28 th april 2011

MEETING WITH

28th April 2011

Portuguese Certifying Authority ERFD and CF

MEETINGCertifying Authority28th April 2011

Summary

Introduction of both parties

Presentation of certification process in Portugal and in Bulgaria

Relationship of the Certifying Authority with other institutions

Lessons learned from previous periods

Improvement of the certification function in the next period

Final conclusions


Summary

Introduction

of both parties

Portugal overview


Workforce of 5 625 thousand

Portugal Overview

Surface area 91 946,7 km2

Total population 10 623 thousand

Population density 115 hab por km2

0 50km

North

Centre

Alentejo

Algarve

Azores

Madeira

Lisboa

Portugal overview


■ National financial coordination of the Structural Funds

■ National coordination for operational monitoring and management of the ERDF and the Cohesion Fund

■ Payment Authority / Certifying Authority

■ Payment entity for ERDF and CF

Main responsabilities

Financial Institute for Regional Development, PI


Mission

Executes regional development policy through the

financial coordination of the community structural funds and of

the Cohesion Fund.



Global financial coordination of the community structural funds and of the Cohesion Fund

Coordination, management and physical and financial monitoring of the ERDF and of the Cohesion Fund and the management of technical assistance measures of these funds

Payment authority of the ERDF and Cohesion Fund, within the CSF III, and certifying authority and paying entity, within the NSRF, relating to these funds and territorial cooperation programs

2nd level control authority of the ERDF and of the Cohesion Fund, within the CSF III, and responsible for control of the operations, within the NSRF



The organizational model

The organs Flexible Structure, based on

Directive Council Statutory Auditor

Units Groups Project Teams


Communication

Internal Audit

Legal Supportand Litigation

Technical Documentation

Planning and Programming

Audit

Territorial Cooperation and

Community Initiatives

InformationSystems

IS NSRF

Internal IS

Financial and Asset

Administration

Human Resources

Financial Management

Coordination of Operational Management

Control and Audit

Statutory Auditor Directive Council

Body Unit Group

Support for Operational

Management ERDF and

Cohesion Fund

Control of Expense

Declarations

Certification

Chairman Vice-ChairwomanVice-Chairman

Support for Institutional Management

FinancialCoordination

ERDF TA OPTechnical

Secretariat

Programming and Financial

Monitoring

Monitoring and Evaluation


Dire

ctiv

e C

ounc

il Fu

nctio

n U

nit

Vice-Chairman

Payments

Chairman

Control and Audit Internal Audit

Certification

Support for Institutional

Management Control

and Audit Certification

Internal Audit

Vice-Chairman


Presentation of certification process in Portugal and in Bulgaria

Summary


C e r t i f y i n g A u t h o r i t y f u n c t i o n s

Drawing up and submitting to the Commission certified statements of expenditure and applications for payment;

Certifying Authority


F u n c t i o n s

C e r t i f y i n g A u t h o r i t y :

■ The statement of expenditure is accurate, results from reliable accounting systems and is based on verifiable supporting documents;

■ The expenditure declared complies with applicable Community and national rules and has been incurred in respect of operations selected;



F u n c t i o n s


■ Ensuring for the purposes of certification that it has received adequate information from the managing authority on the procedures and verifications carried out in relation to expenditure included in statements of expenditure: Norma IFDR n.º 01/2008, de 04-06-2008 – guide lines to MA



F u n c t i o n s

C e r t i f y i n g A u t h o r i t y : Norma IFDR n.º 01/2008 contents:

Request for Certification of expenditure of the MA to CA and statement of expenditure by axis

Advances paid by the body granting the aid

Revenues generator projects



F u n c t i o n s

C e r t i f y i n g A u t h o r i t y : Norma IFDR n.º 01/2008 contents:

Identification of on the spot checks

Amounts deducted under the projects included in the request for Certification of expenditure

“Follow-up of conclusions and recommendations resulting from inspections carried out by PO



F u n c t i o n s


■ Taking account for certification purposes of the results of all audits carried out by or under the responsibility of the audit authority;

■ Maintaining accounting records in computerised form of expenditure declared to the Commission;



F u n c t i o n s


■ Keeping an account of amounts recoverable and of amounts withdrawn following cancellation of all or part of the contribution for an operation.

■ Providing an Information System of ERDF and Cohesion Fund;



To s u p p o r t i t s t a s k s t h e C A h a s d e v e l o p e d :

■ An integrated and modular system, to simplify procedures and to enable the flow of information, fully coherent with the European Commission SFC 2007 information system;

■ A system providing communication and integration with the information systems of the MA and AA, supported on Web services.


Directive Coucil

Vice-Chairwoman

Certification

ERDF and Cohesion Fund

Control of Statementsof Expense

Staff (5)

Secretariat

Staff (4)

the teamCertifying Authority


Certifying Unit is responsible for:

Exercise the Certifying Authority functions

Prepare and submit to the EC forecast of payment requests;

Prepare the Annual Summary



E R D F a n d C o h e s i o n F u n d G r o u p

Responsible for technical and financial analysis by checking the reception of claims and their completeness (numerical checks), and for drawing up of statements of expenditure and proposing their submission to the Commission.

