1. Structural Funds Financial management and Control, Romania
1.1 Introductions
Structural Funds Financial management and Control, Romania
System of Payments
Mgr. Danka Kovaľová
June 2006

2. FM – Budget Commitments
Effected annually for each Fund and objective in the OPs
First budget commitment – before the OP approval by the Commission
Following commitments – by 30 April each year
Transfer from national contingency reserve to other OP upon request by the MS – by 30 September of the year n

3. FM – Rules for Payments I
Forms of Payments:
Pre-financing
Interim payments to apply co-financing rate
Payment of the final balance to apply co-financing rate
Community Contribution (IP, FP) ≤ Public contribution and max. assistance amount for each priority axis
Forecast of likely payment applications submitted to the Commission by MS – by 30 April every year (for n & n+1 year) (see form 1)

4. FM – Rules for Payments II
Statement of Expenditures (by priority axis)
Total amount of eligible expenditures and corresponding public contribution
Expenditure paid by beneficiaries – justified by invoices or accounting documents of equivalent value (documents kept by the beneficiary)
(see Form 2)
Partial / final closure of OP
(see Form 3)

5. FM – Rules for Payments III
Accumulation of pre-financing and of interim payment
shall not exceed 95% of the Funds’ contribution to the OP
When 95% reached – the CA continues transmitting to the Commission:
Certified statement of expenditure on 31 December of the year n
Amounts recovered during the year for each Fund
no later than by the end of February of the year n+1

6. FM – Rules for Payments IV
Use of Euro
Amounts of expenditure incurred in national currency – to be converted to euro
Exchange rate used: monthly accounting exchange rate of the Commission in the month during which the expenditure was registered in the accounts of the CA of the OP concerned
This exchange rate – to be published by the Commission each month

7. FM – Rules for Payments V
Pre-Financing
Payment – 5% (2% in 2007, 3% in 2008) of SF
or 7% (2% in 2007, 3% in 2008, 2% in 2009) of SF;
7,5% (2%, 3%, 2.5%) of CF
or 10.5% (2.5%, 4%, 4%) of CF
Interest – posted to the OP concerned being regarded as resource for MS as national public contribution / declared to the Commission at the time of the final closure
Interim Payment (form 2)
Payment of Final balance (form 2)
Programme Closure (from 3)

8. FM – Rules for Payments Va
Interim Payment (form 2) made by the Commission upon
Submission of Payment application and a statement of expenditure
No more than max. of assistance approved for OP has been paid by the Commission during the whole period for each priority axis
Submission of the most recent annual implementation report
No opinion by the Commission in respect of an infringement
If at least one condition is not met – EC informs MS in one month
1st interim payment - within 2 months of the date of receipt of the report on the assessment of the setting up the management and control – if no reservations
Other payments – within 2 months

9. FM – Rules for Payments Vb
Programme Closure (form 3)
Partial closure made upon the following conditions:
Statement of expenditure for the operations completed up to 31 Dec. of the previous year
Declaration for partial closure assessing the legality and regularity concerned - prepared by the Audit Authority
Conditions for the payment of the Final Balance
MS submitted the payment application by 31 Dec. 2017
Application for payment of the final balance and statement of expenditure
Final implementation report for OP (MA)
Closure declaration (AA)
Failure in submitting – automatic decommitment of the final balance
EC opinion - within 5 months, payment in 45 days

10. FM – Rules for Payments VI
Interruption of payments
By the delegated authorising officer for a maximum period of six months
MS informed immediately and takes the necessary measure for correction
Suspension of payments
by the Commission: all or part of interim payments at the level of priorities or programmes
MS gets the opportunity to presents its observation and takes the necessary measure for correction

11. FM – Rules for Payments VII
Automatic decommitment
any part of a budget commitment in an OP not used for payment of the pre-financing or interim payments or not applied for
The part of commitments still open on 31 December 2015 – if no application for it by 31 March 2017
Extension of automatic decommitment when GR enters into force after 1 January 2007

12. Request for payment - Beneficiary
Summary Request
for
Payment-B
Request
for
Payment-B
Request
for
Payment-B B MA
IB/MA PU PA

13. Financial flows
EC Funds
EC Funds PA PU B
Co-financing from SB

14. Types of financing
Prefinancing – granting of financial resources from state budget to the beneficiary from public sector for reimbursement of initial commitments toward a supplier within the due date based on submission of the accounting documents issued by the supplier
Payment on account – once project implementation has been started, final beneficiary from the public sector (ESF) will request IB/MA for payment on account in compliance with agreement conditions.
Refunding– providing the funds to the final beneficiary from EC sources as an addition to his disposable sources, on the basis of submitted accounting documents

15. ERDF
private sector public sector
-refunding prefinancing
- refunding
ESF
private sector public sector refunding payment on account

16. System of the financial flows (B from the private sector)
profitable projects
Types of projects
non-profitable projects
Non-profitable projects:
a) Non-government organizations:
- refunding of 100% eligible expenditures from the sources ESF+ SB
- refunding of 95 % eligible expenditures from the sources ERDF+SB
b) Enterpriser, which implements non-profitable project out of the competition
- payment is reimbursed up to the amount of 95% eligible expenditure from the sources EC+ SB
- sum up by the sources of the Final Beneficiary in the amount of 5%.

17. System of the financial flows (B from the private sector)
Profitable projects:
Assistance is provided with regard to state aid scheme for the relevant measures or sub-measures of the program documents in compliance
Assistance is provided with regard to state aid by the means of non-repayable financial contribution, which includes EC sources and SB sources.
non-repayable financial contribution is not to be provided as an payment on account, but refunding, on the basis of submitted documents which will prove factual amount of eligible costs.

18. System of the financial flows (B from the public sector)
Projects from the public sector::
Each payment is reimbursed only up to total amount of EC sources + state budget (95%), i.e. - sum up by the sources of final beneficiary in the amount of 5%
2 periods:
prefinancing period or payment on account – release of expenditure from the state budget
refunding period from the EC resources

19. Cofinancing strategy It has been settled:
contribution of EC sources on total eligible costs in the maximal amount
maximal intensity of state aid
Contribution of final beneficiary sources (except state administration entities) on co-financing in the amount of 5 % from the total eligible costs in case, where state aid rules are not applicable