GUIDANCE DOCUMENT
ON THE FUNCTIONS
OF THE CERTIFYING AUTHORITY
for the 2007 – 2013 programming period
Recoveries and Withdrawals
Laurent SENS, European Commission,
DG Employment, Social Affairs & Equal
opportunities
• General objective to ensure the correct functioning of the
multiannual management system.
• Strategic importance of recoveries and withdrawals given the
high error rate detected in Structural Funds.
Recoveries
and
Withdrawals
• Ensure that irregular expenditure is detected and excluded
from co-financing by the EU budget.
Their
importance
• Supervisory role of the Commission: ensure a reliable system
of monitoring the process of financial corrections due to the
identification of irregularities.
Member States reporting will be reflected in the Commission’s
reporting to the European Parliament
• Legal basis
• Definition of withdrawals and recoveries
Recoveries
and
Withdrawals
The
presentation
• The responsibilities of the Certifying
Authority on withdrawals and recoveries
• Reporting responsibility: Annual statement
(annex XI of Regulation 1828/2006)
• Good practice
• LEGAL BASIS
 Article 61 (f) of Regulation 1083/2006 –
Functions of the Certifying Authority
“ f) Keeping an account of amounts recoverable
Recoveries
and
Withdrawals
Legal basis
and of amounts withdrawn following cancellation
of all or part of the contribution for an operation.
Amounts recovered shall be repaid to the
general budget of the European Union prior to
the closure of the operational programme by
deducting them from the next statement of
expenditure.”
 Article 20(2) Documents submitted by the Certifying
Authority and Annex XI of Regulation 1828/2006
Recoveries
and
Withdrawals
Legal basis
“ 2. By 31 March each year as from 2008, the
certifying authority shall send … a statement, in the
format in Annex XI, identifying for each priority axis
of the operational programme:
a) the amounts withdrawn …;
b) the amounts recovered …;
c) a statement of amounts to be recovered ….”
 Point 4.5 recoveries of Annex XII Description of
Management and control systems of Regulation
1828/2006
When identifying an irregularity the MS has
two means of proceeding with the financial
correction either by:
Recoveries
and
Withdrawals
Definitions
1) Recovering the unduly paid amount
from the beneficiary, the irregular
expenditure is kept in the programme
pending the outcome of proceedings to
recover the unduly amount paid from the
beneficiaries
=> Recovery at the MS level before the
deduction from the statement of
expenditure sent to the Commission.
… OR by:
2) Withdrawing the irregular expenditure from the
Recoveries
and
Withdrawals
Definitions
(2)
funding:
The irregular expenditure is immediately removed from the
programme (independently of the recovery procedure) by
deduction in the next statement of expenditure
It is expected that the MS will follow-up recovery at the
beneficiary level. The debtors ledger should keep records
on these actions as well.
 Recovery at the MS level after the deduction from
the statement of expenditure sent to the
Commission.
Two similar methods: difference in the timing of
the deduction from the statement of expenditure:
before or after the recovery.
Withdrawals and Recoveries are a responsibility
of the Certifying Authority (2000-2006 responsibility
less clear: Managing authority or Paying authority)
Recoveries
and
Withdrawals
Responsibility
of the
Certifying
Authority
1- Keeping records
The Certifying Authority should keep records and an
audit trail on these amounts for reconciliation
purposes.
2- Repayment to the Commission
Any recovered amount should be deducted from the
next statement of expenditure and at the latest at
closure of the programme
Responsibility of the Certifying Authority:
Recoveries
and
Withdrawals
Responsibility
of the
Certifying
Authority
3- Reporting
Annual statement by 31st of March on
recoveries, withdrawals and pending recoveries,
to be sent to the Commission services through
SFC2007.
 Recommendation: All procedures concerning
recoveries and withdrawals should be set out in
a manual.
Information to be covered by the annual statement
due on the 31st March:
1. Amounts withdrawn in statements of expenditure in the
preceding year
2. Amounts recovered and deducted in statements of
expenditure in the preceding year
Recoveries
and
Withdrawals
Annual
statement
Annex XI
Information to be covered by the annual statement
due on the 31st March:
3. Amounts of pending recoveries at the end of the preceding
year
Recoveries
and
Withdrawals
Annual
statement
Annex XI
• Information to be covered by the annual
statement due on the 31st March
= Corrections arising from the definition
of irregularity (Art.2.7 of Reg. 1083/2006)
Recoveries
and
Withdrawals
Annual
statement
Annex XI
- Corrections arising from irregularities above
and below the threshold of 10.000€
- For expenditure already declared to the
Commission
Recoveries concern public expenditure
Note: Clerical/technical errors do not
have to be reported BUT have to be
corrected by MS.
• Reporting on recoveries and withdrawals:
 Annual statement from the Certifying
Authority by 31st of March on recoveries,
withdrawals and pending recoveries (art.20.2 of
Reg.1828/2006) in the format of annex XI of
Reg. 1828/2006
Recoveries
and
Withdrawals
Annual
statement
Annex XI
• Other Reports – Reminder:
 Quarterly report to OLAF from Member
States on new irregularities, their follow-up and
irrecoverable amounts (art.28 of
Reg.1828/2006)
 Annual Summary from Member States by
15th of February (includes a chapter on
recoveries) (art. 53b(3) of Reg. 1995/2006)
• Good practice
Recoveries
and
Withdrawals
Good
practice
Indicate which amounts recovered or
withdrawn result from:
- audits performed by EU bodies
- controls and audits by national
authorities