Examples of using Materiality level in English and their translations into Slovak
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Computer
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Programming
(20) DG DGT set a materiality level of 5%.
However, it did not significantly deviate from the average which, in 2015,is very close to the materiality level.
The maximum materiality level shall be 2% of the expenditure referred to in paragraph 3.
The level of error was under the materiality level(1.08%).
The Commission has not set a 2% materiality level that could be considered as an acceptable error rate for expenditure.
The study estimates the RER at 2,81%, i.e. above the 2% materiality level set by the Commission.
As regards agriculture, the Commission notes that thelevel of error overall has decreased markedly and is close to the materiality level.
The study estimates the RER at 3,35%, i.e. above the 2% materiality level set by the Commission.
Moreover, in contrast to the way it is used in cohesion, the information is not used to ensure that theresidual risk rate remains below the Commission's materiality level.
The study estimates the RER at 3,63%, i.e. above the 2% materiality level set by the Director-General of EuropeAid.
For the Agriculture and natural resources policy group the estimated error rate was 2.3%,i.e. over the materiality level.
Its calculation of the residual error rate(below the 2% materiality level) is based solely on payments made via decentralised management, which only represented 26% of the payments in the year.
As a result the Commission does not consider that areservation could have been required, as the materiality level finally arrived at was below 2%.
Applying the 2% materiality threshold used by the Court of Auditors, the Commission has, as a key objective,to determine whether the error rate exceeds the materiality level.
Until now the benchmark for measuring how the Commission has managedrisk has been the standard 2% materiality level applied by the Court of Auditors across the whole budget, irrespective of the risks and the cost of controls entailed in each policy area.
Because no such calculation is made annually or for the whole programme period,there is no assurance at closure that the risk is below the materiality level even after corrections.
As a result of regularity audits and checks, if the Commission concludes that the residual error rate, taking into account all recorded financial corrections,remains above the 2% materiality level, it may launch the necessary financial correction procedure, including net financial corrections in the event of remaining serious deficiencies.
For the non-rural development part of EAGGF Guarantee expenditure, which accounts for more than 85% of total expenditure,the level of error is below the materiality level.
Furthermore, the Commission would like to highlight that both MemberStates have a cumulative residual risk below the materiality level of 2% as disclosed in the annual activity reports for 2015.
Notes that the residual error rate for the ex-post audits reported by the Joint Undertaking were 1,40% for Seventh Framework Programme projects and 1,6% for Horizon 2020 projects,which is considered below materiality level;
The remaining differences noted by the Court representthe fact that the different consolidated entities have different materiality levels to consider when making accounting decisions.
Conclusions and recommendations 57 A residual risk rate should be calculated to assess the legality and regularity of expenditure in the course of programme implementation and at closure 124 We consider that the calculation of a residual risk rate for each cohesion programme is an appropriate and useful measure which can provide assurance that the remainingerror at closure does not exceed the materiality level.
For cohesion policy, the Commission is calculating the cumulative residual risk throughout the programming period,thus allowing for the reduction of the risk of errors below the materiality level at any moment in time during the programming period.
The Commission will continue to work closely with the managing and audit authorities through various guidance notes, technical meetings and joint audit tools in order toensure over time a residual level of error below the materiality level.
For the policy areas covered by this chapter, the results of the Court's substantive testing are relatively stable over the past years andaround the 2% materiality level.
For the European Agricultural Guarantee Fund, the largest volume of agricultural expenditure,the Court recognises that this year again the error rate is below materiality level.
Furthermore, if the real financial impact of the audit findings(errors which require financial follow-up) is taken into account, the residual error rate equals 1,6%,well below the materiality level of 2%.
Notes with satisfaction that the detected error rate during ex-post verification of 2016 grants, performed by an external service provider, was 0,98% and the residual error rate is 0,95%,which is well below the materiality level of 2%.
The Commission does not calculate a residual risk rate at programme level taking into account the financial corrections resulting from conformity audits and thus there is no assurance that the remainingerror for a programme does not exceed the materiality level(see paragraphs 34 to 38).
The Commission underlines that for the closure of the 2007-2013 period, the risk of unjustified reductions in final error rates reported by Member States is mitigated by the issuance of the annual control reports and the implementation of financial correctionswhen the residual error rates are above the materiality level.