This project is co-financed by the European Union and the Republic of Turkey 1 Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey This project is co-financed by the European Union and the Republic of Turkey Financial management of EU Programmes Andrea Steigler

This project is co-financed by the European Union and the Republic of Turkey

1ST DAY AGENDA Short introduction IPA funds, principles, structure of planning documents Legal background and Manual Institutional system - tasks and responsibilities Process flow of financial programming N + 3 RULES

This project is co-financed by the European Union and the Republic of Turkey Key principles of IPA Managing structures should anticipate future management bodies under the SF and CF Structures should be set up at national level Implementation of multi-annual programmes - N + 3 RULE! Shift towards decentralized management (from DIS to EDIS accreditation) and similar to shared management under Cohesion instruments Wide eligibility scope, closer to Cohesion instruments but it is a pre-accession instrument

This project is co-financed by the European Union and the Republic of Turkey

Multi-annual Indicative Financial Framework Part of the enlargement package Financial translation of the overall priorities identified within the pre-accession political framework Breakdown of financial envelope by horizontal programmes, country and component, administrative expenditure Established for a 3 year period on a rolling forward basis

This project is co-financed by the European Union and the Republic of Turkey IPA Funds under Multi-annual Indicative Financial Framework (in MEUR )

This project is co-financed by the European Union and the Republic of Turkey Multi-annual Indicative Planning Document One for each beneficiary country, covering all relevant components Strategic cornerstone of IPA implementation, ensures the necessary coherence between components Following the 3 year rolling logic Prepared by the Commission, in close consultation with the beneficiary country and relevant stakeholders, including civil society Submitted to IPA management Committee for opinion

This project is co-financed by the European Union and the Republic of Turkey Strategic Coherence Framework Beneficiary countries shall establish, based on the multi- annual indicative planning document, a strategic coherence framework to be discussed with the Commission. The strategic coherence framework shall constitute a reference document for the programming of the regional development component and the human resources development component.

This project is co-financed by the European Union and the Republic of Turkey IPA in Turkey: Components and budget

This project is co-financed by the European Union and the Republic of Turkey Operational Programme Assistance shall be implemented through multi-annual operational programmes. These operational programmes shall be drafted by the operating structures. They shall be established in close consultation with the Commission and the relevant stakeholders, and approved through a Commission Decision

This project is co-financed by the European Union and the Republic of Turkey NORMATIVE BACKGROUND INTERNATIONAL (EU) NATIONAL Regulations Framework, planning documents Reports Institutional structure Sectoral Internal Other documents Agreements Guidelines, manuals Agreements Law, regulation Manuals Contracts PRAG

This project is co-financed by the European Union and the Republic of Turkey EU Regulations (1) The European Commission has extended the scope of Council Regulations which regulate pre-accession assistance to the Republic of Croatia by the Council Regulation (EC) No 2257/2004 of 20 December 2004 amending Regulations (EEC) No 3906/89, (EC) No 1267/1999, (EC) No 1268/1999 and (EC) No 2666/2000, to take into account of Croatia's candidate status, Council Regulation (EC) No 1605/2002 of 25 June 2002 on Financial Regulation which is applied on EC general budget and its implementing Council Regulations

This project is co-financed by the European Union and the Republic of Turkey EU Regulations (2) Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-accession Assistance (IPA) (hereinafter referred to as IPA Framework Regulation) Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No 1085/2006 establishing an Instrument for Pre-accession Assistance (IPA) Commission Regulation No. 2342/2002 of 23 December, 2002, laying down detailed rules for implementation of EC Regulation 1605/2002; Commission Regulation No. 1248/2006 of 07 August, 2006, amending Regulation 2342/2002 laying down detailed rules for implementation of EC Regulation 1605/2002; EC Council Regulation no. 2988/1995 on the protection of the European Communities financial interests of December 18, 1995;

This project is co-financed by the European Union and the Republic of Turkey Council Regulation (EC) No 1085/2006 establishing IPA General provisions Rules concerning specific components Management and implementation Management of assistance, reporting Committees Types of assistance Implementation of assistance Protection of the Community's financial interests Coherence, compatibility and coordination Evaluation Transitional and final provisions

This project is co-financed by the European Union and the Republic of Turkey Commission Regulation (EC) No 718/2007 IPA Implementation Regulation (1) Common Rules for Implementation Chapter I: Principles Chapter II: Management and Control Systems Section 1: Decentralised management Section 2: Other forms of management Chapter III: Financial Contribution by the European Community Chapter IV: Financial Management Section 1: Budgetary commitments Section 2: Rules for decentralised management Section 3: Rules for centralised And Joint management Chapter V: Evaluation and Monitoring Chapter VI: Publicity, visibility

