EN Official Journal of the European Union L 214/9

COMMISSION IMPLEMENTING REGULATION (EU) 2015/1386

of 12 August 2015

laying down detailed rules implementing Regulation (EU) No 223/2014 of the European Parliament and of the Council as regards the models for the management declaration, the audit strategy, the audit opinion and the annual control report

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived (1), and in particular Articles 32(10) and 34(6) thereof,

After consulting the Committee for the Fund for European Aid for the Most Deprived,

Whereas:

(1) Commission Implementing Regulation (EU) 2015/341 (2) lays down provisions necessary for the submission of certain information to the Commission. In order to ensure implementation of the programmes financed by the Fund for European Aid to the Most Deprived (the ‘FEAD’), it is necessary to lay down further provisions for the application of Regulation (EU) No 223/2014. To facilitate a comprehensive view and the access to those provisions, those provisions should be set out in one implementing act.

(2) To harmonise standards for the preparation and presentation of the management declaration for which a managing authority is responsible pursuant to point (e) of Article 32(4) of Regulation (EU) No 223/2014, it is necessary to set out uniform conditions for its content in the form of a standard model.

(3) To harmonise standards for the preparation and presentation of the audit strategy, the audit opinion and the annual control report for which an audit authority is responsible pursuant to Article 34(4) and the first subparagraph of Article 34(5) of Regulation (EU) No 223/2014, a model should be provided setting out uniform conditions for the structure, and specifying the nature and the quality of the information to be used in their preparation.

(4) In order to allow for the prompt application of the measures provided for in this Regulation, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

HAS ADOPTED THIS REGULATION:

Article 1

Model for the management declaration

The management declaration referred to in point (e) of Article 32(4) of Regulation (EU) No 223/2014 shall be submitted for each operational programme in accordance with the model set out in Annex I to this Regulation.

Article 2

Models for the audit strategy, the audit opinion and the annual control report

1. The audit strategy referred to in Article 34(4) of Regulation (EU) No 223/2014 shall be prepared in accordance with the model set out in Annex II to this Regulation.

2. The audit opinion referred to in point (a) of the first subparagraph of Article 34(5) of Regulation (EU) No 223/2014 shall be drawn up in accordance with the model set out in Annex III to this Regulation.

3. The annual control report referred to in point (b) of the first subparagraph of Article 34(5) of Regulation (EU) No 223/2014 shall be drawn up in accordance with the model set out in Annex IV to this Regulation.

Article 3

Entry into force

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 12 August 2015. For the Commission The President Jean-Claude JUNCKER

(1) OJ L 72, 12.3.2014, p. 1.

(2) Commission Implementing Regulation (EU) 2015/341 of 20 February 2015 laying down detailed rules for implementing Regulation (EU) No 223/2014 of the European Parliament and of the Council as regards the models for submission of certain information to the Commission (OJ L 60, 4.3.2015, p. 1).

