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Error Rate in EU Structural Funds Projects Decreased by Almost 4.6 times

Date

2016 03 30

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The error rate in EU-funded projects implemented in Lithuania is less than one half of one percent, what is considerably lower than the tolerable 2% materiality threshold set in EU regulations. Over five years the error rate in the aforementioned projects decreased from 1.93% in 2010 to 0.42% in 2014.

Consistently decreasing amounts of ineligible costs are also shown by the audit of the Operational Programmes for the 2007–2013 EU Structural Funds expenditure declared to the Commission in 2014 performed by the National Audit Office of the Republic of Lithuania. 

The Ministry of Finance notes that, as compared to other EU Member States, in Lithuania the error rate for the use of the 2007–2013 EU Structural Funds assistance is also low. For example, according to audits of the execution of the EU budget conducted by the European Court of Auditors, the total estimated error rate in economic, social and territorial cohesion areas in EU countries is 5.7%.

“Lithuania’s experience gained from implementation of EU projects is also reflected in the results – it is left less room for error, thus, the funds are invested more efficiently”, comments Minister of Finance Rimantas Šadžius.

According to the Minister, the error rate is decreasing, as project operator capacities increase, projects administering authorities properly monitor the implementation of projects; where appropriate, the requirements of legal acts are revised and improved; there is close cooperation between institutions involved in the management and control system.

The National Audit Office, having performed an audit, presented the opinion that during the period under audit the management and control system of the 2007–2013 Operational Programmes was in compliance with the requirements applicable in accordance with EU regulations and it functioned effectively, therefore, it could adequately ensure that the major transactions are legal and correct.

By using statistical methods, during the audit of expenditure in 2014, the National Audit Office estimated the probable error rate of 0.42%. Most of inaccuracies, like in the previous years, were related to the execution of public procurement procedures in projects.

The Ministry of Finance prepares for the closure of the 2007–2013 Operational Programmes in accordance with the approved action plan agreed with all administering authorities. It provides for specific actions required to report to the European Commission on the closure of the Operational Programmes by 31 March of the following year.

Currently, the maximum amount of 95% set in EU regulations has already been disbursed to Lithuania from the EU Structural Funds. The remaining 5% will be disbursed, when the European Commission assesses the closure documents of the Operational Programmes submitted by Lithuania.

Given that the system is functioning properly and the error rate is relatively low, it is planned to recover total amounts of EU funds allocated to Lithuania during the 2007–2013 period.

Public Relations Division
Phone: +370 52390 022
vrs@finmin.lt
www.finmin.lrv.lt

EU Structural Assistance Management Department
Phone:  +370 52199303
www.esinvesticijos.lt
esinvesticijos@finmin.lt