This project is co-financed by the European Union and the Republic of Turkey Specific Provisions Title I - Transition Assistance and Institution Building Component Title II - Cross–border Co–operation Component Title III - Regional Development and Human Resources Development Components Chapter I: Object of Assistance and Eligibility Section 1: Regional development component Section 2: Human resources development component Chapter II: Programming Chapter III: Implementation Section 1: General rules Section 2: Financial management Section 3: Evaluation and Monitoring Title IV - Rural Development Component Commission Regulation (EC) No 718/2007 IPA Implementation Regulation (2)

This project is co-financed by the European Union and the Republic of Turkey Inter-institutional co-operations IMPLEMENTING AGREEMENT (NAO – HOS) COOPERATION AGREEMENT (RCP CID – CFCU) OPERATIONAL AGREEMENT (RCP CID – End Recipient) Agreements FRAMEWORK AGREEMENT FINANCING AGREEMENT

This project is co-financed by the European Union and the Republic of Turkey STRUCTURE OF RCOP MANUAL CONNECTION OF RELEVANT CHAPTERS

This project is co-financed by the European Union and the Republic of Turkey WHO ARE THE KEY PLAYERS IN FINANCIAL PROCEDURES?

This project is co-financed by the European Union and the Republic of Turkey NATIONAL FUND (NAO) MSIT (HOS) CFCA End Recipient CONTRACTOR KEY PLAYERS TREASURY (BANK)

This project is co-financed by the European Union and the Republic of Turkey WHAT ARE THEIR MAIN RESPONSIBILITIES AND TASKS? GROUP WORK

This project is co-financed by the European Union and the Republic of Turkey

PLANNING, PROGRAMMING EVALUATION, AUDIT TENDERING IMPLEMENTATION PCM

This project is co-financed by the European Union and the Republic of Turkey FINANCIAL SOURCES

This project is co-financed by the European Union and the Republic of Turkey NATIONAL FUND Transmission by NF/NAO of: Interim / Final Certificate + Statement of Expenditures + Application for Interim / Final Payment NAO to EC + Reports on Progress + Annexes EUROPEAN COMMISSION Approval of Request of funds and transfer IPA Funds - % of budget - Advance, Interim payment, Final balance NATIONAL FUND IPA Bank Accounts FLOW OF FUNDS

This project is co-financed by the European Union and the Republic of Turkey REQUEST FOR FUNDS, TYPES OF PAYMENTS Payments from the European Commission to the National Fund shall take the form of: pre-financing payment (30% of the Community contribution for the first 3 years) interim payments (Advance + Interim payment = Maximum 90% of the EC contribution - When ceiling is reached: NAO shall continue to send to the EC statement of expenditures) payment of the final balance

This project is co-financed by the European Union and the Republic of Turkey FLOWOFFUNDS

INSTITUTIONAL STRUCTURE AND FLOW OF FUNDS IN OTHER COUNTRIES CROATIAHUNGARY

This project is co-financed by the European Union and the Republic of Turkey TOP Institutional structure, Croatia

This project is co-financed by the European Union and the Republic of Turkey EU CONTRIBUTIONCO-FINANCING Bank accounts and flow of funds

This project is co-financed by the European Union and the Republic of Turkey Managing Authorities, Hungary

This project is co-financed by the European Union and the Republic of Turkey Financial flow, Hungary

This project is co-financed by the European Union and the Republic of Turkey 38 Extract from Article 166 (3) (a)Any portion of a budget commitment for such a multi-annual programme shall be automatically de-committed where, by 31 December of the third year following year n being the one in which the budget commitment was made: (i) it has not been used for the purpose of pre-financing; or (ii) it has not been used for making intermediate payments; or (iii) no declaration of expenditure has been presented in relation to it. (b) That part of budget commitments still open on 31 December 2017 for which a declaration of expenditure has not been made by 31 December 2018 shall be automatically de-committed. Financial Regulation 1605/2002 (as amended by Financial Regulation 1995/2006)

This project is co-financed by the European Union and the Republic of Turkey 39 SUMMARIES OF DEADLINES according to Financial Regulation 1605/2002

This project is co-financed by the European Union and the Republic of Turkey 40 OP ALLOCATION ( ) CASE 1

This project is co-financed by the European Union and the Republic of Turkey 41 OP POTENTIAL AVAILABLE FUNDING ( )

This project is co-financed by the European Union and the Republic of Turkey 42 EXCERSISE 1 RC OP FIGURES ( ) YEAR Total expenditure (IPA fund + National Contribution) EUR

This project is co-financed by the European Union and the Republic of Turkey 43 WHAT IS THE RCOP POTENCIAL AVAILABLE FUNDING IN EACH YEAR BETWEEN 2007 – 2013?

This project is co-financed by the European Union and the Republic of Turkey 44 MAXIMUM COMMITMENTS ( ) – CASE 2

This project is co-financed by the European Union and the Republic of Turkey 45 MANAGING N+3 IN FIGURES ( ) – CASE 3

This project is co-financed by the European Union and the Republic of Turkey THANK YOU FOR YOUR PARTICIPATION AND HAVE A NICE EVENING