1. SFC2014 - THE NEW FUND MANAGEMENT SYSTEM FOR THE PROGRAMMING PERIOD 2014-2020
Impact of the new regulation(s) on Programme Management for ERDF/CF and ESF
Morten Greve
Directorate General for Regional and Urban Policy

2. Context and Regulations
European Structural and Investment Funds
European Regional Development Fund (ERDF)
European Social Fund (ESF)
(Fund for European Aid to the Most Deprived)
Cohesion Fund (CF)
European Agricultural Fund for Rural Development (EAFRD)
European Maritime and Fisheries Fund (EMFF)
Asylum and Migration Fund (AMF)
Internal Security Fund (ISF)
Instrument for Pre-accession Assistance (IPA)
More harmonisation
Applying whenever possible the same principles

3. Context and Regulations
Common provisions for the European Structural and Investment Funds
Common Strategic Framework
Partnership Agreement
Fund specific regulations
Provisions for the individual funds
Implementing and delegated Acts
Details on implementation
Templates for the information requirements
Nothing is agreed until everything is agreed
This is not a working group. We are not here to discuss the individual items of the proposals. We have taken stock of the current situation and have based our work on this. We will look at the impact in terms of IT and management and control systems.
Identifying processes that can be reused, processes that changes and new processes.

4. Context and Regulations - moving target
2011
------
2012
2013
2014
2015
Commission draft regulation proposals
Commission Proposal
Discussions in the Council
Discussions in the Parliament
Informal dialog. Negotiations and discussions on PA and OP
(Via SFC2007)
Adoption of the general regulation
Adoption of implementing. and delegated acts
Submission of Partnership Agreement and programmes
Adoption
Formal negotiations and discussions on PA and Programmes
(Via SFC2014)
Adoption of the general regulation is expected from July 2013 and onwards.
Implementing and delegated acts will follow shortly after
Note: Not the same speed for all funds

5. Shortcomings of 2007-2013 period
Limited connection between strategy, programmes, projects and operations
Lack of an overall strategy and intervention logic
Insufficient targeting
Limited coherent definition and measurement of outputs and results
Difficult to measure the impact of the Cohesion Policy
Unclear or insufficient reporting requirements
Templates lacking in details and clarity
Cumbersome modification and decision processes
Lack of programme and data structure lead to inefficient assessments and analysis

6. Result oriented and focused policy
Clear well-defined objectives at EU level
Common Strategic Framework
Thematic Objectives and Investment Priorities
Alignment and coordination between funds at MS level
Partnership Agreement
Community Lead Local Development - CLLD
Integrated Territorial Investment - ITI
Enhanced result orientation
Indicators
Defined and measurable targets
Performance framework
Monitoring and evaluation
More structure in the programme data

7. A long term investment Detailed specifications
More work now but more clarity in the future
Involve IT and database experts in the design of the templates
Providing everything in a structured way through pre-defined templates and forms
Fast programme modification process
Clear reporting
Enhanced data quality
Harmonisation
Long term efficiency gains

8. More structure Everything is structured and organised ❑ ✓
Data fields and tables
Selection Lists
Check boxes + yes/no
Text fields 1 2 3 4 5 xx yy zz vv
Common Indicators
Additional waste recycling capacity - tons
Estimated reduction in leakage - m3
Total length of new railway line – km
Estimated decrease of GHG in CO2 equivalent - tons ❑ ✓
Text box title
Provide a description of no more than x characters of the following items: …

9. More structure Documents are optional and for information
Except where specifically required by regulation
In case of inconsistency between documents and data the structured data in the forms prevails
Complete reference documents are produced by the system based on the data
Will not include information supplied through documents
Changes compared to previous versions are identified automatically
Correct treatment ensured automatically
Amendments with or without a Commission decision

10. 2007-2013 versus 2014-2020 All ESI funds Major change
Partnership Agreement

11. Details of the Partnership Agreement
Common strategy for all ESI Funds in a Member State
One per Member State
Contains aggregates and summary of all programmes except European Territorial Cooperation
Submitted within 4 month after the entry into force of the regulation
Approved by the Commission within 4 months after submission
Programmes covered cannot be approved before the approval of the P.A.

