Models of simplification of costs and analysis of the relative management and control procedures on the flate rate in compliance with the new EU regulations: comparison and exchange of best practices and guidelines for the negotiation process of programming period UNIONE EUROPEA Fondo sociale europeo Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS OPEN DAYS 8-11 OCTOBER 2012 Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo Progetto Interregionale/Transnazionale sulla SEMPLIFICAZIONE DEI COSTI FSE Firenze, 5 ottobre 2012 CONTEXT AND ORIGIN OF THE PROJECT  Since the beginning of planning ESF , the italian Regions have shown interested to experience these simplifications overcoming the principle of real cost  With adoption of Regulation (EC) n.396/2009, the possibility of using the ESF costs simplification has extended  In the middle of programming period, Italy is among the European countries with more experience on simplification, in fact almost all ROP ESF MA recognize one or more options of simplifications  The draft legislative package on Structural Funds, adopted by EC on 6 October 2011, confirm the rilevance of using options of ESF simplifications for the implementation and control of ESF operations, also for the next period  In this context, Tuscany Region has proposed at the end of October 2011 the interregional/transnational project on simplifications

UNIONE EUROPEA Fondo sociale europeo 21 Regional ESF OPs 15 MAs members of the Inter/Trans Project: - 14 of which using the simplification of costs - 11 of which using the standard scale of unit costs, Lead Region: Tuscany Regions/Autonomous Provinces partners: - Basilicata - Bolzano - Emilia Romagna - Friuli Venezia Giulia - Liguria - Lombardy - Marche - Piedmont - Puglia - Sardinia - Sicily - Trento - Umbria - Veneto Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo GOVERNANCE Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS MEMORANDUM OF UNDERSTANDING inside of which the Administrations are committed to cooperate for the implementation of the project planned actions Coordination/lead Administration is Tuscany Region, the project proponent STEERING COMMITTEE composed by directors, or by delegated officials, competent on the topic and representatives of each partner administration Tasks of the steering committee, with the support of Tecnostruttura: - approving of the working program; - guiding, monitoring and evaluating of the works; - ensuring the systematic and constant information flow on the subject; - identifying and implementing the cooperation action, aimed at exchange and development of products and services of common interest.

UNIONE EUROPEA Fondo sociale europeo AIM OF THE PROJECT - a technical comparison among the MAs of the ESF OP on the use of the simplification options according to the Regulation (EC) n. 396/09; - a facilitation of the exchange of good practices and of experiences among the MAs of the ESF OPs Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS exchange of experiences aimed at highlighting the positive aspects (i.e. advantages in the management, reporting and monitoring) the more critical elements, that still require a comparison for the identification of common solutions, even and especially in perspective programming period

UNIONE EUROPEA Fondo sociale europeo Progetto Interregionale/Transnazionale sulla SEMPLIFICAZIONE DEI COSTI FSE Firenze, 5 ottobre 2012  A major dissemination of simplification principle among Managing Authorities that have not yet experienced any models for the recognition of lump sum costs  Improve top level ESF controls, especially with regard to time savings and the simplification of control procedures  Accelerate financial flows and as consequence improve the ESF use of resources in terms of efficiency and effectiveness  Contribute to share the general considerations regarding the forthcoming negotiations on Structural Funds EXPECTED RESULTS

UNIONE EUROPEA Fondo sociale europeo Progetto Interregionale/Transnazionale sulla SEMPLIFICAZIONE DEI COSTI FSE Firenze, 5 ottobre 2012  The project duration is 24 months (January December 2013)  No specific budget Each MA partner is responsible and covers the costs related to the organization of one or more project activities. Considering the aims of the interregional project of exchange of experiences and good practices among OP ESF MAs, the costs of each partner are potentially 100% eligible for funding under the Axis 5 “Interregionality and transnationality” TIME AND RESOURCES

UNIONE EUROPEA Fondo sociale europeo Progetto Interregionale/Transnazionale sulla SEMPLIFICAZIONE DEI COSTI FSE Firenze, 5 ottobre 2012 PARTNERSHIP In order to develop the cooperation on the theme, the participation to the project is «open». At any time, other Italian and European Administrations (MAs) can join and become partner of the project, in particular for the development of exchange activities and study visits. At the moment, the following steps have been taken to extend the transnational participation: December 2011: note to European Commission (DG Employ – Units E3, E1, H1, H3) December 2011: presentation at the “Sectoral event on simplified costs” - Bruxelles February 2012: presentation at the Conference of peripheral maritime Regions - Florence May 2012 : involvement of italian Ministry of Labour – Esf NOP MA - Bologna June 2012: presentation at the TWG – Bruxelles October 2012: presentation at the “Open Days” - Bruxelles

UNIONE EUROPEA Fondo sociale europeo A final Report for 2012, which includes a summary of the activities carried out during the first year of activity of the project: - Use of Standard scale of unit costs and methodologies: presentation of a synoptic frame of the Regions - Guidelines for the definition of Standard scale of unit costs for the non-course activities - Controls: non-compliance and consequent measures - First considerations on the Regulation proposal Synthesis of the presentations of the regional experiences EXPECTED OUTPUTS Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS … with the support of Tecnostruttura

