Digitalisation of the European reporting, monitoring and audit

Studija 11-10-2021

The rules governing the monitoring and reporting obligations of EU funding programmes under shared management have been developing progressively over time. Across the EU, there are over 290 different reporting systems. Fragmentation makes data incomparable, prevents the use of AI and big data sets and systems for monitoring and control, and prevents stakeholders and society from getting a comprehensive overview of the way funds are distributed. This European added value assessment accompanies the report of the European Parliament's Committee on Budgetary Control (CONT) on the ‘Digitalisation of the European reporting, monitoring and audit’ (2021/2054(INL)), by making an evidence-based analysis, identifying gaps and barriers, laying out possible policy options and pointing to their potential impacts. Action in the field could diminish fraud, abuse and weaknesses of EU funding programmes, which would lead to more efficiency and transparency. The three policy options identified in this study propose strengthening the enforcement of existing measures, creating a single EU database, and introducing requirements for the disclosure of relevant information on companies. A potential EU added value was identified, which could presumably lead to a lowering of the error rates by 0.7 percentage points and savings worth €1.11 billion. In the case of high-risk expenditure the error rates could drop by up to 2.9 percentage points, yielding savings worth €1.94 billion.