Seminar on
Budapest, 4-5 OctoberSeptember, 2012
Structural Funds Implementation
Experiences of 2007-2013
Programming Period”
Gabriela Hernandez EC, DG REGIO Hugnary Unit
Regional
Policy
2000-06: Critical issues:
*Financial crisis and extension of eligibility period
*Reconciling the information on irregularity cases –WD versus
with OLAF data base.
*5% Sample of eligible expenditure for checks under Art. 10
of Reg. 438/2001
*Conclusions of on-going audits delaying the closure process
*Closure at measure level-flexibility requirements
*Overbooking to maximise receipts.
*Unfinished operations.
*Separate Closure procedure for CF projects
Regional
Policy
2007-2013: Major changes with
regard to Closure 2000-2006
• - final date of eligibility & deadline for closure documents:
Fixed in Regulation: 31 December 2015 & 31 March 2017;
no extension possible
• - Closure at priority level -but no flexibility between
priorities at closure – Art 77 is explicit while Regulation
1260/1999 remained silent on this issue
• - Closure of CF projects addressed not individually but in
programme closure
• - Dedicated section both on major projects and FEI
reporting following 2011 Amendment of the General
Regulation
Regional
Policy
N+2/N+3 rule
• N+3 + 1/6 of 2007 commitment; exemptions for
major projects and state aid schemes
• Cumulation of N+2 and n+3 in 2013
• No possiblity to go beyond Dec 2015
• Avoid cummulation of 2 programming periods
Regional
Policy
2. 2007-2013: Major changes with
regard to Closure 2000-2006
• - Audit Authority checks final statement and disclose
discrepancies and/or systemic deficiencies, projected error
rate by year and a residual error rate for the programme at
closure
• - reporting for withdrawn /recovered amounts, pending
recoveries and irrecoverable amounts (Art. 20, Annex XI of
Reg. 1828/2006), recoveries covered by an annual
statement submitted on a yearly basis
• - Irregularities- amounts irrecoverable: No Art. 5.2
reporting- declaration in line with Annex XI.3 to the IR;
commitment will remain only open if further information is
requested or recovery procedure continues
Regional
Policy
3. New guidelines:
Specific issues on eligibility
- Functioning projects: completed and in use
- Exceptions:
• phasing of major and non-major projects (over
5 M€ total costs)
• Non-functioning projects over 5 M€ monitored
and completed within 2 years
Regional
Policy
PHASING PROJECTS
• The project must have 2 identifiable stages
physical and financial
• No phasing of productive investments
• First phase ready to be used for its purpose at
closure
• Legal and financial commitment by MS
• To list in OP 2014-20
Regional
Policy
Unfinished projects
• Total cost at least 5 millions
• Not exceed 10% EU contribuiton for OP
• 2 years to complete
• To avoid unfinished projects with phasing
Regional
Policy
Revenue Generating Projects
• Commission Decision settles the maximum
amount of eligible expenditure; new revenues to
be deducted if:
• - new sources of revenue not takene into account
when calculating funding-gap
• - changes in the tariff policy
• - no possibility to estimate revenues when
calculating funding gap
• - new revenue to be deducted from CA at 2017
Regional
Policy
Financial Instruments at closure:
particular provisions
• Not necessary to have finalised implementation
of activity supported fy FI
• Interest rate subsidies or guarantee fee subsidies
capitalised eligible if:
• Linked to ERDF/ESF loan
• Transferred to an escrow account
Unused funds are to be used as Legacy resources for same
purpose of OP
Regional
Policy
Pending recoveries and
irrecoverable amounts
• Pending recoveries remain open
• Irrecoverable amounts to be accepted by
Commission
• Need for overbookings
Regional
Policy
3. New guidelines- planning ahead
• - Discussion in COCOF end sept– final
presentation in October
• - Decision by the Commission planned for end of
the year
• - Seminars, Trainings by Commission in close
cooperation with the Member States;
• - Q&A -documentation
Regional
Policy
5. Closure 2007-2013Recommendations
• Plan all activities of all actors well ahead of
closure
• Ensure with MA and CA consistency of the
closure package (financial/irregularities)
• Plan adequate resources, even after
submission, for any additional audit work (if
needed)
• Assess at early stage the completion of
operations
Regional
Policy