aleksandrs antonovs ministry of finance deputy director of department of eu funds december 4, 2006

SF & CF Managing Authority – Ministry of Finance of the Republic of Latvia 1

Aleksandrs AntonovsMinistry of Finance

Deputy director of Department of EU Funds

December 4, 2006

EU Funds Management in 2007-2013


Content of presentation National Strategic Framework Document Operational programmes Legal basis Project selection Payments Development of territory Partnership Time table


2007-2013 Strategy/NSFDNational Development Plan

Education and Science Growth of National Economy

IDevelopment of human resources

IIPromotion of competitiveness and

Knowledge based economy

IIIImprovements of public services

and infrastructure

National Strategic Framework Document (NSFD) – SF un CF* in Latvia 2007.-2013.

European Social Fund

Modernisation of education, support for studies for

students, employed, unemployed

European Regional Development Fund

Promotion of science and research, innovations, support for setting up

SMEs, competitiveness


Information and communication technologies, energy,

Quality of air

European Regional Development FundCohesion Funf

Infrastructure at national, regional and local level –

waste and water supply, highways,roads, harbors, Cultural heritage etc.


Research equipment for universities


Educational establishments infrastructure, employment,

health and social careinfrastructure

* SF and CF – Structural Funds (European Regional Development Fund, European Social Fund) and Cohesion Fund


Operational Programme „Human Resources and Employment” Funding – 457 mEUR (11.4%)

55,8%29,4%

5,0%

4,0%5,8%

Improving Quality ofEducation and Developmentof Science

Promotion of Employmentand Public Health Measures

Promotion of SocialInclusion

Administrative CapacityBuilding

Technical Assistance


Operational Programme „Entrepreneurship and Innovations”

Funding – 743 mEUR (18.6%)

60,2%

36,4%

3,4%

Research andInnovations

Promotion ofEntrepreneurship

Technical Assistance


Operational Programme “Infrastructure and services”

Funding – 2,8 bEUR (70%)

26,5%

21,6%

18,3%

12,8%

18,3%

0,4%2,1% Development of Transport Network ofEuropean Significance and Promotion ofSustainable TransportPromotion of EnvironmentalInfrastructure and Environment-friendlyEnergyInfrastructure for Strengthening HumanCapital

Promotion of Territorial Accessibility

Quality Environment for Life andEconomic Activity

Technical Assistance for ERDFImplementation

Technical Assistance for CFImplementation


Legal Basis [1] EU SF un CF law of management:

Determinate general institutional framework Main innovations:

Intermediate Body is detected as function body not institutional formation

For each of Intermediate Body has predicted possibility to chose optimal mechanism for implementation itself, variegate competence of cooperation institutions

Management committee is not predicted as separate quasi– institutional formation

Time to make decision is reduced


Main functions (delegate/not delegate): OP drafting (N) Implementation regulations drafting (N) Planning of finance (N) Supervision in priority level (N) Project selection and approval (D) Project implementation management, conclusion of

contacts (D) Control, on-the-spot checks (D) Inspection of Demand for payment and approval (D) Information and publicity measures (D)

Legal Basis [2]


Legal Basis [3] Regulations by Cabinet of Ministers for EU

structural funds and Cohesion fund management: Specify general institutional framework Depends from way of selection definite requirements for

project selection For project implementation contracts are definite basic

requirements Definite ex-ante control for purchase documentation

Regulations by Cabinet of Ministers for separate groups in project implementation: Supervisions and assessment of projects Disparities For audits and Controls For visual identity requirements and so on


Legal Basis [4] Regulations by Cabinet of Ministers for

implementation of activities: Drafting independent from way of project selection Definite activities:

Mechanism of implementation Requirements which should comply the project,

i.a. project selection criteria Breakdown of responsibility among responsible

authority and cooperation authority


Project selection [1]:ways of selection1. Open calls project application selection:

announces an open call; Free competition between submitters;

2. Limited project application selection: Sector priorities are definite in the planning documents; Number of submitter has previously settled and limited; Everyone receive funding;

3. Big project – selection define depends from project expenses:

25MEUR Environment ; 50MEUR other fields; Project application approval bay the European Commission


Project selection [2]:demanding information1. Till project application approval:

Project application form; Annexes, which are necessary for estimation (example, annual report –

demand if proposed criteria for financial situation); Submitter confirmations:

Part prom proposed requirements; Inspection is in later period;

2. After conclusion of a contract: Purchasing plan; Contraction plans; Assessment of impact on Environment etc.N.B. Do not require information which are available from other source of

information, for example, statute, regulations;3. Submitter responsibility has define:

Regulations of Cabinet of Ministers; Contracts about project implementation


Project selection [3]:Transparency1. Consultations drafting regulations of CM2. Requirements (CM regulations) available 1 month

till beginning of competition 3. Traceability of process:

has drafted estimating methodology; approved order of estimating; recorded decision approval; Public information about accepted decisions

4. Publicity about projects information


Payments [1]:Funding for project realization Improvements

Reduced number of involved institutions Possibility to control state budget institutions funding Standard prepayment solution [except

entrepreneurship support]: 10% Possibility assign bigger/lesser prepayment Security & extra measures


Payments [2]:Payment claims Frequency

SF funding receivers necessity of current assets Progress of finances and N+3 implementation Possibility to verify what is accomplished [physical

progress v documents of payment ] Auditable values Other physical progress indicators Intermediate Bodies have possibility to get confidence

about adequate project implementation


Payments [3]:Payment claims Checks and controls

On the spot checks System checks for larger projects after launch of the

project but before main expenditures take place Report by and independent auditor required based on

a risk assessment not merely the sum of the project financing


Payments [4]:Payment claims Outcomes/results of projects

Planning v Simplified project fiche Auditable value of the project, outcomes and results v

Payments


Balanced territorial development Specific activity Specific project criteria Earmarked funding for a territory Differentiated co-financing to projects from a territory Other (e.g. research, information campaign etc)


Involvement of social & regional partners & NGOs Basic principle – maximum transparency,

consultations, openness and clarity Forums:

Monitoring Committee Working Groups of the Monitoring Committee Consultations during drafting and approval of planning

documents and regulations Limitations:

Voting participation in the MC requires the status of the state official as per Law on evasion of conflict of interests

Participation in advisory capacity allows for unlimited statuss


Time Schedule for 2007-2013 Planning Documents

Nov 2005 Aug 2007Dec Jan Feb Mar Apr Mai Jūn Jūl Aug Sep Okt Nov Dec Jan Feb Mar Apr Mai Jūn Jūl

Today

Drafting of EU funds planning documentsNovember 2005 – October 2006

Consultations with and decision by the European CommissionFebruary 2006 – February 2007

EU funds law and horizontal management regulations

July 2006 – March 2007

Detailed EU funds implementation regulations

Beginning of 2007 – closure of a programme

„Silence” period1 month after the adoption of EU funds implementation regulations

aleksandrs antonovs ministry of finance deputy director of department of eu funds december 4, 2006

Documents

authority ministry

miljardu finansjuma

op finansjums

eur jeb

eu funds management

republic of latviacontent

promotion of employment

republic of latviachart655