Danger: EU Auditors at Work – You may be selected!

Did you know that between 5% and 10% of projects in the UK that have received EU grant aid will be targeted for an audit?  Projects are usually selected at random for a visit by a team from either the UK Managing Authority or the EU authorities themselves.

This high selection rate and the involvement of several potential teams of auditors in the process means that an organisation with a large number of EU funded projects may also be subjected to a number of visits in the course of a year.  Further, organisations which are managing global grants, venture capital funds with ERDF inclusion or special Sectoral funds for tourism etc. must bear in mind that they are the accountable body - not the actual recipient of the grant!

The audit process will be rigorous and the findings can be far-reaching and damaging.  For example, a recent regional EU audit in the UK ruled that over 33% of expenditure was potentially ineligible on a variety of grounds.  The auditors were  also  critical of administrative procedures, failure to comply with EU rules and so on.

In yet another region the Managing Authority recently circulated a warning that it had been advised by the Verification and Compliance Team that there had been several instances of local councils not retaining appropriate records and thus hampering a full article 10 check.  The letter concluded with the stern warning that "If a project sponsor is found to have ignored the National Rules on this issue they may be asked to quantify the full cost of any potential claw back across all their projects" .

Therefore an adverse audit report can seriously damage the stability and reputation of any organisation – whether private, public or third sector!

The question therefore in terms of navigating the audit trail is: “Do you opt for fire fighting or fire prevention?”

The best choice is the obvious one – prevention is always the less painful route, and Euro Access offers a comprehensive and cost effective service designed to help you to pro-actively negotiate the audit experience and pit falls successfully. 

Developed during 20 years of active involvement in EU funding by the Euro Access Team, and successfully road tested in numerous audit experiences, our service covers everything from review and health check of existing systems and projects, advice on the necessary administrative procedures, right through to preparing for and surviving the audit visit.

For more information on how we can deliver long-term benefits to your organisation and help you safeguard hard won  EU funding contact Euro Access now.