Some quality issues have nonetheless been identified when the reported information was analysed. When comparing the number of fraud and irregularity cases for 2009-13 with the figures from previous reports, it appears that there is a time gap between when the cases are detected and when they are reported via the OWNRES application. Although Member States’ work to regularly update the information on cases of fraud and irregularities can only be welcomed, the timely reporting of fraud and irregularity cases should nevertheless be respected.

Member States should step up work to ensure timely reporting on and updating of fraud and irregularity cases. To ensure effective monitoring and follow-up, reliable information on fraud and irregularity cases should be entered in OWNRES.

As regards frauds & irregularities involving traditional own resource revenue, HMRC conducts regular checks (i.e. twice weekly) to identify post clearance demands involving €10k+ to be keyed to OWNRES. Monitoring of older cases is ongoing to ensure timely updates and closure where necessary. The task represents a large percentage of the administrative staff's overall work. Where information classed by OWNRES as mandatory has not been provided follow up inquiries are made to ensure full details are received from the case officer.

In accordance with Council Regulation 1150/2000, Swedish Customs reports irregularities and fraud on a quarterly basis. Swedish Customs is currently updating its procedures regarding the reporting on irregularities and fraud in OWNRES, in order to ensure a more efficient and correct reporting.

In 2014 notifications of fraud or irregularities registered by the Slovak Tax Administration in OWNRES were recorded in accordance with Article 2 of Council Regulation (EC, Euratom) No 1150/2000 implementing Decision 2007/436/EC, Euratom on the system of the European Communities' own resources.

In order to improve activities in the area of traditional own resources and the management of the OWNRES database, the agenda mentioned was placed within the organisational structure of the Slovak Finance Administration as of 1 July 2014, in the Tax and Customs Section. A team was set up, which cooperates closely with staff at regional level who are responsible for recording cases in the OWNRES application. To allow more rapid collection of information and subsequent entry of this information in OWNRES, staff at regional level are guaranteed access rights to the national ACIS application. In the coming days, training for the employees referred to above will be carried out.

Certifying Authority (CA) regularly monitors all audit reports, reports on the controls carried out on the spot and quarterly reports on irregularities. In the case of irregularities which have financial implications, CA issues a request for the reimbursement to the Managing authority or an intermediate body that have to take care of the funds return within their authorization. CA also carries out checks for the purposes of certification of the managing authority or intermediate bodies and reviews the adequacy of procedures and controls that they carry out. Based on their findings may propose to the managing authority or intermediate body to carry out checks on the spot.

Customs Administration of the Republic of Slovenia (from 01.08.2014 onwards Financial Administration of the Republic of Slovenia) is ensuring effective control on the level of the General Customs Office by internal professional supervision of customs offices work. Several times a year the timeliness and correctness of entry in the OWNRES application is verified.

The Managing Authority notes that the biggest problem in the context of reporting of irregularities lies in the period between detection of an irregularity and the actual reporting. Therefore, the Managing Authority monitors all incoming audit reports of national and European supervisory authorities and the inspection reports on the spot in order to ensure the adequacy and accuracy checks. In addition, the Managing Authority also asks the respondents - intermediate bodies, in the case of open irregularities, to close/complete them as soon as possible (Art.5).

Regarding cases of cigarette smuggling, there is a gap between committing the offense and imposing the customs debt established by the courts in criminal sentence (which is the documentary evidence for the result communicated through OWNRES) due to criminal proceedings.

According to the National Agency for Fiscal Administration, fraud/irregularities detected in the period 2009-2013, were reported online through OWNRES system in due time, in accordance with the legal provisions in force.

Issues surrounding the OWNRES system in Poland are regulated by a decree from the Minister of Finance on reporting cases of detected fraud and irregularities concerning traditional EU own resources exceeding EUR 10 000 in OWNRES. This decree specifically regulates, inter alia, the timely reporting of cases of fraud and irregularities, according to which data is input and updated on a monthly basis by the 15th day of the following month. Within supervision provided by the competent institution, proper flow of information within the system is verified and the transferred data is validated and verified. Cases are confirmed by the deadline outlined in regulation 1150/2000, i.e. within two months of the end of each quarter in which irregularities or fraud are detected. The audit performed by the Supreme Audit Office in 2014 for detected irregularities and fraud reported in 2013 in OWNRES showed that the cases reported to the Commission were taken into the system correctly.

Austrian answer: "As points 1-8 either refer to specific other MS or do not specifically mention Austria, please do not expect any further comment on this document." (Ares(2015)553829)

All irregularities relating to breaches of customs regulations involving more than 10 000 euro in duty are entered in OWNRES, in compliance with EU legislation. This recommendation endorses the current procedure.

The reporting process has been reviewed so that the time lag between the detection of irregularities and the submission of the report on OWNRES will be reduced to a minimum. The reporting mechanism has been modified so that the relevant sections of the Department complete the form (information sheet for reporting an OWNRES case of fraud and irregularity of duties exceeding €10,000) and include it in the respective file for every specific fraud case. Thus the Customs Debt Unit is in a position to minimise the time lag between the detection of irregularities by the responsible section and the submission of the report in OWNRES.

The Commission’s Directorate–General for the Budget carried out an inspection in Hungary with regard to its traditional own funds between 13 and 18 September 2013, during which it was established that certain customs bodies reported the establishment of customs debts exceeding EUR 10,000, arising as a result of subsequent procedures conducted on the proposal of clients, in the OWNRES system, while the reasons for the modifications did not imply either fraud or irregularities. On the basis of the contents of the report submitted to the Commission, it is not warranted to make OWNRES reports in the case of the establishment of customs debts arising as a result of subsequent procedures conducted on the proposal of clients if no sign implying fraud or irregularity is found, while the amount of the customs debt established exceeds EUR 10,000. The bodies concerned have been informed about this.

The relevant internal order of NAV regarding procedures relating to irregularity reports and issued by the President of NAV prescribes that irregularities detected and subject to a reporting obligation are entered by the body or organisational unit detecting them in the OWNRES system within eight working days following the availability of the information serving as a basis for the report, which is approved on the following working day. Thus, the timely reporting of fraud cases and irregularities is ensured. The regulation referred to above requires with respect to the updating of information that the officer entering it should continuously update the measures introduced in connection with the irregularities previously detected and entered in the OWNRES system and their results in the OWNRES system.

The correctness of OWNRES data is also ensured by the rules on checking the correctness of data contained in reports relating to the Communities' own resources. Under these rules, local customs officers are required to check the correctness of data submitted for the purposes of drawing up reports on EU own resources at least once every quarter. During these checks, it is also ensured that OWNRES and the B account data tally. The correctness of OWNRES data must also be periodically verified by officials of the Customs Department under the Tax Administration Division of the Ministry of Finance. Errors relating to OWNRES data are rarely detected during these checks. We consider the existing control measures to be sufficient.

Persons have been appointed (processors) to enter information into the OWNRES system, as have information validators. Processors must ensure that data entered into the OWNRES system are consistent with the data entered into the tax accounting and control system. Validators check whether the form and content of the information entered into OWNRES by processors meets the requirements laid down. In addition, the competent local customs officials are obliged to inform the processor of any changes (appeal cases, amounts recovered, etc.) concerning cases previously registered in OWNRES.

In order to ensure that information concerning infringements and fraud is entered into the European Commission’s OWNRES properly and on time, in 2004 the Lithuanian customs authorities adopted rules on entering information concerning infringements and fraud linked to European Union traditional own resources falling within their competence into the European Commission's OWNRES system. These have been updated several times and continue to remain in force. Checks on the correctness and timely submission of data entered into the OWNRES system are made in several ways.

The State Revenue Service’ National Customs Board Unit that is responsible for the management of the “B” account, is also responsible for gathering and entering of information in OWNRES. In order to reveal the gaps and mismatches this Unit cross-check the data entered in the “B” account and reported via OWNRES, also reminds regularly on the importance of timely, complete and reliable reporting.

The newest version of the State Revenue Service’s internal rules that let down the procedure for preparation of the reports on fraud and irregularities, recovery and for registration of the information in OWNRES system is approved on 19.12.2013. In order to meet the deadline set by Article 6.5 of Council Regulation (EC, EURATOM) No 1150/2000 of 22 May 2000 implementing Decision 2007/436/EC, Euratom on the system of the European Communities own resources the above mentioned procedure sets the time limit of four weeks (after the date when calculation of customs debt or possible customs debt is approved) for submitting the information to the responsible Unit with a view of its’ registration in OWNRES.

As regards the Department of Customs and Excise of the Republic of Cyprus, an internal process was established in order to ensure timely reporting on and updating of fraud and irregularity cases, effecting monitoring, reliable information on fraud and irregularity cases in OWNRES.

A consistency check between the various items entered in the system is also carried out each quarter in respect of new cases.

Every quarter a meticulous cross-control is carried out between the OWNRES and the separate account results in terms of the entries, discharges (where amounts have been recovered, declared irrecoverable or made available) and corrections at every operational office.

When it comes to reporting under the OWNRES system, Italy is particularly attentive both to the time limits for transmission, which have never been missed, and to ensuring that all information provided is complete and correct.

