Hungarian Delegation Lisbon, 28 October 2008 Financial Institute for Regional Development

Summary  1)NSRF - National Strategic Reference Framework ( )  2)IFDR - Financial Institute for Regional Development  3)IFDR - Certifying Authority

Summary  1)NSRF - National Strategic Reference Framework ( )  2)IFDR - Financial Institute for Regional Development  3)IFDR - Certifying Authority

NSRF – Strategic Guidelines National Strategic Priorities:  Qualification of human resources (education and professional training in a social inclusive framework);  Sustained growth of Portuguese economy (Qualification of economic activity - private investment focus on tradable sectors);  Social Cohesion;  Qualification of territory (attractiveness);  Qualification of administration (Governance Efficiency)

NSRF – Strategic Guidelines Five Structural Principles for NSRF and OP:  Operational Concentration  Investment and Development Actions Selectiveness  Economic Viability and Financial Sustainability of Investments  Territorial Cohesion  Strategic Monitoring

 Three Thematic Operational Programmes:  Competitiveness Factors (ERDF)  Human Potential (ESF)  Territorial Enhancement (ERDF + Cohesion Fund)  Seven Regional OP FEDER by NUTS II + Two Regional OP ESF by NUTS II  Eight Territorial Cooperation OP (Cross-border, Transnational, Interregional)  Two Technical Assistance OP (ERDF + ESF) NSRF – Operational Programmes

NSRF Coordination Governmental Commission NSRF Observatory NSRF Technical Commission (NSRF Observatory, IFDR, IGFSE, IGF) Rational thematic centres Observer regional dynamic centres Strategic advisory bodies Thematic Operational Programmes COMPETITIVENESS FACTORS TERRITORIAL ENHANCEMENT HUMAN POTENTIAL Regional Operational Programmes of Continent and Autonomous Regions North Alentejo Autonomous Region of Azores Centre Algarve Lisbon Autonomous Region of Madeira NSRF - Institutional Framework Regional OP Coordination Governmental Commission (3) OP Coordination Governmental Commissions

Convergence Regions – North, Centre, Alentejo e Azores Statistical Phasing Out Region – Algarve Regional Competitiveness and Employment Region – Lisbon Phasing In Region – Madeira Eligibility of the Portuguese NUTS II regions for cohesion policy objectives

Structural Funds: How much ERDF, ESF and Cohesion Fund?

(Millions of Euros) CSF ICSF IICSF IIINSRF Structural Funds: 20 years after Portuguese EU adhesion

Summary  1)NSRF - National Strategic Reference Framework ( )  2)IFDR - Financial Institute for Regional Development  3)IFDR - Certifying Authority

Financial Institute for Regional Development Executes regional development policy through the financial coordination of the community structural funds and of the Cohesion Fund. Mission

Financial Institute for Regional Development 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 The organizational model The organs Flexible Structure, based on  Directive Council  Statutory Auditor  Units  Groups  Project Teams

Communication Internal Audit Legal Support and Litigation Legal Support and Litigation Technical Documentation Planning and Programming Audit Territorial Cooperation and Community Initiatives Information Systems Information Systems IS NSRF SIFEC Internal IS Financial and Asset Administration Human Resources Financial Management Coordination of Operational Management Coordination of Operational Management Control and Audit Statutory Auditor Directive Council BodyUnitTemporary project teamGroup Support for Operational Management ERDF and Cohesion Fund Control of Expense Declarations Certification ChairmanVice-ChairwomanVice-Chairman Support for Institutional Management Support for Institutional Management Financial Coordination Financial Coordination ERDF TA OP Technical Secretariat ERDF TA OP Technical Secretariat Programming and Financial Monitoring Monitoring and Evaluation Financial Institute for Regional Development

Directive Council Function Unit Vice-Chairman Payments Chairman Control and Audit Internal Audit Certification Support for Institutional Management Control and Audit Certification Internal Audit Vice-Chairman Financial Institute for Regional Development

Summary  1)NSRF - National Strategic Reference Framework ( )  2)IFDR - Financial Institute for Regional Development  3)IFDR - Certifying Authority

 Drawing up and submitting to the Commission certified statements of expenditure and applications for payment; Functions as Certifying Authority IFDR - Certifying Authority

Certifying that:  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; Functions as Certifying Authority

IFDR - Certifying Authority Functions as Certifying Authority  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;

IFDR - Certifying Authority  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;  Keeping an account of amounts recoverable and of amounts withdrawn following cancellation of all or part of the contribution for an operation. Functions as Certifying Authority

IFDR - Certifying Authority  Providing an Information System of ERDF and Cohesion Fund;  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. Functions as Certifying Authority

IFDR - Certifying Authority Separation of Functions

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. IFDR - Certifying Authority ERDF and Cohesion Fund Groups:

Responsible for checking the substance of the information provided (checks of conformity with the community law, assessement 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 Control of Statements of Expenditure Groups:

IFDR - Certifying Authority Woorkflow - Technical and financial analysis and control of statements of expenditure

IFDR - Certifying Authority Woorkflow - Certified statements of expenditure and applications for payment

IFDR - Certifying Authority  Reconcile the amount declared with the relevant accounting and monitoring documents;  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. The Certifying Authority will:

IFDR - Certifying Authority 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. In addition, the Certifying Authority, in the scope of Control of Statements of Expenditure, can also

 Forecast of payment requests;  Centralised accounting and reporting on withdrawals and recoveries. IFDR - Certifying Authority Certification Unit – Additional Tasks

At the latest by 30 April each year, the Certifying Authority shall send to the Commission a provisional forecast of their likely applications for payment for the current financial year and the subsequent financial year. Forecast for Payment IFDR - Certifying Authority

Woorkflow - Forecast for payment

IFDR - Certifying Authority By 31 March each year as from 2008, the Certifying Authority shall send to the Commission a statement identifying for each priority axis of the operational programme:  the amounts withdrawn from statements of expenditure submitted during the preceding year following cancellation of all or part of the public contribution for an operation. Withdrawn and Recovered Amounts and Pending Recoveries

IFDR - Certifying Authority  the amounts recovered which have been deducted from those statements of expenditure;  a statement of amounts to be recovered as at 31 December of the preceding year, classified by the year in which recovery orders were issued. Withdrawn and Recovered Amounts and Pending Recoveries

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