Outlook on effective management of EU structural funds

from 2007-2013 to 2014-2020

2012-02-01Vilnius

Content of PresentationContent of Presentation

• Orientation towards results and ways of simplification

• LT experience in:– Enhancing administrative capacity;– Use of simplified costs;– Process review;– Use of IT tools

• Implementation issues in the 2014-2020 Regulations’ drafts

Cohesion policy –Cohesion policy –systems and systems and requirementsrequirements

EU requirements

National and regional requirements

MinistriesMonitoring Committee of

Operational Programs (consist of assistance

administration institutions’ officials and social economic

partners)

Managing Committees of

Operational Programs

Government of the Republic of Lithuania

Project promoters

Audit Authority

National Audit Office

Ministry of Finance

Certifying Authority

Implementing Institutions(7 Agencies)

European Commission

Ministry of EnvironmentMinistry of

Social Security & LabourMinistry of Transport

Ministry of HealthcareMinistry

of Education & Science

Ministry of Economy

Ministry of InteriorInformation Society

Development Committee

National Fund

Department

Central Project

Management Agency

Lithuanian Business Support Agency

ESF Agency

EnvironmentalProject

Management Agency TIDe

Managing AuthorityEU Structural Assistance Management Department

Payments making

Authority

State Treasury Departme

nt

JSC “INVEGA”

Councils of Regional Development

Public Procurement

Office

(consist of assistance administration institutions’

Officials partners)

RCC

Cohesion policyCohesion policy

• ““Cohesion policy has to be known not Cohesion policy has to be known not for it’s complexity, but for it’s results” for it’s complexity, but for it’s results” (Informal meeting of the minister’s)(Informal meeting of the minister’s)

• ““One size does not fit allOne size does not fit all” ” (Informal (Informal meeting of the minister’s)meeting of the minister’s)

Result oriented Cohesion policyResult oriented Cohesion policyhow to achow to achhieve it?ieve it?

What is the way to go through all complex process towards results?

Result oriented Cohesion policyResult oriented Cohesion policyhow to achow to achhieve it?ieve it?

What is the way to go through all complex process towards results?

ResultsResults

Human resources

Simplified costs

IT tools

Process review

Management Management and and control systemscontrol systems

Process Process andandFunctionsFunctions

What is What is simplification?simplification?

• The ability to simplify means to eliminate the unnecessary so that the necessary may speak.  ~Hans Hofmann, Introduction to the Bootstrap, 1993

What is necessary?What is necessary?

• UE SF management has to be Sound, Efficient and Effective

• It requires Appropriate, Effective and Transparent systems

• These systems have to ensure:– Selection of quality operations and effective implementation– Prevention and detection of irregularities and reasonable

assurance on the regularity of expenditure– Delivery systems should be as simple and streamlined as

possible

– ...and orientation towards results

First of all – qualified, creative and constantly

willing to improve employees

Administrative capacity buildingAdministrative capacity buildingin EU SF management and in EU SF management and control systemcontrol system

• Context:– Around 1200 employees in ES SF management and control system– 3 level institutional structure (MA, line ministries and agencies)

which composes of 18 institutions– Different cultures and legal status of institutions

Demand to ensure that MA’s delegated tasks are performed according to the requirements and effectively

• Qualification development system:– Review of EU requirements for systems and functions– Identification of existing qualification development tools between

institutions– Determination of general (minimum) requirements for competences

according to the institution and target group– Identified 11 thematic subjects for the development of competences– Launched procurement for centralized training services

Simplified costs

LT experience – LT experience – Simplified costs Simplified costs

• Provides real possibility to reduce administrative burden for beneficiaries

• Integration of simplified costs requirements in the national legal system

– Still difficulty to implement for budgetary institutions

• What’s working so far (ESF):– Flat rate scheme for indirect costs (approved by EC in 2011)– Unit costs (e.g. Scholarship amount for post graduate student

or scientists who come back to work after maternity/ paternity leave, wages for scientists);

– Lump sums (e.g. For publicity activities).

Process review

LT experience – Process LT experience – Process review review

• Review of project cycle management bottle-necks• Acceleration of processes

– Appraisal, up to 3 months;– Payment claim verification, up to 30 days;– Contracting, up to 30 days

• Appraisal process:– State planning procedure (up to 2 months);– Combination of appraisal phases

• Risk based management:– for payment claims;– for public procurements;– for on the spot checks

• Unified Indicators system• Requirements to use information in the national

databases

IT tools

LT experience – LT experience – SFMIS2007SFMIS2007

• Starting point: not IT tool for itself, but effective project cycle management tool

• Designed step by step together with detailed requirements for processes and procedures

• The main management tool for EU SF MCS institutions:– Used in everyday EU SF management procedures

– Paperless data exchange between EU SF MCS institutions– Data quality, reliability and sustainability

• Electronic Application and payment claim forms• Process monitoring

SFMIS2007modules

1.Projects

2.Payments

3.Monitoring

4. Analysis

5.Administration

Data exchange website

for beneficiaries

Website www.esparama.lt

Data exchanges with Government

Budget Accounting & Payment System

Register of Enterprises

SFMIS2007 functional SFMIS2007 functional structurestructure

SFMIS2007 BenefitsSFMIS2007 Benefits

• A form (Application) data import:

– from 2 hours (2004-2006) 1-2 min. (SFMIS2007)

• Contract data generation:

– 15 minutes to generate from imported and verified application data.

• Indicators, project appraisal information, payments forecast – everything is in the payment claim, no need to collect this data in other ways.

• Interim participants reports (e-forms)

Implementation issues in the 2014-2020 Regulations’ drafts

General remarksGeneral remarks

• Requirements and process– Stronger role of EC in setting more requirements

(thematic concentration, conditionalities, performance framework, accreditation, suspension of payments, etc.)

– Does it fully comply with proportionality principle?• Simplified costs

– More options to use simplified costs, but...• whether more detailed EC working documents will

not specify otherwise? (Remember - devil is in the details)

• E-Cohesion– Paperless process should not be an end in itself and

not overemphasized.– what about management verifications and audits,

electronic signature and legal basis?– Will the same requirements be applied for audits and

controls?

Conclusion – more Conclusion – more questionsquestions??

• What could be done for simplification despite complexity of 2014-2020 Regulations?

• Does EU regulations provide sufficient legal certainty?

– Remember - Devil is in the details

• Is the new system lay down conditions for orientation towards quality results rather than assurance of eligible expenditure?