In the period 01.07.2013. - 31.12. 2013., the Republic of Croatia has entered eight cases of fraud and irregularities (5 fraud cases and 3 irregularity cases). All cases were approved on time and obtained the number of quarter in which they were discovered. Additionally, European Commission document "Follow-up recommendations to the Commission report on the protection of the EU's financial interests fight against fraud, in 2013" along with the Recommendations 5 and 6 was forwarded to the relevant operators in the regional customs offices, which reveal and enter cases to OWNRES (i.e. customs officers that are appointed to enter cases in OWNRES application) as well as they were also informed about the importance of this recommendation.

In 2014, the DGDDI launched a large-scale audit of the OWNRES system to improve the detection and reporting of fraud and irregularities related to traditional own resources uncovered by its services. Reasons were identified for possible delays between case detection and notification via OWNRES. Resulting primarily from differing interpretations of the concepts of 'booking' (in the budgetary sense) and of 'fraud or irregularity cases' (a legal concept implying that notification of the offence has been given), these delays, notwithstanding some long-running individual cases relating to the right to be heard, did not have a significant impact on the notification procedure beyond an extra three months. New instructions are currently being drafted based on the conclusions of this audit and these will be circulated during the first half of 2015, which will lead to a new framework for implementation and improved reliability of information reported.

As a result of DG Budget's inspection in Spain, which included checks on the content of the OWNRES forms, work is under way to adopt the necessary measures to encourage reporting using the forms, ensure that the forms are kept up to date and that the information they contain is complete.

3) Training on proper notification and updating of data on cases of fraud and irregularities was provided, inter alia, in the context of the 2014 training programme for customs authorities on the new ICISnet information system and, in particular, the subsystem of information and special cases.

2) The two Customs Audit Authorities (CAAs) of Attica and Thessaloniki, that are carrying out inspections at the judicial departments of customs offices with regard to the proper implementation of procedures, ensure that new information sheets on fraud and irregularities are filled-in properly and that older sheets are properly updated. Reference to their role is also made in the aforementioned order.

1) With regard to notifications on fraud affecting the EU’s own resources under Regulation (EU) No 1150/00, the competent Directorate of the Ministry of Finance (D33) provides oral and written instructions for compliance with the requirements of Community legislation, to all customs authorities. Circular order No D33Α 5029264 EX2014 9/12/2014 (copy attached hereto) was issued for this purpose. It highlights the importance of correct notification and updating of data on cases of fraud and irregularities, making reference to the following specific points:

IE strives to ensure that our work in relation to OWNRES is addressed in line with requirements. Procedures are in place to ensure timely reporting and updating of fraud and irregularity cases and that the information entered is accurate to the extent reasonably possible, result from reliable systems and verifiable data and are in compliance with the relevant EU regulations, rules and guidance.

Updates and additions to AM and RIF notices and alerts were introduced into the management instruction in the Tax and Customs Board to ensure even more effective risk management and feedback.

However, we would suggest once again that the Commission should adapt the OWNRES database, for which it assumes responsibility, to requirements. First, the database is not sufficiently user-friendly; second, the Commission requires that false information be knowingly entered. For instance, the database allows just a single valid administrative/financial stage. If tranches are handled differently (e.g. a tranche becomes irrecoverable and the Member State should assume financial liability for a further lost tranche), this cannot be displayed using the current matrix on stages in recovery.

According to 'Document ACOR/2014-12/agenda-04-en', presented to the Member States at ACOR's 162nd meeting of 4 December 2014, the Commission is satisfied with the position and will declare the report item closed. No further action is required from Germany.

• Since 2012, German customs authority officials have been able to attend a four-day course dealing specifically with traditional own resources. One of this course's main modules looks at how to report cases of fraud and irregularities pursuant to Article 6(5) of Regulation (EC, Euratom) No 1150/2000.

• Official meetings held at varying intervals exclusively examine the reporting of cases of fraud and irregularities pursuant to Article 6(5) of Regulation (EC, Euratom) No 1150/2000. The next such official meeting is scheduled for April 2015.

• Since 2008, Germany has carried out annual database matching between the OWNRES and NIZZA databases (the German customs authority's cash management system). National checks are performed in respect of 'potential cases', 'outstanding cases' and 'discharged cases' and rectified as necessary.

• In addition to the user manual, instructions are available to services in the form of official guidelines.

Internal guidelines have been created to ensure that SKAT settles EU own resources correctly. These guidelines are an overall description of the rules and procedures for all settlement of EU OWNRES (customs duties). These guidelines also describe the rules for OWNRES reporting.

To ensure compliance with OWNRES reporting deadlines, the officials involved receive a deadline alert. There is good cooperation between customs officials and those in Accounts. OWNRES cases are drawn up and reported according to the current rules and a link between the B account and the OWNRES reports is ensured.

The customs authorities meet the notification requirement regarding cases of fraud and irregularities using the OWNRES database in accordance with Article 6(5) of Council Regulation 1150/2000. Under that Article each Member State is required to send the Commission a description of cases of fraud and irregularities detected within two months following the end of the quarter in which they were detected. In the case of the Czech Republic the OWNRES entries are in most cases made well within the time limit. Last year the Commission checked the OWNRES entries and, according to the information available, did not have any major observations to make on them. During the control visit to the Czech Republic the Commission representatives stressed that the Commission created the OWNRES application primarily for its own purposes regarding the public revenue aspect of the cases recorded and only secondarily for OLAF ’s monitoring of irregularities and fraud.

There is a long-standing requirement on all departments in the prosecution service to keep the Supreme Public Prosecutor’s Office notified of any criminal cases affecting the financial interests of the EU. As the AFCOS contact point on criminal matters, the Supreme Public Prosecutor’s Office therefore has comprehensive information on criminal irregularities for the whole of the Czech Republic and it then uses this information to produce the regular quarterly reports on the status of all these criminal proceedings. These reports are sent to OLAF on a regular basis. To ensure effective exchange of information with OLAF, on the basis of the government-adopted National Strategy for the Protection of EU Financial Interests close cooperation has been set up between the Supreme Public Prosecutor’s Office and the Czech Police (Corruption and Financial Crime Detection Section investigating criminal activities affecting the financial interests of the EU), so that information on ongoing investigations and other police activities is promptly shared.

In addition, the local departments of the Customs Agency have been instructed to update the information submitted to the head office on a regular basis.

As regards the reporting and validation of cases in OWNRES, Bulgaria has updated the details (names and contact details) of the staff of local customs departments responsible for sending information to the head office of the Customs Agency.

Same comment than the one formulated on recommendation 5: especially our last phrase that will complete the eventual remark of O&O_E&R. This new administration within BE Customs & Excise is responsible of the reporting in OWNRES.

3.2.2.Expenditure: a developing landscape

On the expenditure side, the changes in the number of fraudulent irregularities reported in the last five years are more difficult to interpret (decreasing in 2009-11, and then increasing in the following two years). However, it seems to be more linked to the fact that most of spending programmes are multi-annual (structural and rural development funds and Pre-accession assistance).

An unexpected change was observed in 2013 in the agricultural sector (with significantly more cases of potential fraud detected and reported); this could be the result of ad hoc investigations and might not be confirmed in future years.

However, the role of the managing authorities in detecting fraud has been growing, in particular since 2012. Their role should grow further in the coming years, thanks to the recently developed anti-fraud strategies that will be fully implemented in 2014-20.

Structured coordination (exchange of data and information) between anti-fraud bodies and managing authorities has proved to be a best practice and should be implemented in all Member States.

The Commission recommends that Member States correctly implement the EU’s anti-fraud rules, based on carefully prepared and up-to-date fraud risk assessments, and supported by adequate IT tools that will help to better target checks.

BE The Belgian AFCOS has been designated in 2013, however the day-to-day functioning of AFCOS is still in a process of optimizing. FEDER WALLONIE (ERDF WALLONIA): AFCOS, in the same way as Belgium's FPS Foreign Affairs, should be granted IMS access for consultation purposes. ESF VLAANDEREN: The form this cooperation will take is still being studied, but Flanders believes that it should make allowances for Belgium's institutional structures.

