# Commission Implementing Regulation (EU) 2017/646 of 5 April 2017 amending Implementing Regulation (EU) 2015/378 laying down rules for the application of Regulation (EU) No 514/2014 of the European Parliament and of the Council with regard to the implementation of the annual clearance of accounts procedure and the implementation of the conformity clearance, Annex Extent: E+W+S+N.I. ‘ANNEX Key requirements of the management and control systems and their classification with regard to their effective functioning (referred to in Article 3a of Implementing Regulation (EU) 2015/378) Table 1 Key requirements Key requirements of the management and control systems Bodies/authorities concerned Scope 1 Adequate description and separation of functions and adequate systems for reporting and monitoring where the Responsible Authority entrusts execution of tasks to another body Responsible Authority/Delegated Authority Internal environment 2 Appropriate selection of projects Responsible Authority/Delegated Authority Control activities 3 Adequate information to beneficiaries, potential beneficiaries and the public Responsible Authority/Delegated Authority Internal information and communication 4 Adequate controls Responsible Authority/Delegated Authority Control activities 5 Effective systems and procedures to ensure that all the documents regarding expenditure and controls are held to ensure an adequate audit trail Responsible Authority/Delegated Authority Control activities 6 Reliable computerised systems for accounting, for the storage and transmission of financial data and data on indicators, for monitoring and for reporting Responsible Authority/Delegated Authority Control activities/Internal information and communication 7 Effective implementation of procedures for the prevention, detection and correction of irregularities including proportionate anti-fraud measures Responsible Authority/Delegated Authority Control activities 8 Appropriate procedures for drawing up the annual accounts, the management declaration and the annual summary of final audit reports and of controls carried out Responsible Authority/Delegated Authority Control activities 9 Appropriate and complete account of amounts recoverable, recovered and cancelled Responsible Authority/Delegated Authority Control activities 10 Adequate description and separation of functions, functional independence from the Responsible Authority and adequate systems for ensuring that any other body that carries out audits has the necessary functional independence and takes accounts of internationally accepted audit standards Audit Authority Internal environment 11 Adequate system audits Audit Authority Control activities 12 Adequate audits of expenditure Audit Authority Control activities 13 Adequate audits of accounts Audit Authority Control activities 14 Adequate procedures for providing reliable audit opinions and audit reports Audit Authority Control activities Table 2 Classification of key requirements for the management and control systems with regard to their functioning Category 1 Works well. No, or only minor improvement(s) needed Category 2 Works. Some improvement(s) needed Category 3 Works partially. Substantial improvements needed Category 4 Essentially does not work ’ --- Source: https://www.legislation.gov.uk/eur/2017/646/annex (the official version) Page: https://openlegislation.uk/eu-regulation-2017-646/annex Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.