Coordination Meeting of the EQUAL MAs

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Launch Meeting of the Contact Persons of the
European Globalisation adjustment Fund 01 March
2007 Hotel Bedford, Brussels
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Nikolaus van der Pas Director General of
DG Employment, Social Affairs and Equal
Opportunities
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Directorate General for Trade
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Directorate General for Enterprise and Industry
See separate Slide Show
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Introduction to the EGF
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EGF Application Form
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(No Transcript)
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(No Transcript)
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(No Transcript)
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(No Transcript)
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EGF Guidance for Applicants
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(No Transcript)
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(No Transcript)
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Time line in the Member State
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The Member State
4 months / 9 months
10 weeks
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The Employer
Notification
Contemplation
Dismissals
Information
Consultation
Search for solutions
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Employers
Member State
4 or 9 months
etc
Notification Enterprise 3
Notification Enterprise 2
1,000 redundancies
Notification Enterprise 1
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The Commission
The Member State
Application
Preparation
Implementation
Final Report
Winding up
6 months
6 months
12 months
10 weeks
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• Time line in the European Institutions

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• Preparatory phase Assessment of application by
  Commission services in consultation with Member
  State (Art. 5.5 of EGF Regulation)
• 4 weeks

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• Proposal from Commission to Budgetary Authority
  (Art. 12.3)
• 10 to 11 weeks
• Approval by Budgetary Authority
• 7 weeks minimum, except for requests made in
  August

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• Adoption by Commission of Financing Decision
  (Art. 12.7 of EGF Regulation)
• 1 to 2 weeks
• Transfer of the funds from the reserve to the EGF
  budget line
• 1 week

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• From commitment of the funds until receipt of the
  amount on the Member States account
• 2 weeks
• Total period (from the formal submission of
  application)
• 26 to 31 weeks (at least)

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• Essential conditions to meet
• time line
• Formal application contains all necessary
  information
• Formal application does not require translation

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Monitoring and Evaluation Olivier Rouland DG
Employment Unit I/4
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• Legal Requirements
• Commission will carry out, in close cooperation
  with Member States
• Mid Term evaluation by the end of December 2011
  
• Ex Post evaluation by the end of December 2014

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Evaluation Questions Mid Term Evaluation
effectiveness and sustainability of results Ex
Post Evaluation Impact and the Added Value of
the EGF
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Total Of which female
Number of participants Employed
Of which Self employed
Unemployed
Inactive
Of which in Education or Training
Age Young people (15 24)
Older workers (55 64 years)
Vulnerable Groups Minorities
Migrants
Disabled
Others
Education Attainment Primary of lower secondary education (ISCED 1 and 2)
Upper secondary education (ISCED 3)
Post-secondary non tertiary education (ISCED 4)
Tertiary education (ISCED 5 and 6)

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Transmission When With the Final Report,
except for LM Status (12 months) What
Quantitative data and Qualitative Notes How
Table included in Final Report Electronic
Datasheet
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Audit Vincent WiddershovenDG Employment Unit I/2
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• Audit of the European Globalisation Adjustment
  Fund
• Legal basis
• Article 18 of Regulation (EC) N 1927/2006
• management and financial Control
• Article 19 of Regulation (EC) N 1927/2006
• reimbursement of financial contribution

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• Audit of the European Globalisation Adjustment
  Fund
• Shared management
• common objective for Member States and the
  Commission
• Interdependence
• transparency

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• Audit of the European Globalisation Adjustment
  Fund
• Risks in case of absence of audit and control
• absence of supporting documents
• payments outside period of eligibility
• breaches of public procurement rules
• non deducted revenues
• lack of follow up of irregularities
• ineligible expenditure
• multiple payment of the same costs
• lack of appropriate separation of functions
• weak controls by management and payment
  authorities

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• Audit of the European Globalisation Adjustment
  Fund
• Responsibility in first instance for the Member
  State
• verifying that management and control
  arrangements have been set up and are being
  implemented
• verifying that the financed actions have been
  properly carried out
• ensuring that expenditure funded are based on
  verifiable supporting documents, are correct and
  regular

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• Audit of the European Globalisation Adjustment
  Fund
• preventing, detecting and correcting
  irregularities and recovering amounts unduly paid
  together with interest on late payments
• ensure that actions receiving a contribution
  under the EGF shall not also receive assistance
  from other Community financial instruments (art.
  6(5))
• present a report to the Commission on the
  execution of the financial contribution together
  with a statement justifying the expenditure (art.
  15(1))

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• Audit of the European Globalisation Adjustment
  Fund
• Responsibility of the Commission
• Satisfy itself that Member States have put in
  place
• smoothly functioning management and control
• systems
• check actions financed by EGF on the spot
• - apply financial corrections (article 19)

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• Audit of the European Globalisation Adjustment
  Fund
• Objective of audit activity of the Commission
• Gain reasonable assurance that final payments
  were
• made on the basis of eligible expenditure

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• Audit of the European Globalisation Adjustment
  Fund
• How to get reasonable assurance
• Check whether Member State has implemented
  efficient management and control procedures
  (assessment of systems descriptions)
• Closure audits

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• Audit of the European Globalisation Adjustment
  Fund
• Assessment of systems descriptions
• a) Member State uses ESF-management and control
  systems
• - rely on audit work already undertaken by
  the
• Commission
• - sufficient to do substantive testing in
  order to check whether systems worked as
  described
• and closure audits

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• Audit of the European Globalisation Adjustment
  Fund
• b) Member State uses other systems
• Commission to check whether the system
  fulfils
• minimum requirements
• The general key requirements
• a clear definition and clear allocation of
  functions
• an adequate separation of functions (as necessary
  to ensure sound financial practice)
• reporting requirements on intermediate bodies on
  performance of functions

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• Audit of the European Globalisation Adjustment
  Fund
• Essential elements
• verification procedures at the management level
• certification of expenditure statements by a
  functionally independent person or department
• verification of the effectiveness of the
  management and control systems and checks

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• Audit of the European Globalisation Adjustment
  Fund
• Additional elements
• provide a detailed description of the management
  and control systems
• to be assessed by the services of the Commission
• include all relevant bodies
• in particular the description has to specify for
  each body the functions vested in them
• to be updated or completed on a regular basis,
  and indicated in the annual report

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• Audit of the European Globalisation Adjustment
  Fund
• management and control systems must ensure a
  sufficient audit trail which permits
• reconciliation of the summary amounts certified
  to the Commission with the individual expenditure
  records and supporting documents, and
• verification of the allocation and the transfers
  of the available Community and national funds.
• specify the arrangements for the retention of
  supporting documents

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• Audit of the European Globalisation Adjustment
  Fund
• Verify the reliability of the statement of
• expenditure (closure audit)
• did Member State carry out controls
• was closure process carried out in a correct
  manner
• - is the statement of expenditure legal and
  regular

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• Audit of the European Globalisation Adjustment
  Fund
• Audit strategy for the years 2007-2008

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• Audit of the European Globalisation Adjustment
  Fund
• Audit methodology (to be developed)
• risk analyses
• selection methods
• contradictory procedures
• financial corrections