UNIONE EUROPEA Fondo sociale europeo Document on the methodology of the Standard scale of unit costs The survey gave the following results: 1) All the methodologies have had as a reference the historical data of the training activities (at least two years) 2) 5 regions have made ​​ reference to the historical costs of the final balance controlled, 3 of the budget and 1 of the final balance presented 3) 5 regions use a combination of Standard scale of unit costs hour/course and Standard scale of unit costs hour/student; 4 use them alternately depending on the type of training 4) The types of training taken as reference in the survey are those of the initial and vocational training for young people, training for employees and company, adults learning (higher training or getting a qualitfication) and Higher Education Technical Training. Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo Controls: non-compliance and consequent measures The survey gave the following results: 1) Generally, the Regions deal with the same potential areas of non- compliance (i.e. the publication, selection/requirements of the students, the keeping of the education registers, the disparities in achievement compared to the approved project, etc.). 2) regarding the measures, where possible, the Regions make a curtailment of the Standard scale of unit costs hour/course and/or hour/student corresponding to the Standard scale of unit costs not comply with 3) 2 Regions also include percentage cuts of the total funding approved for types of non-compliance not relatable to the effective execution of the hour/course (Publication, lower level teaching quality, etc.). Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo From the comparison and the analysis of the regional experiences the Guidelines for the definition of Standard scale of unit costs for non-course activities have been developed Employment services, self-entrepreneurship, business support activities EMPLOYMENT SERVICES, the steps: - Shared individuation of the actions - Standard scale of unit costs identified with the service hour of an Operator of the Employment Services - Construction of the unit value of the Standard scale of unit costs: valorisation of the labour costs + accessories costs - The Standard scale of unit costs for the Employment Services is based on the measurement of the quantity of hours of service effectively realized by the operators (front and back- office hours) - System of the services detection that can find all the hours worked by the operator. Appropriate supporting documentation:  registers that demonstrate the services provided with the signatures of the operator and of the user, from which dates and duration of the service provided are deducible as well as a brief description of the service  Report and documentary support of the outcome of the service (i.e. skills balance sheet, report on vocational guidance, etc.) Guidelines for the definition of Standard scale of unit costs for the non-course activities Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS Guidelines for the definition of Standard scale of unit costs for the non-course activities From the comparison and the analysis of the regional experiences the Guidelines for the definition of Standard scale of unit costs for non-course activities have been developed Employment services, self-entrepreneurship, business support activities SELF-ENTRENEURSHIP, only one experience, two possible ways: - Define a common methodology for the construction of its Standard scale of unit costs (following the methods of investigation of the only regional experience), or - Individuate condition and implementation modalities that allow to a MA to adopt Standard scale of unit costs of another region, therefore without making a study BUSINNESS SUPPORT ACTIVITIES: business advice or motivation actions Same methodology indicated for the Employment Services, that is market research for the valorisation of the labour costs + accessories costs (direct instrumental and indirect costs)

UNIONE EUROPEA Fondo sociale europeo Proposal of the European Commission ESF Regulation - Art. 14 Simplified cost options The Regions have agreed to request the inclusion at the end of the first paragraph of an appropriate sentence, taking into proper account the experience already developed also in previous programming Regarding the use of a flat rate of up to 40 % of the eligible direct staff costs may be used in order to cover the remaining eligible costs of an operation, the Regions have agreed to request that the flat rate is defined and fixed (not "up to") and that it will not be supported by a methodology. Regarding the grants of no more than € 50,000, the Regions have agreed to request that this provision remains an option and not an obligation, regardless of whether or not transactions that fall within the aid schemes. FIRST CONSIDERATIONS ON THE PROPOSED REGULATION Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo Proposal of the European Commission General Regulation - Art. 57 Forms of grants The Regions agree on the importance that the method of the determination of Standard of unit costs, lump sums or flat rates are effectively options and not obligations - Art. 58 Flat rate financing for indirect costs for grants The Regions have agreed to request the removal of the reference to the method calculation, in case of flat rates up to 20% of direct costs Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS FIRST CONSIDERATIONS ON THE PROPOSED REGULATION

UNIONE EUROPEA Fondo sociale europeo Some considerations … Importance of: a continuous exchange of experiences and enlargement of the partnership discussion and collaboration with the Leading Ministry and the European Commission capitalization and preservation of experiences in view of the programming so that the simplification of the costs can effectively facilitate a simplified use of the resources, in terms both of management that control Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS

UNIONE EUROPEA Fondo sociale europeo THANK YOU FOR THE ATTENTION GABRIELE GRONDONI TUSCANY REGION Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS Interregional/Transnational Project on the SIMPLIFICATION OF ESF COSTS OPEN DAYS 8-11 OCTOBER 2012