1. 1 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Carmine Di Nuzzo Ministry of Economy and Finance (MEF) – Inspectorate General for the Financial Relations with the European Union (IGRUE) The IT system framework in the Programming period 2007-2013 in Italy Ljubljana, 12-13 October 2009 The IT system framework in the Programming period 2007-2013 in Italy Ljubljana, 12-13 October 2009

2. 2 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Outline 1.Introduction 2.The Ministry of Economy and Finance (MEF-IGRUE) rule 4.Programmes structure 5.IT System description 6.Conclusion 3.Experience in 2000-2006 and requirements in 2007-2013

3. 3 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union The aim of this presentation is to outline the Italian experience with the IT system provided for the implementation of the Operational Programmes co-financed by the 2007-2013 Structural Funds. Within the 2007-2013 Italian National Strategic Reference Framework and the specific responsibilities the IT system supports financial management, certification of expenditure and auditing. Such topics will be introduced in the following slides. The ultimate objective is to ensure an effective functioning of management and control systems of the 2007-2013 Operational Programmes. Such management and control systems are aimed at guaranteeing a positive impact of expenditure and common resources by preventing and correcting irregularities. Ljubljana, 12-13 October 2009 Introduction

4. 4 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 The Ministry of Economy and Finance (MEF IGRUE) role MONITORING IGRUE CONTROLS PRELEX ----- COMMON BUDGET ----- MEF IGRUE ----- FINANCIAL MANAGMENT ----- EUROPEAN COMMISSION  DG REGIO  DG EMPL  DG AGRI  DG MARE NATIONAL ADMINISTRATIONS  MINISTRIES  REGIONS  AUTONOMOUSPROVINCES  OTHER BODIES

5. 5 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 In the previous programming period the IT system related to Operational Programmes has been improved, especially in the matter of financial management and monitoring of the operations progress. However, some critical aspects were detected: Incomplete automation of some processes (relations amongst the Managing Authority, the Paying Authority and the EU Commission) High degree of exchange of documentation on paper support Lack of standard procedures and related difficulties in comparing disharmonised data Absence of a central activities-database control Experience in 2000-2006

6. 6 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 2007-2013 Requirements In the 2007-2013 programming period some relevant regulatory innovation led to the following consequences: Digitalisation and electronic transmission of programming, financial management, monitoring and control data towards the SFC 2007 system Permanent availability of auditing data, in order to have both - a glimpse of expenditure quality trends and - a validation of audit strategy effectiveness Capability of carrying out institutional fulfilments according to the timing set by national and common legislation

7. 7 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union European Territorial Cooperation Objective Ljubljana, 12-13 October 2009 The Italian National Strategic Reference Framework for 2007-2013 depicts Convergence Objective Regional Competitiveness and Employment Objective 66 Operational Programmes Programmes structure Spread throughout: Among the aforementioned programmes: 8 National Operational Programmes managed by Central Government Administration (Ministers) 58 Programmes managed by Local Government Administrations (Regions and autonomous Provinces)

8. 8 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union IT System reference elements Ljubljana, 12-13 October 2009 The main elements underlying the IT System are related to: Technological complexity interaction, within the IGRUE IT System, among different responsibilities (financial, monitoring and control data) System interaction with different external IT systems owned by local government Administrations technological structure which the System is based on Organisational and Management complexity width and variety of processed data (financial, monitoring and control data) pluralism of institutional bodies, at different levels, that own and exploit data need to cope with several close institutional deadlines

9. 9 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union IT System main areas Ljubljana, 12-13 October 2009 FINANCIAL MANAGEMENT, it coordinates managing and certifying Authorities concerning all the operations (payment orders processing and sending, etc.) MONITORING, it supports, at a single operation level, the surveying phase of planning and financial, physical and technical progress data CONTROLS, it organises control procedures in all their diverse characteristics (first and second level controls, system audit, etc.) The IT System developed by MEF – IGRUE is composed of three main areas:

10. 10 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Financial Management Ljubljana, 12-13 October 2009 Local IT System Area Beneficiaries Payment request process Managing Authority Managing Authority Certifying Authority Certifying Authority Beneficiaries: fill in reimbursement forms input into the system of copies of expenditure receipts Managing Authority: records the admissible import bound to be accounted to the EU inputs check-lists which show the controls made Managing Authority assigns a specific account to each Beneficiary Certifying Authority: examines checked expenditures by the Managing Authority and related Audit trails

11. 11 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Financial Management Ljubljana, 12-13 October 2009 Payment request process SFC 2007 System Area IGRUE IT System Area Central Coordinating Administrations Central Coordinating Administrations Certifying Authority Certifying Authority MEF-IGRUE European Commission European Commission Certifying Authorities: input data into expenditure accounting sheets fill in payment requests Central Coordinating Administrations: validate payment requests IGRUE assigns a specific account to the Certifying Authority and to Central Coordinating Administrations The IT System: transmits payment requests to the SFC2007 by means of WEB SERVICES

