SFC2014 - THE NEW FUND MANAGEMENT SYSTEM FOR THE PROGRAMMING PERIOD 2014-2020

SFC2014 Planning and Security Policy

Olivier Pleska DG Regional and Urban Policy

16.01.2013

SFC2014 - PLANNING

Planning

“Unless commitment is made, there are only promises and hopes; but no plans.” ― Peter F. Drucker

SFC2014 Key challenges

• Shared management for EAFRD, EMFF, ESF, EFRD,CF, AMF,ISF,IPA

• Multi-fund Programmes • New regulations with different timeline• Stretched timing (finalised regulation vs

software implementation)• Work in progress• User expectations • No contingency, deadline is fixed

SFC2014 Development principles

• Multi-Disciplinary Team from all participating DG's• Ensure business ownership of the IT development• Priority setting and early feedback

• Agile development • Build the product according to business priorities

, release often.

• Continuous testing and integration• Test the feature as soon as done

• Time boxed development• Automation of the business processes• 7 phases over a 5 years period (2013-2017)

Phase I : Strategic Planning & Programming

Instrument/Tool Business Process

Strategic Planning Partnership Contract initial adoption (13-17)

Strategic Planning Policy Dialogue (AMF13)

Programming AMF/ISF National Programme initial adoption (AMF14)

Programming EAFRD Rural Development Programme initial adoption (RD7-13)

Programming EMFF Operational Programme initial adoption

Programming ERDF/CF/ESF Operational Programme initial adoption (23-26,87)

Programming ERDF/CF/ESF ETC Operational Programme initial adoption (23-26,87)

Programming ERDF/CF/ESF TA Operational Programme initial adoption (23-26,87)

Programming Joint Action Plan initial adoption (93-97)

Evaluation Ex-Ante Evaluation of Operational Programme (48)

Financial Administration Functions – budget line management, responsible unit management, default values management, bank account management

Financial Business Rules Manager

Phase II : Strategic Planning, Programming & Financing (1)

Instrument/Tool Business Process

Strategic Planning Partnership Contract modification adoption (13-17)

Programming AMF/ISF National Programme modification adoption (AMF14)

Programming EAFRD Rural Development Programme modification adoption (RD7-13)

Programming EMFF Operational Programme modification adoption

Programming ERDF Major Project initial adoption (90-92)

Programming ERDF Major Project modification adoption (90-92)

Programming ERDF/CF/ESF Operational Programme modification adoption (23-26,87)

Programming ERDF/CF/ESF ETC Operational Programme modification adoption (23-26,87)

Programming ERDF/CF/ESF TA Operational Programme modification adoption (23-26,87)

Programming IPA IPA CB Operational Programme initial adoption

Programming IPA IPA Regional Operational Programme initial adoption

Programming IPA IPA Major Project initial adoption

Phase II : Strategic Planning, Programming & Financing (2)

Instrument/Tool Business Process

Programming IPA IPA CB Operational Programme modification adoption

Programming IPA IPA Regional Operational Programme modification adoption

Programming IPA IPA Major Project modification adoption

Programming Joint Action Plan modification adoption (93-97)

Evaluation Evaluation Plan for Operational Programme (49, 104)

Financial ABAC Interface (Send transactions; Update transactions; Monitor status changes; Reject processing)

Financial Initial Commitment

Financial Pre-financing Cost Claims/Payments

Financial Cost Claims/Payments

Financial Recovery Context/Error Irregularity

Financial Partial Payments

Financial Suspension or Interruption of Payments

Phase III : Execution , Audit & Monitoring

Instrument/Tool Business Process

Execution Payment Forecast (102.3)

Audit Accreditation of management and control bodies (64, 117, AMF24)

Audit Report and Opinion of the independent audit body and the description of the management and control system (117)

Monitoring Monitoring Committee (42-43, 100, RD80, AMF12)

Monitoring Communication Strategy (106)

Execution Quarterly Indicator (RD73 1 b)

Execution Estimate of Financial Requirements (RD102)

Execution Quarterly Declaration of Expenditure (69, RD69, RH102)

Financial Execution Reports (Business Objects)

Phase IV : Execution,Financing & Audit (1)