ANNEX I Model for the management declaration I/We, the undersigned (name(s), first name(s), title(s) or function(s)), Head of the managing authority for the operational programme (name of the operational programme, CCI) based on the implementation of the (name of operational programme) during the accounting year ended 30 June (year), based on my/our own judgment and on all information available to me/us at the date of the accounts submitted to the Commission, including the results from administrative and on-the-spot verifications carried out in accordance with Article 32(5) of Regulation (EU) No 223/2014 and from audits and controls in relation to the expenditure included in the payment applications submitted to the Commission in respect of the accounting year ended 30 June … (year), and taking into account my/our obligations under Regulation (EU) No 223/2014 and in particular Article 32 thereof, hereby declare that: — the information in the accounts is properly presented, complete and accurate in accordance with Article 49(1) of Regulation (EU) No 223/2014, — the expenditure entered in the accounts was used for its intended purpose, as defined in Regulation (EU) No 223/2014, and in accordance with the principle of sound financial management, — the management and control system put in place for the operational programme gives the necessary guarantees concerning the legality and regularity of the underlying transactions, in conformity with the applicable law. I/We confirm that irregularities identified in final audit or control reports in relation to the accounting year and reported in the annual summary attached to this declaration as required under Article 32(4)(e) of Regulation (EU) No 223/2014, have been appropriately treated in the accounts. Where necessary, adequate follow-up was given to deficiencies in the management and control system reported in those reports or is on-going as regards the following required remedial actions: … (if appropriate indicate which remedial actions are still on-going, at the date of signing the declaration). I/We also confirm that expenditure which is subject to an ongoing assessment of its legality and regularity has been excluded from the accounts pending conclusion of the assessment, for possible inclusion in an interim payment application in a subsequent accounting year as provided for in Article 49(2) of Regulation (EU) No 223/2014. Furthermore, I/we confirm the reliability of data relating to indicators [, (for OP I only) including, where relevant, data based on informed estimations in accordance with Commission Delegated Regulation (EU) No 1255/2014 (1)]/[(for OP II only) and data relating to the progress of the operational programme, required under Article 32(2)(a) of Regulation (EU) No 223/2014]. I/we confirm that effective and proportionate anti-fraud measures under Article 32(4)(c) of Regulation (EU) No 223/2014 are in place and take account of the risks identified and that I/we am/are not aware of any undisclosed matter related to the implementation of the operational programme which could be damaging to the reputation of the Fund for European Aid to the Most Deprived. Date Signature(s) (1) Commission Delegated Regulation (EU) No 1255/2014 of 17 July 2014 supplementing Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived by laying down the content of the annual and final implementation reports, including the list of common indicators (OJ L 337, 25.11.2014, p. 46).

ANNEX II Model for the audit strategy 1. INTRODUCTION This section shall include the following information: — Identification of the operational programme(s) (title(s) and CCI (1)) and period covered by the audit strategy. — Identification of the audit authority responsible for drawing up, monitoring and updating the audit strategy and of any other bodies that have contributed to this document. — Reference to the status of the audit authority (national, regional or local public body) and the body in which it is located. — Reference to the mission statement, audit charter or national legislation (where applicable) setting out the functions and responsibilities of the audit authority and other bodies carrying out audits under its responsibility. — Confirmation by the audit authority that the bodies carrying out audits pursuant to Article 34(2) of Regulation (EU) No 223/2014 have the requisite functional independence (and organisational independence, where applicable under Article 31(5) of Regulation (EU) No 223/2014). 