BG By Decision No 53 of 17 December 2014 of the Council of Ministers, a National strategy for preventing and combating irregularities and fraud with implications for the financial interests of the European Union for the period 2014–2020 was adopted. The National Strategy is in line with the new initiatives for protection of the financial interests of the Union at Community level and takes into account the Commission’s recommendations. On the basis of an analysis of the mechanism for protection of the financial interests of the European Union, it outlines the irregularities reported during the period 2007–2013, the problem areas identified, and the strategic goals and actions to be taken by the bodies involved in the management and control of the disbursement of EU funds and by the revenue and law enforcement agencies responsible for combating irregularities and fraud with implications for revenue and spending at Community level. The main goal of the National Strategy is to ensure a higher level of protection of the financial interests of the EU through the achievement of four strategic goals. The first goal is step up prevention through better legislation, strengthening of the administrative capacity, transparency and public access to information, maintaining integrated databases and systems that enable reporting and the exchange of information. The second strategic goal — more efficient detection and combating of irregularities and fraud — will be achieved through strengthening of the cooperation and interaction between revenue authorities, conducting robust internal controls, and interaction between government bodies, the private sector, non-governmental organisations and civil society and improvement of the system for the exchange of information about irregularities and fraud, and reliance on advanced information technologies and electronic management in the administration of irregularities. The third strategic goal is to strengthen cooperation with OLAF and the competent bodies of the EU and other Member States and the fourth one is to raise the efficiency of investigations, recovery action and the levying of penalties. The national rules on imposing penalties will be streamlined, clear and expeditious recovery procedures will be put in place and the efficiency of administrative and penal proceedings will be improved. In connection with the exchange of information between the managing authorities and antifraud bodies, the Managing Authorities of operational programmes keep separate registers of notified and identified irregularities, and report the information contained therein to the AFCOS Directorate of the MVR on a quarterly basis. The Managing Authorities of operational programmes have an obligation to report irregularities and fraud via two electronic systems: the Information System for Management and Monitoring of EU Funds (MMIS), which contains a dedicated Irregularities module and enables the reporting of all detected and registered irregularities covered by Articles 28(2) and 36(1) of Commission Regulation (EC) No 1828/2006 (this category of irregularities are not reported to OLAF but must be reported to the AFCOS Directorate at national level); the Irregularity Management System (IMS), which is used to report irregularities and fraud covered by Article 28(1) of Commission Regulation (EC) No 1828/2006 (irregularities reported to OLAF). Management and monitoring information system for the period 2014–2020 (MMIS 2020) A single Information System (MMIS 2020) will be used during the programming period 2014–2020 for the management and monitoring of the following operational programmes cofinanced by the European Structural and Investment Funds (ESIF): Transport and Transport Infrastructure; Environment, Regions in Growth; Innovation and Competitiveness; Good Governance; Human Resources Development; Science and Smart Growth; Rural Development Programme 2014–2020; and Development of the Fisheries Sector 2014–2020. In accordance with Contract MS-96 of 29 July 2014 concluded with a view to enabling the functioning of the MMIS 2020, the functionalities of the information system used during the programming period 2007–2013 will be further developed. The MMIS 2020 will have a significantly higher capacity for the storage and processing of structured information about projects, applicants, beneficiaries, partners, contractors, payments made, types of expenditure, etc. In addition, the system will be equipped with functionalities enabling the exchange of information with the National Statistical Institute, the Company Register, the BULSTAT Register, the De minimis and State Aid registers, etc. This will improve the analytical capability of MMIS 2020, including the possibilities to generate reports to be used to prevent and combat fraud, including by means of conducting checks to verify the absence of double financing, monitoring and conducting analyses and assessments. The expanded functionalities are a further guarantee for the detection and prevention of fraud and irregularities with implications for the operational programmes. Arachne Bulgaria plans to introduce and use the Arachne system developed by the European Commission as a risk assessment instrument for the operational programmes. Thus, a software tool will be available for daily use that enables identification of the projects that carry the highest risk and ensures a possibility for the systematic monitoring and review of information about projects, beneficiaries, contracts and contractors from internal and external sources over extended periods of time. Following extensive communication with the Commission, data from the Management and Monitoring Information System (MMIS) about all operational programmes has been submitted for processing to enable the final software configuration. In addition, the use of Arachne as a risk assessment tool will be included in the description of the management and control systems of the Managing Authorities. The information alleging irregularities is administered in accordance with the procedures and within the time periods stipulated in the Regulation laying down the procedures for the administration of irregularities with implications for funds, instruments and programmes cofinanced by the European Union. The information concerning alerts and irregularities is entered into the MMIS and IMS in a timely manner by the officers responsible for irregularities and it is used by the Certifying Authority (CA) for the purposes of certifying expenditure and drawing up declarations in respect of the amounts written off and recovered, those to be recovered and non-recoverable amounts. When reviewing documents or upon the receipt of letters (by post or via the electronic reporting system of the Ministry of Finance), complaints and information about irregularities on the part of natural or legal persons within the competence of bodies other than the CA, which are covered by the definitions of irregularity and fraud, may be detected. In this case, the CA registers the alleged irregularity under the respective operational programme in the dedicated register and notifies the unit or body concerned. When the information received contains indications of fraud, the competent law enforcement bodies (Prosecutor’s Office) and the AFCOS Directorate are notified. The operating procedures manuals of the Certifying Authority for the programming periods 2007–2013 and 2014–2020, respectively, contain detailed procedures for reporting irregularities/suspected fraud to be followed by the staff of the CA in accordance with the Regulation laying down the procedures for the administration of irregularities with implications for funds, instruments and programmes cofinanced by the European Union. All employees of the Certifying Authority have access to the Irregularities register in which the alerts within the competence of bodies other than the CA are entered in connection with the certification of expenditure incurred under the operational programmes. As regards information alleging irregularities, it should be noted that the Managing Authorities have stepped up their efforts to verify the reliability of information and conduct checks on sources through feedback and collecting verification information via different channels. The Managing Authorities conduct detailed checks to verify the information contained in each report that may subsequently be qualified as ‘suspected fraud’. Feedback is sent to the party that reported the alleged irregularity in each case with a view to collecting, obtaining and compiling a summary of the information received. Unannounced on-the-spot checks are conducted as necessary to establish the facts, obtain documentary evidence to be sent to the competent law enforcement bodies, and identify the presence or absence of intentional behaviour or deception. Since the beginning of 2014, information has been entered into the information systems of the Managing Authorities where the alleged infringement is corroborated by written evidence, which is frequently not only cited but also sent via the systems as attachments and appears in the file of the irregularity concerned. Information is updated on a regular basis by modifying the details of the irregularity in the electronic systems. Detailed checks are conducted when information about suspected fraud or conflicts of interest is received. In connection with this, information from a broad range of public sources and available grant agreement/public procurement documentation is collected with the assistance of all interested administrative services or competent bodies. The competent law enforcement and control bodies (Police, Investigation Service, Prosecutor’s Office and courts) are notified with a request to take action, depending on the competence of the body concerned. Onthespot checks are conducted without prior notification to the grant beneficiary. The respective fraud indicator is reported to the AFCOS Directorate of the MVR in line with the Regulation adopted by Decree No 285/2009 of the Council of Ministers and the rules laid down in Section Irregularities of the Procedures Manual of the Managing Authority of the operational programme. Where the suspected fraud is verified (by modifying the information about the irregularity in which fraud is suspected) a 100 % financial correction is imposed on the respective project component (concluded contract, activity and/or budget heading). The information about registered irregularities and fraud is updated and reported on a regular basis with a view to ensuring adequate traceability of the progress of verifications and/or administrative proceedings. On 1 February 2014, an Administrative Investigations Unit within the AFCOS Directorate of the MVR was established. Its tasks include conducting administrative checks with a view to detecting irregularities with implications for the financial interests of the EU (administrative investigations). As of 31 December 2014, the Administrative Investigations Unit had instituted proceedings in 50 cases following the receipt of information on alleged irregularities. Seven administrative investigations have been completed. No recommendations for follow-up action were given in the three cases in which infringements were not identified. In four cases irregularities at project level were detected during the course of the administrative investigation under the operational programmes Environment, Regional Development, Rural Development and Development of the Fisheries Sector. Recommendations for the recovery of the amount of BGN 11 921 826 were given and the cases have been referred to the Bulgarian Prosecutor’s Office. A Permanent Working Group on Irregularities (PRGN) was established. It operates under the supervision of the AFCOS Directorate and comprises 34 members, including officials from the AFCOS Directorate and the relevant institutions: Managing Authorities, Certifying Authorities and Audit Authorities. The PRGN is responsible for identifying and reviewing specific problem cases that are very complex or cases that are ambiguous, and for exchanging experiences, good practices and information about new fraudulent practices. All Managing Authorities maintain open lines of communication with the AFCOS Directorate of the MVR on issues such as methodological guidance on the administration and reporting of irregularities but, equally, for the purposes of conducting on-the-spot checks when special assistance from investigating bodies is required. With regard to the information systems put in place in several Managing Authorities of operational programmes, it should be noted that the Directorate-General for the Management of Territorial Cooperation of the Ministry of Regional Development and Public Works has developed an integrated management information system (for the programmes for which it is responsible as designated Managing Authority) with different levels of access and protection, which enables project documentation to be entered, stored and monitored in a separate section. It is further equipped with a functionality enabling information to be entered about each irregularity/suspected fraud detected. The relevant information about irregularities is accessible from the different modules, which enables full traceability of the administration of irregularities from the date on which they occurred until the case is closed/a financial correction is imposed. The information is used by the working groups set up within the administrative service for risk assessment at project and programme level in order to identify potential deficiencies in the management and control system and for overall fraud risk assessment. During the programming period 2014–2020 full access to the electronic system will be granted to the AFCOS Directorate of the MVR and the Managing Authority of the Operational Programme on Regional Development (OPRD) will develop a dedicated information system for the needs of the MA of the OPRD, equipped with a functionality for cross-referencing all information about irregularities or fraud received by or generated within the Managing Authority to the risk assessment system set up under the operational programme. It will provide input for fraud risk assessment both at the level of each structural unit of the MA and each individual beneficiary to be conducted by use of the IT tool described. The management and control systems of the Operational Programme on Human Resources Development (OPHRD) referred to in the Manual on the management and implementation of the operational programme during the period 2014–2020 are fully in line with the Commission’s Guidelines and the annexes thereto. The manual contains a procedure for detecting and reporting irregularities that has been modified to ensure compliance with the provisions laid down in Regulation (EU) No 1303/2013. A detailed description of the rules and procedure for the detecting, reporting and follow-up on irregularities/fraud is set out in Chapter 12 Irregularities of the Manual. The system is similar to the one currently used. The requirement for risk assessment in the context of the anti-fraud effort during the period 2014–2020 has been taken into account and is an integral component of the management and control systems of the OPHRD 2014–2020, including the risk assessment system for the operational programme. The description of the systems and the manual were approved on 26 and 14 January 2015, respectively, and their accreditation by the Audit of EU Funds Executive Agency is forthcoming. The Managing Authority of the Operational Programme on the Environment (OPE) is currently developing a comprehensive risk assessment strategy, which includes a fraud risk assessment component. It is based on the Commission’s Guidance Note on fraud risk assessment for the programming period 2014–2020 and Guidelines for national anti-fraud strategies for the European Structural and Investment Funds. The specific steps to be taken by the Managing Authority against fraud will be set out in detail in the MA procedures manual. For a second year after introducing the principle of effectively structured coordination, in 2014 the State Fund for Agriculture (DFZ) continued to follow the model to ensure coordination between the Anti-Fraud Department and the Directorates responsible for direct payments. Three checks were conducted in accordance with Article 28(1) of the Rules of Procedure of the DFZ. Risk analysis is conducted by use of IACS, a specialist software product that allows for analyses on the basis of different risk criteria, and generation of project samples, grant applications and payment requests for the purposes of the ex post controls conducted by the Anti-Fraud Directorate. As a result of a meticulously conducted risk analysis with input from the Anti-Fraud Department, the Direct Payments Department and the Technical Inspection Service Directorate, a number of high-risk beneficiaries have been identified. The outcome of the checks conducted to date, on the basis of thorough and upto-date fraud risk assessments using appropriate IT instruments, demonstrate conclusively that the checks being carried out are much better targeted. The considerable number of beneficiaries having submitted applications that involve suspected fraud is a reliable indicator that the principle of structured coordination (data and information exchange) between the bodies concerned in the fight against fraud and the managing authorities and paying agencies is a good practice and should continue to be applied in the future. The Axter Popeye information system is designed to enable the management of projects cofinanced by EU funds by the Fisheries and Aquacultures Executive Agency (IARA) in its capacity as designated Managing Authority. It is used for the registration of grant applications by the local departments of the IARA, subsequent processing of project information by officials at the Agency’s head office, the entry of information into standard registers and generating different reports on applications and projects by the competent officials. The software product used for the processing of project information and collecting data to be transmitted via the Axter Popeye system of the European Commission ensured a fully automated process of acceptance, registration and evaluation of project applications under the Operational Programme on Development of the Fisheries Sector (OPDFS) for the period 2007–2013 and provided a sound basis for the management and monitoring of the programme. The Axter Popeye information system is equipped with an interface to the management and monitoring system for the Structural Funds and the Cohesion Fund of the European Union in Bulgaria (MMIS) with a view to making appropriate administrative arrangements for cooperation ad control of the entry, update and electronic exchange of information between the two systems. Designated officials from the European Fisheries Fund Directorate have access to both the MMIS and the Integrated Administration and Control System (IACS) for the purposes of the administrative checks conducted on payments requests under projects implemented under the Operational Programme on Rural Development (OPRD). The Specialist Directorate for Financial Intelligence of the State Agency for National Security (DANS) is a beneficiary under a project implemented under the Operational Programme on Administrative Capacity (OPAC) for the development of an information and communication system and a secure web portal for the provision of electronic services to the public administration, businesses and citizens in relation to the implementation of measures to combat money laundering and terrorist financing. The project, with a scheduled completion deadline in the second half of 2015, will enable the persons referred to in Article 3(2) and 3(3) of the ZMIP to transfer electronically information on the performance of their obligations for the reporting of suspicious operations and the development of internal rules on the control and prevention of money laundering and terrorist financing, thereby accelerating and enhancing the efficiency of communication and the subsequent processing of information by the Specialist Administrative Directorate Financial Intelligence of the DANS. The Bulgarian Prosecutor’s Office has put in place and is now using a Single Information System (SIS), which enables the entry, storage and traceability of uniform case and other information from the institution of proceedings up to the issuance of an injunction in the case. A separate functionality ensures that all court decisions are available (as electronic attachments) in case folders. Depending on access authorisations, the SIS may be used by: each prosecutor (and investigating magistrate) at first-instance level for the purposes of the cases and proceedings allocated to them; more senior prosecutors for the purposes of conducting ex officio checks and case reviews; the heads of the respective prosecution offices for the purposes of administrative control, including the checks envisaged in the Judiciary Act (ZSV) to ensure compliance with the time periods for conducting investigations and adopting decisions. The following electronic registers have been developed (on the basis of the information entered into the SIS): Register of persons subject to pending criminal proceedings; Register to monitor compliance with the time periods laid down in procedural law; Register of persons remanded in custody; Register of the time periods laid down in the Criminal Procedure Code; Register of pending cases; Register of acquittals. Funds are available to ensure that each prosecutor and investigating magistrate has access to the national information systems database, including identity documents, the company register, etc. The SIS comprises a communication module equipped with an interface to the Single Crime Prevention Information System. In connection with cooperation and data exchange, the PRB is considering updating the joint guidelines on the exchange of information with the AFCOS Directorate of the MVR. The statistical information that the Prosecutor’s Office provides about crimes with implications for the financial interests of the EU includes details such as the date of instituting criminal proceedings, and their progress and outcome, throughout the trial phase and up to the entry into force of the decisions handed down by the courts. As regards the information about the different types of programmes (which cannot be generated automatically), the IT Directorate is examining the data export software functionalities of the SIS version currently used. The Prosecutor’s Office conducts monthly analyses of high-profile cases involving corruption or crimes with implications for the financial interests of the EU. The analyses cover the previous month and outline the progress made in relation to the previous five months and the same period in the previous year. Along with other information about the package of measures, trends are identified to enable senior officials in the Prosecutor’s Office to determine the need for follow-up action. In 2013, proceedings were instituted in 179 new cases in respect of financial fraud with implications for the financial interests of the EU. Of these, 103 cases have been brought to court and 96 convictions have been obtained. This information has been obtained from the Report of the Prosecutor-General on law enforcement and the activity of prosecution and investigation services in 2013 and the Analysis of the work of the Prosecutor’s Office during the first three quarters of 2014. During the latter period the Prosecutor’s Office supervised proceedings in 349 pre-trial proceedings concerning abuse of EU funds and proceedings were instituted in 117 new cases. Proceedings have been concluded in 154 cases in which 98 injunctions were issued against 113 accused parties. A total of 64 sentences and 2 acquittals have entered into force.

