EU Funds Audits Directorate

EU Funds Audits Directorate

IAID is responsible for meeting the audit obligations of the approved Operational Programmes being implemented in Malta under the 2014-2020 programming period.  The following Operational Programmes (OPs) fall within the remit of the EU Funds Audits Directorate (EUFAD) within IAID:

  • OPI – Fostering a competitive and sustainable economy to meet our challenges
  • OPII – Investing in human capital to create more opportunities and promote the wellbeing of society
  • SME Initiative (SMI)
  • Food and/or Basic Material Assistance Operational Programme (FEAD)
  • European Maritime and Fisheries Fund (EMFF)
  • Italia-Malta Programme
  • Internal Security Fund (ISF)
  • Asylum, Migration and Integration Fund (AMIF)
  • Rural Development Programme (RDP)
  • The European Economic Area Financial Mechanism and Norwegian Financial Mechanism

European Structural and Investment Funds (ESIF) 2014-2020

The EU Funds Audits Directorate within the Internal Audit and Investigations Department is the designated Audit Authority (AA) for EU Funds in Malta in line with Article 123 (4) of the Regulation (EU) No. 1303/2013.  

Functions of the Audit Authority

  • Designation procedure

Article 124 of Regulation (EU) No. 1303/2013 lays down the procedures for the designation of the managing authority and the certifying authority.  The designations are based on a report and an opinion of an independent audit body that assesses the fulfilment by the authorities of the criteria relating to the internal control environment, risk management, management and control activities, and monitoring.  The AA was appointed as the independent audit body to carry out the designation of the Managing Authorities and the Certifying Authority in Malta.  

  • Audit strategy

Paragraph 4 of Article 127 of Regulation (EU) No. 1303/2013 stipulates that the AA is responsible to update annually the Audit Strategy for performance of audits, which strategy was prepared by the AA following the adoption of the respective OP.  

  • System Audits and Audits of operations

As stipulated in Article 127 of Regulation (EU) No. 1303/2013, the AA carries out audits on the proper functioning of the management and control system of the OP and on an appropriate sample of operations on the basis of the declared expenditure.

  • Draw up an Audit Opinion and a Control Report setting out the main findings of the audits
  • Audits on accounts

The audit is to cover all the provisions of Article 137 of Regulation (EU) No. 1303/2013.  The AA is to provide reasonable assurance on amounts declared in the accounts - completeness, accuracy and veracity.  

Audit of EU Agricultural Funds

The IAID plays a threefold role with respect to agricultural funds:

  • Certification Body
  • Special Department responsible for carrying out detailed scrutinies on selected EAGF non-IACS undertakings
  • Accreditation Audit Body​

Agricultural funds from the European Union are managed by the Paying Agency within MESDC.

I. Certification Body

The IAID as the Certification Body with respect to EAGF and EAFRD funds, is bound by Articles 9 and 51 of Regulation (EU) No 1306/2013 of the Eurpean Parliament and of the Council, and Articles 5 to 7 and 29 to 33 of Commission Implementing Regulation (EU) No 908/2014 to carry out an audit and express an opinion as to whether the annual accounts of the Maltese ARPA presented for clearance to the Commission give a true, complete, and accurate view, and that the internal control systems have operated satisfactorily throughout the certified period.  

II. Scrutiny on transactions forming part of the European Agricultural Guarantee Fund – Non-IACS Section

The IAID is also the designated body responsible for conducting the scrutiny on transactions forming part of the system of financing by the Non-IACS Section of the European Agricultural Guarantee Fund (EAGF) and in this regard it is the designated Special Department in terms of Articles 84 to 86 of Regulation (EU) No 1306/2013 and Annex II, Part I, section 4 and Annex IX, section 1 of Commission Regulation (EC) No 40/2006.  Various responsibilities emerge from these regulations:

  • Risk assessment
  • Scrutiny programme
  • Scrutiny report - major findings to be included in an annual report

III. Accreditation of the Paying Agency – Article 1 of Commission Implementing Regulation (EU) No 908/2014 and Article 1 of Annex I of Commission Delegated Regulation (EU) No 907/2014

The Competent Authority within the MEAA engages IAID as an independent body having the necessary technical expertise in order to act as the Accreditation Audit Body.  In this regard, on the basis of the IAID's opinion, the Competent Authority decides whether to accredit the Paying Agency. The audit is based on the following key criteria:

  • ​​The authorisation and execution of payments
  • The safeguarding of the Community budget
  • The security of the information systems
  • The maintenance of the accounting records
  • The division of duties and the adequacy of internal controls

Other Programmes

The EUFAD liaise with various Groups of Auditors of other programmes which involve the participation of Malta and various other EU Member States, including:​​

  • Interreg Europe Programmes (2014-2020)
  • INTERACT III Programme (2014-2020)
  • URBACT III Programme (2014-2020)
  • Med Programme (2014-2020)