1. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Preparation for post-accession Management of Community Funds : Nicholas Martyn Regional Policy DG Lessons from ISPA Progress review by the Commission

2. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 9.04.03ISPA Annual Meeting 1.01.04ELIGIBILITY DATE for Structural expenditure 1.05.04ACCESSION 31.12.06END OF PROGRAMME PERIOD N + 2 Rule applies to first commitments 31.12.08END OF PAYMENT PERIOD 30.06.09CLOSURE OF PROGRAMMES The Timetable 6 years 2 months 21 days to closure of programmes

3. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Effective National Fund Paying authority –Institutionally strong –Experienced Staff in key posts –Adequate number of Staff –Training / Guidance Lessons from ISPA

4. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 –Well-defined allocation of functions / responsibilities –Segregation of functions –Technical knowhow / experience in key positions –Training / Guidance Lessons from ISPA Clear set up of implementing Agencies / Bodies

5. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Procurement –Quality control independent of contracting body –Experienced staff –Training / Guidance –Procedure manuals (for national rules) –System for learning from mistakes Lessons from ISPA

6. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Internal Audit –Time required to establish effective audit capacity –Need for positive relationship with management –Early verification of systems Lessons from ISPA

7. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Review of Progress Monitoring of Chapter 21 Commission questionnaire - report July 2003 Programming process Post-accession - Article 5 system descriptions

8. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Review of Progress Management checks on reality of expenditure(Art. 4) Certification by Paying Authority(Art. 9) Systems Audit / Samplechecks(Art. 10) Winding up Declaration by independent body(Art. 15) 4 key components of system

9. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Review of Progress Is the architecture in conformity ? Have all the bodies been designated - including intermediate bodies - for all tasks? Is there progress on making the bodies operational ? – Overall planning – Recruitment plan – Training schemes – Guidance documents – Procedure manuals key questions

10. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Review of Progress Are the financial flows clear ? Who certifies ? Basis for certification ? Adequate information flows between MA and PA ? Paying authority

11. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Review of Progress Are there clear arrangements for the Article 4 checks ? Is there a clear audit trail ? Is there an information system in place, or under development ? Are there satisfactory reporting procedures with intermediate bodies ? Managing authority / Intermediate bodies

12. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 Review of Progress Which bodies are involved ? Total audit resources ? Is there an audit methodology / audit manual ? Is there an audit strategy being developed for the period ? Audit services

13. Financial Management and Control Annual Meeting of ISPA PARTNERS 2003 The Goal By the date of first expenditure declarations, systems for financial management and control fully set up which meet the standards required.