Slovenia Experience of a Certifying Authority Signed

Slovenia Experience of a Certifying Authority • Signed Contract of Confidence for the 20002006 period • Compliance assessment for one programme for the new period 2

Institutional framework (2007 -2013) reflects clear separation of functions between: Experience of a Certifying Authority • Managing Authority = Government Office for Structural Policy • Certifying Authority = National Fund at the Ministry of Finance (internal organisation unit of the MF, special department within Budget Directorate) • Audit Authority = Budget Supervision Office (independent financial control body) 3

Experience of a Certifying Authority CA was authorised to perform its tasks by Governmental Decision Independence of CA from MA is ensured by Governmental Decree 4

Mission statement of CA Experience of a Certifying Authority Functions of the CA are reflected in its organisation chart and described in manual of procedures Segregation of duties within CA is reflected in job descriptions of the staff No delegation of tasks by CA 5

Organisation structure of CA Experience of a Certifying Authority DEPARTMENT FOR MANAGEMENT OF EU FUNDS (Certifying Authority) COHESION POLICY SECTION/NF /numerical checks and draw up of So. E for …/ - Cohesion Fund - ERDF - ESF GENERAL AFFAIRS SECTION… /checks of conformity/ - Irregularities - Reports - Legal matters - Development tasks and IT 6

CA shall perform its functions…. Experience of a Certifying Authority …. in accordance with the description of the management and control system …. on a daily basis Tools of CA are… § § guidelines for execution of reimbursements internal procedures IT system (IS-PA 2007) Inter-ministerial co-operation 7

How has CA prepared for fulfilment of requirements of the new period? Experience of a Certifying Authority • CA has provided input to description of the management and control system • CA has developed its own procedures manuals with flowcharts, checklists and model documents • CA has developed an IT system …. CA relies on the opinion of national compliance assessment body 8

CA has issued instructions for execution of reimbursements, which … specify: Experience of a Certifying Authority - data required by CA for certification of expenditure to EC & standard template of Cf. R with obligatory supporting documents - submission of data: in electronic and paper version – electronic transfer of data from CMS to IS-PA 2007 … provide explanation on: - calculation of EC contribution - procedure for checking of the Cf. R by the CA 9

Submission of data in paper version Experience of a Certifying Authority LM must submit filled in standard templates: • Cf. R with declaration • Summary report on verification checks supported by • • • List of paid and checked invoices List of paid and checked Payment claims Report on executed payments from the national budget 10

CA issued instructions to the MA for submission of data in electronic version… Experience of a Certifying Authority - Transfer of data from CMS to IS-PA 2007 according to technical specifications laid down by CA - Only transfer of data for Cf. Rs approved by MA (in status “approved”) - Changes of data for “approved” Cf. Rs must be approved by the CA special status in CMS Differentiation of financial and administrative data 11

For certification of statements of expenditure… Experience of a Certifying Authority …. CA checks completeness and numerical correctness of each Cf. R …. Assurance by CA is based on information received from: • • MA and/or LM Audit reports and annual control reports of the AA On-the-spot checks Irregularity reports 12

CA uses computerised system…. Experience of a Certifying Authority • • • to register transactions on its bank accounts to register individual Cf. R to follow a single financial circuit for all Cf. R to perform automatic internal controls (numerical and logical checks of data submitted in Cf. R) to record additional “manual” checks on substance of the information provided with the Cf. R to prepare statement of expenditure and application for payment at programme level per fund 13

CA is able to confirm accuracy and reliability of statement of expenditure as it has…. Experience of a Certifying Authority …. full access to the CMS and imports all data and accounting records from the CMS. Once the data on Cf. R has been checked in IS-PA 2007, CA confirms data in CMS (data are locked for any additional changes). Both systems enable processing of each Cf. R through different statuses. 14

For each statement of expenditure CA checks coherency of data in both systems (report A = report B) Experience of a Certifying Authority IT systems enable reconciliation of summary amounts certified at the level of priority axis with the individual expenditure records and supporting documents IS-PA 2007 enables recording of information following: • audit reports and audit findings • on-the-spot check reports • irregularities 15

CA keeps an account of amounts recoverable and of amounts withdrawn…. in its computerised system Experience of a Certifying Authority Ex-ante recoveries: - Public expenditure not yet declared in the Cf. R or declared but not yet authorised by the CA Ex-post recoveries: - Public expenditure declared in the Cf. R and authorised by the CA; temporarily exclusion of Cf. R in doubt Public expenditure certified in the statement of expenditure 16

Computerised system of the CA allows…. Experience of a Certifying Authority …. deduction of irregular expenditure from the statement of expenditure (irregularity report!) after its recovery or …. immediate withdrawing of irregular expenditure from the next statement of expenditure before its recovery CA registers recoveries, repayments and withdrawals in its debtors ledger for reporting to the EC 17

For conclusion… Management and control of EU funds got very complex Experience of a Certifying Authority Complexity can easily create perception of a complicated system with lengthy procedures and very detailed rules that must be respected What can be done to improve the situation? 18

Complexity of management and control procedures should be addressed by all involved institutions before and during implementation Experience of a Certifying Authority CA and other institutions shall pay attention to …. - adequate number of staff regular training of the staff and others proper set up of the system with well designed procedures described in the Manuals of procedures - availability of computerised system supporting daily control activities of the staff and. . develop good co-operation relations based on understanding of others roles and responsibilities! 19

Thank you for listening! Experience of a Certifying Authority Contact: Mojca Grošelj Ministry of Finance Department for management of EU funds E-mail: mojca. groselj@mf-rs. si 20