Institutional structures for Structural Funds assistance

Institutional structures for Institutional structures for Structural Funds assistanceStructural Funds assistance

Ministry of Finance

September 10, 2003

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Approaches to design of Implementation Schemes

Diversity of activities within the SPD

Different target groups and recipients of assistance

Existing national institutional arrangements and administrative practices

Experience in management of EU pre-accession instruments

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Types of projects

Projects to be selected in open call for applications

National projects

Aid schemes

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Projects to be selected in open call for applications

Applied for projects where the best projects can be selected by an open competition and depend on specificity of proposed activities. These projects can be implemented on case by case basis.

Examples of Activities – Support to establishment public internet access points, support to agriculture holdings

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National projects

Applied in cases where it is necessary to agree on package of projects that are mutually linked and have a common objective. These packages of projects are elaborated in accordance with specific national sectoral strategy.

Examples of Activities – optimisation of road infrastructure, labour market institutions capacity building.

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Aid schemes

In cases where there is a need to implement a large number of small scale sector specific interventions the implementing body granting aid needs to be capable in dealing with the specific group of recipients;

Examples of Activities - marketing support to exporting SME’s

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Institutional structures forInstitutional structures forStructural Funds assistanceStructural Funds assistance* *

Paying AuthorityState Treasury

Final beneficiaries (state and municipal enterprises, private enterprises and physical persons,

local governments, state institutions, non-governmental organisations a.o.)

Managing AuthorityMinistry of Finance

Monitoring Committee

Steering Committees

Line ministries Ministry of Regional Development and Local

Government Affairs; Ministry of Economy;Ministry of Welfare; Ministry of Education and

Science; Ministry of Agriculture; Ministry of Transport; Ministry of Environment;

Ministry of Health; Ministry of Culture.

Intermediate Bodies - Central Finance and Contract Unit in relation to ERDF- State Employment Service in relation to ESF

(measures for development of employment)- Professional Education Development Programme Agency

in relation to ESF (measures for development of education)

- Rural Support Service in relation to EAGGF and FIFG

* Based on the Regulations of Cabinet of Ministers approved on September 2, 2003

Aid scheme managers (e.g. LDA, LGA, SIF)

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Main institutions and their tasks

Managing Authority

Paying Authority

Line ministries

Intermediate bodies

Aid scheme managers

Monitoring Committee

Steering Committees

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Managing Authority

Ministry of Finance

Ensures overall management, control, implementation, monitoring and evaluation

of the programme by maintaining and coordinating the functioning of the system

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Managing Authority

Planned internal structure of department of EU Funds:

Unit for ERDF

Unit for ESF

Unit of EAGGF and FIFG

IT systems unit

Information and publicity unit

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Paying Authority

State Treasury

Ensures financial management and processing of payments

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Line ministries

Ensures coherent policy content of the programme by:

selecting the projects in case of open calls for proposals,

elaborating sectoral interventions in case of national projects,

approval of aid schemes

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Intermediate bodies

CFCU, SES, RSS, AVEDP

Ensures technical, administrative and financial management in respect to final beneficiaries

Enter in contract with the designated aid scheme managers on implementation of aid schemes and carry out controls

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Aid Scheme managers

Implements the aid scheme by ensuring technical, administrative and financial management in respect to specific group of recipients

e.g. Latvian Development Agency

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Monitoring CommitteeMonitoring Committee

review and approve Programme complement; approve selection criteria for projects financed within the

relevant structural fund developed by Line ministries; review and approve reviews and reports on the SPD

implementation progress prepared by managing authority for submission to European Commission;

ensure monitoring of the implementation of the SPD in general, including reviewing reports and evaluating the implementation progress of SPD measures.

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Steering Committees

• review project selection criteria before their submission to the Monitoring Committee;

• approve the project application form and guidelines for project preparation in the case of open call for proposals for ERDF and ESF;

• check regularly the implementation progress of Priorities and measures of particular structural fund;

• review implementation reviews and reports on SPD implementation progress for the Fund and Priority prepared by Managing authority for submission to European Commission;

• Ensures coordination between differrent partners involved in the implmenetation of the priority

4 Steering Committees – one for each Structural fund chaired by Managing Authority

Representatives: Managing Authority, line ministries, Intermediate Bodies, social partners, Regional Development Councils, Union of Local Governments of Latvia

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Project selection

ContractorEuropean

CommissionPaying

AuthorityMonitoringCommittee

SteeringCommittee

ManagingAuthorityLine Ministry

IntermediateBody

Beneficiary

Call forapplications

Prepare projectapplication

Receive projectapplication

Evaluate Projectapplication

Approveproject

List of approvedprojects

Develop projectselection criteria

Positive opinionon selection

criteria

Approvecriteria

Develop projectapplication form

Approveappl.form

ERDF and ESF project selection - open call for applications

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ERDF and ESF project selection - national projects