CZ In connection with information exchange on suspected criminal acts involving financial resources received from EU funds, last year the Supreme Public Prosecutor’s Office stepped up cooperation with the central bodies that audit subsidies co-financed from European funds and public procurement. Specifically, a formal agreement was concluded on cooperation between the Supreme Public Prosecutor’s Office and the Supreme Audit Office, on the basis of which joint training is conducted and information exchanged, including information reporting suspected criminal acts, which the Supreme Public Prosecutor’s Office then takes the necessary action to investigate. The Supreme Public Prosecutor’s Office has entered into similar cooperation with the Office for the Protection of Competition, including exchanging information and experience within the Office’s remit on scrutinising the conduct of public procurement procedures. The Czech Republic has a long-standing tradition of focusing on eliminating risks potentially threatening EU traditional own resources. In connection it is essential for there to be communication between the centre processing the risk information and the body actually carrying out the checks. Post-clearance checks on goods are one of the mechanisms used for this purpose. Selecting which traders need to be checked because they present a risk is one of the key factors affecting the effectiveness of the checks then carried out. The Automatic Risk Assessment (ARA) application referred to above was created for this purpose. This application can collate the risk factors entered and automatically process them in relation to traders to be checked. Search queries identify specific traders and the customs declarations at risk. Rules have also been introduced on communication between the central level (Directorate-General for Customs) and the operational departments (customs offices). Risk analyses are carried out at central level regarding potential infringements of the law. Where a risk is identified as real, it is reported to the customs office concerned proposing specific action or a thematic area to be looked at and the customs office then reports back on whether the identified risk was substantiated or not. This system is highly effective. The effectiveness of post clearance checks on goods currently stands at 86.8%.

DK Cooperation concerning EU anti-fraud rules in Denmark takes place between authorities in the AFCOS network. Anti-fraud legislation is implemented in the field of agriculture by the Danish AgriFish Agency, for the structural funds by the Danish Business Agency and for customs by SKAT. The Public Prosecutor for Economic and International Crime (SØIK) is the competent authority for the investigation of crimes involving EU funds, while the AFCOS (Ministry of Finance) undertakes overall coordination of cases with horizontal relevance. Regular meetings are held in the AFCOS network, at which there is a general exchange of experiences and information. Besides this, the individual authorities in the network cooperate directly with each other. Cooperation between the AgriFish Agency and SKAT has been formalised in the form of a cooperation agreement which lays down that "SKAT and the AgriFish Agency will on a mutual and ongoing basis inform each other of relevant events and information, including suspicions of unlawful imports/exports/transits, falsified documents and suchlike" (cooperation agreement of June 2014). Concerning the structural funds, an initial test of the usefulness of Arachne in the management of structural funds has begun. The initial test, and any further use of Arachne, however, needs to be further clarified in terms of Danish data protection legislation. Cooperation between the managing authorities and the Public Prosecutor for Serious Economic and International Crime is coordinated inter alia via AFCOS. If there is a case of suspected fraud involving EU funds which confers financial gain on the beneficiary and for which no administrative sanctions are available, the case is to be reported to the police. SØIK is responsible for registering such notifications. Actual cases and any transfers are discussed directly between the managing authority and SØIK. A communication on the notification of cases of fraud is currently being audited by the National Auditor, and the NA will issue guidelines for the police's handling of notifications of cases of fraud involving EU funds.