Certifying AuthorityGroups



Confirm an adequate treatment of revenue-generating projects

confirm that MA demonstrates have applied the procedures of validation of expenditure, as described in the management and control system of OP (in a sample)

confirm that the expenditure declared is actually supported in legal documents attesting its realization (in a sample)




Confirm that the corrections arising from irregularities resulted in withdraw of all or part of the public participation (evidence in the MA IS)

Confirm that advances declared are supported by warranty and they observe the period of 3 years for their regularization



C o n t r o l o f S t a t e m e n t s o f E x p e n d i t u r e G r o u p

Responsible for checking the substance of the information provided (checks of conformity with the community law, assessment of management verifications carried out by the Managing Authority and Intermediate Bodies, review of the results of audits carried out by the Audit Authority, etc).


IFDR - Certifying Authority


Check results of the compliance assessment related to the programme management and control systems description;

Check control and audit reports of the Audit Authority, and ensure that negative findings have been satisfactorily addressed



Audit the procedures carried out by the Managing Authority, using an appropriate sample of projects, to ensure that: Projects are selected in accordance with the criteria

defined in the programme; Expenditure declared has actually been incurred and

complies with Community and national rules; An adequate audit trail is held in accordance with the

regulation requirements; Irregularities are prevented, detected, and the necessary

correcting measures are provided.



C o n t r o l o f S t a t e m e n t s o f E x p e n d i t u r e

Annually the CA establishes a control plan



A n n u a l P l a n s

2009

All the OP

2010

3 OP

2011

4 OP2 Thematic controls

C o n t r o l o f S t a t e m e n t s o f E x p e n d i t u r e


Whenever the AC concludes

■that the information submitted by the managing authority, in the certification request, is not sufficient or does not provide sufficient guarantees as to the legality and regularity of expenditure, the request will be subject to cancellation.

■that part of expenditure does not provide sufficient guarantees as to its legality and regularity, such expenditure is subject to suspension and withdrawal of expenditure certified to the Commission.

AC - DUC

AC - CD

UC - NFFC

UC - NCDD

Análise dos Pedidos de Certificação de Despesas

AG

Envio PCD

Recebe e reencaminha para

análise

Análise formal, técnica e financeira

Solicita elementos/esclarecimentos

adicionais

Conclusãoda análise formal,

técnica e financeira

Prepara e envia elementos/

esclarecimentos adicionais

Sem solicitação de elementos /esclarecimentos

Procede à revisão e reenvia o PCD

Análise face aos resultados

das auditorias ao PO

Solicita esclarecimentos/

elementos adicionais

Conclusãoda Análise

Parecer positivo

Sem solicitação de elementos /esclarecimentos

Devolve o PCD

Recebe notificação

Propõe a devolução do PCD

Parecer negativo –Proposta de revisão

Reinício da análise

P arecer negativo – P roposta de devolução

Parecer negativo –Proposta de devolução

Suspende e solicita revisão

Propõesuspensão

da análise e revisão do PCD

6

A

1

2 3 4

5 7

B C D

4.1

4.2

7.1

7.2

Woorkflow - Technical and financial analysis and control of statements of expenditure


Woorkflow - Certified statements of expenditure and applications for payment


AC - DUC

AC - CD

UC - NFFC

UC - NCDD

Declaração de Despesas e Pedidos de Pagamento

AG

CE

Conclusãoda análise

Parecer positivo

Cálculo dos montantes a

certificar/pedir à CE

Certificação de Despesa

Recepçãodo Certificado

e DD e PP

Condições de admissibilidade

Valida o processo e propõe certificação

7

8 9

10

11

Recebe notificação

E

E


Manual of Procedures

Compliance Assessment

Norma IFDR n.º 01/2008, de 04-06-2008 – guide lines to MA


Final conclusions

Summary


Cer t i f i ca t i on r es u l t s

Total expenditure suspended by the CA

22

Average delay on the treatement of the applications for payment 24

Average payment delays from the Commission

25N.º of the payment requests from the MA rejected by the IS or cancelled by the CA

167 883 453 €

Preven t i v e measu res

OPPayment Requests

Nº. Total Expediture Public Expenditure Fund

Competetiveness Factors 6 1.199.610 659.602 590.123

Territorial Enhancement (ERDF) 8 763.425 763.424 535.897Territorial Enhancement (CF) 6 433.511 432.409 303.458Norte 6 350.011 321.594 225.554Centro 5 208.688 192.425 126.586Lisboa 5 90.162 85.796 41.454Alentejo 5 73.698 71.381 45.060Algarve 6 32.406 31.229 16.207Açores 10 442.351 442.351 350.122Madeira 7 98.337 98.337 70.591Technical Assistance 2 8.425 8.425 7.162

TO TA I S ERDF 6 0 3.267.113 2.674.565 2.008.755Cohesion Fund 6 433.511 432.409 303.458ERDF+CF 6 6 3.700.624 3.106.975 2.312.213

Cer t i f i ca t i on r es u l t s State of play at 14th de March 2011

Un: M€


Main Relationships of the Certifying Authority with other institutions

■ Audit Authority

■ European Commission

■ Managing Authorities


Lessons learned from previous periods

Summary


A need for an IS specifically to support the certification process

Clear instructions for verifications

Summary


Improvement of the certification function in the next period

Summary


Thank you for your attention!

More information at your disposal www.ifdr.pt

or for specific requests [email protected]

http://www.ifdr.pt/

mailto:[email protected]

28 th april 2011

Documents

operational management

cohesion fundcoordination

global financial coordination

regional development

certification function

financial monitoringmonitoring

fundspayment authority

community structural