1. MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
MANAGEMENT & CONTROL SYSTEM PROGRAMMING PERIOD 2007 – 2013 CERTIFICATION OF EXPENDITURES
MINISTRY OF ECONOMY & FINANCE
SINGLE PAYING AUTHORITY
Certifying Authority
22/2/2019

2. Management & Control System
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Management & Control System
CERTIFYING
AUTHORITY
COORDINATION
AUTHORITY
Control
Verification
AUDIT
AUTHORITY
Audit
Supervision
Co-ordination
MANAGING
AUTHORITY /
INTERMEDIATE
BODIES
Control
Verification
BENEFICIARY
EXTERNAL
QUALITY
CONTROL
OF TECHNICAL
PROJECTS
Quality Control
PROJECT
22/2/2019
PROGRAMMING PERIOD

3. MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Certifying Authority
Independent Authority under the General Secretariat of Investments & Development
ISO 9001:2000 certified
AUDIT UNIT
On the spot checks
M. A/I.B.
Monitoring of Audit Findings
Management of Projects Quality control
TECHNICAL & ADMINISTRATIVE SUPPORT UNIT
FINANCIAL FLOW UNIT
Payment Requests
Payment Forecasts
Follow up of withdrawals recoveries
Temporary Exclusion of Payments from the Certification
Monitoring and checking of Beneficiaries Payments
22/2/2019

4. Certification of Expenditure
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Certification of Expenditure
Certifying Authority is responsible for drawing up and submitting to the Commission certified statements of expenditure and applications for payment.
The basic aim is that C.A. is able to conclude that it has sufficient assurance to submit to the Commission a certified statement of expenditure that complies with the requirements of the Article 61, EC Regulation 1083/2006.
In order to achieve its role and to draw up reliable statements of expenditure certifying them in accordance with the regulatory requirements, C.A. implicates a total of systems, procedures,
and data.
22/2/2019

5. Certification of Expenditure (Procedures, Systems, Data)
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Certification of Expenditure (Procedures, Systems, Data)
The basic “tools” of the Certifying Authority :
Monitoring Information System (MIS), a key element of the overall Managing and Control System. The use of MIS is mandatory for all involved parties (data and procedures of Beneficiaries and M.A.).
The implementation of specific certification procedure through which the MIS data reliability and the respect of procedures followed by M.A. / Beneficiaries are verified.
The results of on the spot checks to the M.A./Intermediate Bodies, the administrative controls that C.A. performs as well as the results of the projects quality controls proceeding to remedial actions, if necessary.
The results of all audits carried out by or under the responsibility of Audit Authority or other bodies and the corrections imposed, if necessary.
The formal declaration submitted by the Managing Authority at the end of the certification procedure.
22/2/2019

6. MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
MIS Overview
MIS implements all functions and data of Management and Control System. It is about a multi dimension tool (Information System) to serve all needs of an :
Evaluation, Monitoring and Management System
Audit and Control System
Accounting System
22/2/2019

7. MIS Entities and Rights
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
MIS Entities and Rights
Audit Authority
Audits
Certifying Authority
Payment Requests
Payment Forecasts
Follow up of recoveries
Exclusion of Payments
Audits System
On the spot checks:
Managing Authorities
Intermediate Bodies
Projects
Management of Audit results / Verifications & Inspections Findings
Proposals for Exclusions of payments
Management of Projects Quality Control
Monitoring System
Accounting System
Beneficiary
Progress Reports
Declare Expenses
and Monitoring System
Management
and Evaluation System
Programming
Managing Authorities / Intermediate Bodies
Project selection / Approval/Rejection
O.P. evaluation
Annual Report
Publicity
Project Management
Final Beneficiaries guidance & support
Control, verification of Progress Reports
Validation of MIS data
Public procurement
On the spot checks
22/2/2019

8. MIS as an Accounting System
Main characteristics:
The overall amount of financial data is stored (payments, corrections, withdrawals), through specific entries. No compensation of sums is permitted.
The overall procedure is recorded (submission of payment related data by the Final Beneficiary, results of controls from the Managing Authorities).
All corrections resulting from the competent authorities’ controls and inspections are stored and classified.
All data required to provide sufficient audit trail are included
22/2/2019

