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Terms of Reference for Pillar Assessments

Introduction

The Financial Regulation ('FR') applicable to the General Budget of the European Union ('EU') sets out that under indirect management the Commission can entrust budget implementation tasks to certain countries, organisations and bodies (further referred to as 'Entities')

These Entities must meet requirements with regard to seven 'Pillars' relating to the internal control system, the accounting system, an independent external audit and rules and procedures for providing financing from EU funds through grants, procurement and financial instruments and Sub-Delegation.

Hence, Entities wishing to work with EU funds under the indirect management mode must therefore be made subject to a comprehensive Pillars Assessment.

Based on the results of the Pillars Assessment the Commission will decide whether it can entrust budget implementation tasks to the Entity and whether it can conclude specific agreements (i.e. Indirect Management Delegation Agreements) with the Entity.

Terms of Reference

The Commission has adopted terms of reference ('ToR') for Pillar Assessments. These ToR consist of a basic document which sets out the main conditions (i.e. objectives, standards and requirements for the auditor, scope and assessment procedures) and five technical annexes including an Assessment Questionnaire and Criteria and a template for a Pillars Assessment Report.

Pillar Assessments may be contracted and managed by Commission services or by an organisation requesting to be entrusted with implementation of the EU budget under indirect management.

For this purpose two sets of ToR are available for Pillar Assessments:

  • contracted by the European Commission; and
  • contracted by an Entity requesting to be entrusted with implementation of the EU budget under indirect management.

Pillar Assessments contracted by the European Commission

The use of the ToR by Commission services and EU Delegations is compulsory.

Reference material

Pillars Assessments contracted by Entities requesting to be entrusted with implementation of the EU budget under indirect management

In accordance with EuropeAid's strategy Pillar Assessments may also be contracted and managed by Entities requesting to be entrusted with implementation of the EU budget under indirect management.

In such cases these Entities must contract independent external auditors who meet requirements set by the Commission and on the basis of the ToR provided below. The use of these ToR is compulsory.

Reference material

A guidance note on the management of these Pillar Assessments is at the disposal of Entities requesting to be entrusted with implementation of the EU Budget under Indirect Management. The purpose of this paper is to provide guidance and support for the management of Pillars Assessments contracted by Entities requesting to be entrusted with implementation of the EU Budget under Indirect Management.

Last update: 18/11/2013 | Top