Reply: Analysis of the Management Declaration and Summary of Audits

Mr. Mark Schelfhout Your ref. European Commission Ares(2023)514621 – Directorate-General Economic and 25/07/2023 Financial Affairs Our ref. 24.08.2023 No 10-2/5515-1 Resources and performance management Control and evaluation ECFIN.R.4 [email protected] Reply: Analysis of the Management Declaration and Summary of Audits Dear Mr. Schelfhout, Thank you for the two observations from your letter dated 25th of July 2023 to the summary of audits added by us to the first and second requests for payment. As you mentioned, those observations will be considered for summary of audits in the future requests for payment. 1. We agree with the need of establishing a formal quantitative risk assessment framework for our future audits. This framework will be finalized and added to the audit strategy before starting the planning process for our next audit engagements. 2. We will continue working on the form for the Summary of Audits. It is understandable that information about checks on national rules should be more highlighted. By the time the next Summary of Audits is to be presented, the form will be updated to clearly outline checks on topics such as public procurement and state aid. In addition, we will add a section to describe the sampling procedure that led to the selection of items to be audited. Yours sincerely, (Signed digitally) Kaur Siruli Head of the Audit Authority Head of the Financial Control Department Ministry of Finance of the Republic of Estonia Mart Pechter +372 611 3152 [email protected] Suur-Ameerika 1 / 10122 Tallinn / Estonia / +372 611 3558 / [email protected] www.rahandusministeerium.ee / Reg. code: 70000272 Mr. Mark Schelfhout Your ref. European Commission Ares(2023)514621 – Directorate-General Economic and 25/07/2023 Financial Affairs Our ref. 24.08.2023 No 10-2/5515-1 Resources and performance management Control and evaluation ECFIN.R.4 [email protected] Reply: Analysis of the Management Declaration and Summary of Audits Dear Mr. Schelfhout, Thank you for the two observations from your letter dated 25th of July 2023 to the summary of audits added by us to the first and second requests for payment. As you mentioned, those observations will be considered for summary of audits in the future requests for payment. 1. We agree with the need of establishing a formal quantitative risk assessment framework for our future audits. This framework will be finalized and added to the audit strategy before starting the planning process for our next audit engagements. 2. We will continue working on the form for the Summary of Audits. It is understandable that information about checks on national rules should be more highlighted. By the time the next Summary of Audits is to be presented, the form will be updated to clearly outline checks on topics such as public procurement and state aid. In addition, we will add a section to describe the sampling procedure that led to the selection of items to be audited. Yours sincerely, (Signed digitally) Kaur Siruli Head of the Audit Authority Head of the Financial Control Department Ministry of Finance of the Republic of Estonia Mart Pechter +372 611 3152 [email protected] Suur-Ameerika 1 / 10122 Tallinn / Estonia / +372 611 3558 / [email protected] www.rahandusministeerium.ee / Reg. code: 70000272