Project selection

ContractorEuropean

CommissionPaying


SteeringCommittee


IntermediateBody

Beneficiary

Positiveopinion

on nationalprogramme

List of projects

Developnational

programme

Decision

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Project selection

ContractorEuropean

CommissionPaying


SteeringCommittee


IntermediateBody

Beneficiary


Prepare projectapplication

Receive andevaluate project

application

Approveproject

List of approvedprojects

Develop projectselection criteria

Positive opinionon selection

criteria

Approvecriteria

Develop projectapplication form

EAGGF and FIFG project selection open call for applications

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Project implementation

ContractorEuropean

CommissionPaying


SteeringCommittee


IntermediateBody

Beneficiary

Ensureprocurement

process

Contract withbeneficiary on

projectimplementation

Checkprocurement

process (basedon risk analysis)

Procurement MonitoringBureau -

monitor procurementprocess in accordance

with provisions ofnational legislation

Enter intocontract with

contractor

Works, supplies,services

Monitoring inaccordance with

contracts

Ensureon-the-spot

checks

Project implementation, payment flows and monitoring

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Payment flow

ContractorEuropean

CommissionPaying


SteeringCommittee


IntermediateBody

Beneficiary

Invoices andsupporting

documentation

Check invoicesand supportingdocumentation

Make advancepayment and

payments based ondeclarations

Receive paymentsfrom EC

Pay to thecontractor

Money oncontractor's

account

Prepare requestfor reimbursement

Check request forreimbursement

Check request forreimbursementand pay to the

beneficiary

Money onbeneficiarie's

account

Prepareexpendituredeclarations

Give assurance onsystem operation,

controls andaudits performed

Checkexpenditure

declarations andcertify

expenditure

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Reporting and monitoring

ContractorEuropean

CommissionPaying


SteeringCommittee


IntermediateBody

Beneficiary

Report to LineMinistry

Financial andphysical data

onimplementation

of projects

Financial andphysical data onimplementation

of the SPD

Financial dataon

implementationof the SPD

Access tofinancial and

physical data onimplementation

of the SPD

Information onprogress of SPDimplementation

Report toManagingAuthority

Report onfinancial data

Report to the EC

Review reportsprepared by the

ManagingAuthority

Approve reportsprepared by the

ManagingAuthority

Receive reports

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ERDF and ESF implementation scheme - aid schemes

Project selectionPhase I - approval of aid scheme manager and aid scheme management project

ContractorEuropean

CommissionPaying


SteeringCommittee

ManagingAuthority

LineMinistry

IntermediateBody

Beneficiary

Prepareapplication

formanagementof aid scheme

Aid schememanager

Evaluatepotential aid

schememanager

Draft decisionon approval of

aid schememanager Cabinet of Ministers -

decision on approved aidscheme manager

Receive list ofapproved aid

schememanagers

Prepare aidscheme

Approveaid scheme

Receive list ofapproved aid

schemes

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Project selectionPhase II - approval of projects within the aid scheme

Contractor EuropeanCommission

PayingAuthority

MonitoringCommittee

SteeringCommittee

ManagingAuthority

LineMinistry

IntermediateBody

Beneficiary

Develop aidschemeproject

selectioncriteria

Aid schememanager

Contract withaid schememanager onaid schemeimplement.

Prepareproject

application


Approveproject

Develop aidschemeproject

applicationform

Receive andevaluateproject

application

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Project implementation


PayingAuthority

MonitoringCommittee

SteeringCommittee

ManagingAuthority

LineMinistry

IntermediateBody

Beneficiary

Ensureprocurement

process

Aid schememanager

Contract withbeneficiary on

projectimplement.

Monitoring inaccordance

with contracts

Works,supplies,services

Enter intocontract with

contractor

Ensureon-the-spot

checks

Checkprocurement

process(based on risk

analysis)

Procurement MonitoringBureau -

monitor procurementprocess in accordance

with provisions ofnational legislation

Ensureon-the-spot

checks(common aid

scheme)

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Payment flow


PayingAuthority

MonitoringCommittee

SteeringCommittee

ManagingAuthority

LineMinistry

IntermediateBody

BeneficiaryAid scheme

manager

Invoices andsupporting

documentation

Preparepaymentrequest

Money onbeneficiary's

account

Pay to thecontractor

Checkpayment

request andpay to the

beneficiary

Preparerequest for

reimbursement

Make advancepayment and

paymentsbased on

declarations

Receivepaymentsfrom EC

Money oncontractor's

account

Checkinvoices andsupporting

documentation

Check requestfor

reimbursement

Check requestfor

reimbursement

Money on aidscheme

managersaccount

Prepareexpendituredeclarations

Give assuranceon systemoperation,

controls andaudits performed

Checkexpendituredeclarations,

certifyexpenditure

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Reporting and monitoring


PayingAuthority

MonitoringCommittee

SteeringCommittee

ManagingAuthority

LineMinistry

IntermediateBody

BeneficiaryAid scheme

manager


onimplement.of projects


onimplement. of

the SPD

Financialdata on

implement.of the SPD


onimplement. of

aid scheme

Access tofinancial andphysical data

onimplement. of

the SPD

Report toIntermediate

Body

Report to LineMinistry

Report toManagingAuthority

Report onfinancial data

Information onprogress of SPDimplementation

Report to EC

Review reportsprepared by the

ManagingAuthority

Approve reportsprepared by the

ManagingAuthority

Receive reports

Institutional structures for Structural Funds assistance

Documents

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