DE Implementing measures for the EU's anti-fraud provisions in the agriculture and fisheries sector are well advanced. In agriculture, a working party has developed guidance which paying agencies are expected to use as their basis when implementing the anti-fraud measures. The first anti-fraud manuals have already been produced and are being used in order to ensure that, inter alia, more targeted inspections can also be carried out. In fisheries, bilateral talks have been held with the European Commission. As a result, the administrative authorities have been offered help with implementing the fraud risk assessment and strategy for proportionate anti-fraud measures, and advised on their correct application. These anti-fraud measures also stipulate how suspected cases should be forwarded to the competent investigative authorities. Germany takes a ‘zero-tolerance’ approach to fraud, as stipulated by the Commission. The Structural Funds do not appear to contain any legislative provision for the mandatory use of IT tools in the fight against fraud. Germany therefore invites the Commission to confine itself to requesting proportionate measures.

EE An access to the project databases (Management Information System) is given to main partners as the Police and Tax and Customs Board. Information on new irregularity cases reaches to them within two weeks from the moment the detection and notification by the 2nd level Intermediate Body has occurred. Our implementing entities have regular and ad-hoc meetings with the Police officials and joint training courses or seminars. We have contacts in law enforcement institutions, who we send all doubtful information to in order to consult with them if there are any signs of crime. Regarding the 2014-2020 European Structural and Investment Funds (ESIF) Estonia has adopted fraud risk assessment tools outlined in the Commission guidelines and launched risk assessment in 2014. In the Management Information System double financing is checked at the expenditure level and necessary cross-checks have been developed.

IE Effective and proportionate anti-fraud measures, taking into account the risks identified are being put in place by the Managing Authorities of the relevant ESI funded operational programmes for 2014-2020 in accordance with Article 125 (4) (c) and Annex XIII of the Common Provision Regulation.

