1. 1 Reporting data on irregularities European Union Cohesion Policy Leif Högnäs REGIO J1 Technical Meeting on Closure 2000-2006, 11 December 2009

2. 2 Contents: 1.MMSS irregularity reporting obligations under Regulation 1681/94 as amended by Regulation 2035/2005 2.Corrective actions by MMSS following detection of irregularities through audits 3.WUBs tasks at closure in relation to irregularities Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

3. 3 MMSS irregularity reporting obligations under Regulation 1681/94 as amended by Regulation 2035/2005 Reporting serves ECs financial follow-up tasks 1) MMSS must recover unduly paid amounts 2) EC checks that recoveries have been duly deducted 3) Replies to the EP and the ECA OLAFs intelligence analysis purposes Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

4. 4 MMSS irregularity reporting obligations under Regulation 1681/94 as amended by Regulation 2035/2005 1)Reporting threshold: EC amounts above 10,000 2)Exemption from reporting does not preclude Member States from their obligation to pursue and correct any irregularity irrespective of its nature or financial volume (see article 39(1) of Regulation (EC) No 1260/1999) 3)Other reporting exemptions 4)Follow-up reporting 5) « Article 5.2 requests »: Amounts which can not be recovered or are not expected to be recovered Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

5. 5 Provisions related to reporting on withdrawals, recoveries and pending recoveries: Regulations 438/2001 and 448/2001: information on individual recoveries with each payment claim (recoveries appendix to Annex II to Regulation 438/2001 reports on withdrawals (Article 3(2) of Regulation 448/2001) and pending recoveries (Article 8 of Regulation 438/2001) were due once a year with the fourth quarterly report on irregularities to OLAF Since 2006 – « single package reporting »: As from the 2006 financial year the Commission requested the Member States to send it data on withdrawals, recoveries and pending recoveries once a year in a single package as well as the cumulative amounts of withdrawals and recoveries since the beginning of the programme period. Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

6. 6 Article 8 of Regulation 438/2001 and Annex 2 point 1.2 of the Closure guidelines: summary table of irregularities Mirror of the debtors ledger maintained under Article 8 of Regulation 438/2001 Aggregate data on amounts not communicated must also be indicated. Sound financial management and transparency. Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

7. 7 Article 8 of Regulation 438/2001 and Annex 2 point 1.2 of the Closure guidelines: summary table of irregularities Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

8. 8 Corrective actions by MMSS following detection of irregularities through audits 1) Sample checks under Article 10 of Regulation 438/2001 –irregularities detected should have been excluded from co-financing –any systemic errors: further checks were carried out to determine and quantify the extent of the problem –if the error rate in the sample is above 2 %, further checks were carried out to determine and quantify the extent of the problem 2) EC and ECA audits (and OLAF investigation cases) –recommendations should have been dealt with and irregularities detected should have been excluded from co-financing Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

9. 9 WUBs tasks at closure in relation to irregularities To state whether errors and irregularities have been treated satisfactorily, which means 1)Where necessary, irregularities have been reported in line with Regulation 1681/94 as amended by Regulation 2035/2005 2) The error/irregularity has been corrected a) by deduction from payment claim or b) proceedings for recovery of undue payments have been taken which will end up in either repayment to the Commission of EC amounts recovered or if irrecoverable Article 5.2 decision on allocation of financial liability 3) For systemic errors/irregularities, measures have been taken to identify all other cases and to make the corrections necessary or to take appropriate proceedings for recovery 4) If absence of satisfactory treatment, opinion will have to be qualified Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

10. 10 WUBs tasks at closure in relation to irregularities To state whether the frequency of errors and irregularities is low/high: 1) Affects the opinion to be given. High frequency of errors, no opinion. 2) The materiality level should generally not exceed 2 % 3) Over and above the error rate in the Article 10 sample, take into account also errors and irregularities detected through EC and ECA audits Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

11. 11 WUBs tasks at closure in relation to irregularities To ensure that: 1)The summary table on irregularities is provided 2) A list of cases or error/irregularity treated as systemic and the amounts affected is provided Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy

12. 12 MMSS irregularity reporting obligations under Regulation 1681/94 as amended by Regulation 2035/2005 Corrective actions by MMSS following detection of irregularities through audits WUBs tasks at closure in relation to irregularities Questions…? Technical Meeting on Closure 2000-2006, 11 December 2009 European Union Cohesion Policy