1. EUROPEAN COMMISSION Social and economic cohesion OPEN DAYS 2006 The European Week of Regions and Cities Brussels, 9 – 12 October 2006 _________________________ Workshop 11E18: Structural Funds 2007 – 13: The New Control and Audit Requirements Franck Sébert Directorate-General Employment, Social Affairs and Equal Opportunities Directorate I- Unit EMPL/I/3 – ESF Audit

2. EUROPEAN COMMISSION Social and economic cohesion Topics: positioning of the MA in the system comparison between 2007-13 and current programming period - responsibilities already in place - clarifications in responsibilities Introduction to the role and functions of the Managing Authority (MA)

3. Social and economic cohesion EUROPEAN COMMISSION 3 Commission Audit Audit Authority Certifying Authority Managing Authority (and Intermediate Bodies) The main elements of the control and audit framework 2007-13:

4. Social and economic cohesion EUROPEAN COMMISSION 4 Formal designation by Member State MA may be located within same body as Certifying Authority (CA) / Audit Authority (AA) (article 59 (4) ) But principle of separation of functions between and within all bodies and authorities (article 58 (b) ) Possibility to designate Intermediate bodies (IB) to carry out some or all of the tasks but under the responsibility of MA (article 59(2)) Optional functions : MA can host other bodies / services foreseen in OP implementation (art.36.g.iii) to receive payments from Commission to make payments to beneficiaries Detailed requirements

5. EUROPEAN COMMISSION Social and economic cohesion Will of the legislator not to disrupt existing systems Continuity with the functions and responsibilities of Managing Authority (MA) already in place in the 2000/2006 period Improvements needed for some elements and functions, the most important for management being the verifications on the delivery of products and services Comparison between 2007-13 and current programming period

6. Social and economic cohesion EUROPEAN COMMISSION 6 Responsibilities already in place (article 60) ensure that beneficiaries have separate accounting systems or adequate accounting codes for all transactions & operations evaluation of programme annual and final reports on implementation compliance with information and publicity provide required documents to Monitoring Committee provide Commission information to apraise major projects Comparison between 2007-13 and current programming period

7. Social and economic cohesion EUROPEAN COMMISSION 7 Clarifications in responsibilities MA to work in accordance with the principle of sound financial management selection criteria of operations (article 60) information of beneficiaries on all conditions for public support (article 13 implementing regulation) Capacity of beneficiary to fulfill all conditions (idem)

8. Social and economic cohesion EUROPEAN COMMISSION 8 Clarifications in responsibilities 1st level verifications to check delivery of products / services correctness & reality of expenditure declared by beneficiaries compliance with rules (article 60(b)) administrative verifications on ALL declarations (article 13) on-the-spot verifications, possibly on a sample basis (articles 60 and 13) 1st level verifications under MAs responsibility but execution can be delegated (in writing) with adequate supervision (article 58(e) and 59(2), article 12) written standards and procedures; documented in files (article 13) => existing Commission working document on good practices to be updated but still valid

9. Social and economic cohesion EUROPEAN COMMISSION 9 Clarifications in responsibilities I.T. system for accounting records by operation and for data on verifications / audits / evaluation (article 60(c)) ensure that CA receives all necessary information before certification (article 60(g)) guide the work of Monitoring Committee (article 60(h))

10. Social and economic cohesion EUROPEAN COMMISSION 10 For further details It will follow an exhaustive presentation on management verifications by José Viegas Ribeiro, … …and question time Thank you for your attention

11. EUROPEAN COMMISSION Social and economic cohesion OPEN DAYS 2006 The European Week of Regions and Cities Brussels, 9 – 12 October 2006 _________________________ Workshop 11E18: Structural Funds 2007 – 13: The New Control and Audit Requirements Franck Sébert Directorate-General Employment, Social Affairs and Equal Opportunities Directorate I- Unit EMPL/I/3 – ESF Audit