session3 system financial flows

8/6/2019 Session3 System Financial Flows

1/19

Structural Funds Financial managementand Control, Romania

System of PaymentsMgr. Danka Kova ovMgr. Danka Kova ov

kovalova@cakovalova@ca- -slovakia.sk slovakia.sk

June 2006


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FM Budget Commitments

Effe cted annually f or each Fund and obj ectiv e in the OP s F irst budge t commitm ent bef or e the OP approval by theCommission

F ollowin g commitm ents by 30 A pril each year T rans fer f rom national contin gency r eserve to oth er OP

upon r equest by the MS by 30 Se ptember of the year n


3/19

FM Rules for Payments IF orms of Paym ents:

Pr e-f inancin g

Interim paym ents to apply co- f inancin g rate Paym ent of the f inal balanc e to apply co-

f inancin g rateCommunity Contribution (IP, FP) P ublic contribution and

max. assistanc e amount f or each priority axis

F or ecast of lik ely paym ent applications submitt ed to theCommission by MS by 30 A pril every year (f or n & n+1 year ) (see f orm 1)


4/19

FM Rules for Payments II

S tatement of Expenditur es ( by priority axis ) Total amount of eligible expenditur es and

corr espon ding public contribution Expenditur e paid by benef iciari es justi f ied by

invoic es or accountin g docum ents of eq uival ent valu e(docum ents k e pt by the benef iciary )

(see F orm 2)P artial / f inal closur e of OP

(see F orm 3)


5/19

FM Rules for Payments III

A ccumulation of pr e-f inancin g and of interim paym ent shall not exceed 95% of the Funds contribution to the

OP- When 95% r each ed the CA continu es transmittin g to

the Commission:- Certif ied stat ement of expenditur e on 31 December

of the year n- Amounts r ecov er ed d urin g the year f or each Fundno later than by the end of Fe bruary of the year n+1


6/19

FM Rules for Payments IV

U se of Euro Amounts of expenditur e incurr ed in national curr ency

to be conv erted to euro Exchan ge rate used: monthly accountin g exchan ge rate

of the Commission in the month durin g which theexpenditur e was r egister ed in the accounts of the CA of

the OP conc erned This exchan ge rate to be publish ed by the

Commission each month


7/19

FM Rules for Payments VP r e-Financin g

Paym ent 5% (2% in 2007, 3% in 2008) of SFor 7% (2% in 2007, 3% in 2008, 2% in 2009) of SF;7,5% (2%, 3%, 2 .5%) of CF

or 10.5% (2 .5%, 4%, 4%) of CF Inter est post ed to the OP conc erned being r egar ded as

r esourc e f or MS as national public contribution / de clar ed to

the Commission at the tim e of the f inal closur eI nterim Paym ent (f orm 2)P aym ent of Final balanc e (f orm 2)P rogramm e Closur e (f rom 3)


8/19

FM Rules for Payments VaI nterim Paym ent (f orm 2) made by the Commission upon

Submission of Paym ent application and a stat ement of expenditur e

No mor e than max. of assistanc e approv ed f or OP has been

paid by the C ommission durin g the whol e period f or each priority axis Submission of the most r ecent annual impl ementation r e port No opinion by the C ommission in r espect of an inf ringementIf at least one con dition is not met EC inf orms MS in one

month

1st interim paym ent - within 2 months of the date of r eceipt of the r e port on the assessm ent of the settin g up themana gement and control if no r eservations

O ther paym ents within 2 months


9/19

FM Rules for Payments VbP rogramm e Closur e (f orm 3)

Partial closur e made upon the f ollowin g con ditions:S tatement of expenditur e f or the operations compl eted up to 31 Dec. of the pr evious year

De claration f or partial closur e assessin g the legality and r egularity conc erned - pr e par ed by the Audit Authority

C onditions f or the paym ent of the Final Balanc e MS submitt ed the paym ent application by 31 Dec. 2017

A pplication f or paym ent of the f inal balanc e and stat ement of expenditur e

F inal impl ementation r e port f or OP (MA)C losur e declaration (AA)

