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ESF Annual Examination Meeting on AIR 2010
Operational Programme«Human Resources and Employment»
14.10.2011 Latvia, Riga
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Content
1. General information2. Follow-up from AEM in March 24, 20113. AIR 2010 - conclusions 4. Policy issues5. Implementation by October 2011 & Evaluation6. Management and control system7. Information and communication 8. Future issues
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1. General Information
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Operational Programme«Human Resources and Employment»
Total ESF funding – 583,1 M EUR (409,8 lats)Main objectives:•development of education and science •Promoting employment, social inclusion and labour health thus contributing to increasing the labour’s competitiveness, professionalism and efficiency
•Promoting administrative capacity building in order to ensure prompt, high-quality services for to meet individual’s needs
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ESF advance & interim payments to new EU Member States by 28 September 2011 (% of the total ESF funding available)
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Total ESF funding available 2004-2006: LVL 116 414 475 (EUR 165 642 874)
Total ESF funding available 2007-2013: LVL 409 807 619 (EUR 583 103 708)
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ESF funding available for Latvia:2004 – 2006 and 2007 -2013
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Institutional framework of the ESF management in Latvia
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Monitoring Committee European Social Fund Sub-committee
Paying Authority,Certifying Authority
State Treasury
Responsible institutionsMinistry of Economics, Ministry of Finance,
Ministry of Education and Science, Ministry of Welfare, Ministry of Health, Ministry of the
Environmental Protection and Regional Development and State Chancellery
Co-operation InstitutionsCentral Finance and Contracting Agency, Health Economic Centre, Investment and Development Agency of Latvia, Society Integration Foundation,
State Employment Agency, State Education Development Agency, State Regional
Development Agency
Procurement Monitoring
BureauManaging Authority
Ministry of Finance
Final BeneficiariesCentral and local government institutions, private companies and natural persons, local governments, NGOs,
regions, etc.
Audit Authority
Ministry of Finance
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Structure of the Managing Authority
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2. Follow-up from AEM in March 24, 2011
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Follow-up from AEM March 24, 2011 (I)
1. Revision of OP – additional funding for ALMP measures in 2012-2013
2. Revision of Indicators3. Progress of Micro-loan facility4. Strengthening of Evaluation Capacity5. Agreement on organizing AEMs after
submission of AIRs to DG EMPL10
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Follow-up – Revision of OP (additional funding for ALMP measures in 2012-2013) (II)
Additional funding 52.7 million EUR (37 million LVL) for ALMP measures in 2012 and 2013:
•32.7 million EUR (23 million LVL) - training for unemployed (sub-activity 1.3.1.1.3. “Training of unemployed and job seekers”)
•20 million EUR (14 million LVL) - temporary public works (activity 1.3.1.5. “Support for the implementation of regional action plans for promotion of employment”).
The reallocation of additional funding is essential for the integration of unemployed in the labour market to contribute to the reduction of unemployment and provide activation of unemployed during the period when there is a limited number of jobs in the economy.
OP amendment proposal submitted to the EC on September 23rd 2011
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Follow-up – Revision of Indicators (III)
Revision of monitoring indicators – key principles & goals:
-updating of output, result and impact indicators and their values for better monitoring and based on the following:1) changes in funding of activities and sub-activities;2) changes in content/support type of activities;3) newly established activities.4) activities/sub-activities with removed funding - indicators to be annuled
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Follow-up – Micro-loan facility(IV)
• Support for business start-ups - scope of eligible applicants extended, incl. existing entrepreneurs willing to start new business in another industry
• Training – scope of eligible applicants extended (previously only new entrepreneurs or only those who had started entrepreneurial activities a year ago were eligible)
• Proposed amendments in indicators – number of trained persons – from originally set final target (5 000 persons) reduced to 2000 persons.
