EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Triennal revision of the Financial
Regulation :
Context
- Commission proposal on the revision of
the financial regulation COM (2010) 260
of 28 May 2010
- Followed by a consolidation of the
proposed modifications to be brought into
the Financial Regulation in COM (2010)
815 of 22 December 2010
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Background of the changes affecting
Cohesion policy
Accountability of Member States will be
reinforced in line with Art. 317 TFEU:
Context
• Member States shall cooperate with the
Commission
to
ensure
that
the
appropriations are used in accordance with
the
principles
of
sound
financial
management.
• The Financial Regulations shall lay down the
control and audit obligations of the Member
States in the implementation of the budget
and the resulting responsibilities.
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Context
Purpose of the changes affecting
Cohesion policy
• Clarifying and reinforcing the respective
responsibilities of the Commission and of
the Member states in shared management
• Reinforcing the chain of accountability
between the Member states and the
Commission under shared management
• Introduction of a tolerable risk of error to
have controls adjusted to the level of risks
and costs
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Key changes proposed for shared
management 2014+
Proposal
• Accreditation process
• Management declaration of assurance
• Timely clearance of accounts/irregularities
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Timing
• Timing of the revision of the FR
Timing
 June 2010 - 2011: Negotiations with Council and
EP. Adoption of the Financial Regulation subject to
ordinary legislative procedure
 End 2011: Planned adoption of FR
 January 2012 : Planned entry into force of FR
• Entry into force of the modifications :
 New provisions on shared management will apply
from the date of entry into application of the rules
applicable to Structural Funds after 2013
 For 2007-2013 programmes current rules will
continue to apply
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
HOW DOES THE REVISED
FINANCIAL
REGULATION AFFECT
COHESION POLICY AND
ETC PROGRAMMES?
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Accreditation
Accreditation
ETC
specificities
• National accreditation of the MA/CA on the
basis of criteria fixed in sector specific rules
• No supervision by the Commission of OPs
below 250 Meuros
• No ex-ante compulsory validation of the
audit strategy
• Continuous supervision of activities of the
accredited body by the accrediting
authority. Possibility of withdrawal of
accreditation
 Accreditation of the MA by the hosting MS
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Certification and assurance system
• MA can exercise the functions of CA
Certification
and assurance
ETC
specificities
• Certification of expenditure to the Commission
once a year (1st February)
– Management declaration;
– Independent audit opinion.
– Annual accounts;
– Annual summaries.
• Basis for Commission assurance
 Assurance shall be given by the MA located in a
given MS for expenditure incurred in another
MS
 MA exercises the functions of CA
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
ETC
specificities
in
Management
and control
structures
ETC specificities
• 1rst level checks by MA or controllers in
each participating MS
By principle the MA is responsible for the
controls on the whole territority of the OP
 If not possible designation of controllers,
unless an EGTC is MA
The controlers should be the same than
those of Investment for growth programmes
or external programmes
• AA in the MS hosting MA
• AA assisted by a Group of Auditors
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
ECT
Management
and control
structures
2014-2020 Management and Control
Managing Authority
Audit Authority
• First level controls
• Payments to
beneficiaries
• Declaration of
expenditure to the EC
• Submission of
annual accounts and
management
• Declarations to EC
• Independent audit of
the management
control systems
• Expenditure and
accounts
• Annual audit opinion
prepared for the EC
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Clearance of accounts and closure
Clearance
of accounts
and closure
• Timely
clearance
of
accounts
strengthening the discharge exercise
• Rolling closure of operations starting
of the related 3 years period of
retention of documents
• Simplified closure of programmes
 No specificities.
ETC
specificities
Accounting year and clearance of accounts
Compulsory interim
payment application
Accounting year
1 July
N-1
Dec
N-1
Audit reference
period
Clearance of accounts
30 Jun 31 Jul
N
N
Dec 1 Feb
N+1
N
Preparation of the annual
accounts, management
declaration, summary audit
report, audit opinion
30 Apr 30 Jun
N+1
N+1
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Resulting financial flows for 2014-2020
Financial
flows
ETC
specificities
• Annual pre-financing paid at the beginning
of each year from 2016:
2% in 2016 2.5% from 2017 till 2022
• Regular submission of payment claims with
a compulsory statement of expenditure at
the end of accounting year
• Interim payment by Commission limited
annually to 90% of amount calculated
• Remaining 10% to be released after
clearance of accounts
 N+3
decommitment
commitment)
rule
(except
first
EUROPEAN COMMISSION
Regional Policy - Finance & Budget
EN
Thank you for your attention