12. 12 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Financial Management – General view Ljubljana, 12-13 October 2009 Local IT System Area Central Coordinating Administrations Central Coordinating Administrations Certifying Authority Certifying Authority MEF-IGRUE Treasury Beneficiaries Fund Transfer EU Accrediting Managing Authority Managing Authority Payment Body Payment Body Payment orders SFC 2007 System Area European Commission European Commission IGRUE IT System Area Payment request process

13. 13 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Irregularities Record Local IT System Area Irregularities Evaluation Body Irregularities Evaluation Body Other controlling bodies (Court of Auditors, Financial Police, etc.) Other controlling bodies (Court of Auditors, Financial Police, etc.) Managing Authority Managing Authority Audit Authority Audit Authority Irregularities Certifying Authority Certifying Authority Cabinet Presidency Cabinet Presidency O.L.A.F. Managing, Certifying and Audit Authorities: record nature and amount of presumed irregularities, detected during controlling operations The Irregularities local coordinating Body: examines presumed irregularities identified by Managing, Certifying and Audit Authorities receives warnings by other Controlling bodies evaluates presumed irregularities and communicates them, once confirmed, to the Cabinet Presidency The Cabinet Presidency: receives data on irregularities records irregularities into AFIS System Ljubljana, 12-13 October 2009

14. 14 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Controls Ljubljana, 12-13 October 2009 Local IT System Area MEF-IGRUE IGRUE IT System Area Recoveries Annual audit Report Managing Authority Managing Authority Audit Authority Audit Authority Certifying Authority Certifying Authority Certifying Authority: records recoveries and cancellations (art.61 par.f, EC Reg. 1083/2006) inputs realised controls check-lists Audit Authority: inputs those check-lists which reveal realised controls elaborates annual reports (art.62 EC Reg.1083/2006) Managing Authority: records first level controls data Inputs on-site and administrative controls check-lists

15. 15 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Controls IGRUE IT System Area MEF-IGRUE SFC 2007 System Area European Commission European Commission Annual Audit Report Irregularities Annual summary Ljubljana, 12-13 October 2009 Recoveries Certifying Authorities: write and validate already executed payment recoveries annual report Audit Authorities: validate the annual report in accordance with art. 62 EC Reg 1083/2006 IGRUE : relying on data transmitted by local systems prepares and validates the annual summary The IT System: transmits, through WEB SERVICES, the annual summary, the annual report and the “Declaration”

16. 16 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Controls - general view Local IT System Area Irregularities Evaluation Body Irregularities Evaluation Body Managing Authority Managing Authority Audit Authority Audit Authority Certifying Authority Certifying Authority IGRUE IT System Area MEF-IGRUE SFC 2007 System Area European Commission European Commission Cabinet Presidency Cabinet Presidency O.L.A.F. Other controlling bodies (Court of Auditors, Financial Police, etc.) Other controlling bodies (Court of Auditors, Financial Police, etc.) Annual Audit Report Irregularities Annual summary Recoveries

17. 17 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union SFC 2007 System Area Local IT System Area Monitoring - general view Ljubljana, 12-13 October 2009 Implementing bodies Implementing bodies Beneficiaries Managing Authority Managing Authority Projects progress data Programming data Operations programming /implementing data IGRUE IT System Area MEF-IGRUE European Commission European Commission IT System Institutional Users System report

18. 18 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Key features of the IT System The IT System which was developed in Italy is fully compatible with the 2007-2013 programmes and it is based on the following features: Data input into locally developed IT systems, performed by each management, certification and audit Authority Centralisation of information flow to be transmitted to the European Union within the Ministry of Economy and Finance IT System, by means of procedure protocols (protocolli di colloquio) with the help of locally developed IT systems. Data and official documents transmission to the SFC 2007 System, through “web service” (funzioni di colloquio) developed by the Ministry of Economy and Finance’s (MEF – IGRUE) IT System MEF – IGRUE IT System authentication by means of differentiated account profiles on a competence-wise basis

19. 19 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Conclusion The IT System that supports 2007-2013 Programmes has been developed to address managing and control processes improvement requirements. Operation automation and the availability of reliable data, which were surveyed and recorded in accordance with shared standards, improve Managing, Certifying and Audit authorities work quality. The exploitation of the IT System allows:  coping easily with deadlines set by common legislation  the minimisation of potential errors connected with manual activities and paper flows  the immediate availability of information and either internal and external reports (EU, Court of Auditors, ISTAT, Italian Central Bank, etc.)

20. 20 Homologues Group Meeting Slovenia, October 2009 Republika SlovenijaEuropean Union Ljubljana, 12-13 October 2009 Thank you for your attention! Email Email carmine.dinuzzo@tesoro.itcarmine.dinuzzo@tesoro.it Tel: Tel: +39.06.4761.4451