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213
EN EN EUROPEAN COMMISSION Brussels, 26.2.2016 SWD(2016) 48 final COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN COURT OF AUDITORS, THE COUNCIL AND THE EUROPEAN PARLIAMENT Member States' replies to the Court of Auditors' 2014 Annual Report {COM(2016) 112 final} 094962/EU XXV.GP Eingelangt am 29/02/16

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EN EN

EUROPEANCOMMISSION

Brussels, 26.2.2016 SWD(2016) 48 final

COMMISSION STAFF WORKING DOCUMENT Accompanying the document

REPORT FROM THE COMMISSION TO THE EUROPEAN COURT OF AUDITORS, THE COUNCIL AND THE EUROPEAN PARLIAMENT

Member States' replies to the Court of Auditors' 2014 Annual Report

{COM(2016) 112 final}

094962/EU XXV.GPEingelangt am 29/02/16

2

Article 162(5) of the Financial Regulation1 states that as soon as the European Court of Auditors (the Court) has transmitted its annual report, the Commission shall inform the Member States concerned immediately of the details of that report which relate to management of the funds for which they are responsible. Member States should reply within sixty days and the Commission then transmits a summary of the replies to the Court, the European Parliament and the Council before 29 February of the following year.

Following publication of the Court's annual report for the budgetary year 2014, the Commission duly informed Member States of details of the report. This information was presented in the form of a letter and three annexes to be completed by each Member State, as well as the accompanying gudielines on the preparation and presentation of replies to the questionnaires. Annex I was a questionnaire on the paragraphs referring to the individual Member States; annex II was a questionnaire on audit findings which refer to each Member State and annex III was a questionnaire on topical findings related to shared management for DAS 2014. This Staff Working Document (SWD), which comprises the Member States' replies to Annex I and Annex III , accompanies the report from the Commission "Member States' replies to the European Court of auditors' 2014 annual report2.

1 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002. OJ L 298, 26.10.2012, p. 1. 2 The replies to Annex II are not included in the SWD as they concern individual SPFs sent to Member States.

CO

NT

EN

T-

plea

se, u

se h

yper

links

for

quic

k na

viga

tion

thro

ugh

the

docu

men

t

AN

NE

X I

A

NN

EX

III A

CH

APT

ER 1

– T

he st

atem

ent o

f ass

uran

ce a

nd su

ppor

ting

info

rmat

ion

CH

APT

ER 2

– B

udge

tary

and

fina

ncia

l man

agem

ent

CH

APT

ER 3

– G

ettin

g re

sults

from

the

EU b

udge

t C

HA

PTER

4 –

Rev

enue

C

HA

PTER

5 –

‘Com

petit

iven

ess f

or g

row

th a

nd jo

bs’

CH

APT

ER 6

– ‘E

cono

mic

, soc

ial a

nd te

rrito

rial c

ohes

ion’

C

HA

PTER

7 –

‘Nat

ural

reso

urce

s’

AU

STR

IA

BEL

GIU

M

BU

LGA

RIA

C

RO

ATI

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CY

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IA

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IN

SWED

EN

UK

4

AN

NE

X I

Para

grap

hs in

the

2014

Ann

ual R

epor

t and

for

each

of t

he 2

014

findi

ngs m

ade

by th

e C

ourt

ref

erri

ng to

eac

h pa

rtic

ular

cou

ntry

CH

APT

ER

1 –

The

stat

emen

t of a

ssur

ance

and

supp

ortin

g in

form

atio

n

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

1.8.

Issu

es a

ffec

ting

the

acco

unts

G

erm

any:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

judg

men

ts d

eliv

ered

by

the

ECJ o

n 24

June

201

5 re

gard

ing

Ber

lin a

nd T

hurin

gia

and

annu

lling

C

omm

issi

on d

ecis

ions

on

extra

pola

ted

and

flat-r

ate

finan

cial

cor

rect

ions

tota

lling

€94

m. i

n th

e 19

94-1

999

perio

d ar

e no

w a

vaila

ble.

Pay

men

ts h

ave

not y

et b

een

mad

e by

the

Com

mis

sion

. Oth

er a

ctio

ns a

re p

endi

ng

befo

re th

e EG

C in

the

sam

e m

atte

r, ha

ving

bee

n ad

jour

ned

until

the

ECJ t

ook

its d

ecis

ion

on B

erlin

and

Th

urin

gia.

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

refe

renc

e to

Spa

in in

the

foot

note

con

cern

s the

ann

ulm

ent o

f thr

ee C

omm

issi

on d

ecis

ions

impo

sing

fin

anci

al c

orre

ctio

ns o

n th

ree

OPs

for t

he p

erio

d 19

94-1

999.

Thi

s red

uctio

n in

ass

ista

nce

will

hav

e to

be

reim

burs

ed b

y th

e C

omm

issi

on to

the

Mem

ber S

tate

. We

unde

rsta

nd th

at n

o m

easu

res n

eed

be ta

ken

by S

pain

to

resp

ond

to th

e ob

serv

atio

ns o

f the

EC

A.

Box

1.2

. Ex

ampl

e of

impr

ovem

ent i

n m

anag

emen

t and

con

trol

syst

ems —

Gre

ece:

Cle

anin

g up

the

LPIS

Gre

ece:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Box

1.3

. Ex

ampl

e of

cor

rect

ions

re

sulti

ng fr

om c

onfo

rmity

cl

eara

nce

proc

edur

es

Fran

ce:

actio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

Con

cern

ant l

e co

nsta

t de

la C

our s

ur le

non

reco

uvre

men

t des

mon

tant

s aup

rès d

es a

gric

ulte

urs,

les a

utor

ités

fran

çais

es so

uhai

tent

app

orte

r les

pré

cisi

ons s

uiva

ntes

. Les

con

stat

s de

la C

omm

issi

on q

ui o

nt d

onné

lieu

à

5

corr

ectio

n, so

nt d

es c

onst

ats q

ui p

orte

nt su

r des

« d

éfai

llanc

es »

aff

ecta

nt le

s pro

cédu

res

de m

ise

en œ

uvre

de

la ré

glem

enta

tion

euro

péen

ne p

ar le

s aut

orité

s fra

nçai

ses.

Par a

illeu

rs, c

omm

e le

pré

cise

la C

our e

lle-m

ême,

ce

rtain

es c

orre

ctio

ns fo

nt l'

obje

t d'u

n re

cour

s dev

ant l

e TU

E, le

s aut

orité

s fra

nçai

ses é

tant

en

désa

ccor

d av

ec le

s se

rvic

es d

e la

Com

mis

sion

sur l

'inte

rpré

tatio

n de

la ré

glem

enta

tion

euro

péen

ne.

Box

1.4

. Ex

ampl

e of

cor

rect

ions

re

sulti

ng in

ext

ra-s

pend

ing:

R

oman

ia E

SF

Rom

ania

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

For t

he S

ecto

ral O

pera

tiona

l Pro

gram

me

Hum

an R

esou

rces

Dev

elop

men

t sin

ce 2

012

Rom

ania

has

app

lied

a 25

%

cor

rect

ion

to a

ll ex

pend

iture

on

sala

ries,

and

subm

itted

to th

e EC

. In

2015

the

corr

ectiv

e m

easu

res

unde

rtake

n at

the

leve

l of t

he M

embe

r Sta

te w

ere

indi

vidu

al c

orre

ctio

ns. W

ith a

7.5

% fl

at ra

te c

orre

ctio

n la

id

dow

n in

the

Mem

oran

dum

app

rove

d at

the

mee

ting

of G

over

nmen

t of 2

8 Ju

ly 2

015

to c

orre

ct th

e ex

pend

iture

re

late

d to

the

calls

for p

roje

cts l

aunc

hed

afte

r 201

2.

Ann

ex 1

.5.

Freq

uncy

of d

etec

ted

erro

rs in

au

dit s

ampl

ing

Aus

tria

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Bel

gium

:ac

tion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

La W

allo

nie

pren

d ac

te d

u ra

ppor

t fin

al d

e la

Cou

r. E

lle c

onst

ate

que

les e

rreu

rs q

uant

ifiée

s son

t in

fine

mar

gina

les.

Elle

regr

ette

tout

efoi

s que

cer

tain

s de

ses a

rgum

ents

n’a

ient

pas

été

pris

en

cons

idér

atio

n pa

r la

Cou

r san

s rée

lle m

otiv

atio

n po

ur le

s aut

res c

onst

atat

ions

.

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Min

istry

of L

abou

r and

Soc

ial P

olic

y (M

LSP)

: As p

art o

f the

Ope

ratio

nal P

rogr

amm

e “H

uman

Res

ourc

e D

evel

opm

ent”

, no

wea

knes

ses a

nd e

rror

s hav

e be

en id

entif

ied

for t

he 2

007–

2013

aud

it pe

riod.

Cro

atia

:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cyp

rus:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Cze

ch R

epub

lic:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Irre

leva

nt –

ther

e is

no

erro

r inv

olve

d.

Den

mar

k:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

Ann

ex p

rese

nts a

n ov

ervi

ew o

f err

ors i

dent

ified

in th

e M

embe

r Sta

tes a

nd d

oes n

ot sh

ow c

lear

ly w

hat

6

actio

n ha

s bee

n ta

ken.

Est

onia

:ac

tion

take

n: Y

ES; a

ctio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

015

Finl

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: 21.

12.2

015

Som

e of

the

reco

verie

s hav

e be

en c

arrie

d ou

t; th

e m

ost r

ecen

t due

dat

e w

as 2

1 D

ecem

ber 2

015.

Ger

man

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Not

ed. M

ore

deta

ils u

nder

the

rele

vant

poi

nts i

n A

nnex

es I

and

II.

Gre

ece:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Hun

gary

:ac

tion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Fact

ual f

indi

ng, w

e ha

ve n

o co

mm

ent t

o m

ake.

Irel

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

With

rega

rd to

hea

ding

2, t

his i

ssue

is b

eing

add

ress

ed v

ia th

e A

ctio

n Pl

an o

n EA

FRD

and

ther

efor

e is

a w

ork

in p

rogr

ess.

With

rega

rd to

hea

ding

1, n

o er

rors

wer

e fo

und

in Ir

elan

d’s a

udit

sam

plin

g, th

is is

prim

arily

due

to

the

fact

that

Irel

and’

s fun

ding

pro

gram

mes

are

prim

arily

cha

nnel

led

thro

ugh

gove

rnm

ent d

epar

tmen

ts a

nd/o

r st

ate

bodi

es a

nd a

s suc

h ar

e su

bjec

t to

full

natio

nal c

ontro

ls a

nd a

udits

.

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 19

Febr

uary

201

5

With

rega

rd to

the

erro

r ide

ntifi

ed in

con

nect

ion

with

MFF

hea

ding

No

2 'N

atur

al R

esou

rces

' (C

hapt

er 7

Nat

ural

reso

urce

s, PF

662

5), o

n 19

Feb

ruar

y 20

15 th

e Pa

ying

Age

ncy

corr

ecte

d th

e de

clar

atio

n fo

r the

per

iod

16 O

ctob

er 2

014

to 3

1 D

ecem

ber 2

014.

With

rega

rd to

the

erro

r ide

ntifi

ed in

con

nect

ion

with

the

ERD

F (c

hapt

er 6

– E

cono

mic

, soc

ial a

nd te

rrito

rial

cohe

sion

, PF

6643

), th

e M

embe

r Sta

te is

not

requ

ired

to u

nder

take

add

ition

al m

easu

res b

ecau

se th

e re

com

men

datio

n re

sulti

ng fr

om th

e au

dit w

as a

ddre

ssed

to th

e Eu

rope

an C

omm

issi

on.

Lith

uani

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

7

Lux

embo

urg:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Mal

ta:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

At p

rese

nt, i

n th

e tw

o ca

ses u

nder

this

obs

erva

tion

whe

re re

fere

nce

is m

ade

to M

alta

, the

Pla

nnin

g an

d Pr

iorit

ies C

oord

inat

ion

Div

isio

n (P

PCD

) is s

till a

t the

stag

e of

rece

ivin

g a

form

al le

tter f

rom

the

Euro

pean

C

omm

issi

on. C

onse

quen

tly, t

he d

ate

of c

ompl

etio

n is

not

yet

kno

wn.

Net

herl

ands

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

Net

herla

nds c

onsi

ders

it u

sefu

l tha

t the

Cou

rt of

Aud

itors

shou

ld in

clud

e th

is ta

ble

in th

e an

nual

repo

rt so

as

to p

rovi

de g

reat

er tr

ansp

aren

cy re

gard

ing

the

unde

rlyin

g da

ta o

n w

hich

the

Cou

rt ba

ses t

he st

atem

ent o

f as

sura

nce.

The

Net

herla

nds w

ould

als

o w

elco

me

a m

ultia

nnua

l sur

vey.

How

ever

, the

lim

itatio

ns o

f the

tabl

e sh

ould

be

mad

e cl

eare

r in

the

tabl

e its

elf,

whi

ch sh

ould

poi

nt o

ut th

ese

are

not e

rror

rate

s per

Mem

ber S

tate

.

Pola

nd:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

note

doe

s not

con

tain

det

aile

d al

lega

tions

aga

inst

Pol

and

Port

ugal

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; Com

plet

ion

date

:

The

situ

atio

ns id

entif

ied

are

curr

ently

bei

ng c

orre

cted

.

Rom

ania

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

MEF

: For

the

purp

oses

of r

educ

ing

the

rate

of e

rror

for S

OPH

RD

pro

ject

s at t

he le

vel o

f the

man

agin

g au

thor

ity, a

num

ber o

f mea

sure

s wer

e im

plem

ente

d as

from

201

4, a

s fol

low

s:

-Ext

endi

ng A

ctio

n W

eb in

form

atio

n sy

stem

thro

ugh

the

deve

lopm

ent o

f new

mod

ules

, in

orde

r to

deta

il th

e ty

pes o

f cos

ts a

nd th

e up

load

ing

of d

ocum

ents

rela

ted

to th

e ap

plic

atio

n fo

r rei

mbu

rsem

ent i

n th

e co

mpu

ter

appl

icat

ion;

-Dev

elop

ing

and

impl

emen

ting

a sy

stem

of a

lerts

for t

he id

entif

icat

ion,

inve

stig

atio

n an

d tre

atm

ent o

f err

ors i

n th

e co

mpu

ter s

yste

m;

-Rev

isin

g th

e O

pera

tion

Sele

ctio

n Pr

oced

ure;

-Rev

iew

ing

the

Met

hodo

logy

for t

he a

sses

smen

t of f

inan

cing

app

licat

ions

;

8

-Int

erna

l Ins

truct

ion

No

105

appl

icab

le to

the

IB g

over

ning

the

requ

est f

or c

larif

icat

ion

at th

e tim

e ev

alua

tion

of p

roje

cts;

-Ins

truct

ion

No

104

on th

e re

gula

tion

of m

atte

rs re

latin

g to

the

cont

ract

ing

proc

ess a

nd a

men

ding

SO

PHR

D

finan

cing

con

tract

s;

-Dev

elop

ing

the

met

hodo

logy

for c

heck

ing

the

spec

ific

expe

rienc

e an

d fo

r ass

essi

ng th

e re

late

d fin

anci

al

impa

ct;

-The

new

ver

sion

of t

he G

ener

al C

ondi

tions

in th

e A

pplic

ant’s

Gui

de fo

r 201

5, w

hich

con

tain

pro

visi

ons

refe

rrin

g to

the

poss

ibili

ty to

requ

est c

larif

icat

ion

in th

e fin

anci

ng a

pplic

atio

n as

sess

men

t pha

se;

-The

revi

sion

of t

he F

inan

cial

Man

agem

ent P

roce

dure

, in

parti

cula

r the

spec

ific

subs

ectio

ns, w

ith a

vie

w to

de

velo

ping

a v

erifi

catio

n in

stru

men

t for

the

exis

tenc

e of

ove

rlapp

ing

dutie

s/re

spon

sibi

litie

s for

item

s bud

gete

d in

the

proj

ect,

whe

re th

e re

fere

nce

docu

men

ts d

evel

oped

by

each

exp

ert i

n th

e pr

ojec

t wer

e th

e ac

tivity

repo

rts;

-Ins

truct

ion

No

103

on th

e re

gula

tion

of m

atte

rs re

latin

g to

the

mon

itorin

g pr

oces

s for

the

impl

emen

tatio

n of

SO

PHR

D fi

nanc

ing

cont

ract

s.

Slov

akia

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Min

istry

of T

rans

port,

Con

stru

ctio

n an

d R

egio

nal D

evel

opm

ent –

Aud

it PF

609

1 D

AS

2013

was

con

duct

ed o

n th

e O

pera

tiona

l Pro

gram

me

Tran

spor

t in

Mar

ch 2

014.

Onc

e ac

tion

had

been

take

n by

the

man

agin

g au

thor

ity,

the

audi

t was

clo

sed

furth

er to

a D

G R

EGIO

lette

r of 7

Oct

ober

201

5, re

fere

nce

num

ber A

res(

2015

) 413

6726

(s

ee th

e em

ail a

ttach

men

t). A

ll of

this

aud

it’s f

indi

ngs w

ere

clos

ed b

y D

G R

EGIO

with

out a

ny in

elig

ible

ex

pend

iture

bei

ng id

entif

ied.

The

Ope

ratio

nal P

rogr

amm

e Tr

ansp

ort’s

MA

alre

ady

prov

ided

info

rmat

ion

on

Aud

it PF

609

1 D

AS

2013

in D

ecem

ber 2

014

in re

latio

n to

the

Euro

pean

Cou

rt of

Aud

itors

’ 201

3 A

nnua

l R

epor

t.

Min

istry

of A

gric

ultu

re a

nd R

ural

Dev

elop

men

t – th

e M

inis

try n

otes

that

act

ion

was

take

n an

d co

mpl

eted

in

resp

onse

to th

e ty

pe o

f inf

ringe

men

t. Th

e w

ay in

whi

ch th

e ac

tion

was

take

n is

des

crib

ed b

elow

(Ann

ex II

).

Slov

enia

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Min

istry

of A

gric

ultu

re, F

ores

try a

nd F

ood

(MK

GP)

, Eur

opea

n A

gric

ultu

ral F

und

for R

ural

Dev

elop

men

t

9

(EA

FRD

): Sl

oven

ia re

gula

rly m

onito

rs th

e er

ror r

ate

for r

ural

dev

elop

men

t mea

sure

s (EA

FRD

) in

the

fram

ewor

k of

the

annu

al re

ports

on

the

impl

emen

tatio

n of

the

rura

l dev

elop

men

t pro

gram

me,

the

repo

rts o

n th

e co

ntro

l sta

tistic

s and

the

repo

rt of

the

payi

ng a

genc

y to

the

man

agin

g au

thor

ity o

n er

rors

det

ecte

d fo

r the

pr

evio

us c

alen

dar y

ear.

For i

nter

vent

ion

in th

e ar

ea o

f the

err

or ra

te, a

spec

ial t

ask

forc

e to

redu

ce th

e er

ror r

ate

was

app

oint

ed b

y or

der o

f the

Min

iste

r for

the

impl

emen

tatio

n of

the

rura

l dev

elop

men

t pro

gram

me

for t

he

perio

d 20

07-2

013,

whi

ch in

clud

es re

pres

enta

tives

of t

he M

inis

try o

f Agr

icul

ture

, For

estry

and

Foo

d (M

KG

P),

the

Age

ncy

of th

e R

epub

lic o

f Slo

veni

a fo

r Agr

icul

tura

l Mar

kets

and

Rur

al D

evel

opm

ent (

AA

MR

D) a

nd th

e C

ham

ber o

f Agr

icul

ture

and

For

estry

of S

love

nia

(CA

FS).

The

func

tioni

ng o

f the

spec

ial g

roup

s con

tinue

s in

the

perio

d 20

14-2

020.

Slo

veni

a pe

riodi

cally

(at l

east

onc

e a

year

) rep

orts

to th

e Eu

rope

an C

omm

issi

on (D

G

AG

RI)

on

the

activ

ities

of t

he m

anag

ing

auth

ority

and

the

payi

ng a

genc

y w

ith re

gard

to a

ctiv

ities

car

ried

out

with

in th

e co

ntex

t of t

he im

plem

enta

tion

of th

e ac

tion

plan

to re

duce

the

erro

r rat

e. In

add

ition

, the

err

or ra

te is

di

scus

sed

with

the

Euro

pean

Com

mis

sion

in th

e an

nual

revi

ew m

eetin

g.

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Swed

en:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

This

com

men

t doe

s not

requ

ire S

wed

en to

take

act

ion.

Uni

ted

Kin

gdom

: ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

This

tabl

e re

ports

the

num

ber o

f err

ors d

etec

ted

in th

e au

dit s

ampl

ing

for 2

014.

As t

he E

CA

stat

es, t

he

exam

ples

pro

vide

d in

the

annu

al re

port

are

for i

llust

rativ

e pu

rpos

es a

nd d

emon

stra

te th

e m

ost t

ypic

al e

rror

s fo

und,

and

do

not f

orm

a b

asis

for c

oncl

usio

ns to

be

draw

n on

the

Mem

ber S

tate

s, be

nefic

iary

stat

es a

nd/o

r re

gion

s con

cern

ed.

In re

latio

n to

the

serio

us e

rror

s ide

ntifi

ed in

nat

ural

reso

urce

s spe

ndin

g, th

e ne

cess

ary

reco

very

act

ion

or

sanc

tion

has e

ither

bee

n co

mpl

eted

or i

s und

erw

ay in

ord

er to

safe

guar

d EU

fund

s. In

rela

tion

to th

e se

rious

er

ror i

n ER

DF,

the

ERD

F M

anag

ing

Aut

horit

y ha

s res

pond

ed to

the

prel

imin

ary

findi

ngs o

f the

Cou

rt an

d ha

s co

ntes

ted

the

Cou

rt’s i

nter

im fi

ndin

gs, p

rovi

ding

furth

er in

form

atio

n. T

he E

urop

ean

Cou

rt O

f Aud

itors

has

not

ye

t iss

ued

its d

efin

itive

pos

ition

in re

spec

t of t

his p

oten

tial e

rror

, whi

ch is

exp

ecte

d in

Feb

ruar

y 20

16.

10

CH

APT

ER

2 –

Bud

geta

ry a

nd fi

nanc

ial m

anag

emen

t

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

2.17

.B

ackl

ogs i

n th

e ab

sorp

tion

of

mul

tiann

ual E

urop

ean

Stru

ctur

al a

nd In

vest

men

t (E

SI) f

unds

are

sign

ifica

nt

Cro

atia

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: 3

1 D

ecem

ber 2

016

The

man

agin

g au

thor

ities

pre

pare

det

aile

d qu

arte

rly re

ports

on

the

stat

us o

f im

plem

enta

tion,

whi

ch a

re

subm

itted

to th

e Eu

rope

an C

omm

issi

on (D

G R

egio

), an

d in

clud

e al

l the

info

rmat

ion

requ

ired

unde

r the

Act

ion

Plan

to a

ccel

erat

e im

plem

enta

tion

of o

pera

tiona

l pro

gram

mes

fina

nced

by

the

ERD

F an

d C

F in

the

perio

d 20

07-2

013

(sta

tus o

f phy

sica

l and

fina

ncia

l im

plem

enta

tion,

revi

ew o

f use

r sup

port

mea

sure

s, im

plem

enta

tion

of o

n-th

e-sp

ot c

heck

s, th

e co

mm

erci

al st

atus

of c

ontra

cts f

or in

divi

dual

pro

ject

s, th

e st

atus

of a

dmin

istra

tive

capa

city

, etc

.). T

here

afte

r, at

mee

tings

or v

ideo

con

fere

nces

(bet

wee

n th

e m

anag

ing

auth

oriti

es, t

he c

ertif

ying

au

thor

ity a

nd th

e D

G R

egio

Uni

t for

Cro

atia

) the

info

rmat

ion

is d

iscu

ssed

in th

e co

ntex

t of t

akin

g al

l nec

essa

ry

mea

sure

s to

ensu

re p

rope

r util

isat

ion

of th

e O

Ps. R

epor

ting

bega

n in

the

first

qua

rter o

f 201

5 an

d w

ill ru

n un

til

the

end

of th

e fin

anci

al p

ersp

ectiv

e i.e

. unt

il th

e en

d of

201

6.

The

man

agin

g au

thor

ity p

repa

res q

uarte

rly fi

nanc

ial r

epor

ts o

n th

e st

atus

of i

mpl

emen

tatio

n, w

hich

are

su

bmitt

ed to

the

Euro

pean

Com

mis

sion

(DG

EM

PL),

and

whi

ch in

clud

e al

l req

uire

d in

form

atio

n re

late

d to

the

impl

emen

tatio

n of

the

oper

atio

nal p

rogr

amm

e fin

ance

d by

the

ESF

in th

e pe

riod

2007

201

3.

2.18

.B

ackl

ogs i

n th

e ab

sorp

tion

of

mul

tiann

ual E

urop

ean

Stru

ctur

al a

nd In

vest

men

t (E

SI) f

unds

Cze

ch R

epub

lic:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Seve

ral a

ctio

ns h

ave

been

take

n, so

me

of w

hich

rem

ain

ongo

ing,

whi

le o

ther

s hav

e co

me

to a

n en

d (e

.g. t

he

subm

issi

on o

f a re

ques

t for

pro

ject

pha

sing

bet

wee

n th

e pr

ogra

mm

ing

perio

ds 2

007-

2013

and

201

4-20

20,

prog

ram

me

revi

sion

s, th

e la

unch

of n

ew c

alls

, pro

ject

impl

emen

tatio

n ex

tens

ions

, mor

e ex

tens

ive

com

mun

icat

ion

with

gra

ntee

s, en

hanc

ed ri

sk m

anag

emen

t).

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Pola

nd:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

11

Not

e do

es n

ot c

onta

in a

llega

tions

aga

inst

Pol

and

Rom

ania

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

MD

RA

P: T

he m

anag

ing

auth

ority

for t

he re

gion

al o

pera

tiona

l pro

gram

me

has t

aken

the

follo

win

g m

easu

res

to in

crea

se th

e de

gree

of a

bsor

ptio

n:

— th

e in

trodu

ctio

n of

a m

echa

nism

for t

he se

ttlem

ent o

f pay

men

t cla

ims i

nste

ad o

f rei

mbu

rsem

ent;

— e

nsur

ing

the

mon

thly

fund

s nec

essa

ry fo

r the

pay

men

ts to

the

bene

ficia

ries o

f pay

men

ts o

f priv

atis

atio

n;

— a

ppro

val o

f add

ition

al c

ontra

ctin

g fr

om a

xes l

evel

to p

rogr

amm

e le

vel;

— su

ppor

ting

finan

cial

cor

rect

ions

from

the

Stat

e bu

dget

for b

enef

icia

ries w

hose

pub

lic p

rocu

rem

ent c

ontra

cts

wer

e ap

prov

ed b

y U

CV

AP

and

AN

RM

AP.

MEF

: Mea

sure

s tak

en in

ord

er to

incr

ease

the

abso

rptio

n of

EU

fund

s:

-Ens

urin

g th

e fu

nds n

eces

sary

for t

he p

aym

ents

to b

enef

icia

ries,

give

n th

e ga

p be

twee

n ex

pend

iture

st

atem

ent/c

laim

to th

e EC

and

the

rece

ipts

;

-Ide

ntifi

catio

n an

d pr

omot

ion

of re

trosp

ectiv

e pr

ojec

ts, i

.e. p

roje

cts i

nitia

lly fi

nanc

ed fr

om n

atio

nal s

ourc

es o

r ot

her s

ourc

es (i

nclu

ding

IFIs

), w

hich

are

to b

e se

ttled

from

EU

fund

s, by

thei

r app

rova

l und

er E

nviro

nmen

t Se

ctor

al O

pera

tiona

l Pro

gram

me

2007

-201

3 an

d Tr

ansp

ort O

pera

tiona

l Pro

gram

me

2007

-201

3 in

ord

er to

fully

at

tract

the

Euro

pean

fund

s ava

ilabl

e.

-Red

ucin

g th

e de

adlin

e fr

om 4

5 w

orki

ng d

ays t

o 20

wor

king

day

s to

notif

y th

e be

nefic

iary

of t

he p

aym

ent f

or

the

expe

nditu

re a

utho

rised

in th

e re

fund

app

licat

ion

or, i

n th

e ca

se o

f dire

ct p

aym

ents

, to

notif

y th

e be

nefic

iary

of

aut

horis

ing

the

expe

nditu

re in

the

refu

nd a

pplic

atio

n.

-Est

ablis

hing

a m

echa

nism

for d

irect

settl

emen

t of t

he a

pplic

atio

ns fo

r pay

men

t to

loca

l ben

efic

iarie

s fai

ling

to

settl

e in

voic

es fo

r goo

ds/s

ervi

ces/

wor

ks re

ceiv

ed, a

ccep

ted

for p

aym

ent,

in o

rder

to e

nsur

e th

e fin

anci

al fl

ow to

en

able

tim

ely

impl

emen

tatio

n of

pro

ject

s.

-Ext

ensi

on o

f the

app

licab

ility

of t

he se

ttlem

ent m

echa

nism

for t

he p

aym

ent c

laim

to a

ll ca

tego

ries o

f be

nefic

iarie

s of p

roje

cts f

inan

ced

from

Eur

opea

n gr

ants

, inc

ludi

ng p

rivat

e be

nefic

iarie

s, fa

iling

to se

ttle

12

invo

ices

for g

oods

/ser

vice

s/w

orks

rece

ived

and

acc

epte

d fo

r pay

men

t;

-Tra

inin

g m

easu

res a

nd in

crea

sing

the

adm

inis

trativ

e ca

paci

ty o

f ben

efic

iarie

s in

acce

ssin

g Eu

rope

an fu

nds;

-Set

ting

the

perc

enta

ge o

f add

ition

al c

ontra

ctin

g at

ope

ratio

nal p

rogr

amm

e le

vel a

nd n

ot o

nly

at p

riorit

y ax

is

leve

l

-Ins

truct

ions

/ord

ers w

ith im

pact

on

the

impl

emen

tatio

n of

pro

ject

s fin

ance

d fr

om E

urop

ean

fund

s.

The

mea

sure

s tak

en b

y th

e co

mpe

tent

aut

horit

ies h

ave

led

to a

stru

ctur

al im

prov

emen

t of t

he m

anag

emen

t of

the

Euro

pean

fund

s, le

adin

g to

an

incr

ease

d ra

te o

f abs

orpt

ion

and

to a

mor

e ef

ficie

nt u

se o

f the

fund

s.

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

With

rega

rd to

the

ESF,

the

situ

atio

n ha

s im

prov

ed si

gnifi

cant

ly in

201

5 an

d th

eref

ore

ther

e is

con

side

red

to b

e no

real

risk

of l

oss o

f fun

ds. A

ccor

ding

to th

e qu

arte

rly im

plem

enta

tion

repo

rt su

bmitt

ed b

y th

e m

anag

ing

auth

ority

(thi

rd q

uarte

r of 2

015)

:

-Int

erim

pay

men

t req

uest

s pro

cess

ed: 8

1.30

%.

-Tot

al e

xpen

ditu

re a

ctua

lly p

aid:

94.

97 %

.

-Tot

al e

xecu

tion

(app

rove

d, c

omm

itted

or p

aid

expe

nditu

re):

105.

38 %

.

Furth

erm

ore,

like

the

Com

mis

sion

, the

Mem

ber S

tate

is a

ctiv

ely

wor

king

on

the

adop

tion

of th

e ne

w

prog

ram

mes

for t

he p

erio

d 20

14-2

020.

Thr

ough

out 2

015,

mos

t of t

he E

SIF

prog

ram

mes

for t

he n

ew p

erio

d ar

e be

ing

appr

oved

. Thi

s is a

con

side

rabl

e im

prov

emen

t on

the

situ

atio

n in

201

4, w

hen

ther

e w

as a

cle

ar d

elay

in

this

asp

ect.

Gra

ph 2

.4.

Abs

orpt

ion

in %

and

tota

ls o

f 20

07-2

013

MFF

ESI

fund

s A

ustr

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

Bel

gium

:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cro

atia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

The

man

agin

g au

thor

ity p

repa

res q

uarte

rly fi

nanc

ial r

epor

ts o

n th

e st

atus

of i

mpl

emen

tatio

n, w

hich

are

su

bmitt

ed to

the

Euro

pean

Com

mis

sion

(DG

EM

PL),

and

whi

ch in

clud

e al

l req

uire

d in

form

atio

n re

late

d to

the

13

impl

emen

tatio

n of

the

oper

atio

nal p

rogr

amm

e fin

ance

d by

the

ESF

in th

e pe

riod

2007

-201

3.

Cyp

rus:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: C

zech

Rep

ublic

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Seve

ral a

ctio

ns h

ave

been

take

n, so

me

of w

hich

rem

ain

ongo

ing,

whi

le o

ther

s hav

e co

me

to a

n en

d (e

.g. p

roje

ct p

hasi

ng

betw

een

the

prog

ram

min

g pe

riods

200

7-20

13 a

nd 2

014-

2020

, pro

gram

me

revi

sion

s, th

e la

unch

of n

ew c

alls

, pro

ject

im

plem

enta

tion

exte

nsio

ns, m

ore

exte

nsiv

e co

mm

unic

atio

n w

ith g

rant

ees,

enha

nced

risk

man

agem

ent).

Den

mar

k:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Req

uest

s for

pay

men

t fro

m th

e R

egio

nal D

evel

opm

ent F

und

and

Soci

al F

und

that

exc

eed

the

95 %

lim

it, se

e A

rticl

e 79

of C

ounc

il R

egul

atio

n (E

C) N

o 10

83/2

006

for t

he 2

007–

2013

pro

gram

min

g pe

riod,

hav

e be

en

subm

itted

to th

e C

omm

issi

on. W

ith re

gard

to th

e ut

ilisa

tion

rate

for E

AFR

D a

nd E

FF, t

he w

eigh

ted

tota

l for

th

e tw

o fu

nds i

s exp

ecte

d to

be

97 %

by

the

end

of th

e ye

ar.

Est

onia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Finl

and:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Fr

ance

: ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: C

lôtu

re d

es p

rogr

amm

es 2

007-

2013

Po

ur le

s pro

gram

mes

opé

ratio

nnel

s - P

O F

EDER

200

7-20

13, l

es d

onné

es d

e la

Com

mis

sion

eur

opée

nne

et d

e la

Cou

r des

co

mpt

es e

urop

éenn

e, a

u 31

/12/

2014

, son

t inf

érie

ures

à c

elle

s enr

egis

trées

par

la F

ranc

e à

la m

ême

pério

de. L

a Fr

ance

ef

fect

ue e

n ef

fet s

on su

ivi s

ur la

bas

e du

mon

tant

des

dép

ense

s cer

tifié

es p

ar l’

auto

rité

de c

ertif

icat

ion,

tand

is q

ue le

s do

nnée

s de

la C

omm

issi

on e

urop

éenn

e so

nt is

sues

des

der

nier

s app

els d

e fo

nds e

t son

t, pa

r con

séqu

ent,

moi

ns é

levé

es.

Au

01/0

1/20

15 (é

tat f

inan

cier

le p

lus p

roch

e de

la d

ate

du 3

1/12

/201

4), p

our l

’obj

ectif

« c

ompé

titiv

ité ré

gion

ale

et e

mpl

oi

», le

taux

de

certi

ficat

ion

s’él

evai

t à 8

3,45

% d

e la

maq

uette

fina

nciè

re U

E et

83,

18 %

du

coût

tota

l de

la m

aque

tte

finan

cièr

e. P

our l

’obj

ectif

« c

onve

rgen

ce »

, il s

’éle

vait

à 69

,61

% d

e la

maq

uette

fina

nciè

re U

E et

68,

36 %

du

coût

tota

l de

la m

aque

tte.

Par a

illeu

rs, a

fin d

’ant

icip

er la

pér

iode

de

clôt

ure,

tout

es le

s aut

orité

s de

gest

ion

des P

O F

EDER

200

7-20

13 o

nt m

is e

n œ

uvre

, dès

la fi

n 20

14 e

t tou

t au

long

de

l’ann

ée 2

015,

des

pla

ns d

’act

ion

dest

inés

à s’

assu

rer q

ue l’

inté

gral

ité d

es fo

nds

euro

péen

s mis

à la

dis

posi

tion

des r

égio

ns se

ra u

tilis

ée.

Pour

le P

O F

SE C

RE,

au

31.1

2.20

14, l

e p

ourc

enta

ge d

es c

rédi

ts F

SE d

écla

ré d

ans u

n ap

pel d

e fo

nds à

la C

omm

issi

on

euro

péen

ne s’

élev

ait à

74,

5% d

u pr

ogra

mm

e, le

taux

de

certi

ficat

ion

des c

rédi

ts F

SE à

cet

te d

ate

est d

e 77

,4%

.Pou

r le

FSE

des P

O C

onve

rgen

ce, l

e ta

ux d

e dé

clar

atio

n de

s cré

dits

FSE

s’él

evai

t à c

ette

dat

e à

78,6

% e

t le

taux

de

certi

ficat

ion

à 79

,35%

.

14

Ger

man

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Not

ed

Gre

ece:

actio

n ta

ken:

NO

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Pa

rt of

the

actio

ns h

as b

een

com

plet

ed.

Hun

gary

:act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Fact

ual f

indi

ng, w

e ha

ve n

o co

mm

ent t

o m

ake.

Ir

elan

d:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Irel

and’

s abs

orpt

ion

leve

l is c

urre

ntly

90%

(the

cur

rent

EU

28 a

vera

ge is

87.

9%),

and

is o

n tra

ck to

mak

e fin

al d

raw

dow

n an

d en

ter t

he c

losu

re p

roce

ss. T

he sc

atte

r cha

rt be

side

is m

isle

adin

g as

it g

ives

the

com

mitm

ents

and

pay

men

ts in

bill

ions

of

eur

os –

Irel

and

has a

com

para

tivel

y sm

all E

SIF

com

mitm

ent,

so a

ppea

rs n

eglig

ible

on

the

grap

h.

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 5 D

ecem

ber 2

014

To p

reve

nt th

e ris

k of

losi

ng E

U fu

nd fi

nanc

ing

in 2

014

the

proj

ects

con

cern

ed w

ere

trans

ferr

ed fr

om th

e op

erat

iona

l pr

ogra

mm

e In

fras

truct

ure

and

Serv

ices

to th

e op

erat

iona

l pro

gram

me

Entre

pren

eurs

hip

and

Inno

vatio

ns. T

hese

mea

sure

s w

ere

coor

dina

ted

and

on 5

Dec

embe

r 201

4 th

ey w

ere

endo

rsed

by

the

Euro

pean

Com

mis

sion

(Com

mis

sion

lette

r A

res(

2014

)407

9662

of 5

Dec

embe

r 201

4). L

atvi

a is

abo

ve a

vera

ge a

mon

g th

e EU

-28

in te

rms o

f atta

inin

g fin

anci

al

targ

ets.

Sinc

e th

e pr

ojec

t tra

nsfe

r in

2014

ther

e ar

e no

long

er a

ny in

dica

tions

that

EU

fund

fina

ncin

g w

ill n

ot b

e us

ed in

fu

ll.

Lith

uani

a: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: Th

e re

port

of th

e Eu

rope

an C

ourt

of A

udito

rs (‘

the

Cou

rt’) d

epic

ts L

ithua

nia

as a

Mem

ber S

tate

mak

ing

best

use

of t

he

fund

s of t

he E

urop

ean

Uni

on (‘

the

EU’)

stru

ctur

al a

nd in

vest

men

t fun

ds fo

r 200

7-20

13.

In im

plem

entin

g th

e op

erat

iona

l pro

gram

mes

for t

he 2

007-

2013

fina

ncin

g pe

riod

(the

Ope

ratio

nal P

rogr

amm

e fo

r Ec

onom

ic G

row

th a

ppro

ved

by C

omm

issi

on D

ecis

ion

No

C(2

007)

3740

of 3

0 Ju

ly 2

007

as la

st a

men

ded

by C

omm

issi

on

Dec

isio

n N

o C

(201

4)36

43 o

f 2 Ju

ne 2

014,

the

Ope

ratio

nal P

rogr

amm

e fo

r the

Pro

mot

ion

of C

ohes

ion

appr

oved

by

Com

mis

sion

Dec

isio

n N

o C

(200

7)37

38 o

f 30

June

200

7 as

last

am

ende

d by

Com

mis

sion

Dec

isio

n N

o C

(201

4)34

76 o

f 26

May

201

4, th

e O

pera

tiona

l Pro

gram

me

for t

he D

evel

opm

ent o

f Hum

an R

esou

rces

app

rove

d by

Com

mis

sion

Dec

isio

n

15

No

C(2

007)

4475

of 2

4 Se

ptem

ber 2

007

as la

st a

men

ded

by C

omm

issi

on D

ecis

ion

No

C(2

013)

6262

of 2

6 Se

ptem

ber

2013

and

the

Ope

ratio

nal P

rogr

amm

e fo

r Tec

hnic

al A

ssis

tanc

e ap

prov

ed b

y C

omm

issi

on D

ecis

ion

No

C(2

007)

6717

of

18 D

ecem

ber 2

007

as la

st a

men

ded

by C

omm

issi

on D

ecis

ion

No

C(2

013)

6269

of 1

Oct

ober

201

3), L

ithua

nia

has u

sed

abou

t EU

R 6

.6 b

illio

n (9

8% o

f the

EU

fund

s allo

cate

d). T

he re

mai

ning

shar

e to

be

used

by

31 D

ecem

ber 2

015

is a

bout

2%

of t

he E

U fu

nds a

lloca

ted.

Th

e hi

gh a

bsor

ptio

n ra

te o

f EU

stru

ctur

al fu

nds i

n Li

thua

nia

is a

resu

lt of

con

tinuo

us m

onito

ring

of th

e us

e of

fund

s, re

spon

sibl

e pl

anni

ng o

f fun

ds in

line

with

the

coun

try’s

nee

ds a

nd m

onito

ring

of h

igh-

risk

proj

ects

co-

finan

ced

by th

e EU

fu

nds (

‘pro

ject

s’).

Lux

embo

urg:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: En

lign

e av

ec la

pla

nific

atio

n

Mal

ta:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: 31/

03/2

017

The

proc

edur

es p

rovi

ded

for —

such

as a

uditi

ng, c

ertif

icat

ion,

clo

sure

wor

k, e

tc.,

— a

re c

urre

ntly

ong

oing

in

rela

tion

to p

aym

ents

that

hav

e al

read

y be

en m

ade

and

even

tual

ly th

ose

that

are

exp

ecte

d to

be

proc

esse

d by

the

end

of D

ecem

ber 2

015.

N

ethe

rlan

ds:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: N

o re

mar

ks c

once

rnin

g th

e N

ethe

rland

s Po

land

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Not

e do

es n

ot c

onta

in a

llega

tions

aga

inst

Pol

and

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

Rom

ania

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

MEF

-MA

SO

P H

RD

: int

ents

to st

op th

e N

EETs

phe

nom

enon

in E

urop

e, a

nd D

G H

CP

exam

ines

the

use

of re

troac

tive

finan

cial

ass

ista

nce

in o

rder

to m

axim

ise

the

perf

orm

ance

of S

OPH

RD

200

7-20

13 (P

A 2

and

PA

5) i

n th

is p

riorit

y se

gmen

t on

the

Euro

pean

age

nda

for 2

020.

Slov

akia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Act

ion

to d

raw

on

EU re

sour

ces i

s tak

en in

col

labo

ratio

n w

ith a

Com

mis

sion

wor

king

par

ty e

stab

lishe

d in

201

4. T

he

16

resu

lts o

f the

act

ion

are

perio

dica

lly m

onito

red

at jo

int m

eetin

gs b

etw

een

Slov

akia

and

the

Com

mis

sion

. Sl

oven

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Sp

ain:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 12

Oct

ober

201

5 EF

F an

d FI

FG: R

epro

gram

min

g of

the

finan

cial

pla

n, a

ppro

ved

by C

omm

issi

on D

ecis

ion

of 1

2 O

ctob

er 2

015.

Sw

eden

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

com

men

t doe

s not

requ

ire S

wed

en to

take

act

ion.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

gra

ph sh

ows a

bsor

ptio

n ra

tes f

or E

U c

ount

ries.

G

raph

2.5

. O

utst

andi

ng c

omm

itmen

ts o

f ES

I fun

ds

Aus

tria

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Bel

gium

:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cro

atia

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cyp

rus:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Th

e m

anag

ing

auth

ority

(DG

EPC

D) i

s cur

rent

ly p

repa

ring

a m

anag

emen

t and

con

trol s

yste

m fo

r the

inte

grat

ed

info

rmat

ion

syst

em, a

nd a

lso

prep

arin

g to

ass

ign

resp

onsi

bilit

ies t

o co

mpe

tent

bod

ies t

o en

able

the

incl

usio

n of

pr

ojec

ts a

nd th

e ce

rtific

atio

n of

exp

endi

ture

with

in th

e fr

amew

ork

of th

e pr

ogra

mm

es c

o-fin

ance

d by

the

fund

s:

ERD

F, C

F, E

MFF

and

ESF

by

the

dead

line

for u

nder

taki

ng th

e co

mm

itmen

ts fo

r 201

4 la

id d

own

in th

e re

leva

nt re

gula

tions

(31

Dec

embe

r 201

7).

Cze

ch R

epub

lic: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Se

vera

l act

ions

hav

e be

en ta

ken,

som

e of

whi

ch re

mai

n on

goin

g, w

hile

oth

ers h

ave

com

e to

an

end

(e.g

. pro

ject

pha

sing

be

twee

n th

e pr

ogra

mm

ing

perio

ds 2

007-

2013

and

201

4-20

20, p

rogr

amm

e re

visi

ons,

the

laun

ch o

f new

cal

ls, p

roje

ct

impl

emen

tatio

n ex

tens

ions

, mor

e ex

tens

ive

com

mun

icat

ion

with

gra

ntee

s, en

hanc

ed ri

sk m

anag

emen

t).

17

Den

mar

k:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Req

uest

s for

pay

men

t fro

m th

e R

egio

nal D

evel

opm

ent F

und

and

Soci

al F

und

that

exc

eed

the

95 %

lim

it, se

e A

rticl

e 79

of C

ounc

il R

egul

atio

n (E

C) N

o 10

83/2

006

for t

he 2

007–

2013

pro

gram

min

g pe

riod,

hav

e be

en

subm

itted

to th

e C

omm

issi

on. W

ith re

gard

to th

e ut

ilisa

tion

rate

for E

AFR

D a

nd E

FF, t

he w

eigh

ted

tota

l for

th

e tw

o fu

nds i

s exp

ecte

d to

be

97 %

by

the

end

of th

e ye

ar.

Est

onia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Finl

and:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Fr

ance

: ac

tion

take

n: Y

ES; a

ctio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: C

lôtu

re d

es p

rogr

amm

es 2

007-

2013

Le

mon

tant

des

eng

agem

ents

rest

ant à

liqu

ider

au

titre

du

FED

ER, a

u 31

déc

embr

e 20

14, e

st sa

tisfa

isan

t. G

erm

any:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: A

s mat

ters

stan

d, it

seem

s lik

ely

that

ther

e w

ill b

e al

mos

t no

unut

ilise

d am

ount

s fro

m th

e ER

DF

in th

e 20

07-

2013

pro

gram

min

g pe

riod.

Pay

men

ts st

ill to

be

calle

d w

ill b

e re

ques

ted

by m

eans

of p

aym

ent c

laim

s to

be

mad

e in

the

year

s 201

5 an

d 20

16 a

nd w

ith th

e fin

al c

laim

for p

aym

ent.

Gre

ece:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: H

unga

ry:a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Fa

ctua

l fin

ding

, we

have

no

com

men

t to

mak

e.

Irel

and:

actio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: ES

IF su

ppor

t as a

who

le m

akes

a sm

all p

ortio

n of

Irel

and’

s gov

ernm

ent e

xpen

ditu

re, s

o th

e ou

tsta

ndin

g co

mm

itmen

ts

mak

e up

a v

ery

smal

l pro

porti

on o

f gov

ernm

ent e

xpen

ditu

re. I

n te

rms o

f dra

win

g do

wn

our o

utst

andi

ng c

omm

itmen

ts,

Irel

and

does

not

fore

see

any

issu

es im

pact

ing

clos

ure

of o

ur E

RD

F an

d ES

F pr

ogra

mm

es fo

r 200

7-20

13.

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 5 D

ecem

ber 2

014

See

expl

anat

ion

prov

ided

und

er o

bser

vatio

n 1

Lith

uani

a: a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

18

Lux

embo

urg:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: En

lign

e av

ec la

pla

nific

atio

n

Mal

ta:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: 31/

12/2

015

The

outs

tand

ing

com

mitm

ents

hav

e be

en p

rogr

essi

vely

dec

reas

ing,

mea

ning

that

that

the

perc

enta

ge th

ereo

f re

lativ

e to

gen

eral

Gov

ernm

ent e

xpen

ditu

re h

as b

een

stea

dily

falli

ng.

Net

herl

ands

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

A u

sefu

l tab

le, b

ut th

e C

ourt

shou

ld d

efin

e th

e de

nom

inat

or ‘t

otal

gov

ernm

ent e

xpen

ditu

re’ —

doe

s it i

nclu

de o

r exc

lude

pe

nsio

ns, d

oes i

t fol

low

the

defin

ition

s use

d in

the

EMU

legi

slat

ion?

The

se th

ings

are

not

cur

rent

ly c

lear

. Po

land

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Not

e do

es n

ot c

onta

in a

llega

tions

aga

inst

Pol

and

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

Rom

ania

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

MEF

: Mea

sure

s tak

en in

ord

er to

incr

ease

the

abso

rptio

n of

EU

fund

s rel

ated

to fi

nanc

ial y

ear 2

007-

2013

:

- Ens

urin

g th

e fu

nds n

eces

sary

to th

e m

anag

emen

t aut

horit

ies f

or th

e pa

ymen

ts to

ben

efic

iarie

s, gi

ven

the

gap

betw

een

expe

nditu

re st

atem

ent/c

laim

to th

e EC

and

the

rece

ipts

;

-Ide

ntifi

catio

n an

d pr

omot

ion

of re

trosp

ectiv

e pr

ojec

ts, i

.e. p

roje

cts i

nitia

lly fi

nanc

ed fr

om n

atio

nal s

ourc

es o

r oth

er

sour

ces (

incl

udin

g IF

Is),

whi

ch a

re to

be

settl

ed fr

om E

U fu

nds,

by th

eir a

ppro

val u

nder

Env

ironm

ent S

ecto

ral

Ope

ratio

nal P

rogr

amm

e 20

07-2

013

and

Tran

spor

t Ope

ratio

nal P

rogr

amm

e 20

07-2

013

in o

rder

to fu

lly a

ttrac

t the

Eu

rope

an fu

nds a

vaila

ble.

-Red

ucin

g th

e de

adlin

e fr

om 4

5 w

orki

ng d

ays t

o 20

wor

king

day

s to

notif

y th

e be

nefic

iary

of t

he p

aym

ent f

or th

e ex

pend

iture

aut

horis

ed in

the

refu

nd a

pplic

atio

n or

, in

the

case

of d

irect

pay

men

ts, t

o no

tify

the

bene

ficia

ry o

f aut

horis

ing

the

expe

nditu

re in

the

refu

nd a

pplic

atio

n.

-Est

ablis

hing

a m

echa

nism

for d

irect

settl

emen

t of t

he a

pplic

atio

ns fo

r pay

men

t to

loca

l ben

efic

iarie

s fai

ling

to se

ttle

invo

ices

for g

oods

/ser

vice

s/w

orks

rece

ived

, acc

epte

d fo

r pay

men

t, in

ord

er to

ens

ure

the

finan

cial

flow

to e

nabl

e tim

ely

impl

emen

tatio

n of

pro

ject

s.

19

-Ext

ensi

on o

f the

app

licab

ility

of t

he se

ttlem

ent m

echa

nism

for t

he p

aym

ent c

laim

to a

ll ca

tego

ries o

f ben

efic

iarie

s of

proj

ects

fina

nced

from

Eur

opea

n gr

ants

, inc

ludi

ng p

rivat

e be

nefic

iarie

s, fa

iling

to se

ttle

invo

ices

for

good

s/se

rvic

es/w

orks

rece

ived

and

acc

epte

d fo

r pay

men

t;

-Tra

inin

g m

easu

res a

nd in

crea

sing

the

adm

inis

trativ

e ca

paci

ty o

f ben

efic

iarie

s in

acce

ssin

g Eu

rope

an fu

nds;

- Set

ting

the

perc

enta

ge o

f add

ition

al c

ontra

ctin

g at

ope

ratio

nal p

rogr

amm

e le

vel a

nd n

ot o

nly

at p

riorit

y ax

is le

vel

- Ins

truct

ions

/ord

ers w

ith im

pact

on

the

impl

emen

tatio

n of

pro

ject

s fin

ance

d fr

om E

urop

ean

fund

s.

With

rega

rd to

the

cohe

sion

pol

icy

for t

he p

erio

d 20

14-2

020,

all

oper

atio

nal p

rogr

amm

es a

re c

urre

ntly

ado

pted

by

the

Euro

pean

Com

mis

sion

and

the

man

agin

g au

thor

ities

hav

e st

arte

d th

eir i

mpl

emen

tatio

n (p

repa

ratio

n of

app

lican

t’s

guid

es/la

unch

ing

calls

for p

roje

cts)

.

Slov

akia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Act

ion

to d

raw

on

EU re

sour

ces i

s tak

en in

col

labo

ratio

n w

ith a

Com

mis

sion

wor

king

par

ty e

stab

lishe

d in

201

4. T

he

resu

lts o

f the

act

ion

are

perio

dica

lly m

onito

red

at jo

int m

eetin

gs b

etw

een

Slov

akia

and

the

Com

mis

sion

. Sl

oven

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Sp

ain:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 12

Oct

ober

201

5 EF

F an

d FI

FG: R

epro

gram

min

g of

the

finan

cial

pla

n, a

ppro

ved

by C

omm

issi

on D

ecis

ion

of 1

2 O

ctob

er 2

015.

Sw

eden

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

com

men

t doe

s not

requ

ire S

wed

en to

take

act

ion.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

gra

ph sh

ows t

he le

vel o

f out

stan

ding

EU

com

mitm

ents

as a

per

cent

age

of d

omes

tic g

over

nmen

t spe

ndin

g.

20

CH

APT

ER

3 –

Get

ting

resu

lts fr

om th

e E

U b

udge

t

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

3.27

.M

onito

ring

and

repo

rting

on

Euro

pe 2

020

Lux

embo

urg:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

3.38

.H

ow E

urop

e 20

20 o

bjec

tives

ar

e re

flect

ed in

MS

partn

ersh

ip a

gree

men

ts a

nd

prog

ram

mes

Fran

ce:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: G

erm

any:

actio

n ta

ken:

NO

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Fo

r inf

orm

atio

n on

ly; n

o re

ply

requ

ired.

L

atvi

a:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 1

1 N

ovem

ber 2

014

The

oper

atio

nal p

rogr

amm

e G

row

th a

nd E

mpl

oym

ent w

as d

evel

oped

and

coo

rdin

ated

with

the

Euro

pean

C

omm

issi

on. T

he C

omm

issi

on a

ppro

ved

the

prog

ram

me

on 1

1 N

ovem

ber 2

014.

Po

land

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Pola

nd to

ok st

eps t

o en

sure

the

coor

dina

tion

of a

ll 5

EU F

unds

(ESI

Fun

ds) i

n th

e pr

ogra

mm

ing

phas

e. In

ac

cord

ance

with

the

inte

grat

ed a

ppro

ach

prin

cipl

e, th

e Pa

rtner

ship

Agr

eem

ent s

ets o

ut a

n in

vest

men

t stra

tegy

ba

sed

on th

ree

EU p

olic

ies:

coh

esio

n po

licy,

the

com

mon

agr

icul

tura

l pol

icy

(CA

P) a

nd th

e co

mm

on fi

sher

ies

polic

y (C

FP).

All

prog

ram

mes

fund

ed u

nder

thes

e po

licie

s mus

t be

com

patib

le w

ith th

e Pa

rtner

ship

A

gree

men

t, as

em

phas

ised

in n

atio

nal l

aw (A

rticl

e 14

h of

the

Prin

cipl

es o

f Dev

elop

men

t Pol

icy

Act

of 6

D

ecem

ber 2

006,

as a

men

ded)

. The

Min

iste

r for

Reg

iona

l Dev

elop

men

t coo

rdin

ates

the

prep

arat

ion

of

prog

ram

mes

for t

he p

urpo

se o

f im

plem

entin

g th

e Pa

rtner

ship

Agr

eem

ent (

Arti

cle

14g

of th

e A

ct).

Are

as o

f stra

tegi

c co

ordi

natio

n id

entif

ied

by th

e Pa

rtner

ship

Agr

eem

ent i

nclu

de m

onito

ring

the

cohe

sion

of

actio

ns w

here

by th

e va

rious

pol

icie

s cov

ered

by

the

Agr

eem

ent a

re im

plem

ente

d. T

he M

inis

ter f

or R

egio

nal

Dev

elop

men

t and

the

Min

iste

r for

Rur

al D

evel

opm

ent a

nd F

ishe

ries c

oope

rate

with

in th

e Pa

rtner

ship

A

gree

men

t Com

mitt

ee, w

hich

was

set u

p by

nat

iona

l law

(Arti

cle

14l o

f the

Act

) as t

he P

resi

dent

and

Vic

e-Pr

esid

ent o

f the

Com

mitt

ee re

spec

tivel

y.

21

How

ever

, Pol

and

sees

the

need

for f

urth

er h

arm

onis

atio

n of

the

rule

s gov

erni

ng th

e im

plem

enta

tion

of

cohe

sion

pol

icy,

CA

P an

d C

FP fu

nds,

beca

use

the

spec

ific

natu

re o

f mea

sure

s und

er in

divi

dual

fund

s mak

es it

m

uch

mor

e di

ffic

ult t

o ta

ke c

ompl

emen

tary

and

inte

grat

ed a

ctio

ns.

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

3.46

.D

efin

ed o

pera

tiona

l ob

ject

ives

in p

artn

ersh

ip

agre

emen

ts

Ger

man

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

resp

onsi

ble

auth

oriti

es p

oint

out

that

the

requ

este

d in

form

atio

n is

alre

ady

held

by

the

Com

mis

sion

, as i

s ev

iden

t fro

m th

e re

spon

se to

poi

nt 3

.60.

3.48

.D

efin

ed o

pera

tiona

l ob

ject

ives

in p

artn

ersh

ip

agre

emen

ts

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 11

Nov

embe

r 201

4 W

e w

ould

poi

nt o

ut th

at a

chie

ving

the

prin

cipl

e ta

rget

s is d

epen

dent

on

a nu

mbe

r of f

acto

rs w

hich

are

influ

ence

d bo

th b

y C

ohes

ion

Polic

y fin

anci

ng a

nd n

atio

nal p

olic

ies.

Bea

ring

in m

ind

the

resu

lts-o

rient

ated

app

roac

h an

d th

e de

scrip

tion

of

the

notio

n of

inte

rven

tion

logi

c w

hich

the

Euro

pean

Com

mis

sion

has

inco

rpor

ated

in it

s mon

itorin

g an

d ev

alua

tion

guid

elin

es, t

he sp

ecifi

c su

ppor

t tar

gets

in th

e op

erat

iona

l pro

gram

me

are

form

ulat

ed so

as t

o pr

ovid

e a

mor

e ac

cura

te

repr

esen

tatio

n of

the

subs

tanc

e of

the

inte

rven

tion

and

the

desi

red

chan

ges.

For e

xam

ple,

one

of L

atvi

a's n

atio

nal

obje

ctiv

es a

s set

out

in th

e pa

rtner

ship

agr

eem

ent i

s inv

estm

ent i

n R

&D

at a

rate

of 1

.5 %

GD

P. A

ttain

ing

this

obj

ectiv

e in

volv

es a

num

ber o

f ele

men

ts w

hich

are

def

ined

at o

pera

tiona

l pro

gram

me

leve

l and

als

o in

the

partn

ersh

ip a

gree

men

t as

spec

ific

issu

es re

quiri

ng a

ctio

n, a

nd a

cer

tain

am

ount

of f

inan

cing

is e

arm

arke

d to

add

ress

thes

e is

sues

(e.g

. for

at

tract

ing

hum

an re

sour

ces t

o sc

ienc

e, p

rivat

e se

ctor

invo

lvem

ent i

n R

&D

, etc

.). T

here

fore

, in

certa

in c

ases

a si

tuat

ion

may

aris

e w

here

indi

vidu

al sp

ecifi

c su

ppor

t obj

ectiv

es a

ppea

r to

have

an

indu

ced

impa

ct o

n th

e ov

eral

l nat

iona

l ob

ject

ive,

but

they

are

in fa

ct a

key

com

pone

nt o

f the

bro

ader

pol

icy

fram

ewor

k.

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

natio

nal a

utho

ritie

s do

not a

gree

with

the

obse

rvat

ion.

Po

rtuga

l 202

0 pr

ogra

mm

ing

refle

cts a

step

-by-

step

def

initi

on fr

om th

e m

acro

-obj

ectiv

es se

t out

in th

e N

atio

nal

Ref

orm

Pro

gram

me

for P

ortu

gal w

hich

def

ines

the

coun

try's

targ

ets s

o as

to m

eet t

he a

ims o

f the

EU

202

0 st

rate

gy.

22

As a

n ex

ampl

e, it

shou

ld b

e no

ted

that

the

rela

tion

betw

een

resu

lt in

dica

tors

for t

he H

uman

Cap

ital O

pera

tiona

l Pr

ogra

mm

e (H

CO

P) a

nd th

e in

dica

tor ‘

educ

atio

n an

d tra

inin

g dr

opou

t rat

e’ in

the

Euro

pa 2

020

stra

tegy

is a

s fo

llow

s: T

he e

duca

tion

and

train

ing

drop

out r

ate

indi

cato

r, as

can

be

seen

in E

E202

0, is

a E

uros

tat i

ndic

ator

. In

form

atio

n fo

r cal

cula

ting

the

indi

cato

r is c

olle

cted

by

natio

nal s

tatis

tical

bod

ies t

hrou

gh th

e Eu

rope

an L

abou

r Fo

rce

Surv

ey. T

he in

dica

tor r

efer

s to

pers

ons a

ged

betw

een

18 a

nd 2

4 w

ho, n

ot h

avin

g co

mpl

eted

seco

ndar

y ed

ucat

ion

(ISC

ED 3

), w

ere

not a

ttend

ing

a sc

hool

or t

rain

ing

cour

se in

the

four

wee

ks p

rior t

o th

e su

rvey

. Thi

s in

dica

tor a

llow

s the

eff

ectiv

enes

s of t

he e

duca

tiona

l sys

tem

to b

e m

easu

red

with

rega

rd to

the

med

ium

-term

pr

oduc

tion

of q

ualif

icat

ions

. How

ever

, it c

anno

t be

used

as a

n in

dica

tor f

or im

med

iate

resu

lts fo

r edu

catio

nal

polic

y m

easu

res f

or th

e ed

ucat

ion

and

train

ing

of y

oung

peo

ple

with

in th

e sc

ope

of P

ortu

gal 2

020.

Thi

s is

beca

use

the

targ

et p

ublic

for t

hese

mea

sure

s and

for t

he E

uros

tat i

ndic

ator

do

not c

oinc

ide

time

wis

e. T

he

educ

atio

n an

d tra

inin

g m

easu

res f

or y

oung

peo

ple

in P

ortu

gal 2

020,

mor

e sp

ecifi

cally

the

alte

rnat

ives

pro

vide

d by

the

educ

atio

n sy

stem

(voc

atio

nal a

nd p

rofe

ssio

nal t

rain

ing)

are

aim

ed a

t you

ng p

eopl

e up

to 1

8 ye

ars o

ld

(min

imum

age

at w

hich

you

ng p

eopl

e m

ay le

ave

the

educ

atio

nal s

yste

m).

How

ever

, the

targ

et p

ublic

for t

he

Euro

stat

indi

cato

r are

you

ng p

eopl

e be

twee

n 18

and

24

year

s of a

ge. T

his m

eans

that

the

indi

cato

r cal

cula

ted

for 2

014

refle

cts t

he re

sults

of t

he sy

stem

bet

wee

n 20

08 a

nd 2

014

(per

iod

whi

ch c

over

s tha

t age

gro

up in

the

educ

atio

nal s

yste

m).

Ther

efor

e, o

nly

in 2

020

will

the

indi

cato

r ful

ly re

flect

the

inve

stm

ent e

ffor

t in

the

2014

-20

20 p

rogr

amm

ing

perio

d.

3.

59.

Wea

k fo

cus o

n re

sults

in

parti

cula

r in

the

partn

ersh

ip

agre

emen

ts

Fran

ce:a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: Le

cho

ix a

été

fait

en F

ranc

e de

ne

pas i

dent

ifier

d’in

dica

teur

s de

résu

ltat d

ans l

’acc

ord

de P

arte

naria

t mai

s de

défin

ir de

s ten

danc

es d

es ré

sulta

ts e

scom

ptés

con

form

émen

t à l’

artic

le 1

5 du

règl

emen

t cad

re. C

e ch

oix

a ét

é ef

fect

ué e

n ac

cord

ave

c le

s ser

vice

s de

la C

omm

issi

on e

urop

éenn

e. D

ès lo

rs le

s cha

ngem

ents

esc

ompt

és so

nt le

fr

uit d

’une

nég

ocia

tion

pour

cha

que

prog

ram

me

entre

la C

omm

issi

on e

t cha

que

auto

rité

de g

estio

n qu

i a é

tabl

i se

s rés

ulta

ts e

scom

ptés

par

act

ion

ains

i que

les v

aleu

rs in

term

édia

ires d

ans s

on p

rogr

amm

e qu

i a é

té n

égoc

aprè

s l’a

dopt

ion

de l’

acco

rd d

e pa

rtena

riat.

Ger

man

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

resp

onsi

ble

auth

oriti

es p

oint

out

that

the

requ

este

d in

form

atio

n is

alre

ady

held

by

the

Com

mis

sion

, as i

s ev

iden

t fro

m th

e re

spon

se to

poi

nt 3

.60.

23

Lat

via:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 1

1 N

ovem

ber 2

014

The

Gui

delin

es o

n th

e C

onte

nt o

f the

Par

tner

ship

Agr

eem

ent

(http

://ec

.eur

opa.

eu/re

gion

al_p

olic

y/so

urce

s/do

cgen

er/in

form

at/2

014/

pa_g

uide

lines

.pdf

) did

not

stat

e th

at o

nly

quan

tifie

d sp

ecifi

c ta

rget

s sho

uld

be in

dica

ted.

W

hen

the

Partn

ersh

ip A

gree

men

t was

bei

ng d

rafte

d, d

etai

ls h

ad n

ot y

et b

een

wor

ked

out o

f how

fina

ncin

g w

ould

be

dist

ribut

ed a

mon

g sp

ecifi

c su

ppor

t obj

ectiv

es, a

s lai

d do

wn

in th

e op

erat

iona

l pro

gram

me.

It w

as

ther

efor

e no

t pos

sibl

e in

all

case

s to

spec

ify q

uant

ified

targ

ets i

n th

e Pa

rtner

ship

agr

eem

ent.

We

wou

ld p

oint

ou

t tha

t in

the

oper

atio

nal p

rogr

amm

es, c

oncr

ete

targ

et in

dica

tors

with

pla

nned

targ

et v

alue

s hav

e be

en

indi

cate

d fo

r all

spec

ific

supp

ort o

bjec

tives

, and

in m

any

case

s Lat

via

has i

ncre

ased

thes

e va

lues

to ta

ke

acco

unt o

f the

pro

posa

ls a

nd o

bjec

tions

set o

ut in

the

ex a

nte

eval

uatio

n an

d by

the

Euro

pean

Com

mis

sion

. For

ex

ampl

e, d

urin

g th

e co

ordi

natio

n pr

oces

s the

vol

ume

of fi

nanc

ing

for t

hem

atic

targ

et 1

was

sign

ifica

ntly

in

crea

sed.

W

ith re

gard

to ta

rget

s for

whi

ch q

uant

ified

am

ount

s are

giv

en in

the

Partn

ersh

ip A

gree

men

t, th

ese

have

bee

n de

term

ined

in a

ccor

danc

e w

ith E

urop

e 20

20 st

rate

gy ta

rget

s whi

ch w

ere

prev

ious

ly a

gree

d w

ith th

e co

mpe

tent

EU

inst

itutio

ns. I

t is u

ncle

ar w

hat c

riter

ia th

e C

ourt

of A

udito

rs h

as u

sed

in fi

ndin

g th

at q

uant

ified

targ

ets a

re

wea

k.

3.60

.W

eak

focu

s on

resu

lts in

pa

rticu

lar i

n th

e pa

rtner

ship

ag

reem

ents

Ger

man

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

resp

onsi

ble

auth

oriti

es p

oint

out

that

the

requ

este

d in

form

atio

n is

alre

ady

held

by

the

Com

mis

sion

, as i

s ev

iden

t fro

m th

e re

spon

se to

poi

nt 3

.60.

Box

3.6

Ex

ampl

es o

f ind

icat

ors,

mile

ston

es a

nd ta

rget

s use

d in

th

e pe

rfor

man

ce fr

amew

ork

Fran

ce:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: C

es in

dica

teur

s fig

uren

t dan

s la

rubr

ique

cad

re d

e pe

rfor

man

ce d

u pr

ogra

mm

e op

érat

ionn

el F

SE A

LSA

CE.

Pou

r l’i

ndic

ateu

r fin

anci

er c

elui

men

tionn

é pa

r la

Cou

r cor

resp

ond

à l’a

xe 3

du

PO e

t l’in

dica

teur

de

réal

isat

ion

à l’a

xe 1

du

mêm

e PO

. En

effe

t, le

s rés

ulta

ts e

scom

ptés

sont

insc

rits d

ans l

es p

rogr

amm

es q

ui c

orre

spon

dent

à u

n ca

dre

terr

itoria

l qui

es

t diff

éren

t sel

on le

s rég

ions

fran

çais

es.

Ger

man

y:ac

tion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

For i

nfor

mat

ion

only

; Sax

ony-

Anh

alt i

s mer

ely

cite

d as

an

exam

ple

and

is n

ot b

eing

crit

icis

ed; n

o fu

rther

repl

y

24

requ

ired.

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 11

Nov

embe

r 201

4

Whe

n co

mpi

ling

the

oper

atio

nal p

rogr

amm

e pe

rfor

man

ce fr

amew

ork,

Lat

via

adhe

red

stric

tly to

the

Com

mis

sion

's gu

idan

ce o

n dr

aftin

g th

e pe

rfor

man

ce fr

amew

ork:

ht

tp://

ec.e

urop

a.eu

/regi

onal

_pol

icy/

sour

ces/

docg

ener

/eva

luat

ion/

pdf/g

uida

nce_

perf

orm

ance

_fra

mew

ork.

pdf.

We

wou

ld p

oint

out

that

the

unit

of m

easu

rem

ent f

or fi

nanc

ial i

ndic

ator

s (or

inve

stm

ent i

ndic

ator

s as t

hey

are

refe

rred

to in

the

com

men

tary

) is c

ertif

ied

expe

nditu

re in

eur

os, a

nd it

is th

eref

ore

logi

cal t

hat t

hese

figu

res a

re

esse

ntia

lly e

qual

. It i

s als

o lo

gica

l tha

t the

val

ue o

f fin

anci

al in

dica

tor t

arge

ts fo

r 202

3 co

inci

des 1

00 %

with

th

e am

ount

s gra

nted

to a

giv

en fu

nd u

nder

a sp

ecifi

c pr

iorit

y ax

is, s

ince

Lat

via,

in c

omm

on w

ith o

ther

Mem

ber

Stat

es, p

lans

to m

ake

full

use

of th

e C

ohes

ion

Polic

y fin

anci

ng it

is g

rant

ed.

25

CH

APT

ER

4 –

Rev

enue

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

4.4.

Aud

it sc

ope

and

appr

oach

for

the

TOR

acc

ount

ing

syst

ems

Aus

tria

:act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

No

obse

rvat

ions

Uni

ted

Kin

gdom

: act

ion

take

n: n

/a ;

actio

n co

mpl

eted

: n/a

; C

ompl

etio

n da

te: n

/a

n/a

– th

is se

ctio

n de

scrib

es th

e EC

A a

udit

scop

e an

d ap

proa

ch.

4.8.

Res

erva

tions

add

rese

d B

ulga

ria:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 22

Sept

embe

r 201

5 N

atio

nal S

tatis

tical

Inst

itute

(NSI

): O

n th

e ba

sis o

f Eur

osta

t met

hodo

logy

and

ver

ifica

tion

mis

sion

s and

thei

r fin

ding

s with

follo

w-u

p re

com

men

datio

ns a

nd re

serv

atio

ns o

n th

e da

ta to

be

deve

lope

d an

d im

plem

ente

d by

Se

ptem

ber 2

015,

the

NSI

dev

elop

ed a

nd im

plem

ente

d th

e of

ficia

l res

erva

tions

in th

e da

ta. T

he re

serv

atio

ns a

nd

reco

mm

enda

tions

from

the

findi

ngs w

hich

wer

e im

plem

ente

d re

fer t

o: A

dditi

onal

adj

ustm

ents

for i

llega

l ac

tiviti

es: d

rugs

and

pro

stitu

tion;

FIS

IM; P

IM m

etho

d; R

evie

w o

f the

stra

tific

atio

n m

etho

d fo

r cal

cula

ting

impu

ted

rent

in th

e pa

rt co

ncer

ning

the

calc

ulat

ion

of in

term

edia

te c

onsu

mpt

ion

for r

epai

rs b

y ow

ners

; Pr

oper

ty in

com

e to

and

from

the

Res

t of t

he W

orld

; Cov

erag

e of

orig

inal

s, lit

erat

ure

and

ente

rtain

men

t wor

ks,

mus

ic w

orks

and

orig

inal

s; V

AT

frau

d; Im

plem

enta

tion

of th

e va

luat

ion

met

hodo

logy

for o

wn-

prod

uced

so

ftwar

e; Im

plem

enta

tion

of th

e va

luat

ion

met

hodo

logy

for o

wn-

prod

uced

softw

are

for g

over

nmen

t, N

PIs a

nd

finan

cial

und

erta

king

s; In

-kin

d re

venu

e in

urb

an tr

ansp

ort,

Bul

garia

n N

atio

nal R

ailw

ays (

BD

Z).

