FMO response to KEHI request for documentation 11 Sept 2014

Page 1

ICELAND LIECHTENSTEIN NORWAY

eea grants

norway grants

atlatszo.hu 2014.10.15. 1

REDUCING DISPARITIES | J!KENhIIttNiNG COOI'tKAHOM

Dr Gaal Szabolcs Barna Chairman G o v e r n m e n t C o n t r o l Office T a r t s a y V i l m o s utca 13 1126 Budapest Hungary 11 September, 2014

Dear D r Szabolcs B a r n a , Reference is m a d e t o y o u r l e t t e r d a t e d 4 A u g u s t 2 0 1 4 ( r e f . 2 3 - 4 6 3 / 3 9 4 / 2 0 1 4 ) , received on 12 A u g u s t 2 0 1 4 , a n d o u r r e p l y o f 2 1 A u g u s t 2 0 1 4 . I n y o u r l e t t e r i t is s t a t e d t h a t t h e G o v e r n m e n t Control Office o f H u n g a r y has been i n s t r u c t e d t o c a r r y o u t a c o m p r e h e n s i v e a u d i t w i t h respect t o t h e N o r w a y a n d EEA Grants for b o t h f i n a n c i n g periods, t h a t is, f o r 2 0 0 4 - 0 9 a n d 2 0 0 9 - 1 4 ; a n d y o u h a v e s u b m i t t e d t o t h e Financial M e c h a n i s m Office a r e q u e s t f o r a large n u m b e r o f d o c u m e n t s , also m a k i n g r e f e r e n c e t o t h e Public Access Policy o f t h e EEA a n d N o r w a y G r a n t s . For t h e f i n a n c i n g period 2 0 0 4 - 2 0 0 9 , y o u w i l l be a w a r e t h a t t h e N a t i o n a l Focal Point o f H u n g a r y w a s g i v e n r e s p o n s i b i l i t y w i t h r e g a r d financial c o n t r o l a n d a u d i t i n g , w i t h y o u r office being p a r t of t h e a u d i t i n g s e t - u p . Thus, w i t h r e g a r d t o t h e r e q u e s t f o r d o c u m e n t s t h a t y o u r office w i s h e s t o r e v i e w f o r t h e f i n a n c i n g period 2 0 0 4 - 2 0 0 9 , I w o u l d a s k t h a t y o u d i r e c t y o u r r e q u e s t t o t h e N a t i o n a l Focal Point a n d / o r o t h e r H u n g a r i a n a u t h o r i t i e s responsible f o r t h e use o f f u n d s , f i n a n c i a l c o n t r o l a n d a u d i t i n g . On 2 2 May 2 0 0 7 i t w a s a g r e e d t h a t t h e i n t e r m e d i a r y f o r t h e NGO Fund w a s t o be c o n t r a c t e d b y t h e Financial M e c h a n i s m Office. A n a u d i t w a s c a r r i e d o u t in accordance w i t h t h i s t r a n s f e r of r e s p o n s i b i l i t y , a n d t h e a u d i t r e p o r t has been released in line w i t h t h e Public Access Policy of t h e EEA G r a n t s a n d N o r w a y G r a n t s . For t h e f i n a n c i n g period 2 0 0 9 - 1 4 , t h e Beneficiary State's o r g a n s , including y o u r office, w e r e g i v e n no role w i t h respect t o i m p l e m e n t a t i o n o f p r o g r a m m e s o p e r a t e d b y t h e Financial Mechanism Office; t h i s includes t h e NGO P r o g r a m m e . T h e Prime Minister's Office w a s i n f o r m e d in May o f t h i s y e a r t h a t t h e Financial M e c h a n i s m Office shall this a u t u m n have t h e p r o g r a m m e a u d i t e d , in accordance w i t h t h e legal f r a m e w o r k a n d a g r e e d roles a n d r e s p o n s i b i l i t i e s . Despite o u r r e q u e s t s f o r t e r m i n a t i o n o f y o u r a u d i t , y o u r office h a s c o n t i n u e d t h e a u d i t w o r k , a n d n o w s t a t e t h e i n t e n t i o n t o t a k e f u r t h e r steps d i r e c t e d a g a i n s t o u r Fund O p e r a t o r . This is a c o n t i n u e d breach b y H u n g a r y of a g r e e m e n t s r e g u l a t i n g t h e EEA G r a n t s . You c a n be assured t h a t t h e Financial M e c h a n i s m Office, f o r b o t h f i n a n c i n g periods, p r o c u r e d a n d c o n t r a c t e d t h e Fund O p e r a t o r in accordance w i t h t h e r e l e v a n t rules a n d procedures. Y o u r r e q u e s t f o r d o c u m e n t s h a s been r e v i e w e d in accordance w i t h t h e Public Access Policy o f t h e EEA G r a n t s a n d N o r w a y G r a n t s , a n d t h e enclosed d o c u m e n t s listed below are b e i n g released t o y o u in line w i t h t h a t policy:

Financial Mechanism Office Rue Joseph I I , 12-16 - 1000 Brussels, Belgium • fmo@efta.int • www.eeagrants.org


atlatszo.hu 2014.10.15. 2

Financial Mechanism 2 0 0 4 - 2 0 0 9 • » » • » • • » •

A g r e e m e n t on t h e EEA G r a n t s A g r e e m e n t on t h e N o r w a y G r a n t s M e m o r a n d u m of U n d e r s t a n d i n g EEA G r a n t s Memorandum of Understanding Norway Grants Rules and p r o c e d u r e s f o r t h e i m p l e m e n t a t i o n o f t h e EEA Financial Mechanism Rules and p r o c e d u r e s f o r t h e i m p l e m e n t a t i o n o f t h e N o r w a y Financial Mechanism NGO P r o g r a m m e I m p l e m e n t a t i o n A g r e e m e n t NGO G r a n t s Guideline A u d i t Report of t h e NGO F u n d 1

Financial Mechanism 2 0 0 9 - 2 0 1 4 « • • • • • • •

A g r e e m e n t on t h e EEA G r a n t s and t h e N o r w a y G r a n t s M e m o r a n d u m of U n d e r s t a n d i n g EEA G r a n t s M e m o r a n d u m of U n d e r s t a n d i n g N o r w a y G r a n t s Regulation - EEA G r a n t s Regulation - N o r w a y G r a n t s NGO P r o g r a m m e I m p l e m e n t a t i o n A g r e e m e n t Rules on t h e a p p o i n t m e n t and c o n t r a c t i n g of f u n d o p e r a t o r s w h e n t h e FMO been e n t r u s t e d w i t h t h e o p e r a t i o n of a P r o g r a m m e Guideline f o r NGO p r o g r a m m e s

has

I t a k e t h i s o p p o r t u n i t y t o once a g a i n r e q u e s t a t e r m i n a t i o n of t h e a u d i t of t h e Financial M e c h a n i s m Office's Fund O p e r a t o r a n d c o n t r a c t e d p r o j e c t p r o m o t e r s being carried o u t by y o u r office. Sincerely,

Stine Andresen Director

The attached report starts from page 18 as pages 1 - 17 of the audit report concern NGO Funds in other beneficiary states. Due to confidentiality the names of evaluators have been deleted. However, that has no impact on substance and all the relevant information is still in there. 1

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