IFDR - Financial Institute for Regional Development IFDR - Certifying Authority

1. Understanding the roles and functions of Certifying and Audit Authorities in European Territorial Cooperation ProgrammesLisbon, 28/29 April 2009Experience of a Certifying AuthorityFinancial Institute for Regional Development

2. Summary • IFDR - Financial Institute for Regional Development • IFDR - Certifying Authority

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

4. 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. IFDR - Financial Institute for Regional Development Main responsabilities

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

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

7. Group Body Unit Temporary project team IFDR - Financial Institute for Regional Development Statutory Auditor Directive Council Vice-Chairman Chairman Vice-Chairman 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 ERDF TA OP Technical Secretariat Technical Documentation

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

9. IFDR - Certifying Authority Community Rules Payment National Correspondent Certification Function Support for Institutional Management Coordination of Operational Management Certification Unit

10. IFDR - Certifying Authority Community Rules Summary Chart PT PT PT PT PT

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

12. IFDR - Certifying Authority Community Rules 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; • In the description of the management and control systems are defined the information to be provided by the MA • Certificate • Statement of expenditure by priority axis • list of projects

13. IFDR - Certifying Authority Community Rules Functions as Certifying Authority • Taking account for certification purposes 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.

14. 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.

15. Staff Staff Certifying Authority Separation of Functions Directive Council Vice-Chairman Certification Control of Statements of Expenditure ERDF and Cohesion Fund

16. Certifying Authority 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. Groups: ERDF and Cohesion Fund

17. Certifying Authority 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). Groups: Control of Statements of Expenditure

18. Workflow Technical and financial analysis and control of statements of expenditure

19. Workflow Certified statements of expenditure and applications for payment

20. 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.

21. 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.

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

23. Certifying Authority Forecast for Payment 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.

24. 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. 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.

25. Certifying Authority Financial Flows

26. Certifying Authority Financial Flows

27. Thank you for your attention! More information at your disposalwww.qca.pt or for specific requestsuc@ifdr.pt