Und

er A

rticl

e 2(

2) o

f Cou

ncil

Reg

ulat

ion

(EC

, Eur

atom

) No

1287

/200

3 of

15

July

200

3 on

the

harm

onis

atio

n of

gro

ss n

atio

nal i

ncom

e at

mar

ket p

rices

, by

22 S

epte

mbe

r eac

h ye

ar, M

embe

r Sta

tes m

ust p

rovi

de th

e C

omm

issi

on (E

uros

tat),

in th

e co

ntex

t of n

atio

nal a

ccou

ntin

g pr

oced

ures

, with

figu

res f

or G

NI a

nd it

s co

mpo

nent

s, an

d a

repo

rt on

the

qual

ity o

f GN

I dat

a. T

he q

uest

ionn

aire

sent

in S

epte

mbe

r 201

5 co

ntai

ns

info

rmat

ion

conc

erni

ng G

NI f

igur

es fo

r the

per

iod

2002

–201

4. In

add

ition

to th

e m

ost r

ecen

t dat

a av

aila

ble,

26

the

ques

tionn

aire

con

tain

s inf

orm

atio

n ab

out d

ata

subm

itted

by

Mem

ber S

tate

s in

the

prev

ious

yea

r. Th

e G

NI

ques

tionn

aire

is a

ccom

pani

ed b

y th

e co

rres

pond

ing

GN

I qua

lity

repo

rt, a

s an

inte

gral

par

t of i

t, w

here

Mem

ber

Stat

es a

re re

quire

d to

pro

vide

info

rmat

ion

abou

t any

cha

nges

in th

e so

urce

s and

met

hods

use

d to

com

pile

na

tiona

l acc

ount

s dat

a, c

hang

es in

est

imat

e re

visi

on p

olic

ies a

nd a

n ex

plan

atio

n. In

the

Que

stio

nnai

re a

nd G

NI

Qua

lity

Rep

ort s

ent i

n Se

ptem

ber 2

015,

the

NSI

subm

itted

info

rmat

ion

abou

t all

rese

rvat

ions

and

re

com

men

datio

ns is

sued

. A

t the

last

GN

I Com

mitt

ee m

eetin

g he

ld 2

1-22

Oct

ober

201

5, a

revi

ew o

f the

rese

rvat

ions

issu

ed fo

r inc

lusi

on

in th

e G

DP/

GN

I fig

ures

was

car

ried

out f

or e

ach

Mem

ber S

tate

. A ti

met

able

was

als

o pr

esen

ted

for c

arry

ing

out a

dditi

onal

ver

ifica

tion

mis

sion

s in

the

coun

tries

iden

tifie

d as

bei

ng m

ost a

t ris

k of

faili

ng to

mee

t the

ir co

mm

itmen

ts –

Lat

via,

Pol

and

and

Gre

ece.

Sup

plem

enta

ry q

uest

ions

wer

e se

nt to

Bul

garia

abo

ut th

e re

serv

atio

n fo

r the

PIM

met

hod.

At p

rese

nt, t

he N

SI is

wai

ting

for a

n of

ficia

l rep

ly fr

om E

uros

tat r

egar

ding

the

incl

usio

n of

all

the

rese

rvat

ions

mad

e in

the

figur

es.

Min

istry

of L

abou

r and

Soc

ial P

olic

y (M

LSP)

: Not

app

licab

le to

the

Ope

ratio

nal P

rogr

amm

e ‘H

uman

R

esou

rce

Dev

elop

men

t’ 20

07-2

013.

No

erro

rs w

ere

iden

tifie

d du

ring

the

audi

t. R

oman

ia: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: N

SI- T

he N

SI h

as se

nt th

e ca

lcul

atio

ns to

the

Com

mis

sion

on

GN

I res

erva

tions

for t

he y

ears

200

7 to

201

3.

Uni

ted

Kin

gdom

: act

ion

take

n: n

/a ;

actio

n co

mpl

eted

: n/a

; C

ompl

etio

n da

te: n

/a

4.11

.R

evis

ions

of m

etho

ds a

nd

sour

ces d

urin

g 20

14 h

ad la

rge

impa

cts o

n G

NI f

igur

es

Cyp

rus:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 1 S

epte

mbe

r 201

5 C

ypru

s pai

d th

e in

crea

se o

f its

con

tribu

tions

due

to th

e ab

ove

in th

ree

inst

alm

ents

. The

last

inst

alm

ent w

as p

aid

in S

epte

mbe

r 201

5.

Net

herl

ands

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

It is

not

cle

ar to

the

Net

herla

nds w

hy w

e ar

e m

entio

ned

here

and

Mal

ta a

nd th

e U

K a

re n

ot.

4.13

.R

evis

ions

of m

etho

ds a

nd

sour

ces d

urin

g 20

14 h

ad la

rge

Fran

ce:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: Mai

201

5 Le

12

nove

mbr

e 20

14, c

ompt

e te

nu d

es c

orre

ctio

ns T

VA

et R

NB

au

titre

des

exe

rcic

es 1

995-

2013

par

ticul

ière

men

t él

evée

s due

s par

cer

tain

s Éta

ts m

embr

es, l

a C

omm

issi

on a

pré

sent

é un

e pr

opos

ition

de

mod

ifica

tion

du rè

glem

ent

27

impa

cts o

n G

NI f

igur

es

n°11

50/2

000

[CO

M(2

014)

704

] per

met

tant

aux

Éta

ts m

embr

es, s

ous c

erta

ines

con

ditio

ns, d

e di

ffér

er la

mis

e à

disp

ositi

on d

es m

onta

nts d

es so

ldes

TV

A e

t RN

B ju

squ’

au p

rem

ier j

our o

uvra

ble

du m

ois d

e se

ptem

bre

2015

. A

fin q

ue so

it pr

ise

en c

ompt

e la

pos

sibl

e ad

optio

n de

cet

te p

ropo

sitio

n, la

Com

mis

sion

invi

tait

les É

tats

mem

bres

so

uhai

tant

diff

érer

leur

pai

emen

ts à

com

mun

ique

r, av

ant l

e pr

emie

r jou

r ouv

rabl

e de

déc

embr

e 20

14, à

la C

omm

issi

on u

n éc

héan

cier

con

traig

nant

en

vue

de la

mis

e à

disp

ositi

on d

es m

onta

nts e

n qu

estio

n.

Par c

ourr

ier e

n da

te d

u 27

nov

embr

e 20

14, l

a Fr

ance

a n

otifi

é sa

déc

isio

n de

diff

érer

la m

ise

à di

spos

ition

des

mon

tant

s de

s sol

des T

VA

et R

NB

au

titre

des

exe

rcic

es 1

995-

2013

selo

n l’é

chéa

ncie

r sui

vant

qui

a é

té m

is e

n œ

uvre

: - p

rem

ier v

erse

men

t pou

r la

moi

tié d

e la

som

me

due

le lu

ndi 2

3 fé

vrie

r 201

5 ;

- sec

ond

vers

emen

t pou

r la

moi

tié d

e la

som

me

due

le m

ardi

26

mai

201

5.

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Mal

ta:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 01/

09/1

5 Sl

oven

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 02.

02.

201

5 M

inis

try o

f Fin

ance

, Bud

get D

irect

orat

e: S

love

nia

paid

the

amou

nt d

ue u

nder

the

adju

stm

ent o

f the

Mem

ber S

tate

s’

natio

nal c

ontri

butio

ns o

n th

e ba

sis o

f VA

T re

sour

ces a

nd a

dditi

onal

reso

urce

s, am

ount

ing

to E

UR

8,0

63,9

33.3

2, o

n th

e fir

st w

orki

ng d

ay o

f Feb

ruar

y 20

15, i

.e. 0

2.02

.201

5.

Uni

ted

Kin

gdom

: act

ion

take

n: n

/a ;

actio

n co

mpl

eted

: n/a

; C

ompl

etio

n da

te: n

/a

4.17

.G

ener

al re

serv

atio

ns

Gre

ece:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: In

coop

erat

ion

with

Eur

osta

t. EL

STA

T se

nt d

ata

for t

he y

ears

200

8 an

d 20

09 to

Eur

osta

t in

Aug

ust 2

014.

It

shou

ld b

e no

ted

that

the

data

for 2

008

and

2009

and

the

supp

ortin

g do

cum

enta

tion

sent

in A

ugus

t 201

4 ar

e ba

sed

on

rese

arch

resu

lts a

nd n

ot o

n pr

elim

inar

y es

timat

es, s

ince

the

final

rese

arch

evi

denc

e w

as a

vaila

ble

and

the

requ

ired

qual

ity

chec

ks h

ad b

een

perf

orm

ed.

In N

ovem

ber 2

014,

a E

uros

tat m

issi

on v

isite

d EL

STA

T an

d th

orou

ghly

che

cked

the

evid

ence

for

2008

and

200

9 th

orou

ghly

, as w

ell a

s the

doc

umen

tatio

n fo

rwar

ded.

It is

exp

ecte

d to

pro

vide

a te

chni

cal o

pini

on o

n th

e lif

ting

of a

gen

eral

rese

rvat

ion

fo

r the

yea

rs 2

008

and

2009

. In

add

ition

, the

dat

a an

d do

cum

enta

tion

for t

he y

ears

200

2-20

09 w

ere

sent

in S

epte

mbe

r 201

5, a

ccor

ding

to th

e

28

requ

irem

ents

of t

he p

rogr

amm

e

for t

he tr

ansm

issi

on o

f the

GN

I Que

stio

nnai

re 2

015.

T

he a

sses

smen

t of E

uros

tat i

s ong

oing

, fol

low

ing

the

visi

t of D

ecem

ber 2

015.

EL

STA

T is

con

tinui

ng it

s wor

k, in

acc

orda

nce

with

Eur

osta

t's in

stru

ctio

ns, i

n or

der t

o ad

dres

s the

con

cern

s on

the

GN

I/GD

P.

4.19

.Pr

oble

ms r

elat

ing

to p

ost-

clea

ranc

e au

dits

A

ustr

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: A

n ap

prop

riate

repl

y to

the

Com

mis

sion

is b

eing

pre

pare

d.

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

Span

ish

syst

em is

bas

ed o

n th

e pr

esen

ce o

f res

earc

h un

its a

t cen

tral l

evel

. The

se id

entif

y un

derta

king

s tha

t m

ay b

e ve

rifie

d by

the

regi

onal

serv

ices

, whi

ch b

ear u

ltim

ate

resp

onsi

bilit

y fo

r the

sele

ctio

n an

d m

ay in

turn

se

lect

oth

er ta

xpay

ers.

It

is ju

stifi

able

to g

ive

the

regi

onal

serv

ices

the

final

say

on th

e m

atte

r bec

ause

they

are

resp

onsi

ble

for

allo

catin

g th

e w

orkl

oad

of th

e O

ffic

e as

a w

hole

bet

wee

n its

diff

eren

t uni

ts a

nd se

rvic

es. T

hey

also

hav

e a

mor

e di

rect

and

imm

edia

te k

now

ledg

e of

the

subj

ectiv

e an

d ob

ject

ive

risk

prof

ile a

ffec

ting

oper

ator

s in

thei

r ar

ea. T

his n

ever

impl

ies t

hat h

ighe

r ris

k en

terp

rises

mig

ht b

e le

ft un

chec

ked.

Bec

ause

they

are

a c

entra

l se

rvic

e, th

e C

usto

ms a

nd E

xcis

e D

epar

tmen

t inv

estig

atio

n un

its a

re th

e of

ficia

l int

erlo

cuto

r with

EU

bod

ies

and

have

the

pow

er to

car

ry o

ut a

ctio

ns to

obt

ain

info

rmat

ion

by se

rvin

g fo

rmal

not

ices

on

any

pers

on o

r ent

ity

thro

ugho

ut S

pain

. Bec

ause

they

als

o m

onito

r con

trol a

ctiv

ities

in th

e va

rious

regi

onal

dep

artm

ents

, the

y ar

e th

e na

tiona

l aut

horit

y in

pos

sess

ion

of m

ost i

nfor

mat

ion

and

they

initi

ally

sele

ct th

e hi

ghes

t-ris

k un

derta

king

s.

Hav

ing

esta

blis

hed

this

prin

cipl

e, th

e pr

oble

m th

at th

e EC

A se

ems t

o be

rais

ing

over

the

fact

that

the

syst

em

may

mea

n th

at h

igh-

risk

unde

rtaki

ngs a

re le

ft un

chec

ked

due

to la

ck o

f res

ourc

es in

the

Off

ice

to w

hich

they

ar

e at

tach

ed w

here

as o

ther

low

er-r

isk

unde

rtaki

ngs a

re c

heck

ed b

ecau

se th

e co

mpe

tent

Off

ice

has s

uffic

ient

re

sour

ces t

o do

this

, wou

ld o

nly

aris

e if

the

sele

ctio

n of

und

erta

king

s ulti

mat

ely

carr

ied

out b

y th

e ce

ntra

l se

rvic

es w

ere

to b

e le

ft un

chec

ked

due

to la

ck o

f res

ourc

es in

the

regi

onal

serv

ices

resp

onsi

ble

for c

arry

ing

out

the

chec

ks. H

owev

er, t

he a

ctua

l situ

atio

n re

veal

s tha

t the

vas

t maj

ority

of c

ases

not

ified

by

the

cent

ral t

o th

e re

gion

al se

rvic

es a

re u

ltim

atel

y su

bjec

t to

verif

icat

ion.

Thi

s mea

ns th

at a

lthou

gh th

e ris

k id

entif

ied

by th

e EC

A

of h

ighe

r-ris

k un

derta

king

s bei

ng le

ft un

chec

ked

cann

ot b

e ru

led

out c

ompl

etel

y, p

ract

ical

exp

erie

nce

show

s th

at th

is ri

sk is

not

pre

sent

, or a

t lea

st d

oes n

ot h

ave

a si

gnifi

cant

impa

ct o

n th

e ef

ficie

ncy

of th

e co

ntro

l sy

stem

.

29

By

way

of i

llust

ratio

n, in

201

3, th

e ye

ar o

n w

hich

the

ECA

has

focu

sed

its a

udit

wor

k, a

ll th

e un

derta

king

s tha

t w

ere

the

subj

ect o

f not

ifica

tions

from

cen

tral s

ervi

ces t

o re

gion

al se

rvic

es a

ffec

ting

the

Euro

pean

Uni

on’s

fin

anci

al in

tere

sts w

ere

ultim

atel

y ch

ecke

d.

4.22

.Pr

oble

ms r

elat

ing

to th

e m

anag

emen

t of t

he B

ac

coun

ts

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

debt

s in

the

B a

ccou

nt th

at h

ave

not b

een

chal

leng

ed a

re c

onsi

dere

d fo

r the

pur

pose

of c

alcu

latin

g th

e pe

rcen

tage

refe

rred

to. W

e un

ders

tand

that

this

crit

erio

n is

not

ent

irely

acc

urat

e, b

ut g

iven

the

spec

ial

circ

umst

ance

s aris

ing

in th

e m

anag

emen

t of t

he B

acc

ount

s, se

ekin

g to

use

stat

istic

al d

ata

from

ear

lier y

ears

w

ould

als

o gi

ve ri

se to

a fi

gure

that

doe

s not

cor

resp

ond

to th

e ac

tual

situ

atio

n. W

e co

mpl

etel

y ru

le o

ut

exam

inat

ion

on a

cas

e-by

-cas

e ba

sis d

ue to

the

high

wor

kloa

d th

is w

ould

ent

ail f

or th

e Sp

anis

h ad

min

istra

tion.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

The

UK

acc

ept t

hat t

he c

urre

nt p

roce

dure

for p

repa

ring

the

B A

ccou

nt st

atem

ents

is c

ompl

ex a

nd it

s man

ual

natu

re h

as le

d to

occ

asio

nal m

ista

kes.

How

ever

, les

sons

hav

e be

en le

arnt

and

the

met

hodo

logy

and

gui

danc

e im

prov

ed a

nd st

ream

lined

as a

resu

lt.

The

CH

IEF

syst

em is

to b

e re

plac

ed a

nd th

e st

rate

gy is

to in

tegr

ate

post

cle

aran

ce fu

nctio

nalit

y in

to th

e ne

w

serv

ice,

pro

vidi

ng a

n en

d-to

-end

aud

it tra

il w

ithin

the

one

syst

em. T

he n

ew se

rvic

e is

exp

ecte

d to

be

deliv

ered

in

201

7. O

nce

the

full

syst

em is

ope

ratio

nal t

here

will

no

long

er b

e a

requ

irem

ent f

or th

e B

Acc

ount

to in

clud

e so

man

y co

mpl

ex a

nd m

anua

l pro

cess

es.

4.23

.O

pen

poin

ts m

anag

emen

t G

erm

any:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: Sch

edul

ed fo

r 201

6 G

reec

e:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Port

ugal

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

The

natio

nal a

utho

ritie

s are

mak

ing

ever

y ef

fort

to c

orre

ct a

ll th

e er

rors

det

ecte

d in

the

audi

ts.

Tab

le 4

.1.

VA

T/G

NI b

alan

ces f

or 2

014

Aus

tria

:act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Bel

gium

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Il se

mbl

e qu

e le

pou

rcen

tage

figu

rant

dan

s le

calc

ul e

st su

scep

tible

d'êt

re a

ugm

enté

.

30

Au

vu d

es d

erni

ers c

hiff

res d

u bu

dget

UE

pour

201

5 (d

erni

ers s

olde

s reç

us) o

n pe

ut c

alcu

ler c

e qu

i sui

t:

TVA

P

NB

P

NB

+ T

VA

Bud

get E

U 2

015

511.

842.

600

2.67

7.11

4.26

3 3.

188.

956.

863(

b)

sold

es

72.8

70.4

2214

7.71

5.88

6 22

0.58

6.30

8(a)

6,92

%(c

)=a/

b C

once

rnan

t la

TVA

, nou

s dev

ons e

ffec

tuer

des

pai

emen

ts su

pplé

men

taire

s car

not

re c

ompe

nsat

ion

pour

les

voitu

res a

été

aju

stée

à la

bai

sse

(c'ét

ait u

ne c

ompe

nsat

ion

néga

tive

pour

l'U

E). L

a ré

serv

e su

r cet

te

com

pens

atio

n a

été

annu

lée

(qui

d pr

o qu

o). A

pro

pos d

u PI

B, n

ous n

e po

uvon

s nou

s pro

nonc

er (l

e PI

B a

été

aj

usté

à la

hau

sse

à pl

usie

urs r

epris

es).

La B

elgi

que

n'a

pas d

eman

dé d

e re

port

l'ann

ée d

erni

ère.

Po

ur le

tabl

eau

4.1,

nou

s ne

pouv

ons q

ue c

onfir

mer

les m

onta

nts q

ui y

figu

rent

. En

ce

qui c

once

rne

les s

olde

s TV

A/R

NB

199

5 à

2013

, le

mon

tant

ver

sé à

la C

OM

s'él

ève

préc

isém

ent à

11

8.87

7.01

5,38

€.

Le m

onta

nt in

scrit

au

budg

et p

our l

e R

NB

éta

it de

3.1

36.9

80.0

00,0

0 €.

La

Cou

r se

penc

he p

rinci

pale

men

t sur

les c

hiff

res i

ndiq

ués p

ar la

Com

mis

sion

dan

s son

pro

pre

budg

et p

ar

rapp

ort a

ux so

ldes

com

mun

iqué

s fin

Nov

embr

e.

Pour

201

4, la

CO

M se

mbl

e av

oir u

tilis

é le

ur 7

e bu

dget

rect

ifica

tif d

e ce

tte a

nnée

. C

es c

hiff

res n

e se

mbl

ent p

as te

nir c

ompt

e du

raba

is b

ritan

niqu

e.

Pour

ce

qui e

st d

es d

ouan

es b

elge

s YE

AR

R

EPO

RT

NO

CO

UN

TR

YO

PEN

POIN

TSPo

ints

clos

edbe

twee

n 2/

10/1

4an

d20

/3/1

5

Mea

sure

s ta

ken

2009

09

.0.2

B

E

3.1

20

10

10.0

.2

BE

3.

4

31

2011

11

.0.1

B

E

3.4

G

loba

lisat

ion

sub-

wor

king

gr

oup

esta

blis

hed

as p

art o

f the

N

atio

nal F

orum

and

ne

gotia

tions

ong

oing

with

bu

sine

ss re

. bes

t sol

utio

n.

Dis

cuss

ions

hav

e al

so b

egun

w

ith IB

M.

2011

11

.0.2

B

E

3.3(

3)

2013

13

.0.1

B

E

Part

1:

3.1

3.2

Pa

rt 2

:3.

1

3.

2

P

art 1

: poi

nt 3

.1.:

Del

oitte

ca

rried

out

its

audi

t in

2015

. Th

e au

dit's

find

ings

will

be

trans

ferre

d to

the

Eur

opea

n C

omm

issi

on in

ear

ly 2

016.

P

art 1

: poi

nt 3

.2.:

unde

r ex

amin

atio

n P

art 2

: The

six

-mon

thly

pr

ogre

ss re

port

on th

e P

LDA

ac

tion

plan

will

be fo

rwar

ded

this

mon

th.

2013

13

.0.2

B

E

3.1

3.2

3.3

3.

1. a

nd 3

.2. a

re s

till a

wai

ting

budg

et a

ppro

val.

3.3.

has

bee

n co

mpl

eted

and

is

rega

rded

as

such

by

the

Com

mis

sion

.

32

2014

14

.0.1

B

E

3.1

3.

23.

33.

43.

53.

6

3.7

Po

int 3

.1.:

New

pro

cedu

re

deve

lope

d by

the

Tarif

f Se

rvic

e w

ithin

the

licen

sing

fram

ewor

k.

Inst

ruct

ion/

gent

lem

en's

agre

emen

t also

alre

ady

adap

ted.

Po

int 3

.6. A

: Dep

artm

ents

w

ere

agai

n m

ade

awar

e of

th

e in

stru

ctio

n.

Poin

t 3.6

.B: C

ompl

eted

Po

int 3

.6.C

: Cas

es e

nter

ed in

O

WN

RES

and

frau

d fo

rms

com

pile

d.

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cro

atia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Cyp

rus:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: C

zech

Rep

ublic

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Irre

leva

nt –

ther

e is

no

erro

r inv

olve

d.

Den

mar

k:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

tabl

e ap

pear

s to

pres

ent f

actu

al c

ircum

stan

ces a

nd it

is th

eref

ore

not r

elev

ant t

o co

mm

ent o

n w

heth

er

actio

n ha

s bee

n ta

ken

or n

ot.

Est

onia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

015

Finl

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 7 D

ecem

ber 2

015

The

amou

nt o

f the

adj

ustm

ent (

- EU

R 3

4 m

illio

n) is

cor

rect

. The

tota

l bud

get (

EUR

1 6

69 m

illio

n) is

als

o

33

corr

ect a

s con

cern

s GN

P an

d V

AT

paym

ents

, exc

ludi

ng th

e ad

just

men

ts m

ade

in D

ecem

ber 2

015

(- E

UR

34

mill

ion)

, and

the

'opt

-out

' (+

EUR

1 m

illio

n).

Fran

ce:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: bud

get f

inal

201

4 Le

sold

e TV

A e

t RN

B d

e 56

2 M

€ au

31

déce

mbr

e 20

14 in

diqu

é co

nsis

te e

n un

sold

e po

ur le

s ann

ées 1

995-

2013

de

70,4

M

€ po

ur la

ress

ourc

e TV

A e

t de

491,

9 M

€ po

ur la

ress

ourc

e R

NB

, en

fave

ur d

e la

Com

mis

sion

eur

opée

nne.

Il

corr

espo

nd à

ce

qui é

tait

indi

qué

dans

la n

ote

d’in

form

atio

n au

x Ét

ats m

embr

es d

u B

udge

t Rec

tific

atif

n°6

pour

les

sold

es d

e l’e

xerc

ice

2014

. G

erm

any:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Fo

r inf

orm

atio

n on

ly; n

o re

ply

requ

ired.

G

reec

e:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Hun

gary

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

1.12

.201

4 W

e m

ade

avai

labl

e th

e fu

ll am

ount

of c

orre

ctio

n to

the

VA

T an

d G

NI b

alan

ce, w

e al

so m

ade

the

VA

T an

d G

NI-

base

d pa

ymen

t. Ir

elan

d:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

1/12

/201

4

Irel

and

has p

aid

its V

AT

& G

NI b

alan

ce.

Ital

y:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

2/09

/201

4

ISTA

T co

mpl

eted

the

actio

n lin

ked

to th

e G

NI r

eser

vatio

ns (E

SA 9

5) in

Sep

tem

ber 2

014,

whe

n th

e ne

w E

SA

2010

regu

latio

n w

as a

dopt

ed.

How

ever

, as o

f 31

Dec

embe

r 201

4 th

e ni

ne re

serv

atio

ns fo

r Ita

ly h

ad n

ot b

een

lifte

d.

Lat

via:

actio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

In 2

014

only

one

EC

A a

udit

was

car

ried

out i

n La

tvia

rela

ting

to th

e EU

fund

200

7–20

13 p

lann

ing

perio

d op

erat

iona

l pro

gram

me

3 In

fras

truct

ure

and

Serv

ices

. The

aud

it dr

ew ju

st o

ne c

oncl

usio

n, n

amel

y th

at th

e M

ajor

Pro

ject

app

licat

ion

(pur

suan

t to

Arti

cle

39 o

f Reg

ulat

ion

(EC

) No

1083

/200

6) w

as n

ot a

ppro

ved

with

in

a th

ree-

mon

th p

erio

d. T

his o

bser

vatio

n w

as n

ot a

ddre

ssed

to th

e La

tvia

n au

thor

ities

, but

to th

e Eu

rope

an

Com

mis

sion

.

34

Lith

uani

a: a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: L

uxem

bour

g:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Mal

ta:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 01/

09/1

5 Se

e po

int 4

.13

Net

herl

ands

:act

ion

take

n:Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Pola

nd:a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: no

te d

oes n

ot c

onta

in a

llega

tions

aga

inst

Pol

and

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

Rom

ania

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

UC

RB

UE-

MFP

- The

se a

mou

nts c

orre

spon

d to

thos

e ad

opte

d in

am

endi

ng b

udge

t No

7/20

14. U

CR

BU

E Sl

ovak

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 01/

12/2

014

Incl

uded

in th

e C

all f

or F

unds

, Dec

embe

r 201

4.

Slov

enia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

2. 0

2. 2

015

Min

istry

of F

inan

ce, B

udge

t Dire

ctor

ate:

Slo

veni

a pa

id th

e am

ount

due

und

er th

e ad

just

men

t of t

he M

embe

r Sta

tes’

na

tiona

l con

tribu

tions

on

the

basi

s of V

AT

reso

urce

s and

add

ition

al re

sour

ces,

amou

ntin

g to

EU

R 8

,063

,933

.32,

on

the

first

wor

king

day

of F

ebru

ary

2015

, i.e

. 02.

02.2

015.

Sp

ain:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: N

o ob

serv

atio

ns

Swed

en: a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Th

is c

omm

ent d

oes n

ot re

quire

Sw

eden

to ta

ke a

ctio

n.

35

Uni

ted

Kin

gdom

: act

ion

take

n: n

/a ;

actio

n co

mpl

eted

: n/a

; C

ompl

etio

n da

te: n

/a

n/a

Tab

le 4

.2.

Mem

ber s

tate

s GN

I/GN

P re

serv

atio

ns

Aus

tria

:Re

TOR

-act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Re

GN

I- a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

Re

VA

T- a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

At t

he e

nd o

f 201

5, th

ere

wer

e fo

ur re

serv

atio

ns re

gard

ing

VA

T re

sour

ces f

or A

ustri

a. T

wo

from

Aus

tria

(infr

inge

men

t pro

ceed

ings

200

7/24

53 a

nd 2

010/

2055

) and

two

from

the

Com

mis

sion

(inf

ringe

men

t pr

ocee

ding

s 200

7/24

53 a

nd 2

012/

2124

). Th

ese

are

outli

ned

brie

fly in

the

tabl

e on

the

next

pag

e, w

hich

als

o gi

ves t

he y

ears

con

cern

ed.

So

urce

of t

he ta

ble:

Eur

opea

n C

omm

issi

on's

VA

T co

ntro

l rep

ort,

ref.

Are

s(20

15) 5

2476

67 -

20/1

1/20

15, l

ette

r fr

om th

e Eu

rope

an C

omm

issi

on o

f 20

Nov

embe

r 201

5.

Bel

gium

:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

1. U

ne ré

serv

e a

été

plac

ée p

our c

alcu

ler l

e ta

ux m

oyen

pon

déré

de

la T

VA

con

cern

ant l

e tra

item

ent d

es

donn

ées r

elat

ives

à la

ven

te d

e te

rrai

ns a

vec

nouv

elle

s con

stru

ctio

ns. C

ette

rése

rve

a ét

é le

vée

au c

ours

de

l'ann

ée 2

015.

36

2. E

n lie

n av

ec c

es te

rrai

ns v

endu

s ave

c un

e no

uvel

le c

onst

ruct

ion,

il re

ste

une

rése

rve

rela

tive

aux

anné

es

2011

et 2

012.

L'in

certi

tude

sur l

es c

hiff

res p

rove

nant

de

diff

éren

tes a

dmin

istra

tions

dev

rait

être

cla

rifié

e.

3. L

a ré

serv

e su

r le

calc

ul d

e la

com

pens

atio

n su

r le

plaf

ond

de la

déd

uctio

n fix

é pa

r l'ar

ticle

45

§ 2

du C

ode

de

la ta

xe su

r la

vale

ur a

jout

ée a

été

abo

lie e

n 20

15.

4. L

a ré

serv

e po

ur l'

exon

érat

ion

des s

ervi

ces p

osta

ux u

nive

rsel

s est

rela

tive

à la

com

pens

atio

n qu

i doi

t être

ca

lcul

ée p

our l

a pé

riode

201

0-20

11. L

es se

rvic

es d

e la

Com

mis

sion

eur

opée

nne

cons

idèr

ent q

u'il

s'agi

t d'u

ne

ques

tion

d'or

dre

mét

hodo

logi

que.

La

rése

rve

est m

aint

enue

tant

que

la m

étho

de n

e se

ra p

as c

larif

iée.

5.

Con

cern

ant l

a ré

serv

e en

mat

ière

de

serv

ices

de

rest

aura

tion

à bo

rd d

es n

avire

s, tra

ins e

t avi

ons a

u co

urs

d'un

tran

spor

t int

raco

mm

unau

taire

de

pass

ager

s: ta

nt q

u'il

n'y

a pa

s de

sécu

rité

jurid

ique

, la

rése

rve

sera

m

aint

enue

.

Bul

gari

a:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

2 Se

ptem

ber 2

015

Cus

tom

s Age

ncy

(AM

): O

f the

Com

mis

sion

’s 1

3 qu

estio

ns re

latin

g to

TO

R (a

s of 3

1 D

ecem

ber 2

014)

, eig

ht

have

bee

n cl

osed

follo

win

g th

e op

inio

ns su

bmitt

ed b

y th

e B

ulga

rian

cust

oms a

utho

ritie

s, as

follo

ws:

-W

ith re

gard

to le

tter N

o B

UD

G/B

/03/

MF/

D(2

015)

3039

39 o

f the

Com

mis

sion

, dat

ed 2

6 Ja

nuar

y 20

15,

conc

erni

ng it

em 3

.2 o

f Com

mis

sion

Rep

ort N

o 09

-26-

1 on

the

verif

icat

ion

of T

OR

; -W

ith re

gard

to le

tter N

o B

UD

G/B

/03/

BF/

D(2

015)

3555

346

of th

e C

omm

issi

on, d

ated

28

Aug

ust 2

015,

co

ncer

ning

item

s 3.4

and

3.7

of C

omm

issi

on R

epor

t No

12-2

6-1

on th

e ve

rific

atio

n of

TO

R;

-With

rega

rd to

lette

r No

BU

DG

/B/0

3/M

F/D

(201

5)34

8977

of t

he C

omm

issi

on, d

ated

29

Janu

ary

2015

, co

ncer

ning

item

s 3.1

, 3.3

and

3.4

of C

omm

issi

on R

epor

t No

13-2

6-1

on th

e ve

rific

atio

n of

TO

R;

-With

rega

rd to

lette

r No

BU

DG

/B/0

3/B

F/D

(201

5)38

7426

3 of

the

Com

mis

sion

, dat

ed, 1

8 Se

ptem

ber 2

015,

co

ncer

ning

item

3.2

of C

omm

issi

on R

epor

t No

13-2

6-1

on th

e ve

rific

atio

n of

TO

R;

-With

rega

rd to

lette

r No

BU

DG

/B/3

/MF/

FGO

(201

5)41

6779

5 of

the

Com

mis

sion

, dat

ed 8

Oct

ober

201

5,

conc

erni

ng it

em 3

.2 o

f Com

mis

sion

Rep

ort N

o 14

-26-

1 on

the

verif

icat

ion

of T

OR

. W

ith re

gard

to th

e op

en q

uest

ions

: Th

e B

ulga

rian

auth

oriti

es h

ave

subm

itted

opi

nion

s on

item

s 3.1

, 3.5

and

3.6

in R

epor

t No

12-2

6-1

in a

lette

r to

the

Min

istry

of F

inan

ce (M

F) N

o 32

-221

040,

dat

ed 2

7 O

ctob

er 2

015;

Th

e B

ulga

rian

auth

oriti

es h

ave

take

n ac

tion

to is

sue

an o

pini

on o

n pa

ragr

aphs

3.1

and

3.3

from

Rep

ort N

o 14

-26

-1 o

n th

e ve

rific

atio

n of

TO

R b

y th

e de

adlin

e of

27

Nov

embe

r 201

5.

Nat

iona

l Rev

enue

Age

ncy

(NA

P): T

he B

ulga

rian

agen

cies

repr

esen

ted

by N

AP,

NSI

and

MF

have

take

n ac

tion

to re

duce

the

num

ber o

f VA

T-re

late

d re

serv

atio

ns. A

s a re

sult

of th

is, d

urin

g th

e in

spec

tion

cond

ucte

d in

ear

ly

2015

by

repr

esen

tativ

es o

f the

Com

mis

sion

, tw

o V

AT-

rela

ted

rese

rvat

ions

rem

aine

d or

five

rese

rvat

ions

wer

e w

ithdr

awn.

The

Bul

garia

n au

thor

ities

are

end

eavo

urin

g to

rem

ove

all r

eser

vatio

ns re

late

d to

the

VA

T ba

se.

NSI

: See

com

men

t on

Not

e 1

37

Cro

atia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

2/04

/201

5 C

ypru

s:ac

tion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

No

rese

rvat

ion

was

pen

ding

at 3

1 D

ecem

ber 2

014.

The

refo

re, n

o ac

tion

was

take

n to

lift

rese

rvat

ions

. In

the

perio

d be

twee

n 24

-27

June

201

4, a

team

of a

udito

rs fr

om th

e D

G B

udge

t and

Eur

osta

t (ES

TAT)

of t

he

Euro

pean

Com

mis

sion

car

ried

out a

n au

dit o

f the

VA

T ow

n re

sour

ces b

ases

for t

he y

ears

201

1-20

12. U

pon

com

plet

ion

of th

e au

dit,

no re

serv

atio

n w

as ra

ised

. Pl

ease

not

e th

at th

e fo

ur p

endi

ng re

serv

atio

ns w

ere

lifte

d af

ter t

he c

ompl

etio

n of

an

audi

t of t

he V

AT

own

reso

urce

s bas

es fo

r the

yea

rs 2

008-

2010

that

was

car

ried

out i

n 20

12 b

y a

team

of a

udito

rs fr

om th

e Eu

rope

an

Com

mis

sion

. ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Reg

ardi

ng th

e 6

‘ope

n po

ints

’ of C

ypru

s’ tr

aditi

onal

ow

n re

sour

ces,

it sh

ould

be

note

d th

at fo

ur o

f the

m h

ave

been

com

plet

ed, a

nd th

e re

mai

ning

two

are

in p

rogr

ess.

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 22/

09/2

015

As r

egar

ds th

e G

NI/G

DP

own

reso

urce

, Cyp

rus h

as ta

ken

all t

he e

xpec

ted

mea

sure

s, w

hich

wer

e fo

rwar

ded

to

the

Euro

pean

Com

mis

sion

to li

ft al

l res

erva

tions

, and

off

icia

l app

rova

l is e

xpec

ted.

C

zech

Rep

ublic

: Ope

n TO

R-r

elat

ed p

oint

s- a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: R

epor

t 13-

25-1

was

con

clud

ed a

s a w

hole

by

the

Com

mis

sion

’s le

tter o

f 27

Janu

ary

2015

(ref

eren

ce n

umbe

r 31

2414

BU

DG

/B/3

/TE

(201

5));

The

resp

onse

of t

he G

ener

al D

irect

orat

e of

Cus

tom

s to

Rep

ort 1

4-25

-1 (f

indi

ngs 3

.1; 3

.2) w

as se

nt o

n 15

Apr

il 20

15. T

he C

omm

issi

on h

as y

et to

resp

ond.

G

NI r

eser

vatio

ns- a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 30

Sept

embe

r 201

4 an

d 30

Se

ptem

ber 2

015

(est

imat

ed)

All

rese

rvat

ions

wer

e ad

dres

sed

as p

art o

f the

ext

raor

dina

ry re

visi

on o

f 201

4 na

tiona

l acc

ount

s (as

soci

ated

with

th

e tra

nsiti

on to

ESA

201

0). T

he re

sults

of t

he w

ay th

is w

as h

andl

ed, t

oget

her w

ith a

nnot

atio

ns, w

ere

sent

to

Euro

stat

in S

epte

mbe

r 201

4 (s

ee th

e G

NI Q

uest

ionn

aire

201

4 an

d Q

ualit

y R

epor

t 201

4).

Euro

stat

pro

bed

the

hand

ling

of a

spec

ific

rese

rvat

ion

(hou

sing

) dur

ing

a re

view

mis

sion

in M

ay 2

015.

Its

obse

rvat

ions

wer

e in

corp

orat

ed in

to th

e so

lutio

n. T

he re

sults

of t

he so

lutio

n w

ere

deliv

ered

to E

uros

tat i

n Se

ptem

ber 2

015

(see

the

GN

I Que

stio

nnai

re 2

015

and

Qua

lity

Rep

ort 2

015)

. Th

e C

zech

Sta

tistic

al O

ffic

e ha

s yet

to re

ceiv

e an

y of

ficia

l inf

orm

atio

n as

to w

heth

er E

uros

tat a

ccep

ts th

e so

lutio

ns p

ropo

sed.

38

Den

mar

k:V

AT

rese

rvat

ions

- ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

GN

I res

erva

tions

- All

GN

I res

erva

tions

hav

e be

en li

fted

or a

re c

urre

ntly

bei

ng p

roce

ssed

by

the

Com

mis

sion

. V

AT

rese

rvat

ions

- As o

f 31

Dec

embe

r 201

4 fo

ur re

serv

atio

ns h

ad b

een

ente

red

rega

rdin

g D

anis

h V

AT

com

pens

atio

n.

1. T

hree

of t

hese

rese

rvat

ions

con

cern

pas

seng

er tr

ansp

ort.

The

thre

e re

serv

atio

ns c

once

rn a

) lon

g-di

stan

ce

coac

h tra

nspo

rt by

fore

ign

com

pani

es in

Den

mar

k, b

) the

incl

usio

n or

non

-incl

usio

n of

stat

e su

bsid

ies i

n th

e ca

lcul

atio

n of

the

VA

T ba

se, c

) the

sepa

ratio

n of

inpu

t and

out

put (

in c

onne

ctio

n w

ith b

)).

a) A

gree

men

t has

subs

eque

ntly

bee

n re

ache

d be

twee

n th

e C

omm

issi

on a

nd th

e D

anis

h au

thor

ities

on

a co

mpe

nsat

ion

calc

ulat

ion

that

incl

udes

long

-dis

tanc

e co

ach

trans

port

by fo

reig

n co

mpa

nies

in D

enm

ark

in th

e ca

lcul

ated

VA

T ba

se.

b) a

nd c

) A so

lutio

n re

mai

ns to

be

foun

d.

2. T

he fo

urth

rese

rvat

ion

conc

erns

a c

ompe

nsat

ion

calc

ulat

ion

for t

he re

stric

tion

on b

usin

esse

s’ e

ntitl

emen

t to

mak

e de

duct

ions

for c

ar u

se. T

he D

anis

h au

thor

ities

are

in d

ialo

gue

with

the

Com

mis

sion

on

a ne

w

com

pens

atio

n ca

lcul

atio

n th

at in

volv

es u

sing

the

cent

ral m

otor

regi

ster

(DM

R),

whi

ch e

nter

ed in

to fo

rce

in

mid

-201

2.

Trad

ition

al o

wn

reso

urce

s- A

s of 3

1 D

ecem

ber 2

014

ther

e w

ere

21 o

utst

andi

ng p

oint

s reg

iste

red

in 7

aud

it re

ports

con

cern

ing

tradi

tiona

l ow

n re

sour

ces.

Aud

it re

port

2009

-1-1

on

insp

ectio

n of

ow

n re

sour

ces c

once

rnin

g tra

nsit

proc

edur

es a

nd T

IR

Ther

e w

ere

two

outs

tand

ing

poin

ts a

s of 3

1 D

ecem

ber 2

014

that

wer

e aw

aitin

g, re

spec

tivel

y, a

judg

men

t in

two

case

s at t

he C

JEU

, and

the

full

oper

atio

n of

the

com

plet

e ris

k m

odul

e in

NC

TS, i

mpl

emen

ted

from

1

Janu

ary

2015

. The

latte

r poi

nt h

as si

nce

been

clo

sed.

A

udit

repo

rt 20

10-1

-1 o

n in

spec

tion

of o

wn

reso

urce

s con

cern

ing

cont

rol s

trate

gy

As o

f 31

Dec

embe

r 201

4 th

ere

was

still

one

poi

nt o

pen.

How

ever

, tha

t poi

nt w

as la

ter c

lose

d an

d th

e au

dit

repo

rt w

as fi

nalis

ed.

Aud

it re

port

2011

-1-1

on

insp

ectio

n of

ow

n re

sour

ces c

once

rnin

g th

e lo

cal c

lear

ance

pro

cedu

re (i

mpo

rt)

Two

poin

ts in

this

aud

it re

port

rem

aine

d op

en a

s of 3

1 D

ecem

ber 2

014.

The

two

poin

ts c

once

rn in

suff

icie

nt

info

rmat

ion

in th

e no

tific

atio

ns fo

r the

loca

l cle

aran

ce p

roce

dure

and

wea

knes

ses i

n ris

k m

anag

emen

t in

conn

ectio

n w

ith th

e lo

cal c

lear

ance

pro

cedu

re.

Aud

it re

port

2011

-1-2

on

insp

ectio

n of

ow

n re

sour

ces c

once

rnin

g re

paym

ents

or r

emis

sion

and

non

-rec

over

y of

dut

ies

Two

poin

ts in

this

aud

it re

port

rem

aine

d op

en a

s of 3

1 D

ecem

ber 2

014.

The

two

outs

tand

ing

poin

ts c

once

rn:

•iden

tifyi

ng th

e po

pula

tion

of re

mis

sion

s and

repa

ymen

ts a

nd th

e im

pact

on

acco

untin

g re

porti

ng

•fai

lure

to re

spec

t the

stat

utor

y pr

oced

ure

for r

emis

sion

s and

pay

men

ts

39

Aud

it re

port

2012

-1-1

on

insp

ectio

n of

ow

n re

sour

ces c

once

rnin

g an

ti-du

mpi

ng m

easu

res

The

four

poi

nts i

n th

is a

udit

repo

rt w

ere

still

ope

n as

of 3

1 D

ecem

ber 2

015

[sic

]. Th

e C

omm

issi

on h

as

requ

este

d th

e in

trodu

ctio

n of

new

IT p

roce

dure

s for

the

regi

stra

tion

of d

ata

cove

red

by th

e re

gist

ratio

n re

gula

tions

. In

addi

tion,

the

Com

mis

sion

has

requ

este

d cl

arifi

catio

n of

lega

l int

erpr

etat

ion

rega

rdin

g en

try in

to

the

acco

unts

, inf

orm

atio

n on

the

use

of ri

sk d

ata

in th

e ris

k an

alys

is a

nd c

onfir

mat

ion

of th

e in

trodu

ctio

n of

in

tern

al c

ontro

l sta

ndar

ds. O

f the

se fo

ur p

oint

s, tw

o w

ere

clos

ed in

201

5.

Aud

it re

port

2013

-1-1

on

insp

ectio

n of

ow

n re

sour

ces –

inve

stig

atio

n of

the

relia

bilit

y of

the

2012

A a

nd B

ac

coun

ts. T

his r

epor

t con

tain

s fiv

e po

ints

con

cern

ing:

•n

o as

sess

men

t of r

espo

nsib

ility

for a

mou

nts w

ritte

n-of

f •e

rror

s in

upda

ting

the

B a

ccou

nt

•TO

R a

mou

nts m

ade

avai

labl

e be

late

dly

•adm

inis

trativ

e er

ror l

eadi

ng to

rem

issi

on

•var

ious

issu

es w

ith c

ases

of r

epay

men

t Th

e fiv

e po

ints

rem

ain

outs

tand

ing.

A

udit

repo

rt 20

14-1

-1 o

n in

spec

tion

of o

wn

reso

urce

s – e

nd-u

se p

roce

dure

Th

e re

port

was

issu

ed o

n 30

Janu

ary

2015

. Th

is a

udit

repo

rt co

ntai

ns fi

ve p

oint

s tha

t are

still

out

stan

ding

and

that

con

cern

: •f

ailu

res i

n en

d-us

e au

thor

isat

ions

•la

ck o

f con

trol o

f cus

tom

s cle

aran

ce a

nd la

ck o

f cus

tom

s sup

ervi

sion

•g

oods

pot

entia

lly c

lear

ed fo

r end

use

with

out a

utho

risat

ion

due

to IT

syst

em fl

aws

•cas

es o

f fin

anci

al li

abili

ty li

nked

to e

nd u

se

•issu

es w

ith e

nd u

se fo

r par

ticul

ar g

oods

D

enm

ark

is in

ong

oing

dia

logu

e w

ith th

e C

omm

issi

on o

n th

e im

plem

enta

tion

of so

lutio

ns fo

r the

poi

nts t

hat

rem

ain

outs

tand

ing

in a

ll th

e au

dit r

epor

ts.

Est

onia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

015

Finl

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: G

NI/G

NP

rese

rvat

ions

: At t

he e

nd o

f 201

4, fi

ve re

serv

atio

ns w

ere

outs

tand

ing

(the

tabl

e er

rone

ousl

y re

ports

th

at th

ere

wer

e si

x). S

tatis

tics F

inla

nd to

ok st

eps t

o lif

t the

m in

201

4. O

ne re

serv

atio

n w

as li

fted

in 2

015

and

Euro

stat

is p

repa

ring

prop

osal

s to

lift t

he re

mai

ning

four

. Th

e V

AT

rese

rvat

ions

hav

e be

en in

spec

ted;

no

com

men

ts to

repo

rt.

Con

cern

ing

the

six

outs

tand

ing

poin

ts in

the

area

of t

radi

tiona

l ow

n re

sour

ces,

the

Com

mis

sion

and

the

Mem

ber S

tate

will

con

tinue

to w

ork

toge

ther

to li

ft th

ese

outs

tand

ing

poin

ts. I

n re

gard

to th

e op

en p

oint

s, th

e

40

Mem

ber S

tate

has

alre

ady

impl

emen

ted

corr

ectiv

e m

easu

res t

o re

solv

e th

e po

ints

refe

rred

to in

the

obse

rvat

ion.

Fr

ance

: ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: a

u gr

é de

s éch

ange

s ent

re la

Fra

nce

et

la C

omm

issi

on su

ivan

t la

proc

édur

e no

rmal

e.

Sept

rése

rves

(deu

x sp

écifi

ques

à la

Fra

nce,

cin

q tra

nsve

rsal

es) p

orta

ient

sur l

e R

NB

fran

çais

au

31/1

2/20

14.

Des

act

ions

ont

été

ent

repr

ises

au

cour

s de

l’ann

ée é

coul

ée.

S’ag

issa

nt d

es ré

serv

es T

VA

, les

rése

rves

sur l

es re

levé

s TV

A a

u 31

déc

embr

e 20

14 p

orte

nt su

r deu

x su

jets

: le

s man

ifest

atio

ns sp

ortiv

es (c

ette

rése

rve

n’au

ra p

lus l

ieu

d’êt

re à

par

tir d

u 1e

r jan

vier

201

5, c

ar le

dro

it fr

ança

is a

été

mis

en

conf

orm

ité) e

t les

tran

spor

ts d

e bi

ens e

ntre

la F

ranc

e m

étro

polit

aine

et l

a C

orse

(une

serv

e pa

r la

Fran

ce e

t une

par

la C

omm

issi

on).

Une

rése

rve

a pa

r aill

eurs

été

dép

osée

en

juin

201

5 à

la su

ite

de l’

ouve

rture

par

la C

omm

issi

on e

urop

éenn

e d’

une

proc

édur

e d’

infr

actio

n (E

U P

ilot 6

581/

14) p

our

l’exo

néra

tion

de T

VA

des

serv

ices

d'ai

de à

la p

erso

nne

four

nis p

ar le

s ass

ocia

tions

sans

but

lucr

atif.

S’

agis

sant

des

poi

nts o

uver

ts su

r les

RPT

, un

gran

d no

mbr

e de

poi

nts o

uver

ts c

once

rne

des d

ossi

ers i

ndiv

idue

ls

rela

tifs à

des

mon

tant

s ins

crits

en

ou re

tirés

de

la c

ompt

abili

té sé

paré

e –

B. I

ls so

nt c

los a

u gr

é de

s mis

es à

di

spos

ition

des

mon

tant

s prin

cipa

ux é

vent

uelle

men

t dus

et d

es in

térê

ts d

e re

tard

exi

gibl

es, l

e ca

s éch

éant

, à la

de

man

de e

xclu

sive

des

serv

ices

de

la C

omm

issi

on (D

G B

udge

t).

Pour

les a

utre

s poi

nts o

uver

ts, d

e po

rtée

plus

gén

éral

e, il

s sui

vent

le p

roce

ssus

nor

mal

d’é

chan

ge d

e po

sitio

n en

tre le

s aut

orité

s fra

nçai

ses e

t les

serv

ices

de

la C

omm

issi

on. L

a pl

upar

t de

ces p

oint

s ouv

erts

dev

raie

nt ê

tre

clos

rapi

dem

ent (

prem

ier s

emes

tre 2

016)

car

fais

ant l

’obj

et d

’obs

erva

tions

récu

rren

tes d

e la

par

t des

age

nts

man

daté

s en

cour

s de

clôt

ure.

À ti

tre d

’exe

mpl

e, p

rès d

e la

moi

tié d

es p

oint

s ouv

erts

du

rapp

ort d

’insp

ectio

n n°

14

-5-2

sont

à m

ettre

en

rela

tion

avec

des

poi

nts o

uver

ts d

e ra

ppor

ts a

ntér

ieur

s. O

r, le

s poi

nts n

° 3.1

, n° 3

.3 e

t n°

3.4

de c

e ra

ppor

t dev

raie

nt ê

tre c

los u

ne fo

is le

CC

RP-

RPT

du

9 dé

cem

bre

2015

pas

sé. E

n re

latio

n av

ec d

es

poin

ts o

uver

ts in

scrit

s aux

rapp

orts

n° 0

9-5-

2, n

° 10-

5-1,

n° 1

0-5-

2, n

° 12-

5-1,

n° 1

3-5-

1 et

n° 1

4-5-

1, c

es

dern

iers

dev

raie

nt ê

tre c

los e

n ca

scad

e, c

e qu

i aur

a ég

alem

ent p

our c

onsé

quen

ce d

e cl

ore

inté

gral

emen

t ce

rtain

s de

ces r

appo

rts p

lus a

ncie

ns.

Ger

man

y:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Gre

ece:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: In

coop

erat

ion

with

Eur

osta

t Th

roug

hout

201

5, E

LSTA

T ha

s im

plem

ente

d a

com

preh

ensi

ve w

ork

and

actio

n pl

an in

ord

er to

add

ress

the

conc

erns

on

the

GN

I/GD

P.

Thro

ugho

ut th

is p

rogr

amm

e, E

LSTA

T ha

s wor

ked

inte

nsiv

ely

to so

lve

the

issu

es re

late

d to

the

rese

rvat

ions

an

d su

bmitt

ed th

e in

form

atio

n an

d do

cum

ents

requ

este

d by

Eur

osta

t in

2015

. In

addi

tion,

ELS

TAT

coop

erat

es

with

Eur

osta

t in

addr

essi

ng th

ese

rese

rvat

ions

and

Eur

osta

t vis

ited

ELST

AT

on tw

o oc

casi

ons i

n 20

15 (i

n Ju

ne

41

and

Dec

embe

r) to

car

ry o

ut a

det

aile

d ev

alua

tion

of E

LSTA

T's w

ork

with

the

aim

of r

emov

ing

the

rese

rvat

ions

. In

par

ticul

ar, d

urin

g th

e D

ecem

ber v

isit

(15-

17 D

ecem

ber 2

015)

a d

irect

ver

ifica

tion

of th

e da

ta su

bmitt

ed w

as

carr

ied

out b

y Eu

rost

at. E

uros

tat i

s in

the

proc

ess o

f exa

min

ing

the

info

rmat

ion

and

docu

men

tatio

n su

bmitt

ed.

Hun

gary

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: i

n pr

ogre

ss

Five

of t

he G

NI r

eser

vatio

ns w

ere

lifte

d on

the

basi

s of t

he le

tter d

ated

17

June

201

5, th

e dr

aftin

g an

d se

ndin

g of

the

offic

ial n

otifi

catio

n on

lifti

ng th

e ot

her s

even

is u

nder

way

. In

resp

ect o

f the

onl

y V

AT-

base

d re

serv

atio

n,

we

are

hold

ing

cons

ulta

tions

with

the

Com

mis

sion

to se

ttle

the

issu

e.

Irel

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

Reg

ardi

ng G

NI r

eser

vatio

ns, t

he 4

rese

rvat

ions

are

tran

sver

sal i

.e. a

pplic

able

to a

ll m

embe

r sta

tes.

The

stat

e of

pl

ay is

as f

ollo

ws:

C

ount

ry

Tra

nsve

rsal

GN

I Res

erva

tion

(fro

m E

uros

tat

GN

I Com

mitt

ee m

eetin

g O

ctob

er 2

015)

Y

ears

of

appl

icat

ion

Res

erva

tion

lifte

d St

ate

of p

lay

Irel

and

I. Th

e tre

atm

ent o

f cro

ss-b

orde

r pro

perty

inco

me

II. T

he c

alcu

latio

n an

d al

loca

tion

of fi

nanc

ial

inte

rmed

iatio

n se

rvic

es in

dire

ctly

m

easu

red

(FIS

IM)

III.

The

treat

men

t of e

ntiti

es w

ith li

ttle

or n

o ph

ysic

al p

rese

nce

IV. T

he tr

eatm

ent o

f car

scra

p sc

hem

es

V. T

he tr

eatm

ent o

f coo

pera

tive

dwel

lings

V

I. Th

e in

clus

ion

of il

lega

l act

iviti

es in

nat

iona

l ac

coun

ts

VII

. The

reco

rdin

g of

the

vehi

cle

regi

stra

tion

tax

VII

I. Th

e ca

lcul

atio

n of

IC fo

r act

ual a

nd im

pute

d re

ntal

s in

the

estim

atio

n of

the

prod

uctio

n of

hou

sing

serv

ices

2002

-201

0 20

10 o

nwar

ds

2002

-201

0 20

02-2

010

2002

-201

0 20

02-2

010

2009

-201

0

2009

-201

0

18

/09/

2013

06/0

2/20

14

06

/02/

2014

06/0

2/20

14

I - T

echn

ical

op

inio

n on

lifti

ng

is b

eing

pre

pare

d.

II -

Not

yet

ad

dres

sed.

V

I and

VII

I -

Tech

nica

l op

inio

ns o

n lif

ting

of re

serv

atio

ns a

re

bein

g pr

epar

ed b

y Eu

rost

at.

42

As a

t 18

Nov

embe

r 201

5, C

SO a

wai

ts fo

rmal

rece

ipt o

f Eur

osta

t’s te

chni

cal o

pini

ons o

n th

e th

ree

rese

rvat

ions

lis

ted

abov

e. O

n re

serv

atio

n II

(FIS

IM),

Euro

stat

has

giv

en a

dea

dlin

e of

Sep

tem

ber 2

016

for t

he

impl

emen

tatio

n of

the

requ

ired

met

hodo

logy

in th

e na

tiona

l acc

ount

s. C

SO is

pre

parin

g a

revi

sed

FISI

M

calc

ulat

ion

met

hodo

logy

for t

rans

mis

sion

to E

uros

tat,

befo

re th

e en

d of

201

5, fo

r its

con

side

ratio

n. O

nce

this

is

appr

oved

by

Euro

stat

, CSO

will

impl

emen

t the

cha

nges

in it

s nex

t ann

ual n

atio

nal a

ccou

nts r

esul

ts ti

me

serie

s, sc

hedu

led

for J

une

2016

.

Reg

ardi

ng th

e V

AT

rese

rvat

ions

, we

cont

inue

to w

ork

clos

ely

with

the

Euro

pean

Com

mis

sion

, the

Cen

tral

Stat

istic

s Off

ice

and

colle

ague

s in

othe

r sec

tions

of t

he R

even

ue C

omm

issi

oner

s of I

rela

nd. W

e ha

ve

resp

onde

d to

the

Com

mis

sion

rega

rdin

g th

e ou

tsta

ndin

g re

serv

atio

ns a

nd w

e ex

pect

seve

ral o

f the

rese

rvat

ions

to

be

lifte

d in

the

new

yea

r.

Reg

ardi

ng th

e TO

R re

serv

atio

ns R

even

ue h

as n

oted

with

inte

rest

the

Cou

rt of

Aud

itors

obs

erva

tions

in re

latio

n to

Tra

ditio

nal O

wn

Res

ourc

es. T

able

4.2

reve

als t

hat a

s at 3

1/12

/14,

ther

e w

ere

13 ‘o

pen

poin

ts’ r

elat

ed to

in

spec

tions

car

ried

out b

y D

G B

UD

GET

in Ir

elan

d. A

num

ber o

f the

se ‘o

pen

poin

ts’ h

ave

been

dea

lt w

ith

sinc

e th

at d

ate.

The

upd

ated

pos

ition

is a

s fol

low

s;

•The

re a

re c

urre

ntly

8 ‘o

pen

poin

ts’ r

emai

ning

ass

ocia

ted

with

insp

ectio

ns in

201

1 an

d 20

13

•201

1 in

spec

tion

– A

follo

w u

p re

port

was

rece

ived

from

DG

BU

DG

ET in

Sep

t 201

5. T

hree

‘ope

n po

ints

’ re

mai

n. O

ur re

spon

se to

this

follo

w u

p w

ill b

e di

spat

ched

to D

GB

UD

GET

bef

ore

the

end

of 2

014.

Tw

o of

the

rem

aini

ng o

pen

poin

ts re

late

to th

e ch

argi

ng o

f lat

e pa

ymen

t int

eres

t. Th

ey w

ill b

e cl

osed

onc

e th

is in

tere

st h

as

been

pai

d. W

e ar

e cu

rren

tly a

wai

ting

info

rmat

ion

from

DG

BU

DG

ET o

n th

e ex

act a

mou

nt in

volv

ed. T

hese

am

ount

s will

be

paid

afte

r the

am

ount

s req

uest

ed a

re v

erifi

ed. I

t is a

lso

hope

d th

at th

e th

ird ‘o

pen

poin

t’ w

ill

also

be

clos

ed o

nce

Irel

and

have

pro

vide

d cl

arifi

catio

n to

DG

BU

DG

ET o

n th

e m

atte

r.

•201

3 in

spec

tion

– Th

ere

wer

e fiv

e ‘o

pen

poin

ts’ a

ssoc

iate

d w

ith th

is in

spec

tion.

Irel

and

prov

ided

a re

spon

se

to D

G B

UD

GET

on

thes

e in

ear

ly 2

015.

To

date

(mid

Nov

201

5) w

e ha

ve n

ot y

et re

ceiv

ed a

ny fu

rther

follo

w

up fr

om D

G B

UD

GET

on

the

mat

ter.

Acc

ordi

ngly

, the

y m

ust r

emai

n op

en u

ntil

such

follo

w u

p is

rece

ived

.

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

With

rega

rd to

VA

T ow

n re

sour

ces,

the

actio

n ta

ken

by th

e Ita

lian

auth

oriti

es to

ok th

e fo

rm o

f a se

ries o

f doc

umen

ts a

nd

calc

ulat

ion

shee

ts c

onta

inin

g th

e pr

opos

als f

or li

fting

the

rem

aini

ng re

serv

atio

ns.

A n

ew in

spec

tion

visi

t con

cern

ing

2011

-13

was

car

ried

out f

rom

6 to

10

Oct

ober

201

4, fo

llow

ing

whi

ch th

e is

sues

un

derly

ing

the

liftin

g of

the

rem

aini

ng re

serv

atio

ns w

ere

addr

esse

d. T

here

wer

e el

even

rese

rvat

ions

in p

lace

at t

he ti

me

of th

e in

spec

tion

visi

t, ei

ght o

n th

e pa

rt of

the

Com

mis

sion

and

thre

e on

the

part

of th

e Ita

lian

auth

oriti

es. I

taly

's in

itial

43

repl

ies a

nd th

e su

ppor

ting

docu

men

tatio

n w

ere

prov

ided

with

in o

ne m

onth

of t

he e

nd o

f the

Com

mis

sion

's in

spec

tion,

w

ith th

e re

sult

that

the

num

ber o

f ope

n re

serv

atio

ns w

as re

duce

d fr

om e

ight

to se

ven

on th

e C

omm

issi

on's

part,

and

to

one

on It

aly'

s par

t (pr

elim

inar

y C

omm

issi

on re

port,

Are

s (20

15) 7

0758

9 of

19

Febr

uary

201

5).

For 2

015,

we

note

that

in th

e fin

al C

omm

issi

on re

port

on th

e re

sults

of t

he in

spec

tion

for 2

014

(Are

s (20

15) 4

4551

77 o

f 21

Oct

ober

201

5), t

he C

omm

issi

on li

fted

thre

e fu

rther

rese

rvat

ions

, lea

ving

a to

tal o

f six

rese

rvat

ions

out

stan

ding

, co

mpr

isin

g fo

ur fr

om th

e C

omm

issi

on a

nd tw

o fr

om th

e Ita

lian

auth

oriti

es. T

he re

sults

of t

he in

spec

tion

for 2

011-

13

wer

e pr

esen

ted

to A

CO

R in

Bru

ssel

s on

12 N

ovem

ber 2

015.

With

rega

rd to

the

outs

tand

ing

1999

rese

rvat

ion

conc

erni

ng V

AT

rece

ipts

and

refu

nds,

the

spec

ial a

udit

requ

este

d by

the

Com

mis

sion

took

pla

ce o

n 24

and

25

Sept

embe

r 201

5 w

ith th

e pa

rtici

patio

n of

the

natio

nal C

ourt

of A

udito

rs, t

o ch

eck

the

acco

untin

g ite

ms s

ubje

ct to

the

rese

rvat

ion;

wor

k on

this

will

be

com

plet

ed b

y th

e ne

xt A

CO

R m

eetin

g in

201

6.

TOR

ope

n po

ints

-

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 20/

03/2

015

Con

cern

ing

Com

mis

sion

repo

rt N

o 12

/7/1

, reg

ardi

ng m

atte

rs w

ithin

the

rem

it of

the

Min

istry

of E

cono

mic

Aff

airs

and

Fi

nanc

e, G

ener

al N

atio

nal A

ccou

nts D

epar

tmen

t, w

e w

ould

like

to p

oint

out

the

follo

win

g:

1)

with

rega

rd to

poi

nt 3

.1, '

Dat

e of

reco

very

with

in th

e m

eani

ng o

f the

ow

n-re

sour

ces l

egis

latio

n', t

he e

lect

roni

c co

mm

unic

atio

n of

dat

a be

twee

n Eq

uita

lia a

nd th

e M

inis

try re

latin

g to

enf

orce

d re

cove

ries f

rom

the

B a

ccou

nt h

as b

een

upda

ted;

2)

with

rega

rd to

poi

nt 3

.4, '

Inco

nsis

tenc

ies b

etw

een

the

stat

emen

ts o

f the

A a

nd B

acc

ount

s', o

n th

e ba

sis o

f the

m

onth

ly p

aym

ent f

or M

arch

201

5 (J

anua

ry 2

015

asse

ssm

ents

), th

e st

atem

ent f

or th

e A

acc

ount

has

bee

n am

ende

d an

d an

an

nex

to th

is a

ccou

nt h

as b

een

prod

uced

, as r

eque

sted

by

DG

BU

DG

B3.

Res

pons

e fr

om th

e C

usto

ms a

nd M

onop

olie

s Age

ncy

on th

e ot

her o

pen

TOR

poi

nts

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 21

Nov

embe

r 201

4

With

rega

rd to

unr

esol

ved

issu

es c

once

rnin

g tra

ditio

nal o

wn

reso

urce

s, w

e co

nfirm

that

all

the

issu

es id

entif

ied

durin

g ch

ecks

in L

atvi

a on

trad

ition

al o

wn

reso

urce

s hav

e be

en re

solv

ed.

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

With

rega

rd to

the

GN

I/GN

P re

serv

atio

ns, d

urin

g 20

15 c

once

rted

effo

rts c

ontin

ued

(incl

udin

g th

ree

Euro

stat

in

form

atio

n vi

sits

) aim

ed a

t elim

inat

ing

all r

emai

ning

GN

I res

erva

tions

as s

oon

as p

ossi

ble.

The

201

5 G

NI

ques

tionn

aire

incl

uded

the

resu

lts o

f wor

k on

spec

ific

GN

I res

erva

tions

and

cro

ss-c

uttin

g is

sues

(im

pact

on

the

44

volu

me

of G

NI)

, and

the

qual

ity re

port

also

pro

vide

d a

brie

f des

crip

tion

of th

e w

ork

done

on

GN

I res

erva

tions

. D

etai

led

info

rmat

ion

has b

een

sent

to E

uros

tat,

but a

met

hodo

logi

cal d

escr

iptio

n re

latin

g to

one

rese

rvat

ion

is

still

to b

e co

mpl

eted

(the

vol

ume

of G

NI i

s not

subj

ect t

o an

aud

it). W

ith re

gard

to th

e 15

rem

aini

ng

rese

rvat

ions

, the

Cen

tral S

tatis

tical

Boa

rd h

as c

ondu

cted

all

nece

ssar

y au

dits

of G

NI f

igur

es a

nd h

as su

bmitt

ed

all t

he n

eces

sary

doc

umen

tatio

n w

ith a

vie

w to

thes

e re

serv

atio

ns b

eing

lifte

d. F

urth

er p

rogr

ess i

s dep

ende

nt o

n ho

w q

uick

ly E

uros

tat c

an p

repa

re a

ll th

e ne

cess

ary

docu

men

tatio

n in

ord

er to

off

icia

lly li

ft th

ese

rese

rvat

ions

.

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: W

ith re

gard

to th

e V

AT

rese

rvat

ions

, the

que

stio

n w

as ra

ised

with

in th

e fr

amew

ork

of th

e EU

Pilo

t pro

cedu

re

6103

/14/

TAX

U a

s to

whe

ther

the

valu

e ad

ded

tax

exem

ptio

n fo

r acc

omm

odat

ion

man

agem

ent s

ervi

ces c

ompl

ies w

ith th

e pr

ovis

ions

of C

ounc

il D

irect

ive

2006

/112

/EC

of 2

8 N

ovem

ber 2

006

on th

e co

mm

on sy

stem

of v

alue

add

ed ta

x (th

e V

AT

Dire

ctiv

e). T

he C

omm

issi

on's

serv

ices

sent

thei

r firs

t req

uest

for i

nfor

mat

ion

to th

e co

mpe

tent

Lat

vian

aut

horit

ies o

n 11

Fe

brua

ry 2

014,

to w

hich

the

Latv

ian

auth

oriti

es re

plie

d on

22

Apr

il 20

14. F

ollo

win

g re

ceip

t of t

his r

espo

nse,

on

8 Ju

ly

2014

the

Com

mis

sion

's se

rvic

es se

nt a

furth

er re

ques

t for

info

rmat

ion,

to w

hich

the

Latv

ian

auth

oriti

es re

plie

d on

6

Aug

ust 2

014.

On

26 N

ovem

ber 2

014

the

Latv

ian

auth

oriti

es re

ceiv

ed th

e C

omm

issi

on's

lette

r of f

orm

al n

otic

e in

in

frin

gem

ent p

roce

edin

gs 2

014/

2233

. Th

e le

tter s

ettin

g ou

t Lat

via's

pos

ition

in re

spon

se to

the

Com

mis

sion

's le

tter o

f for

mal

not

ice

in th

ese

infr

inge

men

t pr

ocee

ding

s sta

ted

that

, with

a v

iew

to re

solv

ing

the

infr

inge

men

t ide

ntifi

ed b

y th

e C

omm

issi

on a

nd c

orre

ctly

app

lyin

g th

e pr

ovis

ions

of t

he V

AT

Dire

ctiv

e, L

atvi

a w

ill a

men

d th

e V

alue

Add

ed T

ax L

aw b

y de

letin

g A

rticl

e 52

(1)(

25)(

b),

whi

ch p

rovi

des f

or V

AT

exem

ptio

n fo

r acc

omm

odat

ion

man

agem

ent s

ervi

ces.

W

e w

ould

info

rm y

ou th

at o

n 30

Nov

embe

r 201

5 th

e Sa

eim

a ad

opte

d th

e La

w a

men

ding

the

Val

ue A

dded

Tax

Law

, w

hich

stip

ulat

es th

at fr

om 1

July

201

6 A

rticl

e 52

(1)(

25)(

b) is

del

eted

from

the

Val

ue A

dded

Tax

Law

. At t

he sa

me

time

Arti

cle

52(1

)(8)

(b) o

f the

Law

on

VA

T, la

ying

dow

n V

AT

exem

ptio

n fo

r acc

omm

odat

ion

mai

nten

ance

and

man

agem

ent

serv

ices

pro

vide

d by

coo

pera

tive

soci

etie

s for

ow

ners

of d

wel

lings

to th

eir m

embe

rs, i

s als

o de

lete

d. T

here

fore

, as o

f 1

July

201

6 ac

com

mod

atio

n m

anag

emen

t ser

vice

s will

be

subj

ect t

o V

AT.

L

ithua

nia:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Ther

e is

a te

chni

cal c

oncl

usio

n by

Eur

osta

t on

all t

he fo

ur G

NP

rese

rvat

ions

that

they

nee

d to

be

repe

aled

(d

ocum

ent o

n th

e st

ate

of G

NP

rese

rvat

ions

dra

wn

up a

t the

31s

t mee

ting

of th

e G

NP

Com

mitt

ee (2

1-22

O

ctob

er 2

015)

(Doc

. 309

)) (a

ctio

ns o

ngoi

ng).

On

1-5

Dec

embe

r 201

4 th

e Eu

rope

an C

omm

issi

on c

arrie

d ou

t a c

ontro

l ins

pect

ion

to c

heck

ow

n-re

sour

ces

repo

rts b

ased

on

valu

e ad

ded

tax

(‘V

AT’

) for

201

1-20

13. O

n 16

Nov

embe

r 201

5 th

e fin

al c

onso

lidat

ed

45

docu

men

t by

the

Euro

pean

Com

mis

sion

’s D

irect

orat

e G

ener

al fo

r Bud

get s

ubm

itted

afte

r Lith

uani

a pu

t fo

rwar

d its

com

men

ts o

n th

e co

ntro

l of V

AT-

base

d ow

n-re

sour

ces c

onfir

med

that

Lith

uani

a st

ill d

id n

ot h

ave

any

VA

T re

serv

atio

ns (a

ctio

ns c

ompl

eted

). A

ctio

n w

as ta

ken

in re

spec

t of o

pen

com

men

ts c

once

rnin

g tra

ditio

nal o

wn

reso

urce

s (‘T

OR

’) li

sted

in th

e C

ourt’

s rep

ort a

nd th

ey a

re b

eing

han

dled

(act

ions

ong

oing

): -P

arag

raph

s 3.1

and

3.2

of t

he E

urop

ean

Com

mis

sion

’s R

epor

t No

11-2

0-1

of 9

Janu

ary

2012

on

TOR

che

cks

carr

ied

out i

n Li

thua

nia

on 3

7 O

ctob

er 2

011

(Let

ter N

o B

UD

G/B

/03/

KV

(201

4) o

f 2 O

ctob

er 2

014

from

the

Euro

pean

Com

mis

sion

). -P

arag

raph

s 3.2

and

3.3

of t

he E

urop

ean

Com

mis

sion

’s R

epor

t No

12-2

0-1

of 2

5 Ja

nuar

y 20

13 o

n th

e TO

R

chec

k ca

rrie

d ou

t in

Lith

uani

a on

22-

26 O

ctob

er 2

012

(Let

ter N

o B

UD

G/B

/3/K

V D

9201

4) o

f 5 N

ovem

ber

2014

from

the

Euro

pean

Com

mis

sion

). -P

arag

raph

3.1

of t

he E

urop

ean

Com

mis

sion

’s R

epor

t No

14-2

0-1

of 5

Sep

tem

ber 2

014

on th

e TO

R c

heck

ca

rrie

d ou

t in

Lith

uani

a on

16

20 Ju

ne 2

014.

L

uxem

bour

g:ac

tion

take

n: Y

ES (p

our 1

rése

rve

TVA

) ; a

ctio

n co

mpl

eted

: NO

(rés

erve

TV

A, c

omm

issi

on

info

rmée

); C

ompl

etio

n da

te: 2

016

(rés

erve

TV

A)

actio

n ta

ken:

YES

(RPT

) ; a

ctio

n co

mpl

eted

: NO

(RPT

) ; C

ompl

etio

n da

te: e

n at

tent

e d’

une

répo

nse

de la

C

omm

issi

on (R

PT)

Con

cern

ant l

es R

PT :U

ne p

rise

de p

ositi

on a

u de

rnie

r poi

nt re

stan

t du

rapp

ort 1

3-8-

1 de

201

3 a

été

envo

yée

le

10.1

2.20

14 à

la C

omm

issi

on.

Mal

ta:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 01/

09/1

5 Th

e St

atis

tics O

ffic

e w

orke

d on

11

GN

I/GN

P re

serv

atio

ns d

urin

g 20

15. T

he la

st re

serv

atio

n w

ill b

e di

scus

sed

with

Eur

osta

t dur

ing

2016

. N

ethe

rlan

ds:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Po

land

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: f

or G

NI:

31.1

2.20

15 fo

r TO

R:

14.0

7.20

15

GN

I- W

ith re

gard

to G

NI,

the

Com

mis

sion

rese

rved

its p

ositi

on o

n el

even

issu

es sp

ecifi

c to

Pol

and

and

eigh

t cr

oss-

sect

or is

sues

. Res

erva

tion

(4) w

as li

fted

on 2

3 A

pril

2014

and

Res

erva

tion

(9) w

as li

fted

on 6

Aug

ust

46

2014

. Th

e C

entra

l Sta

tistic

al O

ffic

e ha

s mad

e th

e ne

cess

ary

amen

dmen

ts to

the

2015

GN

I Que

stio

nnai

re to

laun

ch

the

proc

edur

e fo

r lift

ing

rese

rvat

ions

on

GN

I. Eu

rost

at is

cur

rent

ly p

ursu

ing

chec

ks o

n G

NI.

It is

pla

nnin

g to

pr

epar

e te

chni

cal o

pini

ons o

n th

e re

serv

atio

ns b

y 31

Dec

embe

r 201

5.

VA

T- T

he C

omm

issi

on a

ccep

ted

the

revi

sed

VA

T ca

lcul

atio

ns a

nd u

pdat

ed it

s dat

abas

e by

the

amou

nts o

f co

mpe

nsat

ion.

Acc

ordi

ngly

, the

fina

l res

erva

tion

in re

spec

t of t

he C

entra

l Sta

tistic

al O

ffic

e fo

r 200

4-10

was

lif

ted.

In

add

ition

, in

view

of t

he fa

ct th

at th

e re

serv

atio

ns re

ferr

ed to

in T

able

4.2

of C

hapt

er 4

may

be

rais

ed b

y M

embe

r Sta

tes o

r the

Com

mis

sion

in c

onne

ctio

n w

ith th

e m

etho

d or

dat

a us

ed to

cal

cula

te th

e EU

VA

T ow

n re

sour

ces b

ase,

and

that

wor

k to

add

ress

the

rele

vant

issu

es a

nd li

ft th

e re

serv

atio

ns is

an

ongo

ing

proc

ess

invo

lvin

g cl

ose

coop

erat

ion

betw

een

the

Mem

ber S

tate

s and

the

Com

mis

sion

, in

our o

pini

on, T

able

4.2

shou

ld

indi

cate

that

of t

he V

AT

rese

rvat

ions

as a

t 31.

