25-8-2020

1

Day 2: Marco Lopriore, EIPA Expert

• Eligibility, ESF Specific challenges, SCO

• Double funding

• Conflict of interest

• Corrective measures/sanctions

Fraud and Eligibility Issues in Implementation

• Purchase of second-hand equipments

• Disposal of assets after the project

• Cash payments & thresholds

• In-kind contributions (ex: volunteer work)

• Depreciation charges

• Originals v. Copies of invoices

25-8-2020

2

Non-fraudulent Bankruptcy and Durability

2014-2020 (art 71 CPR 1303/2013): durability for infrastructures or productive investments

2021-2027 (art 59 new CPR)

An operation shall repay…..if within 5 years of final payment or within period set by SA rules (3 years for SME)

Idem but the MS shallrepay

Cessation or relocation outside programme area, change ownership, or substantial change

Cessation or transfer…

Proportional recovery DROPPED

10 years if relocation outside EU DROPPED

ESF and other ESI funds operations which are not productive investment or infrastructures repay only if breach of SA rules and if cessation or relocation

ESF + operations repays the ESF+ only if breach of SA rules

Exemption for non fraudulent bankruptcy and financial instruments (and for EGAF)

FI and EGAF DROPPED

Specific ESF challenges: Immaterial Operations

� Falsification of training course/false extra registrations of

trainees/false signatures

� New areas of e-learning and online courses: difficult

� Eligibility requirements (how to check if age is correct ? If

residence/homeless?)

� Lack of transparency in selection of companies where to do

training (ex : law student doing traineeship in not agriculture)

� Risk of excessive staff costs (ESF+ will cap it in 2021-2027)

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not

represent the EC's official position

25-8-2020

3

Falsified Attendance Lists

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not

represent the EC's official position

Specific SCO challenges

� Real cost more risky…but still

� Adequate records and basis of expenditure

� Avoid expenditures landing both in direct and indirect costs

� Checking that unit costs delivered by right level (ex: senior

trainer and not junior trainer)

� Checking that “creaming” is not taking place

� MS developing methodologies fair, equitable, verifiable

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

25-8-2020

4

Double Funding and the “No Double Financing Rule”

� Submitting the same item of expenditure (i.e. a specific cost)

to different sources separately (EU, national, regional) in

order to obtain financial support from all of them

� Check at every stage (evaluation, implementation, payment

claims, OTSC)

� Clear demarcation requirements (synergies)

� Which measures have the highest risks?

� Access to each other information systems

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

Double Funding: Pay Attention to Staff Costs !

� Are you sure that the expenditure has not already been

financed by any other funding (EU, regional, local or other)?

Are there mechanisms in place to avoid double-financing?

� If a person works in several projects, are you sure that the

total number of working hours declared does not exceed the

total eligible working time of the employee (no double-

financing) set in the related employment contract?

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

25-8-2020

5

Time Accounting Systems (100% time)

Sources of Finance: EU Financial Transparency System (FTS)

� Horizon Europe

� EASI in ESF+

� ERASMUS+

� Just Transition Fund

� LIFE

� EGAF

� Recovery/Resilience Facility

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

25-8-2020

6

COVID-19 & Double Funding Risk

� costs covered by other government grants received to deal

with the impact of COVID-19;

� beneficiary deciding to access the Coronavirus Job Retention

Scheme, Temporary Wage Subsidy Scheme, any staff costs

associated with the delivery of the approved operation will

not be eligible for structural fund support

� Payment claims: update the self-declarations of

beneficiaries “I confirm…”!

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not

represent the EC's official position

Conflict of Interest - Financial Regulation 1046/2018 (Article 61)

25-8-2020

7

Selection of Projects and Conflict of Interest

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

Conflict of Interest – Contractual Provisions

From

beneficiary up

to

subcontractors

25-8-2020

8

OLAF - Contractual Provisions for Checks

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position

This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not

represent the EC's official position