Welcome to the website of the Directorate General for Audit of European Funds

The Directorate General for Audit of European Funds (hereinafter: DGAEF) was established on 1 July 2010. Its main task is to act as audit authority in Hungary for operational programmes and cooperation programmes financed from European Union funds. DGAEF also performs audit functions with respect to other international funds received by Hungary.

DGAEF is an autonomous public administrative body. Act XLIV of 2022 regulates its legal status, tasks and procedures.

As audit authority, DGAEF is functionally independent from managing authorities, intermediate bodies, and the certifying authority. Specific rules regulate the prevention and handling of potential conflict of interest between beneficiaries and the staff of DGAEF. When planning its activity, selecting methods and drawing audit conclusions, DGAEF acts independently. The reports on the findings, conclusions and recommendations are compiled free from outside influence.

Introduction and mission statement

The mission of DGAEF is to ensure the effective and regular use of funds received from the European Union budget, thereby protecting the financial interests of the European Union and of Hungary.

To achieve this, FIRMNESS and EFFICIENCY is a must.

Firmness is crucial. On the one hand, beneficiaries and implementing bodies should be aware of the expectation of regularity – and not only the effective use of funds. On the other hand, the Audit Authority should be firm and clear in its conclusions and opinions. Consistency and reliability of audit procedures and results are further requirements in this respect.

The requirement of efficiency is twofold.

Operational efficiency of DGAEF is ensured through the continuous review of its working methods.

Efficiency is also of utmost importance when examining the effectiveness and efficiency of the use of EU funds. The audits are carried out based on a tailor-made methodology which has been developed taking into account the methodological guidelines of the European Commission. Beside regularity, increasing attention is paid to the audit of effectiveness and the achievement of real results and impact.

Consequently, methodological reforms must be implemented on an ongoing basis while ensuring continuity in the performance of audit tasks at the same time.

The audit work shall be characterised by professional excellence and performed by highly qualified and well-prepared auditors.

Proactive approach is required to enable the early identification of risks.

In the framework of its professional network, DGAEF generally

  • cooperates with the other members of the institutional system – while always respecting its responsibility to formulate opinions INDEPENDENTLY and OBJECTIVELY;
  • maintains an active partnership with the audit authorities of other member states to share and adopt the best practices;
  • is in regular contact with the European Commission to comply with legal provisions and to be able to accomplish tasks at the level expected by the EU.

An important medium-term objective of DGAEF is to achieve recognition as a professional member state Audit Authority that contributes to the reliability and success of the institutions.

As an employer DGAEF

  • Demands the following of its staff of government officials:
    professional competence, ability to work independently and participate in teamwork, ability to work in a disciplined and dedicated manner, integrity, freedom from corruption and bias, objectivity, professional scepticism, compliance with the code of ethics, economy – protection of the resources of DGAEF, and protection of the environment.
  • Offers the following:
    good working relations based on partnership, motivational and supportive working environment, professionalism and continuous development, regular training, health and sport facilities, cultural programme support, equal opportunities.

Tasks

DGAEF performs Audit Authority tasks in the programming periods 2014–2020 and 2021–2027 with respect to the following funds:

  • European Regional Development Fund
  • European Social Fund
  • Cohesion Fund
  • Youth Employment Initiative
  • Fund for European Aid to the Most Deprived
  • European Maritime Fisheries and Aquaculture Fund
  • Just Transition Fund
  • Asylum, Migration and Integration Fund
  • Internal Security Fund
  • Border Management and Visa Instrument
  • Neighbourhood, Development and International Cooperation Instrument
  • Instrument for Pre-Accession Assistance
  • Connecting Europe Facility

DGAEF also carries out specific audit tasks related to other EU and international grants such as:

  • Norwegian Financial Mechanism and EEA Financial Mechanism
  • Swiss–Hungarian Cooperation Programme
  • European Union Solidarity Fund

With respect to the above funds, DGAEF prepares and reviews audit strategies and annual plans, performs system audits, audits of operations and accounts, thematic audits, verifies management declarations and annual summaries, compiles annual control reports and issues opinions and closure declarations.

Legal framework

Most relevant pieces of EU legislation

  • Treaty on the Functioning of the European Union
    Available at: [link]
  • Financial regulations
    Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council
    [link]
    Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council
    [link]
  • Common Provisions Regulations
    Regulation (EU) 1303/2013 for 2014–2020
    [link]
    Commission Delegated Regulation (EU) 480/2014 supplementing Regulation (EU) No 1303/2013
    [link]
    Regulation (EU) 2021/1060 for 2021–2027
    [link]

Most relevant pieces of national legislation affecting the work of DGAEF

Acts

  • Act CXII of 2011 on the right of informational self-determination and on freedom of information [link]
  • Act CXCV of 2011 on public finance [link]
  • Act XLIV of 2022 on the Directorate General for Audit of European Funds [link]
  • Act CVII of 2019 on bodies with special legal status and the legal status of their employees [link]

Government Decrees

  • Government Decree No. 368/2011. (XII. 31.) on the implementation of the Act on public finance [link]
  • Government Decree No. 272/2014. (XI. 5.) on the use of EU funds in 2014–2020 [link]
  • Government Decree No. 256/2021. (V. 18.) on the use of EU funds in 2021–2027 [link]

European Commission Guidelines

Guidance on European Structural and Investment Funds 2014–2020:

  • EGESIF 14-0010 Guidelines on a common methodology for assessing management and control systems
  • EGESIF_14-0012_02 Guidance on management verification
  • EGESIF_14-0017 Guidance on simplified cost options
  • EGESIF_15-0002-04 Guidance on annual control report and audit opinion
  • EGESIF_15-0007-02 Updated guidance on treatment of errors
  • EGESIF_15-0016-04 Guidance on audit of accounts
  • EGESIF_16-0014-01 Guidance on sampling methods
  • EGESIF_14-0021-00 Fraud risk assessment and anti-fraud measures
  • COCOF 09/0003/00-EN – Information note on fraud indicators for ERDF, ESF and CF

Guidance on European Structural and Investment Funds 2021–2027:

  • CPRE_23-0007-01 Methodological note for the assessment of management and control systems
  • CPRE_23-0013-01 Methodological note on annual control report, audit opinion and treatment of errors
  • CPRE_23-0005-01 Reflection paper on risk-based management verifications (Article 74(2) CPR)
  • CPRE_23-0011-01 Audit methodology for financial instruments
  • CPRE_23-0012-01 Methodological note on the preparation, submission, examination and audit of accounts

 

Further relevant pieces of EU legislation : [link]