1. THE BASICS OF THE LOTHAR SYSTEM Carsten Rasmussen European Commission DG Regional Policy Unit I.2 Bulgaria

2. Content Background information How to use LOTHAR
What is LOTHAR ?
Why should we monitor each OP financial performance?
What are the key principles?
How to use LOTHAR
The current state of play

3. Lothar comprises 3 Excel files
2 Flash tables establish the current state of play and compare it with the forecast
An N+3 file establishes a reliable forecast and monitors its implementation.

4. Why should we monitor each OP financial performance?
To prevent losing funds in line with N+3/2 rule. The targets for 2013, 2014 and 2015 will be difficult and planning should take this into account
To have time and a sound basis for corrective action in case of underperformance (e.g. launch of additional calls etc).
To timely reallocate funds between axes and OPs when necessary
To be able to analyze quickly performance at the level of OP, Priority axis and Operation

7. The key principles
Because of Bulgaria's backloaded commitment profile (where the 2007 allocation is 3 times less than the 2013 allocation), the 7% advance payment will make it very easy to meet the 2010 commitment target
The 2011 target is thus the first real N+3 target, which can only be reached through net performance (i.e. reimbursement claims).
The most difficult N+3 target is 2013, as it cumulates the commitments from 2010 (N+3) and 2011 (N+2).
2007 allocation (SF+CF+ERDF) – 0,491 MEUR
2013 allocation for Bulgaria – 1,233 MEUR (SF+CF+ERDF)
2007 allocation is 38,90% of the 2013 allocation for Bulgaria
First N+3 target - 0,491 MEUR to be reached with net performance of 7,4 % of allocation (0,491*100/6,674)
2013 N+3 target – 2,108 MEUR – represents 31,6% of allocation (2,108*100/6,674)

8. The key principles
Already in 2008 it is important to understand that the relevant minimum targets are N+3/ and 2014
Measure performance against the net N+3/2 targets, because the automatic advance payments should be certified to the Commission by 2015
The LOTHAR system will be only good, useful and functioning if it is prepared carefully on the basis of reliable data !!!

9. What is behind the N+3 chart

10. A Global OP chart

11. OP Environment – PA chart

12. How to use LOTHAR

13. The current state of play
N+3 file, flash table for calls, flash table for major projects & guidance
Forecasts prepared for the ERDF&CF OPs
Coordination by the MoF
The LOTHAR system is owned by the Bulgarian MAs
The forecast frozen for a year
The Flash tables are to be updated regularly
Seminar to review the state of play to be scheduled for September

14. Questions ?