ROMANIAN PROPOSALS REGARDING FINANCIAL MANAGEMENT Romania-Bulgaria Cross-Border Cooperation Operational Programme Technical Meeting&Joint Approval Committee, Bucharest, 2-3 April 2007

1.Pre-financing; 2.Currency for reporting; 3.Technical Assistance; 4.First Level Controllers; 5.Transferring the Bulgarian co-financing to the Managing Authority.

1. Pre-financing Each Member State will manage their own pre-financing system  RO pre-financing will be given only to the RO Partners (public authorities and NGOs under the condition of respecting the state aid rule).  The programme advanced payment will be 15% of the eligible expenditure of each project, at the moment the Managing Authority signs the contract with the Lead Partner. Condition: the existence of a signed purchase contract at the level of the Lead Partner or the partners involved in the project.

2.Currency for reporting  The financing agreement signed between the MA and the LP shall be concluded in EUR.  Financial reporting shall be performed in national currency (LEI/ LEVA). exchange rate  The amount paid to the LP from the CA shall be in EUR, at the exchange rate from the moment when CA certifies and registers the amount into its accounting system.

 BG national co-financing for TA Priority Axis shall be transferred on an annual basis to the Paying Unit (MEI) using the EUR currency.  Pre-financing for the TA shall be made out of the national co-financing. 3.Technical Assistance

4.First Level Controllers  Joint Control Unit (RO&BG), located in Calarasi; necessary for a common understanding and unitary implementation of the working procedures.  At the beginning, the number of FLC: 3 BG controllers + 3 RO controllers;  FLC for both member states shall be paid out of the Programme’s TA budget;  The MA – Paying Unit shall set out the rules of procedure for the FLC and a timetable for contracting them;

5.Transfer of the Bulgarian co-financing to the Managing Authority  Complication of the financial flow;  Extra costs for the Bulgarian partner, forced to make the exchange euro/leva not only for ERDF but also for co-financing;  The transferring procedure of the national co-financing is not a common practice for the cross border cooperation programmes;  Negative effects on the pre- financing recovery. co-financing will be managed separately, by each partner. RECOMMENDATION EFFECTS ON THE FINANCIAL FLOW

Ministry of European Integration Department for European Territorial Cooperation Delia POPA Public Manager Tel: Multumesc! БЛАГОДАРЯ! Thank you!