FMO 18.03.2014 Brussels Outline • Key principles • Responsibilities • Control mechanisms • FMO role • Experience from FMs 04-09 Key principles  Zero-tolerance towards the mismanagement of funds and corruption  Good governance; transparency, openness  Sound management of public money and the Regulation, chapters 11 & 12 (including the definition of an irregularity) Key responsibilities  Beneficiary States/operators of the directly contracted programmes shall make every effort possible to prevent, detect, and nullify the effect of any cases of irregularities  Sufficient control mechanisms in place  Reporting on irregularities; responsibility of the designated entities and operators of directly contracted programmes Control mechanism Prevention  Guidance, training to be provided by the Beneficiary States (e.g. public procurement)  Financial control of payment claims  Monitoring of implementation  Very important to detect any systematic problems (errors that are reoccurring) Control mechanism Identification  Irregularities mainly detected through audits and controls  Audits in different levels and by different entities  Complain mechanism, confidentiality to be ensured Control mechanism Sanctions  Unduly paid amounts shall be recovered and reimbursed in accordance with the programme agreements and the Regulation Role of the FMO  To work closely with the Beneficiary States to pursue the zero-tolerance approach to corruption and mismanagement  To organise monitoring and auditing of the implementation based on the risk assessment To assess the reported information and prepare the recommendations to the Donors Experience from the FMs 04-09 Status end December 2013 1196 projects funded 156 cases with errors 225 cases registered 206 cases closed Seven cases with fraud Most number of irregularities relate to the public procurement THANK YOU FOR YOUR ATTENTION! www.eeagrants.org www.norwaygrants.org