12.2

014

conc

erni

ng P

olan

d, o

ne h

ad b

een

flagg

ed u

p by

the

Polis

h au

thor

ities

and

con

cern

ed th

e ex

cess

ivel

y w

ide-

rang

ing

VA

T ex

empt

ion

for p

osta

l ser

vice

s. TO

R- A

fter t

he c

heck

s car

ried

out o

n 12

-16

Nov

embe

r 201

2 co

ncer

ning

the

Stat

emen

t of A

ssur

ance

for t

he

2012

fina

ncia

l yea

r (D

AS

2012

) for

Tra

ditio

nal O

wn

Res

ourc

es, t

he C

ourt

of A

udito

rs p

rodu

ced

eigh

t pr

elim

inar

y fin

ding

s (in

17

poin

ts) w

hich

wer

e se

t out

in it

s let

ter t

o th

e Su

prem

e A

udit

Off

ice

date

d 6

Febr

uary

201

3 (r

ef. P

F-54

10).

Thos

e pr

elim

inar

y fin

ding

s, th

e Po

lish

auth

oriti

es’ r

eply

and

the

lette

r fro

m th

e C

ourt

of A

udito

rs w

ere

forw

arde

d to

the

Com

mis

sion

, whi

ch, b

y le

tter d

ated

4 S

epte

mbe

r 201

5 re

f. 36

5154

3,

indi

cate

d th

at w

ith re

gard

to th

e re

ply

of th

e Po

lish

auth

oriti

es (t

he d

efin

itive

repl

y to

the

Com

mis

sion

on

this

su

bjec

t had

bee

n se

t out

in le

tter D

C2.

9021

.13.

2015

.PX

M o

f 14

July

201

5) it

rega

rded

pre

limin

ary

findi

ngs

shee

t PF

5410

/12

as c

lose

d.

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

With

resp

ect t

o th

e in

form

atio

n in

tabl

e 4.

2. –

TO

R o

utst

andi

ng p

oint

s at 3

1 D

ecem

ber 2

014,

it c

ould

be

infe

rred

with

rega

rd to

the

conc

lusi

ons a

nd re

com

men

datio

ns m

ade

by th

e EC

A, a

nd a

ccep

ted

in th

e br

oade

r m

eani

ng fo

r all

Mem

ber S

tate

s, th

at th

e sy

stem

s are

gen

eral

ly e

ffec

tive

for T

OR

. Som

e pr

oces

ses a

re b

eing

du

ly m

onito

red

and

othe

rs a

re a

wai

ting

anal

ysis

, in

acco

rdan

ce w

ith th

e co

rrec

tions

mad

e at

the

requ

est o

f the

C

omm

issi

on, t

he c

ompe

tent

ent

ity fo

r the

insp

ectio

ns.

From

a m

ore

deta

iled

anal

ysis

of t

he o

utst

andi

ng p

oint

s as s

et o

ut in

Com

mis

sion

repo

rts in

acc

orda

nce

with

47

Arti

cle

18 o

f Reg

ulat

ion

(EC

, Eur

atom

) No

1150

/200

0, th

e fo

llow

ing

shou

ld b

e no

ted:

a.

At 3

1.12

.201

4 th

ere

wer

e 14

out

stan

ding

poi

nts a

nd n

ot 1

5, b

earin

g in

min

d th

at th

e ou

tsta

ndin

g po

int i

n C

omm

issi

on R

epor

t No

10-1

0-1

(con

trol v

isit

to P

ortu

gal f

rom

12

to 1

6 Ju

ly 2

010)

whe

re n

atio

nal a

utho

ritie

s ha

d be

en re

quire

d to

pay

late

pay

men

t int

eres

t in

acco

rdan

ce w

ith A

rticl

e 11

of R

egul

atio

n N

o 11

50/2

000,

this

w

as p

aid

to th

e Eu

rope

an C

omm

issi

on o

n 22

.12.

2014

, and

as s

uch,

this

poi

nt w

as c

lose

d at

31.

12.2

014;

b.

With

resp

ect t

o th

e ac

coun

ting

treat

men

t to

be c

arrie

d ou

t in

the

case

of o

utst

andi

ng d

ebt b

eing

dec

lare

d tim

e-ba

rred

, the

Tax

Aut

horit

y dr

ew u

p ne

w in

stru

ctio

ns –

Off

icia

l Circ

ular

No

1538

3 of

15

July

201

5 –

whi

ch

stat

ed th

at th

e su

ms s

houl

d be

dec

lare

d irr

ecov

erab

le w

hen

debt

is d

ecla

red

time-

barr

ed;

c.W

ith re

spec

t to

the

ques

tionn

aire

that

the

Com

mis

sion

requ

este

d fr

om n

atio

nal a

utho

ritie

s to

dete

rmin

e w

heth

er th

e irr

ecov

erab

le n

atur

e of

thes

e su

ms i

s attr

ibut

able

to th

e na

tiona

l aut

horit

ies o

r not

for a

ll su

ms

subj

ect t

o re

ctifi

catio

n du

e to

tim

e-ba

rrin

g, w

e w

ould

like

to n

ote

that

this

que

stio

nnai

re is

alm

ost c

ompl

ete.

A

fter c

ompl

etio

n, th

e fo

llow

ing

actio

ns w

ill b

e un

derta

ken

(1) r

eint

egra

tion

of th

e su

ms i

nto

acco

unts

(B),

(2)

cond

ition

al p

aym

ent o

f the

ow

n re

sour

ces i

nvol

ved

and

(3) a

naly

sis o

f the

nat

iona

l aut

horit

ies'

inve

stig

atio

n in

to th

e re

cove

ry o

f the

sum

s in

ques

tion

with

a v

iew

to c

oncl

udin

g w

heth

er th

e Po

rtugu

ese

stat

e sh

ould

be

cons

ider

ed re

spon

sibl

e fo

r non

-col

lect

ion;

d.

Ther

e ar

e al

so a

num

ber o

f oth

er p

oint

s whe

re th

e C

omm

issi

on re

ques

ted

addi

tiona

l inf

orm

atio

n;

e.Th

ere

are

othe

r poi

nts w

hich

are

now

at t

he c

oncl

usio

n st

age,

as t

he su

ms i

n qu

estio

n ha

ve a

lread

y be

en p

aid

to th

e C

omm

issi

on.

Rom

ania

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

In 2

015,

two

GN

I res

erva

tions

wer

e lif

ted.

NSI

RO

poi

nts o

ut th

at in

201

5, tw

o G

NI r

eser

vatio

ns w

ere

lifte

d.

As r

egar

ds th

e V

AT

reso

urce

, the

two

rese

rvat

ions

exi

stin

g on

31

Dec

embe

r 201

4 (o

ne p

lace

d by

RO

and

one

by

CO

M) c

once

rned

the

sam

e is

sue

(the

mot

or v

ehic

le c

ompe

nsat

ion)

. UC

RB

UE

The

num

ber o

f poi

nts i

n th

e in

spec

tion

repo

rts d

raw

n up

by

the

Euro

pean

Com

mis

sion

dur

ing

the

perio

d

2011

-201

4 w

hich

requ

ire se

ttlem

ent i

s 13,

as p

oint

ed o

ut in

the

abov

e-m

entio

ned

docu

men

t.

CU

STO

MS

Slov

akia

:VA

T re

serv

atio

ns a

s at 3

1 D

ecem

ber 2

014-

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

;

48

Com

plet

ion

date

: 19/

11/2

015

Res

erva

tion

with

draw

n (in

dica

ted

in th

e Eu

rope

an C

omm

issi

on’s

doc

umen

t BU

DG

B4/

GR

/ A

res(

2015

)520

5649

of 1

9 N

ovem

ber 2

015

– Su

mm

ary

Rep

ort p

ursu

ant t

o A

rticl

e 6

of R

egul

atio

n N

o 10

26/1

999

on re

sults

and

obs

erva

tions

aris

ing

from

the

Com

mis

sion

’s in

spec

tion

of st

atem

ents

of V

AT-

base

d re

sour

ces i

n Sl

ovak

ia fo

r 201

0, 2

011

and

2012

).

TOR

rese

rvat

ions

as a

t 31

Dec

embe

r 201

4- a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: TO

R o

pen

poin

ts a

s at 3

1 D

ecem

ber 2

014

conc

ern

TOR

insp

ectio

ns b

y th

e C

omm

issi

on (D

G B

UD

GET

) ca

rrie

d ou

t in

2013

and

201

4. T

he F

inan

cial

Dire

ctor

ate

and

DG

BU

DG

ET a

re e

ngag

ed in

cor

resp

onde

nce

on

all p

oint

s in

a bi

d to

clo

se th

ose

that

are

ope

n. A

s far

as t

he o

pen

poin

t fro

m th

e 20

13 in

spec

tion

is c

once

rned

, w

e aw

ait D

G B

UD

GET

’s re

actio

n, o

r, m

ore

spec

ifica

lly, n

otifi

catio

n of

the

clos

ure

of th

is p

oint

. As f

or th

e tw

o op

en p

oint

s ste

mm

ing

from

the

2014

insp

ectio

n, se

vera

l par

t-ope

n po

ints

hav

e be

en c

lose

d, b

ut

com

mun

icat

ions

bet

wee

n th

e Fi

nanc

ial D

irect

orat

e an

d D

G B

UD

GET

rem

ain

ongo

ing

(this

is d

etai

led

in

docu

men

t AC

OR

-TO

R/2

015-

12/a

gend

a-04

-en

– B

rief s

umm

ary

of th

e C

omm

issi

on se

rvic

es’ p

ositi

ons o

n fin

ding

s rel

atin

g to

14

tradi

tiona

l ow

n re

sour

ces i

nspe

ctio

ns).

GN

I/GN

P re

serv

atio

ns a

s at 3

1 D

ecem

ber 2

014-

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

A C

omm

issi

on le

tter o

f 3 Ju

ne 2

015

rem

oved

the

Stat

istic

al O

ffic

e’s S

peci

fic R

eser

vatio

n 1,

whi

ch w

e ta

ke to

m

ean

that

the

rese

rvat

ion

has b

een

reso

lved

. The

follo

win

g re

serv

atio

ns h

ave

been

pro

visi

onal

ly a

ppro

ved

on

the

basi

s of E

uros

tat i

nfor

mat

ion

(em

ail d

ocum

enta

tion)

: Spe

cific

Res

erva

tion

2 (1

8 Se

ptem

ber 2

015)

, I (1

9 A

ugus

t 201

5 –

notif

icat

ion

of a

pro

posa

l to

rem

ove

the

trans

vers

al re

serv

atio

n), I

I (on

28

Oct

ober

201

5, w

e w

ere

notif

ied

by le

tter t

hat t

he tr

ansv

ersa

l res

erva

tion

had

been

clo

sed)

, VII

I (18

Sep

tem

ber 2

015)

, V (1

8 Ju

ne

2015

– n

otifi

catio

n of

a p

ropo

sal t

o re

mov

e th

e re

serv

atio

n fo

llow

ing

the

appr

oval

of R

eser

vatio

n V

III)

and

VI

(25

June

201

5). T

he o

pen

poin

ts a

wai

t off

icia

l app

rova

l and

con

firm

atio

n fr

om th

e C

omm

issi

on. B

uild

ing

on

the

conc

lusi

ons b

y th

e G

NI w

orki

ng p

arty

(21-

22 O

ctob

er 2

015)

, Eur

osta

t is p

lann

ing

to c

lose

mos

t of t

he

rese

rvat

ions

by

the

end

of 2

015.

Sl

oven

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 21.

09. 2

015

STA

TIST

ICA

L O

FFIC

E O

F TH

E R

EPU

BLI

C O

F SL

OV

ENIA

: In

2015

, Eur

osta

t was

pro

vide

d w

ith a

dditi

onal

ex

plan

atio

ns in

con

nect

ion

with

the

rese

rvat

ions

rega

rdin

g th

e da

ta o

n gr

oss n

atio

nal i

ncom

e (G

NI)

. Wor

k on

the

revi

sion

s to

the

data

rela

ting

to th

e re

serv

atio

ns h

as b

een

com

plet

ed a

nd th

e re

sults

sent

to E

uros

tat o

n 21

.9.2

015

in th

e co

ntex

t of t

he re

gula

r sub

mis

sion

of t

he G

NI Q

uest

ionn

aire

. Sp

ain:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: Tw

o V

AT

rese

rvat

ions

wer

e ou

tsta

ndin

g at

31

Dec

embe

r 201

4 in

the

case

of S

pain

. The

se w

ere

the

sam

e as

fo

r 31

Dec

embe

r 201

3, in

the

abse

nce

of a

ny in

spec

tion

by th

e C

omm

issi

on d

urin

g 20

14:

49

1.- P

roce

ssin

g of

the

spec

ial V

AT

sche

me

for t

rave

l age

nts.

Res

erva

tion

cove

ring

year

s 200

3-20

11. F

ollo

win

g Eu

rope

an C

ourt

of Ju

stic

e ju

dgm

ent o

f 26

Sept

embe

r 201

3, S

pain

subm

itted

com

preh

ensi

ve c

alcu

latio

ns fo

r 20

03-2

013

and

in li

ne w

ith th

is ju

dgm

ent,

toge

ther

with

the

2013

VA

T ba

se, i

n Ju

ly 2

014.

The

Com

mis

sion

ha

s not

exp

ress

ed a

ny o

pini

on o

n th

e ca

lcul

atio

ns su

bmitt

ed in

201

4, n

or h

as it

ent

ered

them

into

its 2

014

finan

cial

dat

abas

e, e

xcep

t in

the

case

of 2

013.

Nei

ther

did

it re

-eva

luat

e th

is re

serv

atio

n in

201

4. D

urin

g th

e co

ntro

l vis

it of

Mar

ch 2

015,

the

Com

mis

sion

cam

e to

an

agre

emen

t with

Spa

in o

ver a

met

hodo

logi

cal

impr

ovem

ent i

n th

e ca

lcul

atio

ns su

bmitt

ed b

y Sp

ain

to b

ring

them

mor

e in

to li

ne w

ith th

e C

ourt’

s rul

ing

and

has w

ithdr

awn

this

rese

rvat

ion.

Sin

ce Ja

nuar

y 20

15 th

e sp

ecia

l VA

T sc

hem

e fo

r tra

vel a

gent

s ha

s bee

n br

ough

t int

o lin

e w

ith th

e V

AT

Dire

ctiv

e, in

acc

orda

nce

with

the

Cou

rt of

Just

ice

judg

men

t. 2.

- VA

T ex

empt

ion

for s

ervi

ces p

rovi

ded

by p

ublic

not

arie

s with

rega

rd to

cer

tain

fina

ncia

l tra

nsac

tions

. R

eser

vatio

n co

verin

g ye

ars 2

008-

2011

. Spa

in in

clud

ed a

cal

cula

tion

of a

com

pens

atio

n fo

r the

yea

rs c

over

ed

by th

e re

serv

atio

n in

a re

port

on it

s fin

ding

s sen

t to

the

Com

mis

sion

on

8 Ju

ly 2

013,

in re

ply

to th

e C

omm

issi

on’s

con

trol r

epor

t of 2

012;

this

com

pens

atio

n w

as a

lso

incl

uded

in th

e ca

lcul

atio

n of

the

2013

VA

T ba

se. T

he C

omm

issi

on e

nter

ed th

ese

amou

nts i

nto

its fi

nanc

ial d

atab

ase

but u

phel

d th

e re

serv

atio

n to

allo

w

verif

icat

ion

of th

e su

ppor

ting

docu

men

ts. D

urin

g 20

14, t

he C

omm

issi

on h

as n

ot e

xpre

ssed

an

opin

ion

on th

ese

calc

ulat

ions

or r

eass

esse

d th

is re

serv

atio

n. D

urin

g th

e co

ntro

l vis

it of

Mar

ch 2

015,

the

Com

mis

sion

cam

e to

an

agre

emen

t with

Spa

in o

ver a

met

hodo

logi

cal i

mpr

ovem

ent i

n so

me

of th

e ca

lcul

atio

n el

emen

ts a

nd h

as

with

draw

n th

is re

serv

atio

n. S

pani

sh V

AT

Law

abo

lishe

d th

is e

xem

ptio

n in

Janu

ary

2015

. Sw

eden

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

com

men

t doe

s not

requ

ire S

wed

en to

take

act

ion.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

The

UK

had

12

GN

I res

erva

tions

at t

he e

nd o

f 201

4. T

he C

omm

issi

on n

otifi

ed u

s tha

t the

y ha

d lif

ted

11 o

f th

ese

durin

g th

e co

urse

of 2

015.

The

UK

con

tinue

s to

coop

erat

e an

d en

gage

with

the

Com

mis

sion

to a

ddre

ss

the

outs

tand

ing

rese

rvat

ion.

R

egar

ding

the

UK

VA

T re

serv

atio

ns, i

n ea

ch c

ase

the

UK

has

bee

n w

orki

ng c

lose

ly w

ith th

e C

omm

issi

on to

re

solv

e th

e is

sues

iden

tifie

d. A

ctio

ns ta

ken

incl

ude

the

prov

isio

n of

add

ition

al in

form

atio

n to

ena

ble

liftin

g of

th

e re

serv

atio

n an

d th

e ev

alua

tion

of u

nder

lyin

g as

sum

ptio

ns a

nd d

ata

sour

ces.

Reg

ardi

ng th

e TO

R O

pen

Poin

ts, t

he U

K a

ccep

t tha

t a n

umbe

r of p

oint

s rem

ain

outs

tand

ing

from

pre

viou

s ins

pect

ions

. The

UK

are

co

mm

itted

to re

solv

ing

them

and

rem

ain

in re

gula

r cor

resp

onde

nce

with

the

Com

mis

sion

via

the

usua

l ch

anne

ls.

50

CH

APT

ER

5 –

‘Com

petit

iven

ess f

or g

row

th a

nd jo

bs’

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

Box

5.3

. Ex

ampl

es o

f err

ors i

n co

sts

reim

burs

ed fo

r pro

ject

s in

othe

r pro

gram

mes

und

er

‘Com

petit

iven

ess f

or g

row

th

and

jobs

Gre

ece:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Th

is d

oes n

ot in

volv

e pr

ojec

ts c

o-fin

ance

d by

Stru

ctur

al F

unds

and

we

do n

ot h

ave

the

data

. It

aly:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

: Sw

eden

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

conc

erns

dire

ct m

anag

emen

t by

the

Com

mis

sion

. Sw

eden

has

not

rece

ived

any

furth

er

info

rmat

ion

abou

t the

subs

tanc

e of

the

audi

t and

can

not c

omm

ent o

n it.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

UK

is o

ne o

f fou

r cou

ntrie

s the

EC

A h

as u

sed

as a

cas

e st

udy

to il

lust

rate

the

issu

es w

ith E

U p

roje

cts t

hat

invo

lve

cost

reim

burs

emen

ts. T

he E

CA

has

not

iden

tifie

d th

e pr

ojec

t ref

erre

d to

her

e

51

CH

APT

ER

6 –

Em

ploy

men

t and

soci

al a

ffia

rs

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

6.5.

Reg

iona

l and

urb

an p

olic

y ar

ea

Gre

ece:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Pola

nd:a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

note

doe

s not

con

tain

alle

gatio

ns a

gain

st P

olan

d

Rom

ania

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

MEF

– N

/A

Slov

akia

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

In o

ur o

pini

on, t

he te

xt c

onve

ys th

e st

ate

of p

lay.

Spai

n:ac

tion

take

n: N

o ; a

ctio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

No

obse

rvat

ions

6.6.

The

CF

finan

ces i

nves

tmen

ts

in in

fras

truct

ure

in th

e fie

lds

of e

nviro

nmen

t and

tran

spor

t

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cro

atia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

9/09

/201

5

The

oper

atio

nal p

rogr

amm

e "C

ompe

titiv

enes

s and

Coh

esio

n" w

ithin

the

Obj

ectiv

e "I

nves

tmen

t in

Gro

wth

and

Em

ploy

men

t", i

s fin

ance

d by

the

ERD

F an

d C

F. C

F fu

nds f

or th

e pr

ogra

mm

e am

ount

to E

UR

2.5

bill

ion.

The

se

lect

ed C

F in

vest

men

t prio

ritie

s are

: 6i -

inve

stin

g in

the

was

te se

ctor

to m

eet t

he re

quire

men

ts o

f the

Uni

on's

envi

ronm

enta

l acq

uis a

nd to

add

ress

the

need

s ide

ntifi

ed b

y th

e M

embe

r Sta

tes f

or in

vest

men

t th

at g

oes

beyo

nd th

ose

requ

irem

ents

; 6ii

- inv

estin

g in

the

wat

er se

ctor

to m

eet t

he re

quire

men

ts o

f the

Uni

on's

envi

ronm

enta

l acq

uis a

nd to

add

ress

the

need

s ide

ntifi

ed b

y th

e M

embe

r Sta

tes f

or in

vest

men

t tha

t goe

s be

yond

thos

e re

quire

men

ts; 6

iii -

prot

ectin

g an

d re

stor

ing

biod

iver

sity

and

soil

and

prom

otin

g ec

osys

tem

se

rvic

es, i

nclu

ding

thro

ugh

Nat

ura

2000

, and

gre

en in

fras

truct

ure;

7i -

supp

ortin

g a

mul

timod

al S

ingl

e

52

Euro

pean

Tra

nspo

rt A

rea

by in

vest

ing

in th

e TE

N-T

; 7ii

- dev

elop

ing

and

impr

ovin

g en

viro

nmen

tally

-frie

ndly

(in

clud

ing

low

-noi

se) a

nd lo

wca

rbon

tran

spor

t sys

tem

s, in

clud

ing

inla

nd w

ater

way

s and

mar

itim

e tra

nspo

rt,

ports

, mul

timod

al li

nks a

nd a

irpor

t inf

rast

ruct

ure,

in o

rder

to p

rom

ote

sust

aina

ble

regi

onal

and

loca

l m

obili

ty;

7iii

- dev

elop

ing

and

reha

bilit

atin

g co

mpr

ehen

sive

, hig

h qu

ality

and

inte

rope

rabl

e ra

ilway

syst

ems,

and

prom

otin

g no

ise

redu

ctio

n m

easu

res.

The

Act

est

ablis

hing

an

Inst

itutio

nal F

ram

ewor

k fo

r Im

plem

enta

tion

of

Euro

pean

Stru

ctur

al F

unds

and

Inve

stm

ent F

unds

in C

roat

ia d

urin

g th

e fin

anci

al p

erio

d 20

14-2

020

Nar

odne

N

ovin

e (N

N; O

ffic

ial G

azet

te o

f the

Rep

ublic

of C

roat

ia) N

o 92

/14

sets

dow

n th

e in

stitu

tiona

l fra

mew

ork

for

the

man

agem

ent a

nd im

plem

enta

tion

of E

urop

ean

stru

ctur

al fu

nds a

nd in

vest

men

t fun

ds in

Cro

atia

dur

ing

the

finan

cial

per

iod

2014

-202

0 an

d na

mes

the

inst

itutio

ns th

at c

arry

on

the

rem

it of

the

Coo

rdin

atin

g B

ody

for

man

agin

g ES

I fun

ds a

nd th

e In

depe

nden

t Aud

it B

ody,

as w

ell a

s the

ir fu

nctio

ns a

nd re

spon

sibi

litie

s. Fu

rther

mor

e, p

ursu

ant t

o th

e sa

id la

w a

dec

ree

was

ado

pted

on

the

bodi

es in

the

syst

ems o

f man

agem

ent a

nd

cont

rol o

f the

use

of t

he E

urop

ean

Soci

al F

und,

the

Euro

pean

Reg

iona

l Dev

elop

men

t Fun

d an

d th

e C

ohes

ion

Fund

in c

onne

ctio

n w

ith th

e go

al o

f 'In

vest

men

t for

Gro

wth

and

Jobs

' (N

N N

os 1

07/1

4, 2

3/15

and

129

/201

5).

The

said

dec

ree

lays

dow

n th

e in

stitu

tions

that

act

as t

he b

odie

s in

the

Syst

ems o

f man

agem

ent a

nd c

ontro

l of

the

use

of th

e Eu

rope

an so

cial

Fun

d, th

e Eu

rope

an R

egio

nal D

evel

opm

ent F

und

and

the

Coh

esio

n Fu

nd,

prov

idin

g de

tails

of t

heir

func

tions

, tas

ks a

nd re

spon

sibi

litie

s, or

in o

ther

wor

ds, t

he sa

id d

ecre

e st

ipul

ates

the

auth

oriti

es re

spon

sibl

e fo

r the

fore

goin

g in

vest

men

t prio

ritie

s. Fu

rther

mor

e, o

n 29

Sep

tem

ber 2

015

the

Mon

itorin

g C

omm

ittee

app

rove

d th

e se

lect

ion

crite

ria fo

r the

sele

ctio

n of

ope

ratio

ns fo

r cer

tain

spec

ific

obje

ctiv

es w

ithin

thes

e pr

iorit

y in

vest

men

ts th

at a

re th

e ba

sis f

or th

e pr

epar

atio

n an

d pu

blic

atio

n of

cal

ls fo

r gr

ant a

pplic

atio

ns.

Cyp

rus:

actio

n ta

ken:

NO

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Res

ourc

es w

ere

prov

ided

from

the

Coh

esio

n Fu

nd in

the

fram

ewor

k of

the

Ope

ratio

nal P

rogr

amm

e C

ompe

titiv

enes

s and

Sus

tain

able

Dev

elop

men

t 201

4-20

20.

Cze

ch R

epub

lic: a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Irre

leva

nt –

ther

e is

no

erro

r inv

olve

d.

Est

onia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Hun

gary

:act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

53

Fact

ual f

indi

ng, n

o ac

tion

requ

ired.

Lat

via:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 11

Nov

embe

r 201

4

Und

er th

e ap

prov

ed L

atvi

an o

pera

tiona

l pro

gram

me

Gro

wth

and

Em

ploy

men

t, fin

anci

ng is

pro

vide

d to

the

area

s ref

erre

d to

in b

oth

para

grap

hs 6

.5 a

nd 6

.6.

Lith

uani

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Mal

ta:a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

This

is a

stat

e of

aff

airs

that

doe

s not

war

rant

taki

ng a

ny a

ctio

n.

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

Slov

enia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Slov

enia

is o

nly

men

tione

d as

one

of t

he M

embe

r Sta

tes i

n w

hich

the

Coh

esio

n Fu

nd fi

nanc

es in

vest

men

ts in

in

fras

truct

ure

in th

e ar

eas o

f the

env

ironm

ent a

nd tr

ansp

ort.

6.7.

Reg

iona

l and

urb

an p

olic

y ar

ea; O

ther

spen

ding

E

ston

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

:

6.21

.A

udit

scop

e an

d ap

proa

ch

invo

lvin

g an

exa

min

atio

n of

tra

nsac

tions

for r

egio

nal a

nd

urba

n po

licy

area

and

for

empl

oym

ent a

nd so

cial

af

fairs

pol

icy

area

Aus

tria

:act

ion

take

n: N

o ; a

ctio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Bel

gium

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cze

ch R

epub

lic: a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Irre

leva

nt –

ther

e is

no

erro

r inv

olve

d.

Finl

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: 21.

12.2

015

Som

e of

the

reco

verie

s hav

e be

en c

arrie

d ou

t; th

e m

ost r

ecen

t due

dat

e w

as 2

1 D

ecem

ber 2

015.

Fran

ce:a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

54

Cf.

répo

nses

infr

a et

dan

s l’a

nnex

e 2

Ger

man

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

For i

nfor

mat

ion

only

; no

repl

y re

quire

d.

Gre

ece:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

Hun

gary

:act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Fact

ual f

indi

ng, n

o ac

tion

requ

ired.

Ital

y:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Lat

via:

actio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

No

com

men

t, as

this

is a

fact

ual f

indi

ng re

latin

g to

the

scop

e an

d ap

proa

ch o

f the

aud

it.

Lith

uani

a:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Det

aile

d in

form

atio

n is

giv

en w

hen

listin

g sp

ecifi

c au

dit f

indi

ngs i

n A

nnex

II.

Mal

ta:a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

This

sect

ion

pres

ents

stat

es o

f aff

airs

but

not

resu

lts. T

here

is th

eref

ore

no sc

ope

for t

akin

g ac

tion.

Net

herl

ands

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Not

app

licab

le

Pola

nd:a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

note

doe

s not

con

tain

alle

gatio

ns a

gain

st P

olan

d

Port

ugal

:act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

Rom

ania

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

MEF

– N

/A

55

Slov

akia

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

In o

ur o

pini

on, t

he te

xt c

onve

ys th

e st

ate

of p

lay.

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

No

obse

rvat

ions

Swed

en: a

ctio

n ta

ken:

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

This

com

men

t doe

s not

requ

ire S

wed

en to

take

act

ion.

Uni

ted

Kin

gdom

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

N/a

– n

o ac

tion

requ

ired.

6.35

.N

on-c

ompl

ianc

e w

ith p

ublic

pr

ocur

emen

t rul

es

Cze

ch R

epub

lic: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n-

The

actio

n w

as ta

ken

prio

r to

the

ECA

aud

it, n

ot o

n th

e ba

sis o

f its

find

ings

.

This

is a

n on

goin

g ac

tion

that

is b

eing

impl

emen

ted

cont

inuo

usly

.

It is

exp

ecte

d to

com

e to

an

end

toge

ther

with

the

win

ding

-up

of th

e O

pera

tiona

l Pro

gram

me

Res

earc

h an

d D

evel

opm

ent f

or In

nova

tion.

As f

ar a

s the

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n is

con

cern

ed, t

he E

CA

aud

it fo

und

a si

ngle

pub

lic p

rocu

rem

ent s

hortc

omin

g, w

hich

was

iden

tifie

d in

the

awar

d of

a si

ngle

pub

lic c

ontra

ct

and

had

no b

earin

g on

the

sele

ctio

n of

the

cont

ract

or. N

ow th

at ti

me

has p

asse

d, th

is sh

ortc

omin

g ca

nnot

be

corr

ecte

d. In

thei

r pro

visi

onal

find

ings

, the

aud

itors

them

selv

es m

ake

the

follo

win

g ob

serv

atio

n on

this

sh

ortc

omin

g: ‘A

s the

find

ing

has n

o im

pact

on

the

outc

ome

of p

rocu

rem

ent,

this

obs

erva

tion

has n

o di

rect

fin

anci

al im

pact

and

is c

lass

ified

am

ong

othe

r com

plia

nce

issu

es’.

Gen

eral

ly sp

eaki

ng, w

e vi

ew p

ublic

pro

cure

men

t err

ors a

s a c

ritic

al ri

sk to

the

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n, a

nd w

e ar

e pa

ying

app

ropr

iate

atte

ntio

n to

this

mat

ter.

A p

ublic

pr

ocur

emen

t rev

iew

syst

em h

as b

een

intro

duce

d, e

ncom

pass

ing

chec

ks o

n pu

blic

con

tract

s prio

r to

notif

icat

ion,

10

0 %

che

cks o

n pu

blic

con

tract

s bef

ore

they

are

pai

d, c

heck

s on

publ

ic c

ontra

cts d

urin

g on

-the-

spot

che

cks,

56

and

the

perio

dic

exte

rnal

and

inte

rnal

trai

ning

of i

nspe

ctor

s foc

usin

g on

the

deci

sion

-mak

ing

prac

tices

of t

he

cour

ts a

nd o

ther

insp

ectio

n bo

dies

. Che

cks a

re c

ondu

cted

by

law

yers

spec

ialis

ing

in p

ublic

pro

cure

men

t. G

rant

ees r

egul

arly

rece

ive

the

info

rmat

ion

they

nee

d on

line,

dur

ing

train

ing

held

on

the

Ope

ratio

nal

Prog

ram

me

Res

earc

h an

d D

evel

opm

ent f

or In

nova

tion,

in in

divi

dual

con

sulta

tions

, and

in th

e fo

rm o

f m

etho

dolo

gica

l ass

ista

nce.

As f

or th

e ef

fect

iven

ess o

f the

revi

ew sy

stem

we

have

intro

duce

d, w

e qu

ote

from

th

e A

udit

Con

clus

ion

issu

ed b

y th

e Su

prem

e A

udit

Off

ice

as p

art o

f its

Aud

it 14

/22

– Fi

nanc

ial r

esou

rces

in

tend

ed fo

r hig

her e

duca

tion

teac

hing

infr

astru

ctur

e:

‘The

Min

istry

of E

duca

tion,

You

th a

nd S

ports

has

als

o co

nduc

ted

thor

ough

insp

ectio

ns o

f doc

umen

tatio

n on

th

e pr

ocur

emen

t pro

cedu

re h

eld

by a

id b

enef

icia

ries.

The

rule

s est

ablis

hed

for t

he se

lect

ion

of su

pplie

rs

incl

uded

a d

etai

led

desc

riptio

n of

the

proc

edur

e an

d re

quire

men

ts re

latin

g, a

mon

g ot

her t

hing

s, to

the

prep

arat

ion

and

perf

orm

ance

of p

ublic

con

tract

s, in

clud

ing

chec

ks, d

ocum

enta

tion

on c

ontra

cts,

proc

edur

es in

sp

ecifi

c ca

ses,

smal

l-sca

le c

ontra

ctin

g, e

tc. I

n ce

rtain

cas

es, t

he ru

les w

ere

mor

e st

ringe

nt th

an th

e pr

ovis

ions

la

id d

own

in th

e Pu

blic

Pro

cure

men

t Act

. The

Min

istry

pro

ceed

ed in

acc

orda

nce

with

the

oper

atin

g m

anua

l, w

hich

des

crib

ed in

gre

at d

etai

l the

met

hod

for –

and

cou

rse

of –

che

cks o

n pu

blic

con

tract

s, th

e en

titie

s ca

rryi

ng o

ut th

e ch

ecks

, the

ir lin

ks, d

eadl

ines

, sam

plin

g, w

orki

ng p

roce

dure

s, an

d pr

oced

ures

for h

andl

ing

the

shor

tcom

ings

iden

tifie

d. T

he sh

ortc

omin

gs id

entif

ied

in th

e pr

epar

atio

n, a

war

d an

d pe

rfor

man

ce o

f pub

lic

cont

ract

s wer

e al

so p

art o

f the

pro

ject

risk

ana

lysi

s.

The

outc

ome

of th

e Su

prem

e A

udit

Off

ice’

s aud

it al

so c

onfir

med

that

the

Min

istry

’s re

view

syst

em fo

r Prio

rity

Axi

s 4 w

as su

ffic

ient

ly e

ffec

tive.

Am

ong

seve

n ai

d be

nefic

iarie

s, in

the

field

of p

rocu

rem

ent t

he O

ffic

e id

entif

ied

only

form

al e

rror

s or e

rror

s with

no

impa

ct o

n th

e co

urse

of t

he se

lect

ion

proc

edur

e.’

Ope

ratio

nal P

rogr

amm

e Ed

ucat

ion

for C

ompe

titiv

enes

s-

In re

latio

n to

aud

ited

proj

ects

und

er th

e O

pera

tiona

l Pro

gram

me

Educ

atio

n fo

r Com

petit

iven

ess,

the

ECA

aud

it id

entif

ied

no fi

ndin

gs c

onst

itutin

g an

err

or in

the

awar

d of

pub

lic c

ontra

cts.

Ope

ratio

nal P

rogr

amm

e Pr

ague

– C

ompe

titiv

enes

s-

57

The

man

agin

g au

thor

ity o

f the

Ope

ratio

nal P

rogr

amm

e Pr

ague

– C

ompe

titiv

enes

s doe

s not

agr

ee w

ith th

e fin

ding

and

has

file

d an

obj

ectio

n to

it.

Hun

gary

:act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Fact

ual f

indi

ng, n

o ac

tion

requ

ired.

Port

ugal

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

As n

oted

in th

e EC

A A

nnua

l Rep

ort,

at th

e tim

e of

the

audi

ts, n

atio

nal a

utho

ritie

s had

alre

ady

iden

tifie

d th

e ca

ses o

f non

-com

plia

nce

and

had

alre

ady

impo

sed

the

nece

ssar

y fin

anci

al c

orre

ctio

ns.

Slov

akia

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

Min

istry

of E

duca

tion,

Sci

ence

, Res

earc

h an

d Sp

ort,

by w

ay o

f a le

tter o

f 19

Mar

ch 2

015,

refe

renc

e nu

mbe

r 201

5-42

18/1

4077

:2-3

5AA

, sen

t the

Sup

rem

e A

udit

Off

ice

obse

rvat

ions

on,

am

ong

othe

r thi

ngs,

Prov

isio

nal F

indi

ng 2

517-

41 c

once

rnin

g ov

erly

spec

ific

sele

ctio

n cr

iteria

in p

ublic

pro

cure

men

t pro

cedu

re; a

25

% c

orre

ctio

n ha

d be

en a

pplie

d to

the

proc

urem

ent o

f Pro

ject

261

1013

0083

281,

ent

itled

‘Mod

erni

satio

n of

th

e ed

ucat

ion

proc

ess a

t the

ben

efic

iary

’s p

rimar

y sc

hool

s, Sl

ovak

Cen

tre o

f Sci

entif

ic a

nd T

echn

ical

In

form

atio

n’, b

efor

e th

e au

dit w

as c

ondu

cted

. Thi

s pub

lic p

rocu

rem

ent w

as th

e su

bjec

t of t

he 2

012

Gov

ernm

ent A

udit

A 4

50 K

2855

. As t

his f

indi

ng h

ad a

lread

y be

en re

med

ied

by th

e ap

plic

atio

n of

a 2

5 %

co

rrec

tion

to a

ll co

ntra

ct-r

elat

ed c

osts

, the

EC

A’s

aud

it te

am st

ated

that

the

findi

ng h

ad n

o fin

anci

al

impl

icat

ions

. The

find

ing

was

iden

tifie

d in

the

repo

rt: A

udit

of th

e le

galit

y an

d re

gula

rity

of p

aym

ents

und

er

cohe

sion

pol

icy,

task

: 14E

SDD

AS,

Ope

ratio

nal P

rogr

amm

e 20

07SK

05U

PO00

1 Ed

ucat

ion.

6.36

.In

elig

ible

exp

endi

ture

R

oman

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

6.36

and

6.3

7 —

MEF

- In

the

cour

se o

f 201

5 D

G H

CP

has t

aken

the

follo

win

g m

easu

res t

o op

timis

e th

e m

anag

emen

t che

cks:

-The

revi

sion

of t

he F

inan

cial

Man

agem

ent P

roce

dure

, in

parti

cula

r the

spec

ific

subs

ectio

ns, w

ith a

vie

w to

de

velo

ping

a v

erifi

catio

n in

stru

men

t for

the

exis

tenc

e of

ove

rlapp

ing

dutie

s/re

spon

sibi

litie

s for

item

s

budg

eted

in th

e pr

ojec

t, w

here

the

refe

renc

e do

cum

ents

dev

elop

ed b

y ea

ch e

xper

t in

the

proj

ect w

ere

the

58

activ

ity re

ports

;

-Ins

truct

ion

No

103

on th

e re

gula

tion

of m

atte

rs re

latin

g to

the

mon

itorin

g pr

oces

s for

impl

emen

ting

SOPH

RD

fina

ncin

g co

ntra

cts.

-Dev

elop

men

t of t

he V

erifi

catio

n m

etho

dolo

gy fo

r mul

tiple

pro

ject

s

6.39

.In

frin

gem

ents

of s

tate

aid

ru

les

Bel

gium

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

L’A

utor

ité d

’aud

it a

étab

li de

s lis

tes d

e vé

rific

atio

n po

ur le

s aid

es d

’Eta

t, ad

apté

es à

cha

que

prog

ram

me

opér

atio

nnel

.

Parm

i les

554

pro

jets

aud

ités e

ntre

201

0 et

201

4, se

uls 1

6 ét

aien

t sou

mis

aux

règl

es e

n m

atiè

re d

’aid

es d

’Eta

t. A

ucun

d’e

ntre

eux

n’a

été

aff

ecté

par

une

err

eur c

once

rnan

t les

aid

es d

’Eta

t.

Au

trave

rs d

e l’a

udit

de sy

stèm

e tra

nsve

rsal

réal

isé

en 2

010

(cod

ifié

FED

ER07

), l’A

utor

ité d

’aud

it a

pu o

bten

ir un

e as

sura

nce

rais

onna

ble

quan

t au

resp

ect d

e la

régl

emen

tatio

n «

Aid

es d

’Eta

t » e

n R

égio

n w

allo

nne

et a

u se

in

des o

rgan

ism

es in

term

édia

ires a

insi

que

sur l

e ca

ract

ère

adéq

uat d

es v

érifi

catio

ns o

péré

es p

ar c

es e

ntité

s. Le

sy

stèm

e m

ise

en œ

uvre

par

l’A

utor

ité d

e ge

stio

n de

s pro

gram

mes

peu

t être

con

sidé

ré c

omm

e pr

ocur

ant u

ne

assu

ranc

e su

ffis

ante

de

sa c

apac

ité à

resp

ecte

r les

règl

es c

omm

unau

taire

s édi

ctée

s et l

es p

rocé

dure

s déf

inie

s da

ns le

des

crip

tif d

e ge

stio

n et

de

cont

rôle

du

prog

ram

me.

Le

fonc

tionn

emen

t est

con

sidé

ré c

omm

e bo

n, se

ules

de

s am

élio

ratio

ns m

ineu

res s

ont n

éces

saire

s.

En 2

015,

l’A

utor

ité d

’aud

it a

effe

ctué

un

audi

t de

syst

ème

porta

nt su

r les

exi

genc

es c

lés n

°1,4

,5 e

t 7 d

e l’A

utor

ité d

e G

estio

n po

ur c

e qu

i con

cern

e la

Dire

ctio

n gé

néra

le o

péra

tionn

elle

de

l’Eco

nom

ie, d

e l’E

mpl

oi e

t de

la R

eche

rche

(DG

O6)

, et p

lus p

artic

uliè

rem

ent p

our l

es p

roje

ts re

leva

nt d

e la

mes

ure

2.2

(val

oris

atio

n du

po

tent

iel d

es c

entre

s de

rech

erch

e) (F

EDER

17).

La C

AIF

renv

oie

au p

lan

d’ac

tion

et à

son

suiv

i de

déce

mbr

e 20

15 p

our o

bten

ir to

ut e

lem

ent d

’info

rmat

ion

perm

etta

nt d

’obt

enir

l’ass

uran

ce q

ue la

règl

emen

tatio

n re

lativ

e au

x ai

des d

’Eta

ts e

st re

spec

tée

par l

es e

ntité

s sou

s aud

it. E

nfin

, l’A

utor

ité d

’aud

it a

parti

cipé

par

aill

eurs

au

ques

tionn

aire

de

la C

our d

es c

ompt

es e

urop

éenn

es p

our c

e qu

i con

cern

e la

per

form

ance

en

mat

ière

d’a

ides

d’

Etat

en

2015

.

Cze

ch R

epub

lic: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: ;

Com

plet

ion

date

:

59

-Fro

m th

e po

int o

f vie

w o

f the

gen

eral

ex

ante

con

ditio

nalit

y ap

plic

able

to P

ublic

Aid

for E

SI fu

nds,

actio

n ha

s be

en ta

ken

in th

e fo

rm o

f an

Act

ion

Plan

to c

ompl

y w

ith g

ener

al e

x an

te c

ondi

tiona

lity

5 –

Publ

ic a

id fo

r the

ef

fect

ive

appl

icat

ion

of E

U le

gisl

atio

n re

latin

g to

pub

lic a

id in

the

field

of E

SI fu

nds.

A p

ublic

aid

wor

king

pa

rty h

as a

lso

been

est

ablis

hed,

whi

ch m

eets

and

wor

ks o

n an

ong

oing

bas

is. I

ts m

embe

rs a

re m

anag

ing

auth

oriti

es, a

nd it

s mee

tings

dis

cuss

and

subs

eque

ntly

elim

inat

e an

y ris

ks.

-MA

-rel

ated

aid

in th

e C

zech

Rep

ublic

is c

entra

lly re

cord

ed b

y th

e fo

llow

ing

bodi

es: t

he M

inis

try o

f A

gric

ultu

re (a

id in

the

real

ms o

f agr

icul

ture

, fis

herie

s and

fore

stry

) and

the

Off

ice

for t

he P

rote

ctio

n of

C

ompe

titio

n (o

ther

type

s of a

id).

Thes

e co

ordi

natin

g bo

dies

are

resp

onsi

ble

for h

oldi

ng n

egot

iatio

ns w

ith th

e C

omm

issi

on in

con

tent

ious

pub

lic a

id c

ases

.

Ger

man

y:ac

tion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

See

the

repl

ies i

n A

nnex

II re

gard

ing

the

audi

ts in

que

stio

n.

Mal

ta:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

At p

rese

nt, i

n th

e ca

se re

ferr

ed to

with

rega

rd to

Mal

ta, t

he P

lann

ing

and

Prio

ritie

s Coo

rdin

atio

n D

ivis

ion

(PPC

D) i

s stil

l at t

he st

age

of re

ceiv

ing

a fo

rmal

lette

r fro

m th

e Eu

rope

an C

omm

issi

on. C

onse

quen

tly, t

he d

ate

of c

ompl

etio

n is

not

yet

kno

wn.

Mal

ta w

ill p

rovi

de fu

ll ex

plan

atio

ns to

the

Euro

pean

Com

mis

sion

as s

oon

as it

re

ceiv

es th

e ab

ovem

entio

ned

form

al le

tter f

rom

the

Com

mis

sion

.

Pola

nd:a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

:

MA

I &

E O

P (C

F/ER

DF)

dis

pute

s the

Cou

rt of

Aud

itors

’ fin

ding

s on

the

audi

ted

I & E

OP

proj

ects

(alle

ged

non-

com

plia

nce

with

the

stat

e ai

d ru

les)

. Det

aile

d ex

plan

atio

ns a

re se

t out

in M

A I

& E

OP’

s pos

ition

on

indi

vidu

al D

AS

2014

aud

its (s

ee re

plie

s in

Ann

ex II

).

Rom

ania

:act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

MEF

- Bas

ed o

n th

e co

mm

ents

/reco

mm

enda

tions

in th

e EC

A R

epor

t, M

ASO

PIEC

(DG

FP)

will

reco

ver t

he

amou

nts d

ecla

red

inel

igib

le u

nder

Gov

ernm

ent E

mer

genc

y O

rder

No

66/2

011.

Spai

n:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

One

of t

he p

roje

cts a

udite

d by

the

Cou

rt un

der D

AS

2014

was

'Inv

estm

ents

for m

anuf

actu

ring

the

new

veh

icle

60

mod

el C

520

— F

ord

Espa

ña S

.L. (

code

V 1

239P

12)

— A

lmus

safe

s — V

alen

cia'.

The

est

ablis

hmen

t was

ca

tego

rised

in th

e in

terim

repo

rt as

'Oth

er c

ompl

ianc

e is

sue

– di

scre

panc

y in

the

perc

enta

ge o

f aid

inte

nsity

'.

With

rega

rd to

this

find

ing,

we

wou

ld p

oint

out

that

the

Euro

pean

Com

mis

sion

Dec

isio

n in

dica

tes b

oth

the

net

perc

enta

ge (1

6 %

) and

the

upda

ted

perc

enta

ge (1

5.6

%).

Whi

le th

e ne

t per

cent

age

rem

ains

unc

hang

ed, t

he u

pdat

ed p

erce

ntag

e ch

ange

s acc

ordi

ng to

the

perio

d in

whi

ch

the

inve

stm

ents

are

mad

e an

d th

e su

bsid

ies a

re p

aid.

In th

e ca

se in

han

d, th

e in

vest

men

ts w

ere

plan

ned

over

tw

o ye

ars w

hen

the

notif

icat

ion

was

mad

e to

the

Euro

pean

Com

mis

sion

and

the

upda

ted

subs

idy

was

ther

efor

e 15

.6 %

.

The

unde

rtaki

ng re

ques

ted

vario

us a

men

dmen

ts w

hich

wer

e ag

reed

to a

nd in

vest

men

ts w

ere

mad

e ov

er fo

ur

year

s, m

akin

g th

e re

sulti

ng u

pdat

ed su

bsid

y (1

5.8

%) s

light

ly la

rger

in p

erce

ntag

e te

rms t

han

the

initi

al

subs

idy,

alth

ough

the

gros

s sub

sidy

rem

aine

d 16

% a

t all

times

and

the

final

am

ount

pai

d (g

ross

am

ount

EU

R

24 3

34 0

03, w

hich

is E

UR

22

786

298

in u

pdat

ed te

rms)

was

less

than

the

amou

nt in

itial

ly a

ppro

ved

in b

oth

gros

s ter

ms (

EUR

24

800

000)

and

upd

ated

term

s (EU

R 2

3 45

8 16

6).

Ther

efor

e th

ere

is n

o di

scre

panc

y. T

he C

ourt

note

d th

at th

e fin

al im

pact

for t

he E

RD

F is

low

. It c

lass

ified

the

findi

ng a

s 'ot

her c

ompl

ianc

e is

sue'

and

ackn

owle

dged

that

the

findi

ng h

ad n

o di

rect

fina

ncia

l im

pact

on

the

budg

et. I

t can

not t

here

fore

be

clai

med

that

Spa

in fa

iled

to c

ompl

y w

ith E

U S

tate

aid

legi

slat

ion.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

UK

pro

ject

refe

renc

ed h

ere

is n

ot id

entif

ied

by th

e EC

A so

it is

not

pos

sibl

e to

com

men

t on

the

natu

re o

f th

e er

rors

.

6.43

.B

enef

icia

ries n

ot re

imbu

rsed

in

tim

e an

d un

just

ified

pa

ymen

t of a

dvan

ces t

o a

Mem

ber S

tate

Gre

ece:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 09/

09/2

015

Rem

oval

of a

ctio

ns a

s Sta

te a

id fr

om th

e op

erat

iona

l pro

gram

me

(Gov

ernm

ent G

azet

te, S

erie

s II,

No

1948

/201

5).

6.47

.Fi

nanc

ial I

nstru

men

ts fo

r de

liver

ing

EU fu

ndin

g C

roat

ia:a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: In

the

perio

d 20

07-2

013,

the

Rep

ublic

of C

roat

ia d

id n

ot u

se fi

nanc

ial i

nstru

men

ts d

ue to

the

fact

that

the

impl

emen

tatio

n of

ER

DF-

fund

ed p

rogr

amm

es c

omm

ence

d on

ly in

July

201

3, fo

llow

ing

the

acce

ssio

n to

the

61

EU. T

he E

urop

ean

Com

mis

sion

app

rove

d th

e op

erat

iona

l pro

gram

me

on 5

Sep

tem

ber 2

013,

thus

setti

ng in

m

otio

n th

e ac

tion

take

n to

est

ablis

h a

syst

em fo

r the

use

of f

inan

cial

inst

rum

ents

in th

e R

epub

lic o

f Cro

atia

. Pr

epar

atio

ns fo

r the

use

of f

inan

cial

inst

rum

ents

in th

e pe

riod

2014

-202

0 be

gan

in 2

014

and

impl

emen

tatio

n is

ex

pect

ed to

com

men

ce in

201

6.

Irel

and:

actio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 30/

06/2

014

We

appr

ecia

te th

e in

crea

sing

em

phas

is o

n Fi

nanc

ial I

nstru

men

ts fo

r del

iver

ing

EU fu

ndin

g ac

ross

EU

fund

ing

lines

and

we

are

enga

ged

in e

xam

inin

g op

portu

nitie

s acr

oss a

ll re

leva

nt se

ctor

s. A

s par

t of o

ur p

repa

ratio

ns fo

r the

201

4-20

20 p

rogr

amm

ing

perio

d, Ir

elan

d w

orke

d w

ith th

e EI

B to

iden

tify

prog

ram

mes

suita

ble

for f

inan

cial

inst

rum

ents

. Pot

entia

lly c

o-fin

anci

ng a

n en

ergy

eff

icie

ncy

fund

und

er T

O4

was

inve

stig

ated

by

Nat

iona

l Aut

horit

ies a

nd th

e D

epar

tmen

t of C

omm

unic

atio

ns, E

nerg

y an

d N

atur

al

Res

ourc

es. H

owev

er, i

t was

foun

d to

be

unsu

itabl

e du

e to

tim

ing

diff

eren

ces b

etw

een

fund

cre

atio

n an

d pr

ogra

mm

e ad

optio

n, a

nd th

e se

lect

ion

of a

fund

man

ager

. Th

e EI

B a

lso

carr

ied

out a

n in

vest

igat

ion

into

util

isin

g fin

anci

al in

stru

men

ts in

the

area

of s

ocia

l hou

sing

re

trofit

s and

con

clud

ed th

at g

rant

s wer

e th

e m

ost a

ppro

pria

te d

eliv

ery

mec

hani

sm. F

urth

er a

sses

smen

ts w

ere

carr

ied

out b

y ER

DF

Man

agin

g A

utho

ritie

s for

eac

h In

vest

men

t Prio

rity,

con

clud

ing

ther

e w

as n

o sc

ope

with

in

the

prop

osed

pro

gram

mes

at t

his t

ime,

but

this

will

be

kept

und

er re

view

. Th

e de

cisi

on w

as ta

ken

in F

ebru

ary

2015

not

to in

trodu

ce fi

nanc

ial i

nstru

men

ts in

the

ESF

HC

IOP,

but

they

m

ay b

e im

plem

ente

d at

a la

ter d

ate.

Fo

r the

EM

FF, I

rela

nd h

as e

xam

ined

the

usag

e of

Fin

anci

al In

stru

men

ts a

s par

t of t

he p

repa

ratio

n of

our

O

pera

tiona

l Pro

gram

me.

No

deci

sion

to u

se F

inan

cial

Inst

rum

ents

has

bee

n ta

ken

at th

is ti

me,

but

an

ex-a

nte

asse

ssm

ent i

n 20

16 w

ill e

xplo

re th

is o

ptio

n fu

rther

as r

equi

red

unde

r the

Com

mon

Pro

visi

ons R

egul

atio

n.

Lux

embo

urg:

actio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Le

mon

tant

de

l’env

elop

pe fi

nanc

ière

attr

ibué

e au

FED

ER n

e pe

rmet

pas

de

reco

urir

à de

s ins

trum

ents

fin

anci

ers e

n ra

ison

du

faib

le e

ffet

que

cel

a en

traîn

erai

t eu

égar

d no

tam

men

t aux

cha

rges

adm

inis

trativ

es q

ue

l’util

isat

ion

de c

e ty

pe d

’inst

rum

ents

ent

raîn

e.

6.49

.Sl

ow im

plem

enta

tion

of

Bul

gari

a:ac

tion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Ope

ratio

nal P

rogr

amm

e ‘R

egio

nal D

evel

opm

ent’

(OPR

D):

At p

rese

nt, a

s par

t of t

he JE

SSIC

A in

itiat

ive

in B

ulga

ria, t

he

62

finan

cial

inst

rum

ents

tw

o U

rban

Dev

elop

men

t Fun

ds in

vest

ing

in u

rban

dev

elop

men

t pro

ject

s hav

e m

ade

sign

ifica

nt p

rogr

ess.

The

Reg

iona

l U

rban

Dev

elop

men

t Fun

d A

D a

nd S

usta

inab

le U

rban

Dev

elop

men

t of S

ofia

Fun

d EA

D h

ave

sign

ed fi

nanc

ing

agre

emen

ts fo

r a to

tal o

f 32

urba

n de

velo

pmen

t pro

ject

s for

a to

tal o

f BG

N 1

90 m

illio

n, c

ompr

isin

g: B

GN

54.

2 m

illio

n fr

om th

e O

pera

tiona

l Pro

gram

me

‘Reg

iona

l Dev

elop

men

t’ 20

07-2

013,

77.

9 m

illio

n in

co-

finan

cing

secu

red

by th

e U

rban

D

evel

opm

ent F

unds

and

BG

N 5

7.8

mill

ion

in p

roje

ct sp

onso

r equ

ity. A

s of 2

7 N

ovem

ber 2

015,

Reg

iona

l Urb

an

Dev

elop

men

t Fun

d A

D h

as a

ppro

ved

finan

cing

from

the

Impu

ted

Loan

am

ount

ing

to B

GN

37.

2 m

illio

n or

108

.4%

of t

he

Impu

ted

Loan

, inc

ludi

ng a

gree

men

ts w

hich

hav

e be

en si

gned

for p

roje

ct fi

nanc

ing

of B

GN

29.

5 m

illio

n or

86%

of t

he

Impu

ted

Loan

and

fina

ncin

g w

hich

has

bee

n pa

id, a

mou

ntin

g to

BG

N 2

1.3

mill

ion

or 6

2% o

f the

Impu

ted

Loan

for

JESS

ICA

. At p

rese

nt, t

he S

usta

inab

le U

rban

Dev

elop

men

t of S

ofia

Fun

d EA

D h

as a

gree

d fin

anci

ng fr

om th

e Im

pute

d Lo

an o

f BG

N 2

4.7

mill

ion

or 1

04.5

% o

f the

Impu

ted

Loan

and

has

pai

d B

GN

19.

2 m

illio

n or

81%

of t

he Im

pute

d Lo

an

for J

ESSI

CA

.

Taki

ng in

to c

onsi

dera

tion

the

sign

ifica

nt p

rogr

ess a

chie

ved

in te

rms o

f ful

film

ent a

nd in

kee

ping

with

the

poss

ibili

ties

prov

ided

by

the

Com

mis

sion

’s G

uide

lines

on

Clo

sure

for t

he 2

007–

2013

per

iod,

the

Man

agin

g A

utho

rity

(MA

) of t

he

OPR

D a

nd E

IB to

ok m

easu

res t

o ex

tend

the

perio

ds fo

r inv

estin

g th

e fin

ance

s for

bot

h Fu

nds a

s fol

low

s:

-an

exte

nsio

n of

the

perio

d fo

r inv

estin

g fin

ance

s for

JESS

ICA

from

the

Sust

aina

ble

Urb

an D

evel

opm

ent o

f Sof

ia F

und

EAD

unt

il 30

June

201

6;

-an

exte

nsio

n of

the

perio

d fo

r inv

estin

g fin

ance

s for

JESS

ICA

from

the

Reg

iona

l Urb

an D

evel

opm

ent F

und

AD

unt

il 31

O

ctob

er 2

016.

In re

latio

n to

the

abov

e, b

oth

Urb

an D

evel

opm

ent F

unds

, bas

ed o

n th

e si

gnifi

cant

pro

gres

s mad

e, a

nnou

nced

an

inte

rest

in

rein

vest

ing

the

fund

s ret

urne

d fr

om in

vest

men

ts in

urb

an d

evel

opm

ent p

roje

cts u

nder

the

JESS

ICA

initi

ativ

e. W

ith th

is

in m

ind,

mea

sure

s wer

e ta

ken

to si

gn A

gree

men

ts o

n am

endi

ng th

e cu

rren

t Ope

ratio

nal A

gree

men

ts w

ith th

e Eu

rope

an

Inve

stm

ent B

ank

in it

s cap

acity

as a

Hol

ding

Fun

d.

In v

iew

of w

hat h

as b

een

stat

ed so

far,

the

MA

of t

he O

PRD

con

side

rs th

at th

e pr

ogre

ss m

ade

in im

plem

entin

g th

e fin

anci

al in

stru

men

t JES

SIC

A d

urin

g th

e pe

riod

follo

win

g th

e en

d of

201

3 is

sign

ifica

nt, a

s the

figu

res p

rese

nted

abo

ve

prov

e th

at B

ulga

ria is

succ

essf

ully

impl

emen

ting

the

JESS

ICA

pilo

t ini

tiativ

e fo

r fin

anci

ng u

rban

dev

elop

men

t pro

ject

s an

d ha

s suc

cess

fully

mad

e up

on

the

dela

y ac

cum

ulat

ed a

t the

star

t of t

he p

erio

d fo

r inv

estin

g fin

ance

s.

MLS

P: F

inan

cial

inst

rum

ents

hav

e no

t bee

n us

ed fo

r the

OP

‘Hum

an R

esou

rce

Dev

elop

men

t’ fo

r the

200

7–20

13 p

erio

d.

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

63

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

MEF

– D

GA

PE-

•The

impl

emen

tatio

n of

the

finan

cial

inst

rum

ents

in a

ll th

e M

S w

as a

ffec

ted,

unt

il 20

12, b

y in

accu

raci

es in

the

initi

al re

gula

tory

fram

ewor

k an

d by

an

initi

al la

ck o

f fle

xibi

lity

in th

e fin

anci

ng o

f wor

king

cap

ital t

o m

aint

ain

curr

ent o

pera

tions

, whi

ch w

as e

ssen

tial f

or c

ompa

nies

dur

ing

the

finan

cial

cris

is.

•Con

cern

ing

the

mea

sure

s rec

omm

ende

d by

the

CO

M to

ens

ure

impr

oved

impl

emen

tatio

n of

the

finan

cial

in

stru

men

ts, R

oman

ia

(a)h

as im

prov

ed m

onito

ring

by in

crea

sing

the

num

ber o

f mon

itorin

g an

d au

ditin

g vi

sits

and

requ

este

d th

e fin

anci

al in

term

edia

ries t

o es

timat

e th

e m

onth

ly re

sults

and

the

prog

ress

in a

chie

ving

the

inte

rmed

iate

targ

ets

set o

ut in

the

cont

ract

;

(b)h

as re

allo

cate

d re

sour

ces a

mon

g in

term

edia

ries (

bank

s), w

ith th

e ap

prov

al o

f the

Inve

stm

ent C

omm

ittee

, ba

sed

on p

erfo

rman

ce;

(c)h

as re

allo

cate

d re

sour

ces u

nder

the

SOP

IEC

200

7-20

13 to

supp

lem

ent t

he JE

REM

IE b

udge

t by

EUR

50

mill

ion

for t

he im

plem

enta

tion

of th

e in

tere

st ra

te su

bsid

y in

stru

men

t with

risk

shar

ing

and

carr

ied

out a

new

se

lect

ion

proc

ess f

or fi

nanc

ial i

nter

med

iarie

s.

•In

Dec

embe

r 201

4, a

bsor

ptio

n un

der t

he JE

REM

IE in

stru

men

t had

reac

hed

65 %

, and

in M

ay 2

015

it ha

d re

ache

d 90

% (e

stim

ate)

. The

est

imat

ed a

bsor

ptio

n in

clud

es: a

mou

nts s

et a

side

for p

aym

ents

und

er th

e lo

an

guar

ante

es c

ontra

cted

, am

ount

s pai

d to

SM

Es fo

r loa

ns c

o-fin

ance

d w

ith ri

sk sh

arin

g, a

mou

nts p

aid

to S

MEs

in

the

form

of v

entu

re c

apita

l inv

estm

ent a

nd m

anag

emen

t cos

ts a

t the

leve

l of t

he in

term

edia

ries a

nd o

f the

H

oldi

ng F

und

(EIF

). G

iven

the

exte

nsio

n of

the

dead

line

for i

mpl

emen

ting

the

finan

cial

inst

rum

ents

unt

il 20

16,

unde

r the

am

ende

d gu

idel

ines

on

the

clos

ure

of th

e pr

ogra

mm

es is

sued

by

the

EC in

Apr

il 20

15, R

oman

ia h

as

supp

lem

ente

d th

e JE

REM

IE re

sour

ces b

y EU

R 7

5 m

illio

n, a

ctua

lly p

aid

out t

o th

e EI

F (J

EREM

IE h

oldi

ng

fund

) in

two

inst

alm

ents

, nam

ely

in Ju

ne a

nd O

ctob

er 2

015.

In to

tal,

thro

ugh

the

final

bud

get o

f JER

EMIE

in

itiat

ive

amou

ntin

g to

EU

R 2

25 m

illio

n, th

e es

timat

ed m

ultip

lyin

g ef

fect

(exp

ress

ed in

tot

al fu

ndin

g fo

r SM

Es) w

ill b

e m

ore

than

2.5

tim

es.

Slov

akia

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Slov

ak in

stitu

tions

hav

e do

ne a

ll th

ey c

an to

impr

ove

take

-up

in th

e im

plem

enta

tion

of fi

nanc

ial i

nstru

men

ts in

Sl

ovak

ia. A

part

from

per

iodi

c an

d rig

orou

s mon

itorin

g of

the

perf

orm

ance

of f

inan

cial

inst

rum

ents

, act

ion

has

64

been

take

n to

impr

ove

the

flexi

bilit

y of

con

ditio

ns fo

r fin

anci

al in

term

edia

ries (

e.g.

the

prov

isio

n of

ove

rdra

fts,

incr

ease

d cr

edit

amou

nts,

the

canc

ella

tion

of th

e gu

aran

tee

fee,

revo

lvin

g, th

e fin

anci

ng o

f wor

king

cap

ital,

etc.

). M

eetin

gs h

ave

been

hel

d w

ith fi

nanc

ial i

nter

med

iarie

s to

iden

tify

the

mai

n hi

ndra

nces

in th

e im

plem

enta

tion

of fi

nanc

ial i

nstru

men

ts. T

hese

mai

n hi

ndra

nces

wer

e fo

und

to b

e st

agna

ting

corp

orat

e cr

edit

on th

e m

arke

t, as

soci

ated

with

the

inte

rnat

iona

l fin

anci

al a

nd e

cono

mic

cris

is, a

s wel

l as t

echn

ical

bar

riers

st

emm

ing

from

EU

regu

latio

ns (t

he p

recl

usio

n of

refin

anci

ng, c

ost r

eim

burs

emen

t, th

e ag

ricul

tura

l sec

tor a

nd

the

Bra

tisla

va re

gion

, the

adm

inis

trativ

e bu

rden

of r

epor

ting

on S

tate

aid

or d

e m

inim

is a

id a

t fin

al

bene

ficia

ries,

etc.

). Th

e re

lativ

ely

high

leve

rage

eff

ect o

f the

gua

rant

ee in

stru

men

t dam

pene

d th

e in

stru

men

t’s

succ

ess,

with

add

ition

al re

sear

ch in

to m

arke

t dem

and

reve

alin

g th

at th

ere

was

mor

e in

tere

st in

a ri

sk-s

harin

g in

stru

men

t with

less

of a

leve

rage

eff

ect.

Echo

ing

this

, fin

anci

al in

term

edia

ries w

ere

sele

cted

in su

mm

er 2

015.

W

e ex

pect

con

tract

s to

be c

oncl

uded

with

fina

ncia

l int

erm

edia

ries a

nd th

e ris

k-sh

arin

g in

stru

men

t with

a lo

wer

le

vera

ge e

ffec

t to

be la

unch

ed b

y th

e en

d of

201

5. T

he e

ligib

ility

of e

xpen

ditu

re in

rela

tion

to c

redi

t in

stru

men

ts re

quire

s the

dis

burs

emen

t of t

he c

redi

t in

its e

ntire

ty to

the

finan

cial

ben

efic

iary

; how

ever

, the

fina

l be

nefic

iary

did

not

take

up

the

reso

urce

s qui

ckly

eno

ugh

(as i

nves

tmen

ts w

ere

bein

g re

ined

in a

t a ti

me

whe

n th

e m

arke

t situ

atio

n w

as p

reca

rious

). A

lthou

gh re

finan

cing

and

cos

t rei

mbu

rsem

ent h

ave

been

off

icia

lly

prec

lude

d, fr

om S

lova

kia’

s per

spec

tive

ther

e is

no

lega

l bas

is fo

r suc

h cu

rbs.

Spai

n: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: W

e ag

ree

with

the

Com

mis

sion

’s re

spon

se w

ith re

gard

to th

is fi

ndin

g.

6.50

.D

isbu

rsem

ent r

ate

is to

o lo

w

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Spai

n: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: W

e ag

ree

with

the

Com

mis

sion

’s re

spon

se w

ith re

gard

to th

is fi

ndin

g.

Box

6.1

. Ex

ampl

es o

f ser

ious

vi

olat

ions

of t

he ru

les o

n pu

blic

pro

cure

men

t

Bel

gium

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Finl

and:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: 1

1.12

.201

5 G

erm

any:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Item

(a):

Rem

edia

l mea

sure

s wer

e ta

ken

to g

uara

ntee

com

plia

nce

with

pro

cure

men

t pro

visi

ons a

nd w

ere

desc

ribed

to th

e C

omm

issi

on in

a le

tter o

f 19

Nov

embe

r 201

5. C

onsu

ltatio

n is

taki

ng p

lace

on

the

amou

nt o

f

65

the

requ

isite

fina

ncia

l cor

rect

ion.

Ite

m (b

): Er

rors

are

bei

ng th

orou

ghly

ana

lyse

d by

the

rele

vant

man

agin

g au

thor

ities

and

, dep

endi

ng o

n th

e ty

pe

of e

rror

, enh

ance

d ch

ecks

by

inte

rmed

iate

bod

ies,

adap

tatio

n of

che

cklis

ts, t

rain

ing

cour

ses o

r sim

ilar a

ctio

ns

are

bein

g un

derta

ken.

In th

e ca

se o

f the

ER

DF,

mor

eove

r, th

ere

are

regu

lar e

xcha

nges

rega

rdin

g th

e co

mm

ones

t sou

rces

of e

rror

and

on

rem

edia

l act

ion

at th

e m

eetin

gs o

f the

ER

DF

man

agin

g au

thor

ity w

ith th

e Fe

dera

l Min

istry

for E

cono

mic

Aff

airs

and

Ene

rgy,

ofte

n al

ong

with

Com

mis

sion

aud

itors

from

DG

Reg

io.

Hun

gary

: act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

Euro

pean

Cou

rt of

Aud

itors

(‘A

udit

rela

ting

to th

e st

atem

ent o

f ass

uran

ce o

n th

e 20

14 fi

nanc

ial y

ear

(DA

S-20

14) –

Fin

al a

udit

findi

ngs o

n th

e pa

ymen

ts to

the

2007

HU

161P

O00

7 op

erat

iona

l pro

gram

me

– Tr

ansp

ort –

CF

– re

fere

nce

num

ber A

RPF

-671

6’, l

ine

sect

ion

Kis

újsz

állá

s (ex

cl.))

– P

üspö

klad

ány

(incl

.))

foun

d th

at th

ere

was

an

infr

inge

men

t rel

atin

g to

a p

ublic

pro

cure

men

t pro

cedu

re a

nd c

onsi

dere

d th

at fi

nanc

ial

corr

ectio

n w

as n

eces

sary

. How

ever

, in

this

resp

ect H

unga

ry st

ands

by

its p

ositi

on p

rese

nted

in it

s let

ter o

f rep

ly

on th

e sa

me

subj

ect,

date

d 9

June

201

5, in

rela

tion

to th

e EC

A D

AS

2014

‘Pre

limin

ary

obse

rvat

ions

PF-

6716

’. O

ur le

gal p

ositi

on is

that

the

Con

tract

ing

auth

ority

of t

he M

embe

r Sta

te h

as c

lear

ly a

cted

in a

ccor

danc

e w

ith

EU a

nd n

atio

nal l

aw in

wha

t the

Eur

opea

n C

ourt

of A

udito

rs d

eem

s an

infr

inge

men

t; th

e bi

dder

s wer

e ex

clud

ed in

a la

wfu

l man

ner;

ther

efor

e, th

ere

is n

o ro

om fo

r fin

ding

any

irre

gula

rity

or fi

nanc

ial c

orre

ctiv

e m

easu

res i

n th

e ca

se c

once

rned

. For

that

reas

on, w

e ha

ve n

ot im

plem

ente

d an

y fin

anci

al c

orre

ctio

n, a

nd w

e di

sput

e th

e fin

ding

. It

aly:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Mal

ta: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: A

t pre

sent

, in

the

case

refe

rred

to w

ith re

gard

to M

alta

, the

Pla

nnin

g an

d Pr

iorit

ies C

oord

inat

ion

Div

isio

n (P

PCD

) is s

till a

t the

stag

e of

rece

ivin

g a

form

al le

tter f

rom

the

Euro

pean

Com

mis

sion

. Con

sequ

ently

, the

dat

e of

com

plet

ion

is n

ot y

et k

now

n. It

shou

ld b

e no

ted

that

Mal

ta d

oes n

ot a

gree

with

the

conc

lusi

on o

f the

Eu

rope

an C

ourt

of A

udito

rs th

at M

alta

use

d th

e di

rect

aw

ard

proc

edur

e; in

fact

, Mal

ta o

pted

for t

he o

pen

proc

edur

e an

d su

bseq

uent

ly fo

r the

neg

otia

ted

proc

edur

e.

66

Swed

en: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e C

ourt

of A

udito

rs h

as n

ot y

et is

sued

a fi

nal r

epor

t fol

low

ing

the

trilo

gue

in Ju

ne 2

015.

Lik

e th

e C

omm

issi

on, S

wed

en a

nd th

e re

spon

sibl

e au

thor

ities

are

ther

efor

e aw

aitin

g th

e re

port

befo

re c

omm

entin

g or

ta

king

act

ion

on th

e au

dit.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

UK

pro

ject

refe

renc

ed h

ere

is n

ot id

entif

ied

by th

e EC

A so

it is

not

pos

sibl

e to

com

men

t on

the

natu

re o

f th

e pu

blic

pro

cure

men

t err

ors.

How

ever

, EC

A a

ckno

wle

dged

, in

a re

cent

Spe

cial

Rep

ort o

n Pu

blic

Pro

cure

men

t iss

ues,

the

good

pra

ctic

es in

trodu

ced

by

the

UK

sinc

e er

rors

iden

tifie

d in

pre

viou

s yea

rs. U

K a

utho

ritie

s are

wor

king

to c

ontin

ue th

e im

prov

emen

t in

publ

ic p

rocu

rem

ent p

roce

dure

s in

stru

ctur

al fu

nds p

rogr

amm

es fo

r the

201

4-20

per

iod.

B

ox 6

.2.

Exam

ples

of a

llege

d no

n-el

igib

le c

osts

A

ustr

ia: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: R

egar

ding

e):

The

proj

ect c

once

rned

is n

ot in

clud

ed in

the

expe

nditu

re d

ecla

ratio

n fo

r the

tim

e be

ing.

The

fina

l de

cisi

on o

n ho

w th

e ca

se w

ill u

ltim

atel

y be

han

dled

has

yet

to b

e m

ade.

C

zech

Rep

ublic

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

findi

ng (e

rror

) cov

ered

by

the

enqu

iry is

uni

dent

ifiab

le (t

he o

bser

vatio

n ha

s bee

n de

scrib

ed in

ver

y br

oad

term

s).

Finl

and:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: 2

1.12

.201

5 R

ecov

ery

deci

sion

s tak

en o

n 12

Nov

embe

r 201

5 an

d 16

Nov

embe

r 201

5.

Ger

man

y: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Se

e th

e re

plie

s in

Ann

ex II

rega

rdin

g th

e au

dits

in q

uest

ion.

N

ethe

rlan

ds: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 15

Mar

ch 2

015

The

proj

ect i

s the

Avi

atio

n In

dust

ry F

und

(Sec

torf

onds

luch

tvaa

rt) p

roje

ct 2

010E

SFN

133.

The

cas

e re

late

s to

one

invo

ice

for t

he h

ire o

f adm

inis

trativ

e se

rvic

es, w

here

a se

ctio

n of

the

serv

ices

pro

vide

d re

late

d no

t to

the

actio

n D

pro

ject

exa

min

ed b

y th

e C

ourt

but i

nste

ad to

the

actio

n J p

roje

ct.

