1. Structural Funds Financial Management and Control, Romania
1.1 Introductions
Structural Funds Financial Management and Control, Romania
FM Organisational Structure
(Management and Control Systems )
Mgr. Danka Kovaľová
June 2006

2. Bodies involved in FM by General Regulation
MS submits to the Commission description (report) of its management and control system (before the 1st interim payments application or within 12 months of the approval of an OP)
The 1st interim payment - released within 2 months
Of the date of receipt the above report – no reservations
Of the date of confirmation on corrective measures –reservations
Report and opinion on reservations – national Audit Authority

3. Bodies involved in FM by General Regulation
System structure (general information and flowchart showing the organisational relationship between the bodies involved in the management and control system)
Managing Authority - body designated by the Member State to manage the operational programme
Intermediate bodies carries out some or all of the tasks of the Managing or Certifying Authority under the responsibility of that authority
Certifying Authority body designated by the Member State to certify declarations of expenditure and applications for payment before they are sent to the Commission
The Audit Authority - functionally independent of the managing authority and the certifying authority, designated by the MS for each operational programme and responsible for verifying the effective functioning of the management and control system (description of their functions)
(combined with the example)

4. Managing Authority I
ensures that projects are selected for funding in accordance with the criteria applicable to the operational programme and that they comply, for their whole implementation period, with applicable Community and national rules;
verifies the delivery of the co-financed products and services and that the expenditure declared by the beneficiaries for operations has actually been incurred and complies with Community and national rules; verifications on-the-spot of individual operations may be carried out on a sample basis in accordance with the detailed rules to be adopted by the Commission

5. Managing Authority II
ensures that there is a system for recording and storing in computerised form accounting records of each project under the operational programme and that the data on implementation necessary for financial management, monitoring, verifications, audits and evaluation is collected
ensures that beneficiaries and other bodies involved in the implementation of operations maintain either a separate accounting system or an adequate accounting code for all transactions relating to the operation

6. Managing Authority III
ensures the evaluations of operational programmes
ensures that all documents regarding expenditure and audits on OPs are kept for a period of 3 years following the closure of OP or the year of a partial closure
Ensures that the certifying authority receives all necessary information on the procedures and verifications carried out in relation to expenditure for the purpose of certification
Provides MC with the documents required to permit the quality of the implementation of the operational programme to be monitored in the light of its specific goals draws up and, after approval by the Monitoring Committee, submits to the Commission the annual and final reports on implementation

7. Certifying Authority I
draws up and submits to the Commission certified statements of expenditure and applications for payment
ensures 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
takes account for the purposes of certification of the results of all audits carried out by or under the responsibility of the Audit Authority

8. Certifying Authority II
maintains accounting records in computerised form of expenditure declared to the Commission
keeps an account of amounts recoverable and of amounts withdrawn following cancellation of all or part of the contribution for an project. Amounts recovered shall be repaid to the general budget of the European Union, prior to the closure of the operational programme by deducting them from the next statement of expenditure

9. Audit Authority I
ensures that audits are carried out to verify the effective functioning of the management and control system of the operational programme
ensures that audits are carried out on operations on the basis of an appropriate sample to verify expenditure declared
presents to the Commission within nine months of the approval of the operational programme an audit strategy covering the bodies which will perform the audits, the method to be used, the sampling method for audits on operations and the indicative planning of audits to ensure that the main bodies are audited and that audits are spread evenly throughout the programming period . The Commission shall provide its comments on the audit strategy no later than three months following its reception

10. Audit Authority II by 31 March each year from 2008 to 2015
Submits to the Commission an annual control report setting out the findings of the audits carried out during the previous year in accordance with the audit strategy of the operational programme and reports any shortcomings found in the systems for the management and control of the programme. The information concerning the audits carried out in the years and 2016 will be included in the final control report supporting the closure declaration
Issues an opinion, on the basis of the controls and audits that have been carried out under the responsibility of the Audit Authority, as to whether the functioning of the management and control system provides reasonable assurance that statements of expenditure presented to the Commission are correct and that the underlying transactions are legal and regular
Submits a declaration for partial closure assessing the legality and regularity of the expenditure of operations completed during the previous year