Instrument/Tool Business Process

Monitoring Financial Data (102)

Execution Annual Accounts (75, RH102, AMF39)

Execution Synthesis Report (75)

Execution Interim Payment Application (69, 120,121)

Execution Final Application for Interim Payment ( 126)

Execution Annual Management Declaration of Assurance (AMF39)

Financial Supplementary Commitment/De-commitment

Financial Payment of Annual/Final Balance (AMF35)

Financial Annual Pre-Financing Cost Claims/Payments

Financial Forecast of Revenue

Financial Recovery

Financial Clearing of Pre-financing

Phase IV : Execution,Financing & Audit (2)Instrument/Tool Business Process

Audit Audit Strategy (116)

Audit Audit Opinion on Annual Accounts (75, 116, AMF39)

Audit Annual Control Report (75, 116, AMF28-29)

Audit Summary Report of all available audits and controls (75, AMF39)

Phase VI : Monitoring,,Evaluation & Reporting (1)

Instrument/Tool Business Process

Monitoring Annual Implementation Report (40, 44, 101, RD82, AMF49)

Monitoring Annual Review Meeting (45)

Financial N+2 Automatic de-commitment (127, RD37, AMF45)

Execution Closure of National programme (AMF36)

Execution Financial Corrections (77, AMF42)

Monitoring Final Implementation Report (133, RD82, AMF49

Evaluation Ex-Post Evaluation (50, RD85)

Evaluation Ex-Post Evaluation (AMF52)

Strategic Planning Strategic Report on implementation of the Partnership Contract (46)

Strategic Planning Progress Report on implementation of the Partnership Contract (46)

Strategic Planning Performance review (19)

Strategic Planning Mid-term Review (AMF15, AMF53)

Phase VII : Programme Closure

Instrument/Tool Business Process

Financial Programme Closure

SFC2014 Planning Summary

2013

Q1 Q2 Q3 Q4

Phase I

Phase II

Phase III

Phase IV

Phase V

Phase VI

Phase VII

2014

Q1 Q2 Q3 Q4

2015

Q1 Q2 Q3 Q4

2016

Q1 Q2 Q3 Q4

2017

Q1 Q2 Q3 Q4

SFC – SECURITY POLICY

Background

• Q4 2012, Audit performed on SFC2007• Objective , to assess consistency with EC

1083/2006 (art 76.4) and EC 1828/2006 (art 39 to 42)• Evaluate operational controls related to SFC2007

in 5 member states• Usage of User & Security Module (U.S.M.) tool• Test the operational controls• Provide a qualified opinion on the effectiveness of

the system with regard to the audit objectives

Findings

Issue nr.

Issues identified

1 Leaver accounts are not (timely) deactivated.(Important)

2Periodic access reviews are only performed on the account level, not on the access rights of each account. (Important)

3Password controls are weak in the local application feeding SFC2007 (or in the underlying database).(Very Important)

4 Insufficient security awareness training. (Desirable)

5User access management procedures are not kept up to date. (Important)

6The user access management process in the Member State is documented in an informal manner. (Very Important)

Recommendations to E.C.

Rec nr.

Recommendations

1

Create an SFC security policy for the SFC community , which would include the related security requirements to be fulfilled in order to securely use the SFC system and/or the local system. (Very Important)

2In the short term , research the possibility of adding further functionalities in U.S.M. to assist the MS Liaison in his/her role (Important)

3Increase the level of awareness surrounding SFC2007 security. (Desirable)

Action Plan

• U.S.M – Additional functionality to help Liaison officers

• Security Policy for the access and use of SFC2007 to be defined and implemented with the SFC community

• SFC security awareness to be included into SFC training

• Specific SFC training (USM , Security) for SFC Liaison Officers

Support And Contact

• Support for SFC2007 and SFC2014 web applications• sfc2007-info@ec.europa.eu• ec-sfc2014-info@ec.europa.eu

• Support for SFC2007 and SFC2014 Web services• empl-sfc2007-ws@ec.europa.eu• ec-sfc2014-ws@ec.europa.eu

• Conference web site• http://ec.europa.eu/regional_policy/conferences/sfc2014/agenda_en.cfm

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