2 Slovenia Signed Contract of Confidence for the period Compliance assessment for one programme for the new period Experience of a Certifying Authority

3 Institutional framework ( ) reflects clear separation of functions between: Managing Authority = Government Office for Structural Policy Certifying Authority = National Fund at the Ministry of Finance (internal organisation unit of the MF, special department within Budget Directorate) Audit Authority = Budget Supervision Office (independent financial control body) Experience of a Certifying Authority

4 CA was authorised to perform its tasks by Governmental Decision Independence of CA from MA is ensured by Governmental Decree Experience of a Certifying Authority

5 Mission statement of CA Functions of the CA are reflected in its organisation chart and described in manual of procedures Segregation of duties within CA is reflected in job descriptions of the staff No delegation of tasks by CA Experience of a Certifying Authority

6 Organisation structure of CA DEPARTMENT FOR MANAGEMENT OF EU FUNDS (Certifying Authority) COHESION POLICY SECTION/NF /numerical checks and draw up of SoE for …/ GENERAL AFFAIRS SECTION /checks of conformity/ SECTION… - Cohesion Fund - Irregularities - ERDF- Reports - ESF - Legal matters - Development tasks and IT Experience of a Certifying Authority

7 CA shall perform its functions…. …. in accordance with the description of the management and control system …. on a daily basis Tools of CA are… guidelines for execution of reimbursements internal procedures IT system (IS-PA 2007) Inter-ministerial co-operation Experience of a Certifying Authority

8 How has CA prepared for fulfilment of requirements of the new period? CA has provided input to description of the management and control system CA has developed its own procedures manuals with flowcharts, checklists and model documents CA has developed an IT system ….CA relies on the opinion of national compliance assessment body Experience of a Certifying Authority

9 CA has issued instructions for execution of reimbursements, which … specify: -data required by CA for certification of expenditure to EC & standard template of CfR with obligatory supporting documents IS-PA submission of data: in electronic and paper version – electronic transfer of data from CMS to IS-PA 2007 … provide explanation on: -calculation of EC contribution -procedure for checking of the CfR by the CA Experience of a Certifying Authority

10 LM must submit filled in standard templates: CfR with declaration Summary report on verification checks supported by List of paid and checked invoices List of paid and checked Payment claims Report on executed payments from the national budget Submission of data in paper version Experience of a Certifying Authority

11 CA issued instructions to the MA for submission of data in electronic version… -Transfer of data from CMS to IS-PA 2007 according to technical specifications laid down by CA -Only transfer of data for CfRs approved by MA (in status approved) -Changes of data for approved CfRs must be approved by the CA special status in CMS Differentiation of financial and administrative data Experience of a Certifying Authority

12 For certification of statements of expenditure… ….CA checks completeness and numerical correctness of each CfR ….Assurance by CA is based on information received from: MA and/or LM Audit reports and annual control reports of the AA On-the-spot checks Irregularity reports Experience of a Certifying Authority

13 CA uses computerised system…. to register transactions on its bank accounts to register individual CfR to follow a single financial circuit for all CfR to perform automatic internal controls (numerical and logical checks of data submitted in CfR) to record additional manual checks on substance of the information provided with the CfR to prepare statement of expenditure and application for payment at programme level per fund Experience of a Certifying Authority

14 CA is able to confirm accuracy and reliability of statement of expenditure as it has…. ….full access to the CMS and imports all data and accounting records from the CMS. Once the data on CfR has been checked in IS-PA 2007, CA confirms data in CMS (data are locked for any additional changes). Both systems enable processing of each CfR through different statuses. Experience of a Certifying Authority

15 For each statement of expenditure CA checks coherency of data in both systems (report A = report B) IT systems enable reconciliation of summary amounts certified at the level of priority axis with the individual expenditure records and supporting documents IS-PA 2007 enables recording of information following: audit reports and audit findings on-the-spot check reports irregularities Experience of a Certifying Authority

16 CA keeps an account of amounts recoverable and of amounts withdrawn…. in its computerised system Ex-ante recoveries: -Public expenditure not yet declared in the CfR or declared but not yet authorised by the CA Ex-post recoveries: -Public expenditure declared in the CfR and authorised by the CA; temporarily exclusion of CfR in doubt -Public expenditure certified in the statement of expenditure Experience of a Certifying Authority

17 Computerised system of the CA allows…. …. deduction of irregular expenditure from the statement of expenditure (irregularity report!) after its recovery or …. immediate withdrawing of irregular expenditure from the next statement of expenditure before its recovery CA registers recoveries, repayments and withdrawals in its debtors ledger for reporting to the EC Experience of a Certifying Authority

18 For conclusion… Management and control of EU funds got very complex Complexity can easily create perception of a complicated system with lengthy procedures and very detailed rules that must be respected What can be done to improve the situation? Experience of a Certifying Authority

19 Complexity of management and control procedures should be addressed by all involved institutions before and during implementation CA and other institutions shall pay attention to …. -adequate number of staff -regular training of the staff and others -proper set up of the system with well designed procedures described in the Manuals of procedures -availability of computerised system supporting daily control activities of the staff and.... develop good co-operation relations based on understanding of others roles and responsibilities! Experience of a Certifying Authority

20 Thank you for listening! Contact: Mojca Grošelj Ministry of Finance Department for management of EU funds Experience of a Certifying Authority