11. Audit Authority III
submits to the Commission at the latest by 31 December 2016 a closure declaration assessing the validity of the application for payment of the final balance and the legality and regularity of the underlying transactions covered by the final statement of expenditure, which shall be supported by a final control report

12. Bodies involved in FM by General Regulation
Certifying Authority and its main functions
The date and form of the formal designation authorizing the Certifying Authority to carry out its functions
Specification of the functions carried out by the Certifying Authority
Functions formally delegated by the Certifying Authority (functions, intermediate bodies, form of delegation)
(combined with the example)

13. Certifying Authority Organisation of the Certifying Authority
Organisation chart and specification of the functions of the units (including indicative number of posts allocated)
Written procedures prepared for use by staff of the Certifying Authority (date and reference)
(combined with the example)

14. Certifying Authority Certification of statements of expenditure
Description of the procedure by which statements of expenditure are drawn up, certified and submitted to the Commission
Description of the steps performed by the Certifying Authority in order to ensure fulfilment of requirements under Article 60 of Council Regulation No…/…)
Arrangements for access of the Certifying Authority to the detailed information on operations and verifications and audits held by the Managing Authority, intermediate bodies and Audit Authority
(combined with the example)

15. Organisation of the Certifying Authority
Accounting system
Description of the accounting system to be set up and used as a basis for certification of expenditure to the Commission
Arrangements for forwarding aggregated data to the Certifying Authority in case of decentralised system
The link between accounting system and the information system to be set up (point 6)
Identification of Structural Funds transactions in case of common system with other funds
The level of detail of the accounting system:
Total expenditure by priority and for each Fund
Allocation of the available Community and national funds

16. Organisation of the Certifying Authority
Recoveries
Description of the system for ensuring the prompt recovery of Community assistance
Arrangements made to maintain a debtors’ ledger and to deduct amounts recovered from expenditure to be declared
(combined with the example)

17. Audit Authority And Audit Bodies
(Description of the main tasks and interrelationships of the Audit Authority and audit bodies under the responsibility of the Audit Authority)
Organisation of the Audit Authority and audit bodies under its responsibility
Organisation charts (including the number of posts attributed)
Arrangements for ensuring the independence
Staff qualification
Written procedures/manuals laid down for all audit work (date and reference)
Description of procedures for the follow up of the findings and recommendations made in audit reports
Description of the procedures (where appropriate) for the supervision of the work of other audit bodies under the responsibility of the Audit Authority

18. Audit Authority And Audit Bodies
Annual control report and closure declaration
Description of the procedures for preparation of the annual control report, annual opinion and closure declaration.
Designation of the coordinating audit body
Description of the role of the coordinating audit body, if applicable

19. Bodies involved in FM by national arrangement
Certifying Authority and Competent Body for Payment
Audit Authority (other audit bodies)
Managing Authority
Intermediate Body
Paying Unit
Beneficiary
others?

20. Bodies involved in FM by national arrangement
Operational programme
Managing Authority
Intermediate Body
Fund
Increase of Economic Competitiveness
Ministry of Economy and Trade
National Agency for Small and Medium Sized Enterprise and Cooperatives
Ministry of Education and Research (Research Department)
Ministry of Communication and Information technology
Ministry of Economy and Trade (Energy Policy general Directorate)
National Tourism Agency
ERDF
Transport Infrastructure
Ministry of Transport Construction and Tourism -
ERDF+CF
Environment Protection
Ministry of Environment and Water Management
Regional Environment Protection Agencies
Regional development
Ministry of European Integration
Regional development Agencies
Human resources development
Ministry of Labour, Social Solidarity and Family
National Employment Agency
Ministry of Education and research (Department of Education)
ESF
Administrative Capacity Development
Ministry of Administration and Interior
ERDFESF
Technical Assistance
Ministry of Public Finance
Cross Border Cooperation (OP for each border)
Ministry of European Integration (with the exception of RO-HU)

21. Bodies involved in FM by national arrangement
Certifying Authority
Paying Unit
Audit Authority and other audit bodies
To prepare a similar set up for the financial management and control bodies
Combination with the Slovak case