Anti-fraud strategies for Managing Authorities

December, 15, 2014

This is a short summary of European Commissions’ draft ‘Guidance note on fraud risk assessment and effective and proportionate anti-fraud measures’. In the document Commission presents roadmap with main steps on defining anti-fraud strategies for Managing Authority as well as several practical tools for the fraud risk assessment.

The Commission recommends that managing authorities adopt a proactive, structured and targeted approach to managing the risk of fraud. All programme authorities should be committed to zero tolerance to fraud, starting with the adoption of the right tone from the top!

A well-targeted fraud risk assessment, combined with a clearly communicated commitment to combat fraud can send a clear message to potential fraudsters. Effectively implemented robust control systems can considerably reduce the fraud risk but cannot completely eliminate the risk of fraud occurring or remaining undetected.

The Commission highlights that overall objective should be cost-effective fraud risk management and the implementation of proportionate anti-fraud measures. Managing authorities have a responsibility to demonstrate that attempts at  defrauding the EU budget is unacceptable and will not be tolerated. Dealing with fraud, and its causes and consequences, is a significant challenge to any management, as fraud is designed to avoid detection.

The establishment and promotion of clear reporting mechanisms is a key element of prevention, as well as detection. Any such mechanisms should facilitate the reporting of both suspicions of fraud and also control weaknesses that may increase the MA’s susceptibility to fraud. MAs should have clear reporting mechanisms ensuring sufficient coordination on anti-fraud matters with the audit authority and competent investigative authorities in the Member State, including anti-corruption authorities.

Please find full European Commissions’ draft Guidance Note here – http://ec.europa.eu/regional_policy/what/future/pdf/preparation/guidance_fraud_risk_assessment.pdf

 

With kind regards,

Concordis.eu team