Shifting more focus to direct forms of support for business start-ups (loans, grants) given that the primary goal of the facility is to increase entrepreneurial activity in country
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3. Main conclusions AIR 2010
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Main conclusions - AIR 2010
1. Remarkable overall implementation progress2. SMOU and national targets for payments to FBs –
fully reached3. Main challenges – effects of the economic crisis,
budget cuts, fluctuations in project costs as well as procurement issues
4. Management & control system – continuing structural reforms, balancing simplification & controls
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4. Policy issues
• ALMP - OP amendments for additional funding 52.7 million EUR (37 million LVL) for implementation of ALMP measures in 2012 and 2013 (proposed OP amendments submitted to the European Commission on 23rdSeptember 2011;
• Structural reforms – in progress also in 2011, both in the public administration in general as well as in each sector. ESF funding – vital support. Priorities – further optimization of the public administration system, human resources management, quality assurance, improving quality of education (incl. general, higher, vocational education) etc.
• Social Safety Net Strategy – additional funding allocations, continuous support provided in all areas - welfare, education, health care and public transportation
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5. Implementation Progress by October 2011
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Financial progress of ESF activities 30 September 2011 (M, LVL)
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Reaching target of payments to FBs in 2011 - by 30.09.2011 (M LVL, % of target for all payments to FB’s in 2011)
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N+2/n+3 decommitment «red line»
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ESF payments to FBs – total progress by 2011 and targets for 2012 - 2015 (M LVL)
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Financial & physical progress – breakdown by priorities
• Most solid financial & physical progress –
social inclusion activities (priority 1.4), employment support activities (priority 1.3) and activities for support for general and vocational education (priority 1.2) .
• Contributing factors - additional funding provided to social inclusion and employment support activities
• Activities where better financial & physical performance could be desired – vocational education contents’ improvement activities under priority 1.2 “Education and Skills” and administrative capacity building activities
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Financial progress for ESF prioritiesby 30 September 2011 (M LVL)
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Priority 1.1 «Higher Education and Science» Financial progress by 30 September 2011 (M LVL, % of EU funding)
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Priority 1.1 „Higher Education and Science” - Key output & result indicators
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Priority 1.2 „Education and Skills” Financial progress by 30 September 2011 (M LVL, % of EU funding)
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Priority 1.2 „Education and Skills” –Key output & result indicators
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Priority 1.3 „Promotion of Employment and Health at Work” Financial progress by 30 September 2011 (M LVL, % of EU funding)
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Priority 1.3 „ Promotion of Employment and Health at Work” – Key output & result indicators
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Priority 1.4 „Promotion of Social Inclusion”Financial progress by 30 September 2011 (M LVL, % of EU funding)
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Priority 1.4 „Promotion of Social Inclusion”- Key output & result indicators
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Priority 1.5 „Administrative Capacity Building” Financial progress by 30 September 2011 (M LVL, % of EU funding)
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Priority 1.5 „Administrative Capacity Building” - Key output & result indicators
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Priority 1.6 „Technical Assistance” Financial progress by 30 September 2011 (M LVL, % of EU funding)
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Sub-activity 1.5.1.1.1 «Improvement of public planning, policy implementation and policy impact assessment» under the supervision of MoF
• 2 projects in progress (mid-2010 – 2013);• Implemented by State Chancellery and Ministry of Finance (MoF);• Focussed at facilitating reforms in public administration, budget
planning and fiscal policies;• Financial performance: 24.8% disbursements of the contracted
amount (2.87mln. lats); • Training activities display the most remarkable progress in
attainment of indicators; • Development of strategic plans/ concept/ assessments display lower
progress (delays in procurement, acceptance of deliverables); • Both: financial and physical progress to be speeded-up in 2012 and
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6. EU funds management and control system
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Management and control system
• Strengthening the independence of the Audit Authority• Strengthening of EU funds’ procurement monitoring
system• Improved procedures for risk management & application
of financial corrections• Improved regulation regarding irregularities• Restricted use of individual contractor agreements with
existing/ former employees• Better supervision of MA delegated functions
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Irregularity administration
The irregularity administration system established by MA – a key tool for detection of weakest links in management and control system Irregularity monitoring process on quarterly bases:•Analyses during quarterly meetings •Reporting to the OLAF •Reporting to government•AFCOS (Interdisciplinary network) •Guidelines & exchange of best practice
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Types of Irregularities (% of total irregularities detected by 31.08.2011)
39Note: Other Irregularities involves cases regarding irregularities related to various breaches of EU funds implementation legislation
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On-the-spot-checks of ESF projects(total by 30 September 2011)
By 30 September 2011, in total 314 ESF projects have been reviewed, in most cases (57%) results have been positive. The defects identified are mostly related to procurement, contracting, errors in supporting documentation.
