Outlook on effective management of EU structural funds
from 2007-2013 to 2014-2020
2012-02-01Vilnius
Content of PresentationContent of Presentation
• Orientation towards results and ways of simplification
• LT experience in:– Enhancing administrative capacity;– Use of simplified costs;– Process review;– Use of IT tools
• Implementation issues in the 2014-2020 Regulations’ drafts
Cohesion policy –Cohesion policy –systems and systems and requirementsrequirements
EU requirements
National and regional requirements
MinistriesMonitoring Committee of
Operational Programs (consist of assistance
administration institutions’ officials and social economic
partners)
Managing Committees of
Operational Programs
Government of the Republic of Lithuania
Project promoters
Audit Authority
National Audit Office
Ministry of Finance
Certifying Authority
Implementing Institutions(7 Agencies)
European Commission
Ministry of EnvironmentMinistry of
Social Security & LabourMinistry of Transport
Ministry of HealthcareMinistry
of Education & Science
Ministry of Economy
Ministry of InteriorInformation Society
Development Committee
National Fund
Department
Central Project
Management Agency
Lithuanian Business Support Agency
ESF Agency
EnvironmentalProject
Management Agency TIDe
Managing AuthorityEU Structural Assistance Management Department
Payments making
Authority
State Treasury Departme
nt
JSC “INVEGA”
Councils of Regional Development
Public Procurement
Office
(consist of assistance administration institutions’
Officials partners)
RCC
Cohesion policyCohesion policy
• ““Cohesion policy has to be known not Cohesion policy has to be known not for it’s complexity, but for it’s results” for it’s complexity, but for it’s results” (Informal meeting of the minister’s)(Informal meeting of the minister’s)
• ““One size does not fit allOne size does not fit all” ” (Informal (Informal meeting of the minister’s)meeting of the minister’s)
Result oriented Cohesion policyResult oriented Cohesion policyhow to achow to achhieve it?ieve it?
What is the way to go through all complex process towards results?
Result oriented Cohesion policyResult oriented Cohesion policyhow to achow to achhieve it?ieve it?
What is the way to go through all complex process towards results?
ResultsResults
Human resources
Simplified costs
IT tools
Process review
Management Management and and control systemscontrol systems
Process Process andandFunctionsFunctions
What is What is simplification?simplification?
• The ability to simplify means to eliminate the unnecessary so that the necessary may speak. ~Hans Hofmann, Introduction to the Bootstrap, 1993
What is necessary?What is necessary?
• UE SF management has to be Sound, Efficient and Effective
• It requires Appropriate, Effective and Transparent systems
• These systems have to ensure:– Selection of quality operations and effective implementation– Prevention and detection of irregularities and reasonable
assurance on the regularity of expenditure– Delivery systems should be as simple and streamlined as
possible
– ...and orientation towards results
First of all – qualified, creative and constantly
willing to improve employees
Administrative capacity buildingAdministrative capacity buildingin EU SF management and in EU SF management and control systemcontrol system
• Context:– Around 1200 employees in ES SF management and control system– 3 level institutional structure (MA, line ministries and agencies)
which composes of 18 institutions– Different cultures and legal status of institutions
Demand to ensure that MA’s delegated tasks are performed according to the requirements and effectively
• Qualification development system:– Review of EU requirements for systems and functions– Identification of existing qualification development tools between
institutions– Determination of general (minimum) requirements for competences
according to the institution and target group– Identified 11 thematic subjects for the development of competences– Launched procurement for centralized training services
Simplified costs
LT experience – LT experience – Simplified costs Simplified costs
• Provides real possibility to reduce administrative burden for beneficiaries
• Integration of simplified costs requirements in the national legal system
– Still difficulty to implement for budgetary institutions
• What’s working so far (ESF):– Flat rate scheme for indirect costs (approved by EC in 2011)– Unit costs (e.g. Scholarship amount for post graduate student
or scientists who come back to work after maternity/ paternity leave, wages for scientists);
– Lump sums (e.g. For publicity activities).
Process review
LT experience – Process LT experience – Process review review
• Review of project cycle management bottle-necks• Acceleration of processes
– Appraisal, up to 3 months;– Payment claim verification, up to 30 days;– Contracting, up to 30 days
• Appraisal process:– State planning procedure (up to 2 months);– Combination of appraisal phases
• Risk based management:– for payment claims;– for public procurements;– for on the spot checks
• Unified Indicators system• Requirements to use information in the national
databases
IT tools
LT experience – LT experience – SFMIS2007SFMIS2007
• Starting point: not IT tool for itself, but effective project cycle management tool
• Designed step by step together with detailed requirements for processes and procedures
• The main management tool for EU SF MCS institutions:– Used in everyday EU SF management procedures
– Paperless data exchange between EU SF MCS institutions– Data quality, reliability and sustainability
• Electronic Application and payment claim forms• Process monitoring
SFMIS2007modules
1.Projects
2.Payments
3.Monitoring
4. Analysis
5.Administration
Data exchange website
for beneficiaries
Website www.esparama.lt
Data exchanges with Government
Budget Accounting & Payment System
Register of Enterprises
SFMIS2007 functional SFMIS2007 functional structurestructure
SFMIS2007 BenefitsSFMIS2007 Benefits
• A form (Application) data import:
– from 2 hours (2004-2006) 1-2 min. (SFMIS2007)
• Contract data generation:
– 15 minutes to generate from imported and verified application data.
• Indicators, project appraisal information, payments forecast – everything is in the payment claim, no need to collect this data in other ways.
• Interim participants reports (e-forms)
Implementation issues in the 2014-2020 Regulations’ drafts
General remarksGeneral remarks
• Requirements and process– Stronger role of EC in setting more requirements
(thematic concentration, conditionalities, performance framework, accreditation, suspension of payments, etc.)
– Does it fully comply with proportionality principle?• Simplified costs
– More options to use simplified costs, but...• whether more detailed EC working documents will
not specify otherwise? (Remember - devil is in the details)
• E-Cohesion– Paperless process should not be an end in itself and
not overemphasized.– what about management verifications and audits,
electronic signature and legal basis?– Will the same requirements be applied for audits and
controls?
Conclusion – more Conclusion – more questionsquestions??
• What could be done for simplification despite complexity of 2014-2020 Regulations?
• Does EU regulations provide sufficient legal certainty?
– Remember - Devil is in the details
• Is the new system lay down conditions for orientation towards quality results rather than assurance of eligible expenditure?