The European Youth Foundation's budget is made up of public money. Transparency and accountability are essential to our way of working. A detailed analysis, monitoring and evaluation of submitted applications and financed projects are set in place.
The EYF will pursue a policy of zero tolerance and is determined to fight fraud and other irregularities. Local authorities have been informed and asked to investigate cases in which there appear to have been cases of fraud.
Strengthening fraud control
EYF has strengthened its management of grants by taking the following decisions:
- reviewing the Operational Regulations of the European Youth Foundation (as from 1 January 2013): article 31 and article 32 address issues related to obligations, sanctions and reimbursement;
- informing the representative of the country concerned in the CDEJ and consulting with the National Youth Council (when existing) in respect of suspected fraud cases in that country;
- field monitoring: unannounced visits to projects;
- cooperating closely with local authorities if/when needed: authorities will not be asked to supervise the work of NGOs or audit their financial activities but are asked to investigate whether documents submitted are in compliance with domestic law and in case of suspected fraud, bring the facts to the attention of the Public Prosecutor's Office with a view to launching a criminal investigation.
Sanctions applied in case of fraud
- Grant reimbursement in full due to fraud.
- Exclusion of NGO from application process (suspension of the right to submit applications for financial support for all those who have been proven to have committed acts of fraud).
- Warning given to youth NGOs, private and public donors, national governments and other stakeholders about defrauding NGOs.
Impact of fraud
Some of the impacts of fraud:
- loss of reputation;
- loss of funding;
- loss of trust;
- loss of credibility;
- perceived lack of accountability;
- perceived lack of transparency.
Fraud is especially harmful for the NGO sector as credibility is one of its main mechanisms for functioning.
In the European Youth Foundation's case, fraud can have a snowball effect, affecting everyone. For this reason we ask all our beneficiaries, partners and friends to come forward and directly contact us, if aware of any cases of suspected fraud.
We take fraud seriously. Please contact us if you have any information regarding cases of fraud.