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Annex II Key requirements of management and control systems and their classification with regard to their effective functioning referred to in Article 9

United Kingdom

Original text. Later amendments are not shown.

Table 1

Key requirements

Key requirements of management and control systemBodies/authorities concernedScope
1Adequate separation of functions and adequate systems for reporting and monitoring in cases where the responsible authority entrusts execution of tasks to another body.Managing authorityInternal control environment
2Appropriate selection of operations.Managing authorityManagement and control activities
3Adequate information to beneficiaries on applicable conditions for the selected operations.Managing authority
4Adequate management verifications.Managing authority
5Effective system in place to ensure that all documents regarding expenditure and audits are held to ensure an adequate audit trail.Managing authorityManagement and control activities/Monitoring
6Reliable system for collecting, recording and storing data for monitoring, evaluation, financial management, verification and audit purposes.Managing authority
7Effective implementation of proportionate anti-fraud measures.Managing authorityManagement and control activities
8Appropriate procedures for drawing up the management declaration and annual summary of final audit reports and of controls carried out.Managing authority
9Adequate separation of functions and adequate systems for reporting and monitoring in cases where the responsible authority entrusts execution of tasks to another body.Certifying authorityInternal control environment
10Appropriate procedures for drawing up and submitting payment applications.Certifying authorityManagement and control activities/Monitoring
11Appropriate computerised records of expenditure declared and of the corresponding public contribution are maintained.Certifying authorityManagement and control activities
12Appropriate and complete account of amounts recoverable, recovered and withdrawn.Certifying authority
13Appropriate procedures for drawing up and certifying the completeness, accuracy and veracity of the annual accounts.Certifying authority
14Adequate separation of functions and adequate systems for ensuring that any other body that carries out audits in accordance with the programme audit strategy has the necessary functional independence and takes account of internationally accepted audit standards.Audit authorityInternal control environment
15Adequate systems audits.Audit authorityControl activities
16Adequate audits of operations.Audit authority
17Adequate audits of accounts.Audit authority
18Adequate procedures for providing a reliable audit opinion and for preparing the annual control report.Audit authority

Table 2

Classification of key requirements for management and control systems with regard to their functioning

Category 1Works well. No, or only minor improvement(s) needed.
Category 2Works. Some improvement(s) needed.
Category 3Works partially. Substantial improvements needed.
Category 4Essentially does not work.