# Commission Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund, Annex IV: TECHNICAL PARAMETERS FOR RANDOM STATISTICAL SAMPLING PURSUANT TO ARTICLE 17 (SAMPLING)

Extent: E+W+S+N.I.

1.. A random statistical sampling method allows conclusions to be drawn from the results of audits of the sample on the overall expenditure from which the sample was taken, and hence provides evidence to obtain assurance on the functioning of the management and control systems.
2.. The assurance provided on the functioning of the systems is determined by the degree of confidence resulting from the conclusions of the system audits and from the audits of operations in the sample selected by a random statistical sampling method. In order to obtain a high level of assurance, that is, a reduced audit risk, the audit authority should combine the results of system audits and audits of operations. The audit authority first evaluates the reliability of the systems (high, average or low) taking into account the results of systems audits, so as to determine the technical parameters of the sampling, in particular the confidence level and the expected error rate. Member States may also use the results of the report on the compliance assessment pursuant to Article 71(2) of Regulation (EC) No 1083/2006. The combined level of assurance obtained from the systems audits and the audits of operations should be high. The confidence level used for sampling operations should not be less than 60 % with a maximum materiality level of 2 %. For a system evaluated as having low reliability, the confidence level used for sampling operations should not be below 90 %. The audit authority should describe in the annual control report the way assurance has been obtained.
3.. The reliability of management and control systems is determined using criteria established by the audit authority for systems audits, including a quantified assessment of all key elements of the systems and encompassing the main authorities and intermediate bodies participating in the management and control of the operational programme. A record of the assessments carried out is kept in the audit file.
4.. Where the management and control system is common to a number of similar operational programmes, for example for the same Fund, in accordance with Article 71(4) of Regulation (EC) No 1083/2006, a single sample guaranteeing the same technical parameters of confidence and materiality levels and taking into account the same expected rate of error, as indicated above, may be selected for all programmes together.
5.. Where the number of operations for a given reference year is insufficient to allow the use of a statistical method for the random selection of the sample, a non- statistical method may be used. The method applied must ensure a random selection of the sample. The size of the sample must be determined taking into account the level of assurance provided by the system, and must be sufficient to enable the audit authority to draw valid conclusions (for example low sampling risk) on the effective functioning of the system.

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Source: https://www.legislation.gov.uk/eur/2006/1828/annex/IV (the official version)
Page: https://openlegislation.uk/eu-regulation-2006-1828/annex-IV
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.