Monitoring Committee Partnership Agreement Findings

JOINT MONITORING COMMITTEE PARTNERSHIP AGREEMENT 2014 - 2020 PARTNERSHIP AGREEMENT 2021 - 2027 24 NOVEMBER 2023 www.eufunds.bg

MAIN FINDINGS AND RECOMMENDATIONS FROM AUDIT ENGAGEMENTS UNDER THE PROGRAM S FOR THE PERIOD 2014-2020 Lachezar Spasov CIA, CISA, CFE, CGAP, CCSA,CRMA Executive Director CAEAF EA

Audited Funds European Agricultural Guarantee Fund (EAGF) European Agricultural Fund for Rural Development (EAFRD) European Maritime and Fisheries Fund (EMFF) EMFF 1% EAFRD 24% Audited amounts 2016-2022 EAGF EAFRD EMFF 5 608 308 673 1 820 881 623 69 411 804 EAGF 75%

Main groups of findings Differences in area measurements and animal identification Inflated offer prices Creation of artificial conditions for obtaining financing subdivision and fragmentation of land holdings Public procurement Weaknesses in indicator reporting procedures Lack of separate analytical account or separate accounting system Durability of operations Non-compliance with deadlines for approval of aid application and payment claims Weaknesses in debt management

EAGF declared expenditures and amounts at risk 13,722,672 FY 2016 726,184,009 Total amount of expenditures declared to EC 11,722,451 FY 2017 797,281,214 Amount at risk % 533,222 FY 2018 807,146,800 726 184 009 13 722 672 FY 2016 1,89% 3,614,867 FY 2019 799,089,405 797 281 214 11 722 451 FY 2017 1,47% 807 146 800 533 222 FY 2018 0,07% 2,451,272 FY 2020 797,560,837 799 089 405 3 614 867 FY 2019 0,45% 797 560 837 2 451 272 FY 2020 0,31% 2,369,745 FY 2021 863,821,851 863 821 851 2 369 745 FY 2021 0,27% FY 2022 817 224 557 3 319 634 0,41% 3,319,634 FY 2022 817,224,557 Amount at risk Total amount of expenditures declared

EAFRD - declared expenditures and amounts at risk 5,629,174 FY 2016 223,889,544 4,607,408 FY 2017 194,155,360 Total amount of expenditures declared to EC 223 889 544 194 155 360 205 686 970 309 155 719 303 261 377 354 648 649 230 084 003 Amount at risk % 2,070,560 FY 2018 205,686,970 5 629 174 4 607 408 2 070 560 3 199 031 5 796 878 19 438 227 16 778 425 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 2,51% 2,37% 1,01% 1,03% 1,91% 5,48% 7,29% 3,199,031 FY 2019 309,155,719 5,796,878 FY 2020 303,261,377 19,438,227 FY 2021 354,648,649 16,778,425 FY 2022 230,084,003 Amount at risk Total amount of expenditures declared

EMFF declared expenditures and corrected amounts 2016- 2017 0 0 Total value of expenditures declared to EC (euro) 2017- 2018 794,434 11,453 Corrected amount % 2018- 2019 13,370,919 0 0 0,00% 1,44% 13,62% 4,91% 1,97% 0.79% 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 1,821,037 11 453 1 821 037 1 045 083 374 578 119 262 794 434 13 370 919 21 264 806 18 980 112 15 001 534 2019- 2020 21,264,806 1,045,083 2020- 2021 18,980,112 374,578 2021- 2022 15,001,534 119,262 Total value of expenditures declared Corrected amount

Recommendations EAGF, EAFRD, EFMM All management and control systems and minimizing risks recommendations are aimed at improving

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