2. RISK ASSESSMENT This section shall include the following information: — Explanation of the risk assessment method followed. — Reference to internal procedures for updating the risk assessment. 3. METHODOLOGY This section shall include the following information: 3.1. Overview — Reference to audit manuals or procedures containing the description of the main steps of the audit work, including the classification and treatment of the errors detected. — Reference to the internationally accepted audit standards that the audit authority shall take into account for its audit work, as established by Article 34(3) of Regulation (EU) No 223/2014. — Reference to the procedures in place for drawing up the control report and audit opinion to be submitted to the Commission in accordance with Article 34(5) of Regulation (EU) No 223/2014. 3.2. Audits on the functioning of management and control systems (system audits) Indication of the bodies to be audited and the related key requirements in the context of system audits. Where applicable, reference to the audit body on which the audit authority relies to perform these audits. Indication of any system audits targeted to specific thematic areas, such as: — quality of the administrative and on-the-spot verifications referred to in Article 32(5) of Regulation (EU) No 223/2014, including in relation to the respect of public procurement rules, equal opportunities, reduction and prevention of food waste, and Union law on consumer product safety; — functioning and security of IT systems set up in accordance with Articles 28(d), 32(2)(d) and 33(d) of Regulation (EU) No 223/2014; and their connection with the IT system, referred to in Article 30(4) of Regulation (EU) No 223/2014 (‘SFC 2014’); — reliability of data relating to indicators and, for OP II, data relating to the progress of the operational programme in achieving its objectives provided by the managing authority under Article 32(2)(a) of Regulation (EU) No 223/2014; — reporting of withdrawals and recoveries; — implementation of effective and proportionate anti-fraud measures underpinned by a fraud risk assessment in line with Article 32(4)(c) of Regulation (EU) No 223/2014. 3.3. Audits of operations Description of (or reference to internal document specifying) the sampling methodology to be used in line with Article 34(1) Regulation (EU) No 223/2014 and Article 6 of Commission Delegated Regulation (EU) No 532/2014 (2) and other specific procedures in place for audits of operations, namely related with the classification and treatment of the errors detected, including suspected fraud. 3.4. Audits of the accounts Description of the audit approach for the audit of the accounts. 3.5. Verification of the management declaration Reference to the internal procedures setting out the work involved in the verification of the assertions contained in the management declaration, for the purpose of the audit opinion. 4. AUDIT WORK PLANNED This section shall include the following information: — Description and justification of the audit priorities and specific objectives in relation to the current accounting year and the two subsequent accounting years, together with an explanation of the linkage of the risk assessment results to the audit work planned. — An indicative schedule of audit assignments in relation to the current accounting year and the two subsequent accounting years for system audits (including audits targeted to specific thematic areas), as follows: Authorities/Bodies or specific thematic areas to be audited CCI OP Title Body responsible for auditing Result of risk assessment 20xx Audit objective and scope 20xx Audit objective and scope 20xx Audit objective and scope 5. RESOURCES This section shall include the following information: — Organisation chart of the audit authority and information on its relationship with any audit body that carries out audits as referred to in Article 34(2) of Regulation (EU) No 223/2014, where appropriate. — Indication of planned resources to be allocated in relation to the current accounting year and the two subsequent accounting years. (1) Indicate the operational programmes covered by a common management and control system, in case a single audit strategy is prepared for two operational programmes, as foreseen in Article 34(4) of Regulation (EU) No 223/2014. (2) Commission Delegated Regulation (EU) No 532/2014 of 13 March 2014 supplementing Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived (OJ L 148, 20.5.2014, p. 54).

