DG NEAR Residual Error Rate Study

To calculate the Derived Residual Error Rate of DG NEAR (RER) after contract closures and completion of any audits on payment for DG NEAR transactions (DG Derived Rate), based on the calculation of (a) the DG Managed Rate which includes geographic contracts relating to Neighbourhood instruments (ENI) and geographic contracts relating to Wester Balkans and Turkey instruments (IPA), and (b) the IMBC Rate for Indirect Management by Beneficiary Country (IMBC) funds under Pre-accession Assistance Instrument (IPA and its predecessors or successors). In addition, a Grant Rate from additional testing of grant contracts will be provided, to increase the level of assurance on grants expenditure. To report on errors for each Relevant Control System (RCS) used by DG NEAR (with risk indices assessment) and to analyse errors in detail.

Currently the RCSs are the following: direct management – grants; direct management – budgetary support; direct management – procurement; indirect management with beneficiary countries; indirect management with international organisations and Member States Agencies. These RCSs may be subject to changes, which will be communicated in due time by DG NEAR.