12. Details of the Partnership Agreement template
Template provided by the Commission
<Link to draft template>
Much more structured than the NSRF or NSP
4 sections
14 sub-sections with 12 details
11 tables
(One table was defined for the NSRF in )
Some tables are summaries or aggregates of tables within the programmes
These tables can be pre-filled automatically with information from the programmes already encoded in SFC2014

13. Details of the Partnership Agreement template
4 sections
Arrangements to ensure alignment with the Union strategy of smart, sustainable and inclusive growth as well as the Fund specific missions pursuant to their Treaty-based objectives, including economic, social and territorial cohesion
Arrangements to Ensure Effective Implementation
Description of the integrated approach to territorial development supported by the ESI Funds or a summary of the integrated approaches to territorial development based on the content of the programmes
Arrangements to ensure efficient implementation of the Partnership Agreement and programmes

14. Details of the Partnership Agreement template
Section 1:
1.1 An analysis of disparities, development needs, and growth potentials with reference to the thematic objectives and the territorial challenges
1.2 A summary of the ex-ante evaluations of the programmes or key findings of the ex-ante evaluations of the Partnership Agreement
1.3 Selected thematic objectives, and for each of the selected thematic objectives a summary of the main results expected for each of the ESI Funds
1.4 The indicative allocation of support by the Union by thematic objective at national level for each of the ESI Funds, as well as the total indicative amount of support foreseen for climate change objectives
1.5 The application of horizontal principles and policy objectives for the implementation of the ESI Funds
1.6 The list of the programmes under the ERDF, the ESF, the Cohesion Fund, except those under the European territorial cooperation goal, and of the programmes of the EAFRD and the EMFF, with the respective indicative allocations by ESI Fund by category of region (where relevant) and by year
Text
Table

15. Details of the Partnership Agreement template
1.4.1 The indicative allocation of support
Financial allocation at national level
Thematic Objective
ERDF
ESF CF
EAFRD
EMFF
TOTAL
1. Strengthening research, technological development and innovation
2. Enhancing access to, and use and quality of, information and communication technologies
3. Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF)
4. Supporting the shift towards a low-carbon economy in all sectors
5. Promoting climate change adaptation, risk prevention and management
6. Protecting the environment and promoting resource efficiency
7. Promoting sustainable transport and removing bottlenecks in key network infrastructures
8. Promoting employment and supporting labour mobility
9. Promoting social inclusion and combating poverty
10. Investing in education, skills and lifelong learning
11. Enhancing institutional capacity and an efficient public administration
Technical assistance
If programmes are encoded it will be filled by SFC2007. If not, it can be adjusted manually.
After submission of all OPs and before adoption of the PA the table can be updated for completeness.
The links ensures data quality and coherence

16. Details of the Partnership Agreement template
Section 4:
4.1 An assessment of the existing systems for electronic data exchange, and a summary of the actions planned to gradually permit all exchanges of information between beneficiaries and authorities responsible for management and control of programmes to be carried out by electronic data exchange
The impact of this section covering the e-Cohesion policy will be discussed later

17. 2007-2013 versus 2014-2020 ERDF/CF and ESF
Major changes
Deadlines for submission of information
Reporting frequency
Increased level of detail in reporting (implementation, financial data, financial instruments, …)
More focus on data and automated reporting
Less narrative reporting
In some cases information should still be produced but only sent to the Commission on request
Intervention logic – construction of priorities within an Operational Programme
Elements of an Operational Programme can be modified without a Commission decision

18. 2007-2013 versus 2014-2020 Main elements ERDF/CF and ESF
Changes
Dates and timing
NSRF
Partnership Agreement
Covers all ESIFs
Adoption before OPs
Not everything covered by a Commission decision
Submission 4 months after regulation
4 months for adoption
Operational Programme
Completely new structure:
Multi-fund (ERDF/CF and ESF).
Pre-defined thematic objectives
Pre-defined investment priorities
Within 3 months of the PA.
ETC programmes within 9 months after the regulation
Major Projects
Possible to have an independent appraisal with no subsequent need for a Commission decision
After approval of the OP
PA partial adoption