EL AUTHORITY Ministry of Economy, Infrastructure, Shipping and Tourism As mentioned earlier (answer to recommendation 3), the Management and Control System (MCS) of the 2014-2020 Programming Period, to be implemented by Managing Authorities (MAs), will include specific procedures for preventing and combating fraud. Article 52 of Law 4313/2014 on the NSRF 2014 2020 sets out the creation of an Internal Cooperation Network between all Departments involved in the management of structural actions, coordinated by the Special Institutional Support Authority (SISA). A team will be established within each Managing Authority, which will be responsible for assessing fraud risks, making recommendations on corrective measures and reporting results to the Internal Network in question. The Network will examine the reports of Managing Authorities (MAs) on the assessment of fraud risks and the anti-fraud measures adopted. The results of reports may lead to further guidelines or clarifications. Therefore, the contribution of Managing Authorities (MAs) to preventing and combating fraud is expected to be further improved in the years to come. Regarding cooperation at the national level, in addition to the individual cooperation initiatives launched in previous years, the creation of a Cooperation Network for the National Anti-Fraud Strategy in Structural Actions was proposed in January 2014, at the initiative of the Secretariat-General of Public Investments (SGPI-NSRF), between the following departments: Secretariat-General of Public Investments NSRF, Financial Audit Committee, Financial and Economic Crime Unit, National Anti-Corruption Coordinator and the General Inspector of Public Administration. Fruitful meetings were held in this context. The appointment of the National Anti Corruption Coordinator as AFCOS is expected to further improve the coordination of anti-fraud actions and the exchange of country-level information. Regarding IT systems for data collection and processing, we would like to inform you that the upgrading of the Integrated Information System (ITS) is currently underway, aiming to the gradual automatisation of all necessary procedures, the integration of operational flows and document handling, electronic document support, etc. Furthermore, important tools were developed in previous years and are currently being upgraded, such as the Information System for the Management of State Aid (ISMSA) and the SACS system for monitoring the Accumulation of State Aid. The Information System for the Management of State Aid (ISMSA) ensures compliance with transparency and anti-fraud requirements and it also covers the requirement for documenting all steps, from Submission by the Investor up to compliance with Long-Term Obligations, in its entirety, including the recording of relevant supporting documents (audit trail). Article 57 of Law 4314/2014 provides for the mandatory use of the Information System for the Management of State Aid (ISMSA) by all authorities implementing measures that promote and support entrepreneurship. The SACS system is an information system for recording all State aids, which will ensure that: (a) the rules, as defined in EU institutional documents, and (b) the maximum amounts of State aid which may be granted in each case, are complied with. This audit prevents the granting of State aid that exceeds the maximum ceilings and, therefore, it may act as a deterrent for fraud. AUTHORITY - Ministry of Finance– General Accounting Office of the State –Fiscal Control Committee (FCC)- Directorate: 52nd Planning and Evaluation of Audits Regarding the Commission’s remark on the coordination between the competent anti-fraud authorities and the implementation of EU rules by such authorities using appropriate IT tools, the Financial Audit Committee, acting as Audit Authority of the OPs under Objectives 1, 2 and 3 of the NSRF, as well as of the OP Fisheries 2007-2013, has made the following observations: In addition to the actions taken so far by the Financial Audit Committee for preventing and combating fraud, which are being presented in detail in the Audit Manual of the Financial Audit Committee, as mentioned in the replies of our Department in the context of the Follow-up Recommendations of previous years, the Financial Audit Committee, as mentioned in Observation No 8 of our reply for the year 2012, does not use a specific IT tool to analyse fraud risks during the design of its audits. Regarding the cooperation of our Department with other authorities in order to combat fraud, as mentioned in Observation No 3, the Financial Audit Committee cooperates both with the Inspectors - Controllers Body for Public Administration (SEEDD) and with the Single Independent Public Procurement Authority, through the exchange of information and data on their audit results. Furthermore, the Financial Audit Committee submits, on a half-yearly basis, information on its audits to the National Anti-Fraud Coordinator, who has also been designated as AFCOS for Greece, whereas it also submits, on an annual basis, the results of its audits to the General Inspector of Public Administration. Finally, the Financial Audit Committee, acting as Audit Authority under Article 62 of the General Regulation on NSRF 2007-2013 Programmes and Article 61 of the Regulation on the OP Fisheries 2007-2013, is in close cooperation with all authorities involved in the Management and Control System of the above Programmes, namely the managing authorities, the Certification Authority and the national coordination bodies. AUTHORITY - Ministry of Reconstruction of Production, Environment and Energy (Former Ministry of Rural Development and Food) - Special Management Service of the Rural Development Programme (EYD PAA) In the field of data and information exchange, the Special Management Service of the Rural Development Programme (EYD PAA) works with the National Anti-Corruption Coordinator (AFCOS), established under Law 4152/2103 (Government Gazette, Series I, No 107), as in force, as well as with the Directorate of Legislative Initiative and Infringement Management of the Ministry of Reconstruction of Production, Environment and Energy. Furthermore, the Special Management Service for the Programme ‘Rural Development’ cooperates, as appropriate, with audit bodies, such as the Financial and Economic Crime Unit (SDOE). In particular, in the cases where the on-the-spot audits of the Audit Units of the Special Management Service for the Programme ‘Rural Development’ and the Special Implementation Services or the Programme ‘Rural Development’ show some indication of suspected fraud, the report of the audit results is notified and administrative assistance is requested from the competent Financial and Economic Crime Unit department for further investigation and actions to be taken in accordance with its competences under law. In addition, if the above audits indicate possible crimes related to the protection of the EU’s financial interests, a copy of the audit report is also sent to the competent prosecuting authority which takes legal action, as appropriate. Regarding the use of IT tools, the following must be noted: the audit system takes into account cases of non-eligibility of expenditure/error, as well as irregularities with indications of fraud, in the identification of risk factors for the sampling of audits based on risk analysis. Note that the specifications for the design of the new IT System for the Programme ‘Rural Development’ in respect of the 2014-2020 period, as drawn up by the competent working party, provide for the interconnection of the system with the IT Systems of other Funds/ITS (to assess, inter alia, the possibility of duplicated financing of projects) and establish the possibility of interconnection with reference cost statements in respect of investment measures/projects, aiming to verify that costs are reasonable and, therefore, to reduce the error rate of the Programme. AUTHORITY - Ministry of Reconstruction of Production, Environment and Energy (Former Ministry of Rural Development and Food) - Directorate of Audits and Inspections In the field of data and information exchange, the Directorate of Audits and Inspections of the Ministry of Reconstruction of Production, which is responsible for carrying out ex post, on-the-spot audits on beneficiaries or debtors related directly or indirectly to the financing system under the European Agricultural Guarantee Fund (EAGF), has developed a structured cooperation with other authorities. Specifically, Article 83 of Regulation (EU) No 1306/2013 provides for mutual assistance among Member States in cases where a company or a third party is established in a Member State other than that where: i) the related amount was collected or should have been collected and/or was paid or should have been paid, and ii) the documents and information necessary for the audit are located. In implementation of the above Article, Member States must send to the Commission a list of businesses established in a third country, for which the amount in question has or should have been paid or collected in the said Member State. In addition, under Regulation (EC) No 1276/2008, this Directorate of the Ministry of Reconstruction of Production: (a) has concluded a Memorandum of Cooperation dated 12 July 2010 with the Ministry of Finance-General Directorate of Customs and Excise Duties and the Payment and Control Agency for Guidance and Guarantee Community Aid (O.P.E.K.E.P.E), for their cooperation and coordination in the field of exports, with regard to all agricultural products eligible for refunds. (b) furthermore, it cooperates with Member States, where appropriate, in accordance with Article 83 of Regulation (EU) No 1306/2013 on mutual assistance, which stipulates that if additional information is required in another Member State as part of the scrutiny of an undertaking and, in particular, cross-checks, specific scrutiny requests may be made indicating the reasons for the request. (c) cooperates with other Services, as the case may be. In particular, the Directorate acquires information and data, as appropriate, if requested by any competent national authority, such as the Financial and Economic Crime Unit and other competent economic and/or tax authorities. (d) Finally, representatives of the Directorate in question participated in a meeting held by the National Anti-corruption Coordinator in Greece in the context of (a) taking up the new duties of AFCOS (anti fraud coordination service) by the National Coordinator; and (b) relevant actions under the Memorandum of Cooperation, whereas they participated in an event held by the National Coordinator on ‘Modern Means of Communication and Information in the management of Corruption’. Regarding the use of IT tools, in implementation of Article 80 of Regulation (EU) No 1306/2013, this Directorate of the Ministry of Reconstruction of Production uses an IT system which has been presented to the auditing services of the European Commission and has been designed on the basis of risk analysis for the computerised elaboration of audit programmes, in order to grade and visualise as many risk parameters as possible leading to a better preparation of audit programmes of the Directorate by reducing the likelihood of errors in the process of selecting the beneficiaries to be audited and in the monitoring of audit programmes. In particular, the selection of the businesses to be audited is based on previously determined risk criteria for which severity factors on a scale from 0 (zero risk) to 3 (highest risk) are implemented. The Risk Analysis methodology consists of calculating the Risk Amount for each business as the product of the criteria grade multiplied by the amount of the financial aid. The companies with the highest Risk Amount are those selected first. The proposals for the use of risk analysis are presented each November to the competent Service of the European Commission and include the assessment of the risk analysis of the previous financial year, the balance of risk factors and all relevant information regarding the approach to be followed, the techniques, the criteria and the method of implementation, under Regulation (EU) No 1306/2013 and the implementing acts thereof. Finally, this Directorate of the Ministry of Reconstruction of Production selects the transactions to be audited by applying a risk analysis methodology in respect of undertakings. AUTHORITY - Ministry of Reconstruction of Production, Environment and Energy - Directorate for Spatial Planning, Environment and Climate Change The Directorate of Spatial Planning, Environment and Climate Change of the Ministry of Reconstruction of Production has been designated as implementing authority of certain actions under Measure 2.1.4 ‘Agri-environment Aid’ of the Rural Development Programme (RDP) 2007-2013, as approved in the context of the Rural Development Programme (RDP) 2007-2013 by means of Decision No Ε(2007) 6015/29 November 2007 of the European Commission, as amended and in force. According to Joint Ministerial Decision No 079833/25 October 2011 (Government Gazette, Series II, No 2366), as amended and in force, in order to comply with the recommendations of the European Commission on the reduction of irregularities and combating fraud aiming to protect its financial interests, the Directorate has developed a computerised application which covers, for each action, all stages from the submission of aid applications by the interested parties and the performance of the required administrative audits and cross-checks, to the inclusion and payment to beneficiaries. In particular, the terms and conditions for inclusion, compliance with commitments, the administrative inspections, on-the-spot checks and laboratory tests carried out, as well as compliance with the requirements for granting the aid under the aforementioned Joint Ministerial Decision No 079833/25 October 2011, are being recorded in a computer application (using IT tools), in order to ensure compliance with the conditions for granting the aid, both at the approval stage and at the payment stage. As a result, the work of the auditors of the implementation bodies, the application body, the payment body and the bodies responsible for laboratory tests with regard to specific agricultural/environmental actions, as the case may be, is being assisted and safeguarded. All processes and audits that the competent bodies are required to implement so that the beneficiaries of the co-financed projects may receive the approved aid throughout the duration of their contractual obligations are entered in the computerised application. The computerised environment facilitates the cross-checks required under Article 18 of the above Joint Ministerial Decision between the information declared and the information of the beneficiary registered both in other database systems, such as the Single Aid Application (A.E.E.) database, the geospatial data database (LPIS), the M.A.E.E. database (Register of Farmers and Agricultural Exploitation), the database of Veterinary records, and in other electronic data files from various public or private entities such as: bank accounts/early retirement beneficiaries/early retirement successors with ten-year foreclosure/findings from A.E.E. audits etc. In particular, the Single Aid information, which provides the final ‘image’ of each producer’s agricultural holding, constitutes the basis for the initial request and the subsequent audits provided for. Therefore, many of the procedures established for the auditing and inspection of the systems supported by these databases, are also incorporated indirectly as safeguards in the programmes of agri environmental actions. In this way, the stages which involve the human factor are reduced, eligibility for aid to producers and the declared areas and/or animals is ensured, double funding of parcels or producers is avoided and, in general, opportunities for fraud which would negatively affect the financial interests of the EU, are reduced. AUTHORITY - Ministry of Reconstruction of Production, Environment and Energy (Former Ministry of Rural Development and Food) - Directorate for Programming and Applications In order to ensure the effectiveness of: (a) regular inspections of the approved investment schemes, as laid down in the Community and national institutional framework, which are carried out during the certification process of expenditures for aid payment, as well as during the long-term obligations of authorities; and (b) unscheduled inspections carried out following complaints (e.g. Hellenic Food Authority (EFET), Financial and Economic Crime Unit (SDOE) and other authorities and/or private persons), the Directorate for Programming and Applications of the Ministry of Reconstruction of Production held a training seminar in 2013 in each Region/Regional Unit, addressed to the members of the competent Monitoring Committees of Investment Schemes, in order to inform them on the audit procedure, so as to safeguard national and Community financial interests. Note that the regular inspections carried out by Monitoring Committees during the long-term obligations of bodies, are annual and are carried out on all subsidised units for: (a) five years for machinery and ten years for subsidised buildings, under investment plans included and implemented in the context of Measure 2.1 of the Operational Programme Rural Development – Rural Restructuring (EPAA & AY 2000-2006); and (b) five years both for subsidised machinery and subsidised buildings under investment plans which have been included in Measure 123Α of the Rural Development Programme (PAA) 2007-2013. The inspections carried out on all inspected establishments receiving aid under Measure 2.1 of the Operational Programme Rural Development – Rural Restructuring (EPAA & AY 2000-2006) from the competent Monitoring Committees, in relation to compliance with the contractual obligations of operators after the implementation of investment plans and the entry of establishments into operation, have led to findings in certain cases, such as discontinuation of operation of the establishments before the end of the five-year period for completion of the works, lease of premises, operating for a purpose other than the one subsidised, etc. With regard to these projects, the Directorate in question has implemented a recovery process of the public expenditure paid, in accordance with applicable legislation. In particular, in the context of data and information exchange, issues related to the institutional framework of Measures 2.1 and 123Α, the procedure for the exercise of the Directorate’s competences, the departments with which the Directorate works in order to counter fraud, the method for handling complaints and the problems faced by the Directorate as Implementing Body of the aforementioned measures, were discussed during a meeting held in October 2014 with members of the Coordinating Body for combating fraud. In the context of its competences, the Directorate in question cooperates with other audit services under Presidential Decree 107/2014 (Government Gazette, Series I, No 174), as well as with the Financial and Economic Crime Unit (SDOE), examining the audit reports submitted thereto by these services and implementing procedures for the recovery of national or EU funds, when deemed necessary. AUTHORITY - Hellenic Police 1. Combating economic crime is a key priority of the Hellenic Police, as set out both in the New Strategic Operational Programme of the Hellenic Police for the period 2015-2049 and in the Economic Policy of the Hellenic Police Headquarters, which was drawn up in March 2013. In particular, the Strategic Operational Programme sets out individual general actions for the effective combating of economic crime, including, inter alia, countering international crimes and fraud, as well as countering illegal aid under national and EU resources. In addition, the Economic Policy of the Hellenic Police Headquarters establishes combating fraud against the Greek State and against the interests of the European Union as one of the key objectives with regard to fraud, setting specific targeted actions in order to achieve the objective pursued. 2. Regarding the specific issues raised by the recommendations, the Hellenic Police notes the following: This recommendation focuses, inter alia, in increasing coordination between competent authorities. In this context, taking account of the fact that cigarette smuggling is a criminal activity detrimental to the economic interests of the European Union, please note that: An Inter-ministerial Steering Committee, comprising the General Secretariat of Public Revenue, the Hellenic Police Chief, the Chief of the Hellenic Coast Guard and the Director-General of Customs and Excise Duties, was established in 2014 for the surveillance and monitoring of the preparation and implementation of a comprehensive strategy and a coordinated action plan in order to counter cigarette smuggling. Note that the Committee in question was established following a proposal included in a Report of the European Commission and the International Monetary Fund in cooperation with the Greek Customs Administration, in order to counter cigarette smuggling. At the same time, a ‘Multidisciplinary Task Force’ was established in order to facilitate the work of the Committee in question, with the participation of two (2) representatives from each Authority involved, who are responsible for administrative and operational matters, respectively. The implementation of this initiative brought the following results: (a) An Action Plan was signed during the 2nd meeting of the Interministerial Committee on 27 August 2014, drawn-up under responsibility of the Multidisciplinary Task Force, which had received an order to prepare it. The Action Plan established a National Strategy for combating the illegal production and marketing of tobacco products and set individual targets to this end. At the same time, it stressed the need for developing interdisciplinary cooperation, which is necessary for effectively addressing the matter at hand, through the establishment and organisation of a coordination centre, the design of joint operations and the ability to make ‘controlled deliveries’. (b) In the light of the above, the Multidisciplinary Task Force worked on these issues and, on 3 November 2014, it submitted for approval by the members of the Inter-ministerial Steering Committee a series of proposals for addressing these issues, including the establishment and operation of a Coordination Centre against the Smuggling of Tobacco Products. AUTHORITY - Financial and Economic Crime Unit (SDOE) The Financial and Economic Crime Unit (SDOE) is carrying out targeted inspections after developing risk analysis systems on the basis of updated Risk Indicators, in accordance with the Recommendations of the Commission for protecting the national and EU financial interests. Following the submission of relevant requests by Authorities of the Greek State, the Financial and Economic Crime Unit (SDOE) provides substantial assistance by carrying out on-the-spot checks throughout Greek territory in the context of investment projects co financed by the EU in all sectors of the economy. The Financial and Economic Crime Unit (SDOE) refers, in a systematic manner, cases of identified irregularities to the Authorities of the Greek State which are responsible for recovering unduly and unlawfully paid sums, with regard to the national and Community part of financing.

