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Principles
The aim of clearing is to give the auditee the opportunity to comment on the content of our draft reports and evidence underlying them, so helping to ensure they are accurate, fair and balanced when published.
As far as possible, we assure ourselves of the veracity of the evidence collected from the auditee bodies concerned, as the task progresses.
We clear by providing auditees with a draft of the report that includes the proposed conclusions and recommendations, and invite them to comment on the content and any underlying evidence.
We consider the points raised by the auditees during clearing, when finalising the text in preparation for chamber approval.
We only disclose personal data when necessary. If so, this is done in compliance with the data protection rules .
We maintain an [link title="open%2C%20respectful%20and%20professional%20approach" link="%2Faware%2FGAP%2FPages%2FCommunication-in-audit.aspx" /]
during the entire clearing process.
By analogy with performance audits, we clear [link title="reviews" link="%2Faware%2Freview%2FPages%2Fdefault.aspx" /]
through the draft report
Instructions
Content of the clearing document
Clearing on the basis of the draft report
Prepare a version of the draft report that is mature enough to use as the basis for clearing. Before doing so, ensure that you have:
- completed and documented the
[link title="process%20of%20collecting%20and%20analysing%20evidence" link="%2Faware%2FPA%2FPages%2FExamination%2FDeriving-audit-findings.aspx" /]
from auditees, and if necessary verifying it directly with them;
- completed the
[link title="drawing%20conclusions" link="%2Faware%2FPA%2FPages%2FReporting%2FDrawing-conclusions.aspx" /]
process;
- used the template in Eurolook for draft reports; and
- followed the guidance on report
[link title="style" link="%2Faware%2FGAP%2FPages%2FReport-style.aspx" /]
.
When the draft report concerns more than one auditee body, either prepare separate extracts of the draft report for each auditee, or a single document with sections relating to auditees other than the intended recipient anonymised. This is not necessary for different DGs of the Commission. When clearing on the basis of extracts of the draft report, provide any supplementary information necessary for each auditee to understand the issue and the context.
In order to provide the auditee with the full context, include the proposed [link title="conclusions" link="%2Faware%2FPA%2FPages%2FReporting%2FConclusions.aspx" /]
and [link title="recommendations" link="%2Faware%2FGAP%2FPages%2FRecommendations.aspx" /]
in the version of the draft report prepared for clearing. If necessary from a timing perspective, communicate the report observations first, followed by the draft conclusions and recommendations when available.[link title="" link="%2Faware%2FGAP%2FPages%2FRecommendations-to-Member-States.aspx" /]
It is not necessary to present at the clearing phase the executive summary, abbreviations, and glossary.
Do not disclose personal data in the clearing document, such as names of ECA auditors or staff from other organisations who accompanied the audit visit, or names of auditees or beneficiaries. Instead, use a coded or anonymised form of identification. If it is necessary to disclose personal data, make sure to comply with the data protection rules .
Set out relevant instructions for auditees in standard cover notes or emails (available in Eurolook), leaving the clearing document to focus on the intended text of the draft report/findings (as relevant) only. To facilitate the reply process, offer to provide to auditees a version of the clearing document, which includes references to sources of data, for example in charts and tables (including a link if possible), or explanations of how we calculated the figures.
Clearing on the basis of individual findings
There may be exceptional cases where you decide not to clear on the basis of the draft report, but by setting out the individual [link title="findings" link="%2Faware%2FPA%2FPages%2FExamination%2FDeriving-audit-findings.aspx" /]
. Indicate your intention to follow this approach in the [link title="task%20plan" link="%2Faware%2FPA%2FPages%2FPlanning%2Ftask-plan.aspx%23Resources-and-timetable" /]
. Situations where you can opt for this approach include:
- spending under shared management. In this case, use the draft report to clear with the Commission and send individual findings to the member state(s). If you do not explain clearly in your overview of findings the context in which the member state could be mentioned in the intended draft report, consider communicating the relevant extracts of the draft report as a second step;
- when the subject matter is very technical; or
- situations which the resulting report does not have the usual structure (such as follow-up reports taking a tabular form).
Do not disclose personal data. Set out relevant instructions for auditees in standard cover notes or emails (for details see above).
Clearing procedures
Plan the clearing procedures in advance, including the auditees directly concerned, and identify the entity best placed to reply or to [link title="coordinate" link="%2Faware%2FGAP%2FPages%2FNotification.aspx%23Establish-the-details-of-the-planned-visit-or-meeting" /]
the replies if there are several auditees. Seek to [link title="confirm%20these%20details" link="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Plan-communication-arrangements-and-other-practicalities" /]
with the auditees in the planning phase or early in the audit process.
Clearing can be organised in the following ways:
- exchange of written correspondence on both sides. Send the clearing document (draft report or other format) accompanied by a cover note (available in Eurolook) with relevant instructions regarding by which date a written reply should be provided; or
- during online or face-to-face meetings. Share the clearing document in advance, record the outcome of the meeting (for example in minutes, or using a three-column table), and provide a copy of this record to the auditee for information.
[link title="Document" link="%2Faware%2FGAP%2FPages%2FDocumenting-an-audit.aspx" /]
the clearing process by saving in Assyst the documents, emails, minutes of meetings and clearing documents sent to auditees, the replies received, their analysis and your replies to the auditees.
Language
For clearing with the Commission and other [a-glossary term="EU%20bodies"]EU bodies[/a-glossary]
, use the ECA working languages (English or French).
For clearing at member state level, send both the clearing document and the corresponding cover note translated into the language of the member state. Send an advance copy of the clearing document to member states in the ECA working language to give the national authorities time to initiate the reply process.
