EU Funding: Effective Controls Key to Ensuring Integrity

The European Union (EU) has put in place measures to prevent and detect fraud in its funding programs. One of the key elements is effective controls, which are essential for ensuring the integrity of EU funding.

Proportionate Anti-Fraud Measures

In line with Annex I(2)(H) of Commission Delegated Regulation (EU) No 1042/2014, the Responsible Authority (RA) has implemented proportionate anti-fraud measures to prevent and detect fraud. The RA conducts a comprehensive fraud risk assessment periodically or whenever significant changes are made to the management and control system.

Reporting Suspected Fraud

When any relevant authority or beneficiary suspects fraud, they must notify their immediate superior. The official receiving the report must immediately relay the message to the head of the responsible authority. Timeliness is crucial in addressing suspected cases of fraud.

Investigation and Prosecution

The body reporting the suspected fraud acts with caution and informs the Permanent Secretary, head of the beneficiary organization, and the Internal Audit and Investigations Department (IAID) in writing. IAID investigates the matter and, if necessary, forwards the case to the Attorney General for prosecution.

Reparation and Learning Lessons

If criminal proceedings are required, the responsible authority recommends withdrawing suspicious payments from certification already carried out. The RA/FCU shares case studies of lessons learnt and best practices with staff and potential beneficiaries, and regular reviews take place at meetings of the Data Intelligence Network.

Annual Control Report

The Audit Authority includes a reference to suspected fraud in its Annual Control Report.

Conclusion

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Effective controls are essential for ensuring the integrity of EU funding. The RA is committed to leading by example, ensuring that EU money reaches the right beneficiaries and is spent on purposes for which it is intended. By implementing effective controls, the RA aims to improve budget efficiency from the very beginning of the chain till beneficiaries of EU funds.

Sources

• Commission Delegated Regulation (EU) No 1042/2014
• Internal Audit and Financial Investigations Act (Chapter 461 of the Laws of Malta)
• Article 16 of the Internal Audit and Financial Investigations Act