Click to edit Master title style 1 In the run-up to closure Main tasks for managing authorities, paying authorities and winding-up bodies European Commission Thomas BENDER, DG Employment, Social Policy & Equal Opportunities

2 Experience of previous closures shows the importance of anticipation and planning. Presentation concentrates on the main lines of closure : the next important steps – including the deadlines - and the changes compared to day to day implementation. => Lay out: next steps and their deadlines, consequences of delays, n , recommendations. Closure Purpose of the presentation

3 Closure Back to the future Implementation of last operations Final date eligibility of expenditure Administrative process of closure: Final report Winding Up Declaration Statement of final expenditure Conservation of supporting documents 15 months Transmission closure documents Closure bv Comm. 3 years End of conservation period

4 Final date of eligibility of expenditure = date by which: –the expenditure has to be incurred –by the final beneficiary => importance to define the final beneficiary. Laid down in the Programme Decision: Generally, 31 Dec. 2008, but 30 Apr for expenditure incurred by bodies which grant the aid under Article 9(l) of Regulation 1260/99 Possible to have several final dates of eligibility within the same programme according to the type of final beneficiary. Closure Final date of eligibility of expenditure 31/12/0830/04/09 Final date of eligibility or

5 The final beneficiary: Defined in Article 9 (l) General rule: « bodies and public or private firms responsible for commissioning operations » Specificities in the case of state aid schemes and aid granted by bodies designated by the Member States: bodies which grant the aid NOT the final recipient of the aid! Due to the impact on the final date of eligibility important to clearly define the final beneficiary in the Programming Complement (before the final date of eligibility). Closure Next steps: Final date of eligibility of expenditure

6 Practical consequences of the definition of the final beneficiary: Closure Final date of eligibility of expenditure « Usual » case such as grants directly implemented by the final beneficiary and public tenders 1. Expenditure to be incurred (paid) by 31 December 2008 by the final beneficiary who is also the final recipient. Specific cases state aid / aid granted by bodies designated by the Member State 1. Expenditure to be incurred (paid) by 30 April 2009 by the final beneficiary who is different from the final recipient. 2. The expenditure has also to be incurred by the final recipient by 30 April 2009.

7 Case of technical assistance: In what concerns the final eligibility date the same rules apply. BUT for ESF/ERDF, after final date of eligibility it is possible to finance closure administrative steps with technical assistance of OPs IF: 1.Expenditure eligible to the OP (including national rules) 2.The OP is a continuation of the OP (automatic for mainstreamed Community Initiatives) Closure Final date of eligibility of expenditure

8 Extension of the deadline possible in three cases: 1.Significant changes in the socio economic situation and the labour market 2.Cases of force majeure 3.Manifest error attributed solely to the Commission Specific and properly grounded request by the MS before deadline for eligibility of expenditure. Examined by the Commission on a case by case basis depending on the causal link between the justification and the proposed extension. In order to prevent legal uncertainties requests should be submitted as soon as possible. Closure Final date of eligibility of expenditure 31/12/0830/04/09 Final date of eligibility or

9 Modification of programmes : before the final date of eligibility no modification of the financing plan of the programme decision since 31/12/2006 Modification of programme complements: to be approved by Monitoring Committee before the final date of eligibility and submitted to the Commission within one month of their approval by the Monitoring Committee. => Still possibilities to « optimise » the closure by anticipation of potential problems that could be faced with modifications of the Programming Complement or the programme. Closure Next steps: Modification of programmes and PCs Final date of eligibility (FDE) 31/12/08 or 30/04/09 Modifications

10 -Automatic decommitment rule for 2006 will NOT be applied by 31 December more time for national authorities to make checks & send the claim -BUT no additional time for final beneficiaries to spend money Closure SF: Automatic decommitment 2006

11 What is possible after final date of eligibility? Still possible to certify expenditure -But if the 95% threshold of payments by the Commission is reached, the Commission will not issue any payments until final payment. Certification of expenditure by the national authorities and related payments by the authorities. Closure Next steps: After final date of eligibility FDE Closure docs (FDE + 15m) <31/03/10 or <31/07/10

12 Deadline for submission Deadline for submission: – 15 months after final date of eligibility of expenditure – if different final dates of eligibility for a Fund, the last of these dates will be used to calculate the 15 months deadline Closure documents SF: – Certified statement of final expenditure – Final report (approved by Monitoring Committee ) – Winding-up declaration Consistency between documents Closure of multi-fund programmes possible by Fund: send the documents as soon they are ready Closure Next steps: Submission of closure documents FDE Closure docs (FDE + 15m) <31/03/10 or <31/07/10

13 Warning letters will be sent to MS before the 15 months deadline is reached. Closure on the basis of available documents Automatic decommitment Financial corrections Closure Consequences of non- submission of closure documents

14 Start planning as early as possible Tight monitoring of important operations Cofinancing rate by measure to be verified and anticipated Timely identification of interpretative and qualitative problems Preparation of high quality closure documents Timely submission of closure documents Coordination in the MS between the bodies in charge of preparing closure Communication with the Commission to prevent delays Make sure that audit and controls are being done properly and well in advance of closure Follow up and update of irregularities communicated to OLAF Closure Recommen- dations

15 Guidance documents: Structural Funds Closure Guidelines adopted in August 2006 (Decision C(2006) 3424) amended by Decision of April 2008 Closure Guidance documents

16 THANK YOU FOR YOUR ATTENTION!