On the spot checks Double financing prevention administration processes Simona Liutkienė, Vaida Zigmantaitė 1 February, 2012

On the spot checks At least one on the spot check must be carried out during the project implementation period. Exceptions: Implementing bodies have the opportunity to perform on the spot verifications to a sample of operations. On the spot check is not required if the goal of the project is to prepare documentation. Managing body by the order of the Minister of Finance approve checklist of on the spot checks.

On the spot checks For the meantime only one Agency performs on the spot verifications to a sample of operations. Percentage rate varies depending on the risk level. High (3 rd risk level, construction work, equipment expenses more than EUR) – 100% Intermediate 1 st risk level – 10% (projects under measure) 2 nd risk level – 25% (projects under measure)

On the spot checks Results: Verifications on the spot carried out – 3638 Investigation of irregularities initiated – 113

Double financing According to the Regulation No 1083/2006: “An expenditure co-financed by the Funds shall not receive assistance from another Community financial instrument.” Double financing Double financing could be defined as submission the same item of expenditure to different sources separately in order to obtain financial support from all of them.

The double financing prevention and control system The double financing prevention and control system: to prevent the same expenses being financed twice from different financing sources it is a of procedures, means and tools combined to prevent the same expenses being financed twice from different financing sources. an integrated part of EU Structural funds it is an integrated part of EU Structural funds planning and implementation system and is realised in every stage of the project administration: – Evaluation of the application; – Payment administration; – On the spot checks

Demarcation requirements - Demarcation requirements - Demarcation requirements are the set of requirements stated in laws and other legal documents by identifying the risk of particular measure/area of intervention and setting the demarcation criteria; is a very important part of double financing prevention system - The determination and supervision of demarcation requirements is a very important part of double financing prevention system.

Tools to determine the risk double financing Requirements set up in legal acts (annex of application form); Requirements set up in legal acts (annex of application form); Institutions Procedures and check lists Institutions Procedures and check lists Structural Funds MonitoringInformation system SFMIS Structural Funds Monitoring Information system (SFMIS) Website information

Results of Evaluation of double financing prevention and control system:  Legal basis detailed and unified requirements in the legal regulation  Legal basis – the importance of demarcation of financing sources in the detailed and unified requirements in the legal regulation;  Information without having information about all  Information – very important aspect of double financing prevention and control. It is impossible to identify all possible risks between certain financial instruments without having information about all of them;  Administrative capacity information management and expertise  Administrative capacity – the information management and expertise on the specifics of intervention areas

Results of evaluation (2)  Inter-institutional collaboration  Inter-institutional collaboration – the importance increase especially without having enough means to perform procedures of double financing prevention and control; list of measures (maps of intersections) that has potentially highest risk of double financing  the list of measures (maps of intersections) that has potentially highest risk of double financing. Includes information on : – the areas financed; – the risk of possible double financing and demarcation criteria.

Example of maps of intersections OP priority/meas ure Level of risk 1 OP 4 priority “Fostering administrative competences and increasing efficiency of public administration” Measure VP1-4.1-VRM- 01-V 1 OP 1 priority “Quality employment and social inclusion” Measure VP1-1.1SADM- 02-K Small 1 OP 1 priority “Quality employment and social inclusion” Measure VP1-1.1SADM- 06-K Big OP priority/measure Other financial instrument Level of risk 3 OP 1 priority “Local and urban development, preservation of cultural heritage and protection of nature and its adaptation to development of tourism” Measure VP3-1.2-VRM- 01-R European Agricultural Fund for Rural Development Big Between different OP’s Measures Between OP and other financial support

Steps in the future  Maps of intersectionsintegrated models  Maps of intersections integrated models in SFMIS:  SFMIS interaction with other information systems  SFMIS interaction with other information systems: - pilot project to exchange data between SFMIS and Lithuanian rural development and Central project management agency dealing with Transition Facility, Ignalina Programme, Special Transit Scheme, etc. - to exchange data with other financial instruments.

Division of Managing Operational Programme for Development of Human Resources EU Structural Assistance Management Department Ministry of Finance of the Republic of Lithuania