ES As stated above, the operational programmes and the resulting anti-fraud measures that are being prepared are still awaiting approval. As such, it is not possible to give any information on these aspects at this point in time. Among other measures, managing authorities plan to use ARACHNE or other similar tools.

FR The French authorities have taken note of the recommendation. The European regulatory framework evolved in 2014 following the reform of the Common Agricultural Policy (CAP), which introduced general anti-fraud provisions in the horizontal CAP regulation. The European accreditation criteria for paying agencies were supplemented accordingly so that the paying agencies can strengthen procedures for preventing and detecting fraud and irregularities. When supervising paying agencies, the competent authority for the accreditation of paying agencies – the Ministry of Agriculture, Agrifood and Forestry and the Directorate for Budget (Ministère de l’agriculture, de l’agroalimentaire et de la forêt et direction du budget) – ensures that they address anti-fraud issues systematically and satisfactorily. In 2014, paying agencies began to think about the new type of set-up to put in place. They can use DG Agri's guidance note of February 2014 to help them in this process; the note encourages paying agencies to take a more systematic approach to handling fraud risk, but does not make it obligatory for the agencies to carry out new inspections. There are several ways in which paying agencies will deal with fraud risk as part of their activities: - in terms of human resources, staff training will include a fraud awareness component; - checks carried out by paying agencies will include fraud prevention and detection as a specific objective, whilst taking into account the risks; - in terms of internal inspections, follow-up procedures need to be put in place to prevent and detect fraud and irregularities, particularly in relation to areas of CAP expenditure that fall within the remit of the paying agency, where there is a high level of exposure to the risk of fraud or other serious irregularities. The management declaration signed every year by the head of the paying agency will need to confirm whether effective and proportionate anti-fraud measures have been put in place and whether these measures take into account any identified risks.

HR Regarding the cooperation between managing authorities and Service for Combating Irregularities and Fraud, it has to be pointed out that the cooperation between AFCOS bodies is prescribed by the Government Regulation on the institutional framework of the system for combating irregularities and fraud (OJ 144/2013). Namely, Article 7 of the Regulation establishes the cooperation between the bodies of the AFCOS system, hence all bodies of the AFCOS system are obliged to mutually cooperate and exchange data and information. Furthermore, three Managing Authorities for the SCF programmes managed in the programming period 2007-2013 (Transport, Human Resources Development, Regional Competitiveness OPs) introduced ARACHNE during 2014 and used it in a test phase. For this purpose, relevant data was extracted from the Management Information System (SCF MIS) and delivered to ARACHNE. Regular updates of SCF MIS data are delivered to the Commission for the purpose of getting as reliable as possible results of ARACHNE risk analyses. Additionally, SCF MIS is carried out by the Ministry of Finance and the Ministry of Regional Development and EU Funds which are responsible for its sound management. Within the SCF MIS, Service for Combating Irregularities and Fraud (SCIF) as an AFCOS coordinative body has observer role (read only rights). Also, SCIF as a coordinative body is responsible for sound management of Irregularity Management System (AFIS-IMS) within the bodies in the AFCOS System. The reporting of irregularities in the Republic of Croatia (Managing Authority – SCIF – OLAF) is carried out within the IMS System in accordance with the prescribed procedures which are drafted by the SCIF. With the aim to strengthen administrative capacity of the IMS users, SCIF continuously organizes seminars and workshops. Furthermore, judicial authorities in the Republic of Croatia have observer role (read only rights) within the System so that they can act upon the case in accordance with their responsibilities.

IT All the managing authorities are authorised to use the IMS system and also have their own databases and information exchange protocols with external audit bodies. The Italian AFCOS, through the Guardia di Finanza section responsible for combating fraud against the EU, has devised a new project for protecting EU budget resources, entitled ‘National Anti-Fraud Database (DNA), IT tool for preventing fraud against the financial interests of the European Union, with the cooperation of employees of the police forces and national and regional authorities’ Specifically, the aim of the project is to: 1. continue sharing best strategies for preventing and combating fraud with other Member States through the study of best practices; 2. devise a dedicated IT tool for monitoring and auditing in order to create fraud-prevention models shared with the police and the national and regional authorities. The main objective is to use all the data available in national and regional databases to generate specific alerts, destined primarily for the managing authorities, for identifying and reducing the highest risks of irregularities and fraud relating to projects receiving EU co-financing. The strong Italian commitment to this project is supported by the Guardia di Finanza, which has provided an IT application - soon to be launched in a test phase - for enhancing action to combat fraudulent acquisition of EU funds; the system is called the Sistema Informativo Anti Frode (S.I.A.F.) [computerised anti-fraud system]. The application is made up of an integrated technology platform which will link, in a single analysis environment, the information on EU funding granted contained in the data bases used, in most cases, at the bodies designated to manage the funds, with a view to targeted and effective selection for inspection purposes of recipients of public funding judged to be ‘at risk’ on the basis of specific indicators.

CY The Managing Authority for the Structural Funds, through its participation in AFCOS, has collaboration with the national anti-fraud bodies and intends to consider the use of this forum in the framework of its fraud self-assessment and elaboration. In addition, it is envisaging the use of the ARACHNE risk scoring tool on a pilot basis during the first half of 2015.

LV Latvian AFCOS mainly focuses on exchange of essential information and improvement of communication between different bodies as the good and effective communication within all parties involved is prerequisite for effective protection of the EU interests in Latvia. In this regard information flow schemes’ has been elaborated and a list of available State Information Systems which currently can be used on daily basis has been provided by AFCOS, as well as contact persons in the anti-fraud bodies and managing authorities (hereinafter – MA) has been appointed to ensure exchange of data and information among the involved national authorities as well as between these authorities and OLAF. The MA and anti-fraud bodies participates in national AFCOS Council’s meetings in which the questions related to fraud prevention and risk detraction are discussed. All MA’s and Rural Support Service’s (RSS) (Paying Agency EAFRD / EFF/ EMFF) collaboration with law enforcement institutions - an exchange with information is done on regular basis, on request or using available Information Systems. In summer of 2014, representatives from the Division of Economic Crime Investigation of the State Police participated in the conference on fraud prevention matters organized by RSS. Explanation was provided in person to the Prosecutor's office, regarding administration of payments from EU funds. In the first half of 2014, a lecture was delivered to judges of administrative courts on the administration of EU funds. All MA have established or plan to establish a Management Information System to store data on beneficiaries, project progress and any other information which is essential for the monitoring of EU funds, including Fraud and corruption risk analysis, as well as in order to reduce the administrative burden on citizens. In future it is also planned to improve the established systems by improving its functionality and usefulness for the administration of EU funds. The MA ensure the application of the Union’s sectorial legislation on the reporting irregularities, suspected fraud and fraud by sending regular reports via IMS to OLAF/EC. The managing authority of the LV-LT informs the relevant Programme Member states National Authorities (hereinafter – the NAs) on irregularity cases within their territory, including fraud, which have been detected by the authorities involved in the management and administration of the Programme. Afterwards, the NAs inform European Commission and OLAF as well as the anti-fraud bodies of the respective member state according to the national legal framework.