ANNEX III Model for the audit opinion To the European Commission, Directorate-General … 1. INTRODUCTION I, the undersigned, representing the …[name of the audit authority designated by Member State], independent in the sense of Article 31(4) [and (5), where applicable] of Regulation (EU) No 223/2014, have audited the accounts for the accounting year started on 1 July … [year] and ended 30 June … [year] (1) and dated … [date of the accounts submitted to the Commission] (hereafter ‘the accounts’), the legality and regularity of the expenditure for which reimbursement has been requested from the Commission in reference to the accounting year (and included in the accounts), the functioning of the management and control system, and verified the management declaration, for the purposes of Article 59(5) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (2) in relation to the operational programme …[name of operational programme, CCI number] (hereafter ‘the programme’), in order to issue an audit opinion in accordance with Article 34(5)(a) of Regulation (EU) No 223/2014. 2. RESPONSIBILITIES OF THE MANAGING AND CERTIFYING AUTHORITIES …[name of the managing authority], designated as the managing authority of the programme, and the …[name of the certifying authority], designated as the certifying authority of the programme, are responsible for ensuring a proper functioning of the management and control system with regard to the functions established by the Articles 32 and 33 of Regulation (EU) No 223/2014. In particular, it is responsibility of the …[name of the certifying authority], designated as the certifying authority of the programme, to draw up the accounts (in accordance with Article 49 of Regulation (EU) No 223/2014) and certify their completeness, accuracy and veracity, as provided for in Article 33(b) and (c) of Regulation (EU) No 223/2014. Moreover, in accordance with Article 33(c) of Regulation (EU) No 223/2014 it is the responsibility of the certifying authority to certify that the expenditure entered in the accounts complies with applicable law and has been incurred in respect of operations selected for funding in accordance with the criteria applicable to the programme and complying with applicable law (3). 3. RESPONSIBILITIES OF THE AUDIT AUTHORITY As established by Article 34(5)(a) of Regulation (EU) No 223/2014, my responsibility is to independently express an opinion on whether the accounts give a true and fair view, whether expenditure for which reimbursement has been requested from the Commission and which are declared in the accounts is legal (4) and regular, and whether the management and control system put in place functions properly. My responsibility is also to include in the opinion a statement as to whether the audit work puts in doubt the assertions made in the management declaration (5). The audits in respect of the programme were carried out in accordance with the audit strategy and took account of internationally accepted audit standards. These standards require that the audit authority complies with ethical requirements, plans and performs the audit work in order to obtain reasonable assurance for the purpose of the audit opinion. An audit involves performing procedures to obtain sufficient appropriate evidence to support the opinion set out below. The procedures performed depend on the auditor's professional judgment, including assessing the risk of material non-compliance, whether due to fraud or error. The audit procedures performed are those I believe are appropriate in the circumstances. I believe that the audit evidence gathered is sufficient and appropriate to provide the basis for my opinion, [in case there are any scope limitation:] except those which are mentioned in section 4 ‘Scope limitation’. The main findings drawn from the audits in respect of the programme are reported in the attached annual control report pursuant to Article 34(5)(b) of Regulation (EU) No 223/2014. 4. SCOPE LIMITATION Either There were no limitations on the audit scope. Or The audit scope was limited by the following factors: (a) … (b) … (c) …. [Indicate any limitation on the audit scope, for example any lack of supporting documentation, cases under legal proceedings, and estimate under ‘Qualified opinion’ below, the amounts of expenditure and the Union contribution affected and the impact of the scope limitation on the audit opinion. Further explanations in this regard shall be provided in the annual control report, as appropriate.] 5. OPINION Either (Unqualified opinion) In my opinion, and based on the audit work performed: — the accounts give a true and fair view, as established by Article 7(5) of Delegated Regulation (EU) No 532/2014; — the expenditure in the accounts for which reimbursement has been requested from the Commission is legal and regular, — the management and control system put in place functions properly. The audit work carried out does not put in doubt the assertions made in the management declaration. Or (Qualified opinion) In my opinion, and based on the audit work performed: — the accounts give a true and fair view, as established by Article 7(5) of Delegated Regulation (EU) No 532/2014; — the expenditure in the accounts for which reimbursement has been requested from the Commission is legal and regular; — the management and control system put in place functions properly, except in the following aspects: — in relation to material matters related to the accounts: … and/or [delete as appropriate] — in relation to material matters related to the legality and regularity of the expenditure in the accounts for which reimbursement has been requested from the Commission: … — and/or [delete as appropriate] in relation to material matters related to the functioning of the management and control system (6): …. Therefore, I estimate that the impact of the qualification(s) is [limited]/[significant]. [delete as appropriate] This impact corresponds to … [amount in EUR and %] of the total expenditure declared. The Union contribution affected is thus … [amount in EUR]. The audit work carried out does not put/puts [delete as appropriate] in doubt the assertions made in the management declaration. [Where the audit work carried out puts in doubt the assertions made in the management declaration, the Audit Authority shall disclose in this section the aspects leading to this conclusion.] Or (Adverse opinion) In my opinion, and based on the audit work performed: — the accounts give/do not give [delete as appropriate] a true and fair view, as established by Article 7(5) of Delegated Regulation (EU) No 532/2014; — the expenditure in the accounts for which reimbursement has been requested from the Commission is/is not [delete as appropriate] legal and regular; — the management and control system put in place functions/does not function [delete as appropriate] properly. This adverse opinion is based on the following aspects: — in relation to material matters related to the accounts: … and/or [delete as appropriate] — in relation to material matters related to the legality and regularity of the expenditure in the accounts for which reimbursement has been requested from the Commission: … and/or [delete as appropriate] — in relation to material matters related to the functioning of the management and control system (7): … The audit work carried out puts in doubt the assertions made in the management declaration for the following aspects: … [The audit authority may also include emphasis of matter, not affecting its opinion, as established by internationally accepted auditing standards. A disclaimer of opinion may be foreseen in exceptional cases. (8)] Date Signature (1) Accounting year means the period from 1 July to 30 June, except for the first accounting year, in respect of which it means the period from the start date for eligibility of expenditure until 30 June 2015. The final accounting year shall be from 1 July 2023 to 30 June 2024. (2) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1). (3) As defined in Article 5(12) of Regulation (EU) No 223/2014. (4) As established by Article 5(12) of Regulation (EU) No 223/2014. (5) In line with Article 59(5) of Regulation (EU, Euratom) No 966/2012. (6) In case the management and control system is affected, the body or bodies and the aspect(s) of their systems that did not comply with requirements and/or did not operate effectively shall be indicated in the opinion, except where this information is already clearly disclosed in the annual control report and the opinion paragraph refers to the specific section(s) of this report where such information is disclosed. (7) Same remark as in previous footnote. (8) These exceptional cases should be related to unforeseeable, external factors outside the remit of the audit authority.