1. 1 Impact of proposed amendments to Commission Regulation (EC) N° 1828/2006 Leif HÖGNÄS DG Regional Policy Train the trainers European Commission seminar for managing and certifying authorities Brussels, 9 June 2009

2. 2 Reporting procedure Theme Current procedures Proposed procedures Benefits / remarks: Initial reporting on irregularities under Article 28 Reporting within two months following the end of each quarter Changes to clarify information required and extend derogation from reporting Reporting derogation extended Reporting of follow- up under Article 30(1) Reporting covers multiple details on follow-up in the past including state of recovery procedures and recovered amounts Reporting only on initiation, conclusion or adandonment of administrative or criminal penalties Real simplification! =>Decoupling of intelligence aspects and financial follow- up aspects =>Less burden for MMSS

3. 3 Procedure on irrecoverable amounts Theme Current procedures Proposed procedures Benefits / remarks: Reporting on irrecoverable amounts under Article 30(2) MMSS are obliged to transmit a special report for each individual case above the threshold together with detailed information No time limit for EC decision MMSS report using new table in Annex XI (revised Article 20(2)). EU share of oss borne by EU budget unless EC reacts within 1 year (except in the case of suspected or established fraud). Real simplification! No need for MMSS to compile detailed report for each case of irrecoverable amounts above the threshold Annual reporting together with recoveries, withdrawals and pending recoveries => No indefinite period of jeopardy

4. 4 Closure of 2007-2013 programmes Theme Current procedures Proposed procedures Benefits / remarks: Closure of programmes MMSS must report all open cases of irregularities at closure(including amounts considered irrecoverable) Follow-up via OLAF database until last case closed Report at closure based on annual statements of of pending recoveries and irrecoverable amounts Follow-up on the basis of annual statements Real simplification! Annual reporting allows timely and enchanced monitoring of the situation for 2007- 2013 programming period and facilitates closure work No follow-up of irregularities in OLAF database

5. 5 Article 5.2 – irrecoverable amounts – example from ERDF 1994-99 programming period A total of 930 requests made by MMSS (EU-25) On the basis of the dossiers analysed so far, it can be estimated that on average, in less than 20% will the EC request the MS to pay for the loss of Community co- financing However, it seems clear that a disproportionately big effort goes into compilation of the dossiers by the MMSS and the analysis of the dossiers by the EC

6. 6 Programming period 1994-99 – all funds A total of 4,680 open notifications (includes Article 5.2 cases) MMSS level: - DE 2,950 - IT 700 - UK 500 - PT 300 - ES 180 - NL 120 - …

7. 7 Number of cases reported under Commission Regulation 1681/94 Programming period 2000-2006: Article 3 reports: 16 134 (initial reporting) Article 5 reports : 9 588 (follow-up reporting) Article 5§2 reports: 360 (irrecoverable amounts)

8. 8 Number of cases reported under Commission Regulation 1681/94 Number of irregularities reported in 2008: Article 3 reports: 3 871 (initial reporting) Article 5 reports : 4 179 (follow-up reporting) Article 5§2 reports: 282 (irrecoverable amounts)