By 30 September 2011, all defects detected in on-the-spot-checks carried out so far (i.e., those with negative results) have been corrected.
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Procurement checks of ESF projects (total by 30 September 2011)
By 30 September 2011, in total, 36 procurement checks of ESF projects have been made by the Public Monitoring Bureau.
Most common problems identified – inadequate requirements for qualification, experience, documentation etc.
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Actions taken to improve EU funds’ implementation system
Results of the Commission’s audit missions (Audit mission by the ECA, June 2011 and Audit Mission by the EC, September 2011):1) Strengthening the functions of internal audit in EU funds management and control system. Improvements planned from January 1, 2012;2) Facilitating EU funds procurement monitoring system: - Increased intensity of ex-ante controls of procurement documentation. - PMB provides methodological guidance and consultations (30.08.2011.) - Amended regulations of CoM (30.08.2011.)
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8. Evaluation
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Numerous evaluations currently in progress (results due later in 2011/ early 2012): •Implementation efficiency of NSRF 2007-2013•Communication activities•Active employment measures•Evaluation of EU fund impact on Latvian economy •Contribution of EU funds to HPs «Equal Opportunities» and «Information Society»•Impact of EU funds on territorial development in Latvia in 2007-20013
Evaluation – progress, follow-up, capacity building
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Evaluation - Plans for 2012 & TA funds for Evaluation Capacity Building
• Evaluation of EU funds’ supported ALMP measures implemented in 2007-2010
• Review of EU SF & CF planning document implementation’ effect on environment
• TA funds will be available for Evaluation capacity building to ensure effective preparation for the next planning period
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Information & Publicity (I)
Main events 2011•Regular coverage of ESF projects on TV, radio, printed mass media, Internet resources etc.
•Public events – seminars for project applicants, conferences etc. (e.g. international conference on mid-term evaluation 30 November 2011)
•Project Search Engine - all key information available through EU Funds’ Latvian site www.esfondi.lv
•Managing Authority on Twitter – account “VadošāIestāde” – regular updates on highlights and key events related to the management and implementation of EU activities
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Information & Publicity (II)
Outlook for 2012•Open Days of EU Funds’ projects – series of events to be organized in 2012 to open EU projects for public visits to raise awareness of EU contribution and the benefits to local communities and Latvia in general
•Detailed publicity plans 2012 to be available later in 2011 - due to the ongoing planning of TA resources for 2012-2013 by the responsible institutions and cooperation institutions, more detailed plans for 2012 will be available by the end of 2011
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9. Preparation for the next programming period
2014 - 2020
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Preparation for 2014-2020 Time schedule: 2011 activities (I)
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Terms Action
June 2011 European Commission publishes proposals for EU multiannual budget framework.
September 2011 EC publishes proposals for EU funds regulations post 2013
24 - 25 November 2011
Informal ministerial meeting (EC proposals for new EU funds regulations)
4th quarter of 2011National concept paper submitted to the government on the institutional framework for EU funds` management at the national level post 2013
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Preparation for 2014-2020Time schedule: activities post 2011 (II)
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Terms Action
2011- middle 2012Development of the national planning documents (NDP, NRF, list of national development priorities) necessary for collaboration of EU Funds` programming documents
July 2011 – middle 2012
Discussion on proposals for EU funds regulations, harmonization and approval, incl. regarding EU priorities within the framework of Cohesion Policy
Middle 2012 Common strategic framework approved by European Commission
2012 - 2013 Development of EU funds` programming documents
30 March 2013Programming documents of EU funds 2014-2020 programming period approved in the Cabinet of Ministers in order to begin negotiations with the European Commission
2013 Development and approval of management system, accreditation, beginning of national legislation development
1st quarter of 2014 Beginning of EU funds implementation