LT In order to ensure that anti-fraud measures are properly instituted and implemented, national legislation requires that the managing authorities for the 2014-2020 EU Structural Funds should introduce and apply measures to combat fraud. The managing authority, acting in cooperation with the managing authorities for the 2014-2020 EU Structural Funds and the Financial Crime Investigation Service under the Ministry of the Interior (FCIS), establishes these measures in the light of the periodic fraud risk assessment and the Commission's recommendations on fraud risk assessment and effective and proportionate anti-fraud measures, and coordinates their implementation. National legislation also provides that where a criminal offence is suspected, the FCIS must immediately be informed thereof in writing (accompanied by all the relevant information and documentation), it being empowered by law to carry out investigations of suspected fraud cases. The FCIS informs the body supplying the information concerning the suspected case of fraud of whether or not it has decided to initiate an investigation into a suspected offence. In order to strengthen cooperation between the managing authorities for EU Structural Funds and those authorities that are empowered and experienced in the area of preventing, investigating and detecting fraud and corruption and their administrative capacity as regards matters relating to the prevention and detection of fraud and corruption in the administration of EU Structural Funds, the FCIS, the Public Procurement Office and the Lithuanian Competition Council are involved in the system of administering EU Structural Funds. The functions to be performed by those authorities in implementing the EU funds operational programme for 2014-2020 approved by Commission Decision No C(2014)6397 of 8 September 2014 (hereinafter ‘the operational programme’) and the procedure for the exchange of information between them are set out in the relevant legislation. It is provided that, in addition to the above activities, the FCIS should also organise meetings with the managing authorities for EU Structural Funds in order to provide methodological and practical assistance regarding suspected offences and participate in the activities of the working groups dealing with the investigation, detection, elimination and prevention of infringements under projects co-financed funded using EU Structural Funds (hereinafter ‘projects’). The Public Procurement Office of the Republic of Lithuania, acting in accordance with the procedure laid down by the Public Procurement Act, checks how the Act and its implementing legislation are being complied with in project procurement, seeks to prevent infringements of the overall legislation, advises contracting authorities and suppliers involved in implementing the operational programme and authorities involved in managing the operational programme on public procurement matters, and creates opportunities for authorities involved in managing projects to check public procurement operations implemented by means of the central public procurement information system (‘CVP IS’), etc. At the same time, the Competition Council, in the context of its participation in implementing the operational programme, advises authorities and project promoters on matters relating to the application of competition policy and state aid, analyses state aid projects, compiles information concerning the state aid that has been granted in implementing the operational programme and submits it to the Commission and other interested authorities, seeks to prevents restrictive agreements from arising in the implementation of project procurement and investigates such restrictive agreements, etc. Legislation and draft legislation regulating the administration of EU Structural Funds are assessed from the point of view of preventing corruption, as provided for in Article 8 of the Lithuanian Anti-Corruption Act. Such assessments are carried out by the authority responsible for the draft and the Lithuanian Special Investigation Service of the Republic of Lithuania. The joint working group of inspectors of EU Fund infringements for the funding periods 2007 2013 and 2014-2020 was set up by Order No 1K-417 of the Lithuanian Minister for Finance of 3 December 2014 amending Order No 1K-115 of the Minister for Finance establishing the infringement inspectors working group in respect of EU structural aid for the period 2007-2013. This working group is made up of representatives of the managing authority and project managing authorities. Meetings of the working group are also attended by representatives of the audit authority, the certifying authority, the FCIS, the Public Procurement Office and Competition Council as observers. The first meeting of this working group was held on 18 December 2014, the main topic of discussions being the prevention of public procurement infringements, including the possibility of project managing authorities using the central public procurement risk management information system set up by the Public Procurement Office in monitoring procurement by project promoters, assessing the level of risk involved and properly organising checks. In order to ensure that project management authorities are able to check project procurement effectively (especially in cases where procurement by the project promoter is relevant to projects of the same promoter managed by several different authorities) and to learn about infringements detected by other authorities, provision is made for project procurement information to be registered in the computerised information management and monitoring system for EU structural aid (henceforth SFMIS 2014). This information as well as information on infringements will be accessible to all project management authorities. Provision is also made for the SFMIS 2014 to be linked to the CVP IS system managed by the Public Procurement Office and for project management authorities to be able to carry out public procurement checks using that system.

LU Outline of the collaboration between managing authorities and anti-fraud bodies and list the IT tools currently in use.

HU In Hungary, the relationship between the authorities that are to investigate criminal offences committed in relation to national and EU budget support and the management bodies playing a role in the distribution of aid is established in national legislation. Section 71/B(1) of Act XIX of 1998 on criminal proceedings (‘Criminal Proceedings Act’) deserves special attention, which provides a possibility for administrative bodies to become familiar with the details of the investigation for the time and to the extent required for performing their tasks, naturally, bearing in mind the enforcement of criminal investigation interests. In addition, the legal instrument of signalisation set forth in Section 63/A of the Criminal Proceedings Act is also important, which requires the authorities proceeding in the criminal proceedings to notify other authorities and administrative bodies if their proceedings appear to be necessary. From the point of view of cooperation, its channel (electronic or paper-based) is not relevant, thus no separate IT system has been established with respect to the contents of the recommendation. Within its scope of responsibilities, the Agricultural and Rural Development Office (‘MVH’) cooperates with the European Anti-fraud Office (OLAF) and NAV as anti-fraud bodies. 1. Cooperation with OLAF: On behalf of MVH, cooperation is based on legislation in the following areas: • reporting irregularities committed by the clients of MVH and subject to a reporting obligation to OLAF (Regulation (EC) 1848/2006 and Regulation (EC) 1828/2006); • provision of information and data by MVH for inspections ordered by OLAF and facilitation of the on-site inspections conducted by OLAF Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council. During cooperation, the following IT devices and tools are to be pointed out: • an electronic reporting system (IMS) used for entering irregularity reports to be sent to OLAF; and • on the basis of the requests of the OLAF Coordination Office of the Central Office of NAV (AFCOS), information and data on the investigations ordered by OLAF are provided by MVH electronically on an interface accessible on the internet on the basis of authorisation. 2. Cooperation with NAV: 2(a) Co-operation with one of its divisions, AFCOS: The cooperation serving to protect the EU’s financial interests covers the following areas on the basis of a written agreement (MVH doc. ID: DSZ/26-2011): • mutual provision of information on legislative and legislation-amending initiatives to each other; • review by AFCOS of the irregularity reports of MVH from the point of view of quality assurance to be sent to OLAF; • support provided by AFCOS to the use of the Irregularity Management System (IMS); • based on requests by AFCOS, provision of information and data by MVH in connection with investigations ordered by OLAF; • delivery of professional opinion at the request of MVH, drafting of recommendations and provision of experience by AFCOS; • possibility that AFCOS becomes familiar with the findings of external inspection bodies affecting MVH and associated with the subject-matter of the agreement; • provision of a possibility for the other party to participate in trainings, conferences and exchanges of experience serving to protect the EU’s financial interests; • mutual provision of information about the meetings of the Commission relating to the protection of the EU’s financial interests, which were attended by the representatives of the parties. 2(b) Cooperation with the entire office (NAV): The cooperation, on the basis of a written agreement (MVH doc. ID.: DSZ/75-2013 and DSZ/75-2013/1), covers the following areas regarding the irregularities found among the clients of MVH: • Debts owed to MVH as a support body for agricultural and rural development (aid used without authorisation and other payment obligations) are deemed public debts that may be collected as taxes, and they are collected by the taxation body of NAV on the basis of the data provided by MVH, with the exceptions defined in the relevant act. • In connection with the inspection of the export refund system of agricultural and food products and subsequent inspections, NAV conducts inspections and informs MVH about irregularities found during such inspections. MVH informs NAV about its measures taken in connection with the irregularities found. During cooperation, the following IT devices and tools are to be mentioned specifically: • Data is transferred between the parties electronically, according to the data structure laid down in the agreement. 3. Maintaining and improving efficient and successful cooperation between the institutional stakeholders concerned with respect to the prevention, detection, sanctioning and deterrence of fraud and corruption enjoys high priority; to this end, the institutional system for support policy and the investigating authority began consultations in the programming period of 2014 to 2020 in order to enter into a formal cooperation agreement. The drafting of a Cooperation Agreement between the Prime Minister’s Office and AFCOS began already in 2014 in order to ensure that in connection with development projects implemented with the co-financing of the EU, the anti-fraud awareness has the highest possible level in the institutional system for development policy in order to successfully prevent and to facilitate the detection of fraud affecting the budgets of Hungary and the EU. The stakeholders in the institutional system for support policy use the electronic system developed by the Commission, the IMS, for reporting irregularities. The IT system launched in 2014 and allowing access to EU tender funds in the period of 2014 to 2020, the Development Policy Database and Information System (FAIR), is an electronic administration interface for tenders, which helps bidders handle various tasks related to tenders and projects by means of a single customised interface. The greatest innovation of the system is that it is connected to a few authentic databases (of NAV, the Court of Registration and the Land Registry Office), thus using these databases, bidders can request the necessary documents electronically and automatically.

MT Although the Managing Authority is not the competent body at law to establish whether cases of suspected fraud are actually cases of established fraud, if during its management verifications it encounters ‘red flags’ or cases of irregularities which could potentially be tainted with fraud, the Managing Authority reports such instances to AFCOS (Malta). Thus, in bringing to the attention of AFCOS (Malta) the relevan