EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Annual Meeting with managing authorities of crossborder programmes Brussels - 25 Octobre 2011 Revision of the Financial Regulation and ETC programmes

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Triennal revision of the Financial Regulation : - Commission proposal on the revision of the financial regulation COM (2010) 260 of 28 May Followed by a consolidation of the proposed modifications to be brought into the Financial Regulation in COM (2010) 815 of 22 December 2010 Context

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Background of the changes affecting Cohesion policy Accountability of Member States will be reinforced in line with Art. 317 TFEU: Member States shall cooperate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management. The Financial Regulations shall lay down the control and audit obligations of the Member States in the implementation of the budget and the resulting responsibilities. Context

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Purpose of the changes affecting Cohesion policy Clarifying and reinforcing the respective responsibilities of the Commission and of the Member states in shared management Reinforcing the chain of accountability between the Member states and the Commission under shared management Introduction of a tolerable risk of error to have controls adjusted to the level of risks and costs Context

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Proposal Key changes proposed for shared management Accreditation process Management declaration of assurance Timely clearance of accounts/irregularities

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Timing Timing of the revision of the FR June : Negotiations with Council and EP. Adoption of the Financial Regulation subject to ordinary legislative procedure End 2011: Planned adoption of FR January 2012 : Planned entry into force of FR Entry into force of the modifications : New provisions on shared management will apply from the date of entry into application of the rules applicable to Structural Funds after 2013 For programmes current rules will continue to apply

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION HOW DOES THE REVISED FINANCIAL REGULATION AFFECT COHESION POLICY AND ETC PROGRAMMES?

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Accreditation ETC specificities Accreditation National accreditation of the MA/CA on the basis of criteria fixed in sector specific rules No supervision by the Commission of OPs below 250 Meuros No ex-ante compulsory validation of the audit strategy Continuous supervision of activities of the accredited body by the accrediting authority. Possibility of withdrawal of accreditation Accreditation of the MA by the hosting MS

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Certification and assurance ETC specificities Certification and assurance system MA can exercise the functions of CA Certification of expenditure to the Commission once a year (1 st February) –Management declaration; –Independent audit opinion. –Annual accounts; –Annual summaries. Basis for Commission assurance Assurance shall be given by the MA located in a given MS for expenditure incurred in another MS MA exercises the functions of CA

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION ETC specificities in Management and control structures ETC specificities 1rst level checks by MA or controllers in each participating MS By principle the MA is responsible for the controls on the whole territority of the OP If not possible designation of controllers, unless an EGTC is MA The controlers should be the same than those of Investment for growth programmes or external programmes AA in the MS hosting MA AA assisted by a Group of Auditors

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION ECT Management and control structures Management and Control Managing AuthorityAudit Authority Independent audit of the management control systems Expenditure and accounts Annual audit opinion prepared for the EC First level controls Payments to beneficiaries Declaration of expenditure to the EC Submission of annual accounts and management Declarations to EC

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Clearance of accounts and closure ETC specificities Clearance of accounts and closure Timely clearance of accounts strengthening the discharge exercise Rolling closure of operations starting of the related 3 years period of retention of documents Simplified closure of programmes No specificities.

Dec N-1 30 Jun N Dec N 1 Feb N+1 30 Apr N+1 Accounting year Preparation of the annual accounts, management declaration, summary audit report, audit opinion Clearance of accounts 30 Jun N+1 1 July N-1 Audit reference period Accounting year and clearance of accounts Compulsory interim payment application 31 Jul N

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Financial flows ETC specificities Resulting financial flows for Annual pre-financing paid at the beginning of each year from 2016: 2% in % from 2017 till 2022 Regular submission of payment claims with a compulsory statement of expenditure at the end of accounting year Interim payment by Commission limited annually to 90% of amount calculated Remaining 10% to be released after clearance of accounts N+3 decommitment rule (except first commitment)

EN Regional Policy - Finance & Budget EUROPEAN COMMISSION Thank you for your attention