Welcome to the website of the Directorate General for Audit of European Funds!

The Directorate General for Audit of European Funds (hereinafter: DGAEF, Directorate General) was established on 1 July 2010 as an autonomously operating central budgetary organisation within the chapter of the ministry responsible for public finances. The organisation is headed by the Director General; the employees of the Directorate General are government officials. The main task of DGAEF is to act as the audit authority in Hungary for operational programmes and cooperation programmes financed from European Union funds, and to implement related audit activities. Furthermore, DGAEF also performs audit functions in relation to other international funds received by Hungary.

As the audit authority, DGAEF is functionally independent from the managing authority, the intermediate bodies, the certifying authority and no conflict of interest shall arise between beneficiaries and the staff of DGAEF. When planning its activity, selecting methods and drawing the conclusions on audits, the Directorate General acts independently, it compiles the reports on the findings, conclusions and recommendations free from outside influence.

Government decree No. 210/2010. (VI.30) provides the detailed rules on the legal status, organization, tasks and procedures of the Directorate General. The Organizational and Operational Rules of DGAEF are stated in Order of the Minister of Finance No 9/2019. (VI. 28.).

http://njt.hu/cgi_bin/njt_doc.cgi?docid=133387.353969

http://njt.hu/cgi_bin/njt_doc.cgi?docid=214794.369753

Introduction and mission statement

The mission of the Directorate General as the Hungarian Audit Authority for European Union funds is the following:

To ensure the effective and regular use of funds received from the European Union budget, thereby protecting the financial interests of the European Union and also of Hungary by promoting the efficient use and adequate absorption of funds.

To achieve this, FIRMNESS and EFFECTIVENESS is a must.

Firmness is crucial: on the one hand, the beneficiaries and the implementing structures should be aware of the expectation of regularity besides the effective use of funds; on the other hand, the Audit Authority should be firm and clear in its conclusions and opinions. Consistency and reliability of audit procedures and results are further requirements in this respect.

There is a two-fold requirement of effectiveness:

The operational effectiveness of DGAEF is ensured by the continuous review of the working methods of the organisation.

Effectiveness is also of utmost importance when examining the effectiveness and efficiency of the use of European Union funds. The audits are carried out based on a tailor-made methodology developed taking into account the methodological guidelines of the European Commission. Besides regularity increasing attention is paid to the audit of effectiveness and the achievement of real results and overall impact.

Methodological reforms have to be implemented on an ongoing basis while ensuring continuity in the performance of audit tasks.

The audit work has to be characterised by professional excellence and performed by highly qualified and well prepared auditors. 

Proactive approach is required in order to enable the early identification of risks.

In the framework of its working relationships, the Directorate

General:

1. cooperates  – within the defined framework – with the other members of the institutional system while observing its main responsibility to formulate its opinions INDEPENDENTLY and OBJECTIVELY;

2. maintains an active partnership with the audit authorities of other member states in order to share and adopt the best practices.

3. is in regular contact with the European Commission:

A) to comply with legal provisions.

B) to be able to accomplish tasks according to the level expected by the EU.

C) A medium-term, very important objective of the Directorate General is to achieve recognition as a professional member state Audit Authority that contributes to the reliability and success of the institutions

As an organisation/employer the Directorate General:

1. demands the following of its staff of government officials :

-professional competence,

-proficient use of the Hungarian language,

-ability to work independently and to participate in teamwork,

-ability to work in a disciplined and dedicated way,

-integrity, being free from corruption and bias,

-objectivity, professional scepticism,

-compliance with the code of ethics,

-economy -  protection of the resources of the Directorate General

-protection of the environment (within the limitation of the obligations for maintaining adequate documentary records).

2. offers the following:

-good relations within the organization based on partnership with both leaders and colleagues,

-motivational and supportive working environment,

-professionalism and continuous professional development,

-regular training courses,

-various forms of support for a healthy lifestyle, sport facilities,

-special offers for cultural events and programmes,

-equal opportunities.

