MINISTRY OF FINANCEBeethovnova 11, 1000 LjubljanaTel.: (01) 369-65-10 Fax: (01) 369-65-39

Ljubljana, 19.11.2014

EU funds absorption and forecast process

Functioning of Certifying Authority

• EU funds management department performs the functions of CA in Slovenia

• The department is part of internal organizational unit of the Ministry of Finance – Budget Directorate

• Daily cooperation with Public Accountancy Directorate, Treasury

Organizational structure and operational sections of the EU Funds Management Department

- Cohesion Fund - Irregularities - Migration Funds- ERDF - Reports - Norwegian and EEA- ESF - Legal matters - Swiss Contribution - Development tasks

EU funds in Slovenia

Pre-accession aid Phare, ISPA, Sapard, Transition Facility, Schengen Facility, Cohesion fund 700 million EUR

Period 2004-2006 / Single Programming Document 334,5 million EUR

Period 2007-2013/ Operational programmes for regional development (EFRD), European social fund (ESF), Cohesion fund (CF) 4,2 billion EUR

Migration funds 63 million EURNorwegian and EEA Mechanisms 27 million EURSwiss Contribution 20 million EUR

Period 2014 – 2020 Partnership Agreement 3,2 billion EUR

EU funds in Slovenia

• Net recipient • App 10 % of national budget revenues/ year

• Slow absorption • Complex implementation system • Room for improvement

The key players

cooperation among

Management and control system - SLO

Managing authority

Certifying authority

Audit authority

CommissionAudit

Audit Authority

Certifying Authority

Managing Authority(and Intermediate Bodies)

The key players

control and supervision

Management and control system - EU

2007-2013:• Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down

general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund

• Commission Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund

• Uredba o izvajanju postopkov pri porabi sredstev evropske kohezijske politike v Republiki Sloveniji v programskem obdobju 2007-2013 (Ur.l. RS, št. 41/2007)

• Public finance act• Implementing act of the national budget• Public procurement act

Legal basis

Payments (reimbursement to the national budget) control according to Art.61 of 1083/2006/EC prevention and detection of irregularities receiving recoveries from the budget users

Certification of expenditure (statement of expenditure) Debtors‘ ledger (on all irregularities detected)

Submission to the Commission the certified statements of expenditure and applications for payment

Receiving payments from the Commission

Maintenance of accounting records in computerized form of expenditure declared to the Commission

Certifying authority – main tasks

Implementation process

Microsoft Excel Worksheet

Payment flow

A: Payment reimbursement European Commission EC account

Article 61 check (agregated level)

B: Payment reimbursement national level

Information on executed reimbursement to MA and IB

IT update

Reimbursement execution CA account

Reimbursement to the national budget

Article 61 check (single operation level)

Issue Claim for reimbursement

Payment execution SI budget account

Article 13 check

Check of paid invoices

Issue payment order for payment from the national budget

Invoice payment for works, supplies, services

Issue payment claim Beneficiary account

IT system

Documentary flow

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to IB

Documents Tasks performed

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Check of works, supplies, services delivered (desk review and on the spot check at beneficiary)

Commission

Application for payment

Certifying authority

Certifying authority

ISARR-SP

Reimbursement order

Certifying authority

Claim for reimbursement

Intermediate body (budgetary user = ministry)

IS-PA2007

Certifying authority

ISARR-SP

MFERAC

ISARR-SP

Desk review, on the spot at MA

and IB

Public accounting directorate

IS-PA2007

Information on reimbursement

execution

Intermediate body

Payment order

Public accounting directorate

ISARR-SP

MFERAC

MFERAC

IS-PA2007

MFERAC

Information on payment execution

MFERAC

1

2

3

0

Payment claim

Beneficiary

ISARR-SP

Forecasts to EC

• National authorities are invited to send by 30 April and September 15 forecasts of requests for payment to the Commission for the current year and the following year

• From 2015 submission of forecasts by January 31 and July 31 for the new programs and on a voluntary basis for 2007 -2013 programs

• Two separate payment forecasts: one for the payment requests to be sent to the Commission for the period January – October and another for the period November - December

Forecasts to EC

• Submission through SFC2007 only

• Payment forecasts relate to requests for payments sent to the Commission and not payments made by the national authorities to the final beneficiaries

• Our own national forecast of payments to be made to final beneficiaries AND the date on which we intend to request payment from the Commission, what inevitably involves further delay

Forecasts to EC

• N+2/3 rule to be taken into account – automatic decommitment

• Shortage of payment credits in EU budget

Mateja Mahkovec, MF – CA