1 FINANCIAL CONTROL OF STRUCTURAL FUNDS Nicholas MARTYN European Commission DG Financial Control 5June 2000

2 PARTNERSHIP BETWEEN MEMBER STATES AND COMMISSION (1) Cooperation to ensure: Respect of principles of sound financial management Adequacy of systems for decentralised management of community funds

3 PARTNERSHIP BETWEEN MEMBER STATES AND COMMISSION (2) Cooperation to coordinate è Plans è Methods è Implementation of checks Exchange of results of checks

4 PARTNERSHIP BETWEEN MEMBER STATES AND COMMISSION (3) Annual examination/evaluation of results of è checks è irregularities Working together to ensure that objectives of R 2064/97 are achieved

5 CONTROL RESPONSIBILITIES OF MEMBER STATES (1) General responsibility in the first instance for the financial control of programmes Verifying the effectiveness of management and control arrangements (Efficient and correct use of EC funds)

6 CONTROL RESPONSIBILITIES OF MEMBER STATES (2) Ensuring application of community rules and principles of sound financial management Preventing, detecting and correcting irregularities Recovering amount lost

7 CONTROL RESPONSIBILITIES OF MEMBER STATES (3) Controls of operations è 5% of total eligible expenditure Presenting closure declaration

8 CONTROL RESPONSIBILITIES OF MEMBER STATES (4) Carrying out corrective measures requested by commission Ensuring availability of all supporting documents

9 CONTROL RESPONSIBILITIES OF COMMISSION (1) Ensuring that member states have smoothly functioning management and control systems (efficient and correct use of EC funds) Carrying out on the spot checks on operations and on management and control systems

10 CONTROL RESPONSIBILITIES OF COMMISSION (2) Requiring member state to carry out an on the spot check Requesting member state to remedy management shortcomings and correct irregularities