Addressee and signature
Address the draft report to officials with authority to respond on behalf of the auditee, with a corresponding level of (digital) signature at the ECA. In this context, bear in mind the following:
- reporting members must sign the cover note when addressing clearing documents to a member of an EU institution/body, head or member of supreme audit institution (SAI) , or a minister;
- respect administrative practices and customs in member states, the nature of the issues sent for clearing, and their perceived significance.
Regardless of who signs the document, the reporting member must be informed of the content and messages in the clearing document. For member states, date and sign the translated version of the communication.
Respect the SAI’s preference regarding their role in the audit:
- if the SAI coordinates the reply process, address the clearing document formally to the head of the SAI and ask the reporting member to sign the cover note;
- if the SAI is not actively involved in coordinating the reply, address the clearing document to the relevant national authority, and copy the SAI liaison officer into the communication with the national authority concerned.
Send a copy of all relevant clearing documents, the corresponding replies and analyses (both in the working language and the translated version) to DG BUDG. The file sharing process is automated when you use CLEAR : when uploading the document, tick the button “Notify DG BUDG”.
Provide a copy of clearing documents sent to member states to the Commission DG responsible.
List all addressees (including those in copy) in the cover note of the clearing document.
Transmission
Send clearing documents and all related correspondence using secure electronic transmission. The primary tool for the transmission and storage of clearing documents is CLEAR. It generates emails with Ecafiles links and gives the sender the possibility to edit the message. It is not sufficiently secure to send clearing documents by simple email.
Require auditees to send their replies and other documents electronically in a secure manner (e.g. through Ecafiles).
Contact the CLEAR support team for assistance in using CLEAR and the Information Security Officer for advice on transmitting documents containing sensitive or classified information.
Auditee's reply
Include instructions on when and how to reply in the cover note or e-mail used to send the clearing document. Use the standard template (available in Eurolook) to ensure that all relevant elements are included.
You can choose between two main approaches:
- invite the recipient to respond only if they wish to contest or comment on elements of the text. If adopting this approach, explain it in the instructions to the auditee (for example "In the absence of a reply on your part within the deadline indicated below, we will consider that you agree with the text/finding you have not contested and the elements that underlie it"). Remind the auditee when the deadline approaches, and if there is no reply by the deadline, assume that the recipient agrees; or
- ask the auditees to state clearly whether they agree, disagree or partially agree with the text (paragraph by paragraph) and to provide further comments and information, as they deem necessary. In such a case it is good practice to use a tabular format (such as a three-column table).
If you prefer that the auditee includes comments on or proposes changes to the text in track change mode, provide the clearing document in an editable format.
Consider providing the text as a three-column table if you prefer to obtain structured feedback (one column for our text, second column for the replies, and a third column for the analysis of the reply and/ or the final text). Use the relevant tool in Eurolook to convert your document.
We do not provide copies of auditee replies to the SAI if the member state is not involved in the management of the funds audited or – when auditing funds under shared management audit – if the SAI does not coordinate the audit. If - in the latter case - the SAI requests a copy of the replies to a clearing document, refer them to the auditee. The standard cover note we send to member states includes a sentence encouraging auditees to share correspondence with the ECA and with the SAI. Be aware of the need to handle such situations carefully and on a case by case basis.
Analysis of reply
Consider carefully and document in Assyst your analysis of the replies received. The options are:
- to maintain the text/finding if the auditee’s views are very similar to our views, they did not disagree or additional elements provided do not lead us to amend our finding;
- to modify the text/finding, if the auditee provided additional information; or
- to drop the text/finding, if the information provided by the auditee justifies the situation described.
Identify and analyse issues which may be controversial during the adversarial procedure with the Commission.
Communicate, either in writing or in the form of a minuted meeting, the analysis of the replies to the same addressees (auditee, SAI, Commission) that received the clearing document, for them to understand whether and why we accepted their replies (or not). Three-column tables created in Eurolook can help you give the auditee structured feedback for each paragraph separately.
Reply in writing to those not taking part in the adversarial process (typically member states).
For Commission and other bodies that will be in the adversarial, this step is not compulsory but recommended as a means to manage the auditee’s expectations of the adversarial process. This can take the form of written feedback or meeting held in person or online. In such a case, consider inviting a representative of the private office and/or the director.
Deadlines
Complete audit programmes immediately after each visit.
Send clearing documents within the deadlines indicated in the [link title="task%20plan" link="%2Faware%2FPA%2FPages%2FPlanning%2FResources-timetable.aspx%23Timetable" /]
.
When clearing documents take the form of an overview of findings, send them in the ECA working language no later than [link title="four%20weeks" link="%2Faware%2FGAP%2FPages%2FStandard-timeframes.aspx" /]
after the last relevant visit (for example, the final visit to the last member state in the sample).
Send the translation into the language of the member state within [link title="one%20week" link="%2Faware%2FGAP%2FPages%2FStandard-timeframes.aspx" /]
.
We allow auditees [link title="four%20weeks" link="%2Faware%2FGAP%2FPages%2FStandard-timeframes.aspx" /]
to reply to clearing documents. For member states, the four weeks begin on the date we send the translated clearing document. It is good practice to remind the auditee of the approaching deadline, which can be extended extend if the auditee requests so and if deemed appropriate.
Send the analysis of replies to member states within [link title="four%20weeks" link="%2Faware%2FGAP%2FPages%2FStandard-timeframes.aspx" /]
of having received their reply.
Resources
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