19. 2007-2013 versus 2014-2020 Main elements ERDF/CF and ESF
Major Changes
Dates and timing -
Joint Action Plan
New
Decision by Commission
After adoption of the OP
Annual Implementation Report
Light report almost entirely based on data available in the system
Full report with additional information
Annually from June 2016 for the light report
The full report in 2017 and 2019.
Indicators
All completely defined within the programme
Within the OP on submission
Description of Management and Control system
Designation of authorities
Independent audit body with the MS will assess
Formal approval by the Commission no longer needed.
Full submission on request
Before the submission of the first interim payment application

20. 2007-2013 versus 2014-2020 Main elements ERDF/CF and ESF
Major Changes
Dates and timing
Interim payment application
Per accounting year
Minimum once a year by 31 July
Annual payment forecast
Financial data on operations etc.
Contain more information on operations as well as categories of intervention.
Twice a year
31 January and 31 July
Audit Strategy
Submission only on request by the Commission
Within 8 months of the adoption of the OP
Annual Control Report and Opinion
Timing
Together with the Accounts
From Annually by 15 February

21. 2007-2013 versus 2014-2020 Main elements ERDF/CF and ESF
Major Changes
Dates and timing
Ex-ante evaluation
Submission at the same time as the OP.
Within 3 months of the submission of the Partnership Agreement
Annual statement on recoveries etc.
Accounts
In accordance with the Financial Regulation
Submitted annually together with the Annual Control Report and Opinion, the Annual Summary, and Management Declaration.
From Annually by 15 February
Communica-tion Plan
Communication Strategy
Submitted to the Monitoring Committee.
Within a year after the adoption of the OP

22. Timeline for strategy and programming
MS and all ESI Funds
MS and individual Funds
MS and ETC programmes
General regulation adopted
Max 4 months
Partnership Agreement Submitted (MS)
Max 3 months
Max 3 months
Observations by EC
All OPs incl. Ex-ante eval. (except ETC) (MS)
Max 1 month
Max 9 months
Partnership Agreement Adoption
Max 3 months
ETC OPs (MS)
Observations by EC
Max 3 months
Max 3 months
Observations by EC
OP Adoption (EC)
Max 3 months
ETC OP Adoption (EC)

23. Timeline for other main processes
2013
2014
2015
2016
Partnership Agreement 1
Major Projects 4
Final Interim Payment for accounting year 11
Annual Implementation Report 12
Joint Action Plan 5
Operational Programme 2
Accounts, Annual Summary and Management Declaration 13
Designation of Authorities 6
Ex-ante evaluation 3
Interim Payment Application 7
Annual Control Report and Opinion 14
Financial Data on Operations and Payment Forecast 8
Audit Strategy 9
Communication Strategy 10

24. Details of the Operational Programme for ERDF, CF and ESF
Submission within 3 month of the submission of the Partnership Agreement
Preferably together with the PA – automatic consistency check between programmes and PA.
ETC programmes to be submitted within 9 month of the adoption of the general regulation
Adoption by the Commission within 6 months
Cannot be adopted before the adoption of the Partnership Agreement

25. Details of the Operational Programme for ERDF, CF and ESF
Template provided by the Commission
Completely structured set of information
All details of the general regulation (article 87 in particular) included and specified
Approximately 30 tables and 40 individual description fields
had a document and a few tables
All tables, selections, descriptions and explanations are defined.
Elements that can be modified without a Commission decision are clearly identified
No use of documents or annexes
New construction of the priorities
Intervention logic

