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FINANCIAL MANAGEMENT - REGULATIONS PLANNED BY EC
FOR 2007-2013 - CLOSURE OF ASSISTANCE FOR
2000-2006 by Elfriede Kober
HOW TO PAY AND GET PAID
3rd Workshop in the frame of Iq-Train module 4
Financial Management 09 September 2005,
Portoro, SI
The project Iq-Train is funded by INTERACT, which
is part of the Community Initiative INTERREG.
INTERACT is financed by the European Regional
Development Fund (ERDF). This project addresses
priority 3 Measure 2 of the INTERACT Programme.
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Iq-Train Financial Management Regulations
planned by EC for 2007-2013Closure of
assistance for 2000-2006
Mag. Elfriede Kober, ERP-Fonds Portoro, Sept. 9,
2005
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Regulations concerning financial management in
2007-2013

• General provisions
• One account per Programme
• Advanced Payment 7 of total EU-funding for
  Programme
• - Interest income of advanced payment
  resource for Member State
• Reimbursement system as in period 2000-2006
• - Application for payment Statement of
  expenditure is sent to EC - EU co-financing
  rate may not be overdrawn (priority level)
• - Reimbursement in July depending on annual
  report
• Desire of fixed Applications for payments 3
  times a year
• - liquidity cannot be ensured at any time
• - consequently pre-financing of EU-funding by
  national public funding will be necessary
  (!!)

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Regulations concerning financial management in
2007-2013

• General provisions
• Advanced payment within ? months after
  Programmes approval
• For receiving money in the same year Application
  for payment has to be transmitted till end of
  October
• Reimbursement by EC within 2 months (depending on
  funds available)
• n2 rule -gt non-fulfilment results in a
  decommitment
• Final 5 have to be pre-financed by the Member
  State
• Reimbursement of last 5 only after verification
  of closure documents by EC
• - closure documents have to be sent to EC in
  time
• - otherwise decommitment of final balance

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Regulations concerning financial management in
2007-2013

• General provisions
• Taking into account results of audits carried out
  (Independent financial control, audits by
  EC,...)
• Suspension of payments/reimbursements by EC
• - serious deficiency in the management
  control system
• - serious irregularities

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Regulations concerning financial management in
2007-2013

• Tasks of Certifying Authority (relevant for
  financial flows)
• Submitting Statement of expenditures
  Applications for payment
• Ensuring sound efficient implementation (1st
  level control)
• Taking into account results of audits carried out
  (Independent financial control, audits by
  EC,...)
• Keeping an account of recoveries repayments
• Ensuring electronically data transfer to EC
  (flat-files)
• Sending Forecasts to EC till end of February,
  latest (each year)

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Regulations concerning financial management for
2007-2013

• Recoveries
• Decision on recoverys amount deadline has to
  be exact and clear for project owner
• Interest has to be demanded, at least if deadline
  will be extended (it is possible that interest
  has to be demanded for each recovery)
• IBs have to steer open recoveries
• Certifying Authority needs exact information on
  all open recoveries effected payments
• Information on open recoveries, split up per year
  of deadline, is demanded by EC (yearly reports
  till April for the previous year)

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Guidelines on closure of assistance for 2000-2006

• General provisions financial plans commitments
  
• Changes of financial plans of CIP (priorities)
• - have to be sent to EC till 30.9.2006 (demand
  of AT, end of 2006)
• Changes of financial plans of PC (measures)
• - possible till end of 2008
• - attention no influence on decided financial
  plans of priorities
• Approvals on commitments can be taken till 2008,
  but take care about possible project
  implementation till end of 2008, too.
• Extension of deadline only in case of force
  majeure or an error by the EC

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Guidelines on closure of assistance for 2000-2006

• Documents, demanded for Programmes closure
• Final statement of expenditures final
  application of payment (Paying Authority)
• List of effected open recoveries (incl.
  deadline)
• Final implementation report (Managing Authority)
• Winding-up declaration (Independent Financial
  Control)
• Deadline for submitting documents June 30,
  2009(in case of co-financed state aid schemes
  Sept. 30, 2009)
• No annual report is demanded for 2008 (but for
  2007)

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Guidelines on closure of assistance for 2000-2006

• Unfinished non-operational projects
• 2 approaches
• Projects, which will be finalised within 2 years
  after 2008 and not co-financed in the next period
• - Info to EC after 2 years on implementation
  progress (if not operational -gt financial
  correction, repayment of EU-funding)
• - have to be sent to EC till 30.9.2006 (demand
  of AT, end of 2006)
• Projects, which will be co-financed in the next
  period
• - demonstrate the 2 phases of homogenous
  project implementation
• - it has to be ensured that no costs are
  co-financed twice

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Guidelines on closure of assistance for 2000-2006

• Some special facts
• Documents not sent in time
• - EC closes the Programme on its own, this is
  generally combined with a financial
  correction
• To ensure correctness of data in Monitoring
  system List of projects will be transmitted to
  IB for checking signing
• Part closures are not possible -gt quick
  co-operative execution of work is necessary (all
  are depending on each other)
• Interest on Programme account revenues of
  Member State
• - Means should be used for the same goal as
  EU-funding
• - Info regarding the use of them has to be
  included into the final statement of
  expenditures

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Guidelines on closure of assistance for 2000-2006

• Calculation of final EU-contribution to the
  Programme
• The lowest amount of
• Programme level paid EU-funding
• Priority level amount stated in financial plan
  2 (demand of AT 10)
• Measure level the smaller of the 2 following
  ones
• - declared total eligible expenditures
  multiplied by EU-co-financing rate
• - paid EU-funding
• Important Take care that EU co-financing rate
  is never overdrawn (measure level)
• Repaid amounts after finalising closure (the last
  5 or less are reimbursed
• by EC) have to be transferred to EC -gt 3 years
  after closure (ATs demand)

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Thanks for the attention Looking forward to
further questions discussion