The

extra

pola

tion

file

now

incl

udes

a

ques

tion

expr

essl

y as

king

how

far t

he c

osts

rela

te to

the

proj

ect (

colu

mn

M in

the

extra

pola

tion

file)

.

67

Pola

nd: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: A

ctiv

ities

of t

he M

anag

ing

Aut

horit

y of

the

Hum

an C

apita

l Ope

ratio

nal P

rogr

amm

e (M

A H

C O

P, su

ppor

ted

by th

e Eu

rope

an S

ocia

l Fun

d):

1)as

rega

rds s

ub-p

oint

(c),

we

ass

ume

that

the

case

des

crib

ed in

volv

ing

cost

s unr

elat

ed to

the

proj

ect

conc

erne

d re

port

PF 6

758,

find

ings

251

8-22

, in

whi

ch o

pera

ting

cost

s inc

urre

d fo

r ano

ther

pro

ject

(r

eim

burs

emen

t of o

ccup

atio

nal t

hera

py w

orks

hops

for d

isab

led

pers

ons)

wer

e sh

own

as a

n ow

n co

ntrib

utio

n to

the

proj

ect.

With

rega

rd to

thos

e fin

ding

s, in

our

repl

y to

the

repo

rt w

e as

ked

for t

he e

rror

(PLN

20

001.

56,

extra

pola

ted

erro

r: PL

N 2

3 43

2.03

) to

be c

lass

ified

as a

pro

ject

sele

ctio

n er

ror b

y th

e se

cond

-leve

l int

erm

edia

te

body

(IB

II).

Erro

rs o

f thi

s typ

e ha

d be

en id

entif

ied

by p

revi

ous E

C a

udits

and

had

giv

en ri

se to

the

impo

sitio

n of

cor

rect

ions

on

som

e co

ntra

cts c

oncl

uded

by

the

seco

nd-le

vel i

nter

med

iate

bod

y. T

he sa

mpl

e co

vere

d by

the

Com

mis

sion

's co

rrec

tions

als

o in

clud

ed th

e pr

ojec

t exa

min

ed b

y th

e C

ourt

of A

udito

rs in

whi

ch th

e ab

ove-

men

tione

d fin

ding

s wer

e m

ade.

In it

s fin

al p

ositi

on o

n th

e re

port,

the

Cou

rt of

Aud

itors

indi

cate

d th

at th

e er

ror

rate

had

bee

n re

duce

d to

7.8

4%. I

n vi

ew o

f the

Com

mis

sion

’s p

revi

ous p

ositi

on o

n th

e co

nsum

ptio

n of

this

er

ror b

y th

ese

corr

ectio

ns, w

e ar

e w

aitin

g to

be

info

rmed

whe

ther

furth

er a

ctio

n is

nee

ded

on th

ese

findi

ngs o

r w

heth

er th

ey c

an b

e re

gard

ed a

s clo

sed.

The

Com

mis

sion

has

not

indi

cate

d its

pos

ition

on

this

mat

ter t

o da

te.

2)as

rega

rds s

ub-p

oint

(d) -

in a

ccor

danc

e w

ith su

mm

ary

findi

ngs 2

514-

51 o

f Cou

rt of

Aud

itors

repo

rt N

o PF

-66

38, t

he a

mou

nt d

eem

ed in

elig

ible

on

the

grou

nds o

f irr

egul

ariti

es in

con

nect

ion

with

the

impl

emen

tatio

n of

co

unse

lling

and

trai

ning

(inc

ludi

ng th

e la

ck o

f app

ropr

iate

trai

ning

/cou

nsel

ling

qual

ifica

tions

) was

est

imat

ed a

t PL

N 2

5 99

0. T

his a

mou

nt w

as re

cove

red

from

the

bene

ficia

ry (1

3.08

.201

5). M

A H

C O

P is

wai

ting

to b

e in

form

ed b

y th

e C

omm

issi

on w

heth

er fu

rther

act

ion

is n

eede

d on

thes

e fin

ding

s or w

heth

er th

ey c

an b

e re

gard

ed a

s clo

sed.

Onc

e th

is in

form

atio

n ha

s bee

n re

ceiv

ed fu

rther

act

ion

can

be ta

ken.

A

ctiv

ities

of t

he M

anag

ing

Aut

horit

y of

the

Inno

vativ

e Ec

onom

y O

pera

tiona

l Pro

gram

me

(MA

IE O

P,

supp

orte

d by

the

Euro

pean

Reg

iona

l Dev

elop

men

t Fun

d):

The

findi

ngs o

f the

Cou

rt of

Aud

itors

repo

rt N

o PF

-644

2 re

late

d to

pro

ject

IE O

P.01

.01.

02-0

0-06

9/09

(U

niw

ersy

tet J

agie

llons

ki).

The

Cou

rt of

Aud

itors

foun

d th

at th

e pr

ojec

t pay

roll

cost

s wer

e in

elig

ible

- pa

y ha

d be

en in

crea

sed

abov

e th

e m

axim

um b

asic

sala

ry ra

tes,

a ris

e w

hich

was

unj

ustif

ied

by m

arke

t con

ditio

ns.

By

lette

r dat

ed 2

6 A

ugus

t 201

5 M

A IE

OP

forw

arde

d th

e fin

al v

ersi

on o

f the

Cou

rt of

Aud

itors

’ rep

ort N

o PF

-64

42 to

the

appr

opria

te In

term

edia

te B

ody

(whi

ch w

as re

spon

sibl

e fo

r sup

ervi

sing

impl

emen

tatio

n of

the

proj

ect).

MA

IE O

P w

ill ta

ke fu

rther

act

ion

in a

ccor

danc

e w

ith th

e C

omm

issi

on’s

pos

ition

on

the

mat

ter.

68

Posi

tion

of th

e M

anag

ing

Aut

horit

y of

the

Infr

astru

ctur

e an

d En

viro

nmen

t Ope

ratio

nal P

rogr

amm

e (M

A I

& E

O

P, su

ppor

ted

by th

e C

ohes

ion

Fund

/ER

DF)

: M

A I

& E

OP

disp

utes

the

Cou

rt of

Aud

itors

’ fin

ding

s on

the

I & E

OP

audi

ted

proj

ects

(alle

ged

non-

com

plia

nce

with

pub

lic p

rocu

rem

ent p

roce

dure

s/co

ntra

ct a

war

d pr

oced

ures

). D

etai

led

expl

anat

ions

are

set o

ut

in M

A I

& E

OP’

s pos

ition

on

indi

vidu

al D

AS

2014

aud

its.

Furth

er a

ctio

n un

der t

he

lsk

ie R

egio

nal O

pera

tiona

l Pro

gram

me

(MA

l

skie

RO

P, su

ppor

ted

by th

e ER

DF)

: O

n 1

Oct

ober

201

4 th

e M

anag

ing

Aut

horit

y im

plem

ente

d an

add

ition

al c

ompr

ehen

sive

ex-

post

che

ck

proc

edur

e fo

r pub

lic p

rocu

rem

ent c

ontra

cts s

ubm

itted

by

bene

ficia

ries f

or re

fund

s. In

add

ition

to a

udit

activ

ities

, MA

l

skie

RO

P pl

aces

par

ticul

ar e

mph

asis

on

orga

nisi

ng tr

aini

ng a

nd p

ract

ical

wor

ksho

ps fo

r be

nefic

iarie

s and

MA

staf

f on

the

appl

icat

ion

of th

e Pu

blic

Pro

cure

men

t Act

.

Port

ugal

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: N

O ;

Com

plet

ion

date

: Se

e re

plie

s in

Ann

ex II

of t

his q

uest

ionn

aire

.

Box

6.3

. Ex

ampl

e of

a p

roje

ct

infr

ingi

ng st

ate

aid

rule

s R

oman

ia: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed:

YES

; C

ompl

etio

n da

te: 3

0 Ju

ne 2

015

MEF

– S

OPI

EC-

Bas

ed o

n th

e as

sess

men

ts in

EC

A R

epor

t for

201

4 on

the

Ope

ratio

nal P

rogr

amm

e fo

r Inc

reas

e of

Ec

onom

ic C

ompe

titiv

enes

s, re

veal

ing

that

the

appl

ican

ts h

ave

omitt

ed to

dec

lare

all

partn

er o

r lin

ked

com

pani

es, w

hich

cou

ld le

ad to

losi

ng th

e st

atus

of S

ME

(und

er L

aw N

o 34

6/20

04),

MA

SO

P IE

C

issu

ed In

stru

ctio

n N

o 42

54 o

f 26

Febr

uary

201

5, a

ccom

pani

ed b

y a

list t

o re

view

the

elig

ibili

ty o

f all

cont

ract

s w

ith S

ME

bene

ficia

ries,

co-f

inan

ced

unde

r SO

P IE

C -

Prio

rity

Axi

s 1, b

oth

in th

e su

stai

nabi

lity

perio

d,

or u

nder

impl

emen

tatio

n.

Inst

ruct

ion

No

4254

of 2

6 Fe

brua

ry 2

015

was

sent

to a

ll R

DA

s (IB

SO

P IE

C),

spec

ifyin

g th

e

cle

ar d

eadl

ines

for c

ompl

etio

n an

d in

clud

ing

an a

dditi

onal

requ

est t

o ch

eck

with

the

Nat

iona

l Tra

de R

egis

ter

Off

ice

all f

irms/

natu

ral o

r leg

al p

erso

ns li

sted

in th

e C

onfir

mat

ion

of C

ompa

ny D

etai

ls a

s sha

reho

lder

s of t

he

bene

ficia

ry c

ompa

ny.

The

MA

SO

P IE

C, t

oget

her w

ith th

e lo

cal i

nter

med

iate

bod

ies,

has r

e-ch

ecke

d, d

urin

g th

e pe

riod

from

A

pril

to Ju

ne 2

015,

2 2

00 b

enef

icia

ries i

n or

der t

o es

tabl

ish

thei

r cla

ssifi

catio

n as

SM

E. T

he in

form

atio

n fr

om

the

Nat

iona

l Tra

de R

egis

ter O

ffic

e, th

e pl

atfo

rm o

f the

Com

petit

ion

Cou

ncil

and

the

AR

AC

HN

E sy

stem

was

us

ed u

nder

the

re-c

heck

as u

nder

lyin

g to

ol.

69

Box

6.4

. Ex

ampl

e of

an

inel

igib

le

proj

ect

Gre

ece:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

9/09

/201

5 R

emov

al o

f act

ions

as S

tate

aid

from

the

oper

atio

nal p

rogr

amm

e (G

over

nmen

t Gaz

ette

, Ser

ies I

I, N

o 19

48/2

015)

B

ox 6

.5.

Exam

ple

of M

embe

r Sta

tes

not r

eim

burs

ing

bene

ficia

ries

in ti

me

and

unju

stifi

ed

paym

ent o

f adv

ance

s to

Mem

ber S

tate

s

Fran

ce: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: Su

r la

prog

ram

mat

ion

2007

-201

3, le

dél

ai d

e pa

iem

ent

d’un

bén

éfic

iaire

s’ex

pliq

ue p

ar le

s mod

alité

s de

la

mis

e à

disp

ositi

on d

es c

rédi

ts e

n Fr

ance

d’u

n pr

ogra

mm

e na

tiona

l à g

estio

n dé

conc

entré

e.

En e

ffet

, cet

te m

ise

à di

spos

ition

s’ef

fect

ue e

n 2

tem

ps :

1-

Au

nive

au n

atio

nal,

l’au

torit

é de

ges

tion

en ti

tre –

Dél

égat

ion

géné

rale

à l’

empl

oi e

t à la

form

atio

n pr

ofes

sion

nelle

- D

GEF

P, p

rodu

it l’é

tat d

e ré

parti

tion

régi

onal

des

cré

dits

à c

haqu

e pa

iem

ent c

omm

unau

taire

. C

es c

rédi

ts so

nt e

nsui

te v

ersé

s par

le se

rvic

e du

con

trôle

bud

géta

ire e

t com

ptab

le m

inis

térie

l du

min

istè

re d

es

Fina

nces

et d

es c

ompt

es p

ublic

s ( p

oint

uni

que

d’en

trée

des c

rédi

ts c

omm

unau

taire

s pou

r la

Fran

ce) s

elon

les

proc

édur

es p

révu

es p

ar la

circ

ulai

re in

term

inis

térie

lle C

D-0

877

du 1

4 m

ai 2

007

sur l

e co

mpt

e ou

vert

aupr

ès d

e ch

aque

dire

ctio

n ré

gion

ale

des e

ntre

pris

es, d

e la

con

curr

ence

, de

la c

onso

mm

atio

n, d

u tra

vail

et d

e l’e

mpl

oi -

DIR

ECC

TE (a

utor

ité d

e ge

stio

n dé

légu

ée) ;

2-

Au

nive

au ré

gion

al –

la

Dire

ctio

n ré

gion

ale

des f

inan

ces p

ubliq

ues (

DR

FiP)

, aut

orité

de

certi

ficat

ion

du

prog

ram

me,

pro

cède

au

paie

men

t des

som

mes

due

s aux

bén

éfic

iaire

s ou

aux

orga

nism

es in

term

édia

ires -

OI

sur d

eman

de d

e la

DIR

ECC

TE. P

our l

e pa

iem

ent d

es b

énéf

icia

ires c

onve

ntio

nnés

par

un

orga

nism

e in

term

édia

ire, c

elui

-ci a

ssur

e le

pai

emen

t des

bén

éfic

iaire

s sel

on se

s mod

alité

s pro

pres

. Le

dél

ai d

e ve

rsem

ent

incr

imin

é co

rres

pond

au

cas d

’un

orga

nism

e in

term

édia

ire se

situ

ant é

gale

men

t en

posi

tion

de b

énéf

icia

ire d

es

créd

its F

SE. L

e re

spec

t d’u

n pa

iem

ent d

ans l

es p

lus b

refs

dél

ais (

artic

le 8

0 du

règl

emen

t 180

3-20

06) i

ncom

be à

ch

aque

dél

égat

aire

de

gest

ion

(DIR

ECC

TE o

u O

I) p

our s

es b

énéf

icia

ires.

Par a

illeu

rs, l

a ré

glem

enta

tion

rela

tive

à la

pro

gram

mat

ion

2007

-201

3 n’

impo

se p

as d

e dé

lai d

e ré

fére

nce

pour

le p

aiem

ent d

es b

énéf

icia

ires.

Gre

ece:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

9/09

/201

5 R

emov

al o

f act

ions

as S

tate

aid

from

the

oper

atio

nal p

rogr

amm

e (G

over

nmen

t Gaz

ette

, Ser

ies I

I, N

o 19

48/2

015)

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

70

Net

herl

ands

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: N

ot a

pplic

able

-T

his c

once

rns t

he fo

llow

ing

proj

ects

: o2

010E

SFN

133

Avi

atio

n In

dust

ry F

und

(Sec

torf

onds

luch

tvaa

rt, a

ctio

n D

) o2

011E

SFN

269

VV

T (a

ctio

n D

) o2

011E

SFN

322

TNT

(act

ion

D)

o201

1ESF

N37

6 K

PN (a

ctio

n D

) o2

011E

SFN

566

KLP

D (a

ctio

n D

) o2

011E

SFT6

45 D

JI (a

ctio

n D

) Fo

r ESF

201

4-20

20 th

e 90

-day

tim

e-lim

it w

ill b

e ap

plie

d.B

ox 6

.7.

Exam

ple

of p

roje

cts w

ithou

t ad

ded

valu

e G

reec

e: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e in

form

atio

n is

not

suff

icie

nt fo

r det

erm

inin

g th

e pr

ojec

t to

whi

ch re

fere

nce

is m

ade.

Box

6.8

. Ex

ampl

e of

indi

cato

rs n

ot in

lin

e w

ith O

P It

aly:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Box

6.9

. Ex

ampl

e of

pro

ject

s with

a

perf

orm

ance

bas

ed fu

ndin

g sy

stem

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

MEF

- SO

PIEC

6.9

and

6.1

0 –

MEF

– S

OPH

RD

M

A S

OPI

EC-

MA

SO

PIEC

issu

ed In

stru

ctio

n N

o 19

954

of 2

0 N

ovem

ber 2

014

appl

icab

le to

all

bene

ficia

ries —

pro

duct

ive

com

pani

es -

all t

hrou

gh th

e su

stai

nabi

lity

perio

d. T

he c

heck

s car

ried

out f

or th

e Fi

nal P

rogr

ess R

epor

t an

d fo

r the

fina

l app

licat

ion

for r

eim

burs

emen

t sha

ll in

clud

e ve

rific

atio

n of

the

degr

ee o

f ach

ieve

men

t of t

he

indi

cato

rs.

MA

SO

PHR

D-

Follo

win

g th

e EC

reco

mm

enda

tions

, MA

SO

PHR

D re

duce

d th

e m

axim

um re

imbu

rsem

ent c

eilin

gs fo

r the

sa

larie

s of t

he e

xper

ts e

mpl

oyed

in th

e pr

ojec

ts fi

nanc

ed u

nder

the

SOPH

RD

, so

that

the

curr

ent c

eilin

gs

(App

lican

t’s G

uide

Gen

eral

Con

ditio

ns 2

015)

shou

ld b

e al

igne

d to

the

mar

ket p

rices

in R

oman

ia, w

here

the

sala

ries a

pplie

d at

the

MEF

are

use

d as

refe

renc

e.

The

ceili

ngs i

nclu

ded

in th

e G

uide

refe

r to

the

gros

s sal

arie

s (th

e ne

t sal

arie

s and

the

cont

ribut

ions

of t

he

empl

oyee

). Th

ese

max

imum

cei

lings

wer

e al

so ta

ken

up in

the

App

lican

t’s G

uide

Gen

eral

Con

ditio

ns re

late

d to

th

e ca

lls u

nder

the

OPH

C.

71

Box

6.1

0.

Exam

ple

of n

atio

nal

elig

ibili

ty ru

les g

oing

aga

inst

th

e pr

inci

ple

of so

und

finan

cial

man

agem

ent

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

72

CH

APT

ER

7 –

‘Nat

ural

res

ourc

es’

Para

grap

h O

bser

vatio

n in

the

2014

A

nnua

l Rep

ort

Mem

ber S

tate

repl

y

7.5.

Sing

le A

rea

Paym

ent S

chem

e B

ulga

ria:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cyp

rus:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: Y

ES ;

Com

plet

ion

date

: 31

Dec

embe

r 201

4 Th

e re

leva

nt c

hapt

er o

f the

repo

rt do

es n

ot in

clud

e an

y sp

ecia

l men

tion

of C

ypru

s. C

zech

Rep

ublic

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Irre

leva

nt –

ther

e is

no

erro

r inv

olve

d.

Est

onia

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Hun

gary

: act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Fact

ual f

indi

ng, n

o ac

tion

requ

ired.

Lat

via:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

No

com

men

t, as

this

is a

fact

ual f

indi

ng. L

atvi

a ap

plie

d SA

PS, w

hich

pro

vide

s for

an

annu

al si

ngle

are

a pa

ymen

t for

eac

h de

clar

ed e

ligib

le h

ecta

re o

f agr

icul

tura

l lan

d. L

atvi

a al

so a

pplie

d fo

ur o

ther

dire

ct a

id

sche

mes

(spe

cific

aid

for b

eef c

attle

; spe

cific

aid

for m

ilk; s

peci

fic a

id fo

r im

prov

ing

the

qual

ity o

f sta

rch

pota

toes

; spe

cific

aid

for i

mpr

ovin

g th

e qu

ality

of f

odde

r pla

nt se

ed a

nd se

ed p

otat

oes)

.

Lith

uani

a: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

Pola

nd: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: no

te d

oes n

ot c

onta

in a

llega

tions

aga

inst

Pol

and

73

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 3

0 Ju

ne 2

015

PIA

A

Slov

akia

: act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Slov

akia

has

stea

dfas

tly m

et th

is re

quire

men

t. 7.

14.

Aud

it sc

ope

and

appr

oach

in

volv

ing

an e

xam

inat

ion

of

trans

actio

ns fo

r EA

GF

and

for ‘

Rur

al d

evel

opm

ent,

envi

ronm

ent,

clim

ate

actio

n an

d fis

herie

s’

Aus

tria

: act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Bel

gium

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

1/01

/201

5 B

ulga

ria:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cro

atia

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Cze

ch R

epub

lic: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Ir

rele

vant

– th

ere

is n

o er

ror i

nvol

ved.

D

enm

ark:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Foot

note

4 is

a re

fere

nce

to th

e fa

ct th

at D

enm

ark

was

cov

ered

by

the

audi

t con

cern

ed (t

he C

omm

issi

on’s

co

nfor

mity

aud

it), a

nd w

e ha

ve n

o co

mm

ents

to m

ake

on th

is.

Est

onia

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Finl

and:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Fran

ce: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: C

f. ré

pons

es a

u ch

apitr

e 1-

obse

rvat

ion

2, in

fra

et à

l’an

nexe

II.

74

Ger

man

y: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Fo

r inf

orm

atio

n on

ly; n

o re

ply

requ

ired.

G

reec

e: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: H

unga

ry: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Fa

ctua

l fin

ding

, no

actio

n re

quire

d.

Irel

and:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: L

atvi

a: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 19

Febr

uary

201

5 W

ith re

gard

to th

e er

ror i

dent

ified

in c

onne

ctio

n w

ith M

FF h

eadi

ng N

o 2

'Nat

ural

Res

ourc

es' (

Cha

pter

7 –

N

atur

al re

sour

ces,

PF 6

625)

, the

Pay

ing

Age

ncy

has c

orre

cted

the

decl

arat

ion

for t

he p

erio

d 16

Oct

ober

201

4 to

31

Dec

embe

r 201

4.

Lith

uani

a: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: N

ethe

rlan

ds: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Not

app

licab

le

Pola

nd: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: no

te d

oes n

ot c

onta

in a

llega

tions

aga

inst

Pol

and

Port

ugal

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 3

0 Ju

ne 2

015

The

com

men

t ref

ers t

o EC

A a

udit

carr

ied

out i

n R

oman

ia (R

1057

765R

O01

-15B

B-P

F-69

54-D

AS1

4) o

n th

e

75

corr

ectiv

e ac

tion

take

n as

a re

sult

of th

e co

mm

ents

mad

e in

the

audi

t pre

limin

ary

findi

ng re

ports

PF-

4209

(D

AS

2010

) and

PF-

4804

(DA

S 20

11).

The

repl

y of

the

Rom

ania

n au

thor

ities

— u

pdat

ed a

t thi

s sta

ge —

are

se

t out

bel

ow in

Ann

ex 2

. PIA

A

Slov

akia

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

In o

ur o

pini

on, t

he te

xt c

onve

ys th

e st

ate

of p

lay.

Sp

ain:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

With

rega

rd to

the

com

men

t on

perm

anen

t pas

ture

are

a, in

201

5 Sp

ain

allo

cate

d a

new

revi

sed

Elig

ibili

ty

Coe

ffic

ient

, thr

ee-f

acto

r CA

P-20

15, i

n th

e pa

stur

e ar

eas i

nclu

ded

in th

e LP

IS-G

IS to

ens

ure

that

bas

ic p

aym

ent

entit

lem

ents

are

allo

cate

d pr

oper

ly in

201

5. T

he C

AP-

2015

coe

ffic

ient

is a

mas

s aut

omat

ic th

ree-

fact

or

elig

ibili

ty c

oeff

icie

nt su

bjec

t to

stric

t sub

sequ

ent q

ualit

y co

ntro

l. It

inco

rpor

ates

a th

ird fa

ctor

(veg

etat

ion

pene

trabi

lity)

whi

ch c

over

s elig

ibili

ty c

onst

rain

ts a

risin

g fr

om th

e de

nsity

of i

mpe

netra

ble

tree

or b

ush

area

s th

at li

mit

acce

ssib

ility

or p

enet

rabi

lity

by li

vest

ock,

dis

coun

ting

them

from

the

elig

ible

are

a. W

ith re

gard

to th

e so

il fa

ctor

, whi

ch q

uant

ifies

the

pres

ence

of u

npro

duct

ive

elem

ents

with

out v

eget

atio

n su

ch a

s roc

ks o

r bar

e so

il, id

entif

icat

ion

of su

ch u

npro

duct

ive

elem

ents

has

bee

n im

prov

ed b

y cr

eatin

g La

nd C

over

(LC

) com

plet

e w

ith R

apid

Eye

sate

llite

imag

ery

(5 p

ixel

s x 5

m) w

hich

is h

ighe

r res

olut

ion

than

the

prev

ious

20x

20

m

imag

ery

(Dei

mos

sate

llite

) use

d fo

r CA

P-20

13. T

he sl

ope

fact

or h

as b

een

kept

as i

t was

alre

ady

incl

uded

in

CA

P-20

13. L

IDA

R (L

aser

Imag

ing

Det

ectio

n an

d R

angi

ng) a

eria

l im

ages

wer

e us

ed to

est

imat

e th

e pe

netra

bilit

y fa

ctor

. The

se a

re o

btai

ned

usin

g st

ate-

of-th

e-ar

t las

er te

chni

ques

bas

ed o

n di

ffer

entia

l ref

lect

ion

by v

eget

atio

n la

yers

of d

iffer

ent h

eigh

ts, m

akin

g it

poss

ible

to q

uant

ify p

enet

rabi

lity

or a

cces

sibi

lity

to

vege

tatio

n by

live

stoc

k.

The

impl

emen

tatio

n of

CA

P-20

15 fo

rms p

art o

f the

'Spe

cific

Act

ion

Plan

con

cern

ing

the

elig

ibili

ty o

f pas

ture

ar

eas'

(Arti

cle

41 o

f Reg

ulat

ion

1306

/201

4), w

hich

is c

urre

ntly

in it

s fin

al st

ages

of a

pplic

atio

n an

d co

nsis

ts o

f 11

spec

ific

actio

ns to

redu

ce e

ligib

ility

and

seve

n ac

com

pany

ing

mea

sure

s for

LPI

S-G

IS u

pdat

e. A

ctio

n N

o 1

is th

e co

nsol

idat

ion

of th

e ne

w C

AP

2015

coe

ffic

ient

in L

PIS-

GIS

, No

3 is

stric

t qua

lity

cont

rol t

here

of, N

o 2

allo

cate

s zer

o ad

mis

sibi

lity

to p

arce

ls o

f per

man

ent p

astu

re w

ith C

AP

< 20

% a

nd A

ctio

n N

o 4

invo

lves

the

appl

icat

ion

of a

CA

P =

0 to

pas

ture

par

cels

not

dec

lare

d in

the

last

five

yea

rs (s

ome

10 m

illio

n he

ctar

es o

f gr

assl

and

will

be

affe

cted

by

this

add

ition

al a

ctio

n to

CA

P 20

15).

76

By

appl

icat

ion

of C

AP-

2015

(exc

ludi

ng th

e re

sults

of t

he q

ualit

y co

ntro

l the

reof

) for

the

2015

yea

r, w

e ha

ve

redu

ced

the

elig

ible

are

a un

der p

astu

re b

y m

ore

than

4 m

illio

n he

ctar

es b

y ad

ding

the

2.8

mill

ion

ha re

duce

d in

20

13 b

y ap

plyi

ng C

AP-

2013

.

With

rega

rd to

the

com

men

t on

a sp

ecifi

c ca

se o

f ine

ligib

ility

on

arab

le la

nd (m

otoc

ross

trai

l), w

e no

te th

at th

e C

astil

e-La

Man

cha

AC

info

rmed

the

Cou

rt th

at th

e m

otoc

ross

trai

l dec

lara

tion

was

iden

tifie

d in

Feb

ruar

y 20

14

whe

n up

datin

g LP

IS-G

IS w

ith th

e la

test

ava

ilabl

e 20

12 o

rthoi

mag

es, a

s out

lined

by

the

Com

mis

sion

in it

s re

ply.

The

Com

mis

sion

als

o in

dica

tes t

hat t

he p

aym

ent h

ad b

een

mad

e in

Dec

embe

r 201

3 be

caus

e th

e C

astil

e-La

Man

cha

auth

oriti

es h

ad n

ot y

et re

ceiv

ed th

e LP

IS-G

IS u

pdat

e. In

any

eve

nt, i

n N

ovem

ber 2

014

proc

eedi

ngs

wer

e in

itiat

ed fo

r ret

roac

tive

reco

very

of a

ll pa

ymen

ts g

rant

ed in

the

year

s con

cern

ed. T

his M

embe

r Sta

te

belie

ves t

hat t

his a

rea

shou

ld n

ot h

ave

been

incl

uded

as a

n ar

ea w

ith a

n er

ror i

n th

e C

ourt’

s rep

ort s

ince

, as

expl

aine

d ab

ove,

it w

as d

etec

ted

by th

e C

astil

e-La

Man

cha

payi

ng a

genc

y in

the

proc

ess o

f upd

atin

g th

e or

thoi

mag

es a

nd w

as su

bjec

t to

the

corr

espo

ndin

g ba

ckda

ted

reco

verie

s and

pen

altie

s.

Any

farm

er c

an b

uild

a c

ircui

t or a

ny o

ther

con

stru

ctio

n on

his

or h

er a

rabl

e pa

rcel

s and

, unl

ess i

t is s

ubje

ct to

an

on-

the-

spot

che

ck, t

he p

ossi

bilit

y of

this

irre

gula

rity

bein

g id

entif

ied

aris

es w

hen

the

orth

oim

age

is u

pdat

ed

(this

pro

cess

is re

peat

ed e

very

thre

e ye

ars)

. In

all c

ases

whe

re th

e or

thoi

mag

e de

tect

s a c

ase

such

as t

he o

ne

desc

ribed

in S

pain

, bac

kdat

ed p

enal

ties a

re a

pplie

d fo

r the

four

pre

viou

s yea

rs. T

here

is th

eref

ore

no ri

sk fo

r th

e Fu

nd.

This

Mem

ber S

tate

con

side

rs th

at th

e C

ourt

belie

ved

that

the

lette

r inf

orm

ing

the

parc

el h

olde

r abo

ut th

e de

tect

ion

of a

dec

lara

tion

of a

n ar

ea in

elig

ible

as a

rabl

e la

nd h

ad p

ost-d

ated

thei

r vis

it, m

eani

ng th

at th

e co

rrec

tion

was

not

in li

ne w

ith th

e pr

oced

ure

esta

blis

hed

in S

pain

. The

AC

of C

astil

e-La

Man

cha

prov

ided

sc

reen

-sho

ts sh

owin

g th

at th

e no

tific

atio

n w

as m

ade

in a

ccor

danc

e w

ith th

at p

roce

dure

, and

not

as a

co

nseq

uenc

e of

the

Cou

rt’s v

isit

to th

e pa

ying

age

ncy.

Ulti

mat

ely,

this

cas

e de

mon

stra

tes t

hat t

he c

ontro

l sy

stem

s in

Spai

n op

erat

e pr

oper

ly a

nd e

nsur

e th

e co

rrec

t rec

over

y of

und

ue p

aym

ents

, due

to th

e m

easu

res

laun

ched

und

er th

e LP

IS-G

IS A

ctio

n Pl

an in

201

0 (in

clud

ing

redu

cing

the

time

betw

een

fligh

ts fr

om fi

ve to

th

ree

year

s and

impl

emen

tatio

n of

a st

rict p

roce

dure

for b

ackd

ated

reco

very

). Sw

eden

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

This

com

men

t doe

s not

requ

ire S

wed

en to

take

act

ion.

77

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: n

/a

This

refe

renc

e co

nfirm

s tha

t the

UK

was

one

of t

he M

embe

r Sta

tes v

isite

d fo

r the

EA

GF

and

EAFR

D a

udits

in

2014

. B

ox 7

.1.

Exam

ples

of p

aym

ents

for

over

stat

ed e

ligib

le la

nd

Cze

ch R

epub

lic: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: Th

e C

zech

aut

horit

ies a

sses

sed

all i

rreg

ular

ities

in c

ases

whe

re th

e ar

ea w

as o

vere

stim

ated

, and

app

ropr

iate

ac

tion

was

take

n.

Den

mar

k: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: O

ur p

roce

dure

is to

car

ry o

ut a

full

surv

ey o

f all

appl

ican

ts fo

r who

m th

e C

ourt

of A

udito

rs h

as id

entif

ied

over

-de

clar

atio

n. It

may

be

the

case

that

the

appl

ican

t has

not

ove

r-de

clar

ed th

e to

tal a

rea,

sinc

e th

e si

ze o

f som

e ar

eas m

ay h

ave

been

ove

r-de

clar

ed a

nd o

ther

s und

er-d

ecla

red.

Thi

s may

mea

n th

at th

ere

has n

ot b

een

an

over

paym

ent o

f aid

, eve

n th

ough

the

Cou

rt of

Aud

itors

has

iden

tifie

d ov

er-d

ecla

ratio

n on

som

e of

the

parc

els

sele

cted

. In

anot

her a

ctua

l cas

e, e

xces

s aid

pai

d ou

t ow

ing

to o

ver-

decl

arat

ion

was

reco

vere

d.

Finl

and:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 1

9.9.

2014

A

s is c

lear

from

the

lette

r fro

m th

e C

ourt

of A

udito

rs, n

o er

rors

wer

e de

tect

ed o

n th

e ot

her t

hree

insp

ecte

d ho

ldin

gs, w

hich

is a

lso

an im

porta

nt o

bser

vatio

n. T

here

fore

, the

6.9

7 pe

rcen

t DA

S er

ror r

ate

conc

erns

just

one

ho

ldin

g. If

, for

exa

mpl

e, c

once

rnin

g th

e er

ror i

n su

rfac

e ar

ea, t

he to

tal a

rea

mea

sure

d du

ring

the

insp

ectio

n w

eek

(72.

89 h

a) is

take

n in

to a

ccou

nt, t

he o

vers

tate

d ar

ea (0

.40

ha) i

s 0.5

5% o

f the

tota

l (w

ithou

t tak

ing

into

ac

coun

t the

fina

ncia

l dis

cipl

ine

mec

hani

sm).

On

the

othe

r han

d, th

e sh

are

of th

e in

corr

ect p

aym

ents

est

ablis

hed

by th

e C

ourt

of A

udito

rs (E

UR

156

.05)

in p

ropo

rtion

to th

e to

tal f

or th

e sa

mpl

ed h

oldi

ngs,

i.e. E

UR

12

060.

91

(EU

R 2

264.

93 fo

r sam

ple

14P1

073,

EU

R 2

000.

00 fo

r sam

ple

14P1

074,

EU

R 2

235.

34 fo

r sam

ple

14P1

075

and

EUR

556

0.64

for s

ampl

e 14

P107

6) is

1.2

9%. I

f the

farm

pay

men

ts p

aid

to th

e sa

mpl

ed h

oldi

ngs a

re ta

ken

into

ac

coun

t in

thei

r ent

irety

(tot

allin

g EU

R 6

7 35

1.86

), in

corr

ect p

aym

ents

repr

esen

t 0.2

3 pe

rcen

t of t

he to

tal.

Finn

ish

farm

ers f

ind

the

cons

tant

cha

nges

in su

rfac

e ar

ea d

iffic

ult t

o un

ders

tand

. Am

ong

othe

r thi

ngs,

diff

eren

ces i

n th

e up

date

requ

irem

ents

of t

he la

nd p

arce

l ide

ntifi

catio

n sy

stem

(LPI

S) fo

r on-

the-

spot

che

cks

(up

to a

max

imum

of 0

.01

ha o

f ine

ligib

le a

reas

) and

for t

he u

pdat

ing

of L

PIS

(cle

ar a

nd m

ore

than

2%

) re

peat

edly

cau

se c

hang

es in

surf

ace

area

eve

n th

ough

nei

ther

the

parc

el n

or it

s bor

ders

hav

e ch

ange

d.

In a

ccor

danc

e w

ith th

e C

ourt

of A

udito

rs’ r

ecom

men

datio

n 1,

in p

oint

7.7

7, th

is si

tuat

ion

has b

een

corr

ecte

d

78

and

the

surf

ace

area

on

the

basi

s of w

hich

the

paym

ent w

as b

ased

has

bee

n co

rrec

ted

in li

ne w

ith th

e ca

lcul

atio

ns m

ade

by th

e C

ourt

of A

udito

rs.

Fran

ce: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: S’

agis

sant

du

poin

t con

cern

ant l

es c

as d

e su

rdéc

lara

tion

des t

erre

s élig

ible

s, le

s rép

onse

s des

aut

orité

s fr

ança

ises

sont

four

nies

à l’

anne

xe II

pou

r cha

que

trans

actio

n.

S’ag

issa

nt d

u po

int r

elat

if au

x pâ

tura

ges p

erm

anen

ts, l

es a

utor

ités f

ranç

aise

s fon

t par

t des

com

men

taire

s su

ivan

ts :

D

ans l

e ca

dre

du p

lan

d'ac

tion

Feag

a m

is e

n pl

ace

depu

is 2

013,

les a

ctio

ns su

ivan

tes o

nt é

té n

otam

men

t pris

es

afin

de

rem

ettre

à jo

ur le

s par

celle

s iné

ligib

les :

- u

ne re

mis

e à

jour

du

RPG

,

- pris

e de

l' a

rrêt

é en

dat

e du

15

avril

201

4 re

latif

à l’

adm

issi

bilit

é de

cer

tain

es su

rfac

es e

t mod

ifian

t l’a

rrêt

é du

13

juill

et 2

010

rela

tif a

ux rè

gles

de

bonn

es c

ondi

tions

agr

icol

es e

t env

ironn

emen

tale

s (B

CA

E)

- mis

e à

disp

ositi

on à

l'or

gani

sme

paye

ur (A

SP)

de la

list

e de

s cod

es c

ultu

res 2

014

qui p

euve

nt ê

tre u

tilis

és p

ar

les a

gric

ulte

urs p

our d

écla

rer l

es su

rfac

es c

orre

spon

dant

à d

es o

bjet

s de

la c

ouch

e «

végé

tatio

n »

de la

BD

-Top

G

erm

any:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

See

the

repl

ies i

n A

nnex

II re

gard

ing

the

audi

ts in

que

stio

n.

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e en

clos

ed re

plie

s (se

e A

nnex

II) t

o th

e Eu

rope

an C

ourt

of A

udito

rs c

onta

in c

ount

er-a

rgum

ents

con

cern

ing

the

findi

ngs o

n th

e ac

tion

of th

e pa

ying

age

ncie

s. Po

land

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

8/08

/201

5 A

udits

are

per

form

ed b

y th

e C

ourt

of A

udito

rs in

the

year

afte

r the

app

licat

ion

is su

bmitt

ed. A

utom

atic

ad

min

istra

tive

chec

ks o

n pa

ymen

t app

licat

ions

are

car

ried

out f

or a

ll fa

rmer

s on

the

basi

s of t

he in

form

atio

n in

79

the

refe

renc

e da

taba

se. T

he L

PIS

refe

renc

e da

taba

se is

upd

ated

on

the

basi

s of t

he re

sults

of o

n-th

e-sp

ot c

heck

s bu

t, ab

ove

all,

new

orth

opho

to m

aps w

hich

, acc

ordi

ng to

the

JRC

gui

delin

es (I

PSC

/G03

/P/S

KA

/ska

(200

4)

(257

5P) s

houl

d be

upd

ated

at l

east

eve

ry 5

yea

rs. O

rthop

hoto

map

s are

upd

ated

eve

ry 3

yea

rs in

Pol

and.

In

the

light

of t

he a

bove

, aud

its b

y th

e C

ourt

of A

udito

rs m

ay a

sses

s app

licat

ions

with

refe

renc

e to

ci

rcum

stan

ces w

hich

diff

er fr

om th

ose

obta

inin

g in

the

year

in w

hich

they

wer

e ex

amin

ed. A

ny ir

regu

larit

ies

dete

cted

in th

e co

urse

of E

CA

aud

its w

ill b

e ta

ken

into

acc

ount

whe

n pr

oces

sing

app

licat

ions

from

the

ECA

au

dit y

ear a

nd, i

n ju

stifi

ed c

ases

, an

inve

stig

atio

n co

verin

g th

e pr

evio

us y

ears

is c

ondu

cted

, whi

ch c

ould

resu

lt in

reco

very

pro

ceed

ings

bei

ng in

stitu

ted

for o

verp

aym

ents

. Sl

ovak

ia: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 30/

11/2

015

The

Min

istry

of A

gric

ultu

re a

nd R

ural

Dev

elop

men

t not

es th

at o

n-th

e-sp

ot c

heck

s wer

e ca

rrie

d ou

t at t

he

appl

ican

ts c

once

rned

and

that

, whe

re in

frin

gem

ents

wer

e fo

und,

the

paym

ents

wer

e ad

just

ed b

y th

e re

leva

nt

redu

ctio

n/w

ithdr

awal

or b

y ex

clus

ion

for p

urpo

ses o

f cro

ss-c

ompl

ianc

e or

elig

ibili

ty c

ondi

tions

. Sp

ain:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

3 Ju

ly 2

015

CA

STIL

E-LA

MA

NC

HA

: The

und

ue p

aym

ent f

or th

e m

otoc

ross

trac

k w

as d

etec

ted

by th

e C

astil

e-La

Man

cha

payi

ng a

genc

y as

a re

sult

of a

LPI

S-G

IS im

prov

emen

t mea

sure

, nam

ely

mea

sure

9-1

0 (r

etro

activ

ity) w

hich

m

akes

it p

ossi

ble

to d

etec

t und

ue p

aym

ents

due

to L

PIS-

GIS

cha

nge

of u

se a

fter c

ompa

ring

the

begi

nnin

g an

d en

d of

yea

r cac

hes.

This

circ

uit a

ppea

red

as u

npro

duct

ive

in th

e LP

IS-G

IS b

efor

e th

e EC

A, w

hich

allo

wed

us

to id

entif

y th

e un

due

paym

ent.

Furth

erm

ore,

inel

igib

le a

reas

wer

e de

tect

ed b

y ap

plyi

ng th

e pa

stur

e el

igib

ility

co

effic

ient

to a

per

man

ent p

astu

re p

arce

l. A

s a re

sult

of th

ese

findi

ngs,

on 2

3 Ju

ly 2

015

a re

imbu

rsem

ent

requ

est d

ecis

ion

amou

ntin

g to

EU

R -1

3 77

2.74

was

sent

. U

nite

d K

ingd

om: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: W

here

ove

r-de

clar

ed la

nd is

est

ablis

hed

the

UK

take

s the

nec

essa

ry re

cove

ry a

ctio

n.

Box

7.2

. Ex

ampl

es o

f cro

ss-

com

plia

nce

erro

rs

Bel

gium

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

1/01

/201

5 D

enm

ark:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

An

enqu

iry h

as b

een

sent

to th

e C

omm

issi

on re

gard

ing

the

inte

rpre

tatio

n of

the

EU ru

les o

n cr

oss-

com

plia

nce

80

chec

ks.

Est

onia

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

015

Fr

ance

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Les a

utor

ités f

ranç

aise

s con

sidè

rent

com

me

la C

omm

issi

on q

ue le

resp

ect d

es rè

gles

en

mat

ière

de

cond

ition

nalit

é ne

con

stitu

e pa

s un

critè

re d

'élig

ibili

té e

t que

les r

éduc

tions

app

liqué

es e

n co

nséq

uenc

e ne

de

vrai

ent p

as ê

tre p

rises

en

com

pte

pour

le c

alcu

l des

taux

d'er

reur

. Par

aill

eurs

, con

cern

ant l

e no

n-re

spec

t de

l'ER

MG

7 ("

iden

tific

atio

n et

enr

egis

trem

ent d

es b

ovin

s") l

es a

utor

ités f

ranç

aise

s pré

cise

nt q

ue la

mét

hode

ad

opté

e pa

r la

Cou

r dan

s ses

aud

its (c

ontrô

le d

u re

spec

t des

dél

ais d

e no

tific

atio

n su

r l'en

sem

ble

de la

pér

iode

du

1er

janv

ier a

u 31

déc

embr

e) n

'est p

as re

prod

uctib

le lo

rs d

u co

ntrô

le su

r pla

ce p

ar l'

orga

nism

e pa

yeur

(qui

ef

fect

ue le

con

trôle

pou

r la

pério

de d

u 1e

r jan

vier

à la

dat

e du

con

trôle

). G

erm

any:

act

ion

take

n: N

O ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

resp

onsi

ble

auth

oriti

es p

oint

out

that

the

Com

mis

sion

alre

ady

poss

esse

s the

requ

este

d in

form

atio

n, b

ut th

e re

plie

s of t

he a

udite

d au

thor

ity a

re re

itera

ted

belo

w:

The

anal

ysis

of t

he fi

ndin

gs a

nd th

e co

nseq

uenc

es d

eriv

ed fr

om th

em re

gard

ing

the

erro

r are

inco

rrec

t, in

the

view

of t

he p

ayin

g ag

ency

for B

avar

ia.

In it

s inf

orm

ativ

e no

te 2

011/

5, th

e Eu

rope

an C

omm

issi

on h

ad in

timat

ed th

at A

rticl

e 70

(4) o

f Reg

ulat

ion

(EC

) N

o 11

22/2

009

was

not

app

licab

le to

any

feed

back

from

the

cattl

e da

taba

se, s

ince

infr

inge

men

ts h

ad to

be

dete

rmin

ed b

y m

eans

of o

n-th

e-sp

ot in

spec

tions

in o

rder

to a

sses

s the

farm

er’s

com

plia

nce

with

the

rele

vant

le

gal r

equi

rem

ent a

s a w

hole

and

not

onl

y on

the

basi

s of i

nfor

mat

ion

issu

ed fr

om th

e da

taba

se. T

his m

ust

appl

y al

l the

mor

e if

the

bovi

ne d

atab

ase

does

not

pro

vide

any

aut

omat

ic fe

edba

ck.

In p

artic

ular

, it s

houl

d be

not

ed th

at sa

nctio

ning

on

the

sole

bas

is o

f a d

atab

ase

quer

y is

not

pos

sibl

e in

cro

ss-

com

plia

nce

case

s, si

nce

it ha

s to

be e

stab

lishe

d fo

r eac

h in

frin

gem

ent w

heth

er th

e fa

rmer

was

at f

ault.

As a

ru

le, t

his c

an o

nly

be a

scer

tain

ed b

y m

eans

of a

n on

-the-

spot

insp

ectio

n. T

he sa

me

appl

ies,

for e

xam

ple,

to

fals

e in

form

atio

n en

tere

d in

the

data

base

. It

is p

oint

ed o

ut, m

oreo

ver,

that

the

eval

uatio

n of

the

Live

stoc

k Id

entif

icat

ion

and

Reg

istra

tion

Syst

em (H

IT)

data

base

by

the

payi

ng a

genc

y as

requ

este

d by

the

ECA

con

stitu

tes a

form

of a

dmin

istra

tive

cont

rol.

The

lega

l

81

posi

tion

unde

rlyin

g th

e EC

A’s

obj

ectio

n is

con

trary

to A

rticl

e 49

of R

egul

atio

n (E

C) N

o 11

22/2

009,

und

er

whi

ch M

embe

r Sta

tes “

may

dec

ide

to c

arry

out

adm

inis

trativ

e co

ntro

ls”

and

may

det

erm

ine

thei

r ext

ent.

In

acco

rdan

ce w

ith a

lega

lly v

alid

def

initi

on o

f the

scop

e of

Arti

cle

49 o

f Reg

ulat

ion

(EC

) No

1122

/200

9, su

ch

adm

inis

trativ

e ch

ecks

are

not

con

duct

ed in

the

Länd

er a

udite

d by

the

ECA

in c

ross

-com

plia

nce

case

s.

In a

dditi

on, i

n th

e vi

ew o

f the

Bav

aria

n pa

ying

age

ncy,

whi

le a

n on

-the-

spot

insp

ectio

n co

nduc

ted

in 2

014

may

es

tabl

ish

that

par

ticul

ar in

frin

gem

ents

of t

he le

gisl

ativ

e ac

t on

bovi

ne id

entif

icat

ion

wer

e al

read

y be

ing

com

mitt

ed in

201

3, it

is n

ot p

ossi

ble

to a

sses

s the

se 2

013

infr

inge

men

ts re

trosp

ectiv

ely.

Th

e re

porte

d ca

ttle

are

ente

red

in th

e st

ock

regi

ster

in th

e H

IT d

atab

ase

that

is a

vaila

ble

to a

udito

rs a

s a b

asis

fo

r the

ir au

dits

. Onl

y an

on-

the-

spot

insp

ectio

n, h

owev

er, w

hich

ver

ifies

info

rmat

ion

such

as t

he n

umbe

r of

cattl

e ac

tual

ly h

eld

and

com

pare

s thi

s with

the

figur

e in

the

offic

ial s

tock

retu

rn, c

an e

stab

lish

the

size

of t

he

disc

repa

ncy

and

henc

e th

e gr

avity

of t

he n

on-c

ompl

ianc

e. M

oreo

ver,

an a

sses

smen

t of i

nfrin

gem

ents

mus

t tak

e ac

coun

t of a

ll fa

ctor

s tha

t lea

d to

an

incr

ease

or d

ecre

ase

in th

e ap

plic

able

fund

ing

redu

ctio

ns. T

hese

fact

ors a

re

likew

ise

asce

rtain

able

by

sole

mea

ns o

f an

on-th

e-sp

ot in

spec

tion.

Fu

rther

mor

e, th

e C

omm

issi

on a

lso

cons

ider

s tha

t the

re a

re n

o gr

ound

s for

incl

udin

g cr

oss-

com

plia

nce

infr

inge

men

ts in

the

calc

ulat

ion

of th

e er

ror r

ate

for s

tate

men

ts o

f ass

uran

ce. I

n th

is c

onte

xt, w

e ve

ntur

e to

cite

th

e fo

llow

ing

to th

e C

omm

issi

on:

“Mos

t of t

he c

ross

-com

plia

nce

requ

irem

ents

, i.e

. the

SM

Rs,

are

to b

e re

spec

ted

by a

ll EU

citi

zens

, irr

espe

ctiv

ely

of b

eing

a fa

rmer

ben

efiti

ng fr

om E

U su

ppor

t und

er th

e C

AP.

The

resp

ect o

f cro

ss-c

ompl

ianc

e do

es n

ot c

onst

itute

an

elig

ibili

ty c

riter

ion

and,

ther

efor

e, th

e co

ntro

ls o

f the

se re

quire

men

ts d

o no

t per

tain

to th

e le

galit

y an

d re

gula

rity

of th

e un

derly

ing

trans

actio

ns. F

arm

ers n

ot re

spec

ting

the

requ

irem

ents

are

ent

itled

to

rece

ive

thei

r pay

men

ts, b

ut a

re sa

nctio

ned

on th

e ba

sis o

f the

seve

rity,

ext

ent,

perm

anen

ce a

nd re

petit

ion

of th

e no

n-co

mpl

ianc

e fo

und

as w

ell a

s neg

ligen

ce o

r int

ent o

f the

farm

er c

once

rned

. Thi

s is a

lso

show

n by

the

fact

th

at p

aym

ents

can

be

mad

e be

fore

the

cros

s-co

mpl

ianc

e co

ntro

ls h

ave

been

com

plet

ed a

nd th

at p

enal

ties a

re

not a

pplie

d on

the

paym

ents

mad

e in

resp

ect o

f the

cal

enda

r yea

r whe

n th

e fa

rmer

faile

d to

com

ply

with

the

requ

irem

ents

, but

rath

er o

n th

e pa

ymen

ts m

ade

in re

spec

t of t

he c

alen

dar y

ear o

f the

find

ings

by

the

natio

nal

auth

oriti

es.

For a

ll th

ese

reas

ons,

the

Com

mis

sion

doe

s not

itse

lf ta

ke v

iola

tion

of c

ross

-com

plia

nce

oblig

atio

ns in

to

acco

unt i

n th

e ca

lcul

atio

n of

the

leve

l of e

rror

for i

ts o

wn

stat

emen

t of a

ssur

ance

” (c

f. O

ffic

ial J

ourn

al o

f the

Eu

rope

an U

nion

201

2/C

344

/1 E

N, p

oint

s 4.1

6 to

4.1

8).

82

Hun

gary

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

1.01

.201

5 Si

nce

the

erro

r ide

ntifi

ed h

as a

lread

y be

en c

orre

cted

and

is o

nly

of m

argi

nal s

igni

fican

ce to

ani

mal

hea

lth/fo

od

safe

ty, H

unga

ry h

as a

pplie

d th

e ea

rly w

arni

ng m

etho

d, o

r 1 %

sanc

tioni

ng, s

ince

the

2015

aud

it ye

ar in

resp

ect

of th

e no

n-co

mpl

ianc

e co

ncer

ned,

taki

ng a

ccou

nt o

f the

rate

of t

imel

y an

d la

te re

porti

ng a

s wel

l as t

he a

vera

ge

num

ber o

f day

s in

dela

y.

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e en

clos

ed re

plie

s (se

e A

nnex

II) t

o th

e Eu

rope

an C

ourt

of A

udito

rs c

onta

in c

ount

er-a

rgum

ents

con

cern

ing

the

findi

ngs o

n th

e ac

tion

of th

e pa

ying

age

ncie

s. N

ethe

rlan

ds: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: Not

app

licab

le

In re

spon

se to

the

lette

r set

ting

out t

he fi

ndin

gs o

f DA

S201

4 EA

GF,

the

Net

herla

nds s

tate

d th

at it

did

not

shar

e th

e C

ourt

of A

udito

rs’ v

iew

. The

Dut

ch a

utho

ritie

s use

the

data

from

the

cattl

e id

entif

icat

ion

and

regi

stra

tion

(I&

R) s

yste

m in

the

risk

anal

ysis

that

they

car

ry o

ut w

ith a

vie

w to

rand

om te

stin

g fo

r com

plia

nce

with

m

anag

emen

t req

uire

men

t 7. T

he re

ason

the

data

is n

ot u

sed

dire

ctly

is th

at th

e ap

pare

nt in

frin

gem

ents

id

entif

ied

can

not b

e at

tribu

ted

auto

mat

ical

ly to

the

farm

er c

once

rned

. Po

land

: act

ion

take

n: N

O ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

Acc

ordi

ng to

Com

mis

sion

not

ice

2011

/5, i

rreg

ular

ities

mus

t be

dete

cted

by

an o

n-th

e-sp

ot in

spec

tion

cond

ucte

d in

ord

er to

ass

ess o

vera

ll co

mpl

ianc

e by

the

farm

er w

ith th

e le

gal r

equi

rem

ent,

and

not m

erel

y on

th

e ba

sis o

f sig

nals

from

the

data

base

. In

term

s of t

he re

quire

men

t to

subm

it an

imal

not

ifica

tions

on

time,

two

irreg

ular

ities

are

pos

sibl

e: la

ck o

f no

tific

atio

n or

late

not

ifica

tion.

In th

e lig

ht o

f the

abo

ve, i

nfor

mat

ion

on e

rror

s gen

erat

ed b

y th

e sy

stem

for t

he

iden

tific

atio

n an

d re

gist

ratio

n of

ani

mal

s doe

s not

con

stitu

te e

vide

nce

of a

n irr

egul

arity

bec

ause

, acc

ordi

ng to

C

omm

issi

on n

otic

e 20

11/5

, irr

egul

ariti

es m

ust b

e de

tect

ed b

y an

on-

the-

spot

insp

ectio

n co

nduc

ted

in o

rder

to

asse

ss o

vera

ll co

mpl

ianc

e by

the

farm

er w

ith th

e le

gal r

equi

rem

ent,

and

not m

erel

y on

the

basi

s of s

igna

ls fr

om

the

data

base

. In

addi

tion,

in o

rder

to p

rope

rly a

sses

s com

plia

nce

with

the

requ

irem

ent t

o su

bmit

anim

al

notif

icat

ions

on

time,

an

on-th

e-sp

ot in

spec

tion

mus

t be

cond

ucte

d in

whi

ch c

heck

s are

car

ried

out o

n ca

ses

83

whe

re n

otifi

catio

ns w

ere

subm

itted

late

and

cas

es w

here

not

ifica

tions

wer

e no

t sub

mitt

ed a

t all.

Whe

re a

n on

-th

e-sp

ot in

spec

tion

reve

als i

rreg

ular

ities

whi

ch o

ccur

red

in th

e ca

lend

ar y

ear i

n w

hich

the

insp

ectio

n w

as

carr

ied

out,

thes

e irr

egul

ariti

es a

re a

sses

sed

by th

e in

spec

tion

body

, on

the

basi

s of w

hich

a re

duct

ion

may

be

gran

ted

if ap

prop

riate

. Sl

ovak

ia: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e M

inis

try o

f Agr

icul

ture

and

Rur

al D

evel

opm

ent n

otes

that

Aud

it PF

-662

9 es

tabl

ishe

d th

e fo

llow

ing:

As

rega

rds n

on-c

ompl

ianc

e w

ith P

H 8

(Lat

e re

porti

ng o

f mov

emen

ts in

the

regi

ster

of o

vine

and

cap

rine

anim

als)

, th

e Sl

ovak

aut

horit

ies t

old

audi

tors

from

the

Cou

rt of

Aud

itors

that

the

reci

pien

t of t

he a

nim

als w

as li

able

for

non-

com

plia

nce

with

obl

igat

ions

to re

port

chan

ges w

ithin

seve

n da

ys a

nd th

at th

e be

nefic

iary

had

no

bear

ing

on th

is. U

nder

nat

iona

l leg

isla

tion

and

appl

icab

le g

uide

lines

, it i

s onl

y th

e re

cipi

ent o

f the

ani

mal

s who

not

ifies

and

is h

eld

sole

ly li

able

for r

epor

ting

– th

eir m

ovem

ents

with

in se

ven

days

. The

evi

denc

e to

ok th

e fo

rm o

f ac

know

ledg

emen

t of a

doc

umen

t sub

mitt

ed d

urin

g th

e in

spec

tion

(pos

tal c

harg

es a

s evi

denc

e). T

he in

spec

ted

bene

ficia

ry h

ad c

ompl

ied

with

this

obl

igat

ion

and

had

dem

onst

rabl

y pr

oved

that

not

ifica

tion

had

been

sent

w

ithin

seve

n da

ys. I

n th

is re

spec

t, th

e be

nefic

iary

was

not

foun

d to

hav

e in

frin

ged

cros

s-co

mpl

ianc

e co

nditi

ons.

The

audi

tors

from

the

Cou

rt of

Aud

itors

acc

epte

d th

is e

xpla

natio

n by

the

Slov

ak a

utho

ritie

s and

rem

oved

this

fin

ding

. Sp

ain:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

findi

ng w

as a

ccep

ted

and

the

appr

opria

te sa

nctio

n ap

plie

d.

7.23

.Er

rors

in th

e ad

min

istra

tive

proc

essi

ng o

f aid

app

licat

ions

by th

e na

tiona

l aut

horit

ies

and

two

case

s whe

re th

e

bene

ficia

ry o

r the

Fran

ce: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: déc

embr

e 20

15

Con

cern

ant l

e dé

pass

emen

t du

plaf

ond

de d

roits

à p

aiem

ent u

niqu

e, le

s aut

orité

s fra

nçai

ses o

nt p

rocé

dé a

u re

calc

ul d

es v

aleu

rs d

es d

roits

dan

s le

cadr

e du

pla

n d'

actio

n FE

AG

A. C

e ch

ange

men

t ser

a ef

fect

if à

parti

r de

l'exe

rcic

e fin

anci

er 2

015

(cam

pagn

e d'

aide

s 201

4) à

la su

ite d

'un

arrê

té fi

xant

le c

oeff

icie

nt a

ppliq

ué à

la v

aleu

r de

s dro

its a

dopt

é en

avr

il 20

14.

S’ag

issa

nt d

u ca

s vis

é au

poi

nt 7

.3, l

es a

utor

ités f

ranç

aise

s ont

con

test

é le

con

stat

de

faus

se d

écla

ratio

n et

84

expe

nditu

re w

ere

not e

ligib

le

for E

U a

id

d’in

élig

ilité

de

la d

épen

se c

once

rnée

. Elle

s ont

reco

nnue

s, au

cas

par

ticul

ier d

u do

ssie

r aud

ité, q

u’il

aura

it ét

é pr

éfér

able

, sui

te a

ux in

terr

ogat

ions

susc

itées

à ré

cept

ion

du d

evis

initi

al, d

e tra

cer s

ur c

elui

-ci l

es ré

pons

es

appo

rtées

par

le fo

urni

sseu

r (po

ste

de d

épen

ses f

igur

ant s

ur le

dev

is m

ais n

on p

rises

en

com

pte

dans

le m

onta

nt

tota

l de

celu

i-ci p

uisq

ue fa

isan

t l’o

bjet

d’u

ne re

mis

e co

mm

erci

ale)

, plu

tôt q

ue d

e ré

cept

ionn

er u

n se

cond

dev

is

iden

tique

en

mon

tant

mai

s sur

lequ

el la

men

tion

rela

tive

à l’e

nlèv

emen

t de

l’anc

ien

mat

érie

l ava

it di

spar

u.

Elle

s ont

par

aill

eurs

soul

igné

que

les a

utor

ités c

omm

unau

taire

s ne

peuv

ent i

gnor

er la

réal

ité d

es p

ratiq

ues

écon

omiq

ues q

ui p

euve

nt c

ondu

ire le

s fou

rnis

seur

s à a

ccor

der d

es re

mis

es c

omm

erci

ales

. Le

s mes

ures

pris

es a

u ni

veau

nat

iona

l ont

con

sist

é à

exig

er d

es d

eman

deur

s que

les p

rest

atio

ns o

u la

four

nitu

re

de m

atér

iels

réal

isés

à ti

tre g

ratu

it so

ient

cla

irem

ent i

dent

ifiés

com

me

telle

s sur

les d

evis

par

l’ap

posi

tion

de la

m

entio

n «

réal

isée

(s) à

titre

gra

cieu

x »

ou «

offe

rte(s

) » su

r les

trav

aux

ou fo

urni

ture

s con

cern

ées.…

)

Box

7.3

. Ex

ampl

e of

a p

aym

ent f

or

inel

igib

le e

xpen

ditu

re

Pola

nd: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: A

n an

alys

is o

f the

ent

ry in

‘Box

7.3

- Ex

ampl

e of

a p

aym

ent f

or in

elig

ible

exp

endi

ture

’ and

the

entri

es in

A

nnex

II d

oes n

ot c

lear

ly in

dica

te to

whi

ch fi

ndin

gs in

Ann

ex II

the

follo

win

g se

nten

ce re

fers

: A c

ase

whe

re

aid

was

pai

d to

an

inel

igib

le b

enef

icia

ry w

as fo

und

in P

olan

d. F

urth

erm

ore,

this

sent

ence

doe

s not

refle

ct th

e bo

x he

adin

g, w

hich

con

cern

s ine

ligib

le e

xpen

ditu

re, n

ot a

n in

elig

ible

ben

efic

iary

. Th

ere

are

no fi

ndin

gs in

Ann

ex II

whi

ch c

lear

ly in

dica

te th

at fu

nds w

ere

paid

to a

n in

elig

ible

ben

efic

iary

. Th

ere

are

findi

ngs i

n A

nnex

II w

hich

con

cern

inel

igib

le e

xpen

ditu

re, n

amel

y:

Cha

pter

7 -

Nat

ural

re

sour

ces

PF 6

748

14.P

.NR

2.15

24-0

2 In

elig

ible

cos

ts. N

on-

com

plia

nce

with

priv

ate

proc

urem

ent p

roce

dure

s. W

eakn

esse

s in

adm

inis

trativ

e ch

ecks

.

1,03

6,65

6.75

0.03

Thes

e fin

ding

s rel

ate

to M

easu

re 1

23 o

f the

RD

P an

d re

fer t

o EC

A fi

ndin

gs u

nder

the

head

ing:

Inel

igib

le c

osts

. Non

-co

mpl

ianc

e w

ith p

rivat

e pr

ocur

emen

t pro

cedu

res.

Wea

knes

ses i

n ad

min

istra

tive

chec

ks.

Box

7.5

. Ex

ampl

e of

non

-com

plia

nce

with

agr

i-env

ironm

ent

com

mitm

ents

Ger

man

y: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e re

spon

sibl

e au

thor

ities

poi

nt o

ut th

at th

e C

omm

issi

on a

lread

y po

sses

ses t

he re

ques

ted

info

rmat

ion.

It

aly:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

85

The

encl

osed

repl

ies (

see

Ann

ex II

) to

the

Euro

pean

Cou

rt of

Aud

itors

con

tain

cou

nter

-arg

umen

ts c

once

rnin

g th

e fin

ding

s on

the

actio

n of

the

payi

ng a

genc

ies.

Uni

ted

Kin

gdom

: act

ion

take

n:Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

findi

ng w

as a

ccep

ted

and

the

appr

opria

te sa

nctio

n ap

plie

d.

Box

7.6

. Ex

ampl

e of

non

-res

pect

of

publ

ic p

rocu

rem

ent r

ules

B

ulga

ria:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 1

2 Se

ptem

ber 2

014

Min

istry

of A

gric

ultu

re a

nd F

ood

(MZH

): A

men

dmen

ts h

ave

been

mad

e to

the

oper

atin

g pr

oced

ures

, rel

atin

g to

an

ex a

nte

and

ex p

ost c

heck

on

the

publ

ic p

rocu

rem

ent p

roce

dure

s car

ried

out b

y th

e be

nefic

iarie

s of t

he

Rur

al D

evel

opm

ent P

rogr

amm

e (R

DP)

. Afte

r com

plet

ing

anal

yses

rela

ted

to th

e id

entif

ied

erro

rs, t

he S

tate

Fu

nd fo

r Agr

icul

ture

(DFZ

) dre

w u

p gu

idel

ines

for t

he b

enef

icia

ries,

with

the

aim

of i

mpr

ovin

g th

e pr

oces

s of

carr

ying

out

pub

lic p

rocu

rem

ent p

roce

dure

s whe

n se

lect

ing

cont

ract

ors t

o ca

rry

out a

ctiv

ities

und

er th

e R

DP.

A

subs

eque

nt p

roce

dure

has

bee

n de

vise

d fo

r ass

essi

ng th

e cr

iteria

und

er th

e Pu

blic

Pro

cure

men

t Act

(ZO

P)

prio

r to

paym

ent.

At t

he m

omen

t, an

ent

irely

new

Pub

lic P

rocu

rem

ent A

ct is

bei

ng d

rafte

d, w

hich

will

redu

ce

sign

ifica

ntly

the

rate

of e

rror

s whe

n ca

rryi

ng o

ut te

nder

pro

cedu

res.

A

udit

Off

ice:

A re

port

has b

een

publ

ishe

d on

the

web

site

of t

he B

ulga

rian

Nat

iona

l Aud

it O

ffic

e en

title

d ‘A

naly

sis o

f the

err

ors i

n ap

plyi

ng E

urop

ean

and

natio

nal p

ublic

pro

cure

men

t reg

ulat

ions

und

er S

truct

ural

Fu

nds p

rogr

amm

es’,

adop

ted

by th

e C

onta

ct C

omm

ittee

of t

he H

eads

of S

upre

me

Aud

it In

stitu

tions

of t

he

Euro

pean

Uni

on a

nd th

e EC

A a

t a m

eetin

g he

ld in

Rig

a, L

atvi

a on

19

June

201

5. T

he re

port

cont

ains

a

sum

mar

y of

the

mai

n re

ason

s res

ultin

g in

non

-com

plia

nce

with

the

publ

ic p

rocu

rem

ent p

roce

dure

regu

latio

ns

for p

roje

cts c

o-fin

ance

d m

ainl

y by

the

Euro

pean

Soc

ial F

und

and

the

Euro

pean

Fun

d fo

r Reg

iona

l D

evel

opm

ent a

nd, i

n ra

re in

stan

ces,

by th

e C

ohes

ion

Fund

(h

ttps:

//ww

w.b

ulna

o.go

vern

men

t.bg/

bg/a

rticl

es/k

onta

kten

-kom

itet-n

a-vo

i-ot-e

s-i-e

sp-8

1).

Fran

ce: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: Le

s aut

orité

s fra

nçai

ses,

dans

le c

adre

de

leur

pla

n d'

actio

n Fe

ader

, ont

pré

vu d

es d

ispo

sitio

ns re

lativ

es a

u co

ntrô

le d

es m

arch

és p

ublic

s dan

s une

not

e du

18

octo

bre

2012

rela

tive

aux

cont

rôle

s des

mes

ures

du

déve

lopp

emen

t rur

al p

our l

es a

ctio

ns im

mat

érie

lles.

Il es

t pré

vu q

ue le

s mar

chés

au-

delà

d’u

n se

uil d

e 20

000

eu

ros s

ont p

rése

ntés

par

l'in

stru

cteu

r du

doss

ier F

eade

r au

cont

rôle

de

léga

lité

effe

ctué

par

les s

ervi

ces

préf

ecto

raux

, qui

com

pren

d no

tam

men

t des

vér

ifica

tions

con

cern

ant l

a sé

lect

ion

des o

ffre

s. U

n tra

çage

du

86

cont

rôle

est

pré

vu. V

oir a

nnex

e II

I, qu

estio

ns 3

.5 e

t 3.6

. G

erm

any:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

The

Com

mis

sion

alre

ady

poss

esse

s the

act

ion

plan

of t

he E

AFR

D p

ayin

g ag

ency

for S

axon

y-A

nhal

t, re

flect

ing

the

situ

atio

n as

of O

ctob

er 2

015.

G

reec

e: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: It

aly:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

encl

osed

repl

ies (

see

Ann

ex II

) to

the

Euro

pean

Cou

rt of

Aud

itors

con

tain

cou

nter

-arg

umen

ts c

once

rnin

g th

e fin

ding

s on

the

actio

n of

the

payi

ng a

genc

ies.

Net

herl

ands

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: O

ngoi

ng

For f

urth

er in

form

atio

n se

e th

e D

utch

act

ion

plan

for t

he e

rror

rate

in ru

ral d

evel

opm

ent,

lette

r ref

. R

VO

/201

5/84

2, 2

7 O

ctob

er 2

015.

Po

land

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: A

pril

2014

Th

e ca

se w

as re

-exa

min

ed b

y th

e Im

plem

entin

g A

utho

rity

(pro

vinc

ial g

over

nmen

t). T

he p

ositi

on w

as

subm

itted

by

way

of a

n ex

plan

ator

y m

emor

andu

m to

the

prel

imin

ary

repo

rt. W

e m

aint

ain

this

pos

ition

on

the

grou

nds t

hat n

o er

rors

occ

urre

d w

hich

aff

ecte

d th

e ou

tcom

e of

pro

ceed

ings

. A

s par

t of t

rain

ing

for i

mpl

emen

ting

auth

oriti

es, i

nfor

mat

ion

is p

rovi

ded

on e

rror

s mad

e by

ben

efic

iarie

s in

publ

ic p

rocu

rem

ent p

roce

dure

s. In

the

2014

-20

prog

ram

min

g pe

riod

a sc

hedu

le (‘

tary

fikat

or’)

was

intro

duce

d w

here

by p

enal

ties f

or b

enef

icia

ries c

ould

be

mod

ulat

ed a

ccor

ding

to th

e ty

pe o

f inf

ringe

men

t of t

he p

ublic

pr

ocur

emen

t rul

es in

volv

ed, a

nd n

ot o

nly

for i

nfrin

gem

ents

whi

ch a

ffec

ted

the

outc

ome

of p

roce

edin

gs.

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

AFI

R- S

ee A

FIR

Rep

ly N

o 31

690

of 1

7 Se

ptem

ber 2

014

(atta

ched

) con

cern

ing

the

com

men

ts

mad

e by

the

ECA

aud

itors

follo

win

g th

e au

dit m

issi

on fo

r the

Sta

tem

ent o

f Ass

uran

ce

87

for f

inan

cial

yea

r 201

4 (D

AS

2014

) – P

F631

4: a

udit

of th

e ex

pend

iture

rela

ted

to E

AFR

D, m

issi

on

cond

ucte

d be

twee

n 12

and

16

May

201

4 an

d A

FIR

Rep

ly N

o 14

283

of 1

7 A

pril

2015

(atta

ched

) co

ncer

ning

the

com

men

ts m

ade

by th

e EC

A a

udito

rs fo

llow

ing

the

audi

t mis

sion

for t

he S

tate

men

t of

Ass

uran

ce fo

r fin

anci

al y

ear 2

014

(DA

S 20

14) –

PF6

754:

aud

it of

the

expe

nditu

re re

late

d to

EA

FRD

, m

issi

on c

arrie

d ou

t fro

m 1

7 to

21

Nov

embe

r 201

4.

Oth

er c

omm

ents

: MEF

- D

CSM

- B

CM

AP

The

natio

nal p

ublic

pro

cure

men

t stra

tegy

for t

he p

erio

d 20

15-2

020

incl

udes

act

ions

to

ens

ure

the

regu

larit

y an

d qu

ality

of t

he p

ublic

pro

cure

men

t pro

cess

. One

of t

he m

easu

res a

imed

a

t ach

ievi

ng th

is o

bjec

tive

is th

e de

velo

pmen

t and

stre

ngth

enin

g of

inte

rnal

con

trol a

t the

c

ontra

ctin

g au

thor

ities

by:

ada

ptin

g th

e in

tern

al c

ontro

l sta

ndar

ds in

the

pro

cure

men

t are

a, is

suin

g gu

idel

ines

/gui

danc

e on

the

inte

rnal

con

trol s

yste

m, i

mpr

ovin

g th

e ef

ficie

ncy

of p

reve

ntiv

e fin

anci

al c

ontro

l rel

ated

to p

ublic

pro

cure

men

t, pr

ovid

ing

train

ing

prog

ram

mes

fo

r sta

ff c

arry

ing

out f

inan

cial

con

trol i

n pu

blic

pro

cure

men

t. Th

e in

tern

al c

ontro

l pro

cess

will

incl

ude

at le

ast t

he fo

llow

ing

stag

es: p

rocu

rem

ent p

repa

ratio

n, d

rafti

ng o

f the

aw

ard

docu

men

tatio

n, c

ondu

ct o

f the

aw

ard

proc

edur

e, a

nd c

ontra

ct im

plem

enta

tion.

It w

ill b

e or

gani

sed

in

such

a w

ay a

s to

enab

le e

xter

nal c

ontro

l foc

used

on

subs

tant

ive

issu

es. T

he d

evel

opm

ent o

f thi

s typ

e of

inte

rnal

co

ntro

l wou

ld si

gnifi

cant

ly re

duce

, fro

m a

n ea

rly st

age,

the

risk

of ir

regu

larit

ies a

nd e

rror

s and

wou

ld e

nsur

e th

e ac

hiev

emen

t of t

he c

ontra

ctin

g au

thor

ities

’ obj

ectiv

e of

get

ting

the

best

val

ue fo

r mon

ey.

The

inte

rnal

con

trol s

yste

m w

ill a

lso

incl

ude

a po

licy

docu

men

t on

conf

licts

of i

nter

est.

Spai

n: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: 1 A

pril

2016

Th

e ad

opte

d m

easu

re w

ill e

nd w

ith th

e co

rrec

t allo

catio

n of

the

defin

itive

bas

ic p

aym

ent e

ntitl

emen

ts in

Apr

il 20

16 b

ased

on

the

new

est

imat

e of

elig

ible

are

a.

7.

37.

Mem

ber S

tate

s' sy

stem

s re

late

d to

regu

larit

y of

EA

GF

trans

actio

ns

Cro

atia

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 0

1/03

/201

5 A

ll of

the

Cou

rt’s f

indi

ngs a

re a

ccep

ted,

and

act

ion

has b

een

take

n to

add

ress

the

shor

tcom

ings

det

aile

d in

A

nnex

II.