9. MIS as an Accounting System
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
MIS as an Accounting System
Basic Fields of a typical accounting record OP
PRIORITY
SECTORAL CODE
PROJECT
CONTRACT
PAYMENT REPORT
DATE OF
ACTUAL
PAYMENT
DATE OF
VALIDATION
No OF
CONTRACTOR’S
INVOICE
No OF BENEF.
ACCOUNTING
DOCUMENT
PAID
AMOUNT
ELIGIBLE
AMOUNT
CATEGORY OF
ELIGIBLE
EXPENDITURE
Information to verify that an expenditure actually incurred is reported
Numerous automatic controls are performed, e.g.:
Cross check of the uniqueness of accounting documents
Cross check of eligibility dates
Cross check of the total amount reported with the budget of the project
22/2/2019

10. Management of Audit Results
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Management of Audit Results
Audit Body
validates
Audit Findings MA
VALIDATES
AUDIT
CORRECTION
MIS
automatically
subtracts
corrected
amounts
Statement of
Expenditure
incorporates
the
result
Unduly paid
amount
Any unduly paid amount when validated into MIS is automatically and definitely subtracted from the statement of expenditure
The subtracted amount is released and can be used by other projects
Automatic Recoveries maintenance record
22/2/2019

11. MINISTRY OF ECONOMY AND FINANCE
C.A. Administrative Controls - Monitoring of Audits / Verifications /Inspections Findings
CERTIFYING AUTHORITY
Before the issuing of the certification and further to the automatic checks performed by MIS, C.A proceeds to a series of verifications regarding:
The application of corrections due to audits and inspection results
The quality of MIS data
Cross – checks ( sample cross –checks of the expenditures entered into the Accounting System with Banking data assuring their realization)
The correlation of deliverables with the financial data
The reports regarding the quality control of projects
Any well documented information regarding unsafe payments
22/2/2019

12. Temporary Exclusion of Payments
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Temporary Exclusion of Payments
Based on the results of the Administrative control and on any well documented information regarding unsafe payments C.A. temporarily excludes any payment implying future danger
22/2/2019

13. MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Temporary Exclusion of Payments
Release of payments
Regular payments
Payments
in doubt
The payments are not included in the payment request
Exclusion
Further control
Financial correction
Irregular payments
22/2/2019

14. Standardized Procedure for Certification of Expenditures
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Standardized Procedure for Certification of Expenditures
The basic stages are the following :
- Dispatching of a circular to all involved bodies:
Announcing the program for all O. P.
Underlining the standard obligations of M.A. and imposing additional obligations if necessary
Asking the updating of the audit results from the Audit Authority
Preparatory Stage
Checks and confirms whether all the involved bodies, including Managing Authorities & Intermediate Bodies, have accomplished their tasks and no pending issues exist
Completion of the tasks of C.A. responsibility (Evaluation of Audits/Verifications/Inspections results, quality control of MIS data, cross-checks with the relevant documentation etc)
Assurance that the certification of expenditures includes only regular payments
Completion
Decision making regarding exclusion of payments based on the acquired information by the head of C.A.
Formal Declaration for the specific Payment Request by the head of the relevant Managing Authority
The aim of the payment request procedure is to ensure that C.A. has received all required information and to acquire the required assurance that the expenditures declared are in accordance with the current Community and National rules.
22/2/2019

15. Payment Request Procedure (flowchart)
MINISTRY OF ECONOMY AND FINANCE
CERTIFYING AUTHORITY
Payment Request Procedure (flowchart)
HEAD OF C.A.
DISPATCH OF
CIRCULAR
ADMINISTRATIVE
CONTROLS
C.A.
EXCLUSION OF
UNSAFE
PAYMENTS,
CROSS CHECKS
& PROCESS OF
PAYMENT REQUEST
C.A.
FINAL CHECK
C.A.
CERTIFICATION OF
EXPENDITURES
C.A.
DECISION MAKING
MANAGEMENT OF
AUDIT
FINDINGS
PROPOSAL
FOR EXCLUSIONS
OF PAYMENTS
C.A.
COMPLETION
OF THEIR TASKS
COMMUNICATE
INFORMATION
M.A.
INTERM. BODIES
CONFIRMATION OF
THE DATA OF
THE STATEMENT
OF EXPENDITURES
(FORMAL
DECLARATION)
MANAGING
AUTHORITIES
AUDIT REPORTS
AUDIT AUTHORITY
22/2/2019