Hungarian Delegation Lisbon, 28 October 2008

1. Financial Institute for Regional Development Hungarian Delegation Lisbon, 28 October 2008

2. Summary • 1) NSRF - National Strategic Reference Framework (2007-2013) • 2) IFDR - Financial Institute for Regional Development • 3) IFDR - Certifying Authority

3. Summary • 1) NSRF - National Strategic Reference Framework (2007-2013) • 2) IFDR - Financial Institute for Regional Development • 3) IFDR - Certifying Authority

4. NSRF – Strategic Guidelines National Strategic Priorities: • Qualification of human resources (education and professional training in a social inclusive framework); • Sustained growth of Portuguese economy (Qualification of economic activity - private investment focus on tradable sectors); • Social Cohesion; • Qualification of territory (attractiveness); • Qualification of administration (Governance Efficiency)

5. NSRF – Strategic Guidelines Five Structural Principles for NSRF and OP: • Operational Concentration • Investment and Development Actions Selectiveness • Economic Viability and Financial Sustainability of Investments • Territorial Cohesion • Strategic Monitoring

6. NSRF – Operational Programmes • Three Thematic Operational Programmes: • Competitiveness Factors (ERDF) • Human Potential (ESF) • Territorial Enhancement (ERDF + Cohesion Fund) • Seven Regional OP FEDER by NUTS II + Two Regional OP ESF by NUTS II • Eight Territorial Cooperation OP (Cross-border, Transnational, Interregional) • Two Technical Assistance OP (ERDF + ESF)

7. NSRF - Institutional Framework 2007-2013 NSRF Coordination Governmental Commission NSRF Observatory Regional OP Coordination Governmental Commission (3) OP Coordination Governmental Commissions NSRF Technical Commission (NSRF Observatory, IFDR, IGFSE, IGF) • Rational thematic centres • Observer regional dynamic centres • Strategic advisory bodies Regional Operational Programmes of Continent and Autonomous Regions Thematic Operational Programmes HUMAN POTENTIAL North Centre Lisbon COMPETITIVENESS FACTORS TERRITORIAL ENHANCEMENT Alentejo Algarve Autonomous Region of Azores Autonomous Region of Madeira

8. Eligibility of the Portuguese NUTS II regions for cohesion policy objectives 2007-2013 Convergence Regions – North, Centre, Alentejo e Azores Regional Competitiveness and Employment Region – Lisbon Statistical Phasing Out Region – Algarve Phasing In Region – Madeira

9. Structural Funds: How much ERDF, ESF and Cohesion Fund?

10. 22 835 21 511 13 980 6 958 CSF I CSF II CSF III NSRF Structural Funds: 20 years after Portuguese EU adhesion (Millions of Euros)

11. Summary • 1) NSRF - National Strategic Reference Framework (2007-2013) • 2) IFDR - Financial Institute for Regional Development • 3) IFDR - Certifying Authority

12. Financial Institute for Regional Development Mission Executes regional development policy through the financial coordination of the community structural funds and of the Cohesion Fund.

13. Financial Institute for Regional Development Main responsabilities National financial coordination of the Structural Funds National coordination for operational monitoring and management of the ERDF and the Cohesion Fund Payment Authority / Certifying Authority Payment entity for ERDF and CF

14. Financial Institute for Regional Development The organizational model The organs Flexible Structure, based on • Units • Groups • Project Teams • Directive Council • Statutory Auditor

15. Financial Institute for Regional Development Group Body Unit Temporary project team Statutory Auditor Directive Council Vice-Chairman Chairman Vice-Chairwoman Coordination of Operational Management Certification Control and Audit Support for Institutional Management Information Systems Financial Coordination Legal Support and Litigation Planning and Programming Financial and Asset Administration IS NSRF Programming and Financial Monitoring Support for Operational Management ERDF and Cohesion Fund Internal Audit SIFEC Monitoring and Evaluation Territorial Cooperation and Community Initiatives Control of Expense Declarations Human Resources Audit Communication Financial Management Internal IS Technical Documentation ERDF TA OP Technical Secretariat

