Control and opinion annual report

ANNUAL CONTROL REPORT 

The Annual Control Report is a document drafted annually for each operational programme where the Audit Authority presents to the Commission, in compliance with the provisions set by the Financial Regulation, a summary of the results of all the audit actions performed in relation with the expenditure declared to the EC during the previous accounting year. With the exception of the agricultural programmes/funds where the reporting of the audit results is part of the certification audit report, an annual control report shall be drawn up for all other operational programmes/funds.  

The annual control report is the basis for the audit opinion, issued annually by the Audit Authority. 

AUDIT OPINION

The audit opinion issued annually by the Audit Authority is based on the conclusions drawn from assessing the obtained audit evidence. The audit opinion covers the 3 elements of the assurance: annual accounts, legality and regularity of expenditure included in the accounts for the annual programme and the functioning of management and control system. 

There are 3 types of opinion foreseen:

1. Unqualified opinion (without reservation)

It corresponds to a high level of assurance based on the results of all audit actions performed during the reference period in the sense that the accounts give a true and accurate view, and that the expenditure included in the accounts submitted for reimbursement to the Commission is legal and regular, and that the established management and control systems are working properly. Also, the audit work performed raises no doubts concerning the statements made in the management declaration.

2. Qualified opinion (with reservations) with limited or significant impact 

It corresponds to a medium level of assurance based on results of all audit actions performed during the reference period in the sense that deficiencies with limited or significant impact have been identified either in relation with the regularity and legality of the expenditure included into the accounts and submitted to the Commission for reimbursement, or regarding the functioning of the management system. Also, the audit work performed raises no/some doubts concerning the statements made in the management declaration.

3. Adverse opinion (adverse)

It corresponds to a low level of assurance based on results of all audit actions performed during the reference period in the sense that significant deficiencies were identified in relation either with the expenditure included in the accounts, meaning that it does not provide a true and accurate view of the legality and regularity of the amounts asked for reimbursement from the Commission, or regarding the adequate functioning of the management and control system. Also, the audit work performed raises doubts concerning the statements made in the management declaration regarding a series of issues.