1. DAS 2011 Interruptions and Suspensions. > EMPL policy
DAS Interruptions and Suspensions > EMPL policy > State of Play
DG Employment, Social Affaires and Inclusion
Jeroen JUTTE – Head of Unit H1
Brussels, 13 June 2012
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2. DAS 2011

3. New chapter DAS 2011 publication in November 2012
DAS 2010 Cohesion chptr: 7.7% error rate
New DAS 2011:
Chapter 5 ERDF, CF, Transport, Energy
Chapter 6 Social Policy and Employment

4. Sample Sample increased to 180 audits Method: global error rate/180
(from 60)
160 ESF
20 direct management, IPA, EGF
Method: global error rate/180

5. Process with Court Preliminary findings
Reaction MS (2 months) + comments COM
Active cooperation MS - Commission
If appropriate: tripartite meeting
(PT, SI, ES, FR, IT done; LT 15/6, PL 19/6)
Wrap up meeting 21/6
Pre-contradictory chapter 6 on 22/6
Contradictory chapter 6 on 5/7

6. Interruptions, suspensions

7. Context Pre 2008: error rates around 20% 2008: Action Plan adopted
Commitment to Council and EP
Strict line on interruptions and suspensions
Immediate impact on error rates
Significant drop error rate
AAR 2011 estimates error rate 2%-2.5%
Normal absorption

8. Interruption is triggered by:
A negative audit report (category 3/4)
DG EMPL flash report (internal document)
National audit report, ACR with disclaimer, adverse opinions, high error rates
ECA
Evidence suggests significant deficiency in functioning Management and Control System
Information on serious irregularities

9. Deadlines:
Interruption decision is adopted before the expiry of the 2 months payment deadline
The payment deadline is interrupted only once for maximum 6 months
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10. Interruption procedure ends:
Automatically after expiry of interruption deadline; OR
Before the expiry of the deadline:
as soon as necessary measures are taken by MS or
at the date of the adoption of a suspension decision
The discontinuation of the procedure is formalized via a letter signed by the AOD
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11. SUSPENSION

12. Decision adopted by the Commission
Empowerment procedure
Can concern all or parts of interim payments at level of priority axes or programmes
Priority
Intermediate Body
Region
Contradictory procedure
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13. Steps of the procedure:
Pre-suspension letter
Suspension decision

14. Pre-suspension letter is triggered by:
A negative draft audit report containing findings which substantiate:
Serious deficiencies in the functioning of Management and Control System
Information on serious irregularities
Serious breach by MS of its obligations concerning the MCS + preventing, detecting and correcting irregularities
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15. Layout of the pre-suspension letter
Description of the assistance
Procedure
Legal assessment of the findings
Conclusions and next steps of the procedure

16. Important!
Contradictory procedures for pre-suspension letter and draft audit report are merged
MS has two months to reply to the pre-suspension letter + draft audit report (starting receipt date paper version)
An unofficial working language pre-copy can be sent
Extension can be granted only exceptionally in duly justified cases – it may not put at risk the legal delay.

17. Suspension decision (starting from date of notification by Commission)
Suspension decision should
Fully reflect the findings in the pre-suspension letter
Contain interpretation of reply of MS to findings including updates following contradictory procedure
MS has two months to submit observations to suspension decision
(starting from date of notification by Commission)

18. No time-limit for duration suspension of payments
The suspension is discontinued:
where MS has taken all the necessary measures to enable the Commission to lift the suspension
AND
when a financial correction decision is adopted and all the necessary measures have been taken
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19. The discontinuation of the procedure is formalized via a letter signed by the AOD
The letter always contains a disclaimer: the Commission reserves the right to restart the procedure if new elements are brought to its attention

20. State of Play

21. Interruptions
Early 2011 many interruptions initiated due to reservations in Annual Activity Report
Currently +/- 25 procedures ongoing concerning 21 operational programmes
Several in the process of being lifted.
Total interrupted amount is +/- € 755 million.

22. Suspensions Currently suspended 2007-2013: Spain: Baleares
France: PACA
Italy: Calabria
Slovakia: Education (tbc)

23. Questions?

24. THANK YOU! P:\A3 - reporting\PRESENTATIONS management - MS role v5.ppt24