Box

7.7

. M

embe

r Sta

tes i

n w

hich

B

ulga

ria:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te: 2

011

88

rem

edia

l act

ion

conc

erni

ng

LPIS

wea

knes

ses w

as

satis

fact

ory

ZH (M

inis

try o

f Agr

icul

ture

and

Foo

d): T

he im

plem

enta

tion

of th

e ac

tion

plan

for t

he p

erio

d 20

09 to

201

1 le

d to

impr

ovem

ents

in th

e LP

IS. T

he S

tate

Fun

d fo

r Agr

icul

ture

’s ‘T

echn

ical

Insp

ecto

rate

’ sub

mits

figu

res t

o th

e M

ZH to

upd

ate

the

LPIS

ann

ually

afte

r the

end

of t

he o

n-th

e-sp

ot c

heck

cam

paig

n.

Port

ugal

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

obse

rvat

ion

is in

line

with

fact

s and

doe

s not

requ

ire c

omm

ent.

How

ever

, it s

houl

d be

not

ed th

at th

e fin

ding

s con

firm

Por

tuga

l's e

ffor

ts in

the

impl

emen

tatio

n of

cor

rect

ive

mea

sure

s. R

oman

ia: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: PI

AA

, thr

ough

the

mea

sure

s tak

en to

upd

ate

the

LPIS

on

the

basi

s of n

ew im

ager

y, to

upd

ate

follo

win

g th

e on

-th

e-sp

ot c

heck

, to

upda

te b

ased

on

the

notif

icat

ions

mad

e by

the

farm

ers,

ensu

res p

erm

anen

tly th

at th

e re

fere

nce

area

s are

elig

ible

for p

aym

ent.

Mor

eove

r, EC

A it

self,

in it

s let

ter o

f 30

July

201

5 (R

1057

765R

O01

-15

BB

-PF-

6954

-DA

S14)

stat

ed th

at ‘h

avin

g re

gard

to a

ll th

e fin

ding

s m

entio

ned

abov

e, th

e au

dito

rs c

onsi

der t

hat t

he u

pdat

ing

of th

e LP

IS h

as si

gnifi

cant

ly im

prov

ed th

e re

liabi

lity

of

the

data

reco

rded

in th

is sy

stem

’. B

ox 7

.8.

Mem

ber S

tate

s whe

re L

PIS

wea

knes

ses p

ersi

st

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e en

clos

ed re

plie

s (se

e A

nnex

II) t

o th

e Eu

rope

an C

ourt

of A

udito

rs c

onta

in c

ount

er-a

rgum

ents

con

cern

ing

the

findi

ngs o

n th

e ac

tion

of th

e pa

ying

age

ncie

s. Sp

ain:

With

rega

rd to

the

info

rmat

ion

cont

aine

d in

the

Com

mis

sion

’s re

ply

(box

7.8

), th

is M

embe

r Sta

te

wou

ld li

ke to

mak

e th

e fo

llow

ing

clar

ifica

tion

abou

t the

nex

t par

agra

ph in

the

box,

whi

ch st

ates

: 'Th

e fo

llow

-up

audi

ts c

arrie

d ou

t by

the

Com

mis

sion

on

the

impl

emen

tatio

n of

the

actio

n pl

ans h

ave

iden

tifie

d si

mila

r de

ficie

ncie

s. Th

e C

omm

issi

on is

of t

he v

iew

that

whi

le c

onsi

dera

ble

rem

edia

l wor

k ha

s bee

n ca

rrie

d ou

t, so

me

defic

ienc

ies p

ersi

st w

ith re

gard

to th

e el

igib

ility

for p

erm

anen

t pas

ture

in G

reec

e an

d Sp

ain.

The

Com

mis

sion

w

ould

, how

ever

, lik

e to

poi

nt o

ut th

at th

e re

med

ial a

ctio

ns c

arrie

d ou

t in

2014

and

201

5 ha

ve p

rove

d sa

tisfa

ctor

y fo

r bot

h co

untri

es, r

esul

ting

in in

elig

ible

are

as b

eing

exc

lude

d fr

om b

oth

LPIS

: in

Gre

ece,

the

area

89

regi

ster

ed a

s per

man

ent p

astu

re d

ecre

ased

from

3.6

mill

ion

ha to

1.5

mill

ion

ha, w

hile

in S

pain

elig

ible

land

de

crea

sed

from

18.

4 m

illio

n ha

to 1

5.6

mill

ion

ha.'

The

figur

es in

dica

ted

of 1

8.4

to 1

5.6

mill

ion

hect

ares

(2.8

m

illio

n) c

once

rn th

e im

plem

enta

tion

of tw

o-fa

ctor

CA

P-20

13 (s

lope

and

soil)

toge

ther

with

the

CA

Ps o

f A

uton

omou

s Com

mun

ities

that

alre

ady

had

coef

ficie

nts f

or th

e 20

13 c

laim

yea

r. Ex

actly

2 8

10 3

36 h

a w

ere

dedu

cted

, whi

ch w

ere

not e

ligib

le in

cla

im y

ear 2

013.

The

refe

renc

e m

ade

by th

e C

omm

issi

on to

the

clai

m

year

s 201

4 an

d 20

15 is

not

cor

rect

. For

Spa

in th

is sh

ould

read

'app

lied

until

the

2013

cla

im y

ear'.

In th

e 20

14

cam

paig

n so

me

Aut

onom

ous C

omm

uniti

es su

ch a

s And

alus

ia a

nd E

xtre

mad

ura

impl

emen

ted

addi

tiona

l m

easu

res t

hat f

urth

er re

duce

d th

e el

igib

le a

rea

indi

cate

d. H

owev

er, i

t is i

n th

e cu

rren

t yea

r 201

5 w

hen

Spai

n ha

s dev

elop

ed a

thre

e-fa

ctor

CA

P-20

15 (s

lope

, soi

l and

pen

etra

bilit

y to

veg

etat

ion)

as a

n es

sent

ial p

art o

f the

ac

tion

plan

for p

astu

re (A

rticl

e 41

of R

egul

atio

n 13

06/2

014)

impl

emen

ted

at th

e re

ques

t of t

he E

urop

ean

Com

mis

sion

dur

ing

2015

in o

rder

to e

nsur

e th

at th

e el

igib

ility

of a

reas

of p

astu

re w

ith b

ushe

s and

tree

s is

redu

ced

acco

rdin

g to

Eur

opea

n le

gisl

atio

n, a

nd to

ther

eby

ensu

re th

e pr

oper

allo

catio

n of

bas

ic p

aym

ent

entit

lem

ents

in th

e 20

15 c

laim

yea

r. C

AP

2015

is a

n im

prov

ed a

utom

atic

elig

ibili

ty c

oeff

icie

nt w

hich

incr

ease

s th

e ac

cura

cy o

f soi

l cov

er b

y de

duct

ing

a la

rger

num

ber o

f unp

rodu

ctiv

e ar

eas a

nd in

clud

es a

n ad

ditio

nal f

acto

r fo

r pen

etra

bilit

y of

veg

etat

ion

whi

ch li

mits

the

elig

ibili

ty o

f are

as w

ith a

hig

h de

nsity

of t

rees

or s

hrub

s. Th

e ac

tion

plan

as a

who

le c

onta

ins 1

1 sp

ecifi

c ac

tions

to re

duce

elig

ibili

ty a

nd se

ven

acco

mpa

nyin

g m

easu

res f

or

LPIS

-GIS

upd

ate.

Act

ion

No

1 is

the

cons

olid

atio

n of

the

new

coe

ffic

ient

in L

PIS-

GIS

, No

3 is

stric

t qua

lity

cont

rol t

here

of, N

o 2

allo

cate

s zer

o ad

mis

sibi

lity

to p

arce

ls o

f per

man

ent p

astu

re w

ith C

AP

2015

< 2

0 %

and

A

ctio

n N

o 4

invo

lves

the

appl

icat

ion

of a

CA

P =

0 to

pas

ture

par

cels

not

dec

lare

d in

the

last

five

yea

rs (s

ome

10 m

illio

n he

ctar

es o

f gra

ssla

nd w

ill b

e af

fect

ed b

y th

is a

dditi

onal

act

ion

to C

AP

2015

). N

ote.

A p

rese

ntat

ion

of th

e A

ctio

n Pl

an 2

015

can

be p

rovi

ded

to th

e C

ourt

if it

so w

ishe

s, w

ith th

e ex

plan

atio

n of

the

rem

aini

ng

actio

ns a

nd su

ppor

t mea

sure

s. W

ith re

fere

nce

only

to p

astu

re la

nd d

ecla

red

(as e

xpla

ined

, man

y of

the

area

s no

t dec

lare

d w

ere

char

ged

with

a C

AP=

0), t

he re

duct

ion

in p

astu

re e

ligib

ility

by

appl

icat

ion

of C

AP-

2015

(w

ithou

t inc

ludi

ng q

ualit

y co

ntro

l) ha

s giv

en th

e fo

llow

ing

resu

lts:

No

of

T

otal

(ha)

Elig

. Are

a (h

a)

%

re

cord

s dec

lare

d PA

675

091

3

531

308.

46

2 1

48 8

76.3

5

60.

85 %

PR

4

190

576

5 47

9 01

9.41

3 0

61 4

72.7

5

55.

88 %

PS

2

210

492

1 95

1 27

2.94

1 7

13 8

61.9

6

87.

83 %

90

7

076

159

10 9

61 6

00.8

1

6 9

24 2

11.0

6

63.

17 %

To su

m u

p, in

the

2015

cla

im y

ear,

the

area

elig

ible

for p

astu

re w

as re

duce

d by

mor

e th

an 4

mill

ion

hect

ares

, ad

ded

to th

e 2.

8 m

illio

n re

porte

d by

the

Com

mis

sion

in th

e 20

13 c

laim

yea

r. EX

TREM

AD

UR

A- a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 10

Nov

embe

r 201

5 In

Ext

rem

adur

a, w

ork

star

ted

in 2

013

on in

corp

orat

ing

an im

prov

ed C

AP

to c

alcu

late

the

impe

netra

bilit

y of

pa

stur

es in

201

4. T

his C

AP

used

Lan

dsat

imag

es fr

om se

vera

l dat

es a

nd th

e as

sess

men

t was

mad

e by

pas

ture

ty

pe. I

nelig

ible

feat

ures

(roc

ks) l

ocat

ed b

y SI

OSE

[Spa

nish

land

cov

er a

nd u

se in

form

atio

n sy

stem

] wer

e de

duct

ed. T

his C

AP

was

in p

lace

in th

e de

clar

atio

n an

d pa

ymen

t of p

astu

res i

n cl

aim

yea

r 201

4 an

d ac

hiev

ed

sign

ifica

nt p

rogr

ess i

n te

rms o

f pas

ture

elig

ibili

ty d

ue to

pen

etra

bilit

y. It

s rep

lace

men

t in

2015

by

the

Span

ish

Agr

icul

tura

l Gua

rant

ee F

und

[FEG

A] C

AP

base

d on

LID

AR

tech

nolo

gy a

nd a

dditi

onal

che

cks o

n pa

stur

e,

such

as t

he a

sses

smen

t of n

ew a

reas

dec

lare

d, a

nd o

ther

mea

sure

s pro

pose

d by

the

FEG

A in

crea

se th

e de

pend

abili

ty o

f fin

ding

s on

elig

ibili

ty. T

he A

C o

f Ext

rem

adur

a fin

alis

ed th

e va

lidat

ion

of th

e C

AP

2015

in

thei

r ter

ritor

y w

ith th

e st

atis

tical

met

hod

prop

osed

by

FEG

A, t

he re

sults

of w

hich

hav

e be

en se

nt to

the

Min

istry

for a

sses

smen

t by

the

Com

mis

sion

. Ev

alua

tion

of th

is st

udy

valid

ates

the

CA

P in

Ext

rem

adur

a fo

r all

stra

ta su

rvey

ed, w

ith a

smal

l cor

rect

ion

in w

oode

d pa

stur

e w

ith a

CA

P of

less

than

50

%, w

here

the

CA

P fo

r th

is st

ratu

m is

redu

ced

by 1

6 %

. C

AST

ILE-

LA M

AN

CH

A- a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: A

s ind

icat

ed b

y th

e EC

A, t

he L

PIS-

GIS

(SIG

PAC

) lau

nche

d C

AP

2015

in S

pain

and

thus

als

o in

the

Aut

onom

ous C

omm

unity

of C

astil

e La

Man

cha

whi

ch h

as re

med

ied

the

defic

ienc

ies n

oted

in p

revi

ous y

ears

. Im

plem

enta

tion

of th

e C

AP

in C

astil

e-La

Man

cha

is su

bjec

t to

an a

ctio

n pl

an c

ompr

isin

g a

stag

e of

im

plem

enta

tion

(alre

ady

com

plet

ed),

valid

atio

n (a

lread

y co

mpl

eted

) and

mai

nten

ance

(ong

oing

). T

able

7.1

. Fi

nanc

ial c

orre

ctio

ns b

y th

e C

omm

issi

on fo

r sys

tem

B

ulga

ria:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

91

wea

knes

ses i

n LP

IS

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Po

rtug

al: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e ob

serv

atio

n is

in li

ne w

ith fa

cts a

nd d

oes n

ot re

quire

com

men

t. R

oman

ia: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: PI

AA

, thr

ough

the

mea

sure

s tak

en to

upd

ate

the

LPIS

on

the

basi

s of n

ew im

ager

y,

to u

pdat

e fo

llow

ing

the

on-th

e-sp

ot c

heck

, to

upda

te b

ased

on

the

notif

icat

ions

mad

e by

the

farm

ers,

en

sure

s per

man

ently

that

the

refe

renc

e ar

eas a

re e

ligib

le fo

r pay

men

t. M

oreo

ver,

ECA

itse

lf,

in it

s let

ter o

f 30

July

201

5, (R

1057

765R

O01

-15B

B-P

F-69

54-D

AS1

4), p

oint

ed o

ut th

at ‘h

avin

g re

gard

to

all

the

abov

e fin

ding

s, th

e au

dito

rs c

onsi

der t

hat t

he u

pdat

e of

the

LPIS

syst

em

has s

igni

fican

tly im

prov

ed th

e re

liabi

lity

of th

e da

ta re

cord

ed in

this

syst

em’.

Spai

n: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

7.42

.Fo

llow

-up

give

n to

our

fin

ding

s by

the

Com

mis

sion

It

aly:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

The

encl

osed

repl

ies (

see

Ann

ex II

) to

the

Euro

pean

Cou

rt of

Aud

itors

con

tain

cou

nter

-arg

umen

ts c

once

rnin

g th

e fin

ding

s on

the

actio

n of

the

payi

ng a

genc

ies.

Spai

n: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: W

e ag

ree

with

the

Com

mis

sion

’s re

spon

se w

ith re

gard

to th

is fi

ndin

g.

7.43

.R

educ

ing

EAG

F pa

ymen

ts

for G

reec

e G

reec

e: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

7.46

.A

sses

smen

t of t

he

rein

forc

emen

t of a

ssur

ance

ex

erci

se

Bul

gari

a: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

92

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e en

clos

ed re

plie

s (se

e A

nnex

II) t

o th

e Eu

rope

an C

ourt

of A

udito

rs c

onta

in c

ount

er-a

rgum

ents

con

cern

ing

the

findi

ngs o

n th

e ac

tion

of th

e pa

ying

age

ncie

s.

Lux

embo

urg:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

PIA

A In

the

ECA

repo

rt fo

r fin

anci

al y

ear 2

011,

the

repl

y of

the

Com

mis

sion

poi

nts o

ut

that

: ‘3.

39. T

he C

omm

issi

on w

ould

like

to p

oint

out

that

the

certi

ficat

ion

body

did

not

cer

tify

the

stat

istic

s in

any

of th

e ca

ses.’

Thi

s was

ther

efor

e cl

arifi

ed a

nd v

erifi

ed b

y th

e EC

in th

e pr

evio

us y

ears

.

Uni

ted

Kin

gdom

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

This

refe

renc

e co

nfirm

s tha

t the

UK

was

one

of t

he m

embe

r Sta

tes v

isite

d fo

r the

rein

forc

emen

t of a

ssur

ance

pr

oced

ure

in 2

014.

7.

48.

Ass

essm

ent o

f the

re

info

rcem

ent o

f ass

uran

ce

exer

cise

Gre

ece:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

7.50

.A

sses

smen

t of t

he

rein

forc

emen

t of a

ssur

ance

ex

erci

se

Lux

embo

urg:

act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

7.52

.A

sses

smen

t of t

he

rein

forc

emen

t of a

ssur

ance

ex

erci

se

Irel

and:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

e en

clos

ed re

plie

s (se

e A

nnex

II) t

o th

e Eu

rope

an C

ourt

of A

udito

rs c

onta

in c

ount

er-a

rgum

ents

con

cern

ing

the

findi

ngs o

n th

e ac

tion

of th

e pa

ying

age

ncie

s.

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: YES

; C

ompl

etio

n da

te:

Bas

ed o

n th

e fin

ding

s and

reco

mm

enda

tions

rece

ived

from

the

exte

rnal

aud

itors

, and

als

o at

the

requ

est o

f the

93

Euro

pean

Com

mis

sion

, PIA

A h

as d

raw

n up

the

actio

n pl

an fo

r red

ucin

g th

e er

ror r

ate

for r

ural

dev

elop

men

t m

easu

res w

hose

impl

emen

tatio

n ha

s bee

n de

lega

ted

by A

FIR

. Thi

s Pla

n in

clud

ed th

e m

ain

caus

es w

hich

led

to

defic

ienc

ies i

n th

e fu

nctio

ning

of t

he sy

stem

, as w

ell a

s the

rem

edia

l mea

sure

s an

d th

e re

late

d de

adlin

es. A

t tha

t poi

nt, a

ll th

e m

easu

res w

ere

impl

emen

ted

— fo

r the

pro

gram

min

g pe

riod

2007

-201

3.

Swed

en: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Th

is c

omm

ent d

oes n

ot re

quire

Sw

eden

to ta

ke a

ctio

n.

Box

7.9

. Ex

ampl

es sh

owin

g th

at

Mem

ber S

tate

s' ac

tion

plan

s ar

e no

t yet

fully

eff

ectiv

e

Irel

and:

act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te: O

ngoi

ng

A n

ew A

ctio

n Pl

an w

as su

bmitt

ed m

id-2

015

and

is b

eing

impl

emen

ted.

Rom

ania

: act

ion

take

n: Y

ES ;

actio

n co

mpl

eted

: NO

; C

ompl

etio

n da

te:

AFI

R F

ollo

win

g re

ceip

t fro

m th

e C

ertif

icat

ion

Bod

y of

the

stat

e of

impl

emen

tatio

n o

f the

reco

mm

enda

tions

upd

ated

in O

ctob

er 2

015,

the

Age

ncy

has u

pdat

ed a

nd fo

rwar

ded

to th

e C

ompe

tent

A

utho

rity

the

actio

n pl

an fo

r the

impl

emen

tatio

n of

the

reco

mm

enda

tions

and

for c

orre

ctio

n of

the

defic

ienc

ies

foun

d by

the

CB

aud

itors

. Ple

ase

note

that

this

Pla

n is

regu

larly

upd

ated

and

sent

to

the

Com

pete

nt A

utho

rity.

See

the

docu

men

t ‘A

ctio

n Pl

an fo

r rec

omm

enda

tion

impl

emen

tatio

n’.

7.57

.M

embe

r Sta

tes'

syst

ems

rela

ted

to re

gula

rity

of

trans

actio

ns u

nder

the

Euro

pean

Fis

herie

s Fun

d (E

FF)

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: W

e no

te th

e co

nten

t of C

omm

ent N

o 11

. In

vie

w o

f par

agra

ph 7

.58

of th

e 20

14 A

nnua

l Rep

ort:

''7.5

8. A

lthou

gh w

e co

nsid

er th

e m

etho

dolo

gy u

sed

in th

e op

erat

ions

and

syst

ems a

udits

to b

e ef

fect

ive,

we

have

foun

d sh

ortc

omin

gs in

the

man

agem

ent a

nd d

ocum

enta

tion

of a

udit

activ

ities

and

in th

e ve

rific

atio

n of

el

igib

ility

con

ditio

ns.

The

audi

t aut

horit

y di

d no

t car

ry o

ut th

e au

dit a

ctiv

ities

as p

lann

ed.

No

form

al p

roce

dure

s wer

e es

tabl

ishe

d fo

r qua

lity

cont

rol,

the

audi

t doc

umen

tatio

n w

as in

adeq

uate

, and

the

sam

plin

g m

etho

d di

d no

t com

ply

with

the

Com

mis

sion

's gu

idel

ines

. A

lthou

gh th

ese

shor

tcom

ings

wer

e id

entif

ied

by th

e C

omm

issi

on in

the

cour

se o

f its

pre

viou

s aud

its, a

t the

tim

e of

our

aud

it th

ey h

ad st

ill n

ot b

een

com

plet

ely

elim

inat

ed b

y th

e au

dit a

utho

rity.

94

In so

me

case

s, th

e au

dit a

utho

rity

did

not c

arry

out

the

on-th

e-sp

ot c

heck

s req

uire

d an

d di

d no

t per

form

ad

equa

te c

heck

s on

the

elig

ibili

ty c

ondi

tions

for v

esse

ls th

at h

ad re

ceiv

ed fi

nanc

ing

for p

erm

anen

tly c

easi

ng

thei

r act

iviti

es.'';

we

wou

ld li

ke to

poi

nt o

ut th

e fo

llow

ing:

Th

e Ita

lian

auth

oriti

es h

ave

not c

ompl

eted

thei

r ow

n au

dit a

ctiv

ities

as p

lann

ed.

Follo

win

g th

e EU

dep

artm

ents

' fin

ding

s in

2012

(rep

orte

d in

the

AC

R 2

011)

, the

AA

inte

rrup

ted

the

chec

ks

that

wer

e un

der w

ay a

nd c

arrie

d ou

t the

aud

it ac

tiviti

es a

gain

on

a ne

w sa

mpl

e of

the

expe

nditu

re c

ertif

ied

in

2010

. Thi

s had

inev

itabl

e re

perc

ussi

ons o

n th

e tim

ing

of th

e pr

epar

ator

y w

ork

prio

r to

send

ing

the

Ann

ual

Con

trol R

epor

ts fo

r the

follo

win

g ye

ars,

incl

udin

g fo

r 201

3, w

hich

was

the

subj

ect o

f che

cks b

y th

e Eu

rope

an

Cou

rt of

Aud

itors

. La

ck o

f writ

ten

proc

edur

es fo

r the

'qua

lity

revi

ew'.

The

docu

men

tatio

n fo

r the

aud

its c

arrie

d ou

t is i

ncon

sist

ent.

Sam

plin

g m

etho

dolo

gy.

The

AA

ask

ed th

e In

spec

tora

te-G

ener

al fo

r Fin

anci

al R

elat

ions

with

the

EU (I

GR

UE)

for t

he q

ualit

y-re

view

ch

eckl

ists

alre

ady

adop

ted

for t

he a

ctiv

ities

repo

rted

in th

e A

CR

201

5 fo

r sys

tem

s aud

its. T

his m

ade

it po

ssib

le

to re

spon

d to

the

Euro

pean

Cou

rt of

Aud

itors

' fin

ding

con

cern

ing

the

docu

men

tary

shor

tcom

ings

for t

he

syst

ems a

udits

. Th

e sa

mpl

ing

met

hod

used

to e

xtra

ct th

e sa

mpl

e fr

om th

e ce

rtifie

d ex

pens

es fo

r 201

2 m

ade

prov

isio

n fo

r the

us

e of

the

Com

mun

ity sh

are

alon

e, b

ecau

se th

e EU

shar

e al

one

repr

esen

ted

51 %

of t

he to

tal c

ertif

ied.

In th

e A

CR

201

3 pr

ovis

ion

had

alre

ady

been

mad

e fo

r the

priv

ate

shar

e to

be

used

to e

xtra

ct th

e sa

mpl

e in

subs

eque

nt

year

s. Th

is m

etho

dolo

gy w

as th

eref

ore

adop

ted

for t

he sa

mpl

e ta

ken

from

the

2013

cer

tifie

d ex

pens

es.

No

on-th

e-sp

ot c

heck

s car

ried

out i

n th

e op

erat

ions

aud

it.

With

rega

rd to

on-

the-

spot

che

cks,

the

Euro

pean

Cou

rt of

Aud

itors

com

men

ted

on fi

ve o

f the

thirt

y pr

ojec

ts

sele

cted

. Of t

hese

five

pro

ject

s, fo

ur h

ad th

e ph

otog

raph

ic d

ocum

enta

tion

atta

ched

to th

e fil

e, a

nd fo

r the

oth

er,

the

invo

ices

wer

e ce

rtifie

d by

the

Italia

n sh

ippi

ng re

gist

er (R

INA

).

How

ever

, in

view

of t

he c

omm

ent m

ade,

in 2

014

the

insp

ecto

rs w

ere

info

rmed

that

on-

the-

spot

che

cks d

o no

t ha

ve to

be

carr

ied

out o

nly

whe

re th

ere

is a

n irr

egul

arity

ent

ailin

g re

cove

ry o

f the

ent

ire c

ontri

butio

n.

Inad

equa

te c

heck

s on

the

actu

al fi

shin

g ac

tiviti

es o

f fis

hing

boa

ts th

at h

ave

perm

anen

tly c

ease

d fis

hing

ac

tiviti

es.

95

In le

tter r

ef. A

res(

2015

)268

4786

of 2

6 Ju

ne 2

015,

the

Com

mis

sion

ask

ed th

e A

A to

con

duct

che

cks o

n th

e ac

tual

fish

ing

activ

ities

on

a re

pres

enta

tive

sam

ple

usin

g V

MS

data

and

ship

s' lo

gs. T

he re

sults

wer

e se

nt in

le

tter r

ef. C

CSP

U.2

015.

904

of 1

6 N

ovem

ber 2

015.

7.

69.

Sign

ifica

nt n

umbe

r of

indi

vidu

al sy

stem

s for

EA

FRD

Ger

man

y: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: Fo

r inf

orm

atio

n on

ly; n

o re

ply

requ

ired.

Ital

y: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

:

Spai

n: a

ctio

n ta

ken:

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: W

e ag

ree

with

the

Com

mis

sion

’s re

spon

se w

ith re

gard

to th

is fi

ndin

g.

Box

7.1

0.

Exam

ples

of g

ood

and

bad

prac

tices

in ta

rget

ing

and

sele

ctio

n

Bul

gari

a: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed:

; Com

plet

ion

date

: M

ZH: T

he B

ulga

rian

auth

oriti

es w

ould

like

to p

oint

out

that

the

requ

irem

ents

of A

rticl

e 43

of R

egul

atio

n (E

C)

No

1974

/200

6 ar

e co

rrec

tly im

plem

ente

d in

the

2007

-201

3 R

DP.

The

y ar

e pa

rt of

the

com

puls

ory

cont

ent o

f an

y R

ural

Dev

elop

men

t Pro

gram

me,

as s

peci

fied

in p

arag

raph

5.2

of A

nnex

II to

Reg

ulat

ion

(EC

) No

1974

/200

6: ‘…

Evid

ence

that

for i

nves

tmen

t mea

sure

s sup

port

is ta

rget

ed o

n cl

early

def

ined

obj

ectiv

es

refle

ctin

g id

entif

ied

terr

itoria

l nee

ds a

nd st

ruct

ural

dis

adva

ntag

es...

’. In

vest

men

t sup

port

for m

easu

re 1

23 is

ta

rget

ed a

t the

ent

ire fo

od a

nd fo

rest

ry se

ctor

, with

the

elig

ible

type

s of e

nter

pris

es a

nd e

ligib

le a

ctiv

ities

bei

ng

defin

ed a

ccor

ding

ly in

Reg

ulat

ions

(EC

) No

1698

/200

5 an

d (E

C) N

o 19

74/2

006

resp

ectiv

ely.

7.

85.

Mea

sure

‘Inc

reas

ing

the

adde

d va

lue

to b

asic

ag

ricul

tura

l and

fore

stry

pr

oduc

tion’

.

Pola

nd: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 12.

12.2

014

(the

Euro

pean

Com

mis

sion

im

plem

entin

g de

cisi

on a

ppro

ving

the

rura

l dev

elop

men

t pro

gram

me

for P

olan

d fo

r the

aid

obj

ectiv

es e

nshr

ined

in

the

Euro

pean

Agr

icul

tura

l Fun

d fo

r Rur

al D

evel

opm

ent 2

014P

L06R

DN

P001

dat

ed 1

2 D

ecem

ber 2

014)

In

the

2014

-20

RD

P un

der p

riorit

y 6

- ‘Pr

omot

ing

soci

al in

clus

ion,

pov

erty

redu

ctio

n an

d ec

onom

ic

deve

lopm

ent i

n ru

ral a

reas

’, sp

ecifi

c ob

ject

ive

6A ‘F

acili

tatin

g di

vers

ifica

tion,

cre

atio

n an

d de

velo

pmen

t of

smal

l ent

erpr

ises

and

job

crea

tion’

, pro

visi

on w

as m

ade

for t

he ‘F

arm

and

bus

ines

s dev

elop

men

t’ m

easu

re,

subm

easu

re ‘B

usin

ess s

tart-

up a

id fo

r non

-agr

icul

tura

l act

iviti

es in

rura

l are

as’.

Th

e ‘B

usin

ess s

tart-

up a

id fo

r non

-agr

icul

tura

l act

iviti

es in

rura

l are

as’ s

ubm

easu

re im

plem

ents

the

afor

emen

tione

d sp

ecifi

c ob

ject

ive

6A. T

his s

ubm

easu

re w

ill su

ppor

t non

-agr

icul

tura

l act

iviti

es u

nder

take

n by

fa

rmer

s, fa

rmer

s’ sp

ouse

s, ot

her m

embe

rs o

f the

hou

seho

ld a

nd b

enef

icia

ries o

f pay

men

ts to

smal

l far

ms s

o

96

that

they

can

gen

erat

e in

com

e fr

om so

urce

s oth

er th

an a

gric

ultu

re.

Und

er th

e R

DP,

pre

fere

nce

will

be

give

n to

pro

ject

s inv

olvi

ng jo

b cr

eatio

n (a

nnua

l ave

rage

full-

time

equi

vale

nt) (

not a

pplic

able

to th

e se

lf-em

ploy

ed) a

nd p

roje

cts c

arrie

d ou

t by

pers

ons r

esid

ent i

n th

e di

stric

ts

with

the

high

est u

nem

ploy

men

t in

the

prov

ince

. U

nder

the

afor

emen

tione

d ob

ject

ive

6A, t

he in

dica

tor i

dent

ified

in th

e R

DP

(Cha

pter

11)

is: J

obs c

reat

ed in

su

ppor

ted

proj

ects

in w

hich

the

indi

cato

r tar

get w

as e

stim

ated

at 1

6 55

0 (jo

bs).

In a

dditi

on, u

nder

spec

ific

obje

ctiv

e 6B

Pro

mot

ing

loca

l dev

elop

men

t in

rura

l are

as, p

rovi

sion

was

mad

e fo

r LE

AD

ER a

ctio

ns. A

s par

t of L

EAD

ER, e

nter

pris

e de

velo

pmen

t pro

ject

s in

the

broa

d se

nse

of th

e te

rm w

ill b

e im

plem

ente

d an

d ac

tiviti

es d

esig

ned

to p

rovi

de e

.g. p

erso

ns p

lann

ing

to st

art a

bus

ines

s in

addi

tion

to fa

rmin

g ac

tiviti

es a

nd p

erso

ns le

avin

g fa

rmin

g w

ith th

e ne

cess

ary

know

ledg

e or

skill

s and

qua

lific

atio

ns w

ill b

e su

ppor

ted.

The

obj

ectiv

e w

ill b

e to

get

dis

adva

ntag

ed g

roup

s and

the

unem

ploy

ed in

to w

ork,

coo

pera

tion

betw

een

loca

l act

ion

grou

ps (L

AG

s) a

nd b

usin

esse

s to

iden

tify

poss

ible

em

ploy

men

t opp

ortu

nitie

s for

peo

ple

from

the

Loca

l Dev

elop

men

t Stra

tegy

are

a (L

DS)

, net

wor

king

bet

wee

n bo

dies

wor

king

with

dis

adva

ntag

ed

grou

ps a

nd th

e un

empl

oyed

, suc

h as

: wel

fare

cen

tres,

job

cent

res a

nd a

gric

ultu

ral a

dvis

ory

cent

res.

U

nder

the

afor

emen

tione

d ob

ject

ive

6B, t

he in

dica

tor i

dent

ified

in th

e R

DP

(Cha

pter

11)

is: J

obs c

reat

ed in

LE

AD

ER su

ppor

ted

proj

ects

in w

hich

the

indi

cato

r tar

get w

as e

stim

ated

at 5

943

(job

s).

The

Reg

ulat

ion

of th

e M

inis

ter f

or A

gric

ultu

re a

nd R

ural

Dev

elop

men

t of 2

4 Se

ptem

ber 2

015

setti

ng o

ut th

e de

taile

d co

nditi

ons a

nd a

rran

gem

ents

for g

rant

ing

finan

cial

aid

und

er th

e ‘S

uppo

rt fo

r im

plem

enta

tion

of

oper

atio

ns u

nder

the

com

mun

ity-le

d lo

cal d

evel

opm

ent s

trate

gy’ m

easu

re in

the

2014

-20

RD

P (J

ourn

al o

f La

ws,

item

157

0) in

dica

tes t

hat a

id is

gra

nted

to p

roje

cts i

nvol

ving

star

t-ups

whi

ch in

volv

e:

1) th

e cr

eatio

n of

at l

east

one

job

(ann

ual a

vera

ge fu

ll-tim

e eq

uiva

lent

), th

is b

eing

just

ified

by

the

scop

e of

the

proj

ect,

and

the

pers

on fo

r who

m th

is jo

b is

cre

ated

will

be

empl

oyed

on

the

basi

s of a

n em

ploy

men

t con

tract

or

col

lect

ive

empl

oym

ent c

ontra

ct;

2) th

e jo

b re

ferr

ed to

in p

oint

1 w

ill b

e pr

eser

ved

for a

t lea

st 2

yea

rs a

fter t

he fi

nal p

aym

ent d

ate.

A

id fo

r pro

ject

s inv

olvi

ng th

e de

velo

pmen

t of b

usin

ess a

ctiv

ities

will

be

gran

ted

if th

e pr

ojec

t com

plie

s with

th

e fo

llow

ing

cond

ition

s:

1) th

e cr

eatio

n of

at l

east

one

job

(ann

ual a

vera

ge fu

ll-tim

e eq

uiva

lent

), th

is b

eing

just

ified

by

the

scop

e of

the

proj

ect,

and

the

pers

on fo

r who

m th

is jo

b is

cre

ated

will

be

empl

oyed

on

the

basi

s of a

n em

ploy

men

t con

tract

or

col

lect

ive

empl

oym

ent c

ontra

ct;

97

2) th

e jo

b re

ferr

ed to

in p

oint

1 w

ill b

e pr

eser

ved

for a

t lea

st 3

yea

rs a

fter t

he fi

nal p

aym

ent d

ate.

Th

e R

egul

atio

n of

the

Min

iste

r for

Agr

icul

ture

and

Rur

al D

evel

opm

ent s

ettin

g ou

t the

det

aile

d co

nditi

ons a

nd

proc

edur

es fo

r gra

ntin

g fin

anci

al a

id u

nder

the

‘Bus

ines

s sta

rt-up

aid

for n

on-a

gric

ultu

ral a

ctiv

ities

in ru

ral

area

s’ su

b-m

easu

re a

ssum

es th

at th

e or

der i

n w

hich

aid

is a

war

ded

is d

eter

min

ed b

y th

e to

tal n

umbe

r of p

oint

s aw

arde

d on

the

basi

s of t

he se

lect

ion

crite

ria, i

nclu

ding

: ‘If

, inc

ludi

ng se

lf-em

ploy

men

t, th

e bu

sine

ss p

lan

prov

ides

for t

he c

reat

ion

of:

1) a

t lea

st 2

and

few

er th

an 3

jobs

(ann

ual a

vera

ge fu

ll-tim

e eq

uiva

lent

) - 3

poi

nts s

hall

be a

war

ded;

2)

3 o

r mor

e jo

bs (a

nnua

l ave

rage

full-

time

equi

vale

nt) -

4 p

oint

s sha

ll be

aw

arde

d’.

7.87

.M

easu

re ‘S

uppo

rt fo

r the

cr

eatio

n an

d de

velo

pmen

t of

mic

ro-e

nter

pris

es'

Pola

nd: a

ctio

n ta

ken:

YES

; ac

tion

com

plet

ed: Y

ES ;

Com

plet

ion

date

: 12.

12.2

014

(the

Euro

pean

Com

mis

sion

im

plem

entin

g de

cisi

on a

ppro

ving

the

rura

l dev

elop

men

t pro

gram

me

for P

olan

d fo

r the

aid

obj

ectiv

es e

nshr

ined

in

the

Euro

pean

Agr

icul

tura

l Fun

d fo

r Rur

al D

evel

opm

ent 2

014P

L06R

DN

P001

dat

ed 1

2 D

ecem

ber 2

014)

C

f. cl

arifi

catio

ns o

n re

mar

k 7.

In th

e 20

14-2

0 R

DP

unde

r prio

rity

6 - ‘

Prom

otin

g so

cial

incl

usio

n, p

over

ty

redu

ctio

n an

d ec

onom

ic d

evel

opm

ent i

n ru

ral a

reas

’, sp

ecifi

c ob

ject

ive

6A ‘F

acili

tatin

g di

vers

ifica

tion,

cr

eatio

n an

d de

velo

pmen

t of s

mal

l ent

erpr

ises

and

job

crea

tion’

, pro

visi

on w

as m

ade

for t

he ‘F

arm

and

bu

sine

ss d

evel

opm

ent’

mea

sure

, sub

mea

sure

‘Bus

ines

s sta

rt-up

aid

for n

on-a

gric

ultu

ral a

ctiv

ities

in ru

ral

area

s’.

The

‘Bus

ines

s sta

rt-up

aid

for n

on-a

gric

ultu

ral a

ctiv

ities

in ru

ral a

reas

’ sub

mea

sure

impl

emen

ts th

e af

orem

entio

ned

spec

ific

obje

ctiv

e 6A

. Thi

s sub

mea

sure

will

supp

ort n

on-a

gric

ultu

ral a

ctiv

ities

und

erta

ken

by

farm

ers,

farm

ers’

spou

ses,

othe

r mem

bers

of t

he h

ouse

hold

and

ben

efic

iarie

s of p

aym

ents

to sm

all f

arm

s so

that

they

can

gen

erat

e in

com

e fr

om so

urce

s oth

er th

an a

gric

ultu

re.

Und

er th

e R

DP,

pre

fere

nce

will

be

give

n to

pro

ject

s inv

olvi

ng jo

b cr

eatio

n (a

nnua

l ave

rage

full-

time

equi

vale

nt) (

not a

pplic

able

to th

e se

lf-em

ploy

ed) a

nd p

roje

cts c

arrie

d ou

t by

pers

ons r

esid

ent i

n th

e di

stric

ts

with

the

high

est u

nem

ploy

men

t in

the

prov

ince

. U

nder

the

afor

emen

tione

d ob

ject

ive

6A, t

he in

dica

tor i

dent

ified

in th

e R

DP

(Cha

pter

11)

is: J

obs c

reat

ed in

su

ppor

ted

proj

ects

in w

hich

the

indi

cato

r tar

get w

as e

stim

ated

at 1

6 55

0 (jo

bs).

In a

dditi

on, u

nder

spec

ific

obje

ctiv

e 6B

Pro

mot

ing

loca

l dev

elop

men

t in

rura

l are

as, p

rovi

sion

was

mad

e fo

r LE

AD

ER a

ctio

ns. A

s par

t of L

EAD

ER, e

nter

pris

e de

velo

pmen

t pro

ject

s in

the

broa

d se

nse

of th

e te

rm w

ill b

e im

plem

ente

d an

d ac

tiviti

es d

esig

ned

to p

rovi

de e

.g. p

erso

ns p

lann

ing

to st

art a

bus

ines

s in

addi

tion

to fa

rmin

g

98

activ

ities

and

per

sons

leav

ing

farm

ing

with

the

nece

ssar

y kn

owle

dge

or sk

ills a

nd q

ualif

icat

ions

will

be

supp

orte

d. T

he o

bjec

tive

will

be

to g

et d

isad

vant

aged

gro

ups a

nd th

e un

empl

oyed

into

wor

k, c

oope

ratio

n be

twee

n lo

cal a

ctio

n gr

oups

(LA

Gs)

and

bus

ines

ses t

o id

entif

y po

ssib

le e

mpl

oym

ent o

ppor

tuni

ties f

or p

eopl

e fr

om th

e Lo

cal D

evel

opm

ent S

trate

gy a

rea

(LD

S), n

etw

orki

ng b

etw

een

bodi

es w

orki

ng w

ith d

isad

vant

aged

gr

oups

and

the

unem

ploy

ed, s

uch

as: w

elfa

re c

entre

s, jo

b ce

ntre

s and

agr

icul

tura

l adv

isor

y ce

ntre

s.

Und

er th

e af

orem

entio

ned

obje

ctiv

e 6

B, t

he in

dica

tor i

dent

ified

in th

e R

DP

(Cha

pter

11)

is: J

obs c

reat

ed in

LE

AD

ER su

ppor

ted

proj

ects

in w

hich

the

indi

cato

r tar

get w

as e

stim

ated

at 5

943

(job

s).

The

Reg

ulat

ion

of th

e M

inis

ter f

or A

gric

ultu

re a

nd R

ural

Dev

elop

men

t of 2

4 Se

ptem

ber 2

015

setti

ng o

ut th

e de

taile

d co

nditi

ons a

nd a

rran

gem

ents

for g

rant

ing

finan

cial

aid

und

er th

e ‘S

uppo

rt fo

r im

plem

enta

tion

of

oper

atio

ns u

nder

the

com

mun

ity-le

d lo

cal d

evel

opm

ent s

trate

gy’ m

easu

re in

the

2014

-20

RD

P (J

ourn

al o

f La

ws,

item

157

0) in

dica

tes t

hat a

id is

gra

nted

to p

roje

cts i

nvol

ving

star

t-ups

whi

ch in

volv

e:

1) th

e cr

eatio

n of

at l

east

one

job

(ann

ual a

vera

ge fu

ll-tim

e eq

uiva

lent

), th

is b

eing

just

ified

by

the

scop

e of

the

proj

ect,

and

the

pers

on fo

r who

m th

is jo

b is

cre

ated

will

be

empl

oyed

on

the

basi

s of a

n em

ploy

men

t con

tract

or

col

lect

ive

empl

oym

ent c

ontra

ct;

2) th

e jo

b re

ferr

ed to

in p

oint

1 w

ill b

e pr

eser

ved

for a

t lea

st 2

yea

rs a

fter t

he fi

nal p

aym

ent d

ate.

A

id fo

r pro

ject

s inv

olvi

ng th

e de

velo

pmen

t of b

usin

ess a

ctiv

ities

will

be

gran

ted

if th

e pr

ojec

t com

plie

s with

th

e fo

llow

ing

cond

ition

s:

1) th

e cr

eatio

n of

at l

east

one

job

(ann

ual a

vera

ge fu

ll-tim

e eq

uiva

lent

), th

is b

eing

just

ified

by

the

scop

e of

the

proj

ect,

and

the

pers

on fo

r who

m th

is jo

b is

cre

ated

will

be

empl

oyed

on

the

basi

s of a

n em

ploy

men

t con

tract

or

col

lect

ive

empl

oym

ent c

ontra

ct;

2) th

e jo

b re

ferr

ed to

in p

oint

1 w

ill b

e pr

eser

ved

for a

t lea

st 3

yea

rs a

fter t

he fi

nal p

aym

ent d

ate.

Th

e R

egul

atio

n of

the

Min

iste

r for

Agr

icul

ture

and

Rur

al D

evel

opm

ent s

ettin

g ou

t the

det

aile

d co

nditi

ons a

nd

proc

edur

es fo

r gra

ntin

g fin

anci

al a

id u

nder

the

‘Bus

ines

s sta

rt-up

aid

for n

on-a

gric

ultu

ral a

ctiv

ities

in ru

ral

area

s’ su

b-m

easu

re a

ssum

es th

at th

e or

der i

n w

hich

aid

is a

war

ded

is d

eter

min

ed b

y th

e to

tal n

umbe

r of p

oint

s aw

arde

d on

the

basi

s of t

he se

lect

ion

crite

ria, i

nclu

ding

: ‘If

, tak

ing

self-

empl

oym

ent o

n bo

ard,

the

busi

ness

pl

an p

rovi

des f

or th

e cr

eatio

n of

: 1)

at l

east

2 a

nd fe

wer

than

3 jo

bs (a

nnua

l ave

rage

full-

time

equi

vale

nt) -

3 p

oint

s sha

ll be

aw

arde

d;

2) 3

or m

ore

jobs

(ann

ual a

vera

ge fu

ll-tim

e eq

uiva

lent

) - 4

poi

nts s

hall

be a

war

ded’

. B

ox 7

.11.

Ex

ampl

es o

f lac

k of

evi

denc

e N

ethe

rlan

ds: a

ctio

n ta

ken:

NO

; ac

tion

com

plet

ed: N

O ;

Com

plet

ion

date

: Not

app

licab

le

99

that

cos

ts w

ere

reas

onab

le

The

Net

herla

nds d

oes n

ot sh

are

the

Cou

rt of

Aud

itors

’ vie

w, a

s alre

ady

expl

aine

d in

the

resp

onse

to th

e fin

ding

s (le

tter r

ef. D

GA

N-E

LVV

/150

5245

0, se

nt 1

9 M

ay 2

015)

.

Port

ugal

: act

ion

take

n: ;

actio

n co

mpl

eted

: ; C

ompl

etio

n da

te:

In th

e Fo

rest

ry O

pera

tions

Mon

itorin

g C

omm

ittee

(CA

OF)

tabl

e, th

ere

are

diff

eren

t typ

es o

f for

estry

in

terv

entio

n w

hich

may

be

used

to ‘c

ontro

l veg

etat

ion’

. In

this

ope

ratio

n th

ree

type

s of i

nter

vent

ion

wer

e co

nsid

ered

: tot

al sp

onta

neou

s veg

etat

ion

cont

rol (

1) a

nd sp

onta

neou

s veg

etat

ion

cont

rol i

n lin

es o

r loc

ally

(2)

and

clea

ning

of w

oods

(3).

Such

fore

st in

terv

entio

n ha

s diff

eren

t hum

an a

nd m

ater

ial r

esou

rce

allo

catio

n re

quire

men

ts to

dea

l with

the

char

acte

ristic

s of t

he v

eget

atio

n an

d te

rrai

n. T

he C

AO

F ta

bles

set o

ut th

e di

ffer

ent t

ypes

of o

pera

tions

and

as

soci

ated

uni

t cos

ts, w

hich

wer

e ta

ken

into

acc

ount

in th

e an

alys

is o

f the

reas

onab

lene

ss o

f the

cos

ts b

y th

e te

chni

cal a

naly

st.

For t

he ty

pe o

f for

est '

vege

tatio

n co

ntro

l' op

erat

ion

in q

uest

ion,

wor

king

con

ditio

ns in

the

area

to b

e cl

eane

d w

ere

eval

uate

d by

the

tech

nica

l ana

lyst

, for

eac

h si

te, c

ompa

ring

thes

e co

nditi

ons w

ith re

lief a

nd o

ther

in

form

atio

n in

mili

tary

map

s and

orth

opho

tom

aps p

rovi

ded

by th

e pr

omot

or in

the

appl

icat

ion.

Afte

r pe

rfor

min

g ve

rific

atio

n ca

lcul

atio

ns, t

he te

chni

cal a

naly

st a

ccep

ted

the

valu

es p

ropo

sed

by th

e pr

omot

er.

100

AN

NE

X II

I A

Part

A.

Plea

se re

ply

to th

e ge

nera

l que

stio

ns b

elow

1)

Per

form

ance

Th

e 20

14 A

nnua

l Rep

ort o

f the

Eur

opea

n Co

urt o

f Aud

itors

(ECA

), Ch

apte

r 3 "

Gett

ing

Resu

lts fr

om th

e EU

Bud

get"

ana

lyse

s per

form

ance

from

th

e pe

rspe

ctiv

e of

the

Euro

pe20

20 S

trat

egy

and

exam

ines

the

perf

orm

ance

feat

ures

intr

oduc

ed w

ith th

e ne

w M

FF 2

014-

2020

. Q

uest

ion

addr

esse

d to

all

Mem

ber S

tate

s:

1.1

Is y

our M

embe

r Sta

te a

lread

y us

ing/

plan

ning

to u

se th

e “C

omm

on In

dica

tors

” in

trod

uced

for t

he fo

llow

ing

five

EU fu

nds (

plea

se ti

ck th

e ap

prop

riate

box

es):

EAFR

D

Yes

N

o

If

No,

ple

ase

expl

ain

why

not

EMFF

Yes

N

o

If N

o, p

leas

e ex

plai

n w

hy n

ot

ESF

Ye

s

No

If N

o, p

leas

e ex

plai

n w

hy n

ot

ERDF

Yes

N

o If

No,

ple

ase

expl

ain

why

not

CF

Ye

s

No

If N

o, p

leas

e ex

plai

n w

hy n

ot

1

.2 W

hat a

dditi

onal

or c

ompl

emen

tary

per

form

ance

indi

cato

rs is

you

r Mem

ber S

tate

usin

g/pl

anni

ng to

use

to p

rovi

de in

form

atio

n ab

out t

he

resu

lts o

btai

ned

from

pro

gram

s org

anize

d us

ing

thes

e fu

nds?

101

1.

3 Do

you

ant

icip

ate

that

you

r Mem

ber S

tate

will

be

able

to p

rovi

de m

eani

ngfu

l dat

a w

hich

will

be

avai

labl

e fo

r use

in th

e M

FF m

id-t

erm

re

view

sche

dule

d fo

r 201

7?

Ye

s - i

f Yes

des

crib

e th

em

N

o - i

f No

give

reas

ons w

hy n

ot

2) F

inan

cial

Inst

rum

ents

Th

is ye

ar th

e EC

A no

ted

that

the

repo

rtin

g on

fina

ncia

l ins

trum

ents

by

Mem

ber S

tate

s rem

ains

in so

me

case

s inc

ompl

ete

or in

accu

rate

. A.

Que

stio

n ad

dres

sed

to IT

ALY

& M

ALTA

onl

y:

2.1

Wha

t act

ion

has y

our M

embe

r Sta

te ta

ken/

plan

s to

take

to im

prov

e th

e qu

ality

of y

our r

epor

ting?

If s

o, D

oes i

t tak

e in

to a

ccou

nt th

e gu

idan

ce n

ote

on re

port

ing

and

finan

cial

inst

rum

ents

the

Com

miss

ion

pres

ente

d to

Mem

ber S

tate

s in

May

201

5?

Ye

s - i

f Yes

des

crib

e th

em

N

o - i

f No

give

reas

ons w

hy n

ot

B. Q

uest

ion

addr

esse

d to

all

othe

r Mem

ber S

tate

s:

2.2

Has y

our M

embe

r Sta

te ta

ken

mea

sure

s to

impr

ove

the

qual

ity o

f thi

s rep

ortin

g, in

par

ticul

ar o

n th

e ba

sis o

f the

Gui

danc

e N

ote

on

repo

rtin

g on

fina

ncia

l ins

trum

ents

(Ref

: EGE

SIF-

1500

15-0

6/05

/201

5) p

rese

nted

by

the

Com

miss

ion

to th

e M

embe

r Sta

tes i

n M

ay 2

015?

102

Ye

s - i

f Yes

des

crib

e th

em

N

o - i

f No

give

reas

ons w

hy n

ot

3) R

ural

Dev

elop

men

t A.

Que

stio

n ad

dres

sed

to L

ithua

nia,

Hun

gary

, Cze

ch R

epub

lic a

nd U

nite

d Ki

ngdo

m: T

he E

CA fo

und

elig

ibili

ty e

rror

s res

ultin

g fr

om p

ossib

le

artif

icia

lly c

reat

ed c

ondi

tions

to o

btai

n ai

d co

ntra

ry to

the

obje

ctiv

es o

f an

inve

stm

ent m

easu

re (c

f. EC

A An

nual

Rep

ort 2

014

-box

7.4

) 3.

1 W

hat w

ere

the

flaw

s or d

efic

ienc

ies i

n yo

u in

tern

al c

ontr

ol sy

stem

, whi

ch in

you

r opi

nion

, per

mitt

ed th

e irr

egul

ariti

es sp

ecifi

ed to

hap

pen?

3.2

Wha

t rem

edia

l mea

sure

s hav

e be

en ta

ken

or p

lann

ed?

B. Q

uest

ions

add

ress

ed to

Uni

ted

King

dom

, Ger

man

y an

d Ita

ly: T

he E

CA fo

und

non-

com

plia

nce

with

agr

i-env

ironm

enta

l com

mitm

ents

(cf.

ECA’

s Ann

ual R

epor

t 201

4 -b

ox 7

.5),

3.3

Wha

t wer

e th

e fla

ws o

r def

icie

ncie

s in

you

inte

rnal

con

trol

syst

em, w

hich

in y

our o

pini

on, p

erm

itted

the

irreg

ular

ities

spec

ified

to h

appe

n?

3.

4 W

hat r

emed

ial m

easu

res h

ave

been

take

n or

pla

nned

?

C. Q

uest

ions

add

ress

ed to

Pol

and,

Bul

garia

, Ger

man

y, G

reec

e, S

pain

, Fra

nce,

Ital

y, th

e N

ethe

rland

s and

Rom

ania

: The

ECA

foun

d n

on-

resp

ect o

f pro

cure

men

t rul

es (c

f. EC

A’s A

nnua

l Rep

ort 2

014

-box

7.6

)

3.5

Wha

t wer

e th

e fla

ws o

r def

icie

ncie

s in

you

inte

rnal

con

trol

syst

em, w

hich

in y

our o

pini

on, p

erm

itted

the

irreg

ular

ities

spec

ified

to h

appe

n?

3.

6 W

hat r

emed

ial m

easu

res h

ave

been

take

n or

pla

nned

?

103

D.

Que

stio

ns a

ddre

ssed

to Ir

elan

d, It

aly,

Por

tuga

l, Ro

man

ia a

nd S

wed

en: T

he E

CA fo

und

non

-res

pect

of p

rocu

rem

ent r

ules

(cf.

ECA’

s Ann

ual

Repo

rt 2

014

– pa

ra 7

.53)

3.7

Wha

t wer

e th

e fla

ws o

r def

icie

ncie

s in

you

inte

rnal

con

trol

syst

em, w

hich

in y

our o

pini

on, p

erm

itted

the

irreg

ular

ities

spec

ified

to h

appe

n?

3.

8 W

hat r

emed

ial m

easu

res h

ave

been

take

n or

pla

nned

?

4) P

ublic

Pro

cure

men

t Th

e EC

A ha

s cha

nged

its m

etho

dolo

gy fo

r ass

essin

g an

d qu

antif

ying

non

-com

plia

nce

with

the

rule

s on

publ

ic p

rocu

rem

ent.

The

focu

s is s

till o

n se

rious

infr

inge

men

ts, w

here

EU

inst

itutio

ns a

s wel

l as n

atio

nal a

utho

ritie

s in

the

Mem

ber S

tate

s do

not c

ompl

y w

ith fu

ndam

enta

l prin

cipl

es o

f so

und

and

tran

spar

ent p

ublic

pro

cure

men

t pro

cedu

res.

The

ECA

con

sider

s int

er a

lia th

e fo

llow

ing

infr

inge

men

ts a

s ser

ious

and

ther

efor

e to

be

sanc

tione

d by

a 1

00%

err

or:

• Ab

senc

e of

tend

erin

g pr

oced

ure

with

out j

ustif

icat

ion;

Artif

icia

l spl

it of

wor

ks/s

ervi

ces/

supp

lies i

n se

vera

l ten

ders

; •

Use

of i

napp

ropr

iate

type

of t

ende

ring

proc

edur

e;

• N

on-c

ompl

ianc

e w

ith th

e pu

blic

atio

n an

d/or

tran

spar

ency

requ

irem

ents

; •

Unl

awfu

l/disc

rimin

ator

y te

chni

cal s

peci

ficat

ions

; •

Lack

of d

ocum

enta

tion

of th

e pu

blic

pro

cure

men

t pro

cedu

re.

Que

stio

n ad

dres

sed

to a

ll M

embe

r Sta

tes:

4.1

Apar

t fro

m th

e m

easu

res f

or a

sses

sing

and

quan

tifyi

ng n

on-c

ompl

ianc

e al

read

y re

quire

d un

der E

U la

w d

o yo

u ha

ve e

xper

ienc

e w

ith o

ther

(n

atio

nally

pre

scrib

ed) m

easu

res?

104

5) R

egio

nal P

olic

y, E

mpl

oym

ent a

nd S

ocia

l Affa

irs

As in

pre

viou

s yea

rs, f

or re

gion

al p

olic

y, e

mpl

oym

ent a

nd so

cial

affa

irs (

Chap

ter 6

-par

agra

ph 6

.44)

, th

e EC

A co

nsid

ers t

hat f

or a

larg

e pa

rt o

f th

e tr

ansa

ctio

ns a

ffect

ed b

y qu

antif

iabl

e er

rors

, suf

ficie

nt in

form

atio

n w

as a

vaila

ble

for t

he M

embe

r Sta

te a

utho

ritie

s to

have

pre

vent

ed,

dete

cted

and

cor

rect

ed th

e er

rors

bef

ore

cert

ifyin

g th

e ex

pend

iture

to th

e Co

mm

issio

n (s

ee a

lso

reco

mm

enda

tion

2).

Que

stio

n ad

dres

sed

to a

ll M

embe

r Sta

tes:

5.1

Has y

our M

embe

r Sta

te e

stab

lishe

d m

easu

res t

o im

prov

e m

anag

emen

t ver

ifica

tions

and

to e

nhan

ce th

e ef

fect

iven

ess o

f the

che

cks c

arrie

d ou

t bef

ore

cert

ifyin

g ex

pend

iture

to th

e Co

mm

issio

n?

Y

es. I

f Yes

, ple

ase

prov

ide

som

e ex

ampl

es a

nd d

escr

ibe

thei

r effe

ctiv

enes

s

No.

If N

o, p

leas

e ex

plai

n w

hy

6) S

tate

Aid

In

Cha

pter

6 (f

or re

gion

al p

olic

y em

ploy

men

t and

soci

al a

ffairs

) the

ECA

not

ed th

at in

frin

gem

ents

of S

tate

Aid

rule

s wer

e an

othe

r sig

nific

ant

sour

ce o

f err

or.

Que

stio

n ad

dres

sed

to a

ll M

embe

r Sta

tes:

6.1

Does

the

man

date

of t

he A

udit

Auth

ority

(ies)

in y

our M

embe

r Sta

te in

clud

e ch

ecks

on

com

plia

nce

with

stat

e ai

d ru

les?

Yes

-

N

o –

if N

o, b

riefly

exp

lain

why

.

6.2

Has y

our M

embe

r Sta

te id

entif

ied

any

syst

emic

issu

es o

r def

icie

ncie

s rel

ated

to st

ate

aid

rule

s in

the

rem

it of

the

ESI f

unds

105

Y

es -

if Y

es d

escr

ibe

the

issue

s/de

ficie

ncie

s

No

6.3

Does

you

r Mem

ber S

tate

pla

n to

take

/ or h

as it

alre

ady

take

n an

y pr

even

tive

mea

sure

s in

this

cont

ext?

Y

es -

if Y

es, d

escr

ibe

the

mea

sure

s

N

o - i

f No

give

reas

ons w

hy n

ot

7) C

omm

on P

rovi

sion

s Reg

ulat

ion

and

ESF

regu

latio

n In

Cha

pter

6 th

e Co

urt r

ecom

men

ds th

at th

e M

embe

r Sta

tes s

houl

d m

ake

bett

er u

se o

f the

pos

sibili

ties s

et o

ut in

the

Com

mon

Pro

visio

ns

Regu

latio

n an

d ES

F re

gula

tion

for t

he 2

014-

2020

per

iod

conc

erni

ng si

mpl

ified

cos

t opt

ions

(rec

omm

enda

tion

3).

Que

stio

n ad

dres

sed

to a

ll M

embe

r Sta

tes:

7.1

In th

e co

ntex

t of E

RDF/

CF p

rogr

amm

es, w

hich

act

ions

/pla

ns h

ave

been

put

in p

lace

to u

se si

mpl

ified

cos

t opt

ions

mor

e w

idel

y in

the

2014

-20

20 p

erio

d?

106

Mem

ber

Stat

es r

eplie

s to

ques

tions

in A

nnex

III

A

UST

RIA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

0

Q 1

.2.

The

perf

orm

ance

indi

cato

rs h

ave

been

est

ablis

hed

for e

ach

OP.

Add

ition

al o

r com

plem

enta

ry in

dica

tors

spe

cific

to th

e pr

ogra

mm

e m

ay a

lso

be e

stab

lishe

d. F

urth

er a

dditi

onal

indi

cato

rs f

or th

e ER

DF

and

ESF

in th

e co

ntex

t of

the

impa

ct-b

ased

app

roac

h of

the

fede

ral

budg

et. I

n th

at r

espe

ct, s

ettin

g ob

ject

ives

for

the

eff

ectiv

e co

ordi

natio

n an

d se

ttlem

ent

of f

unds

(ER

DF

and

ESF)

, e.g

. co

mpl

etio

n of

the

ERD

F R

efor

m A

gend

a by

201

5 as

a m

ilest

one.

Pro

gram

me

indi

cato

rs fo

r the

EM

FF.

As

wel

l as

the

'com

mon

ind

icat

ors',

the

fol

low

ing

addi

tiona

l in

dica

tors

will

be

used

in

Aus

tria

as p

art

of t

he E

SF 2

014-

2020

pr

ogra

mm

e:

IP 8

i: 'P

artic

ipan

ts w

ho a

re in

em

ploy

men

t, in

clud

ing

self-

empl

oym

ent,

upon

com

plet

ion'

; 'W

omen

'

IP 8

iv: '

Com

pani

es th

at re

ceiv

ed a

dvic

e le

adin

g to

an

agre

ed o

utco

me';

'SM

Es th

at re

ceiv

ed a

dvic

e'; 'A

ll co

mpa

nies

that

rece

ived

ad

vice

'; 'W

omen

'; 'P

roje

cts f

or p

oorly

edu

cate

d w

omen

'; 'W

omen

that

rece

ived

supp

ort,

who

se e

mpl

oym

ent s

ituat

ion

has i

mpr

oved

si

x m

onth

s afte

r com

plet

ion

of th

e m

easu

res';

'Wom

en th

at re

ceiv

ed su

ppor

t'

IP 8

vi: '

Com

pani

es th

at re

ceiv

ed a

dvic

e le

adin

g to

an

agre

ed p

rogr

amm

e/pl

an o

f mea

sure

s'; 'A

ll co

mpa

nies

that

rece

ived

adv

ice';

'S

MEs

that

rec

eive

d ad

vice

'; 'E

mpl

oyed

per

sons

(45

+)';

'Mic

ro-e

nter

pris

es th

at r

ecei

ved

supp

ort,

as w

ell a

s SM

Es, a

nd th

at a

re

carr

ying

out

follo

w-u

p A

ctiv

e A

gein

g ac

tiviti

es 1

2 m

onth

s afte

r the

mea

sure

s hav

e be

en c

ompl

eted

'; 'P

roje

cts'

IP 9

i: 'P

rope

rly c

ompl

eted

par

ticip

atio

n of

non

-em

ploy

ed p

erso

ns w

ho a

re n

ot in

edu

catio

n or

trai

ning

'; 'P

roje

cts

that

hav

e fu

lly

107

com

plet

ed t

he d

evel

opm

ent

cycl

e'; 'P

roje

cts';

'Em

ploy

ed p

erso

ns';

'Non

-em

ploy

ed p

erso

ns n

ot i

n ed

ucat

ion

or t

rain

ing

with

a

max

imum

of I

SCED

1-2

'

IP 1

0i: '

You

ng p

erso

ns p

artic

ipat

ing

in m

easu

res

to p

reve

nt e

arly

sch

ool l

eavi

ng a

nd w

ho a

re in

edu

catio

n or

trai

ning

imm

edia

tely

up

on c

ompl

etio

n of

the

se m

easu

res

(Fed

eral

Min

istry

for

Edu

catio

n an

d W

omen

's A

ffai

rs (

BM

BF)

)'; 'Y

oung

per

sons

who

se

educ

atio

n or

trai

ning

obj

ectiv

es h

ave

been

set

or r

aise

d hi

gher

, who

are

read

y fo

r voc

atio

nal t

rain

ing

or h

ave

com

plet

ed e

duca

tion

and/

or w

ho a

re re

ceiv

ing

follo

w-u

p as

sist

ance

in e

nter

ing

the

labo

ur m

arke

t'; 'U

nder

-25s

par

ticip

atin

g in

BM

BF

mea

sure

s'; 'U

nder

-25

s pa

rtici

patin

g in

BM

ASK

(Fe

dera

l Min

istry

of

Labo

ur, S

ocia

l Aff

airs

and

Con

sum

er P

rote

ctio

n) m

easu

res';

'You

ng p

erso

ns

who

se m

othe

r ton

gue

is n

ot G

erm

an';

IP 1

0iii:

'Per

sons

par

ticip

atin

g in

bas

ic e

duca

tion

whe

re a

cer

tific

ate

is a

war

ded

upon

com

plet

ion'

; 'P

roje

cts

aim

ed a

t fu

rther

de

velo

ping

bas

ic e

duca

tion

oppo

rtuni

ties';

'Per

sons

par

ticip

atin

g in

bas

ic e

duca

tion'

; 'Pe

rson

s pa

rtici

patin

g in

bas

ic e

duca

tion

with

IS

CED

1-2

'; 'P

artic

ipan

ts w

ho w

ill g

ain/

have

gai

ned

a qu

alifi

catio

n up

on c

ompl

etio

n'; '

Proj

ects

'; 'IS

CED

1 a

nd 2

'

Tech

nica

l ass

ista

nce:

'ESF

hom

epag

e'; 'E

SF n

ewsp

aper

s'; 'E

valu

atio

ns/s

tudi

es';

'Eve

nts'

Perf

orm

ance

fra

mew

ork:

'Allo

cate

d ex

pend

iture

whi

ch i

s re

cord

ed i

n th

e ac

coun

ting

syst

em o

f th

e C

ertif

ying

Aut

horit

y an

d ce

rtifie

d by

the

m';

'Com

pani

es t

hat

rece

ived

adv

ice';

'N

on-e

mpl

oyed

per

sons

not

in

educ

atio

n or

tra

inin

g';

'Par

ticip

ants

'; 'U

nem

ploy

ed a

nd n

on-e

mpl

oyed

'.

Q 1

.3.

Yes

;

In p

rinci

ple

yes,

but w

ith th

e re

stric

tion

that

the

prog

ram

mes

' per

form

ance

fra

mew

orks

hav

e sc

hedu

led

a pe

rfor

man

ce r

evie

w in

20

19, a

nd i

nter

med

iate

obj

ectiv

es (

mile

ston

es)

will

onl

y be

set

in

2018

. Per

form

ance

ind

icat

ors

will

be

reco

rded

at

indi

vidu

al

proj

ect l

evel

dur

ing

mon

itorin

g.

EMFF

: Th

e in

dica

tors

are

rec

orde

d in

the

cen

tral

data

base

in

acco

rdan

ce w

ith A

ustri

a's O

pera

tiona

l Pr

ogra

mm

e –

2014

-202

0 Eu

rope

an M

ariti

me

and

Fish

erie

s Fun

d.

Dat

a m

ay b

e pr

ovid

ed re

gard

ing

the

indi

cato

rs se

t out

in th

e A

ustri

an E

SF P

rogr

amm

e (s

tatu

s of p

rogr

amm

e im

plem

enta

tion)

.

108

Q 2

.2.

Yes

;

Onl

y a

sing

le fi

nanc

ial i

nstru

men

t is

envi

sage

d in

the

Aus

trian

'Inv

estin

g in

Gro

wth

and

Job

s' (I

WB

) pro

gram

me.

The

Man

agin

g A

utho

rity

will

repo

rt in

acc

orda

nce

with

the

Gui

danc

e N

ote.

No;

No

finan

cial

ins

trum

ents

will

be

impl

emen

ted

in A

ustri

a w

ith r

egar

d to

the

EA

FRD

. Th

e qu

ality

of

the

annu

al r

epor

t on

the

EA

FRD

pro

gram

me

was

con

side

red

very

goo

d by

the

Com

mis

sion

. Not

env

isag

ed f

or th

e EM

FF. F

inan

cial

inst

rum

ents

are

not

en

visa

ged

in A

ustri

a fo

r the

ESF

.

Q 4

.1.

No;

Out

side

the

field

of E

U c

o-fu

nded

pro

ject

s, no

resu

lts a

re k

now

n.

With

rega

rd to

the

Aus

trian

EA

FRD

pro

gram

me,

pub

lic p

rocu

rem

ent i

s not

wid

espr

ead.

Ess

entia

lly, i

t is l

imite

d to

tech

nica

l as

sist

ance

. In

such

cas

es, g

reat

em

phas

is is

pla

ced

on c

ompl

ying

with

the

rule

s on

proc

urem

ent.

No

addi

tiona

l exp

erie

nce

was

ga

ined

in th

e EA

FRD

pro

gram

me.

Q 5

.1.

Yes

; In

crea

sing

the

num

ber o

f sup

ervi

sory

aud

its b

y th

e M

anag

ing

Aut

horit

y (M

A) o

n in

term

edia

te b

odie

s. In

crea

sing

the

num

ber o

f au

dits

by

the

Cer

tifyi

ng A

utho

rity

(CA

) bef

ore

certi

ficat

ion

of e

xpen

ditu

re. T

his i

s eff

ectiv

e in

that

mor

e pr

ojec

ts a

re b

eing

ch

ecke

d by

the

MA

/CA

. Cor

rect

ions

are

now

als

o ca

rrie

d ou

t bef

ore

certi

ficat

ion

at th

e Eu

rope

an C

omm

issi

on, o

r pro

ject

s are

not

in

clud

ed in

pay

men

t app

licat

ions

. Em

ploy

men

t OP

(OP

Bes

chäf

tigun

g): T

o en

sure

that

the

cont

rols

are

as e

ffec

tive

as p

ossi

ble,

the

inte

rmed

iate

bod

ies c

arry

ing

out

the

asse

ssm

ents

are

con

stan

tly m

onito

red

by a

n ex

tern

al se

rvic

e pr

ovid

er o

f the

Man

agin

g A

utho

rity.

In th

is w

ay, a

ny e

rror

s di

scov

ered

, e.g

. in

settl

emen

t pro

cess

es, c

an b

e el

imin

ated

at a

n ea

rly st

age.

Ph

asin

g ou

t OP:

The

Man

agin

g A

utho

rity

in B

urge

nlan

d ha

s bee

n in

cha

rge

of th

e B

urge

nlan

d ER

DF

and

ESF

prog

ram

mes

sinc

e 19

95. O

ver t

his p

erio

d, th

e M

anag

ing

Aut

horit

y to

geth

er w

ith th

e bo

dies

resp

onsi

ble

for a

war

ding

subs

idie

s hav

e de

velo

ped

a sy

stem

bas

ed o

n th

e re

gula

r exc

hang

e of

info

rmat

ion

for t

he p

urpo

se o

f mon

itorin

g th

e im

plem

enta

tion

of th

e pr

ogra

mm

e.

Mee

tings

are

hel

d fiv

e tim

es a

yea

r, ch

aire

d by

the

Man

agin

g A

utho

rity

with

the

parti

cipa

tion

of th

e bo

dies

resp

onsi

ble

for

awar

ding

subs

idie

s. A

gend

a fo

r mee

tings

: Sta

tus o

f pro

ject

impl

emen

tatio

n an

d fin

anci

al im

plem

enta

tion

(fun

d co

mm

itmen

ts),

pres

enta

tion

of a

ppro

ved

proj

ects

, pas

sing

on

of in

form

atio

n re

gard

ing

proj

ect a

ccou

nts,

disc

ussi

on o

f err

ors i

dent

ified

with

rega

rd

to e

ligib

le c

osts

and

exp

endi

ture

. Thi

s sys

tem

of e

xcha

ngin

g in

form

atio

n on

the

runn

ing

of th

e pr

ogra

mm

e ha

s ful

ly p

rove

d its

w

orth

. Thi

s, al

ong

with

kee

ping

the

adm

inis

trativ

e or

gani

satio

n as

sim

ple

as p

ossi

ble,

has

allo

wed

the

Man

agin

g A

utho

rity

to

109

avoi

d ha

ving

to in

trodu

ce sp

ecia

lly-ta

ilore

d m

easu

res f

or e

ffec

tive

insp

ectio

ns.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

With

reg

ard

to th

e ER

DF,

the

aid

sche

mes

impl

emen

ted

will

als

o be

aud

ited

as p

art o

f th

e in

itial

sys

tem

aud

its. I

n or

der

to d

eal

with

que

stio

ns o

n St

ate

aid,

the

ESF

Man

agin

g A

utho

rity

has p

repa

red

som

e ba

sic

info

rmat

ion,

as w

ell a

s a c

heck

-list

, and

mad

e it

avai

labl

e to

the

impl

emen

ting

bodi

es.

Q 7

.1.

With

rega

rd to

the

ERD

F: si

mpl

ified

cal

cula

tion

of p

erso

nnel

cos

ts, f

lat-r

ate

over

head

cha

rges

.

B

EL

GIU

M

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

0

Q 1

.2.

Pour

le

FED

ER m

ains

tream

en

Wal

loni

e, e

n ce

qui

con

cern

e le

cad

re d

e pe

rfor

man

ce,

la p

lupa

rt de

s in

dica

teur

s so

nt d

es

indi

cate

urs c

omm

uns.

Il y

a 3

indi

cate

urs

repr

is d

ans

le c

adre

de

perf

orm

ance

qui

son

t de

s in

dica

teur

s de

réa

lisat

ion

spéc

ifiqu

es :

« S

ectio

n/at

elie

r ac

tual

isés

» ,

« Pr

ojet

s int

égré

s vis

ant l

a m

obili

té d

urab

le »

, “V

illes

/qua

rtier

s bén

éfic

iant

de

plan

s de

revi

talis

atio

n so

uten

us »

EAFR

D-V

L (V

L =

Vla

ande

ren

(Fla

nder

s)):

For

prio

rity

3, a

n al

tern

ativ

e in

dica

tor

is u

sed

to r

epla

ce t

he c

omm

on i

ndic

ator

s ‘N

umbe

r of h

oldi

ngs p

artic

ipat

ing

in ri

sk m

anag

emen

t sch

emes

(3B

)' an

d 'N

umbe

r of a

gric

ultu

ral h

oldi

ngs s

uppo

rted

unde

r qua

lity

sche

mes

, loc

al m

arke

ts, .

.. (3

A)'.

The

alte

rnat

ive

indi

cato

r is ‘

Num

ber o

f act

ions

supp

orte

d fo

r inv

estm

ent (

3A)'

110

The

sam

e in

dica

tor

‘Num

ber

of a

ctio

ns s

uppo

rted

for

inve

stm

ent'

is a

lso

adop

ted

for

prio

rity

5 (f

ocus

are

a 5d

) in

add

ition

to th

e co

mm

on in

dica

tors

for P

riorit

y 5.

ESF-

VL:

Indi

cato

rs a

s set

out

in th

e 14

-20

oper

atio

nal p

rogr

amm

e (O

P)

Q 1

.3.

