COMPETENCES AND SCOPE OF THE AUDIT
The Governmental Audit Office of EU Funds (hereinafter: the GAO) performs professional tasks for the Government of the Republic of Serbia, in cooperation with other state administration bodies, related to the audit and confirmation of compliance of systems established for the implementation of European Union financial assistance.
Responsibility for audit activities arises from obligations undertaken through agreements concluded between the European Commission and the Government of the Republic of Serbia, which regulate the rules for the implementation of Union financial assistance.
The GAO performs audits under shared management and indirect management of EU funds, with the aim of ensuring the proper implementation of programmes and projects financed from these funds.
Within the scope of its competences and responsibilities, the GAO:
- plans and conducts audits of systems, operations and accounts within the framework of programmes funded by the EU;
- provides assurance to the European Commission and the Government of the Republic of Serbia regarding the completeness, accuracy and veracity of financial statements, the legality and regularity of expenditure, as well as on the functioning of management and control systems;
- prepares and submits annual audit activity reports and audit opinions;
- monitors the implementation of recommendations and improvement of systems;
- cooperates with the European Commission, national institutions and other audit bodies;
- participates in the development and application of audit methodology and standards;
- performs other tasks within its competences.
Through its audit activities, the GAO contributes to the protection of the financial interests of the European Union and the Republic of Serbia, as well as to the improvement of public financial management systems.
AUDIT APPROACH
Audit work is based on risk assessment, identifying areas with the greatest impact on the legality and regularity of expenditure and on the functioning of management and control systems.
Audits are conducted in accordance with:
- International Standards of Supreme Audit Institutions (ISSAI),
- relevant European Commission guidelines,
- the GAO’s internal methodology.
Through audits of systems, operations and accounts, the GAO provides comprehensive assurance regarding:
- the functioning of management and control systems,
- the legality and regularity of expenditure,
- the reliability of financial statements.
This assurance represents the basis for issuing an audit opinion to the European Commission.
Within the new Reform and Growth Facility, the GAO also performs audits of steps defined in the Reform Agenda of the Republic of Serbia for the period 2025–2027. While previous audit approaches were primarily ex post, this instrument requires the application of ex ante procedures and thematic audits, in order to ensure that audit results are timely and useful both to institutions within the system and to the European Commission.
INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA)
The Instrument for Pre-Accession Assistance (IPA) represents the main financial instrument of the European Union intended to support candidate and potential candidate countries in the accession process. Union financial assistance under IPA is aimed at supporting reforms, alignment with the EU acquis, strengthening institutional and administrative capacities, as well as supporting socio-economic development.
Funding is implemented through several types of programmes, which differ in management mode and areas of support, including national programmes, cooperation programmes with other countries and programmes supporting agriculture and rural development.
Within the framework of IPA, the GAO is responsible for conducting audits of:
- national annual and multiannual programmes,
- cross-border and territorial cooperation programmes,
- agriculture and rural development programmes (IPARD).
NATIONAL ANNUAL AND MULTIANNUAL OPERATIONAL PROGRAMMES
National programmes are EU programmes implemented at the national level and covering various areas of support, including reforms, alignment with the EU acquis, strengthening institutional capacities and socio-economic development.
These programmes are implemented under indirect management of EU funds, with clearly defined roles and responsibilities of national authorities within the management and control system.
The GAO acts as the Audit Authority (AA).
CROSS-BORDER AND TERRITORIAL COOPERATION PROGRAMMES
Cross-border and territorial cooperation programmes are implemented in cooperation between the Republic of Serbia and other countries, with the aim of strengthening regional cooperation, economic development and territorial cohesion. Depending on the management mode, these programmes are implemented under shared management and indirect management.
The GAO acts as a member of the Group of Auditors (GoA) within the following programmes:
- Interreg VI-A IPA Romania–Serbia
- Interreg VI-A IPA Bulgaria–Serbia
- Interreg VI-A IPA Croatia–Serbia
- Interreg VI-A IPA Hungary–Serbia
- Interreg VI-B IPA ADRION
- Danube Region Programme
- URBACT IV Programme
- Interreg Europe
The GAO acts as the Audit Authority (AA) – the lead audit authority, within the following programmes:
- IPA CBC Serbia–Montenegro
- IPA CBC Serbia–Bosnia and Herzegovina
- IPA CBC Serbia–North Macedonia
IPARD PROGRAMME
The IPARD Programme is a European Union instrument intended to support agriculture and rural development in candidate countries, with the aim of harmonizing with the Common Agricultural Policy and strengthening the competitiveness of the agricultural sector.
The programme is implemented under indirect management of EU funds, in accordance with specific rules and procedures established by the European Commission.
The GAO acts as the Audit Authority (AA).
REFORM AND GROWTH FACILITY
The Reform and Growth Facility is a financial instrument of the European Union aimed at accelerating economic reforms and supporting development through the implementation of agreed reform steps and achievement of defined targets. Unlike programmes based on financing individual projects and costs, funds under this instrument are approved based on the fulfilment of predefined conditions, including reform measures, indicators and results.
The GAO acts as the Audit Authority and performs audits of management and control system, as well as verification of the fulfilment of conditions that constitute the basis for the release of funds, through audits of steps included in requests for the release of funds.
This approach ensures that funding is disbursed based on achieved results and progress in the implementation of reforms.
INTERNAL AUDIT
The GAO performs internal audit within the General Secretariat and services of the Government of the Republic of Serbia, as part of the public internal financial control system.
Internal audit is conducted in accordance with national regulations and Global Internal Audit Standards.
The work of internal audit is based on an integrated approach covering audit of systems, processes and activities of audited entities, including providing opinions on the adequate functionong of financial management and control systems, in accordance with the components and principles of COSO – International Internal Control Framework.
Internal audit focuses on the assessment of managerial accountability, the adequacy of design and the effectiveness of internal controls and risk management, while providing recommendations for improvement.