Failur e in submittin g automatic decommitm ent of the f inal balanc e

EC opinion - within 5 months , paym ent in 45 d ays


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FM Rules for Payments VI

I nterruption of paym ents By the de legated authorisin g off icer f or a maximum period of six

months MS inf orm ed imm ediately and tak es the necessary measur e f or

corr ection

S usp ension of paym ents by the C ommission: all or part of interim paym ents at the level of

prioriti es or programm es MS ge ts the opportunity to pr esents its obs ervation and tak es the

necessary measur e f or corr ection


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FM Rules for Payments VII

A utomatic decommitm ent any part of a budge t commitm ent in an OP not used f or paym ent of

the pr e-f inancin g or interim paym ents or not appli ed f or The part of commitm ents still open on 31 December 2015 if no

application f or it by 31 March 2017 Extension of automatic decommitm ent when GR e nters into f orce

af ter 1 January 2007


12/19

Request for payment - Beneficiary

B MAIB/MA

PU PA

Requestfor

Payment-B

Requestfor

Payment-B

Summary Requestfor

Payment-B


13/19

Financial flows

PA PUEC F unds

BEC F unds

Co-f inancin g f rom SB


14/19

Types of f inancin g

Pr ef inancin g grantin g of f inancial r esourc es f rom stat e budge t to the benef iciary f rom public sector f or r eimburs ement of initial commitm ents towar d a suppli er within the due date based on submission of the accountin g

docum ents issu ed by the suppli er

Paym ent on account onc e project impl ementation has been start ed, f inal benef iciary f rom the public sector (ESF) will r equest IB/MA f or paym ent on account in complianc e with

agr eement con ditions.

Ref unding provi ding the f unds to the f inal benef iciary f rom EC sourc es as an addition to his disposabl e sourc es, on the basis of submitt ed accountin g docum ents


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E RDF privat e sector public sector

-r ef unding - pr ef inancin g- r ef unding

E SF

privat e sector public sector -r ef unding - paym ent on account

- r ef unding


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System of the financial flows (B from the private

sector) prof itabl e projectsTypes of projects

non-pro f itabl e projects N on-profitable projects:

a) N on-government organizations:- r ef unding of 100% e ligible expenditur es f rom the sourc es ESF + SB- r ef unding of 95 % e ligible expenditur es f rom the sourc es ERDF +SB

b) E nterpriser, which implements non-profitable project out of the

competition- paym ent is r eimburs ed up to the amount of 95% e ligible expenditur e f rom the sourc es EC+ SB- sum up by the sourc es of the Final Benef iciary in the amount of 5% .


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Profitable projects:Assistanc e is provi ded with r egar d to stat e aid sch eme f or the r elevant measur es or sub-m easur es of the program docum ents in complianc e

Assistanc e is provi ded with r egar d to stat e aid by themeans of non-r e payabl e f inancial contribution , which inclu des EC sourc es and SB sourc es.

non-r e payabl e f inancial contribution is not to be provi dedas an paym ent on account , but refunding , on the basis of submitt ed d ocum ents which will prov e f actual amount of eligible costs.

System of the financial flows (B from the privatesector)


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System of the financial flows (B from the public

sector)

Projects f rom the public sector::

Each paym ent is r eimburs ed only up to total amount of ECsourc es + stat e budge t (95%), i.e. - sum up by the sourc es of f inal benef iciary in the amount of 5%

2 periods:

pr ef inancin g period or paym ent on account r elease of expenditur e f rom the stat e budge tr ef unding period f rom the EC r esourc es


19/19

Cofinancing strategy

It has been settled:contribution of EC sourc es on total eligible costs in themaximal amount

maximal intensity of stat e aid

Contribution of f inal benef iciary sourc es (exce pt stat eadministration entiti es) on co- f inancin g in the amount of 5 %f rom the total eligible costs in cas e, wher e stat e aid rules ar enot applicabl e

session3 system financial flows

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