Yes

;

Pour

le F

EDER

mai

nstre

am e

n W

allo

nie,

mêm

e s’

ils n

e so

nt o

blig

atoi

res

que

pour

201

8 et

202

3, le

s in

dica

teur

s fo

nt l’

obje

t d’u

ne

quan

tific

atio

n an

nuel

le p

our l

es p

rogr

amm

es o

péra

tionn

els F

EDER

mai

nstre

am.

La p

lupa

rt de

s ind

icat

eurs

de

résu

ltat s

ont c

olle

ctés

aup

rès d

e l’I

nstit

ut w

allo

n de

l’év

alua

tion,

de

la p

rosp

ectiv

e et

de

la st

atis

tique

su

r un

e ba

se a

nnue

lle. I

l y

a né

anm

oins

que

lque

s ex

cept

ions

(ex

empl

e :

Inte

nsité

de

R&

D d

e l'e

nsem

ble

de l

'écon

omie

) po

ur

lesq

uels

la fr

éque

nce

de ra

ppor

tage

est

tous

les

2 an

s. En

ce

qui c

once

rne

les

indi

cate

urs

de ré

alis

atio

n (q

u’ils

soi

ent c

omm

uns

ou

spéc

ifiqu

es),

ils so

nt q

uant

ifiés

de

faço

n an

nuel

le a

uprè

s des

por

teur

s de

proj

ets.

No;

It w

ill st

ill n

ot b

e po

ssib

le to

ans

wer

mos

t eva

luat

ion

ques

tions

in th

e co

mpr

ehen

sive

ann

ual r

epor

t 201

7. T

he e

valu

atio

n qu

estio

ns

to b

e an

swer

ed in

201

7 ga

uge

the

impa

ct o

f the

mea

sure

s on

the

basi

s of

'clo

sed

proj

ects

' (i.e

. pro

ject

s/co

ntra

cts

whi

ch w

ere

fully

di

sbur

sed)

. In

view

of

the

late

laun

ch o

f th

e Fl

emis

h R

ural

Dev

elop

men

t Pro

gram

me

(PD

PO I

II (

2015

, som

e m

easu

res

in 2

016)

an

d th

e fa

ct th

at m

any

proj

ects

run

for

sev

eral

yea

rs, n

ot m

any

proj

ects

will

hav

e be

en d

isbu

rsed

by

2017

. The

re w

ill b

e so

me

outp

ut d

ata

(num

ber

of p

roje

cts

or c

omm

itmen

ts,

aid,

...),

but

not

muc

h. 2

017

is t

here

fore

too

ear

ly i

n te

rms

of m

easu

ring

or

calc

ulat

ing

the

impa

ct (a

s req

uest

ed in

the

2017

eva

luat

ion

ques

tions

).

Q 2

.2.

No;

La W

allo

nie

n’a

pas e

u de

reto

ur n

égat

if su

r les

doc

umen

ts fo

urni

s.

Cur

rent

ly, E

AFR

D-V

L ha

s not

dep

loye

d an

y fin

anci

al in

stru

men

ts.

ESF-

VL:

Not

app

licab

le in

the

ESF

ERD

F-V

L: N

o co

mm

ents

rece

ived

rega

rdin

g th

e qu

ality

of r

epor

ting

+ no

fina

ncia

l ins

trum

ents

rela

ting

to E

RD

F-V

L

111

Q 4

.1.

Pour

la B

elgi

que,

il y

a ic

i lie

u de

faire

réfé

renc

e à

la p

rocé

dure

de

cont

rôle

adm

inis

tratif

et b

udgé

taire

, qui

a, e

ntre

aut

res,

pour

but

de

vér

ifier

la lé

galit

é et

la ré

gula

rité

des p

ropo

sitio

ns li

ées a

ux m

arch

és p

ublic

s.

ESF-

VL:

No,

we

follo

w th

e C

omm

issi

on's

guid

elin

es o

f 19

Dec

embe

r 201

3, 'G

uide

lines

for d

eter

min

ing

finan

cial

cor

rect

ions

to b

e m

ade

to e

xpen

ditu

re fi

nanc

ed b

y th

e U

nion

und

er sh

ared

man

agem

ent,

for n

on-c

ompl

ianc

e w

ith th

e ru

les o

n pu

blic

pro

cure

men

t’.

ERD

F-V

L: N

o, w

e fo

llow

the

Com

mis

sion

's gu

idel

ines

of 1

9 D

ecem

ber 2

013,

'Gui

delin

es fo

r det

erm

inin

g fin

anci

al c

orre

ctio

ns to

be

mad

e to

exp

endi

ture

fina

nced

by

the

Uni

on u

nder

shar

ed m

anag

emen

t, fo

r non

-com

plia

nce

with

the

rule

s on

publ

ic

proc

urem

ent’.

Q 5

.1.

Yes

;

Pour

la p

ério

de d

e pr

ogra

mm

atio

n 20

07-2

013

(201

5), p

our l

es p

rogr

amm

es o

péra

tionn

els

FED

ER m

ains

tream

de

la W

allo

nie,

les

taux

d’e

rreu

r con

stat

és p

ar l’

Aut

orité

d’a

udit

sont

les s

uiva

nts :

Cec

i est

le ré

sulta

t des

pro

cédu

res m

ises

en

plac

e, c

omm

e :

- Rap

pel d

es d

iffér

ents

con

trôle

s aux

bén

éfic

iaire

s ;

- R

ègle

s d’é

ligib

ilité

sim

ples

;

- Util

isat

ion

des c

oûts

forf

aita

ires ;

- Vad

e m

ecum

exp

licita

nt le

s pro

cédu

res à

suiv

re ;

- Exh

aust

ivité

du

cont

rôle

de

prem

ier n

ivea

u ;

- Sép

arat

ion

clai

re d

es fo

nctio

ns e

ntre

les t

rois

aut

orité

s (ge

stio

n, c

ertif

icat

ion,

aud

it) ;

- Bon

ne s

ensi

bilis

atio

n du

per

sonn

el d

e l’A

utor

ité d

e ge

stio

n qu

ant à

la ré

glem

enta

tion

spéc

ifiqu

e de

s Fo

nds

stru

ctur

els

et q

uant

à

la m

atiè

re d

es ir

régu

larit

és (y

com

pris

les c

as d

e fr

aude

s) v

ia la

diff

usio

n d’

info

rmat

ions

;

- Pa

rtici

patio

n de

s ad

min

istra

tions

fon

ctio

nnel

les

au g

roup

e de

trav

ail O

LAF

: évo

lutio

n de

la r

égle

men

tatio

n ap

plic

able

, en

ce

112

com

pris

la ju

rispr

uden

ce, d

es c

as c

oncr

ets d

’irré

gula

rités

ou

de fr

aude

s (cf

. poi

nt su

ivan

t);

- Par

ticip

atio

n à

des s

émin

aire

s sur

la fr

aude

;

- Util

isat

ion

du sy

stèm

e «

AR

AC

HN

E »,

dès

qu’

il se

ra o

péra

tionn

el, c

omm

e ou

til d

es o

péra

tions

susc

eptib

les d

’être

exp

osée

s à d

es

risqu

es d

e fr

aude

, de

conf

lits d

’inté

rêts

ou

à de

s irr

égul

arité

s;

- Atte

ntio

n pl

us st

ricte

pou

r les

dom

aine

s où

les r

isqu

es d

’irré

gula

rités

/frau

de so

nt p

lus é

levé

s :

- Mar

chés

pub

lics :

con

trôle

a p

riori

des p

rocé

dure

s, ju

stifi

catio

n de

s mod

ifica

tions

pou

r un

mar

ché

en c

ours

.

- Aid

es d

’Eta

t : p

oint

de

cont

act «

Aid

es d

’Eta

t » a

u se

in d

e la

DG

O6

Econ

omie

,Em

ploi

et R

eche

rche

, séa

nces

d’in

form

atio

n po

ur

le p

erso

nnel

con

cern

é, é

tude

sur

la c

onfo

rmité

des

mes

ures

ave

c la

rég

lem

enta

tion

eur

opée

nne

et in

tégr

atio

n da

ns le

pro

cess

us

déci

sion

nel.

Les

faib

less

es id

entif

iées

dan

s le

rap

port

annu

el d

e co

ntrô

le 2

014

FSE

invi

tant

à d

es a

ctio

ns d

e la

par

t de

l’Aut

orité

d’a

udit,

de

l’Aut

orité

de

gest

ion

et d

u C

entre

de

coor

dina

tion

et d

e ge

stio

n de

s fo

nds

euro

péen

nes

pour

l’en

seig

nem

ent d

e pr

omot

ion

soci

ale

(CC

G-E

PS),

une

réun

ion

a eu

lieu

ent

re le

s diff

éren

tes A

utor

ités à

ce

suje

t le

2 fé

vrie

r 201

5. U

n pl

an d

’act

ion,

vis

ant à

iden

tifie

r et

à es

timer

l’er

reur

rele

vée

au se

in d

es d

iffér

ents

éta

blis

sem

ents

de

l’Ens

eign

emen

t de

prom

otio

n so

cial

e, a

été

dem

andé

au

CC

G p

ar

l’Aut

orité

d’a

udit

en d

ate

du 1

0 fé

vrie

r 201

5.

Par

aille

urs

l’Aut

orité

de

gest

ion

a ég

alem

ent é

té s

ollic

itée

à ré

dige

r un

pla

n d’

actio

n fa

ce a

ux d

iffér

ente

s fa

ible

sses

iden

tifié

es

dans

l’av

is a

nnue

l et l

e ra

ppor

t ann

uel d

e co

ntrô

le 2

014.

Cel

le-c

i y a

répo

ndu

en d

ate

du 1

2 fé

vrie

r 201

5. L

a C

AIF

renv

oie

à ce

s do

cum

ents

pou

r le

déta

il.

Suite

à la

tran

smis

sion

par

l’A

utor

ité d

e ge

stio

n FE

DER

d’u

ne n

ote

d’or

ient

atio

n re

lativ

e au

x m

odifi

catio

ns e

n co

urs

d’ex

écut

ion

d’un

mar

ché

publ

ic, a

ux b

énéf

icia

ires

et a

ux a

dmin

istra

tions

fon

ctio

nnel

les,

un a

udit

des

mod

ifica

tions

app

orté

es a

u sy

stèm

e de

ge

stio

n et

de

cont

rôle

en

term

es d

e vé

rific

atio

n de

l’ex

écut

ion

des

mar

chés

pub

lics

sera

réal

isé

par l

’Aut

orité

d’a

udit

pour

la fi

n de

l’a

nnée

201

5. L

es c

oncl

usio

ns d

e ce

s tra

vaux

figu

rero

nt d

ans

le ra

ppor

t ann

uel d

e co

ntrô

le F

EDER

qui

ser

a tra

nsm

is p

our l

e 31

cem

bre

2015

à la

Com

mis

sion

.

Il y

a en

out

re li

eu d

e m

entio

nner

les e

ffor

ts q

ue le

SPP

IS a

eng

agés

dep

uis l

e m

ois d

e ju

illet

der

nier

pou

r am

élio

rer l

e co

ntrô

le d

u FS

E :

des

mes

ures

cor

rect

rices

ont

en

effe

t ét

é en

trepr

ises

au

nive

au d

e la

pro

gram

mat

ion

fédé

rale

FSE

pou

r am

élio

rer

les

cont

rôle

s de

ges

tion

et l’

effic

acité

des

con

trôle

s de

ges

tion

et p

lus

parti

culiè

rem

ent s

ur le

s pr

ojet

s de

l’ax

e 2

pour

lesq

uels

des

113

défic

ienc

es a

vaie

nt é

té c

onst

atée

s .

Une

nou

velle

mét

hodo

logi

e de

con

trôle

( av

ec u

ne n

ouve

lle c

heck

list

et v

isite

syst

émat

ique

sur p

lace

) a

été

éla

boré

e .

Les

proj

ets d

e l’a

xe 2

ont

été

reco

ntrô

lés à

100

% à

l’ai

de c

ette

nou

velle

mét

hodo

logi

e de

con

trôle

.

Ces

diff

éren

tes m

esur

es n

ous o

nt p

erm

is d

’am

élio

rer l

a qu

alité

des

con

trôle

s au

nive

au d

e l’a

utor

ité d

e ge

stio

n et

la p

iste

d’a

udit

.

La d

escr

iptio

n pr

écis

e de

ces

am

élio

ratio

ns d

es m

esur

es d

e co

ntrô

les s

era

com

mun

iqué

e à

la C

CE

ESF-

VL:

Usi

ng p

ro-a

ctiv

e co

achi

ng a

ctiv

ities

for t

he fi

nal b

enef

icia

ries.

ERD

F-V

L: E

nhan

ced

fron

t-lin

e co

ntro

l thr

ough

the

intro

duct

ion

of m

ore

deta

iled

cont

rol b

y tw

o pa

irs o

f eye

s.

Q 6

.1.

Yes

;

Les

Aut

orité

s d’

audi

t son

t cen

sées

exa

min

er l’

ense

mbl

e de

s di

men

sion

s qu

i dét

erm

inen

t la

léga

lité

et la

rég

ular

ité d

es d

épen

ses

pour

lesq

uelle

s un

cofin

ance

men

t eur

opée

n es

t sol

licité

.

Cel

a ét

ant,

la q

uest

ion

ne s

e po

se p

as ta

nt d

ans

le c

adre

du

FSE

que

dans

le c

adre

du

FED

ER. E

lle p

eut s

e po

ser é

gale

men

t dan

s le

cadr

e du

Fon

ds p

our l

es fr

ontiè

res e

xtér

ieur

es (E

BF)

mai

s il s

embl

e qu

e ce

la so

rt du

pér

imèt

re d

u qu

estio

nnai

re.

Q 6

.2.

No

Q 6

.3.

Yes

;

Tout

pro

jet c

ofin

ancé

par

le F

EDER

mai

nstre

am e

n W

allo

nie

fait

syst

émat

ique

men

t l’o

bjet

d’u

n ex

amen

ex

ante

sur

le re

spec

t de

cette

légi

slat

ion.

En c

e qu

i con

cern

e le

FED

ER, u

ne e

xper

tise

porta

nt s

ur la

pro

blém

atiq

ue d

e la

com

patib

ilité

des

act

ions

cof

inan

cées

dan

s le

cad

re

de la

nou

velle

pro

gram

mat

ion

par r

appo

rt au

x ai

des d

’Eta

ts a

été

con

fiée

par l

e D

épar

tem

ent d

e C

oord

inat

ion

des F

onds

Stru

ctur

els

(DC

FS) a

u ca

bine

t GID

E, sp

écia

lisé

en la

mat

ière

.

Par a

illeu

rs, l

e go

uver

nem

ent W

allo

n vi

ent d

e m

arqu

er s

on a

ccor

d co

ncer

nant

la c

onst

itutio

n d’

un p

oint

de

cont

act u

niqu

e «

aide

s d’

état

s » a

u se

in d

e la

DG

O6

dans

le d

épar

tem

ent d

e la

Com

pétit

ivité

et d

e l’I

nnov

atio

n.

114

On

25 S

epte

mbe

r 20

15,

the

Flem

ish

Gov

ernm

ent

adop

ted

a D

ecis

ion

on s

uppo

rt to

sch

emes

in

the

cont

ext

of t

he E

urop

ean

Reg

iona

l Dev

elop

men

t Fun

d an

d th

e Eu

rope

an S

ocia

l Fun

d. T

his

deci

sion

ens

ures

that

the

man

agin

g au

thor

ity m

ay o

nly

appr

ove

appl

icat

ions

with

in th

e m

axim

um th

resh

olds

of E

U S

tate

aid

rule

s. Th

is d

ecis

ion

was

not

ified

to th

e Eu

rope

an C

omm

issi

on a

nd is

re

gist

ered

und

er re

fere

nce

num

bers

SA

. 431

90 (E

RD

F/In

terr

eg) a

nd S

A. 4

3191

(ESF

). Th

e m

anag

ing

auth

ority

may

dec

ide

eith

er

that

ther

e is

no

Stat

e ai

d or

that

the

Stat

e ai

d m

ay b

e co

mpa

tible

with

the

prov

isio

ns o

f the

Gen

eral

Blo

ck E

xem

ptio

n R

egul

atio

n (C

omm

issi

on R

egul

atio

n N

o 65

1/20

14 o

f 17

June

201

4 de

clar

ing

certa

in c

ateg

orie

s of a

id u

nder

Arti

cles

107

and

108

of t

he T

reat

y co

mpa

tible

with

the

inte

rnal

mar

ket,

EU O

ffic

ial J

ourn

al o

f 26

June

201

4, L

187

/1).

A ju

stifi

catio

n is

als

o po

ssib

le o

n th

e ba

sis

of

the

de m

inim

is R

egul

atio

n or

the

SGEI

rule

s.

ESF-

VL:

Ass

essm

ent o

f Sta

te a

id, g

uide

lines

from

the

calls

to p

rom

oter

s, St

ate

aid

the

train

ing

for m

anag

ing

auth

ority

sta

ff, a

nd

stru

ctur

al a

gree

men

ts i

n th

e co

ntex

t of

the

flo

w o

f in

form

atio

n fr

om t

he C

omm

issi

on v

ia t

he c

ompe

tent

aut

horit

ies

to f

inal

-be

nefic

iary

leve

l.

ERD

F-V

L: u

nder

impl

emen

tatio

n du

ring

the

2014

-202

0 pr

ogra

mm

ing

perio

d; th

orou

gh a

nd d

ocum

ente

d as

sess

men

t of S

tate

aid

, pr

actic

al g

uide

lines

for p

roje

ct p

rom

oter

s, St

ate

aid

train

ing

for m

anag

ing

auth

ority

staf

f.

Q 7

.1.

Util

isat

ion

géné

ralis

ée d

es b

arèm

es s

tand

ards

de

coût

s ho

raire

s po

ur le

s dé

pens

es d

e pe

rson

nel e

t app

licat

ion

d’un

taux

forf

aita

ire

de 1

5% p

our l

es c

oûts

indi

rect

s.

B

UL

GA

RIA

Q 1

.1.

EAFR

D: 0

EMFF

: 0

ESF:

Yes

ERD

F: 0

CF:

0

115

Q 1

.2.

The

Man

agin

g A

utho

rity

of t

he O

pera

tiona

l Pr

ogra

mm

e ‘H

uman

Res

ourc

e D

evel

opm

ent’

will

rep

ort

prog

ress

bas

ed o

n th

e sp

ecifi

c in

dica

tors

stip

ulat

ed in

the

OP

‘Hum

an R

esou

rce

Dev

elop

men

t’.

Q 1

.3.

Yes

;

MLS

P: In

form

atio

n ab

out f

ulfil

ling

gene

ral a

nd sp

ecifi

c in

dica

tors

will

be

pres

ente

d fo

r the

sche

mes

whi

ch st

arte

d in

201

5.

Q 2

.2.

Yes

;

OPR

D: T

he M

anag

ing

Aut

horit

y of

the

Ope

ratio

nal P

rogr

amm

e ‘R

egio

nal D

evel

opm

ent’

2007

-201

3 (O

PRD

Man

agin

g A

utho

rity)

re

ceiv

es d

etai

led

info

rmat

ion

on a

regu

lar b

asis

abo

ut th

e ex

ecut

ion

of th

e JE

SSIC

A fi

nanc

ial i

nstru

men

t by

the

Euro

pean

In

vest

men

t Ban

k in

its c

apac

ity a

s a JE

SSIC

A H

oldi

ng F

und

for B

ulga

ria, o

n th

e ba

sis o

f an

annu

al p

rogr

ess r

epor

t and

a fi

nal

expe

nditu

re re

port

for t

he re

leva

nt y

ear,

as w

ell a

s a h

alf-

year

ly p

rogr

ess r

epor

t. A

s par

t of t

he re

ports

just

men

tione

d, th

e O

PRD

M

anag

ing

Aut

horit

y re

ceiv

es q

ualit

ativ

e an

d qu

antit

ativ

e in

form

atio

n fo

r the

exe

cutio

n ca

rrie

d ou

t by

the

JESS

ICA

Hol

ding

Fun

d an

d th

e U

rban

Dev

elop

men

t Fun

ds, n

eces

sary

to m

eet t

he o

blig

atio

n of

the

OPR

D M

anag

ing

Aut

horit

y to

subm

it a

repo

rt on

the

exec

utio

n of

the

finan

cial

inst

rum

ent t

o th

e Eu

rope

an C

omm

issi

on a

nd ‘N

atio

nal F

und’

age

ncy

in th

e B

ulga

rian

Min

istry

of

Fina

nces

. In

addi

tion,

the

OPR

D M

anag

ing

Aut

horit

y re

ceiv

es in

form

atio

n on

a m

onth

ly b

asis

from

the

Euro

pean

Inve

stm

ent B

ank

rega

rdin

g th

e si

ze o

f the

abs

orpt

ion

rate

s for

the

Hol

ding

Fun

d an

d U

rban

Dev

elop

men

t Fun

ds, a

s wel

l as t

he a

mou

nt fo

r the

pa

ymen

ts m

ade

to u

rban

dev

elop

men

t pro

ject

s fin

ance

d by

reso

urce

s fro

m th

e O

pera

tiona

l Pro

gram

me

‘Reg

iona

l Dev

elop

men

t’ 20

07–2

013.

Las

t but

not

leas

t, th

e O

PRD

Man

agin

g A

utho

rity

hold

s mon

thly

pro

gres

s mee

tings

with

the

Urb

an D

evel

opm

ent

Fund

s dur

ing

whi

ch a

dditi

onal

info

rmat

ion

is p

rovi

ded

abou

t the

pro

gres

s of u

rban

dev

elop

men

t pro

ject

s.

As o

f 201

3, th

e O

PRD

Man

agin

g A

utho

rity

has a

dopt

ed a

n an

nual

repo

rting

app

roac

h on

the

exec

utio

n of

the

finan

cial

inst

rum

ents

us

ing

the

SFC

syst

em, b

ased

on

the

mod

el o

f the

Gui

danc

e N

otes

. Fur

ther

mor

e, th

e O

PRD

Man

agin

g A

utho

rity

has s

ubm

itted

to

the

Cer

tifyi

ng A

utho

rity

two

inte

rmed

iate

repo

rts fo

r cer

tific

atio

n, w

hich

con

tain

info

rmat

ion

abou

t ver

ifiab

le a

mou

nts w

hen

impl

emen

ting

finan

cial

eng

inee

ring

inst

rum

ents

.

In re

gard

of t

he a

bove

, alth

ough

the

Gui

danc

e N

otes

on

repo

rting

for f

inan

cial

inst

rum

ents

EG

ESIF

-150

015-

06/0

5/20

15 re

late

to

the

2014

–202

0 pr

ogra

mm

ing

perio

d, a

sect

ion

entit

led

‘Fin

anci

al E

ngin

eerin

g’ h

as b

een

incl

uded

as p

art o

f the

Man

ual o

f pr

oced

ures

of t

he O

PRD

Man

agin

g A

utho

rity

for t

he p

erio

d 20

07–2

013,

pro

vidi

ng a

det

aile

d de

scrip

tion

of th

e re

porti

ng

proc

edur

es, i

n fu

ll co

mpl

ianc

e w

ith th

e ap

plic

able

nat

iona

l and

Eur

opea

n le

gisl

atio

n in

the

area

of f

inan

cial

inst

rum

ent r

epor

ting.

116

Q 3

.5.

ZH: F

requ

ent c

hang

es to

the

stat

utor

y re

gula

tions

in th

e ar

ea o

f pub

lic p

rocu

rem

ent,

The

bene

ficia

ries d

o no

t hav

e em

ploy

ees

who

are

qua

lifie

d in

the

area

of p

ublic

pro

cure

men

t rel

atin

g to

EU

pro

gram

me

expe

nditu

re.

Aud

it of

EU

Fun

ds E

xecu

tive

Age

ncy

(IA

OSE

S): F

irstly

, we

note

that

the

conc

lusi

ons i

n th

e re

port

from

the

Euro

pean

Cou

rt of

A

udito

rs, w

hich

form

the

basi

s for

this

que

stio

n, h

ave

been

mad

e as

a re

sult

of c

heck

s car

ried

out o

n be

nefic

iarie

s for

pro

ject

s be

ing

impl

emen

ted

usin

g re

sour

ces f

rom

the

Euro

pean

Agr

icul

tura

l Fun

d fo

r Rur

al D

evel

opm

ent (

EAFR

D).

The

Aud

it of

EU

Fu

nds E

xecu

tive

Age

ncy

does

not

per

form

the

func

tions

of a

n au

dit a

utho

rity

for t

he R

ural

Dev

elop

men

t Pro

gram

me.

The

sh

ortc

omin

gs h

ighl

ight

ed b

y us

in 2

014

in te

rms o

f app

lyin

g th

e pu

blic

pro

cure

men

t reg

ulat

ions

rela

te to

the

syst

ems f

or m

anag

ing

and

cont

rolli

ng th

e re

sour

ces f

rom

the

Euro

pean

Reg

iona

l Dev

elop

men

t Fun

d, th

e Eu

rope

an S

ocia

l Fun

d, th

e Eu

rope

an F

ishe

ries

Fund

and

the

Coh

esio

n Fu

nd, i

.e. f

or th

e ei

ght o

pera

tiona

l pro

gram

mes

and

thre

e cr

oss-

bord

er c

oope

ratio

n pr

ogra

mm

es.

Dur

ing

our a

udit

com

mitm

ents

in 2

014,

a to

tal o

f 464

pub

lic p

rocu

rem

ent p

roce

dure

s wer

e ve

rifie

d, w

here

218

of t

hem

wer

e fo

und

to b

e no

n-co

mpl

iant

with

the

appl

icab

le le

gisl

atio

n an

d fin

anci

al c

orre

ctio

ns p

ropo

sed.

The

se in

cide

nces

of n

on-c

ompl

ianc

e ha

ve

not b

een

note

d by

the

Man

agin

g A

utho

ritie

s dur

ing

verif

icat

ion

of th

e ex

pend

iture

and

the

erro

rs h

ave

not b

een

corr

ecte

d by

the

certi

fied

expe

nditu

re. A

fter c

ompl

etin

g th

e ch

ecks

, we

anal

ysed

the

reas

ons f

or th

e sh

ortc

omin

gs p

erm

itted

by

the

Man

agin

g A

utho

ritie

s dur

ing

verif

icat

ion

of th

e pu

blic

pro

cure

men

t exp

endi

ture

cer

tifie

d in

201

3, a

nd w

e es

tabl

ishe

d th

e fo

llow

ing:

- one

of t

he re

ason

s for

the

shor

tcom

ings

we

iden

tifie

d in

the

wor

k of

the

Man

agin

g A

utho

ritie

s is t

hat t

he e

xpen

ditu

re a

udite

d by

us

has

bee

n ve

rifie

d pr

ior t

o th

e co

min

g in

to fo

rce

of th

e ne

w C

omm

issi

on G

uide

lines

for d

eter

min

ing

finan

cial

cor

rect

ions

to b

e m

ade

to e

xpen

ditu

re fi

nanc

ed b

y th

e U

nion

und

er sh

ared

man

agem

ent,

for n

on-c

ompl

ianc

e w

ith th

e ru

les o

n pu

blic

pro

cure

men

t, ad

opte

d w

ith C

omm

issi

on D

ecis

ion

of 1

9 D

ecem

ber 2

013.

In k

eepi

ng w

ith th

e C

omm

issi

on’s

requ

irem

ents

, the

Aud

it A

utho

rity

appl

ies t

he a

bove

-men

tione

d gu

idel

ines

to th

e au

dits

for t

he o

pera

tions

invo

lvin

g th

e ex

pend

iture

cer

tifie

d in

201

3, o

f whi

ch th

e M

anag

ing

and

Cer

tifyi

ng A

utho

ritie

s hav

e be

en in

form

ed b

y m

eans

of a

lette

r dat

ed 2

4 Ja

nuar

y 20

14. T

he c

heck

lists

use

d by

the

Man

agin

g A

utho

ritie

s dur

ing

the

verif

icat

ion

proc

ess,

whi

le in

clud

ing

chec

ks a

t eve

ry st

age

of th

e pu

blic

pro

cure

men

t pro

cess

, do

not c

orre

spon

d to

the

new

type

s of i

rreg

ular

ities

des

crib

ed in

the

new

Com

mis

sion

Gui

delin

es a

nd th

eir f

inan

cial

impa

ct, a

s the

y ha

d no

t bee

n ap

plic

able

in 2

012/

2013

whe

n th

is e

xpen

ditu

re w

as v

erifi

ed. T

he C

omm

issi

on G

uide

lines

ado

pted

in D

ecem

ber 2

013

have

bee

n in

corp

orat

ed in

to n

atio

nal l

egis

latio

n w

ith C

ounc

il of

Min

iste

rs D

ecre

e 16

2 of

17

June

201

4, w

hich

cam

e in

to fo

rce

on

24 Ju

ne 2

014.

- an

impo

rtant

reas

on fo

r allo

win

g th

e sh

ortc

omin

gs w

hen

verif

ying

the

expe

nditu

re fo

r the

pub

lic p

rocu

rem

ent p

roce

dure

s is t

he

lack

of e

xper

tise

of th

e em

ploy

ees i

nvol

ved

in c

arry

ing

out t

he c

heck

s and

app

lyin

g a

unifo

rm a

ppro

ach

to v

erify

ing

the

publ

ic

proc

urem

ent p

roce

dure

s by

all t

he a

utho

ritie

s in

the

syst

em fo

r man

agin

g an

d co

ntro

lling

EU

reso

urce

s.

117

Q 3

.6.

IA O

SES:

As

a re

sult

of th

e di

scre

panc

ies

iden

tifie

d in

app

lyin

g th

e pu

blic

pro

cure

men

t pro

cedu

re re

gula

tions

, we

have

dra

wn

up

reco

mm

enda

tions

for

upd

atin

g th

e M

anag

ing

Aut

horit

ies’

Man

uals

of

proc

edur

es a

nd t

he c

heck

lists

use

d by

the

m i

n lin

e w

ith

Com

mis

sion

gui

delin

es a

nd t

he a

ppro

ach

used

by

the

Aud

it A

utho

rity

for

verif

ying

the

pub

lic p

rocu

rem

ent

proc

edur

es.

The

impl

emen

tatio

n of

thes

e re

com

men

datio

ns is

in th

e pr

oces

s of

bei

ng e

xam

ined

as

part

of th

e sy

stem

aud

its b

eing

car

ried

out i

n 20

15, w

hich

hav

e no

t bee

n co

mpl

eted

at t

he p

rese

nt ju

nctu

re.

In c

onne

ctio

n w

ith s

uspe

ndin

g th

e pa

ymen

ts fo

r the

OP

‘Env

ironm

ent’

and

the

OP

‘Reg

iona

l Dev

elop

men

t’ du

e to

the

num

erou

s de

viat

ions

fro

m th

e pu

blic

pro

cure

men

t pro

cedu

re r

egul

atio

ns, a

t the

req

uest

of

the

Dire

ctor

ate-

Gen

eral

for

Reg

iona

l and

Urb

an

Polic

y in

201

4, w

e ca

rrie

d ou

t fou

r spe

cial

sys

tem

aud

its. A

s a

resu

lt of

thes

e re

com

men

datio

ns, t

he M

anag

ing

Aut

horit

y fo

r the

O

P ‘R

egio

nal D

evel

opm

ent’

verif

ied

for a

sec

ond

time

the

certi

fied

expe

nditu

re o

f pub

lic p

rocu

rem

ent c

ontra

cts

for A

xis

1 an

d 3

of t

he p

rogr

amm

e, f

rom

the

sta

rt of

the

pro

gram

min

g pe

riod

until

30

June

201

4. A

ll er

rors

with

a f

inan

cial

im

pact

, ide

ntifi

ed

durin

g th

e re

peat

aud

its a

s ha

ving

a t

otal

val

ue o

f B

GN

88

794

154.

69,

have

bee

n po

sted

in

the

acco

unts

by

the

Man

agin

g A

utho

rity

and

refle

cted

acc

ordi

ngly

in th

e C

ertif

ying

Aut

horit

y’s a

ccou

ntin

g sy

stem

.

Whi

le im

plem

entin

g th

ese

reco

mm

enda

tion,

the

Man

agin

g A

utho

rity

for

OP

‘Env

ironm

ent’

also

ver

ified

for

a s

econ

d tim

e th

e ce

rtifie

d ex

pend

iture

for

239

pub

lic p

rocu

rem

ent

cont

ract

s fo

r w

hich

exp

endi

ture

was

cer

tifie

d fo

r th

e 20

10–2

013

perio

d. T

he

Man

agin

g A

utho

rity

advi

sed

that

the

finan

cial

impa

ct o

f the

indi

vidu

al a

nd fl

at-r

ate

finan

cial

cor

rect

ions

for t

he 2

39 c

ontra

cts f

rom

th

e po

pula

tion

used

to c

arry

out

a re

peat

ver

ifica

tion

of th

e ex

pend

iture

cer

tifie

d fo

r 201

3 ca

me

to a

tota

l of B

GN

41

964

832.

99

(BG

N 2

5 94

7 93

1.62

for i

ndiv

idua

l fin

anci

al c

orre

ctio

ns a

nd B

GN

16

016

901.

37 fo

r a fl

at-r

ate

finan

cial

cor

rect

ion)

.

In 2

014

audi

tors

pre

sent

ed t

he p

ract

ice

used

by

the

Aud

it A

utho

rity

for

verif

ying

the

pub

lic p

rocu

rem

ent

of s

even

spe

cial

ised

tra

inin

g co

urse

s, w

hich

wer

e at

tend

ed b

y a

tota

l of

200

empl

oyee

s fr

om th

e M

anag

ing

Aut

horit

ies

and

the

bene

ficia

ries

of th

e op

erat

iona

l pro

gram

mes

. Our

pra

ctic

e of

pre

sent

ing

an a

udit

appr

oach

whe

n ve

rifyi

ng p

ublic

pro

cure

men

t pro

cedu

res

will

als

o co

ntin

ue i

n 20

15.

So f

ar,

audi

tors

fro

m t

he A

udit

Aut

horit

y ha

ve d

eliv

ered

tra

inin

g on

thr

ee s

peci

alis

ed c

ours

es w

hich

wer

e at

tend

ed b

y 44

peo

ple

- ben

efic

iarie

s and

em

ploy

ees o

f the

Cer

tifyi

ng a

nd M

anag

ing

Aut

horit

ies.

The

Aud

it A

utho

rity

cond

ucts

an

anal

ysis

eve

ry y

ear

of t

he n

on-c

ompl

ianc

es i

dent

ified

with

the

pro

cedu

res

whi

ch h

ave

been

ve

rifie

d fo

r se

lect

ing

a co

ntra

ctor

. The

ana

lysi

s co

ntai

ns in

form

atio

n ab

out t

he ir

regu

larit

ies

iden

tifie

d, g

roup

ed a

ccor

ding

to th

e st

ages

in

the

publ

ic p

rocu

rem

ent

proc

edur

e, i

n pa

rticu

lar:

irreg

ular

ities

rel

atin

g to

pre

parin

g an

d in

itiat

ing

publ

ic p

rocu

rem

ent

proc

edur

es,

irreg

ular

ities

rel

atin

g to

the

eva

luat

ion

of t

he b

ids

rece

ived

, an

d irr

egul

ariti

es r

elat

ing

to t

he e

xecu

tion

of p

ublic

118

proc

urem

ent

cont

ract

s. Th

e an

alys

is i

s su

bmitt

ed t

o al

l th

e M

anag

ing

Aut

horit

ies

for

the

oper

atio

nal

prog

ram

mes

and

to

key

bene

ficia

ries.

Furth

erm

ore,

it is

pub

lishe

d on

the

agen

cy’s

web

site

.

With

the

aim

of r

estri

ctin

g th

e er

rors

with

a fi

nanc

ial i

mpa

ct in

the

area

of p

ublic

pro

cure

men

t, th

e cu

rren

t che

cklis

ts u

sed

by th

e A

udit

Aut

horit

y fo

r ve

rifyi

ng p

ublic

pro

cure

men

t pr

oced

ures

hav

e be

en s

ubm

itted

to

othe

r na

tiona

l co

ntro

l ag

enci

es.

The

chec

klis

ts f

or v

erify

ing

the

publ

ic p

rocu

rem

ent p

roce

dure

s, dr

awn

up b

y th

e A

udit

Aut

horit

y, h

ave

been

pre

sent

ed, a

long

with

le

tter N

o 05

.15.

207/

08.0

4.20

15 fr

om th

e D

eput

y Pr

ime

Min

iste

r in

char

ge o

f EU

fund

s an

d Ec

onom

ic P

olic

y, to

all

the

Man

agin

g A

utho

ritie

s fo

r im

plem

enta

tion.

The

aim

of

usin

g th

ese

chec

klis

ts i

s to

mak

e th

e ch

ecks

mor

e in

-dep

th a

nd s

tand

ardi

se t

he

met

hodo

logy

use

d by

all

the

Man

agin

g A

utho

ritie

s to

verif

y th

e pr

ocur

emen

t pro

cedu

res.

Rep

ly fr

om th

e R

DP

Man

agin

g A

utho

rity:

For

the

Rur

al D

evel

opm

ent P

rogr

amm

e –

Dra

fting

of g

uide

lines

for R

DP

bene

ficia

ries

for

impl

emen

ting

the

Publ

ic P

rocu

rem

ent

Act

(ZO

P);

Info

rmin

g po

tent

ial

bene

ficia

ries

abou

t th

e G

uide

lines

; D

evis

ing

stan

dard

ised

pro

cure

men

t crit

eria

for f

orm

s an

d ty

pes

of in

vest

men

t act

iviti

es fo

r im

plem

entin

g th

e pr

oced

ures

und

er Z

OP,

whi

ch

is to

be

adde

d to

the

Gui

delin

es.

Rep

ly fr

om D

FZ-P

A:

Gui

delin

es h

ave

been

dra

wn

up to

hel

p be

nefic

iarie

s w

hen

plan

ning

and

car

ryin

g ou

t pub

lic p

rocu

rem

ent p

roce

dure

s, w

ith th

e ai

m

of p

reve

ntin

g er

rors

. The

ex

post

pro

cedu

re fo

r eva

luat

ing

the

crite

ria u

nder

ZO

P pr

ior t

o pa

ymen

t was

ado

pted

on

12 S

epte

mbe

r 20

14 .

Q 4

.1.

No

resp

onse

Q 5

.1.

Yes

; M

LSP:

Fol

low

ing

the

audi

t car

ried

out i

n 20

10 o

n th

e sy

stem

s for

the

OP

‘Hum

an R

esou

rce

Dev

elop

men

t’ by

the

Com

mis

sion

and

th

e su

bseq

uent

not

es a

nd re

com

men

datio

n se

nt fo

rwar

d, th

e ch

eckl

ists

use

d fo

r ver

ifyin

g m

anag

emen

t and

on-

the-

spot

vis

its w

ere

revi

ewed

. The

Man

agin

g A

utho

rity

revi

ewed

the

lists

for t

he o

n-th

e-sp

ot c

heck

s, in

clud

ing

chec

ks c

arrie

d ou

t by

the

MA

/IB o

n th

e ex

tent

to w

hich

the

targ

ets w

ere

achi

eved

and

the

rela

tion

betw

een

plan

ned

activ

ities

and

resu

lts fo

r a p

artic

ular

act

ivity

; ve

rific

atio

n of

the

supp

ortin

g do

cum

ents

ava

ilabl

e, c

ertif

ying

com

plia

nce

with

the

horiz

onta

l prin

cipl

es; t

he d

etai

ls it

emis

ed fo

r the

te

nder

pro

cedu

res c

arrie

d ou

t by

the

bene

ficia

ries;

com

plia

nce

with

the

requ

irem

ent f

or d

oubl

e-en

try a

ccou

ntin

g of

the

oper

atio

ns

in th

e on

line

syst

em b

y th

e be

nefic

iary

, whe

re v

erifi

ed a

nd n

on-v

erifi

ed e

xpen

ditu

re is

show

n.

In 2

013

the

MA

intro

duce

d a

cons

olid

ated

man

ual f

or m

anag

ing

and

impl

emen

ting

the

Ope

ratio

nal P

rogr

amm

e ‘H

uman

Res

ourc

e

119

Dev

elop

men

t’ 20

07–2

013,

with

the

sepa

rate

man

uals

for t

he in

term

edia

te le

vels

cea

sing

to b

e us

ed.

Sim

plifi

ed e

xpen

ditu

re w

as in

trodu

ced

for t

he O

P ‘H

uman

Res

ourc

es D

evel

opm

ent’

for i

mpl

emen

ting

a un

iform

exp

endi

ture

st

anda

rd fo

r act

iviti

es d

efin

ed b

y th

e st

ate

as h

avin

g a

‘soc

ial s

ecur

ity’ f

unct

ion,

in o

rder

to re

port

the

expe

nditu

re fo

r sch

emes

in

volv

ed in

gra

ntin

g fin

anci

al su

ppor

t: ‘L

IFE

IN T

HE

CO

MM

UN

ITY

’ and

‘LET

’S N

OT

AB

AN

DO

N A

NY

CH

ILD

’ –

Com

pone

nt 2

, with

whi

ch th

e ef

fect

iven

ess o

f the

che

cks c

arrie

d ou

t was

impr

oved

and

the

mai

n fo

cus w

as th

e im

plem

enta

tion

of

the

activ

ities

. In

this

rega

rd, t

he fo

llow

ing

has b

een

achi

eved

: - E

asie

r com

mun

icat

ion

with

the

bene

ficia

ry a

nd a

sim

plifi

ed c

ontro

l mec

hani

sm;

- Inc

reas

e in

the

time

spen

t mon

itorin

g th

e ac

tiviti

es, a

nd n

ot th

e ex

pend

iture

, i.e

. foc

usin

g on

the

qual

ity o

f the

serv

ices

pro

vide

d;

- Stre

amlin

ing

the

wor

k in

volv

ed in

che

ckin

g an

inte

rmed

iate

/fina

l rep

ort a

nd h

uman

reso

urce

s;

- Ach

ievi

ng th

e be

st p

ossi

ble

targ

ets s

et a

nd re

sults

, as w

ell a

s qua

lity

of th

e se

rvic

es p

rovi

ded.

N

F: T

he re

quire

men

ts o

f Arti

cle

61 o

f Cou

ncil

Reg

ulat

ion

(EC

) No

1083

/200

6 an

d of

Arti

cle

20 o

f Com

mis

sion

Reg

ulat

ion

(EC

) N

o 18

28/2

006

wer

e co

mpl

ied

with

whe

n th

e ex

pend

iture

for t

he o

pera

tiona

l pro

gram

mes

was

cer

tifie

d by

the

Cer

tifyi

ng A

utho

rity

(CA

) in

2014

. The

CA

car

ried

out c

heck

s and

ana

lyse

d al

l the

info

rmat

ion

colle

cted

and

ava

ilabl

e w

ith th

e ai

m o

f con

firm

ing

the

regu

larit

y an

d el

igib

ility

of t

he e

xpen

ditu

re d

isbu

rsed

whe

n ca

rryi

ng o

ut p

roje

cts,

in a

ccor

danc

e w

ith n

atio

nal a

nd E

urop

ean

stat

utor

y re

gula

tions

. As a

resu

lt of

the

chec

ks c

arrie

d ou

t, th

e C

A n

oted

shor

tcom

ings

mai

nly

in th

e im

plem

enta

tion

of c

ontro

l pr

oced

ures

by

the

Man

agin

g A

utho

ritie

s and

/or I

nter

med

iate

leve

ls in

the

area

of p

ublic

pro

cure

men

t/sel

ectin

g a

cont

ract

or, s

ound

m

anag

emen

t of a

ccou

nts r

ecei

vabl

e an

d co

mpl

ianc

e w

ith th

e pr

inci

ples

of g

ood

finan

cial

man

agem

ent.

The

follo

win

g m

easu

res h

ave

been

take

n in

ord

er to

impr

ove

the

cont

rol e

nviro

nmen

t: - B

ased

on

a ris

k as

sess

men

t and

the

cons

ider

able

num

ber o

f sho

rtcom

ings

iden

tifie

d du

ring

the

on-th

e-sp

ot c

heck

s of t

he

proc

edur

es fo

r sel

ectin

g a

cont

ract

or, i

n th

e la

test

ver

sion

of t

he C

A’s

Man

ual o

f pro

cedu

res (

upda

ted

in Ju

ne 2

014)

, che

cks o

f thi

s ki

nd w

ere

mad

e th

e ob

ject

of a

sepa

rate

pro

cedu

re. I

n a

num

ber o

f cas

es, t

he C

A d

elay

s cer

tific

atio

n of

spec

ific

expe

nditu

re fo

r pr

ojec

ts u

ntil

appr

opria

te c

orre

ctiv

e ac

tion

has b

een

take

n by

the

MA

and

/or a

fina

ncia

l cor

rect

ion

has b

een

mad

e w

here

ap

plic

able

. -

With

the

aim

of e

stab

lishi

ng th

e pr

esen

ce o

f a re

curr

ing

and

horiz

onta

l asp

ect t

o sh

ortc

omin

gs id

entif

ied

durin

g th

e on

-the-

spot

-ch

ecks

car

ried

out b

y th

e C

A, a

‘Dat

abas

e fo

r sho

rtcom

ings

iden

tifie

d du

ring

on-th

e-sp

ot c

heck

s’ is

mai

ntai

ned

for p

roce

dure

s us

ed to

sele

ct a

con

tract

or a

nd fo

r reg

ular

on-

the-

spot

che

cks p

rior t

o ce

rtific

atio

n. In

the

case

of t

he M

A fa

iling

to ta

ke a

ppro

pria

te

actio

n an

d if

an id

entic

al sh

ortc

omin

g is

iden

tifie

d du

ring

a su

bseq

uent

che

ck a

nd w

ith o

ther

pro

ject

s, th

e C

A a

dvis

es th

e M

A o

f a

tem

pora

ry su

spen

sion

of t

he c

ertif

icat

ion

of e

xpen

ditu

re fo

r the

rele

vant

ope

ratio

n/pr

iorit

y ax

is/o

pera

tiona

l pro

gram

me

until

ap

prop

riate

cor

rect

ive

actio

n ha

s bee

n ta

ken

by th

e M

A a

nd a

fina

ncia

l cor

rect

ion

has b

een

mad

e w

here

app

licab

le. F

or e

xam

ple,

in

201

4 ce

rtific

atio

n w

as su

spen

ded

for t

hree

sche

mes

of f

inan

cial

supp

ort u

nder

Ope

ratio

nal P

rogr

amm

e ‘D

evel

opm

ent o

f the

C

ompe

titiv

enes

s of t

he B

ulga

rian

Econ

omy

2007

–201

3’, d

ue to

def

icie

ncie

s and

shor

tcom

ings

iden

tifie

d w

hen

appl

ying

the

proc

edur

es fo

r sel

ectin

g pr

ojec

t pro

posa

ls, w

hich

mad

e it

nece

ssar

y fo

r the

MA

to ta

ke c

orre

ctiv

e ac

tion.

-

In c

onne

ctio

n w

ith th

e Pr

actic

al g

uide

for m

anag

ers,

devi

sed

by a

n ex

pert

grou

p of

Mem

ber S

tate

s, co

ordi

nate

d by

the

Euro

pean

A

nti-F

raud

Off

ice

(OLA

F), t

he C

A d

rew

up

a sa

mpl

e D

ecla

ratio

n of

abs

ence

of c

onfli

cts o

f int

eres

t, in

kee

ping

with

Arti

cle

57 o

f

120

Reg

ulat

ion

(EC

) No

966/

2012

. The

dec

lara

tion

was

subm

itted

to th

e M

As w

ith th

e re

ques

t for

it to

be

impl

emen

ted

by a

ll em

ploy

ees p

artic

ipat

ing

in th

e pr

epar

atio

n, im

plem

enta

tion

and

man

agem

ent o

f the

rele

vant

ope

ratio

nal p

rogr

amm

e, a

s wel

l as b

y th

e m

embe

rs o

f the

uni

ts/te

ams i

nvol

ved

in m

anag

ing

proj

ects

fina

nced

by

EU fu

nds.

Furth

erm

ore,

taki

ng in

to a

ccou

nt th

e ne

ed to

bo

ost t

he m

easu

res f

or ta

cklin

g fr

aud,

cor

rupt

ion

and

conf

licts

of i

nter

est,

the

CA

incl

uded

‘red

flag

s’ in

the

chec

klis

ts fo

r on-

the-

spot

che

cks,

indi

catin

g th

e oc

curr

ence

of f

raud

. If a

ny o

r all

of th

ese

circ

umst

ance

s are

est

ablis

hed,

the

CA

is to

adv

ise

the

MA

s an

d th

e D

irect

orat

e ‘C

oord

inat

ion

of th

e fig

ht a

gain

st in

frin

gem

ents

aff

ectin

g th

e fin

anci

al in

tere

sts o

f the

EU

(AFC

OS)

’ with

in

the

Bul

garia

n M

inis

try o

f Int

erio

r. Th

e C

A a

lso

requ

ires t

he M

As t

o ta

ke a

ppro

pria

te m

easu

res t

o in

clud

e ‘r

ed fl

ags’

in th

e ch

eckl

ists

of t

heir

man

uals

of p

roce

dure

s. -

The

CA

pro

vide

s su

ppor

t w

ith t

he m

etho

dolo

gy t

o M

As

and

IBs

for

both

the

200

7–20

13 a

nd 2

014–

2020

per

iods

, arr

ange

s w

orki

ng m

eetin

gs a

nd t

rain

ing

cour

ses

for

all

the

parti

es i

nvol

ved

in m

anag

ing

EU f

unds

(M

As,

IBs,

heal

th a

genc

ies,

cent

ral

coor

dina

tion

units

, AFC

OS

and

spec

ific

bene

ficia

ries)

.

Q 6

.1.

Yes

;

IA O

SES:

Dur

ing

the

oper

atio

ns a

udit

in 2

015,

the

che

ck o

n co

mpl

ianc

e w

ith t

he s

tate

aid

sch

eme

was

car

ried

out

usin

g an

in

depe

nden

t, ite

mis

ed c

heck

list,

unlik

e in

pre

viou

s yea

rs, w

hen

the

ques

tions

abo

ut st

ate

aid

wer

e pa

rt of

the

gene

ral c

heck

list.

Q 6

.2.

Yes

;

IA O

SES:

Dur

ing

the

oper

atio

ns a

udit

in 2

014,

the

Aud

it A

utho

rity

iden

tifie

d th

e fo

llow

ing

for

the

Ope

ratio

nal

Prog

ram

me

‘Dev

elop

men

t of t

he C

ompe

titiv

enes

s of t

he B

ulga

rian

Econ

omy

2007

–201

3’:

The

proj

ect f

iles

for 1

5 pr

ojec

ts in

our

sam

ple

of la

rge

ente

rpris

e be

nefic

iarie

s do

not

con

tain

inte

rnal

doc

umen

ts w

ith a

pla

usib

le

anal

ysis

con

firm

ing

the

pres

ence

of t

he c

riter

ia s

uppo

rting

an

ince

ntiv

e ef

fect

in k

eepi

ng w

ith A

rticl

e 8(

3) o

f Reg

ulat

ion

(EC

) No

800/

2008

(Gen

eral

blo

ck e

xem

ptio

n R

egul

atio

n). T

he p

rogr

amm

e’s M

anag

ing

Aut

horit

y is

resp

onsi

ble

for i

dent

ifyin

g th

e pr

esen

ce

of t

he c

riter

ia s

uppo

rting

an

ince

ntiv

e ef

fect

in

keep

ing

with

the

req

uire

men

ts o

f R

egul

atio

n (E

C)

No

800/

2008

and

with

C

omm

issi

on n

otic

e C

omp/

H4/

CS/

dg-D

* 20

11/0

9743

9 an

d ou

ght t

o ha

ve re

ques

ted

that

ben

efic

iarie

s pr

esen

t an

inte

rnal

doc

umen

t w

ith th

is k

ind

of c

onte

nt.

Dur

ing

the

audi

t, w

e re

ques

ted

the

latte

r do

cum

ents

fro

m th

e ab

ove-

men

tione

d 15

ent

erpr

ises

in o

ur s

ampl

e. A

s a

resu

lt of

the

chec

k ca

rrie

d ou

t, w

e es

tabl

ishe

d th

at th

e da

ta fr

om th

e pr

ojec

t pro

posa

ls a

nd th

e ad

ditio

nal d

ata

supp

lied

from

doc

umen

ts p

rovi

de

a re

liabl

e an

alys

is in

kee

ping

with

the

requ

irem

ents

of R

egul

atio

n (E

C) N

o 80

0/20

08 a

nd C

omp/

H4/

CS/

dg-D

*201

1/09

7439

.

121

We

advi

sed

the

Man

agin

g A

utho

rity

to r

evie

w t

he f

iles

of a

ll th

e re

mai

ning

lar

ge e

nter

pris

es r

ecei

ving

sup

port

and

to t

ake

mea

sure

s to

ensu

re th

at th

ey c

onta

in in

tern

al d

ocum

ents

with

a p

laus

ible

ana

lysi

s con

firm

ing

the

pres

ence

of t

he c

riter

ia su

ppor

ting

an in

cent

ive

effe

ct in

kee

ping

with

Arti

cle

8(3)

of R

egul

atio

n (E

C) N

o 80

0/20

08. I

n th

e ca

se th

at th

e M

anag

ing

Aut

horit

y fa

ils to

co

llect

the

info

rmat

ion

spec

ified

abo

ve a

nd p

rovi

de c

onfir

mat

ion

for

the

rele

vant

larg

e en

terp

rise,

app

ropr

iate

cor

rect

ive

actio

n sh

ould

be

take

n.

In 2

014,

dur

ing

an a

udit

of th

e m

anag

emen

t sys

tem

s se

t up

unde

r the

initi

ativ

e ‘J

oint

Eur

opea

n R

esou

rces

for M

icro

to M

ediu

m

Ente

rpris

es’ (

JER

EMIE

), w

hen

verif

ying

pro

ject

s fin

ance

d by

the

inst

rum

ent ‘

Loan

Por

tfolio

Gua

rant

ee F

und’

, we

esta

blis

hed

that

th

e en

d re

cipi

ent o

f the

aid

had

not

bee

n in

form

ed a

s to

the

amou

nt o

f the

Sta

te a

id p

rovi

ded

to th

em. T

his f

act f

ails

to c

ompl

y w

ith

the

requ

irem

ents

of A

rticl

e 3

of R

egul

atio

n (E

C) N

o 19

98/2

006

and

item

15.

5 (‘

Stat

e ai

d’) i

n th

e G

ener

al te

rms

and

cond

ition

s of

th

e ag

reem

ent

betw

een

the

finan

cial

int

erm

edia

ry a

nd J

EREM

IE B

ulga

ria E

AD

(cr

eate

d sp

ecia

lly t

o im

plem

ent

the

JER

EMIE

ho

ldin

g fu

nd in

itiat

ive)

.

The

Aud

it A

utho

rity

has

advi

sed

the

finan

cial

int

erm

edia

ries

in a

ny f

utur

e JE

REM

IE c

ontra

cts

to f

ulfil

the

ir ob

ligat

ion

duly

pu

rsua

nt to

Arti

cle

3 of

Reg

ulat

ion

(EC

) N

o 19

98/2

006

and

to in

form

the

end

reci

pien

ts a

s to

the

real

am

ount

of

the

Stat

e ai

d re

ceiv

ed.

The

Aud

it A

utho

rity

has

advi

sed

the

hold

ing

fund

JER

EMIE

Bul

garia

EA

D to

car

ry o

ut a

nd m

onito

r th

e im

plem

enta

tion

of th

e re

com

men

datio

n by

the

finan

cial

inte

rmed

iarie

s.

Q 6

.3.

MLS

P: N

ot a

pplic

able

to th

e O

P ‘H

uman

Res

ourc

e D

evel

opm

ent’

beca

use

no e

rror

s hav

e be

en n

oted

.

Q 7

.1.

MLS

P: N

ot a

pplic

able

to th

e O

P ‘H

uman

Res

ourc

e D

evel

opm

ent’.

C

RO

AT

IA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

122

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

With

the

com

mon

ind

icat

ors

used

by

the

oper

atio

nal

prog

ram

mes

for

all

five

fund

s, op

erat

iona

l pr

ogra

ms

cont

ain

spec

ific

indi

cato

rs o

f pe

rfor

man

ce,

dire

ct o

utpu

ts a

nd c

onte

xt t

hat

will

als

o m

easu

re a

nd s

ubm

it in

form

atio

n on

the

rea

lisat

ion

of a

ll op

erat

iona

l pro

gram

mes

fina

nced

by

ESI f

unds

.

Q 1

.3.

Yes

;

Dat

a on

the

tota

l con

tract

ed, p

aid

and

certi

fied

fund

s, in

form

atio

n on

all

dire

ct p

erfo

rman

ce in

dica

tors

(com

mon

and

spec

ific)

of a

ll co

mpl

eted

pro

ject

s of

all

awar

d pr

oced

ures

unt

il 20

17. N

o si

gnifi

cant

cha

nges

in th

e va

lue

of p

erfo

rman

ce in

dica

tors

are

exp

ecte

d du

e to

the

fac

t th

at t

heir

valu

es c

hang

e si

gnifi

cant

ly o

nly

in t

he l

ater

sta

ges

of i

mpl

emen

tatio

n. I

n ad

ditio

n, t

he r

esul

ts o

f ev

alua

tions

can

be

used

, whi

ch sh

ould

con

tribu

te to

impr

oved

and

pos

sibl

e si

mpl

ifica

tion

of m

anag

emen

t and

con

trol s

yste

ms.

Q 2

.2.

Yes

;

Giv

en th

at th

e R

epub

lic o

f Cro

atia

will

use

the

finan

cial

inst

rum

ents

for t

he fi

rst t

ime

in th

e pe

riod

2014

-202

0, th

e pr

oced

ural

fr

amew

ork

is fu

lly c

ompl

iant

with

the

appl

icab

le p

rovi

sion

s of t

he E

U R

egul

atio

ns a

s wel

l as w

ith a

ll ap

plic

able

gui

delin

es o

f the

C

omm

issi

on g

over

ning

the

mon

itorin

g an

d re

porti

ng o

f fin

anci

al in

stru

men

ts.

Q 4

.1.

IT to

ols

and

syst

ems

are

avai

labl

e to

ens

ure

acce

ss to

info

rmat

ion

on o

ppor

tuni

ties

for

publ

ic c

ontra

cts

or c

once

ssio

ns. A

s of

1

Janu

ary

2012

, pub

licat

ion

of te

nder

not

ices

and

tend

er d

ocum

ents

is m

anda

tory

. As

of 1

Jan

uary

201

4, S

tate

off

ice

for

Cen

tral

Publ

ic P

rocu

rem

ent h

as to

allo

w e

-sub

mis

sion

, whi

le a

dea

dlin

e fo

r all

clie

nts

to u

se e

-sub

mis

sion

is 1

Jul

y 20

16. F

ree

of c

harg

e un

ique

pla

tform

for t

ende

rs (E

lect

roni

c Pu

blic

Pro

cure

men

t Cla

ssifi

eds)

is a

vaila

ble

at th

e O

ffic

ial G

azet

te fo

r eco

nom

ic o

pera

tors

. In

dica

tors

and

tool

s ar

e us

ed to

trac

k pe

rfor

man

ce o

f PP:

bas

ed o

n da

ta o

n co

ntra

ct a

war

d no

tices

from

EPP

C, s

tatis

tical

repo

rt is

pr

epar

ed fo

r the

pre

viou

s ye

ar. T

he re

port

incl

udes

dat

a on

num

ber o

f con

tract

s, fin

al fi

nanc

ial v

alue

s, ty

pe o

f pro

cedu

res,

subj

ect-

mat

ter o

f pro

cure

men

t, et

c. S

tate

Com

mis

sion

subm

its th

eir y

early

repo

rt to

the

Cro

atia

n Pa

rliam

ent.

Con

tract

ing

auth

oriti

es h

ave

an o

blig

atio

n to

pub

lish

thei

r pub

lic p

rocu

rem

ent p

lans

(sub

ject

mat

ter o

f pro

cure

men

t the

est

imat

ed

valu

e of

whi

ch is

equ

al to

or h

ighe

r tha

n H

RK

20.

000)

and

con

tract

regi

ster

s on

thei

r web

site

s an

d se

nd li

nks

to th

e M

inis

try o

f

123

Econ

omy

whi

ch p

ublis

hes

them

on

Publ

ic P

rocu

rem

ent

Porta

l –

ww

w.ja

vnan

abav

a.hr

. C

ontra

ctin

g au

thor

ity/e

ntity

in

open

pr

oced

ure

(cca

89%

of a

ll co

nduc

ted

proc

edur

es o

n a

year

ly b

asis

) mus

t pub

lish

tend

er d

ocum

ents

ele

ctro

nica

lly in

EPP

C.

PP A

ct p

resc

ribes

that

in o

pen

and

rest

ricte

d pr

oced

ure,

the

cont

ract

ing

auth

ority

sha

ll op

en th

e te

nder

s in

a p

ublic

bid

ope

ning

. In

othe

r pr

oced

ures

, sav

e ne

gotia

ted

proc

edur

es w

ithou

t pr

ior

publ

icat

ion,

the

fin

al t

ende

rs s

hall

be o

pen

in a

pub

lic o

peni

ng o

f te

nder

s. In

the

proc

edur

e fo

r th

e aw

ard

of p

ublic

ser

vice

con

tract

s re

ferr

ed to

in A

nnex

II

B, t

he c

ontra

ctin

g au

thor

ity s

hall

not

have

the

oblig

atio

n to

pub

licly

ope

n te

nder

s. Th

e pu

blic

ope

ning

of t

ende

rs m

ay b

e w

itnes

sed

by a

utho

rised

repr

esen

tativ

es o

f the

te

nder

ers a

nd o

ther

per

sons

.

Afte

r th

e re

ceip

t of

the

aw

ard

or t

he c

ance

llatio

n de

cisi

on a

nd u

ntil

the

expi

ry o

f th

e de

adlin

e fo

r an

app

eal,

the

cont

ract

ing

auth

ority

mus

t, up

on a

tend

erer

's re

ques

t, pr

ovid

e ac

cess

to a

ny te

nder

, inc

ludi

ng s

ubse

quen

tly s

ubm

itted

doc

umen

ts, a

s w

ell a

s cl

arifi

catio

ns a

nd su

pple

men

ts, w

ith th

e ex

cept

ion

of in

form

atio

n th

e te

nder

ers d

esig

nate

d as

con

fiden

tial.

In a

ll pu

blic

pro

cure

men

t pro

cedu

res

cond

ucte

d by

the

Stat

e O

ffic

e fo

r C

entra

l Pub

lic P

rocu

rem

ent (

cent

ral p

urch

asin

g of

fice)

fr

om 1

Janu

ary

2014

, sub

mis

sion

of t

ende

rs is

ava

ilabl

e to

eco

nom

ic o

pera

tors

ele

ctro

nica

lly v

ia E

PPC

.

Als

o, in

form

atio

n an

d op

inio

ns (a

s an

swer

s to

the

ques

tions

pos

ed b

y th

e ec

onom

ic e

ntiti

es a

nd c

ontra

ctor

s) a

re p

ublic

ly a

vaila

ble

on th

e M

inis

try o

f Eco

nom

y w

ebsi

te, w

hile

dec

isio

ns a

re a

lso

avai

labl

e on

the

web

site

of t

he S

tate

Com

mis

sion

.

Rem

edie

s in

PP

are

regu

late

d by

Sec

tion

IV o

f the

PP

Act

(Arti

cles

138

-176

of P

P A

ct).

App

ella

te b

ody

is S

tate

Com

mis

sion

for

Supe

rvis

ion

over

Pub

lic P

rocu

rem

ent P

roce

dure

. App

eals

on

tend

er d

ocum

ents

and

aw

ard

deci

sion

s sto

p th

e PP

pro

cedu

re d

one

by

the

cont

ract

ing

auth

ority

/ent

ity ti

ll th

e St

ate

Com

mis

sion

rulin

g.

Acc

ordi

ng t

o th

e A

ct o

n th

e St

ate

Com

mis

sion

for

Sup

ervi

sion

ove

r Pu

blic

Pro

cure

men

t Pr

oced

ure,

the

Sta

te C

omm

issi

on i

s ob

liged

to p

ublis

h on

its w

eb si

tes (

ww

w.d

kom

.hr)

the

info

rmat

ion

abou

t the

mos

t com

mon

reas

ons f

or lo

dgin

g th

e ap

peal

s and

the

mos

t com

mon

irre

gula

ritie

s est

ablis

hed

in th

e ap

peal

pro

cedu

res.

The

mos

t com

mon

reas

ons f

or lo

dgin

g th

e ap

peal

:

• non

-con

form

ity o

f the

tend

er d

ocum

enta

tion

in re

latio

n to

the

Publ

ic P

rocu

rem

ent A

ct;

• sel

ectio

n of

an

inva

lid o

ffer

;

• unf

ound

ed e

xclu

sion

of t

he a

ppel

lant

off

er fr

om th

e re

view

pro

cedu

re o

f exa

min

atio

n an

d ev

alua

tion;

124

• cha

lleng

e th

e ba

sis f

or a

dec

isio

n on

ann

ulm

ent;

• om

issi

ons (

irreg

ular

ities

) rel

ated

to th

e op

enin

g of

bid

s.

An

adm

inis

trativ

e di

sput

e ag

ains

t a d

ecis

ion

of th

e St

ate

Com

mis

sion

may

be

initi

ated

bef

ore

a co

mpe

tent

adm

inis

trativ

e co

urt.

Thes

e pr

oced

ures

are

urg

ent (

Arti

cle

173

and

174

of P

P A

ct).

Any

per

son

who

has

suf

fere

d da

mag

e du

e to

vio

latio

ns o

f PP

Act

sh

all h

ave

the

poss

ibili

ty o

f cla

imin

g da

mag

es b

efor

e th

e co

mpe

tent

cou

rt un

der t

he g

ener

al in

dem

nific

atio

n re

gula

tions

.

Als

o, th

e M

inis

try o

f the

Eco

nom

y co

ntro

ls th

e im

plem

enta

tion

of P

P A

ct (e

x po

st c

ontro

l, no

t sto

ppin

g th

e PP

pro

cedu

re).

Any

le

gal o

r nat

ural

per

son

(eve

n an

onym

ousl

y) o

r sta

te b

ody

can

initi

ate

the

proc

edur

e. If

irre

gula

ritie

s ar

e fo

und,

the

Min

istry

of t

he

Econ

omy

can

open

a m

isde

mea

nour

pro

cedu

re b

efor

e th

e co

mpe

tent

mis

dem

eano

ur c

ourt.

The

fine

s ar

e fr

om H

RK

50,

000.

00 to

H

RK

1,0

00,0

00.0

0 fo

r a

cont

ract

ing

auth

ority

/ent

ity a

nd f

rom

HR

K 1

0,00

0.00

to H

RK

100

,000

.00.

for

thei

r re

spon

sibl

e pe

rson

. Th

e m

isde

mea

nour

pro

cedu

re is

initi

ated

if a

con

tract

ing

auth

ority

/ent

ity fo

r exa

mpl

e:

• pro

cure

s su

pplie

s, w

orks

or s

ervi

ces

with

out a

pub

lic p

rocu

rem

ent p

roce

dure

laid

dow

n in

the

PP A

ct, s

ave

in c

ases

per

mitt

ed b

y th

e A

ct,

• aw

ards

a p

ublic

pro

cure

men

t con

tract

con

trary

to th

e pr

ovis

ion

of A

rticl

e 13

of t

he P

P A

ct (c

onfli

ct o

f int

eres

t),

• su

bdiv

ides

the

valu

e of

wor

ks o

r cer

tain

qua

ntity

of s

uppl

ies

and/

or s

ervi

ces

with

the

inte

ntio

n of

pre

vent

ing

its c

omin

g w

ithin

th

e sc

ope

of th

e PP

Act

or t

he ru

les a

pplic

able

acc

ordi

ng

• to

the

estim

ated

val

ue o

f pro

cure

men

t,

• in

the

pre

para

tion

and

impl

emen

tatio

n of

the

pub

lic p

rocu

rem

ent

proc

edur

e at

lea

st o

ne a

utho

rised

rep

rese

ntat

ive

of t

he

cont

ract

ing

auth

ority

/ent

ity d

oes n

ot h

old

a va

lid c

ertif

icat

e in

the

field

of p

ublic

pro

cure

men

t,

• the

y us

e th

e ne

gotia

ted

publ

ic p

rocu

rem

ent p

roce

dure

with

out p

rior p

ublic

atio

n co

ntra

ry to

the

prov

isio

ns o

f Arti

cles

26,

27,

28

or 1

17 o

f the

PP

Act

,

• th

ey a

war

d a

publ

ic p

rocu

rem

ent c

ontra

ct o

r con

clud

e a

fram

ewor

k ag

reem

ent w

ith th

e te

nder

er w

ho m

ust h

ave

been

exc

lude

d fr

om th

e pu

blic

pro

cure

men

t pro

cedu

re o

r who

se te

nder

they

wer

e ob

ligat

ed to

reje

ct b

ased

on

the

resu

lts o

f the

exa

min

atio

n an

d ev

alua

tion

of te

nder

s,

• the

y fa

il to

send

for p

ublic

atio

n th

e co

ntra

ct a

war

d no

tice

or th

e no

tice

on th

e re

sults

of t

he d

esig

n co

ntes

t (A

rticl

e 60

and

Arti

cle

125

125)

,

• the

y co

nclu

de a

pub

lic p

rocu

rem

ent c

ontra

ct o

r a fr

amew

ork

agre

emen

t whi

ch is

not

in li

ne w

ith th

e co

nditi

ons

stip

ulat

ed in

the

tend

er d

ocum

ents

and

the

chos

en te

nder

(Arti

cle

• 105

par

agra

ph 1

),

• the

y ac

t con

trary

to o

r do

not c

ompl

y w

ith a

dec

isio

n is

sued

by

the

Stat

e C

omm

issi

on fo

r the

Sup

ervi

sion

of P

ublic

Pro

cure

men

t Pr

oced

ure.

Acc

ordi

ng to

the

PP A

ct e

very

con

tract

ing

auth

ority

/ent

ity is

obl

iged

to c

ontro

l the

impl

emen

tatio

n of

thei

r pub

lic c

ontra

cts.

Als

o,

Stat

e A

udit

Off

ice

as a

n in

depe

nden

t bod

y, p

erfo

rms

audi

ts o

f go

vern

men

t rev

enue

s a

nd e

xpen

ditu

res,

finan

cial

sta

tem

ents

and

fin

anci

al tr

ansa

ctio

ns o

f gov

ernm

ent s

ecto

r uni

ts a

nd lo

cal u

nits

, leg

al e

ntiti

es fi

nanc

ed fr

om th

e bu

dget

, leg

al e

ntiti

es fo

unde

d by

th

e R

epub

lic o

f C

roat

ia o

r lo

cal u

nits

, com

pani

es a

nd o

ther

lega

l ent

ities

, in

whi

ch th

e R

epub

lic o

f C

roat

ia i.

e. lo

cal u

nits

hol

d m

ajor

ity s

take

s. Th

e of

fice

also

has

jur

isdi

ctio

n to

aud

it th

e Eu

rope

an U

nion

fun

ds a

nd o

ther

int

erna

tiona

l or

gani

zatio

ns o

r in

stitu

tions

for

fun

ding

pub

lic n

eeds

. The

aud

it in

clud

es e

xam

inat

ion

of d

ocum

ents

and

sta

tem

ents

, int

erna

l con

trol a

nd in

tern

al

audi

t sys

tem

s, ac

coun

ting

and

finan

cial

pro

cedu

res,

and

othe

r rec

ords

in o

rder

to e

stab

lish

whe

ther

the

finan

cial

sta

tem

ents

sho

w a

tru

e fin

anci

al st

andi

ng a

nd re

sults

of f

inan

cial

act

iviti

es in

acc

orda

nce

with

the

acce

pted

acc

ount

ing

prin

cipl

es a

nd st

anda

rds.

Educ

atio

n sy

stem

incl

udin

g lic

ensi

ng o

f per

sons

invo

lved

in P

P pr

oced

ures

is in

pla

ce. P

ublic

pro

cure

men

t tra

inin

g in

the

Rep

ublic

of

Cro

atia

was

est

ablis

hed

in 2

009

with

Reg

ulat

ion

on th

e fo

rms,

met

hods

and

req

uire

men

ts f

or tr

aini

ng in

the

PP (

OG

43/

09).

Purs

uant

to th

e R

egul

atio

ns o

n tra

inin

g in

the

field

of

publ

ic p

rocu

rem

ent (

OG

6/1

2), t

rain

ing

prog

ram

mes

in th

is f

ield

may

be

carr

ied

out

by c

ompa

nies

aut

horiz

ed b

y th

e M

inis

try o

f Ec

onom

y an

d by

the

Min

istry

of

Publ

ic A

dmin

istra

tion

as a

cen

tral

gove

rnm

ent

body

res

pons

ible

for

civ

il se

rvic

e af

fairs

. Th

e lis

t of

the

aut

horiz

ed c

ompa

nies

is

mai

ntai

ned

by t

he M

inis

try o

f Ec

onom

y an

d is

pub

lishe

d on

thi

s po

rtal

http

://w

ww

.javn

anab

ava.

hr/.

The

regi

ster

is

regu

larly

upd

ated

in

line

with

new

au

thor

izat

ions

issu

ed. B

asic

ally

, tra

inin

g in

the

field

of p

ublic

pro

cure

men

t is

carr

ied

out b

y ec

onom

ic o

pera

tors

(com

pani

es) w

ho

are

regi

ster

ed

hold

ers

of

a pu

blic

pr

ocur

emen

t tra

inin

g pr

ogra

m.

The

list

of

prov

ider

s is

av

aila

ble

onlin

e:

http

://w

ww

.javn

anab

ava.

hr/d

efau

lt.as

px?i

d=37

24. T

rain

ing

is p

rovi

ded

by tr

aine

rs in

the

field

of

publ

ic p

rocu

rem

ent.

The

list o

f pr

ovid

ers i

s ava

ilabl

e on

line:

http

://w

ww

.javn

anab

ava.

hr/d

efau

lt.as

px?i

d=37

23.

Bas

ic tr

aini

ng p

rogr

am is

50

scho

ol h

ours

long

. Afte

r th

at a

per

son

mus

t pas

s an

exa

m. E

xam

s ar

e or

gani

zed

by th

e M

inis

try o

f Ec

onom

y af

ter w

hich

the

certi

ficat

e is

issu

ed to

per

sons

who

hav

e su

cces

sful

ly p

asse

d th

e ex

am. T

he fi

rst c

ertif

icat

es w

ere

issu

ed

in 2

009.

A r

egis

ter

of is

sued

cer

tific

ates

in th

e fie

ld o

f PP

is a

vaila

ble

onlin

e: h

ttp://

ww

w.ja

vnan

abav

a.hr

/def

ault.

aspx

?id=

3762

. Fr

om 2

012,

the

PP c

ertif

icat

es a

re v

alid

for 3

yea

rs. T

o re

new

the

certi

ficat

e, a

per

son

mus

t obt

ain

furth

er e

duca

tion

in a

mou

nt o

f

126

32

scho

ol

hour

s in

th

at

perio

d of

3

year

s. Th

e lis

t of

pr

ovid

ers

is

avai

labl

e on

line:

ht

tp://

ww

w.ja

vnan

abav

a.hr

/def

ault.

aspx

?id=

3763

. In

Cro

atia

ther

e ar

e cc

a 43

00 c

ertif

ied

pers

ons

and

190

train

ers

in th

e fie

ld o

f pu

blic

pro

cure

men

t.

Q 5

.1.

