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European funding audit
09/03/2009
A long-standing issue over a European funding audit in the Highlands and Islands has been resolved.
Following extensive negotiations between the Scottish Government and European Commission, it has been agreed that Scotland will repay €10.42 million (£9.47 million at current exchange rate) to the Commission - two-thirds less than the Commission sought to reclaim from Scotland in its original demand in 2006 - to bring outstanding issues concerning the 1994-99 Highlands and Islands Structural Funds programme to a close.
Scottish Ministers have already budgeted for the repayment, which will have no impact on the delivery of public services.
The issues relate to inadequate audit trails and document retention among projects that date from more than a decade ago. The European Commission had originally sought €31.9 million.
Enterprise Minister Jim Mather said:
"Having made every effort to minimise this repayment, I welcome the Commission's decision to significantly reduce the repayment amount. This follows the considerable efforts of Scottish Government officials and partner organisations and constructive liaison with the auditors.
"These are issues that date from more than a decade ago, but the Scottish Government takes its audit and compliance responsibilities very seriously and we have made budgetary provision to meet the repayment in full.
"We can now focus on the very positive role the current 2007-13 European Structural Funds programme can play in the Highlands in Islands, building on the Government's economic recovery programme to help Scotland emerge stronger from the current downturn."