Tasks

The Directorate General performs Audit Authority tasks in the programming period of 2014-2020 related to the European Regional Development Fund, the European Social Fund, the Cohesion Fund, Fund for European Aid to the Most Deprived, and the European Maritime and Fisheries Fund covering the following operational programmes

Economic Development and Innovation Operational Programme (financed by ERDF/ESF/YEI)

Public Administration and Civil Service Development Operational Programme (financed by ESF/ERDF/CF)

Integrated Transport Operational Programme (financed by ERDF/CF)

Environmental and Energy Efficiency Operational Programme (financed by ERDF/CF)

Human Resources Development Operational Programme (financed by ESF/ERDF)

Territorial and settlement Development Operational Programme (financed by ERDF/ESF)

Competitive Central-Hungary Operational Programme (financed by ERDF/ESF)

Fund For European Aid To The Most Deprived Operative Programme (financed by FEAD)

Hungarian Fisheries Operational Programme (financed by EMFF)

Asylum, Migration and Integration Fund

Internal Security Fund

Danube Transnational Programme

Interreg V-A Slovakia-Hungary Co-operation Programme,

Interreg V-A Hungary-Croatia Co-operation Programme

Interreg-IPA Hungary-Serbia IPA (Instrument for Pre-accession Assistance) Cross-border Co-operation Programme

Hungary-Slovakia-Romania-Ukraine ENI (European Neighbourhood Instrument), Cross-border Co-operation Programme

Connecting Europe Facility

The Directorate-General also carries out specific audit tasks related to other EU and international grants:

INTERREG III Community Initiative Programmes

European Territorial Cooperation Programme

Norwegian Financial Mechanism and EEA Financial Mechanism

Swiss–Hungarian Cooperation Programme

European Union Solidarity Fund

The tasks of Directorate General also include:

-preparation and regular review of the audit strategy and annual plans,

-performing

-system audits

-audits on operation

-audit of accounts

-audits targeted to specific thematic areas

-verification of the management declaration and annual summary

-compilation of annual control reports and issuance of annual opinions

-issuance of closure declarations.


Legal framework

Major EU legislation

Regulation (EU) No 1300/2013 of the European Parliament and of the Council on the Cohesion Fund and repealing Council Regulation (EC) No 1084/2006

Regulation (EU) No 1301/2013 of the European Parliament and of the Council on the European Regional Development Fund and on specific provisions concerning the Investment for growth and jobs goal and repealing Regulation (EC) No 1080/2006

Regulation (EU) No 1302/2013 of the European Parliament and of the Council amending Regulation (EC) No 1082/2006 on a European grouping of territorial cooperation (EGTC) as regards the clarification, simplification and improvement of the establishment and functioning of such groupings

Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006

Regulation (EU) No 1304/2013 of the European Parliament and of the Council on the European Social Fund and repealing Council Regulation (EC) No 1081/2006

Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived

Commission Delegated Regulation (EU) No 480/2014 supplementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund

Regulation (EU) No 508/2014 of the European Parliament and of the Council on the European Maritime and Fisheries Fund and repealing Council Regulations (EC) No 2328/2003, (EC) No 861/2006, (EC) No 1198/2006 and (EC) No 791/2007 and Regulation (EU) No 1255/2011 of the European Parliament and of the Council

Commission Delegated Regulation (EU) No 1255/2014 supplementing Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived by laying down the content of the annual and final implementation reports, including the list of common indicators

Commission Implementing Regulation (EU) 2015/207 laying down detailed rules implementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council as regards the models for the progress report, submission of the information on a major project, the joint action plan, the implementation reports for the Investment for growth and jobs goal, the management declaration, the audit strategy, the audit opinion and the annual control report and the methodology for carrying out the cost-benefit analysis and pursuant to Regulation (EU) No 1299/2013 of the European Parliament and of the Council as regards the model for the implementation reports for the European territorial cooperation goal

Commission Implementing Regulation (EU) No 1011/2014 laying down detailed rules for implementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council as regards the models for submission of certain information to the Commission and the detailed rules concerning the exchanges of information between beneficiaries and managing authorities, certifying authorities, audit authorities and intermediate bodies

Regulation (EU) No 1299/2013 of the European Parliament and of the Council on specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal

Commission Regulation (EU) No 1407/2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid Text with EEA relevance

Commission Regulation (EU) No 231/2014 of the European Parliament and of the Council - establishing an Instrument for Pre-accession Assistance (IPA II)

Commission Implementing Regulation (EU) No 447/2014 on the specific rules for implementing Regulation (EU) No 231/2014 of the European Parliament and of the Council establishing an Instrument for Pre-accession assistance (IPA II)

Commission Delegated Regulation (EU) No 481/2014 supplementing Regulation (EU) No 1299/2013 of the European Parliament and of the Council with regard to specific rules on eligibility of expenditure for cooperation programmes

Regulation (EU) No 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC 

Regulation (EU) No 514/2014 of the European Parliament and of the Council laying down general provisions on the Asylum, Migration and Integration Fund and on the instrument for financial support for police cooperation, preventing and combating crime, and crisis management