Yes

;

Join

t nat

iona

l rul

es fo

r the

200

7-20

13 h

ave

been

impr

oved

on

the

basi

s of

exp

erie

nce

in im

plem

entin

g th

e au

dit r

ecom

men

datio

ns.

With

reg

ard

to im

plem

enta

tion

cont

inui

ng to

the

end

of 2

016,

a r

ealis

tic a

sses

smen

t of

the

effe

ctiv

enes

s is

exp

ecte

d in

201

6. I

n pa

ralle

l, jo

int n

atio

nal r

ules

for t

he p

erio

d 20

14-2

020

incl

udin

g th

e gu

idel

ines

and

reco

mm

enda

tions

of t

he E

urop

ean

Com

mis

sion

ha

ve b

een

prep

ared

.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

No;

The

Min

istry

of F

inan

ce is

resp

onsi

ble

for t

he im

plem

enta

tion

of s

tate

aid

pol

icy

and

for p

rovi

ding

an

opin

ion

on c

ompl

ianc

e of

pr

opos

als

/ pro

gram

me

aid,

this

spe

cific

ally

mea

ns w

ithou

t the

opi

nion

of t

he M

oF it

is n

ot p

ossi

ble

to a

lloca

te s

tate

aid

exe

mpt

ed

from

not

ifica

tion

to t

he E

urop

ean

Com

mis

sion

. In

add

ition

, th

e M

inis

try o

f Fi

nanc

e al

so p

artic

ipat

es i

n st

reng

then

ing

the

awar

enes

s of

EU

rul

es o

n st

ate

aid

of s

o ca

lled

ex a

nte

cond

ition

ality

. Thu

s en

surin

g th

e co

mpl

ianc

e of

the

prog

ram

me

with

the

stat

e ai

d ru

les.

Q 7

.1.

Man

agin

g A

utho

rity

of th

e op

erat

iona

l pro

gram

me

"Com

petit

iven

ess

and

Coh

esio

n" h

as p

repa

red

Inst

ruct

ions

on

the

appl

icat

ion

of s

impl

ified

fund

ing

oppo

rtuni

ties

(SFO

), w

hich

eas

ily e

xpla

ins

wha

t sim

plifi

ed fu

ndin

g op

portu

nitie

s ar

e av

aila

ble

and

the

way

in

whi

ch th

ey c

an b

e ap

plie

d to

the

rele

vant

spe

cific

obj

ectiv

es o

f the

pro

gram

me.

The

inst

ruct

ions

do

not e

xclu

de a

ny p

ossi

bilit

y of

SFO

, bu

t it

rath

er,

give

n th

e br

eadt

h of

the

pro

gram

me

(9 o

f 11

the

mat

ic o

bjec

tives

), ex

plai

ns h

ow t

o dr

aft

the

nece

ssar

y do

cum

enta

tion

for e

ach

SFO

and

how

the

Man

agin

g A

utho

rity

will

revi

ew a

nd a

ppro

ve th

e ch

osen

met

hodo

logy

and

SFO

.

In 2

016

the

use

of S

FOs

is e

xpec

ted

as p

art o

f the

aw

ard

proc

edur

es th

at a

re p

lann

ed fo

r the

nex

t per

iod.

Thi

s pa

rticu

larly

app

lies

to th

e ca

tego

ries

of S

FOs

that

do

not r

equi

re a

dditi

onal

met

hodo

logi

es a

nd th

e ap

plic

atio

n of

whi

ch c

omes

dire

ctly

fro

m th

e EU

R

egul

atio

n. I

n la

ter

stag

es, d

ue t

o th

e fa

ct t

hat

the

vast

maj

ority

of

SFO

s re

quire

his

toric

al d

ata

serie

s, it

is e

xpec

ted

that

the

au

thor

ities

, on

the

basi

s of

exp

erie

nce

and

data

col

lect

ed in

the

first

yea

rs o

f im

plem

enta

tion,

will

beg

in to

use

oth

er S

FOs.

Sinc

e th

e au

thor

ities

in

man

agem

ent

and

cont

rol,

as w

ell

as t

he a

udit

auth

ority

, ha

ve l

imite

d ex

perie

nce

in t

he i

mpl

emen

tatio

n an

d

127

audi

ting

of S

FOs,

furth

er w

ork

will

be

done

to b

oost

cap

acity

.

C

YPR

US

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

Ope

ratio

nal P

rogr

amm

e C

ompe

titiv

enes

s and

Sus

tain

able

Dev

elop

men

t (ER

DF

& C

F):

Reg

ardi

ng t

he p

erfo

rman

ce f

ram

ewor

k, b

oth

com

mon

and

oth

er o

utpu

t in

dica

tors

hav

e be

en u

sed,

one

fin

anci

al i

ndic

ator

co

ncer

ning

‘ce

rtifie

d pu

blic

exp

endi

ture

’ an

d on

e ‘k

ey i

mpl

emen

tatio

n ph

ase’

ind

icat

or c

once

rnin

g th

e ‘n

umbe

r of

inc

lude

d pr

ojec

ts’.

The

perf

orm

ance

fram

ewor

k ou

tput

indi

cato

rs w

hich

are

not

com

mon

are

the

follo

win

g:

• Pub

lic b

odie

s/Se

rvic

es g

rant

ed a

id fo

r the

dev

elop

men

t of d

igita

l e-g

over

nanc

e ap

plic

atio

ns

• Num

ber o

f bre

akw

ater

s con

stru

cted

for t

he p

rote

ctio

n of

coa

stal

are

as

• Add

ition

al re

cove

ry c

apac

ity fo

r bio

degr

adab

le m

ater

ials

• Ext

ensi

on o

f the

qua

y of

the

port

infr

astru

ctur

e

• Len

gth

of th

e bi

cycl

e pa

th n

etw

ork

unde

r con

stru

ctio

n

• Ope

n ar

eas c

reat

ed o

r res

tore

d to

impr

ove

urba

n m

obili

ty

128

• Num

ber o

f inf

rast

ruct

ure

of h

isto

rical

or c

ultu

ral i

nter

est s

ubje

ct to

impr

ovem

ents

Ope

ratio

nal P

rogr

amm

e Se

a (E

MFF

):

No

addi

tiona

l or c

ompl

emen

tary

per

form

ance

indi

cato

rs o

ther

than

thos

e de

term

ined

by

the

EMFF

Reg

ulat

ion

will

be

used

for t

he

prog

ram

me.

Q 1

.3.

Yes

;

The

colle

ctio

n an

d st

orag

e of

dat

a is

rel

ated

to

the

oper

atio

n of

the

int

egra

ted

info

rmat

ion

syst

em,

the

prep

arat

ion

of t

he

man

agem

ent

and

cont

rol

syst

em a

nd,

cons

eque

ntly

, th

e tim

ely

com

men

cem

ent

of t

he i

mpl

emen

tatio

n of

the

ind

ivid

ual

inte

rven

tions

incl

uded

in th

e fr

amew

ork

of th

e op

erat

iona

l pro

gram

mes

. Giv

en th

e ab

ove

and

the

fact

that

the

indi

cato

rs w

ill b

e co

rrel

ated

with

pro

ject

s pl

anne

d to

be

incl

uded

dire

ctly

, the

pro

gres

s of

the

indi

cato

rs w

ill b

e m

onito

red

thro

ugh

the

inte

grat

ed

info

rmat

ion

syst

em.

Q 2

.2.

Yes

;

Plan

ning

cap

acity

im

prov

emen

t se

min

ars

for

the

stak

ehol

ders

, pu

rcha

sing

ser

vice

s fr

om i

ndep

ende

nt e

xper

ts t

o as

sist

/sup

port,

m

onito

ring

and

eval

uatio

n, im

prov

ing

the

exis

ting

softw

are

for d

ata

colle

ctio

n

The

new

tem

plat

e w

as g

iven

to th

e EI

F, w

hich

act

s as

a f

und

man

ager

for

the

finan

cial

inst

rum

ents

impl

emen

ted

in C

ypru

s to

co

rrec

tly c

ompl

ete

the

info

rmat

ion

incl

uded

in th

e an

nual

repo

rt an

d th

e fin

al re

port

on th

e im

plem

enta

tion

of th

e pr

ogra

mm

es.

Q 4

.1.

At a

nat

iona

l lev

el, t

he sa

me

EU g

uide

lines

are

impl

emen

ted

in c

ases

of n

on-c

ompl

ianc

e w

ith th

e ru

les o

n pu

blic

pro

cure

men

t.

Q 5

.1.

Yes

;

Follo

win

g a

stat

istic

al a

naly

sis

of t

he e

rror

s an

d irr

egul

ariti

es i

dent

ified

in

the

verif

icat

ions

, wea

knes

ses

wer

e id

entif

ied

in t

he

tech

nica

l ver

ifica

tions

dur

ing

the

impl

emen

tatio

n of

the

cont

ract

s, m

ainl

y in

con

stru

ctio

n co

ntra

cts

exec

uted

by

loca

l aut

horit

ies

and

softw

are

deve

lopm

ent

cont

ract

s ex

ecut

ed b

y pu

blic

uni

vers

ities

. Th

e co

ntra

ctin

g au

thor

ities

are

the

refo

re r

efer

red

to t

he

Cen

tral C

omm

ittee

for V

aria

tions

and

Cla

ims f

or e

xam

inat

ion

of th

e am

endm

ent r

eque

sts f

or su

ch c

ontra

cts,

prov

isio

n of

gui

danc

e

129

and

opin

ion,

as w

ell a

s for

med

iatio

n w

ith th

e co

ntra

ctor

s inv

olve

d fo

r the

reso

lutio

n of

dis

pute

s.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

;

Sche

me

man

agem

ent b

odie

s, w

hich

dem

onst

rate

d si

gnifi

cant

wea

knes

ses i

n m

anag

ing

aid

sche

mes

for t

he F

P 20

07-2

013

and

wer

e ei

ther

rem

oved

as

man

agem

ent

bodi

es f

or t

he n

ew F

P 20

14-2

020

or a

re c

urre

ntly

und

er c

lose

mon

itorin

g an

d as

sess

men

t to

ad

dres

s th

e w

eakn

esse

s an

d en

sure

cor

rect

sta

ffin

g, tr

aini

ng a

nd o

rgan

isat

ion

prio

r to

the

appr

oval

of

the

aid

sche

mes

of

the

FP

2014

-202

0.

Q 7

.1.

A m

etho

dolo

gy is

cur

rent

ly b

eing

dev

elop

ed re

gard

ing

the

use

of si

mpl

ified

cos

t opt

ions

for t

he re

sear

ch a

nd in

nova

tion

proj

ects

to

be i

mpl

emen

ted

durin

g th

e FP

201

4-20

20 f

rom

the

Res

earc

h Pr

omot

ion

Foun

datio

n an

d th

e M

inis

try o

f En

ergy

, C

omm

erce

, In

dust

ry a

nd T

ouris

m.

C

ZEC

HR

EPU

BL

IC

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

Nat

iona

l Coo

rdin

atin

g B

ody:

130

The

Cze

ch R

epub

lic h

as d

raw

n up

a N

atio

nal I

ndic

ator

Cod

e Li

st, c

onta

inin

g a

com

plet

e lis

t of

indi

cato

rs u

sed

by o

pera

tiona

l pr

ogra

mm

es. T

his

list

cont

ains

bot

h co

mm

on a

nd s

peci

fic i

ndic

ator

s (c

reat

ed a

t na

tiona

l le

vel).

Spe

cific

ind

icat

ors

are

used

to

mon

itor t

he p

ursu

it of

spec

ific

natio

nal o

bjec

tives

bey

ond

the

scop

e of

the

com

mon

indi

cato

rs d

efin

ed b

y th

e C

omm

issi

on.

EAFR

D (M

inis

try o

f Agr

icul

ture

):

In th

e pr

ogra

mm

ing

docu

men

t, th

e de

scrip

tion

of e

ach

oper

atio

n se

ts o

ut it

s ob

ject

ives

and

the

atte

ndan

t ind

icat

ors.

In th

ose

case

s w

here

an

obje

ctiv

e w

as fo

und

not t

o ha

ve a

dire

ct li

nk to

a c

omm

on in

dica

tor u

nder

EU

legi

slat

ion,

spe

cific

indi

cato

rs w

ere

adde

d (e

.g. t

he s

hare

of u

nder

taki

ngs

whe

re th

ere

was

an

incr

ease

in g

ross

val

ue a

dded

, the

num

ber o

f inn

ovat

ive

proj

ects

, the

num

ber o

f pr

ojec

ts e

nsur

ing

anim

al w

elfa

re, t

he s

hare

of u

nder

taki

ngs

whe

re p

erfo

rman

ce w

as e

nhan

ced,

the

num

ber o

f agr

icul

tura

l hol

ding

s ne

wly

pro

cess

ing

thei

r ow

n pr

oduc

ts, t

he o

vera

ll ar

ea o

f bl

anke

t m

easu

res

impl

emen

ted

– fo

r re

-par

celli

ng, b

roke

n do

wn

into

en

viro

nmen

tal/w

ater

/ero

sion

con

trol m

easu

res,

etc.

). A

noth

er c

ateg

ory

of o

pera

tion

whe

re s

peci

fic in

dica

tors

are

add

ed is

For

est

Infr

astru

ctur

e; h

ere,

in v

iew

of

the

crea

tion

of th

e sp

ecifi

c pr

iorit

y ar

ea 2

C, t

he ta

rget

(re

sult)

indi

cato

r of

impr

ovem

ents

in th

e st

ruct

ure

of fo

rest

road

s an

d ot

her o

utpu

t ind

icat

ors

(the

over

all l

engt

h of

fore

st ro

ads,

the

num

ber o

f ent

ities

sup

porte

d) w

ere

also

ad

ded.

EMFF

:

In re

latio

n to

the

EMFF

, spe

cific

indi

cato

rs fo

r obj

ectiv

es u

nder

the

Ope

ratio

nal P

rogr

amm

e Fi

sher

ies

2014

-202

0 ha

ve b

een

set i

n th

e C

zech

Rep

ublic

. Ex

ampl

es o

f in

dica

tors

inc

lude

mai

nten

ance

of

the

aqua

cultu

re p

rodu

ctio

n vo

lum

e an

d, f

or t

echn

ical

as

sist

ance

, the

ext

ent t

o w

hich

pro

gram

me

reso

urce

s are

take

n up

.

Q 1

.3.

Yes

;

Nat

iona

l Coo

rdin

atin

g B

ody:

Yes

, the

Cze

ch R

epub

lic w

ill b

e in

a p

ositi

on to

pro

vide

relia

ble

data

on

the

basi

s of

the

syst

em e

stab

lishe

d in

the

Cze

ch R

epub

lic

for r

epor

ting

on st

ockt

akin

g, p

rogr

ess a

nd d

evel

opm

ents

.

Stoc

ktak

ing,

pro

gres

s and

dev

elop

men

ts a

re re

porte

d at

the

leve

l of t

he P

artn

ersh

ip A

gree

men

t pro

gram

mes

. Thi

s tak

es th

e fo

rm o

f va

rious

repo

rts.

1) P

artn

ersh

ip a

gree

men

t lev

el (n

atio

nal r

equi

rem

ent)

131

Partn

ersh

ip A

gree

men

t ann

ual r

epor

t

Ann

ual r

epor

ts o

n th

e A

gree

men

t are

dra

wn

up e

very

yea

r, fr

om 2

016

until

200

5 in

clus

ive,

and

cov

er th

e pr

eced

ing

cale

ndar

yea

r. Th

e an

nual

repo

rt on

the

Agr

eem

ent a

s at 3

1 D

ecem

ber o

f yea

r n is

dra

wn

up a

t the

beg

inni

ng o

f the

yea

r fol

low

ing

(n+1

) the

yea

r fo

r w

hich

the

rep

ort

is m

ade,

and

is

subm

itted

to

the

Cze

ch G

over

nmen

t by

30

Apr

il of

yea

r n+

1. T

he a

nnua

l re

port

on t

he

Agr

eem

ent i

s sub

mitt

ed to

the

Cze

ch G

over

nmen

t by

this

dea

dlin

e to

that

ther

e is

tim

e to

impl

emen

t the

mea

sure

s app

rove

d by

the

Cze

ch G

over

nmen

t.

The

stru

ctur

e an

d co

nten

t of

the

rep

ort

on t

he A

gree

men

t ar

e es

tabl

ishe

d an

d ar

rang

ed p

urel

y w

ith a

vie

w t

o m

anag

ing

the

impl

emen

tatio

n of

the

Partn

ersh

ip A

gree

men

t and

pro

gram

mes

. The

firs

t par

t of t

he a

nnua

l rep

ort o

n th

e A

gree

men

t pro

vide

s ke

y fu

ndam

enta

l inf

orm

atio

n as

a b

asis

for t

he C

zech

Gov

ernm

ent’s

dec

isio

ns. T

he s

econ

d pa

rt co

mpr

ises

a s

umm

ary

over

view

of t

he

stat

e of

im

plem

enta

tion

of t

he P

artn

ersh

ip A

gree

men

t an

d pr

ogra

mm

es.

The

emph

asis

is

on t

he a

ptne

ss,

conc

isen

ess

and

com

preh

ensi

bilit

y of

the

data

and

info

rmat

ion

disc

lose

d.

The

annu

al r

epor

t on

the

Agr

eem

ent

will

add

ress

, in

par

ticul

ar,

com

plia

nce

with

ex-

ante

con

ditio

nalit

ies,

coor

dina

tion

with

pr

ogra

mm

es c

o-fin

ance

d by

ESI

fund

s an

d ot

her E

U a

nd n

atio

nal p

rogr

amm

es, t

he le

vel o

f adm

inis

trativ

e ca

paci

ty, t

he u

tilis

atio

n of

the

Partn

ersh

ip A

gree

men

t and

pro

gram

mes

, maj

or p

roje

cts,

finan

cial

inst

rum

ents

and

inte

grat

ed to

ols.

Partn

ersh

ip A

gree

men

t pro

gres

s rep

ort (

Com

mis

sion

requ

irem

ent)

Dur

ing

the

2014

-202

0 pr

ogra

mm

ing

perio

d, tw

o pr

ogre

ss re

ports

on

the

Agr

eem

ent a

re to

be

draw

n up

(in

acco

rdan

ce w

ith A

rticl

e 52

of t

he G

ener

al R

egul

atio

n):

1. T

he p

rogr

ess

repo

rt on

the

im

plem

enta

tion

of t

he P

artn

ersh

ip A

gree

men

t as

at

31 D

ecem

ber

2016

is

to b

e su

bmitt

ed t

o th

e C

omm

issi

on b

y 31

Aug

ust 2

017;

2. T

he p

rogr

ess

repo

rt on

the

im

plem

enta

tion

of t

he P

artn

ersh

ip A

gree

men

t as

at

31 D

ecem

ber

2018

is

to b

e su

bmitt

ed t

o th

e C

omm

issi

on b

y 31

Aug

ust 2

019.

The

stru

ctur

e an

d co

nten

t of t

he p

rogr

ess r

epor

t on

the

Agr

eem

ent t

o be

subm

itted

in 2

017

are

base

d on

Com

mis

sion

Impl

emen

ting

Reg

ulat

ion

(EU

) 201

5/20

7 of

20

Janu

ary

2015

.

Eval

uatio

n re

ports

(ev

alua

tions

), V

erifi

catio

n of

the

Cha

nge

in D

evel

opm

ent

Nee

ds (

Partn

ersh

ip A

gree

men

t re

leva

nce)

, th

e Ev

alua

tion

of C

ompl

ianc

e w

ith P

artn

ersh

ip A

gree

men

t Obj

ectiv

es a

nd, t

o so

me

degr

ee, c

erta

in o

ther

eva

luat

ions

incl

uded

in th

e

132

Partn

ersh

ip A

gree

men

t eva

luat

ion

plan

will

als

o be

use

d in

the

prod

uctio

n of

the

prog

ress

repo

rt on

the

Partn

ersh

ip A

gree

men

t.

2) P

rogr

amm

e le

vel

Ann

ual/f

inal

rep

orts

on

prog

ram

me

impl

emen

tatio

n –

thes

e ar

e m

ore

deta

iled

in s

truct

ure

than

rep

orts

on

the

Partn

ersh

ip

Agr

eem

ent.

3) M

onito

ring

of th

e up

take

situ

atio

n, p

rogr

ess a

nd d

evel

opm

ents

at t

he le

vel o

f the

Par

tner

ship

Agr

eem

ent a

nd p

rogr

amm

es

Mon

itorin

g of

the

upta

ke s

ituat

ion,

pro

gres

s an

d de

velo

pmen

ts a

t the

leve

l of t

he P

artn

ersh

ip A

gree

men

t and

pro

gram

mes

, car

ried

out v

ia th

e M

S201

4+ m

onito

ring

syst

em, w

ill b

e us

ed in

the

prod

uctio

n of

the

Ann

ual R

epor

t on

the

Partn

ersh

ip A

gree

men

t, th

e Pr

ogre

ss R

epor

t on

the

Partn

ersh

ip A

gree

men

t, an

d th

e A

nnua

l/Fin

al R

epor

t on

Prog

ram

me

Impl

emen

tatio

n.

Cha

ract

eris

tics

rela

ting

to t

he m

onito

ring

of t

he u

ptak

e si

tuat

ion,

pro

gres

s an

d de

velo

pmen

ts a

t th

e le

vel

of t

he P

artn

ersh

ip

Agr

eem

ent a

nd p

rogr

amm

es:

The

situ

atio

n, p

rogr

ess

and

deve

lopm

ents

in

the

upta

ke o

f fin

anci

al r

esou

rces

fro

m t

he E

SI f

unds

are

mon

itore

d co

ntin

uous

ly,

perio

dica

lly (m

onth

ly) a

nd a

d ho

c.

The

curr

ent (

mon

thly

) and

cum

ulat

ive

leve

ls o

f upt

ake

(fro

m th

e st

art o

f the

pro

gram

min

g pe

riod

to th

e en

d of

the

curr

ent m

onth

) ar

e m

onito

red.

Bot

h ab

solu

te v

alue

s an

d pe

rcen

tage

s ar

e us

ed (

e.g.

in r

elat

ion

to th

e ov

eral

l allo

catio

n, th

e re

leva

nt le

vels

of

upta

ke, f

inan

cial

ta

rget

s, up

take

che

ck li

mits

and

lim

its o

n pr

ogra

mm

e up

take

, and

mon

thly

incr

ease

s).

Leve

ls o

f upt

ake

are

mon

itore

d fo

r all

sour

ces o

f fin

anci

ng a

nd fo

r bot

h cu

rren

cies

.

The

time

serie

s in

the

deve

lopm

ent o

f upt

ake,

by

mon

th, i

s re

cord

ed fo

r the

indi

vidu

al le

vels

of f

inan

cial

reso

urce

s, at

indi

vidu

al

prog

ram

me

and

stra

tegi

c le

vels

, and

at t

he le

vel o

f the

Par

tner

ship

Agr

eem

ent.

Atte

ntio

n is

als

o pa

id to

cal

ls, t

he p

rogr

ess

stat

us th

ereo

f, an

d de

velo

pmen

ts in

rela

tion

to th

e ca

ll al

loca

tion,

as

wel

l as

to c

ostly

op

erat

ions

(e.

g. m

ajor

pro

ject

s) a

nd o

pera

tions

inv

olvi

ng a

spe

cific

mod

e of

im

plem

enta

tion

and

adm

inis

tratio

n (e

.g. f

inan

cial

in

stru

men

ts,

inte

grat

ed s

trate

gies

). W

ith t

he E

AFR

D,

old

liabi

litie

s ar

e al

so t

aken

int

o ac

coun

t. Th

e si

tuat

ion,

pro

gres

s an

d de

velo

pmen

ts i

n op

erat

ions

, or

grou

ps o

f op

erat

ions

, ide

ntifi

ed a

s ris

ky b

y an

ana

lysi

s of

ris

ks a

nd t

he i

mpl

emen

tatio

n of

the

fin

anci

al a

nd m

ater

ial p

rogr

amm

e ob

ject

ives

are

als

o m

onito

red.

133

The

mai

n da

ta s

ourc

e is

MS2

014+

; with

the

EAFR

D a

nd E

MFF

, the

Sta

te A

gric

ultu

ral I

nter

vent

ion

Fund

’s in

form

atio

n sy

stem

al

so c

omes

into

pla

y. T

he re

sult

is o

utpu

t rep

orts

gen

erat

ed a

d ho

c an

d au

tom

atic

ally

at t

he e

nd o

f the

giv

en m

onth

.

The

situ

atio

n, p

rogr

ess

and

deve

lopm

ents

in

the

upta

ke o

f ES

I fu

nds

are

mon

itore

d by

man

agin

g au

thor

ities

, th

e M

inis

try o

f R

egio

nal D

evel

opm

ent (

the

natio

nal c

oord

inat

ing

body

) and

the

Min

istry

of F

inan

ce (t

he p

aym

ent a

nd c

ertif

ying

aut

horit

y).

EAFR

D (M

inis

try o

f Agr

icul

ture

):

The

Cze

ch R

epub

lic w

ill p

rovi

de d

ata

for t

he a

ctio

ns it

has

impl

emen

ted

to th

e ex

tent

of t

he c

omm

on in

dica

tor s

yste

m e

stab

lishe

d by

Reg

ulat

ion

(EU

) N

o 13

05/2

013

of th

e Eu

rope

an P

arlia

men

t and

of

the

Cou

ncil

on s

uppo

rt fo

r ru

ral d

evel

opm

ent (

espe

cial

ly

finan

cial

dat

a ab

out o

vera

ll pu

blic

exp

endi

ture

), an

d sp

ecifi

c in

dica

tors

that

, we

have

con

clud

ed, i

t wou

ld b

e ap

prop

riate

to tr

ack

durin

g th

e pr

ogra

mm

ing

perio

d.

No;

EMFF

(Min

istry

of A

gric

ultu

re):

The

initi

al in

take

of a

pplic

atio

ns fo

r aid

und

er th

e O

pera

tiona

l Pro

gram

me

Fish

erie

s 20

14-2

020

took

pla

ce fr

om 2

1 O

ctob

er to

18

Nov

embe

r 201

5. G

rant

aw

ard

deci

sion

s sh

all b

e is

sued

with

in s

even

mon

ths

of th

e en

d of

aid

app

licat

ion

inta

ke, i

.e. b

y 18

Jun

e 20

16. B

enef

icia

ries

have

12

or 2

4 m

onth

s in

whi

ch to

impl

emen

t the

pro

ject

and

sub

mit

a pa

ymen

t app

licat

ion,

i.e.

unt

il 18

Jun

e 20

17 o

r 18

June

201

8. O

nly

a lim

ited

num

ber o

f pro

ject

s will

be

com

plet

ed a

nd re

imbu

rsed

in 2

016.

Alth

ough

the

figur

es fo

r the

se

proj

ects

will

be

relia

ble,

in v

iew

of

the

limite

d nu

mbe

r of

sim

ple

proj

ects

rei

mbu

rsed

in th

e se

cond

hal

f of

201

6 su

ch d

ata

will

ha

ve li

ttle

info

rmat

ive

valu

e in

the

revi

ew o

f the

mul

tiann

ual f

inan

cial

fram

ewor

k sl

ated

for 2

017.

Q 2

.2.

No;

the

Cze

ch R

epub

lic h

as n

ot ta

ken

any

spec

ial m

easu

res t

o im

prov

e th

e qu

ality

of r

epor

ts o

n fin

anci

al in

stru

men

ts, a

side

from

ac

quai

ntin

g th

e re

leva

nt m

anag

ing

auth

oriti

es w

ith th

e la

test

ver

sion

of t

he re

port

tem

plat

e pr

esen

ted

at th

e EG

ESIF

. All

repo

rts

will

pas

s thr

ough

the

Min

istry

of R

egio

nal D

evel

opm

ent (

the

natio

nal c

oord

inat

ing

body

), as

the

coor

dina

tor,

for c

onsu

ltatio

n in

or

der t

o en

sure

the

cons

iste

ncy

of re

porti

ng st

anda

rds.

Q 3

.1.

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n:

In o

ur v

iew

, onl

y on

e of

the

findi

ngs

abov

e is

cor

rect

. The

inte

rnal

con

trol s

yste

m o

f the

Man

agin

g A

utho

rity

of th

e O

pera

tiona

l Pr

ogra

mm

e R

esea

rch

and

Dev

elop

men

t fo

r In

nova

tion

is n

ot a

t fa

ult

here

. W

e do

not

hav

e th

e au

thor

ity t

o co

mm

ent

on t

he

134

func

tiona

lity

of th

e gr

ante

e’s i

nter

nal c

ontro

l sys

tem

. O

pera

tiona

l Pro

gram

me

Educ

atio

n fo

r Com

petit

iven

ess:

In

rel

atio

n to

aud

ited

proj

ects

und

er t

he O

pera

tiona

l Pr

ogra

mm

e Ed

ucat

ion

for

Com

petit

iven

ess,

the

ECA

aud

it id

entif

ied

no

findi

ngs d

eriv

ing

from

pot

entia

l con

ditio

ns a

rtific

ially

cre

ated

for t

he a

cqui

sitio

n of

aid

. M

inis

try o

f Agr

icul

ture

: Th

e C

zech

Rep

ublic

dis

agre

ed w

ith th

e EC

A’s

con

clus

ion

that

the

audi

ted

proj

ect h

ad fa

iled

to m

eet t

he s

elec

tion

crite

ria a

nd th

at

ther

e ha

d be

en a

ser

ious

sho

rtcom

ing

in t

he p

erfo

rman

ce o

f ad

min

istra

tive

on-th

e-sp

ot c

heck

s. Th

e se

lect

ion

crite

ria w

ere

laid

do

wn

in th

e R

ules

for

App

lican

ts a

nd w

ere

appr

oved

by

the

Rur

al D

evel

opm

ent P

rogr

amm

e M

onito

ring

Com

mitt

ee. T

he S

tate

A

gric

ultu

ral

Inte

rven

tion

Fund

, as

the

pay

ing

agen

cy,

ran

chec

ks o

n co

nditi

ons

in a

ccor

danc

e w

ith t

he a

pplic

able

Rul

es f

or

App

lican

ts, w

hich

wer

e m

et b

y th

e ap

plic

ant c

once

rned

. The

pre

sum

ptio

n th

at th

e sp

ecifi

c ap

plic

ant h

ad p

urpo

rtedl

y ac

ted

with

ul

terio

r mot

ives

is a

n en

tirel

y su

bjec

tive

opin

ion

that

is d

iffic

ult t

o pr

ove,

and

can

not f

orm

the

basi

s fo

r gen

eral

con

clus

ions

that

th

ere

has b

een

a se

rious

shor

tcom

ing

in th

e pe

rfor

man

ce o

f adm

inis

trativ

e on

-the-

spot

che

cks.

Aud

it au

thor

ity:

Echo

ing

the

Com

mis

sion

’s p

ositi

on, w

e be

lieve

that

, for

pur

pose

s of

lega

l cer

tain

ty (

pred

icta

bilit

y in

the

beha

viou

r of

gra

ntor

s),

the

awar

d of

a g

rant

can

not

be w

ithhe

ld s

olel

y on

the

bas

is o

f a

susp

icio

n. W

e al

so m

aint

ain

that

, at

the

stag

e w

hen

proj

ect

appl

icat

ions

are

bei

ng e

valu

ated

, it i

s di

ffic

ult t

o id

entif

y co

nditi

ons

artif

icia

lly c

reat

ed to

acq

uire

aid

. Nev

erth

eles

s, th

e C

zech

R

epub

lic is

min

dful

of

risks

ass

ocia

ted

with

the

artif

icia

l cre

atio

n of

con

ditio

ns to

acq

uire

aid

and

, am

ong

othe

r th

ings

, ana

lyse

s op

portu

nitie

s to

adop

t rul

es/m

etho

dolo

gy to

reve

al th

e ow

ners

hip

stru

ctur

e of

com

pani

es in

this

con

text

. In

our

opi

nion

, dur

ing

proj

ect i

mpl

emen

tatio

n it

is e

ssen

tial t

o m

onito

r all

indi

catio

ns (r

ed fl

ags)

of t

his t

ype

of fr

aud,

and

to re

port

such

indi

catio

ns to

the

rele

vant

nat

iona

l and

EU

ant

i-fra

ud a

utho

ritie

s.

Q 3

.2.

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n:

The

indi

vidu

al sh

ortc

omin

g id

entif

ied

in th

e aw

ard

of o

ne p

ublic

con

tract

– w

hich

had

no

bear

ing

on th

e se

lect

ion

of th

e co

ntra

ctor

can

no l

onge

r be

rem

edie

d. G

ener

ally

spe

akin

g, w

e vi

ew p

ublic

pro

cure

men

t er

rors

as

a cr

itica

l ris

k to

the

Ope

ratio

nal

Prog

ram

me

Res

earc

h an

d D

evel

opm

ent

for

Inno

vatio

n, a

nd w

e ar

e pa

ying

app

ropr

iate

atte

ntio

n to

thi

s m

atte

r. A

pub

lic

proc

urem

ent c

ontro

l sys

tem

has

bee

n es

tabl

ishe

d. C

heck

s ar

e co

nduc

ted

by s

peci

alis

ed la

wye

rs. G

rant

ees

are

prov

ided

with

the

info

rmat

ion

they

nee

d an

d w

ith m

etho

dolo

gica

l ass

ista

nce.

Nat

iona

l Coo

rdin

atin

g B

ody:

In th

e pr

epar

atio

n of

the

2014

-202

0 pr

ogra

mm

ing

perio

d, g

reat

impo

rtanc

e ha

s be

en a

ttach

ed to

stre

ngth

enin

g st

rate

gic

plan

ning

, en

hanc

ing

the

effic

ienc

y of

the

man

agem

ent s

yste

m, a

nd a

chie

ving

obj

ectiv

es a

nd re

sults

.

The

Min

istry

of

Reg

iona

l D

evel

opm

ent,

as t

he b

ody

resp

onsi

ble

for

the

prep

arat

ion

of t

he P

artn

ersh

ip A

gree

men

t an

d th

e

135

conf

igur

atio

n of

the

sys

tem

for

the

man

agem

ent

and

coor

dina

tion

of E

urop

ean

Stru

ctur

al a

nd I

nves

tmen

t Fu

nds

in t

he C

zech

R

epub

lic, h

as c

apita

lised

on

expe

rienc

e ga

ined

from

pre

viou

s pr

ogra

mm

ing

perio

ds to

est

ablis

h a

basi

c se

t of r

ules

on

aid

upta

ke

as a

con

ditio

n fo

r th

e ef

ficie

nt a

nd f

unct

ioni

ng s

yste

m o

f im

plem

enta

tion.

The

se r

ules

, an

chor

ed i

n th

e co

ncep

t of

a s

ingl

e m

etho

dolo

gica

l env

ironm

ent,

are

unifo

rm a

nd b

indi

ng o

n al

l im

plem

enta

tion

entit

ies.

The

crea

tion

of a

uni

form

fram

ewor

k of

rule

s vi

a bi

ndin

g m

etho

dolo

gica

l gui

delin

es w

ill r

esul

t in

the

desi

rabl

e ha

rmon

isat

ion

of r

ules

for

aid

ben

efic

iarie

s un

der

the

vario

us

supp

ort p

rogr

amm

es. S

tand

ardi

sed

rule

s ba

sed

on u

nifo

rm a

ppro

ache

s an

d pr

inci

ples

, whi

ch a

re s

et in

adv

ance

, pub

licly

ava

ilabl

e an

d su

ppor

ted

by a

uni

form

inte

rpre

tatio

n, w

ill b

e co

nduc

ive

to im

prov

ed k

now

ledg

e of

con

ditio

ns ti

ed to

the

aid

gran

ted,

as

wel

l as

the

im

prov

ed p

redi

ctab

ility

and

rea

dabi

lity

of t

his

envi

ronm

ent,

and

will

red

uce

the

inte

nsity

of

aid

adm

inis

tratio

n am

ong

appl

ican

ts.

The

conc

ept

of a

uni

form

met

hodo

logi

cal

envi

ronm

ent

defin

es t

he f

unda

men

tal

obje

ctiv

es t

hat

the

Min

istry

of

Reg

iona

l D

evel

opm

ent a

spire

s to

fulfi

l. W

ith a

n ap

tly c

onfig

ured

met

hodo

logi

cal e

nviro

nmen

t, th

e M

inis

try o

f Reg

iona

l Dev

elop

men

t will

co

ntrib

ute

to:

• – g

reat

er e

ffic

ienc

y an

d m

ore

econ

omic

al h

andl

ing

of fi

nanc

ial r

esou

rces

;

• – g

reat

er tr

ansp

aren

cy o

f the

pro

cess

es a

nd ru

les b

ehin

d th

e gr

antin

g of

aid

; and

• – a

redu

ced

adm

inis

trativ

e bu

rden

on

entit

ies w

ithin

the

impl

emen

tatio

n st

ruct

ure,

esp

ecia

lly a

id a

pplic

ants

and

ben

efic

iarie

s.

Min

istry

of A

gric

ultu

re:

The

cond

ition

of a

50

% s

hare

of a

you

ng fa

rmer

in a

lega

l per

son

appl

ied

only

in th

e 20

07-2

013

prog

ram

min

g pe

riod.

In th

e ne

w

2014

-202

0 pr

ogra

mm

ing

perio

d, y

oung

far

mer

s m

ust n

ow h

old

a 10

0 %

sha

re in

a le

gal p

erso

n.

Ther

e is

no

need

to ta

ke a

ny

furth

er c

orre

ctiv

e ac

tion.

Q 4

.1.

Min

istry

of R

egio

nal D

evel

opm

ent:

Yes

. Esp

ecia

lly p

reve

ntiv

e m

easu

res

to re

duce

the

erro

r rat

e an

d in

crea

se th

e ef

ficie

ncy

of p

ublic

pro

cure

men

t. Th

ese

prev

entiv

e m

easu

res

are

part

of th

e ac

tion

plan

on

Gen

eral

Ex

Ant

e C

ondi

tiona

lity

4 –

Publ

ic c

ontra

cts,

in a

ccor

danc

e w

ith A

rticl

e 19

of

Reg

ulat

ion

(EU

) No

1303

/201

3 of

the

Euro

pean

Par

liam

ent a

nd o

f the

Cou

ncil.

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n

(A) E

CA

pro

cedu

res

136

In t

he l

ist

of c

onst

ituen

t el

emen

ts i

dent

ified

by

the

ECA

, w

e re

com

men

d ad

ding

a c

onst

ituen

t el

emen

t –

the

defin

ing

of

cate

goric

ally

inad

equa

te q

ualif

icat

ions

for t

he p

artic

ipat

ion

of c

ontra

ctor

s in

proc

urem

ent p

roce

edin

gs.

In th

e ca

se o

f the

con

stitu

ent e

lem

ents

:

• the

def

inin

g of

cat

egor

ical

ly in

adeq

uate

qua

lific

atio

ns fo

r the

par

ticip

atio

n of

con

tract

ors i

n pr

ocur

emen

t pro

ceed

ings

;

• the

arti

ficia

l spl

it of

wor

ks/s

ervi

ces/

supp

lies i

nto

seve

ral t

ende

rs;

• non

-com

plia

nce

with

pub

licat

ion

and/

or tr

ansp

aren

cy re

quire

men

ts;

• unl

awfu

l/dis

crim

inat

ory

tech

nica

l spe

cific

atio

ns;

we

reco

mm

end

not p

roce

edin

g m

anda

toril

y to

a 1

00 %

san

ctio

n, b

ut s

ettin

g a

sanc

tion

deriv

ed f

rom

the

serio

usne

ss o

f th

e er

ror

rela

tive

to th

e ov

eral

l sco

pe o

f the

pub

lic c

ontra

ct. F

or e

xam

ple,

if e

xten

sive

inst

rum

enta

tion

is to

be

supp

lied,

incl

udin

g a

lapt

op

with

a m

argi

nal p

rice

in th

e pu

blic

con

tract

, and

the

bran

d of

the

proc

esso

r in

the

lapt

op is

spe

cifie

d, a

san

ctio

n am

ount

ing

to th

e fu

ll va

lue

of th

e pu

blic

con

tract

for i

nstru

men

tatio

n w

ould

be

out o

f all

prop

ortio

n.

(B) o

ther

type

s of m

easu

res

As

far

as e

xpen

ditu

re f

rom

EU

fun

ds i

s co

ncer

ned,

we

reco

mm

end

that

Mem

ber

Stat

es a

lso

revi

se t

he s

pher

e of

low

-val

ue

cont

ract

s th

at f

all

shor

t of

lim

its p

rom

ptin

g th

e ap

plic

atio

n of

leg

isla

tion

of g

ener

al a

pplic

atio

n to

the

ir aw

ard.

In

parti

cula

r, tra

nspa

renc

y, e

qual

acc

ess

and

non-

disc

rimin

atio

n in

the

aw

ard

of s

uch

low

-val

ue p

ublic

con

tract

s sh

ould

be

refle

cted

in

the

mat

eria

l req

uire

men

ts.

Ope

ratio

nal P

rogr

amm

e Ed

ucat

ion

for C

ompe

titiv

enes

s: N

o.

Q 5

.1.

Yes

;

Cer

tifyi

ng a

utho

rity:

Yes

. In

2015

, the

Cze

ch R

epub

lic’s

cer

tifyi

ng a

utho

rity

for o

pera

tiona

l pro

gram

mes

from

the

2007

-201

3 pr

ogra

mm

ing

perio

d co

-fin

ance

d by

Stru

ctur

al F

unds

, the

Coh

esio

n Fu

nd a

nd th

e Eu

rope

an F

ishe

ries

Fund

enh

ance

d its

pro

cedu

res

and

expa

nded

them

to

incl

ude

a re

view

of s

elec

ted

expe

nditu

re a

nd u

nder

lyin

g do

cum

ents

(on

the

basi

s of s

ampl

ing)

.

137

The

certi

fyin

g au

thor

ity m

odifi

ed it

s pro

cedu

res f

or re

gula

r on-

the-

spot

che

cks a

t ind

ivid

ual m

anag

ing

auth

oriti

es a

nd in

term

edia

te

bodi

es s

o th

at e

ach

on-th

e-sp

ot c

heck

by

the

certi

fyin

g au

thor

ity m

anda

toril

y in

clud

es a

n ex

amin

atio

n of

a r

ando

m s

ampl

e of

be

nefic

iarie

s’ p

aym

ent a

pplic

atio

ns a

lread

y ch

ecke

d an

d ap

prov

ed b

y th

e m

anag

ing

auth

ority

or i

nter

med

iate

bod

y. T

his

mea

sure

fu

rther

stre

ngth

ens

the

revi

ew o

f the

qua

lity

of c

heck

s ca

rrie

d ou

t by

a m

anag

ing

auth

ority

bey

ond

the

scop

e of

the

adm

inis

trativ

e ex

amin

atio

n of

man

agem

ent c

heck

s con

duct

ed a

s par

t of e

ach

certi

ficat

ion

of e

xpen

ditu

re.

Nat

iona

l Coo

rdin

atin

g B

ody:

Har

ness

ing

expe

rienc

e fr

om p

revi

ous

prog

ram

min

g pe

riods

, th

e M

inis

try o

f R

egio

nal

Dev

elop

men

t (th

e na

tiona

l co

ordi

natin

g bo

dy)

has

long

eng

aged

in a

ctiv

ities

gea

red

tow

ards

sim

plifi

catio

n. I

n th

e 20

14-2

020

prog

ram

min

g pe

riod,

ther

e is

a p

artic

ular

em

phas

is o

n sc

alin

g do

wn

the

adm

inis

trativ

e bu

rden

face

d by

app

lican

ts a

nd b

enef

icia

ries o

f res

ourc

es fr

om E

SI fu

nds.

One

of t

he

cond

uits

of

this

act

ivity

is

the

conc

ept

of a

uni

form

met

hodo

logi

cal

envi

ronm

ent,

inte

nded

to

achi

eve

– by

sta

ndar

disi

ng t

he

proc

edur

es a

nd r

ules

tha

t it

prod

uces

– e

ffic

ienc

y an

d ec

onom

y in

the

han

dlin

g of

fin

anci

al r

esou

rces

fro

m E

U f

unds

, th

e tra

nspa

renc

y of

pro

cess

es a

nd th

e lu

cidi

ty o

f rul

es o

n th

e gr

antin

g of

aid

, all

with

a lo

w le

vel o

f adm

inis

tratio

n fo

r ent

ities

with

in

the

impl

emen

tatio

n st

ruct

ure,

esp

ecia

lly a

pplic

ants

and

ben

efic

iarie

s of

aid

. Mea

sure

s to

sca

le d

own

the

adm

inis

trativ

e bu

rden

pl

aced

on

bene

ficia

ries

are

larg

ely

base

d on

the

com

pute

risat

ion

of p

roce

sses

and

pro

cedu

res.

Supp

ort i

nstru

men

ts, i

n th

e fo

rm o

f in

form

atio

n sy

stem

s, w

ill b

e em

ploy

ed fo

r thi

s pu

rpos

e. T

he e

mph

asis

will

be

on fu

ll, fu

nctio

ning

, sim

ple

and

relia

ble

elec

troni

c co

mm

unic

atio

ns.

In t

he c

onfig

urat

ion

of p

roce

sses

in

the

Cze

ch R

epub

lic,

ther

e ar

e pl

ans

for

full

com

pute

risat

ion

(ele

ctro

nic

sign

atur

es, d

ata

boxe

s) a

nd, i

n th

is re

spec

t, fo

r the

use

of a

mon

itorin

g sy

stem

in a

dmin

istra

tive

proc

esse

s th

roug

hout

the

proj

ect

(and

pro

gram

me)

cyc

le.

Inte

rlink

ing

the

avai

labl

e re

gist

ers

will

sub

stan

tially

red

uce

the

adm

inis

trativ

e bu

rden

fac

ed b

y be

nefic

iarie

s/m

anag

ing

auth

oriti

es.

In 2

012,

the

‘Act

ion

Plan

to Im

prov

e th

e M

anag

emen

t and

Con

trol S

yste

m u

nder

the

Stru

ctur

al F

unds

and

Coh

esio

n Fu

nd in

the

Cze

ch R

epub

lic’

was

ado

pted

, and

it c

ontin

ues

to b

e ap

plie

d to

this

day

. Thi

s pl

an in

clud

es m

easu

res

focu

sing

prim

arily

on

the

perf

orm

ance

of

audi

t w

ork,

man

agem

ent

chec

ks a

nd t

he h

andl

ing

of i

rreg

ular

ities

. N

umer

ous

mea

sure

s ha

ve b

een

adop

ted

in

purs

uit o

f im

prov

emen

ts to

the

man

agem

ent a

nd c

ontro

l sys

tem

. The

follo

win

g ar

e ex

ampl

es:

• Th

e ‘M

etho

dolo

gica

l G

uide

line

for

the

Perfo

rman

ce o

f C

heck

s un

der

the

Res

pons

ibili

ty o

f M

anag

ing

Aut

horit

ies

in t

he

Impl

emen

tatio

n of

the

Eur

opea

n St

ruct

ural

and

Inv

estm

ent

Fund

s fo

r th

e 20

14-2

020

Perio

d’,

coor

dina

ted

by t

he M

inis

try o

f Fi

nanc

e, h

as b

een

prep

ared

. It

cont

ains

gro

und

rule

s on

the

con

figur

atio

n of

a m

anag

ing

auth

ority

’s m

anag

emen

t an

d co

ntro

l sy

stem

, and

on

the

perf

orm

ance

of c

heck

s car

ried

out b

y a

man

agin

g au

thor

ity a

t an

inte

rmed

iate

bod

y an

d be

nefic

iary

in th

e 20

14-

2020

pro

gram

min

g pe

riod.

In

orde

r to

saf

egua

rd t

he f

inan

cial

int

eres

ts o

f th

e EU

and

the

Cze

ch R

epub

lic, t

he m

etho

dolo

gica

l gu

idel

ine

also

pay

s atte

ntio

n to

the

prev

entio

n an

d id

entif

icat

ion

of ir

regu

larit

ies.

138

• Am

endm

ents

to A

ct N

o 21

8/20

00 o

n bu

dget

ary

rule

s and

Act

No

250/

2000

on

the

budg

etar

y ru

les o

f ter

ritor

ial b

udge

ts.

• Th

e A

ct o

n th

e in

tegr

ated

fra

mew

ork

of t

he i

nter

nal

man

agem

ent

and

cont

rol

syst

em i

n pu

blic

adm

inis

tratio

n an

d am

endi

ng

certa

in re

late

d la

ws (

the

Inte

rnal

Man

agem

ent a

nd C

ontro

l Act

).

• Ins

pect

ions

by

vario

us d

iffer

ent i

nspe

ctio

n bo

dies

(Cze

ch a

nd E

urop

ean)

use

d to

take

pla

ce w

ithou

t any

cen

tral c

oord

inat

ion.

The

C

zech

Rep

ublic

has

cre

ated

an

Insp

ectio

n Pl

anni

ng In

form

atio

n Sy

stem

in o

rder

to c

entra

lise

the

coor

dina

tion

of in

spec

tion

bodi

es.

• The

pre

para

tion

of u

nifo

rm c

heck

lists

link

ed to

new

pub

lic p

rocu

rem

ent d

irect

ives

.

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n:

Yes

, mea

sure

s had

bee

n ta

ken

befo

re th

e EC

A a

udit.

1. T

he c

heck

lists

use

d to

car

ry o

ut a

dmin

istra

tive

chec

ks a

nd o

n-th

e-sp

ot c

heck

s of

pro

ject

s un

der

the

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n th

at a

re c

o-fin

ance

d by

the

ERD

F ha

ve b

een

upda

ted.

In o

ne o

f its

aud

its, t

he S

upre

me

Aud

it O

ffic

e ev

alua

ted

the

effe

ctiv

enes

s of

the

syst

em f

or c

heck

s on

pub

lic c

ontra

cts,

esta

blis

hed

by th

e M

A o

f th

e O

pera

tiona

l Pr

ogra

mm

e R

esea

rch

and

Dev

elop

men

t for

Inno

vatio

n, in

a p

ositi

ve li

ght.

Che

cklis

ts a

re u

sed

in su

ch c

heck

s.

2. T

here

is a

gre

at e

mph

asis

on

the

prof

essi

onal

qua

lific

atio

ns o

f la

wye

rs c

heck

ing

the

proc

edur

es f

ollo

wed

by

gran

tees

in th

e co

urse

of p

ublic

pro

cure

men

t. Th

e qu

ality

of s

uch

chec

ks a

nd th

e ab

ility

to fo

rmul

ate

insp

ectio

n fin

ding

s co

rrec

tly a

re c

onfir

med

by

the

fac

t th

at,

whe

n co

mpl

aint

s ar

e lo

dged

with

the

Off

ice

for

the

Prot

ectio

n of

Com

petit

ion

seek

ing

the

initi

atio

n of

ad

min

istra

tive

proc

eedi

ngs

ex o

ffic

io, i

f the

com

plai

nt is

bas

ed o

n th

e fin

ding

s of

che

cks

carr

ied

out b

y su

ch la

wye

rs (e

mpl

oyee

s of

the

MA

of

the

Ope

ratio

nal P

rogr

amm

e R

esea

rch

and

Dev

elop

men

t for

Inn

ovat

ion)

, adm

inis

trativ

e pr

ocee

ding

s ar

e fr

eque

ntly

in

itiat

ed, a

nd th

e pr

opor

tion

of u

nsuc

cess

ful c

ompl

aint

s has

con

tract

ed.

3. T

he s

yste

m fo

r the

pro

duct

ion

of p

lans

of o

n-th

e-sp

ot c

heck

s ha

s be

en im

prov

ed. U

nder

lyin

g pl

anni

ng d

ocum

enta

tion

draw

s on

th

e kn

owle

dge

of v

ario

us u

nits

at t

wo

diff

eren

t dep

artm

ents

. Com

pare

d to

the

prev

ious

situ

atio

n, th

is p

rovi

des

a be

tter g

uara

ntee

th

at o

n-th

e-sp

ot c

heck

s will

gen

uine

ly fo

cus o

n pr

oble

mat

ic p

roje

cts.

MA

of t

he O

pera

tiona

l Pro

gram

me

Prag

ue –

Com

petit

iven

ess

Che

cklis

ts (

for

chec

ks o

n m

onito

ring

repo

rts,

paym

ent

appl

icat

ions

and

ten

derin

g pr

oced

ure/

tend

er d

ocum

enta

tion)

hav

e be

en

revi

sed

cont

inuo

usly

(no

t ju

st p

rior

to c

ertif

icat

ion)

, esp

ecia

lly i

n co

nnec

tion

with

the

pro

visi

ons

of a

men

dmen

ts t

o th

e Pu

blic

Pr

ocur

emen

t Act

, bud

geta

ry ru

les a

nd o

ther

law

s, or

on

the

basi

s of m

odifi

catio

ns to

the

met

hodo

logi

es o

f the

Min

istry

of R

egio

nal

139

Dev

elop

men

t (th

e na

tiona

l co

ordi

natin

g bo

dy),

e.g.

the

Bin

ding

Pro

cedu

res

for

the

Aw

ard

of C

ontra

cts

Co-

finan

ced

by E

U

Res

ourc

es b

eyon

d th

e Sc

ope

of th

e Pu

blic

Pro

cure

men

t Act

.

Mod

ifica

tions

, pro

visi

ons a

nd u

pdat

es o

f wor

king

pro

cedu

res (

chec

klis

ts) h

ave

also

bee

n ca

rrie

d ou

t in

resp

onse

to th

e co

nclu

sion

s an

d re

com

men

datio

ns o

f the

Con

trol,

Aud

iting

and

Irre

gula

ritie

s W

orki

ng P

arty

and

in c

onne

ctio

n w

ith a

ctio

n pl

ans

(esp

ecia

lly in

an

d af

ter 2

012)

.

In a

dditi

on, t

he M

A o

f the

Ope

ratio

nal P

rogr

amm

e Pr

ague

– C

ompe

titiv

enes

s, on

the

basi

s of

its

own

findi

ngs

or a

fter r

ecei

ving

no

tific

atio

n of

a s

uspe

cted

irre

gula

rity

(fro

m th

e de

lega

ted

audi

t bod

y, a

udit

auth

ority

, pay

men

t and

cer

tifyi

ng a

utho

rity

or o

ther

in

spec

tion

entit

ies,

or fr

om ‘e

xter

nal’

sour

ces)

, has

exa

min

ed th

e co

nten

t of t

he P

roje

ct G

uide

(for

tran

spar

ency

, com

preh

ensi

bilit

y,

spec

ifici

ty,

com

preh

ensi

vene

ss,

etc.

) an

d W

orki

ng P

roce

dure

s (to

det

erm

ine

whe

ther

the

che

ck q

uest

ions

are

suf

ficie

nt a

nd

spec

ific,

whe

ther

it

is p

ossi

ble

to i

dent

ify a

giv

en t

ype

of e

rror

in

chec

ks o

n m

onito

ring

repo

rts,

paym

ent

appl

icat

ions

and

te

nder

ing

proc

edur

e/te

nder

doc

umen

tatio

n), i

.e. p

rior t

o re

imbu

rsem

ent.

Furth

erm

ore,

in m

eetin

gs o

f the

Uni

t of t

he O

pera

tiona

l Pro

gram

me

Prag

ue –

Com

petit

iven

ess

and

cons

ulta

tions

on

irreg

ular

ities

, in

form

atio

n ha

s bee

n co

mm

unic

ated

bet

wee

n fin

anci

al m

anag

ers c

once

rnin

g fin

ding

s (ty

pes o

f err

ors)

in su

ch a

way

that

they

hav

e be

en a

void

ed. A

id a

pplic

ants

/aid

ben

efic

iarie

s ha

ve b

een

aler

ted

to a

nd a

cqua

inte

d w

ith e

rror

s as

soci

ated

with

non

-com

plia

nce

with

rule

s and

con

ditio

ns u

nder

the

Ope

ratio

nal P

rogr

amm

e Pr

ague

– C

ompe

titiv

enes

s at s

emin

ars a

nd b

y w

ay o

f upd

ates

that

hav

e be

en e

mai

led

to th

em.

The

MA

of t

he O

pera

tiona

l Pro

gram

me

Prag

ue –

Com

petit

iven

ess

has

carr

ied

out p

reve

ntiv

e m

easu

res

on a

n on

goin

g ba

sis

and,

fo

r eve

ry ty

pe o

f fin

ding

(err

or) i

dent

ified

, it h

as ta

ken

corr

ectiv

e ac

tion.

Ope

ratio

nal P

rogr

amm

e Ed

ucat

ion

for C

ompe

titiv

enes

s:

The

chec

klis

ts u

sed

to c

arry

out

adm

inis

trativ

e ch

ecks

and

on-

the-

spot

che

cks

of p

roje

cts

unde

r th

e O

pera

tiona

l Pr

ogra

mm

e Ed

ucat

ion

for C

ompe

titiv

enes

s hav

e be

en u

pdat

ed.

With

in th

e fr

amew

ork

of a

udits

of o

pera

tions

car

ried

out b

y th

e M

inis

try o

f Fin

ance

(aud

it au

thor

ity) s

ince

201

3, th

ere

has

been

a

stea

dfas

t ris

e in

the

num

ber o

f aud

ited

proj

ects

whe

re n

o fin

ding

s w

ith a

fina

ncia

l im

pact

hav

e be

en m

ade

(201

3: 3

4.25

%; 2

014:

50

.00

%; 2

015:

51.

28 %

). Li

kew

ise,

sin

ce 2

013,

ther

e ha

s be

en a

dro

p in

the

num

ber o

f fin

ding

s m

ade

in a

udits

of o

pera

tions

. In

2013

, the

re w

ere

3.45

find

ings

per

pro

ject

aud

ited;

in 2

015,

ther

e w

ere

1.49

find

ings

per

pro

ject

aud

ited.

Dep

artm

ent 4

7 –

Prep

arat

ion

of n

ew le

gisl

atio

n –

Act

on

the

Man

agem

ent a

nd C

ontro

l of P

ublic

Fin

ance

s:

140

The

prop

osed

leg

isla

tion

targ

ets

the

sim

plifi

catio

n, u

nific

atio

n an

d de

velo

pmen

t of

cur

rent

leg

isla

tion

on t

he s

yste

m f

or t

he

man

agem

ent a

nd c

ontro

l of

publ

ic f

inan

ces,

the

cutti

ng o

f re

d ta

pe, a

nd th

e co

ordi

natio

n of

the

vario

us s

yste

ms

of n

atio

nal a

nd

fore

ign

publ

ic r

esou

rces

, ba

sed

on t

he ‘

sing

le a

udit’

prin

cipl

e. T

he b

ill a

lso

defin

es t

he r

espo

nsib

ility

of

spec

ific

bodi

es a

nd

pers

ons

for

the

intro

duct

ion,

mai

nten

ance

and

ref

inem

ent o

f co

ntro

l mec

hani

sms.

Spec

ifica

lly, t

his

is r

efle

cted

in th

e fo

llow

ing

area

s:

1. T

he a

pplic

atio

n of

3E

prin

cipl

es –

atta

inm

ent

of t

he o

ptim

al u

se o

f pu

blic

exp

endi

ture

whi

le c

ompl

ying

with

app

licab

le

legi

slat

ion.

2. S

ingl

e au

dit –

res

trict

ions

on

dupl

icat

e ch

ecks

and

the

adm

inis

trativ

e bu

rden

on

the

insp

ecte

d en

tity

and

the

insp

ectin

g en

tity,

th

ereb

y el

imin

atin

g in

cons

iste

ncy

betw

een

the

deci

sion

s of t

he g

rant

or a

nd th

e bo

dies

of f

inan

cial

adm

inis

tratio

n.

The

bill

also

inco

rpor

ates

the

follo

win

g re

com

men

datio

ns b

y th

e EC

A a

nd th

e Su

prem

e A

udit

Off

ice:

• im

prov

e co

ntro

l sys

tem

s;

• fo

cus

chec

ks o

n ve

rifyi

ng b

enef

its a

nd n

eces

sity

, an

d on

com

plia

nce

with

the

prin

cipl

es o

f ec

onom

y, e

ffic

ienc

y an

d ef

fect

iven

ess;

• do

not c

once

ntra

te so

lely

on

form

al e

rror

s, w

hich

bas

eles

sly

redu

ce a

pplic

ants

’ gra

nts;

• est

ablis

h be

tter-

qual

ity m

onito

ring

syst

ems w

ith a

stre

ss o

n de

liver

ing

resu

lts.

3. H

andl

ing

of fu

ndam

enta

l pro

blem

s ste

mm

ing

from

the

prac

tical

app

licat

ion

of th

e Fi

nanc

ial C

ontro

l Act

• the

tran

spos

ition

of D

irect

ive

2011

/85/

EU;

• the

tran

sfer

of r

espo

nsib

ility

for p

roce

edin

gs o

n fu

nd d

educ

tions

in re

spon

se to

bre

ache

s of b

udge

tary

dis

cipl

ine

to th

e gr

anto

rs;

• the

flex

ible

est

ablis

hmen

t of r

oles

in th

e pr

oces

s of e

cono

mic

man

agem

ent c

heck

s;

• the

rein

forc

emen

t and

exp

ansi

on o

f the

role

pla

yed

by in

tern

al a

uditi

ng;

• int

erna

l aud

iting

at s

ubor

dina

te o

rgan

isat

ions

by

thei

r fou

nder

;

141

• the

est

ablis

hmen

t of A

udit

Com

mitt

ees;

• ris

k m

anag

emen

t.

i) D

irect

ben

efits

In c

onne

ctio

n w

ith t

he a

dopt

ion

of t

he B

ill,

the

deci

sion

was

tak

en t

o ex

clud

e bo

dies

of

finan

cial

adm

inis

tratio

n (b

odie

s of

fin

anci

al a

dmin

istra

tion

will

prim

arily

foc

us o

n th

e au

ditin

g an

d m

anag

emen

t of

tax

reve

nues

) an

d to

tran

sfer

res

pons

ibili

ty f

or

proc

eedi

ngs o

n fu

nd d

educ

tions

in re

spon

se to

bre

ache

s of b

udge

tary

dis

cipl

ine

to th

e gr

anto

rs.

ii) In

dire

ct b

enef

its

iii)

The

inco

nsis

tenc

y of

dec

isio

ns b

y gr

anto

rs a

nd b

odie

s of

fin

anci

al a

dmin

istra

tion

resu

lts in

cos

ts to

the

cent

ral g

over

nmen

t bu

dget

or t

he b

udge

ts o

f loc

al g

over

nmen

t uni

ts (b

ecau

se th

e Eu

rope

an U

nion

refu

ses

to re

leas

e fu

nds

for r

eim

burs

emen

t). If

the

bill

is a

dopt

ed a

nd t

his

inco

nsis

tenc

y is

elim

inat

ed, t

here

will

arg

uabl

y be

sav

ings

for

the

cen

tral

gove

rnm

ent

budg

et a

nd t

he

budg

ets o

f loc

al g

over

nmen

t uni

ts.

Oth

er b

enef

its: I

n pr

actic

e, th

e in

nova

tion

of th

e pa

rt of

the

syst

em fo

r the

man

agem

ent a

nd c

ontro

l of p

ublic

fina

nces

rela

ting

to

the

orga

nisa

tion

of a

uditi

ng is

exp

ecte

d to

pav

e th

e w

ay fo

r the

eas

ier a

pplic

atio

n of

the

‘sin

gle

audi

t’ pr

inci

ple,

to m

ake

legi

slat

ion

clea

rer a

nd m

ore

trans

pare

nt, a

nd to

spee

d up

and

stre

amlin

e th

e w

hole

pro

cess

of c

ontro

l.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

;

Trai

ning

on

publ

ic a

id –

a p

ublic

con

tract

to s

elec

t an

accr

edite

d co

mpa

ny th

at w

ill d

eliv

er tr

aini

ng u

nder

the

Trai

ning

Sys

tem

for

the

2014

-202

0 Pr

ogra

mm

ing

Perio

d is

at t

he p

repa

rato

ry s

tage

. Pen

ding

the

sele

ctio

n of

a s

uppl

ier i

n te

nder

ing

proc

edur

e, a

d ho

c tra

inin

g, in

clud

ing

even

ts o

n ge

nera

l ex

ante

con

ditio

nalit

ies,

the

proc

edur

e fo

r whi

ch h

as b

een

subm

itted

to s

ectio

n m

anag

emen

t at

the

Min

istry

of

Reg

iona

l D

evel

opm

ent

(the

natio

nal

coor

dina

ting

body

), w

ill b

e he

ld.

Ther

e is

a p

roje

ct e

ncom

pass

ing

a Tr

aini

ng S

yste

m f

or t

he 2

014-

2020

Pro

gram

min

g Pe

riod,

und

er w

hich

it

will

be

poss

ible

to

hold

the

afo

rem

entio

ned

ad h

oc

train

ing

and

subs

eque

ntly

sel

ect

a su

pplie

r in

ten

derin

g pr

oced

ure.

Acc

ordi

ng t

o O

PTA

inf

orm

atio

n, t

his

proj

ect

shou

ld b

e ap

prov

ed sh

ortly

.

142

- In

early

201

6, th

ere

are

plan

s to

hold

ano

ther

sem

inar

on

publ

ic a

id, f

ocus

ing

in p

art o

n se

rvic

es o

f gen

eral

eco

nom

ic in

tere

st.

- A

wor

king

par

ty h

as b

een

esta

blis

hed

at t

he M

inis

try o

f R

egio

nal

Dev

elop

men

t (th

e na

tiona

l co

ordi

natin

g bo

dy)

to c

over

ar

rang

emen

ts f

or th

e ap

plic

atio

n of

rul

es o

n pu

blic

aid

. Thi

s w

orki

ng p

arty

rem

ains

act

ive.

The

pub

lic a

id w

orki

ng p

arty

, who

se

mem

bers

are

repr

esen

tativ

es o

f the

Off

ice

for t

he P

rote

ctio

n of

Com

petit

ion,

will

con

tinue

to re

spon

d to

pro

blem

s as

soci

ated

with

th

e im

plem

enta

tion

of r

ules

on

publ

ic a

id. A

t pre

sent

, it i

s fo

cusi

ng in

par

ticul

ar o

n co

mpl

ianc

e w

ith th

e in

form

atio

n ob

ligat

ion

rela

ted

to th

e in

trodu

ctio

n of

the

‘Cen

tral I

nfor

mat

ion

Syst

em’ f

rom

1 Ju

ly 2

016.

Q 7

.1.

In th

e 20

14-2

020

prog

ram

min

g pe

riod,

in k

eepi

ng w

ith th

e pr

efer

ence

s of

the

Euro

pean

Com

mis

sion

, the

Cze

ch R

epub

lic w

ill

mak

e br

oad

use

of si

mpl

ified

repo

rting

met

hods

for t

he E

SI fu

nds.

In re

latio

n to

pro

gram

mes

that

will

be

mak

ing

use

of si

mpl

ified

re

porti

ng m

etho

ds i

n th

e ne

w p

rogr

amm

ing

perio

d, t

hese

met

hods

will

con

cent

rate

on

the

conf

igur

atio

n of

fla

t-rat

e fin

anci

ng

(‘in

dire

ct c

osts

’) a

nd a

sta

ndar

d sc

ale

of u

nit c

osts

(‘un

it co

sts’

). Th

e ap

plic

atio

n of

this

met

hod

for s

impl

ifica

tion

in th

e re

porti

ng

of p

roje

ct e

xpen

ditu

re re

spon

ds in

par

ticul

ar to

the

posi

tive

expe

rienc

e ga

ined

in th

e pr

evio

us 2

007-

2013

pro

gram

min

g pe

riod.

Prog

ram

mes

und

er w

hich

sim

plifi

ed re

porti

ng m

etho

ds h

ave

been

/will

be

used

:

Ope

ratio

nal P

rogr

amm

e Em

ploy

men

t, m

anag

ed b

y th

e M

inis

try o

f Lab

our a

nd S

ocia

l Aff

airs

- uni

t cos

ts (E

SF)

- rat

e fo

r ind

irect

cos

ts (E

SF)

Ope

ratio

nal P

rogr

amm

e R

esea

rch,

Dev

elop

men

t and

Edu

catio

n, m

anag

ed b

y th

e M

inis

try o

f Edu

catio

n, Y

outh

and

Spo

rts

- uni

t cos

ts (E

SF)

- rat

e fo

r ind

irect

cos

ts (i

n ES

F pr

ojec

ts, a

nd p

oten

tially

als

o un

der t

he E

RD

F)

Ope

ratio

nal P

rogr

amm

e Pr

ague

– G

row

th P

ole

of th

e C

zech

Rep

ublic

, man

aged

by

Prag

ue C

ity H

all

- uni

t cos

ts (E

SF)

- rat

e fo

r ind

irect

cos

ts (E

SF)

All

sim

plifi

ed r

epor

ting

met

hods

are

des

crib

ed i

n th

e M

etho

dolo

gica

l G

uide

line

for

the

Elig

ibili

ty o

f Ex

pend

iture

and

the

143

Rep

ortin

g Th

ereo

f in

the

201

4-20

20 P

rogr

amm

ing

Perio

d, p

ublis

hed

by t

he M

inis

try o

f R

egio

nal

Dev

elop

men

t (th

e na

tiona

l co

ordi

natin

g bo

dy).

The

Min

istry

of

Reg

iona

l D

evel

opm

ent

(the

natio

nal

coor

dina

ting

body

) al

so c

oope

rate

s w

ith m

anag

ing

auth

oriti

es o

n th

e co

nfig

urat

ion

and

harm

onis

atio

n of

sim

plifi

ed re

porti

ng m

etho

ds a

mon

g th

e va

rious

man

agin

g au

thor

ities

.

Prop

osal

s for

furth

er si

mpl

ifica

tion:

The

appl

icat

ion

of si

mpl

ified

repo

rting

met

hods

to p

ublic

con

tract

s

A p

robl

em c

urre

ntly

fac

ing

all

man

agin

g au

thor

ities

is

that

th

e si

tuat

ion

rega

rdin

g th

e us

e of

sim

plifi

ed r

epor

ting

met

hods

in

proj

ects

ent

ailin

g se

lect

ion

proc

edur

e re

mai

ns u

ncle

ar. N

or h

as th

is s

ituat

ion

been

impr

oved

by

the

Com

mis

sion

’s v

ague

rep

ly,

durin

g a

publ

ic p

rocu

rem

ent s

emin

ar o

n 29

Oct

ober

201

5, to

a q

uest

ion

as to

whe

ther

sim

plifi

ed re

porti

ng m

etho

ds c

ould

als

o be

ap

plie

d to

the

perf

orm

ance

of

publ

ic c

ontra

cts.

The

Com

mis

sion

’s c

urre

nt p

ositi

on is

that

ther

e ar

e ce

rtain

indi

catio

ns w

here

all

actu

al e

xpen

ditu

re w

ithin

the

scop

e of

a p

ublic

con

tract

nee

ds to

be

chec

ked.

Thi

s m

eans

that

all

acco

untin

g do

cum

ents

mus

t be

reco

rded

in d

etai

l and

mai

ntai

ned

in th

e pr

ojec

t, an

d co

nseq

uent

ly p

roje

ct a

dmin

istra

tion

sim

plifi

catio

n pe

ters

out

for b

enef

icia

ries.

In t

his

resp

ect,

the

Com

mis

sion

nee

ds t

o be

scr

upul

ous

in s

tipul

atin

g th

at s

impl

ified

rep

ortin

g m

etho

ds c

an a

lso

be a

pplie

d to

pu

blic

con

tract

s.

Shor

teni

ng o

f the

dur

atio

n of

the

Com

mis

sion

’s a

ppro

val p

roce

dure

s

As

expl

aine

d ab

ove,

in

the

wak

e of

inf

orm

al d

ialo

gue,

whe

re t

he p

ropo

sal

of u

nit

cost

s w

as i

nfor

mal

ly a

ppro

ved

by t

he

Com

mis

sion

, it w

ill s

till t

ake

anot

her f

our m

onth

s fo

r the

cor

resp

ondi

ng d

eleg

atin

g ac

t to

be p

ublis

hed.

As

this

is a

maj

or p

robl

em

for m

anag

ing

auth

oriti

es, i

t is e

ssen

tial f

or th

e C

omm

issi

on to

shor

ten

the

dura

tion

of a

ppro

val p

roce

dure

s.

D

EN

MA

RK

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

144

CF:

0; N

ot a

pplic

able

Q 1

.2.

EAFR

D (i

mpa

ct in

dica

tors

dra

wn

up fo

r par

ticip

atin

g co

mpa

nies

): N

umbe

r of n

ew in

nova

tive

com

pani

es, N

umbe

r of n

ew g

row

th

com

pani

es, A

nnua

l fal

l in

parti

cipa

ting

com

pani

es’ e

nerg

y an

d m

ater

ial c

onsu

mpt

ion

ESF

(res

ult

indi

cato

rs f

or p

artic

ipat

ing

indi

vidu

als/

com

pani

es):

Num

ber

of s

urvi

ving

par

ticip

ant

com

pani

es,

Num

ber

of

parti

cipa

nts

who

bec

ome

self-

empl

oyed

, N

umbe

r of

job

s cr

eate

d in

par

ticip

atin

g co

mpa

nies

, N

umbe

r of

par

ticip

ants

in

empl

oym

ent,

incl

. sel

f em

ploy

ed, N

umbe

r of p

artic

ipan

ts w

ho re

ceiv

e fo

rmal

trai

ning

EAFR

D: T

he fo

llow

ing

impa

ct a

nd o

utpu

t ind

icat

ors

have

bee

n su

bmitt

ed in

rela

tion

to th

e fo

rthco

min

g pr

ogra

mm

e am

endm

ent

and

are

to b

e ap

prov

ed b

y th

e Eu

rope

an C

omm

issi

on in

that

con

nect

ion.

The

y ar

e th

eref

ore

subj

ect t

o th

e C

omm

issi

on’s

app

rova

l.

EMFF

, Res

ult i

ndic

ator

s:

EU p

riorit

y 1,

Spe

cific

obj

ectiv

e 1:

1.

Info

rmat

ion

abou

t an

d to

enc

oura

ge t

he r

educ

tion

of u

nwan

ted

catc

hes

and

land

ing

oblig

atio

ns, m

easu

red

in n

umbe

r of a

naly

ses a

nd p

ilot p

roje

cts,

Spec

ific

obje

ctiv

e 2:

2. E

xten

t of g

ood

ecol

ogic

al c

ondi

tion

achi

eved

, mea

sure

d in

km

of w

ater

cour

ses r

esto

red

to g

ood

ecol

ogic

al

cond

ition

; 3. M

ore

know

ledg

e of

fish

ing’

s im

pact

on

and

inte

ract

ion

with

the

mar

ine

ecos

yste

m, m

easu

red

in n

umbe

r of a

naly

ses

and

pilo

t pro

ject

s

EU p

riorit

y 2,

Spe

cific

obj

ectiv

e 2:

Cha

nge

in th

e am

ount

of o

rgan

ic a

quac

ultu

re p

rodu

ctio

n, m

easu

red

in to

ns

EU p

riorit

y 5,

Spe

cific

obj

ectiv

e 1:

Cha

nge

in th

e am

ount

of A

SC-c

ertif

ied

aqua

cultu

re p

rodu

ctio

n, m

easu

red

in to

ns

Spec

ific

obje

ctiv

e 2:

Em

ploy

men

t mai

ntai

ned,

mea

sure

d in

FTE

Q 1

.3.

Yes

;

The

Dan

ish

Bus

ines

s A

utho

rity

syst

emat

ical

ly c

olle

cts

data

on

outp

ut a

nd r

esul

ts/im

pact

fro

m a

ll EA

FRD

and

ESF

pro

ject

s, m

easu

red

usin

g co

mm

on in

dica

tors

and

pro

gram

me-

spec

ific

indi

cato

rs. E

xter

nal e

valu

atio

ns a

re c

arrie

d ou

t for

all

rela

tivel

y la

rge

proj

ects

(th

ose

that

rec

eive

DK

K 2

mill

ion

or m

ore

in E

U a

id).