16. Vice-Chairman Vice-Chairman Chairman Directive Council Control and Audit Payments Certification Function Internal Audit Support for Control and Audit Certification Institutional Management Unit Internal Audit Financial Institute for Regional Development

17. Summary • 1) NSRF - National Strategic Reference Framework (2007-2013) • 2) IFDR - Financial Institute for Regional Development • 3) IFDR - Certifying Authority

18. IFDR - Certifying Authority Functions as Certifying Authority • Drawing up and submitting to the Commission certified statements of expenditure and applications for payment;

19. IFDR - Certifying Authority Functions as Certifying Authority Certifying that: • the statement of expenditure is accurate, results from reliable accounting systems and is based on verifiable supporting documents; • the expenditure declared complies with applicable Community and national rules and has been incurred in respect of operations selected;

20. IFDR - Certifying Authority Functions as Certifying Authority • Ensuring for the purposes of certification that it has received adequate information from the managing authority on the procedures and verifications carried out in relation to expenditure included in statements of expenditure;

21. IFDR - Certifying Authority Functions as Certifying Authority • Taking account for certification purposes of the results of all audits carried out by or under the responsibility of the audit authority; • Maintaining accounting records in computerised form of expenditure declared to the Commission; • Keeping an account of amounts recoverable and of amounts withdrawn following cancellation of all or part of the contribution for an operation.

22. IFDR - Certifying Authority Functions as Certifying Authority • Providing an Information System of ERDF and Cohesion Fund; • An integrated and modular system, to simplify procedures and to enable the flow of information, fully coherent with the European Commission SFC 2007 information system; • A system providing communication and integration with the information systems of the MA and AA, supported on Web services.

23. IFDR - Certifying Authority Separation of Functions

24. IFDR - Certifying Authority Groups: Responsible for technical and financial analysis by checking the reception of claims and their completeness (numerical checks), and for drawing up of statements of expenditure and proposing their submission to the Commission. • ERDF and Cohesion Fund

25. IFDR - Certifying Authority Groups: Responsible for checking the substance of the information provided (checks of conformity with the community law, assessement of management verifications carried out by the Managing Authority and Intermediate Bodies, review of the results of audits carried out by the Audit Authority, etc). Control of Statements of Expenditure

26. IFDR - Certifying Authority Woorkflow - Technical and financial analysis and control of statements of expenditure

27. IFDR - Certifying Authority Woorkflow - Certified statements of expenditure and applications for payment

28. IFDR - Certifying Authority The Certifying Authority will: • Reconcile the amount declared with the relevant accounting and monitoring documents; • Check results of the compliance assessment related to the programme management and control systems description; • Check control and audit reports of the Audit Authority, and ensure that negative findings have been satisfactorily addressed.

29. IFDR - Certifying Authority In addition, the Certifying Authority, in the scope of Control of Statements of Expenditure, can also • Audit the procedures carried out by the Managing Authority, using an appropriate sample of projects, to ensure that: • Projects are selected in accordance with the criteria defined in the programme; • Expenditure declared has actually been incurred and complies with Community and national rules; • An adequate audit trail is held in accordance with the regulation requirements; • Irregularities are prevented, detected, and the necessary correcting measures are provided.

30. IFDR - Certifying Authority Certification Unit – Additional Tasks • Forecast of payment requests; • Centralised accounting and reporting on withdrawals and recoveries.

31. IFDR - Certifying Authority At the latest by 30 April each year, the Certifying Authority shall send to the Commission a provisional forecast of their likely applications for payment for the current financial year and the subsequent financial year. Forecast for Payment

32. IFDR - Certifying Authority Woorkflow - Forecast for payment

33. IFDR - Certifying Authority Withdrawn and Recovered Amounts and Pending Recoveries • By 31 March each year as from 2008, the Certifying Authority shall send to the Commission a statement identifying for each priority axis of the operational programme: • the amounts withdrawn from statements of expenditure submitted during the preceding year following cancellation of all or part of the public contribution for an operation.

34. IFDR - Certifying Authority Withdrawn and Recovered Amounts and Pending Recoveries • the amounts recovered which have been deducted from those statements of expenditure; • a statement of amounts to be recovered as at 31 December of the preceding year, classified by the year in which recovery orders were issued.

35. Thanks for your attention