Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa nkb Financial Management : the n+2 rule Organised by DG REGIONAL POLICY Michael Hill Regio.G1

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Financial Plans of SF programming documents: Commitments in the EC Budget covering 2004, 2005 and Total annual amounts fixed at the Copenhagen European Council Figures in current prices still to be communicated by the Commission

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Financial Plans of SF programming documents: Payments on the ground from date of eligibility until end Date of eligibility can be 1 January 2004 Reimbursements are the general rule

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Financial Plans: Reimbursements % advance 10 % advance paid after signature of decision in 2004 Remaining 6% of advance in 2005 on 2004 commitment 6 % advance Reimbursements All payments made from oldest commitment Final payment Reimbursements

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Financial Plans: % advance 6 % advance Reimbursements Payments until 2007 Payments until 2008 N + 2 Final 5% Automatic decommitment of any part not paid out after n+2 Final 5% of total assistance held until closure Reimbursements

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Exceptions to the n+2 rule Subsequent Decision by the Commission during the lifetime of an OP/SPD: (article 32§2.2): state aids; major projects Operations subject to a judicial procedure (article 32§2.3)

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Article 32 (Structural Funds Regulation 1260/99) All or part of a payment on account … shall be repaid to the Commission … if no payment application is sent to the Commission within 18 months of the decision …

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Article C § 5 of the Annex of the Cohesion Fund Regulation: m+24 rule Except in duly justified cases, the assistance granted to a project, group of projects or project stage on which work has not begun within 2 years from the date of its expected start as indicated in the decision granting assistance or the date of its approval if later, shall be cancelled.

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa Summary - the crucial role of the managing authorities Programming of the SF and the CF according to the different rules: n+2 / m+24 Start preparing measures and projects now Eligibility from 01/01/2004 (if EC rules followed) IT systems Programme complement = keep the structure simple Programme complement = flexibility between measures Co-financing : reimbursement is the rule > the need to find the financial means to pay the bills

Meeting of 9 and 10 April Financial rules of the Structural and Cohesion Funds DG Regio - Ispa The End Questions