Commission Delegated Regulation (EU) No 1042/2014 of 25 July 2014 supplementing Regulation (EU) No 514/2014 with regard to the designation and management and control responsibilities of Responsible Authorities and with regard to status and obligations of Audit Authorities

Regulation (EU) No 1316/2013 of the European Parliament and of the Council establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 (Text with EEA relevance)

Directive 2014/24/EU of the European Parliament and of the Council on public procurement and repealing Directive 2004/18/EC Text with EEA relevance

Commission Decision No C(2019) 3452 final of 14.5.2019 laying down the guidelines for determining financial corrections to be made to expenditure financed by the Union for non-compliance with the applicable rules on public procurement


Key national legislation affecting the work of DGAEF:

Acts

Act LVII (57) of 1996 on the Prohibition of Unfair Trading Practices and Unfair Competition

Act LXXVIII (78) of 1997 on the Formation and Protection of the Built Environment

Act C of 2000 (100) on Accounting

Act CL (150) of 2017 on the Rules of Taxation

Act CXXVII (127) of 2007 on Value Added Tax

Act CXII (112) of 2011 on the Right of Informational Self

Determination and on Freedom of Information

Act CXCV (195) of 2011on Public Finance

 Act C (100) of 2012 on the Criminal Code

Act V (5) of 2013 on the Civil Code

Act CXLIII (143) of 2015 on Public Procurement

Government decrees

Government Decree no. 335/2005. (XII.29.) on the Common Provisions of Document Management in Bodies of Public Administration

Government Decree no. 37/2011. (III.22.) on the procedures relating to State aid measures and the regional aid map

Government Decree no. 368/2011. (XII. 31.) on the Implementation of the Act on Public Finances

Government Decree no. 370/2011. (XII. 31.) on the Internal Control System and Internal Audits of Budgetary Organisations

Government Decree 60/2014. (III.6) on the central monitoring and registration of the development from support

Government Decree no. 272/2014. (XI. 5.) on the Rules of the Use of Funds from Certain European Union Funds in the 2014-2020 Programming Period

Government Decree no. 135/2015. (VI.2) on the use of grants from the Internal Security Fund and the Asylum, Migration and Integration Fund for the 2014-2020 programming period

Government Decree No 126/2016. (VI.7) on the implementation of cross-border cooperation programmes of the European Regional Development Fund and the Instrument for Pre-Accession Assistance for the 2014-2020 programming period

Government Decree No 396/2015. (XII. 12.) on the implementation of transnational and interregional cooperation programs in the framework of the European territorial cooperation objective for the 2014-2020 programming period

Government Decree no. 75/2016. (IV.5) on the use of resources of Connecting Europe Facility


European Commission Guidelines

Link: http://ec.europa.eu/regional_policy/en/information/legislation/guidance/

EGESIF_14-0013-final Guidance for Member States on Designation Procedure

EGESIF 14-0010 – Guidelines on a common methodology for the assessment of management and control systems in the Member States

EGESIF_14-0011-02 Guidance on Audit Strategy

EGESIF_14-0012_02 - Guidance on Management verification

EGESIF_14-0017 - Guidance on Simplified Cost Options

EGESIF_15-0002-04 Guidance on the Annual Control Report and Audit Opinion

EGESIF_15-0007-02 Updated Guidance on treatment of errors disclosed in the annual control reports

EGESIF_15-0008-05 Guidance for Member States on the Drawing of Management Declaration and Annual Summary

EGESIF_15-0016-04 Guidance on Audit of Accounts

EGESIF_15-0017-04 Guidance on Amounts Withdrawn, Recovered, to be Recovered and Irrecoverable Amountsú

EGESIF_15-0018-04 Guidance on Preparation, Examination and Acceptance of Accounts

EGESIF_16-0014-01 Guidance on Sampling Methods

EGESIF_14-0038-03 - Financial Instruments in ESIF Programme 2014-2020

EGESIF_14-0021-00 Fraud Risk Assessment and Effective and Proportionate Anti-Fraud Measures

2006/C 179/02 Commission Interpretative Communication on the Community law applicable to contract awards not or not fully subject to the provisions of the Public Procurement Directives

COCOF 09/0002/01 - Guidance Note on the Concept of Reliance on the Work of Other Auditors

COCOF 09/0003/00-EN - Information Note on Fraud Indicators for ERDF, ESF and CF