26. Details of the Operational Programme for ERDF, CF and ESF
Priority axis
Consists of:
Thematic objective (Selected from the list of 11 objectives)
Investment priorities (Selected from the pre-defined list for each thematic objective)
Category of region (One of three regions – none for Cohesion Fund)
Specific Objectives (Defined by the programme)
Simple case:
As a general rule it should be mono-fund, cover only one thematic objective and a single category of region
Priority axis
Thematic objective
Category of region
Investment priorities
Specific objectives corresponding to the investment priorities
Fund (specify the Fund: ERDF, Cohesion Fund, ESF)
Union support - EUR
Co-financing rate 1
Less developed
1.1
Obj. 1
ERDF
€2,300,000,000
70.00 %
1.3
Obj. 2

27. Details of the Operational Programme for ERDF, CF and ESF
Priority axis
Complex case:
Can cover more than one fund, more than one thematic objective and more than one category of region
Priority axis
Thematic objective
Category of region
Investment priorities
Specific objectives corresponding to the investment priorities
Fund (specify the Fund: ERDF, Cohesion Fund, ESF)
Union support - EUR
Co-financing rate 1
Less developed
1.1
Obj. 1
ERDF €
70.00 %
1.3
Obj. 2 2
2.2
Obj. 3 € 3
More developed
3.2
Obj. 4 €
50.00 % 10
10.1
Obj. 5
ESF €
75.00 %
N.A.
4.2
Obj. 6 CF €
85.00 % …

28. Details of the Operational Programme for ERDF, CF and ESF
Priority axis and indicators
All subsequent information in particular output and result indicates will follow the structure of the priority axis
All indicators may be defined and used at lowest level within the priority
Common pre-defined indicators
Used in all programmes
Can be aggregated and national and EU level
Programme specific indicators
Used within the programme to monitor the implementation
Template cannot provide a two-dimensional input table for everything
SFC2014 will allow for the construction of the priorities

29. Details of the Operational Programme for ERDF, CF and ESF
Technical details in the template
An IT version of the template will be provided in which all fields are identified and where the maximum number of characters for text fields is defined
<ID type=" " maxlength=" " input=" " Decision = " ">
type: N=Number, D=Date, S=String, C=Checkbox, P=Percentage, B=Boolean
maxlength = maximum number of characters in text field
input: M=Manuel, S=Selection, G=Generated by system
decision: N=Not part of the Decision

30. Details of the Operational Programme for ERDF, CF and ESF
Technical details in the template
Fund
Category of region
Basis for the calculatio n of the Union support
(Total eligible cost or public eligible cost)
Union support (a)
National counterp art
(b) = (c) + (d))
Indicative breakdown of the national counterpart
Total funding
(e) = (a) + (b)
Co- financing rate
(f)  = (a)/(e)
For
informati on
EIB contribut ions
National Public funding
(c)
National private funding
(d)
<18.a.1 type="S" input="G">
<18.a.2 type="S" input="G">
<18.a.3 type="S" input="G">
<18.a.4 type="S" input="G">
<18.a.5 type="N" input="M">
<18.a.6 type="N" input="M">
<18.a.7 type="N" input="M">
<18.a.8 type="N" input="M">
<18.a.9 type="P" input="G">
<18.a.10 type="N" input="G" >
<18.a.11 type="N" input="M" >
Priority axis 1
ERDF
 Less dev
 Public

31. Details of the Operational Programme for ERDF, CF and ESF
Example of information not requiring a decision by the Commission
Authority/body
Name of the authority/body
Head of the authority/body
Address
Telephone
address
<8.1.1 type="S" input="S" Decision=N>
<8.1.2 type="S" maxlength= "255" input="M">
<8.1.3 type="S" maxlength= "255" input="M">
<8.1.4 type="S" maxlength= "255" input="M">
<8.1.5 type="S" maxlength= "60" input="M">
<8.1.6 type="S" maxlength= "60" input="M">
Managing authority
Certifying authority, where applicable
Audit authority
Body to whom payments will be made by the Commission

32. References and links 2014-2020 information and regulations:

33. Support And Contact Support for SFC2007 and SFC2014 web applications
Support for SFC2007 and SFC2014 Web services
Conference web site