How

ever

, th

ere

are

expe

cted

to

be r

elat

ivel

y fe

w c

ompl

eted

pr

ojec

ts to

mea

sure

and

eva

luat

e in

201

7.

145

EAFR

D a

nd E

MFF

: Den

mar

k ex

pect

s to

be a

ble

to p

rovi

de re

leva

nt d

ata

in a

ccor

danc

e w

ith th

e re

quire

men

ts o

f the

Reg

ulat

ion.

Q 2

.2.

No;

The

Aut

horit

y ha

s the

dat

a re

quire

d to

ans

wer

the

com

puls

ory

ques

tions

in E

GES

IF-1

5-00

15. T

he C

omm

issi

on h

as n

ot re

ques

ted

furth

er in

form

atio

n no

r oth

erw

ise

indi

cate

d th

at D

enm

ark’

s ans

wer

s wer

e un

satis

fact

ory.

Q 4

.1.

No.

Den

mar

k fo

llow

s the

Com

mis

sion

’s g

uide

lines

for f

inan

cial

cor

rect

ions

.

Q 5

.1.

Yes

;

The

Dan

ish

Bus

ines

s A

utho

rity,

whi

ch is

the

man

agin

g au

thor

ity fo

r EA

FRD

and

ESF

, has

pro

vide

d tra

inin

g on

pro

cure

men

t law

to

its

own

empl

oyee

s an

d th

ose

of th

e no

tifie

d bo

dies

(gr

owth

for

ums)

. The

man

agin

g au

thor

ity h

as a

lso

rein

forc

ed it

s in

tern

al

expe

rtise

by

furth

er t

rain

ing

som

e st

aff

to b

ecom

e sp

ecia

lists

in

proc

urem

ent

law

. M

oreo

ver,

it is

exp

licitl

y st

ated

in

the

aid

elig

ibili

ty r

ules

and

the

con

tract

s w

ith b

enef

icia

ries

that

the

pro

cure

men

t ru

les

mus

t be

fol

low

ed.

The

chan

ges

have

bee

n im

plem

ente

d fr

om th

e st

art o

f th

e 20

14–2

020

perio

d an

d no

pro

cure

men

t err

ors

have

bee

n id

entif

ied

as y

et in

the

refu

nd c

laim

s fr

om b

enef

icia

ries

that

hav

e be

en e

xam

ined

. It i

s th

eref

ore

not p

ossi

ble

at p

rese

nt to

judg

e w

heth

er th

ese

prev

entiv

e m

easu

res s

top

all p

rocu

rem

ent e

rror

s. A

ll re

fund

cla

ims a

re c

heck

ed b

y th

e m

anag

ing

auth

ority

to e

nsur

e th

ey c

ompl

y w

ith th

e pr

ocur

emen

t rul

es

befo

re p

aym

ent i

s mad

e.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

No;

No

syst

emic

issu

es h

ave

been

iden

tifie

d.

Q 7

.1.

The

Dan

ish

Bus

ines

s A

utho

rity

has

used

a n

umbe

r of t

he s

impl

ified

cos

t opt

ions

in it

s ai

d el

igib

ility

rule

s: c

ontin

uatio

n of

the

flat

rate

that

was

intro

duce

d in

201

1, c

ontin

ued

use

of a

nat

iona

l sta

ndar

d co

st o

ptio

n fo

r par

ticip

ant s

uppo

rt/ho

urly

pay

, and

use

of t

he

146

spec

ial f

lat r

ate

in E

SF A

rticl

e 14

for p

roje

cts

that

do

not r

ecei

ve S

tate

aid

. Fur

ther

mor

e, th

e m

anag

ing

auth

ority

has

mad

e us

e of

th

e po

ssib

ility

of e

mpl

oyin

g fla

t rat

es fr

om o

ther

EU

pro

gram

mes

, sin

ce H

oriz

on 2

020

rate

s ca

n be

use

d fo

r inn

ovat

ion

proj

ects

. Th

e D

anis

h B

usin

ess

Aut

horit

y ha

s th

us m

ade

use

of a

ll th

e re

leva

nt o

ppor

tuni

ties

in th

e re

gula

tions

, with

the

exce

ptio

n of

lum

p su

ms,

for w

hich

ther

e w

as n

ot c

onsi

dere

d to

be

suff

icie

nt d

ata

at p

rese

nt.

E

STO

NIA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

The

ones

agr

eed

in th

e O

pera

tiona

l Pro

gram

mes

.

Q 1

.3.

Yes

Q 2

.2.

Yes

Q 4

.1.

No

Q 5

.1.

Yes

;

In E

ston

ia t

he 1

st l

evel

con

trol

is q

uite

det

aile

d, e

spec

ially

in

the

area

of

publ

ic p

rocu

rem

ent.

In e

ssen

ce e

ach

proc

urem

ent

is ve

rifie

d ag

ains

t al

l of

the

pro

visi

ons

of t

he P

rocu

rem

ent

Act

. T

his

allo

ws

us t

o tra

ck d

own

the

maj

ority

of

proc

urem

ent

irreg

ular

ities

dur

ing

man

agem

ent v

erifi

catio

ns a

nd th

us e

xclu

de th

em fr

om c

ertif

ied

expe

nditu

re. C

onse

quen

tly th

e er

ror r

ate

has

147

been

qui

te lo

w in

rece

nt y

ears

.

Q 6

.1.

Yes

Q 6

.2.

Yes

;

A fe

w y

ears

ago

the

ince

ntiv

e ef

fect

was

not

resp

ecte

d in

seve

ral c

ases

, but

the

prob

lem

has

now

bee

n so

lved

.

Q 6

.3.

Yes

;

Add

ition

al re

-ver

ifica

tions

in th

e ar

ea o

f inc

entiv

e ef

fect

, a fe

w y

ears

ago

.

Q 7

.1.

Will

be

impl

emen

ted,

whe

re p

ossi

ble.

FI

NL

AN

D

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

No;

Not

in u

se.

Q 1

.2.

Add

ition

al p

erfo

rman

ce i

ndic

ator

s ca

n be

fou

nd i

n A

nnex

2 t

o Fi

nlan

d’s

prog

ram

min

g do

cum

ent

on t

he s

truct

ural

fun

d pr

ogra

mm

e, 'S

usta

inab

le G

row

th a

nd W

ork

2014

-202

0'.

Q 1

.3.

Yes

;

As

conc

erns

the

EA

FRD

, w

e ca

n in

dica

te h

ow a

ll m

easu

res

in t

he p

rogr

amm

e ha

ve b

een

laun

ched

. A

s re

gard

s th

e m

easu

res

148

laun

ched

in th

e ye

ars 2

014

and

2015

, we

can

desc

ribe

the

antic

ipat

ed im

pact

s and

whe

ther

the

obje

ctiv

es fo

r tho

se m

easu

res c

an b

e ac

hiev

ed i

n th

e 20

14-2

020

prog

ram

min

g pe

riod.

For

tec

hnic

al r

easo

ns,

the

impl

emen

tatio

n of

sev

eral

mea

sure

s w

as d

elay

ed.

Reg

ardi

ng th

ese,

onl

y co

mm

itmen

t dat

a w

ill b

e av

aila

ble.

Info

rmat

ion

rega

rdin

g th

e ef

fect

iven

ess o

f Stru

ctur

al F

und

prog

ram

me

mea

sure

s.

Q 2

.2.

No;

Fina

ncia

l ins

trum

ents

are

not

in p

lace

in th

e EM

FF. R

epor

ting

conc

erni

ng th

e St

ruct

ural

Fun

d da

ta fo

r the

pro

gram

min

g pe

riod

2014

-202

0 is

cur

rent

ly u

nder

way

.

Q 4

.1.

No

Q 5

.1.

No;

Rep

ly o

f the

Min

istry

of A

gric

ultu

re a

nd F

ores

try: A

s co

ncer

ns th

e ne

w p

rogr

amm

ing

perio

d, a

dmin

istra

tive

chec

ks h

ave

not y

et

begu

n.

Rep

ly o

f th

e M

inis

try o

f Em

ploy

men

t an

d th

e Ec

onom

y: A

dmin

istra

tive

chec

ks a

re c

arrie

d ou

t on

all

paym

ents

bef

ore

expe

nditu

res a

re c

ertif

ied

and

decl

ared

to th

e C

omm

issi

on. T

he e

rror

rate

has

rem

aine

d at

a lo

w le

vel i

n av

aila

ble

mea

sure

s.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

; St

ate

aid

rule

s will

be

take

n in

to a

ccou

nt a

t eac

h st

age

of th

e ve

rific

atio

n pr

oces

s.

Q 7

.1.

The

use

of si

mpl

ified

cos

t opt

ions

(SC

Os)

cou

ld b

e ap

plie

d as

a g

ener

al ru

le fo

r the

fina

ncin

g of

pro

ject

s. Th

e ac

tual

cos

t mod

el

will

be

used

onl

y in

exc

eptio

nal c

ases

, for

exa

mpl

e in

the

case

of t

echn

ical

ass

ista

nce

proj

ects

, pub

lic p

rocu

rem

ent p

roje

cts a

nd

149

inve

stm

ent p

roje

cts t

hat d

o no

t hav

e sa

lary

cos

ts.

FR

AN

CE

Q 1

.1.

FEA

DER

: Oui

FEA

MP:

Oui

FSE:

Oui

FED

ER: O

ui

FC: N

on; N

e s’

appl

ique

pas

Q 1

.2.

Pour

ce

qui c

once

rne

les i

ndic

ateu

rs d

e ré

alis

atio

n :

Cha

que

auto

rité

de g

estio

n a

la r

espo

nsab

ilité

de

son

prog

ram

me.

Dan

s ce

con

text

e, l

orsq

ue d

es i

ndic

ateu

rs d

e ré

alis

atio

n sp

écifi

ques

éta

ient

néc

essa

ires

pour

le c

adre

de

perf

orm

ance

, ces

indi

cate

urs

ont é

té in

tégr

és d

ans

le p

rogr

amm

e pa

r l’a

utor

ité d

e ge

stio

n el

le-m

ême.

Ces

ind

icat

eurs

son

t dè

s lo

rs c

ontra

ctua

lisés

, da

ns l

e ca

dre

du p

lan

d’év

alua

tion,

ave

c la

Com

mis

sion

eu

ropé

enne

et f

eron

t l’o

bjet

des

exa

men

s de

la p

erfo

rman

ce d

e 20

19 e

t de

2025

.

Il n’

est p

as p

révu

de

met

tre e

n pl

ace

des

indi

cate

urs

de p

erfo

rman

ce s

uppl

émen

taire

s ou

com

plém

enta

ires

des

prog

ram

mes

(au

se

ns in

dica

teur

s des

cad

res d

e pe

rfor

man

ce) a

u ni

veau

nat

iona

l.

Pour

ce

qui c

once

rne

les i

ndic

ateu

rs d

e ré

sulta

t :

La d

écis

ion

a ét

é pr

ise

au n

ivea

u na

tiona

l de

ne

pas

inté

grer

d’in

dica

teur

s de

rés

ulta

t da

ns l

es c

adre

s de

per

form

ance

des

pr

ogra

mm

es.

Q 1

.3.

Cet

te p

ossi

bilit

é dé

pend

de

la d

ate

à la

quel

le le

rée

xam

en à

mi-p

arco

urs

du c

adre

fin

anci

er p

luri

annu

el a

ura

lieu

: En

effe

t, le

s au

torit

és d

e ge

stio

n fo

urni

ront

leur

rapp

ort a

nnue

l de

mis

e en

œuv

re (R

AM

O) c

ompl

et e

n ju

in 2

017.

L’E

M d

oit f

ourn

ir un

rapp

ort

d’av

ance

men

t en

août

201

7. Il

sera

pos

sibl

e de

se se

rvir

de c

es in

form

atio

ns si

le c

alen

drie

r le

perm

et. L

es d

onné

es se

lon

le m

odèl

e dé

crit

dans

le

Règ

lem

ent

d'ex

écut

ion

(UE)

n °

101

1/20

14 d

e la

Com

mis

sion

du

22 s

epte

mbr

e 20

14 p

ourr

ont

égal

emen

t êt

re

150

com

mun

iqué

es.

Q 2

.2.

Oui

;

Un

grou

pe d

e tra

vail

dédi

é au

x in

stru

men

ts f

inan

cier

s et

réu

niss

ant

les

auto

rités

de

gest

ion

et l

es a

utor

ités

natio

nale

s co

mpé

tent

es a

été

of

ficie

llem

ent m

is e

n pl

ace

le 1

2 no

vem

bre

2015

. Sa

feui

lle d

e ro

ute

men

tionn

e la

néc

essi

té d

e su

ivre

l’ét

at d

’ava

ncem

ent d

e la

mis

e en

pla

ce

des

inst

rum

ents

à l’

éche

lle n

atio

nale

. Il a

été

éga

lem

ent r

appe

lé la

resp

onsa

bilit

é de

s au

torit

és d

e ge

stio

n de

faire

sui

vre

l’inf

orm

atio

n su

r les

in

stru

men

ts fi

nanc

iers

pou

r fac

ilite

r la

cons

olid

atio

n de

s don

nées

.

Un

tabl

eau

de b

ord

natio

nal v

a ai

nsi ê

tre p

rodu

it, su

r la

base

des

élé

men

ts c

onte

nus d

ans l

a co

mm

unic

atio

n du

gro

upe

de l’

EGES

IF.

Pour

mém

oire

à c

e st

ade,

auc

un i

nstru

men

t n’

a ét

é cr

éé e

t le

sui

vi a

été

réa

lisé

sur

la b

ase

du c

onte

nu p

révi

sion

nel

des

Prog

ram

mes

op

érat

ionn

els.

Q 3

.5.

Les

inst

ruct

ions

et p

rocé

dure

s na

tiona

les

ont é

té fi

nalis

ées

entre

201

2-20

13 (c

f not

e du

12

octo

bre

2012

sur

le c

ontrô

le d

u re

spec

t de

s m

arch

és p

ublic

s no

tam

men

t, no

te d

u 18

déc

embr

e 20

12 r

elat

ive

aux

cont

rôle

s ad

min

istra

tifs

(vis

ite s

ur p

lace

, fia

bilit

é du

de

man

deur

…),

note

du

20 m

ars

2013

app

orta

nt d

es p

réci

sion

s su

r le

car

actè

re r

aiso

nnab

le d

es c

oûts

,not

e du

02

octo

bre

2013

re

lativ

e au

x co

ntrô

les a

dmin

istra

tifs e

t con

trôle

s sur

pla

ce p

our l

es d

épen

ses d

e ré

mun

érat

ion,

not

e du

6 n

ovem

bre

2013

rela

tive

au

renf

orce

men

t du

cont

rôle

inte

rne

au s

ein

des

serv

ices

inst

ruct

eurs

etc

.) L'

appr

opria

tion

de c

es d

iffér

ente

s no

tes

et in

stru

ctio

ns a

du

ensu

ite ê

tre m

ise

en œ

uvre

dan

s le

s pr

océd

ures

de

cont

rôle

s de

s se

rvic

es i

nstru

cteu

rs. P

lusi

eurs

réu

nion

s d'

info

rmat

ion

ont

été

mis

es e

n pl

ace

pour

aid

er le

s ser

vice

s ins

truct

eurs

dan

s l'ap

prop

riatio

n de

ces

diff

éren

tes n

otes

.

L’or

igin

e de

ces

irré

gula

rités

vie

nt, p

our

une

part

non

négl

igea

ble,

du

nive

au d

e co

mpl

exité

lié

dire

ctem

ent a

ux p

rocé

dure

s de

pa

ssat

ion

de m

arch

és p

ublic

s. En

eff

et, i

l ex

iste

un

volu

me

impo

rtant

d’a

ctes

lég

isla

tifs

tant

au

nive

au e

urop

éen

qu’a

u ni

veau

na

tiona

l qui

peu

t con

duire

à u

ne re

lativ

e m

écon

nais

sanc

e de

ceu

x-ci

et q

ui n

éces

site

une

exp

ertis

e et

une

maî

trise

dan

s la

mis

e en

pl

ace

des p

rocé

dure

s de

mar

chés

pub

lics.

Q 3

.6.

L’or

donn

ance

du

23 j

uille

t 20

15 r

elat

ive

aux

mar

chés

pub

lics

trans

pose

, en

dro

it fr

ança

is,

les

deux

dire

ctiv

es e

urop

éenn

es

2014

/24/

UE

et 2

014/

25/U

E du

26

févr

ier

2014

afin

de

rass

embl

er, a

u se

in d

’un

corp

us j

urid

ique

uni

que,

les

règ

les

com

mun

es

appl

icab

les

aux

cont

rats

qua

lifié

s de

«m

arch

és p

ublic

s».

L’or

donn

ance

ent

rera

en

vigu

eur l

orsq

ue le

s dé

cret

s d’

appl

icat

ion

sero

nt

publ

iés

et a

u pl

us ta

rd le

18

avril

201

6. L

e pr

inci

pal o

bjec

tif d

e ce

tte o

rdon

nanc

e es

t de

rass

embl

er, a

u ni

veau

légi

slat

if et

en

un

seul

text

e, le

s règ

les a

pplic

able

s aux

con

trats

con

sidé

rés c

omm

e de

s « m

arch

és p

ublic

s » a

u se

ns d

es d

irect

ives

eur

opée

nnes

.

Par a

illeu

rs, l

e pr

ogra

mm

e na

tiona

l d’a

ssis

tanc

e te

chni

que

2014

-202

0 pr

évoi

t de

finan

cer d

es fo

rmat

ions

des

tinée

s aux

aut

orité

s de

gest

ion,

de

certi

ficat

ion

et d

’aud

it de

s pr

ogra

mm

es s

ur d

iffér

ente

s th

émat

ique

s do

nt le

s m

arch

és p

ublic

s. D

ans

ce c

adre

, un

grou

pe

151

de tr

avai

l au

nive

au n

atio

nal a

été

mis

en

plac

e af

in d

’org

anis

er la

mis

e en

œuv

re d

e ce

s fo

rmat

ions

not

amm

ent d

ans

les

dom

aine

s su

ivan

ts :

- les

règl

es a

pplic

able

s en

mat

ière

de

mar

ché

publ

ics

- les

prin

cipa

les i

rrég

ular

ités c

onst

atée

s et l

es c

orre

ctio

ns fi

nanc

ière

s à a

ppliq

uer

- exe

rcic

es p

ratiq

ues d

e co

ntrô

le d

e m

arch

és p

ublic

s

Les

aut

orité

s fr

ança

ises

sou

haite

nt s

igna

ler l

’eff

ort d

’info

rmat

ion

et d

e di

ffus

ion

fait

au p

rofit

des

aut

orité

s de

ges

tion

en m

atiè

re

de m

arch

és p

ublic

s. D

’une

par

t, le

gui

de é

tabl

i par

la C

omm

issi

on a

été

diff

usé

larg

emen

t aup

rès

des

auto

rités

de

gest

ion.

D’a

utre

pa

rt, u

n si

te in

tern

et d

édié

à la

com

man

de p

ubliq

ue p

iloté

par

la d

irect

ion

des a

ffai

res j

urid

ique

s du

min

istè

re d

es fi

nanc

es a

été

mis

en

pla

ce.

Ce

site

act

ualis

e to

us l

es é

lém

ents

con

cern

ant

les

mar

chés

pub

lics

ains

i qu

e to

utes

les

inf

orm

atio

ns n

éces

saire

s et

pond

ant a

ux a

djud

icat

eurs

. Il f

ait é

gale

men

t réf

éren

ce a

u gu

ide

d’or

ient

atio

n à

dest

inat

ion

des

prat

icie

ns «

com

men

t évi

ter

les

erre

urs l

es p

lus f

réqu

ente

s com

mis

es d

ans l

e ca

dre

de p

roje

ts f

inan

cés

par

les

Fond

s stru

ctur

els

et d

’inve

stis

sem

ent e

urop

éens

»

en d

ate

de n

ovem

bre

2015

. Enf

in, l

a pl

atef

orm

e du

CG

ET p

erm

et a

ux p

ratic

iens

de

se r

enco

ntre

r et

de

soul

ever

des

pro

blèm

es

com

mun

s voi

re d

’éla

bore

r des

maq

uette

s et l

iste

s de

cont

rôle

s pou

r l’a

pplic

atio

n de

s règ

les e

n m

atiè

re d

e m

arch

és p

ublic

s.

Dep

uis

2014

, da

ns l

e co

ntex

te d

e ré

gion

alis

atio

n du

Fea

der,

afin

de

pour

suiv

re l

a dé

mar

che

de s

écur

isat

ion

des

dépe

nses

, de

no

uvel

les

inst

ance

s de

gou

vern

ance

de

la m

ise

en œ

uvre

opé

ratio

nnel

le d

u Fe

ader

ont

été

ins

titué

es e

t po

ursu

iven

t le

s tra

vaux

en

gagé

s pré

céde

mm

ent.

Ain

si, t

rois

Com

ités

opér

atio

nnel

s (C

OM

OP)

ont

été

cré

és a

ssoc

iant

l’Ét

at, l

es ré

gion

s, au

torit

és d

e ge

stio

n et

l’or

gani

sme

paye

ur

afin

d’a

bord

er le

s que

stio

ns d

e m

ise

en œ

uvre

de

la p

rogr

amm

atio

n Fe

ader

dan

s ses

asp

ects

opé

ratio

nnel

s et t

echn

ique

s :

-Le

CO

MO

P ho

rs S

IGC

: ce

com

ité o

péra

tionn

el e

st n

otam

men

t cha

rgé

de s

uivr

e l'é

volu

tion

de l'

inst

rum

enta

tion

des

aide

s ho

rs

SIG

C a

insi

que

des

pro

cédu

res (

man

uels

, for

mul

aire

s, m

odes

opé

rato

ires,

conv

entio

ns d

e pa

iem

ent…

) ;

- Le

CO

MO

P SI

GC

qui

est

cha

rgé

nota

mm

ent d

e su

ivre

l'év

olut

ion

de l'

inst

rum

enta

tion

et d

e la

mis

e en

œuv

re o

péra

tionn

elle

des

m

esur

es S

IGC

du

Fead

er ;

- -

Le C

OM

OP

audi

ts e

t con

trôle

s qu

i est

cha

rgé

nota

mm

ent d

e m

utua

liser

des

rec

omm

anda

tions

des

co

rps

de c

ontrô

le e

t d’

audi

ts,

entre

les

aut

orité

s de

ges

tion,

de

déve

lopp

er e

t m

utua

liser

les

pra

tique

s su

r le

con

trôle

int

erne

, d'

élab

orer

des

con

sign

es r

elat

ives

aux

mod

alité

s d'

appl

icat

ion

des

poin

ts d

e co

ntrô

les

adm

inis

tratif

s et

le

cas

éché

ant

d'ab

orde

r ce

rtain

s asp

ects

en

lien

avec

la c

ampa

gne

de c

ontrô

les s

ur p

lace

.

152

Q 4

.1.

La C

ICC

a é

mis

le 3

mar

s 20

14 u

ne re

com

man

datio

n au

x au

torit

és d

e ge

stio

n et

de

cont

rôle

vis

ant à

act

ualis

er la

list

e de

con

trôle

M

arch

és p

ublic

s con

form

émen

t à la

déc

isio

n de

la C

omm

issi

on e

urop

éenn

e du

19/

12/2

013

– C

(201

3) 9

527

Q 5

.1.

Oui

;

Dès

201

3, le

s au

torit

és n

atio

nale

s on

t mis

en

plac

e un

gro

upe

de tr

avai

l int

erfo

nds

porta

nt s

ur la

règ

lem

enta

tion,

la g

estio

n et

le

cont

rôle

des

fon

ds e

urop

éens

stru

ctur

els

et d

’inve

stis

sem

ent.

Com

posé

d’a

utor

ités

de g

estio

n 07

-13

et 1

4-20

, de

s m

inis

tère

s co

ordi

nate

urs,

et d

es c

orps

de

cont

rôle

, ce

gro

upe

de t

rava

il se

réu

nit

régu

lière

men

t, et

vis

e à

sécu

riser

la

gest

ion

des

fond

s eu

ropé

ens e

n Fr

ance

.

Plus

ieur

s do

cum

ents

de

trava

il on

t été

pro

duits

ou

sont

en

cour

s de

fin

alis

atio

n da

ns le

cad

re d

e ce

gro

upe.

A ti

tre d

’illu

stra

tion,

pe

uven

t être

cité

s : d

es tr

ames

com

mun

es d

es d

ocum

ents

de

gesti

on (d

eman

de d

e su

bven

tion,

rapp

ort d

’inst

ruct

ion,

act

e at

tribu

tif

de l’

aide

, dem

ande

de

paie

men

t…),

un g

uide

rela

tif a

u su

ivi,

à la

ges

tion

et a

u co

ntrô

le d

es F

ESI,

des f

iche

s mét

ier p

our a

ssis

ter l

es

serv

ices

inst

ruct

eurs

et l

es a

utor

ités

de g

estio

n, le

s te

xtes

enc

adra

nt l’

élig

ibili

té d

es d

épen

ses…

L’e

nsem

ble

de c

es tr

avau

x vi

sent

à

appo

rter

des

outil

s d’

aide

à la

mis

e en

œuv

re e

t à la

séc

uris

atio

n de

s fo

nds

en F

ranc

e. I

ls p

ourr

ont ê

tre u

tilem

ent c

ompl

étés

en

fonc

tion

de n

ouve

aux

beso

ins i

dent

ifiés

, ou

de l’

évol

utio

n de

la rè

glem

enta

tion.

En

asso

cian

t le

plus

en

amon

t pos

sibl

e le

s cor

ps d

e co

ntrô

le (

auto

rité

de c

ertif

icat

ion

et d

’aud

it),

l’obj

ectif

est

d’é

tabl

ir un

cad

re c

omm

un d

’exi

genc

es e

t de

vig

ilanc

es p

our

la

prog

ram

mat

ion

à ve

nir.

Par a

illeu

rs, d

es é

tude

s pe

uven

t être

con

duite

s (m

ise

en p

lace

des

coû

ts s

impl

ifiés

…) e

t des

form

atio

ns p

euve

nt ê

tre d

ispe

nsée

s, en

fo

nctio

n de

s bes

oins

exp

rimés

par

les a

utor

ités d

e ge

stio

n (e

x : f

orm

atio

n su

r les

aid

es d

’Eta

t, su

r les

mar

chés

pub

lics…

).

Q6.

1.O

ui

Q 6

.2.

Oui

;

la C

ICC

, aut

orité

d’a

udit

n’a

pas

déte

cté

d’irr

égul

arité

de

natu

re s

ysté

miq

ue. D

eux

cas

de n

on-r

espe

ct d

e ré

gim

es d

’aid

es d

’Eta

t on

t été

con

stat

és :

l’une

, dan

s le

dom

aine

de

l’env

ironn

emen

t (er

reur

dan

s le

cal

cul d

e l’a

ssie

tte d

e l’a

ide)

et l

’aut

re, p

our u

ne a

ide

acco

rdée

dan

s le

cad

re d

’un

cont

rat

de c

rédi

t-bai

l po

ur l

’acq

uisi

tion

de m

achi

nes

(non

rép

ercu

ssio

n de

l’a

ide

perç

ue v

ers

le

baill

eur.

Q 6

.3.

Oui

;

Le 2

6 m

ars

2015

, le

min

istre

de

l’int

érie

ur a

adr

essé

une

let

tre a

ux s

ecré

taire

s gé

néra

ux a

ux a

ffai

res

régi

onal

es (

SGA

R)

et a

u

153

Com

mis

saria

t gé

néra

l à

l’éga

lité

des

terr

itoire

(C

GET

) ra

ppel

ant

nota

mm

ent

les

disp

ositi

ons

de l

a ci

rcul

aire

du

6 m

ai 2

011

conc

erna

nt l

e re

nfor

cem

ent

des

proc

édur

es d

e ge

stio

n et

de

cont

rôle

des

pro

gram

mes

opé

ratio

nnel

s FE

DER

200

7-20

13,

dont

l’a

nnex

e A

con

cern

ait s

péci

fique

men

t la

ques

tion

des a

ides

d’E

tat

S’ag

issa

nt d

e la

pro

gram

mat

ion

2014

-202

0, le

CG

ET s’

est e

ngag

é da

ns l’

acco

rd d

e pa

rtena

riat à

:

- Ela

bore

r une

circ

ulai

re re

lativ

e à

la n

ouve

lle ré

glem

enta

tion

des a

ides

d’E

tat p

our l

a pé

riode

201

4-20

20. C

ette

nou

velle

circ

ulai

re

est

en c

ours

de

réda

ctio

n, e

lle r

appe

llera

la

défin

ition

de

la n

otio

n d’

aide

, pr

ésen

tera

les

nou

veau

x te

xtes

eur

opée

ns e

t le

s pr

inci

pale

s rè

gles

de

com

patib

ilité

des

aid

es d

’Eta

t et e

xpliq

uera

les

diffé

rent

es r

ègle

s pr

océd

ural

es li

ées

à la

rég

lem

enta

tion

des

aide

s d’E

tat.

- M

ettre

en

œuv

re u

n pl

an n

atio

nal

de f

orm

atio

n à

dest

inat

ion

des

auto

rités

de

gest

ion,

de

cont

rôle

et

de c

ertif

icat

ion.

Les

fo

rmat

ions

ont

déb

uté

et 1

00 p

erso

nnes

ont

déj

à ét

é fo

rmée

s. C

es p

erso

nnes

ser

ont e

n m

esur

e de

réal

iser

ens

uite

des

form

atio

ns e

n in

tern

e gr

âce

à un

e di

ffus

ion

grat

uite

et a

cces

sibl

e à

tous

d’u

n ki

t péd

agog

ique

com

pren

ant l

es su

ppor

ts d

e fo

rmat

ion,

une

FA

Q, u

n gl

ossa

ire e

t des

cas

pra

tique

s.

- Cré

er u

n ré

seau

d’e

xper

ts ré

gion

aux

sur l

a ré

glem

enta

tion

des

aide

s d’

Etat

. Ce

grou

pe s

’est

réun

i pou

r la

prem

ière

fois

en

juill

et

2014

, il

regr

oupe

des

rep

rése

ntan

ts d

es m

inis

tère

s, de

s co

nsei

ls r

égio

naux

, des

ass

ocia

tions

de

colle

ctiv

ités

terr

itoria

les

et d

es

préf

ectu

res d

e ré

gion

. Ce

grou

pe d

e tra

vail

perm

et d

e m

ettre

en

œuv

re la

régl

emen

tatio

n 20

14-2

020

au n

ivea

u na

tiona

l (él

abor

atio

n de

rég

imes

d’a

ides

) et

d’o

rgan

iser

des

éch

ange

s de

bon

nes

prat

ique

s (p

rodu

ctio

n de

not

es d

’inte

rpré

tatio

n et

de

guid

es

mét

hodo

logi

ques

).

- C

réer

un

site

uni

que

dédi

é au

x ai

des

d’Et

at s

ur l

e si

te E

urop

e en

Fra

nce

afin

de

satis

faire

aux

nou

velle

s ob

ligat

ions

de

trans

pare

nce

impo

sées

par

la C

omm

issi

on e

urop

éenn

e

Q 7

.1.

Afin

d’a

ider

les

auto

rités

de

gest

ion

dans

la m

ise

en p

lace

des

opt

ions

de

coût

s si

mpl

ifiés

, le

Com

mis

saria

t gén

éral

à l’

égal

ité d

es

terr

itoire

s –(

CG

ET)

a la

ncé

une

étud

e vi

sant

prin

cipa

lem

ent

à of

frir

une

pres

tatio

n d’

appu

i m

étho

dolo

giqu

e au

x au

torit

és d

e ge

stio

n vo

lont

aire

s af

in d

e co

nstru

ire d

es m

étho

dolo

gies

de

coût

s si

mpl

ifiés

(ba

rèm

e st

anda

rd d

e co

ûts

unita

ires,

mon

tant

fo

rfai

taire

dan

s la

limite

de

100

000

euro

s de

cont

ribut

ions

pub

lique

s) u

tilis

able

s dan

s le

cadr

e de

la n

ouve

lle p

rogr

amm

atio

n 20

14-

2020

. Cet

te o

péra

tion

perm

ettra

eff

ectiv

emen

t aux

aut

orité

s de

ges

tion

des

prog

ram

mes

d’u

tilis

er c

oncr

ètem

ent l

a pr

océd

ure

des

coût

s si

mpl

ifiés

dan

s le

cad

re d

e pr

ojet

s co

finan

cés

par l

es fo

nds

euro

péen

s st

ruct

urel

s et

d’in

vest

isse

men

t afin

d’a

llége

r la

char

ge

adm

inis

trativ

e de

s bén

éfic

iaire

s.

Tout

efoi

s, le

s aut

orité

s fra

nçai

ses r

egre

ttent

l’ab

senc

e de

con

firm

atio

n pa

r la

Com

mis

sion

eur

opée

nne

de la

pos

sibi

lité

d’ut

ilise

r les

co

ûts

sim

plifi

és a

vec

la r

égle

men

tatio

n de

s ai

des

d’Et

at. E

n ef

fet,

les

optio

ns d

e co

ûts

sim

plifi

és o

nt p

our

obje

ctif

de s

impl

ifier

154

l’util

isat

ion

des

fond

s eu

ropé

ens,

or le

s rè

gles

d’a

ides

d’E

tat s

ont l

arge

men

t app

liqué

es lo

rs d

e l’o

ctro

i de

fond

s eu

ropé

ens.

Ce

refu

s aur

ait d

es c

onsé

quen

ces n

égat

ives

sur l

es p

ossi

bilit

és d

’util

isat

ion

des o

ptio

ns d

e co

ûts s

impl

ifiés

.

Pour

le

prog

ram

me

natio

nal

FSE

« E

mpl

oi e

t in

clus

ion

en m

étro

pole

» e

t le

pro

gram

me

natio

nal

IEJ

au t

itre

desq

uels

la

Dél

égat

ion

géné

rale

à l’

empl

oi e

t à la

form

atio

n pr

ofes

sion

nelle

(DG

EFP)

est

aut

orité

de

gest

ion,

cel

le-c

i rec

ourt

mas

sive

men

t aux

ta

ux fo

rfai

taire

s qu

i ne

néce

ssite

nt a

ucun

e ju

stifi

catio

n pr

éala

ble

(soi

t qu’

ils a

ient

été

pré

vus

par l

es rè

glem

ents

, soi

t qu’

il s’

agis

se

de ré

utili

ser d

es ta

ux ju

stifi

és s

ur la

pro

gram

mat

ion

préc

éden

te).

Ain

si, 3

taux

forf

aita

ires

sont

dis

poni

bles

dan

s l’o

util

de g

estio

n él

etro

niqu

e «

Ma

dém

arch

e FS

E ».

En o

utre

, apr

ès p

lus

d’un

an

d’éc

hang

es a

vec

la C

omm

issi

on e

urop

éenn

e, la

DG

EFP

a dé

fini u

n ba

rèm

e st

anda

rd d

e co

ût u

nita

ire

pour

un

disp

ositi

f por

té p

ar l’

Etat

et c

ofin

ancé

par

le F

SE «

la G

aran

tie J

eune

s »

et v

alid

é pa

r l’U

E au

titre

de

la p

rocé

dure

d’a

cte

délé

gué

(art.

14§

1 du

règl

emen

t (U

E) n

°130

4/20

13).

G

ER

MA

NY

Q 1

.1.

ELER

: Yes

EMFF

: Yes

ESF:

Yes

EFR

E: Y

es

KF:

Yes

Q 1

.2.

EAFR

D: T

he 2

014-

2020

rura

l dev

elop

men

t pla

n fo

r Sax

ony-

Anh

alt c

onta

ins t

hree

alte

rnat

ive

indi

cato

rs, n

amel

y P2

– n

umbe

r of

proj

ects

, P3

– nu

mbe

r of b

enef

icia

ries (

publ

ic in

stitu

tions

) and

P5

– to

tal a

gric

ultu

re a

nd fo

rest

ry a

rea

adm

inis

tere

d un

der t

he

prom

otio

n sc

hem

e fo

r car

bon

capt

ure

and

stor

age,

exp

ress

ed in

hec

tare

s (E5

). To

mea

sure

the

spec

ific

effe

cts o

f sub

-mea

sure

s with

in

a fe

dera

l sta

te, s

uita

ble

indi

cato

rs a

re u

sed

whe

re n

eces

sary

in th

e re

porti

ng fr

amew

ork.

ER

DF:

Sin

ce th

e Lä

nder

are

resp

onsi

ble

for t

he E

RD

F in

Ger

man

y, a

dditi

onal

and

com

plem

enta

ry p

erfo

rman

ce in

dica

tors

are

de

fined

for e

ach

Ope

ratio

nal P

rogr

amm

e (e

.g. p

rivat

e R

&D

exp

endi

ture

as a

per

cent

age

of G

DP,

the

expo

rts-to

-GD

P ra

tio, g

ross

va

lue

adde

d pe

r em

ploy

ed p

erso

n or

the

num

ber o

f fun

ded

univ

ersi

ties a

nd re

sear

ch e

stab

lishm

ents

). Th

e al

loca

tion

of th

e pe

rfor

man

ce re

serv

e, a

nd h

ence

the

desc

riptio

n of

the

perf

orm

ance

fram

ewor

k, is

als

o ef

fect

ed a

t the

leve

l of t

he O

pera

tiona

l

155

Prog

ram

mes

. The

re is

no

natio

nal p

erfo

rman

ce re

serv

e in

Ger

man

y an

d th

eref

ore

no n

atio

nal p

erfo

rman

ce fr

amew

ork.

Fe

dera

l ESF

Ope

ratio

nal P

rogr

amm

e: S

even

add

ition

al p

rogr

amm

e-sp

ecifi

c ou

tput

indi

cato

rs a

nd 2

8 ad

ditio

nal p

rogr

amm

e-sp

ecifi

c re

sult

indi

cato

rs w

ere

esta

blis

hed

for t

he 2

014-

2020

ESF

pro

gram

min

g pe

riod.

Q 1

.3.

Yes

; EA

FRD

: By

the

mid

-term

revi

ew o

f the

MFF

for 2

014-

2020

, it i

s est

imat

ed th

at su

ffic

ient

info

rmat

ion

will

be

avai

labl

e on

any

pe

rsis

tent

ly h

igh

erro

r rat

es fo

r ind

ivid

ual r

ural

dev

elop

men

t pla

ns. T

he c

onte

nt o

f the

info

rmat

ion

requ

ired

for a

naly

sis b

y th

e C

omm

issi

on w

ill b

e ta

ilore

d to

the

Com

mis

sion

’s sp

ecifi

c st

ipul

atio

ns.

Fede

ral E

SF O

P: M

ater

ial a

nd fi

nanc

ial d

ata

for p

erfo

rman

ce a

naly

sis o

f the

fede

ral O

P ar

e av

aila

ble

from

the

impl

emen

tatio

n re

ports

. N

o;

ERD

F: It

is n

ot y

et p

ossi

ble

to p

rovi

de a

dire

ct a

nsw

er to

this

que

stio

n. A

s thi

ngs s

tand

, the

des

igna

tion

of th

e au

thor

ities

and

of t

he

man

agem

ent a

nd c

ontro

l sys

tem

s sho

uld

be c

ompl

eted

in 2

016.

In v

iew

of t

he re

cast

ing

of th

e sy

stem

s and

the

com

plex

ity o

f the

ru

les (

Reg

ulat

ion,

del

egat

ed a

nd im

plem

entin

g le

gisl

ativ

e ac

ts, g

uide

lines

, etc

.) th

ere

are

likel

y to

be

cons

ider

able

del

ays i

n ca

lls fo

r fu

nds c

ompa

red

with

the

prev

ious

per

iod.

In m

ost o

f the

Län

der,

the

maj

ority

of p

roje

cts w

ere

not l

aunc

hed

until

201

5. A

lthou

gh

proj

ects

can

be

pref

inan

ced

from

nat

iona

l fun

ds o

r adv

ance

s, m

ost o

f the

mul

ti-an

nual

inve

stm

ent p

roje

cts w

ill n

ot h

ave

prod

uced

an

y ta

ngib

le re

sults

yet

.

Q 2

.2.

Yes

;

ERD

F: T

he re

ports

on

the

indi

vidu

al O

pera

tiona

l Pro

gram

mes

for t

he 2

007-

2013

per

iod

are

base

d on

the

tem

plat

e fo

r Fin

anci

al

Engi

neer

ing

Inst

rum

ents

ope

ratio

ns im

plem

ente

d w

ithou

t a h

oldi

ng fu

nd; w

here

fina

ncia

l ins

trum

ents

co-

finan

ced

from

the

ERD

F ar

e is

sued

, the

repo

rts w

ill b

e fo

rwar

ded

to th

e C

omm

issi

on w

ith th

e an

nual

impl

emen

tatio

n re

ports

. At t

he C

omm

issi

on’s

requ

est,

deta

ils o

n fin

anci

al in

stru

men

ts in

the

2014

ann

ual r

epor

ts fo

r som

e Lä

nder

, suc

h as

Mec

klen

burg

-Wes

tern

Pom

eran

ia, w

ere

supp

lem

ente

d w

ith in

form

atio

n on

the

num

ber o

f loa

n ag

reem

ents

con

clud

ed w

ith b

enef

icia

ries.

For t

he n

ew p

rogr

amm

ing

perio

d,

repo

rts w

ill b

e ba

sed

on th

e G

uida

nce

Not

e on

repo

rting

on

finan

cial

inst

rum

ents

. To

this

end

, the

IT a

nd m

onito

ring

syst

ems f

or

finan

cial

inst

rum

ents

will

be

adap

ted

to m

eet t

he n

ew re

quire

men

ts, a

nd th

e qu

ality

of d

ata

will

be

revi

ewed

and

, whe

re n

eces

sary

, im

prov

ed.

Fede

ral E

SF O

P: In

the

annu

al im

plem

enta

tion

repo

rt, re

porti

ng o

n th

e pr

ogra

mm

e co

nten

t is n

ow li

kew

ise

base

d on

the

pres

crib

ed

tem

plat

e (s

ee E

RD

F re

ply

abov

e). R

epor

ting

for t

he 2

014-

2020

per

iod

will

be

in a

ccor

danc

e w

ith Im

plem

entin

g R

egul

atio

n

156

821/

2014

. In

the

futu

re th

e re

leva

nt d

ata

field

s for

repo

rting

will

be

reco

rded

ele

ctro

nica

lly a

nd fo

rm th

e ba

sis o

f the

repo

rts.

No;

EAFR

D: T

here

is n

o ne

ed to

repo

rt on

fina

ncia

l ins

trum

ents

, as n

o fin

anci

al in

stru

men

ts h

ave

been

pro

gram

med

.

Q 3

.3.

No

resp

onse

Q 3

.4.

The

resp

onsi

ble

auth

oriti

es p

oint

out

that

the

Com

mis

sion

alre

ady

poss

esse

s the

requ

este

d in

form

atio

n on

thes

e qu

estio

ns.

Q 3

.5.

This

was

an

extre

mel

y co

mpl

ex in

divi

dual

cas

e in

one

spec

ific

build

ing

proj

ect.

Q 3

.6.

The

resp

onsi

ble

auth

oriti

es p

oint

out

that

the

Com

mis

sion

alre

ady

poss

esse

s the

requ

este

d in

form

atio

n.

Q 4

.1.

No

Q 5

.1.

Yes

; ER

DF:

Am

ong

the

mai

n m

easu

res f

or th

e av

oida

nce

of e

rror

s rel

atin

g to

pro

cure

men

t are

mor

e sy

stem

atic

on-

the-

spot

insp

ectio

ns

and

dedi

cate

d tra

inin

g co

urse

s for

inte

rmed

iate

bod

ies,

revi

sion

of c

heck

lists

for o

n-th

e-sp

ot in

spec

tions

, inc

reas

es in

man

ning

le

vels

, etc

. Exa

mpl

es in

clud

e ad

aptin

g in

stru

ctio

ns fo

r fun

ding

man

agem

ent a

nd sp

ellin

g th

em o

ut in

gre

ater

det

ail f

or in

term

edia

te

bodi

es, c

ontin

uing

to d

evel

op a

nd su

pple

men

ting

chec

klis

ts fo

r ins

pect

ion

proc

edur

es a

nd in

crea

sing

the

effe

ctiv

enes

s of o

n-th

e-sp

ot

insp

ectio

ns. I

n so

me

Länd

er th

e m

etho

ds fo

r sel

ectin

g pr

ojec

ts to

und

ergo

on-

the-

spot

insp

ectio

ns h

ave

been

alte

red,

so th

at th

e fo

cus i

s now

on

proj

ects

with

the

pote

ntia

l for

pro

cure

men

t-rel

ated

err

ors a

nd o

n la

rge-

scal

e pr

ojec

ts, i

n w

hich

pro

cure

men

ts

exce

edin

g th

e th

resh

old

may

be

requ

ired.

In m

any

Länd

er, c

ompl

ianc

e w

ith p

ublic

pro

cure

men

t rul

es is

ver

ified

bef

ore

fund

s are

pa

id o

ut to

the

rele

vant

ben

efic

iary

. In

som

e ca

ses,

new

com

pute

rised

pro

cedu

res h

ave

been

dev

elop

ed w

hich

requ

ire b

enef

icia

ries t

o tra

nsm

it th

e re

leva

nt c

ore

info

rmat

ion

on th

e co

mpl

eted

pro

cure

men

ts b

efor

e fu

nds a

re p

aid

out.

N

o;

Fede

ral E

SF O

P: T

he fe

dera

l ESF

man

agin

g au

thor

ity p

osse

sses

wha

t are

ess

entia

lly p

rove

n an

d ef

fect

ive

man

agem

ent a

nd c

ontro

l sy

stem

s.

157

This

is b

orne

out

by

the

annu

al c

ontro

l rep

orts

subm

itted

by

the

ESF

audi

t aut

horit

y un

der A

rticl

e 62

(1)(

d)(i)

of R

egul

atio

n (E

C) N

o 10

83/2

006

in re

spec

t of t

he fe

dera

l Eur

opea

n So

cial

Fun

d pr

ogra

mm

es d

urin

g th

e 20

07-2

013

prog

ram

min

g pe

riod.

Whe

re n

eces

sary

, spe

cific

impr

ovem

ents

are

mad

e on

a re

gula

r bas

is to

m

ake

chec

ks m

ore

effe

ctiv

e.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

; ER

DF:

Com

plia

nce

with

the

rule

s on

stat

e ai

d is

com

preh

ensi

vely

aud

ited.

Whe

n fu

ndin

g gu

idel

ines

and

prin

cipl

es a

re d

raw

n up

, the

qu

estio

n w

heth

er a

fund

ing

activ

ity in

volv

es st

ate

aid

is e

xam

ined

by

the

appr

opria

te re

spon

sibl

e La

nd a

utho

rity.

Whe

re st

ate

aid

is

invo

lved

, the

fund

ing

basi

s is s

truct

ured

in su

ch a

way

that

the

rule

s on

stat

e ai

d (th

e de

min

imis

rule

, Gen

eral

Blo

ck E

xem

ptio

n R

egul

atio

n, S

GEI

s, et

c.) a

re o

bser

ved.

If t

he fu

ndin

g is

not

pro

vide

d on

the

basi

s of a

n ai

d sc

hem

e, a

cas

e-by

-cas

e au

dit i

s co

nduc

ted,

and

a d

ecla

ratio

n or

not

ifica

tion

is m

ade

if ne

cess

ary.

D

urin

g th

e ap

plic

atio

n pr

oces

s, co

mpl

ianc

e w

ith th

e le

gal

cond

ition

s gov

erni

ng st

ate

aid,

such

as S

ME

stat

us a

nd d

e m

inim

is fu

ndin

g ra

tes,

is c

heck

ed. I

n th

e fr

amew

ork

of m

anag

emen

t ve

rific

atio

ns (c

heck

s on

draw

dow

ns, o

n-th

e-sp

ot in

spec

tions

, etc

.), c

ompl

ianc

e w

ith fu

ndin

g co

nditi

ons a

nd st

ate-

aid

rule

s is a

lso

revi

ewed

. In

mos

t Län

der t

here

is a

cen

tral o

ffic

e w

here

all

fund

ing

arra

ngem

ents

are

che

cked

aga

inst

the

rule

s gov

erni

ng st

ate

aid.

Th

is o

ffic

e co

oper

ates

clo

sely

with

the

Stat

e A

id C

ontro

l Pol

icy

Div

isio

n of

the

Fede

ral M

inis

try fo

r Eco

nom

ic A

ffai

rs a

nd E

nerg

y at

th

e na

tiona

l le

vel a

nd c

omm

unic

ates

all

aid-

rela

ted

info

rmat

ion,

such

as c

hang

es in

EU

pro

visi

ons o

n st

ate

aid

and

new

EC

J ju

dgm

ents

, to

the

agen

cies

ent

rust

ed w

ith th

e im

plem

enta

tion

of E

RD

F op

erat

ions

. New

fund

ing

guid

elin

es a

re b

eing

dra

wn

up b

y th

e co

mpe

tent

spec

ialis

ed d

ivis

ions

in c

onsu

ltatio

n w

ith th

is o

ffic

e.

For t

he 2

014-

2020

pro

gram

min

g pe

riod,

the

chec

klis

ts fo

r on-

the-

spot

insp

ectio

ns w

ere

adap

ted

– an

d, in

som

e ca

ses,

supp

lem

ente

d –

to a

llow

for v

erifi

catio

n of

com

plia

nce

with

the

rule

s on

stat

e ai

d.

In a

dditi

on, t

here

are

pre

-exi

stin

g cl

ose

and

stru

ctur

ed c

onta

cts b

etw

een

the

audi

t aut

horit

ies o

f the

Län

der,

the

natio

nal c

oord

inat

ing

auth

ority

– th

e Fe

dera

l Min

istry

of F

inan

ce –

and

the

Com

mis

sion

and

als

o am

ong

the

fede

ral c

oord

inat

ion

offic

es th

roug

h w

hich

ex

perie

nce

is sh

ared

and

info

rmat

ion

exch

ange

d. M

oreo

ver,

the

subj

ect o

f sta

te a

id is

add

ress

ed b

y su

prar

egio

nal a

nd

inte

rdep

artm

enta

l wor

king

gro

ups,

the

aim

s bei

ng th

e ea

rly id

entif

icat

ion

of a

reas

in w

hich

stat

e ai

d is

an

issu

e or

is li

able

to p

ose

prob

lem

s, cl

arifi

catio

n an

d do

cum

enta

tion

of m

atte

rs c

once

rnin

g th

e co

mpa

tibili

ty o

f sup

port

mea

sure

s and

stru

ctur

al fu

nds w

ith E

U

aid

legi

slat

ion

and

ensu

ring

that

a d

escr

iptio

n of

the

nece

ssar

y pr

oced

ural

step

s is i

ncor

pora

ted

into

the

crea

tion

of th

e m

anag

emen

t an

d co

ntro

l sys

tem

. Im

porta

nce

also

atta

ches

to c

ontin

uous

exc

hang

es w

ith th

e C

omm

issi

on o

n cu

rren

t dev

elop

men

ts in

this

fiel

d,

such

as n

ew C

omm

issi

on c

heck

lists

on

stat

e ai

d.

Fede

ral E

SF O

P: N

o er

rors

or d

efic

ienc

ies h

ave

been

iden

tifie

d in

the

fede

ral E

SF fr

amew

ork

as re

gard

s com

plia

nce

with

stat

e-ai

d

158

rule

s. Th

e fe

dera

l ESF

man

agin

g au

thor

ity is

resp

onsi

ble

for e

ffec

tive,

eco

nom

ical

and

pro

per a

dmin

istra

tion

and

impl

emen

tatio

n of

th

e fe

dera

l ESF

Ope

ratio

nal P

rogr

amm

e. It

s res

pons

ibili

ty in

clud

es e

nsur

ing

that

the

rule

s on

stat

e ai

d ar

e be

ing

obse

rved

. The

fe

dera

l ESF

man

agin

g au

thor

ity, w

hich

is th

e di

visi

on re

spon

sibl

e fo

r aid

mat

ters

in th

e Fe

dera

l Min

istry

of L

abou

r and

Soc

ial

Aff

airs

, reg

ular

ly ta

kes p

art i

n m

eetin

gs o

f the

join

t fed

eral

-Län

der w

orki

ng g

roup

org

anis

ed b

y th

e le

ad m

inis

try, t

he F

eder

al

Min

istry

for E

cono

mic

Aff

airs

and

Ene

rgy,

to d

iscu

ss c

urre

nt is

sues

rega

rdin

g ai

d le

gisl

atio

n, th

ereb

y he

lpin

g to

ens

ure

prop

er

natio

nwid

e ap

plic

atio

n of

EU

aid

legi

slat

ion

to n

atio

nal a

nd E

U fu

ndin

g m

easu

res.

In th

e fr

amew

ork

of th

e fe

dera

l ESF

pro

gram

me,

gov

ernm

ent m

inis

tries

and

impl

emen

ting

agen

cies

obt

ain

addi

tiona

l inf

orm

atio

n fr

om a

gui

de to

the

rele

vant

cat

egor

ies o

f non

-com

plia

nce

with

aid

rule

s. In

add

ition

, the

IT so

ftwar

e fo

r the

201

4-20

20 E

SF

prog

ram

min

g pe

riod

will

con

tain

man

dato

ry fi

elds

for t

he p

urpo

se o

f rec

ordi

ng re

leva

nt in

form

atio

n, su

ch a

s tha

t rel

atin

g to

co

mpl

ianc

e w

ith E

U st

ate-

aid

rule

s.

Q 7

.1.

ERD

F: In

the

2014

-202

0 pe

riod,

wid

er u

se w

ill b

e m

ade

of si

mpl

ified

cos

t opt

ions

in m

any

Ger

man

ER

DF

prog

ram

mes

in th

ose

Länd

er w

here

app

ropr

iate

fund

ing

guid

elin

es h

ave

been

or a

re b

eing

ado

pted

on

the

basi

s of A

rticl

es 6

7 an

d 68

of R

egul

atio

n (E

U)

No

1303

/201

3. T

hese

lay

dow

n th

e co

nditi

ons f

or th

e us

e of

sim

plifi

ed c

ost o

ptio

ns a

nd re

gula

te th

eir p

ract

ical

exe

rcis

e. T

he E

RD

F m

anag

ing

auth

oriti

es o

f the

Län

der,

toge

ther

with

the

auth

oriti

es re

spon

sibl

e fo

r the

app

licat

ion

of g

ener

al b

udge

tary

law

, exa

min

e ho

w th

e si

mpl

ified

cos

t opt

ions

are

bei

ng a

pplie

d in

the

ERD

F O

Ps a

nd h

ow th

eir u

se c

an b

e fa

cilit

ated

. It s

houl

d be

not

ed, h

owev

er,

that

the

mea

sure

s sup

porte

d by

the

ERD

F ar

e la

rgel

y in

vest

men

t-rel

ated

and

that

ther

e is

con

side

rabl

y le

ss sc

ope

for t

he u

se o

f si

mpl

ified

cos

t opt

ions

in c

onne

ctio

n w

ith su

ch m

easu

res t

han

in th

e ca

se o

f the

larg

ely

labo

ur-in

tens

ive

ESF

mea

sure

s. Fo

r thi

s re

ason

, fla

t rat

es a

nd o

ther

sim

plifi

ed c

ost o

ptio

ns w

ill b

e co

nsid

erab

ly le

ss p

ract

icab

le in

the

ERD

F co

ntex

t in

case

s suc

h as

supp

ort

activ

ities

in w

hich

staf

f cos

ts a

nd in

dire

ct c

osts

are

bei

ng fu

nded

. In

thos

e ca

ses w

here

ben

efic

iarie

s can

dem

onst

rate

a h

ighe

r pe

rcen

tage

of o

verh

eads

, pro

ject

cos

ts w

ill c

ontin

ue to

be

clea

red

on th

e ba

sis o

f evi

denc

e of

exp

endi

ture

. Fe

dera

l ESF

OP:

Use

is b

eing

mad

e of

the

sim

plifi

catio

n op

tions

for w

hich

the

EU R

egul

atio

ns p

rovi

de. I

n th

e pr

ojec

t-fun

ding

pr

ogra

mm

es o

f the

Fed

eral

Min

istry

of L

abou

r and

Soc

ial A

ffai

rs,

whi

ch a

ccou

nt fo

r six

of t

he M

inis

try’s

eig

ht p

rogr

amm

es, f

lat r

ates

are

use

d fo

r cos

t cal

cula

tion.

The

sam

e ap

plie

s to

the

ESF

prog

ram

mes

of t

he F

eder

al M

inis

try o

f Fam

ily A

ffai

rs, S

enio

r Citi

zens

, Wom

en a

nd Y

outh

and

the

Fede

ral M

inis

try fo

r the

En

viro

nmen

t, N

atur

e C

onse

rvat

ion,

Bui

ldin

g an

d N

ucle

ar S

afet

y. T

he u

se o

f fla

t rat

es in

thes

e pr

ogra

mm

es m

eans

that

onl

y st

aff

cost

s and

, w

here

app

ropr

iate

, pro

fess

iona

l fee

s, ar

e ca

lcul

ated

on

the

basi

s of p

roof

of p

aym

ent.

All

othe

r mat

eria

l cos

ts, s

uch

as

rent

s, ad

ditio

nal p

rope

rty e

xpen

ses,

tele

phon

e ch

arge

s, po

stag

e, a

dmin

istra

tive

over

head

s and

trav

el e

xpen

ses,

are

defr

ayed

by

mea

ns

of a

flat

per

cent

age

rate

app

lied

to th

e st

aff c

osts

. The

pro

mot

er is

thus

free

d fr

om th

e ad

min

istra

tive

burd

en o

f pro

vidi

ng e

vide

nce

of

all m

ater

ial a

nd a

dmin

istra

tive

over

head

s. M

oreo

ver,

a w

orks

hop

has b

een

held

for t

he p

urpo

se o

f brie

fing

the

fede

ral m

inis

tries

in

volv

ed in

the

impl

emen

tatio

n of

the

ESF

in th

e pr

ogra

mm

ing

perio

d fr

om 2

014

to 2

020

on th

e en

hanc

ed ru

les r

egar

ding

flat

rate

s.

159

G

RE

EC

E

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

In a

dditi

on to

the

com

mon

indi

cato

rs (c

omm

on in

dica

tors

) of t

his

ques

tion,

the

oper

atio

nal p

rogr

amm

es fo

r the

per

iod

2014

-202

0 (c

o-fin

ance

d by

the

ESF/

ERD

F/C

ohes

ion

fund

/EA

FRD

) al

so u

se a

dditi

onal

pro

gram

me-

spec

ific

resu

lt in

dica

tors

, as

requ

ired

by

Reg

ulat

ion

(EU

) N

o 13

03/2

013.

The

se i

ndic

ator

s ar

e in

clud

ed i

n ea

ch a

ppro

ved

prog

ram

me

docu

men

t, as

inc

lude

d in

the

EU

da

taba

se S

FC 2

014.

Q 1

.3.

Info

rmat

ion

on th

e ac

hiev

emen

t of t

he n

atio

nal t

arge

ts o

f the

‘Eur

ope

2020

’ stra

tegy

will

be

avai

labl

e in

the

ESS

Prog

ress

Rep

ort

in 2

017

(and

in 2

019)

. How

ever

, sin

ce th

e im

plem

enta

tion

of O

Ps w

ill n

ot h

ave

deliv

ered

bef

ore

the

repo

rt is

subm

itted

in 2

017,

no

mat

eria

l dat

a ar

e ex

pect

ed to

be

avai

labl

e fo

r the

mid

-term

revi

ew o

f the

MFF

. In

2019

, as i

n th

e fin

al re

port

on th

e im

plem

enta

tion

of th

e O

Ps a

nd th

e FT

A, w

e w

ill h

ave

mat

eria

l inf

orm

atio

n on

the

cont

ribut

ion

of th

e Pr

ogra

mm

es to

the

impl

emen

tatio

n of

the

Uni

on st

rate

gy fo

r sm

art,

sust

aina

ble

and

incl

usiv

e gr

owth

.

Q 2

.2.

No

resp

onse

Q 3

.5.

No

resp

onse

Q 3

.6.

No

resp

onse

Q 4

.1.

No

160

Q 5

.1.

Yes

;

The

appr

oved

man

agem

ent a

nd c

ontro

l sys

tem

for t

he p

erio

d 20

07-2

013

prov

ides

for t

he a

dmin

istra

tive

verif

icat

ion

of e

xpen

ditu

re

befo

re th

eir d

ecla

ratio

n to

the

EU a

nd th

e on

-the-

spot

man

agem

ent v

erifi

catio

ns a

fter t

he d

ecla

ratio

n of

rela

ted

expe

nditu

re to

the

EU. T

his

prac

tice

was

fol

low

ed i

n or

der

to a

llow

for

the

com

plia

nce

of t

he m

anag

emen

t an

d co

ntro

l sy

stem

with

the

rel

evan

t C

omm

issi

on g

uida

nce

and

the

impl

emen

tatio

n of

a re

liabl

e an

d ob

ject

ive

sam

plin

g m

etho

d fo

r the

sel

ectio

n of

ope

ratio

ns/p

roje

cts

for

on-th

e-sp

ot v

erifi

catio

n by

the

man

agin

g bo

dies

. It

is f

urth

er n

oted

tha

t as

reg

ards

the

leg

ality

of

the

notic

e fo

r/aw

ard

of/a

men

dmen

t to

publ

ic p

rocu

rem

ent,

the

Gre

ek s

yste

m p

rovi

des

for e

x an

te c

ontro

l (pr

ior t

o th

e de

clar

atio

n of

exp

endi

ture

by

the

bene

ficia

ry) b

y th

e m

anag

ing

bodi

es.

Giv

en th

e m

ulti-

annu

al c

hara

cter

of t

he O

Ps, t

his

prac

tice

did

not r

estri

ct th

e po

ssib

ility

of

ex-p

ost c

orre

ctio

ns to

exp

endi

ture

dec

lare

d to

the

EU b

y th

e m

anag

ing

bodi

es th

emse

lves

and

/or t

he A

udit

Aut

horit

y; h

owev

er, i

t is

als

o tru

e th

at i

t le

aves

roo

m f

or d

ecla

ring

expe

nditu

re t

o th

e EU

whi

ch m

ay c

onta

in e

rror

s th

at s

houl

d be

cor

rect

ed

retro

spec

tivel

y.

The

man

agem

ent

and

cont

rol

syst

em f

or t

he O

Ps o

f th

e 20

14-2

020

NSR

F re

sum

es t

he p

rior

chec

k of

the

leg

ality

of

publ

ic

proc

urem

ent

but

plac

es p

artic

ular

em

phas

is o

n th

e ad

min

istra

tive

verif

icat

ions

car

ried

out

by t

he M

As

of t

he O

Ps, b

efor

e th

e de

clar

atio

n of

exp

endi

ture

to

the

EU.

On-

the-

spot

ver

ifica

tions

are

car

ried

out

agai

n af

ter

the

adm

inis

trativ

e ch

eck

by t

he

man

agin

g bo

dies

, eve

n af

ter t

he d

ecla

ratio

n of

exp

endi

ture

to th

e EU

, but

the

impl

emen

tatio

n of

thei

r pro

gram

min

g is

com

plet

ed

befo

re t

he s

ubm

issi

on o

f th

e an

nual

acc

ount

s. It

shou

ld b

e no

ted,

how

ever

, th

at t

he f

irst-l

evel

man

agem

ent

verif

icat

ions

are

un

ques

tiona

bly

the

mos

t ef

fect

ive

tool

for

pre

vent

ion

and

early

tre

atm

ent

of e

rror

s, bu

t it

shou

ld b

e bo

rne

in m

ind

that

the

m

anag

ing

bodi

es a

re f

aced

with

a v

ery

sign

ifica

nt v

olum

e of

req

uire

men

ts t

o be

met

sim

ulta

neou

sly,

som

e of

whi

ch a

re a

lso

conf

lictin

g (o

bjec

tives

of t

he O

P, a

bsor

ptio

n, d

etec

tion

of p

ossi

ble

frau

d, re

gula

rity

and

lega

lity

of e

xpen

ditu

re, e

tc.)

and

this

is in

its

elf a

risk

fact

or fo

r the

sim

ulta

neou

s co

vera

ge o

f tho

se re

quire

men

ts. I

n th

is c

onte

xt, t

he p

rovi

sion

of g

uida

nce

from

the

EU to

pr

ovid

e pr

actic

al a

nsw

ers,

as w

ell a

s th

e tra

nsfe

r of

goo

d pr

actic

es b

etw

een

MS

thro

ugh

the

EU a

re th

e el

emen

ts o

f su

cces

s in

m

anag

eria

l wor

k.

Q 6

.1.

No

resp

onse

Q 6

.2.

No

resp

onse

161

Q 6

.3.

No

resp

onse

Q 7

.1.

Prov

isio

n w

as m

ade

for t

he u

se o

f all

the

poss

ibili

ties

prov

ided

by

the

new

regu

lato

ry fr

amew

ork

in n

atio

nal e

ligib

ility

rule

s. Th

e el

igib

ility

rule

s ha

ve a

lso

inco

rpor

ated

the

poss

ibili

ty o

f usi

ng s

impl

ified

cos

t opt

ions

(fla

t rat

e fo

r ind

irect

cos

ts) a

dopt

ed b

y th

e EU

in th

e pe

riod

2007

-201

3. A

s con

cern

s in

parti

cula

r the

com

pens

atio

n fo

r ind

irect

cos

ts, t

he n

atio

nal e

ligib

ility

rule

s pro

vide

that

th

ey a

re e

ligib

le o

nly

whe

n ca

lcul

ated

as a

lum

p su

m a

mou

nt.

For t

he fu

rther

use

of s

impl

ified

cos

t opt

ions

in th

e ER

DF/

CF,

ther

e is

a p

rovi

sion

for s

peci

fic u

pdat

ing/

train

ing

of a

ll op

erat

ors o

n th

e us

e of

sim

plifi

ed c

ost o

ptio

ns a

nd th

e co

nditi

ons

for t

heir

impl

emen

tatio

n an

d th

e su

ppor

t in

the

ex a

nte

calc

ulat

ion,

in o

rder

to

allo

w th

eir u

se in

futu

re c

alls

for m

easu

res w

ith a

larg

e nu

mbe

r of s

epar

ate

cate

gorie

s of e

xpen

ditu

re a

nd a

low

leve

l of p

rogr

amm

e es

timat

es.

H

UN

GA

RY

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

The

perf

orm

ance

indi

cato

rs se

t out

in th

e in

divi

dual

ope

ratio

nal p

rogr

amm

es.

Q 1

.3.

Yes

Q 2

.2.

No;

162

We

mad

e th

e ne

cess

ary

corr

ectio

ns o

n th

e ba

sis o

f the

gui

danc

e no

tes w

ith si

mila

r con

tent

in p

revi

ous y

ears

; no

furth

er m

easu

res

wer

e re

quire

d; th

e do

mes

tic re

port

for 2

015

com

plie

s with

the

rele

vant

EU

requ

irem

ents

. In

prev

ious

yea

rs w

e pa

rtici

pate

d in

the

qual

ity im

prov

emen

t pro

gram

me

laun

ched

by

the

Euro

pean

Com

mis

sion

in th

is fi

eld,

in w

hich

the

com

pete

nt st

aff i

n th

e C

omm

issi

on p

rovi

ded

prel

imin

ary

com

men

ts (b

efor

e of

ficia

l sub

mis

sion

) on

the

draf

t rep

ort,

enab

ling

the

nece

ssar

y co

rrec

tions

to

be m

ade

befo

re su

bmis

sion

.

Q 3

.1.

In a

udit

mis

sion

No

2014

/HU

/REG

IO/C

2/13

64/1

, the

Eur

opea

n C

omm

issi

on fo

und

that

the

Mem

ber S

tate

had

car

ried

out o

n-th

e-sp

ot c

heck

s onl

y at

fina

ncia

l int

erm

edia

ry, n

ot a

t fin

al re

cipi

ent,

leve

l. Th

ese

chec

ks w

ere

not s

uita

ble

for a

com

plet

e ev

alua

tion

of

the

elig

ibili

ty o

f the

und

erly

ing

expe

nditu

re. A

t the

sam

e tim

e, th

e C

omm

issi

on o

rder

ed th

e m

anag

ing

auth

ority

/ ho

ldin

g fu

nd to

am

end

its p

roce

dure

s or a

gree

men

ts w

ith fi

nanc

ial i

nter

med

iarie

s to

ensu

re th

at o

n-th

e-sp

ot c

heck

s wou

ld b

e ca

rrie

d ou

t at f

inal

re

cipi

ent l

evel

. Tha

t wou

ld p

rovi

de a

dequ

ate

cove

rage

for a

udits

, ens

urin

g th

at o

nly

elig

ible

exp

endi

ture

wou

ld b

e re

porte

d to

the

Com

mis

sion

.

Q 3

.2.

The

mon

itorin

g re

gula

tions

of t

he F

und

man

ager

hav

e be

en a

men

ded/

supp

lem

ente

d w

ith d

etai

led

rule

s on

the

on-th

e-sp

ot c

heck

of

final

reci

pien

ts.

In o

rder

to fa

cilit

ate

the

unifo

rm a

nd c

orre

ct in

terp

reta

tion

of th

e ru

les o

n th

e pr

ohib

ition

of p

roje

ct sp

littin

g or

mul

tiple

aid

, on

21

Oct

ober

201

3 an

d 13

Janu

ary

2015

the

Man

agin

g A

utho

rity

drew

the

atte

ntio

n of

fina

ncia

l int

erm

edia

ries t

o th

e ke

y im

porta

nce

of

filte

ring

such

pro

ject

s. B

eyon

d al

l tha

t, th

e ex

amin

atio

n of

com

plia

nce

with

the

abov

e ru

les i

s als

o a

prio

rity

insp

ectio

n cr

iterio

n of

on-

the-

spot

che

cks a

t fin

al re

cipi

ent l

evel

.

Q 4

.1.

We

have

no

expe

rienc

e of

any

mea

sure

s ot

her t

han

thos

e fo

r ass

essi

ng a

nd q

uant

ifyin

g no

n-co

mpl

ianc

e w

ith p

ublic

pro

cure

men

t ru

les

alre

ady

requ

ired

unde

r EU

law

; how

ever

, sev

eral

nat

iona

lly p

resc

ribed

mea

sure

s ap

ply

to th

e se

rious

infr

inge

men

ts li

sted

, e.

g.

- pur

suan

t to

Sect

ion

137(

1) o

f Act

CX

LII o

f 201

5 on

pub

lic p

rocu

rem

ent,

the

cont

ract

is v

oid

if

a) it

was

con

clud

ed b

y ill

egal

ly o

mitt

ing

the

publ

ic p

rocu

rem

ent p

roce

dure

;

b) a

s a

resu

lt of

a p

ublic

pro

cure

men

t pro

cedu

re w

ithou

t prio

r pu

blic

atio

n, th

e co

ntra

ct w

as c

oncl

uded

whi

le th

e co

nditi

ons

for

appl

ying

a p

roce

dure

with

out p

rior p

ublic

atio

n w

ere

not i

n pl

ace,

and,

whe

n de

tect

ing

such

an

infr

inge

men

t, th

e Pu

blic

Pro

cure

men

t Boa

rd o

f App

eal l

aunc

hes

a su

it in

ord

er to

dec

lare

nul

lity

and

appl

y le

gal c

onse

quen

ces,

- in

the

case

of t

he in

frin

gem

ents

list

ed b

y th

e C

ourt

of A

udito

rs a

s w

ell a

s ot

her i

nfrin

gem

ents

, any

eco

nom

ic o

pera

tor c

once

rned

163

may

requ

est,

and

the

pers

ons

or o

rgan

isat

ions

list

ed in

Sec

tion

152(

1) o

f Act

CX

LII o

f 201

5 m

ay in

itiat

e, th

e re

med

ial p

roce

dure

by

the

Publ

ic P

rocu

rem

ent B

oard

of A

ppea

l. A

s a

resu

lt of

the

rem

edia

l pro

cedu

re, t

he B

oard

of A

ppea

l may

als

o im

pose

a fi

ne

purs

uant

to S

ectio

n 16

5 of

Act

CX

LII

of 2

015

in a

dditi

on to

the

abov

e (in

ser

ious

cas

es th

e fin

e is

man

dato

ry o

r its

max

imum

am

ount

is h

ighe

r tha

n th

e av

erag

e);

Purs

uant

to G

over

nmen

t Dec

ree

No

272/

2014

of 5

Nov

embe

r 201

4 on

the

use

of su

ppor

t fro

m c

erta

in E

urop

ean

Uni

on fu

nds i

n th

e 20

14–2

020

prog

ram

min

g pe

riod,

no

supp

ort a

mou

nt m

ay b

e pa

id if

the

resu

lt of

the

audi

t of t

he p

ublic

pro

cure

men

t pro

cedu

re is

‘n

on-e

ligib

le’;

furth

erm

ore,

the

app

ropr

iate

fin

anci

al c

orre

ctio

n m

ay a

lso

be a

pplie

d as

a r

esul

t of

con

duct

ing

the

irreg

ular

ity

proc

edur

e.

Q 5

.1.

Yes

;

The

findi

ngs

of f

irst

and

seco

nd l

evel

che

cks

are

inco

rpor

ated

in

the

audi

t sy

stem

, fo

r ex

ampl

e: m

ore

com

plex

fol

low

-up

of

irreg

ular

ities

, with

ret

rosp

ectiv

e pr

oces

sing

fro

m th

e be

ginn

ing

of th

e pe

riod;

OP

spec

ific

chec

king

of

invo

ices

out

of

turn

(e.

g.

inco

me-

gene

ratin

g pr

ojec

ts, i

nvoi

ces a

ffec

ted

by fl

at-r

ate

corr

ectio

n).

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

;

In t

he c

ase

of c

alls

for

pro

posa

ls a

nd p

riorit

y pr

ojec

ts, t

he S

tate

Aid

Mon

itorin

g O

ffic

e op

erat

ing

with

in t

he P

rime

Min

iste

r’s

Off

ice

perf

orm

s pre

limin

ary

exam

inat

ion

of c

ompl

ianc

e w

ith S

tate

aid

rule

s or,

in th

e fr

amew

ork

of fi

rst-l

evel

che

cks,

it is

che

cked

by

the

inte

rmed

iate

bod

ies /

man

agin

g au

thor

ities

on

the

basi

s of t

he st

atem

ents

by

tend

erer

s.

Q 7

.1.

As

coor

dina

tion

body

, th

e Pr

ime

Min

iste

r’s

Off

ice

has

draw

n up

a m

etho

dolo

gica

l gu

idan

ce f

or c

lear

ing

on a

lum

p su

m a

nd

stan

dard

sca

le o

f un

it co

st b

asis

in th

e 20

14–2

020

perio

d. T

he g

uida

nce

has

been

agr

eed

with

the

man

agin

g au

thor

ities

and

the

audi

t aut

horit

y. In

the

2014

–202

0 ca

lls fo

r pro

posa

ls, m

anag

ing

auth

oriti

es p

ay s

peci

al a

ttent

ion

to u

sing

the

sim

plifi

ed c

lear

ance

gu

idel

ines

whe

re p

ossi

ble.

164

IR

EL

AN

D

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

0

Q 1

.2.

ESF:

As d

etai

led

in th

e 20

14-2

020

OP

(201

4IE0

5M9O

P001

)

ERD

F: A

s det

aile

d in

the

two

ERD

F 20

14-2

020

OPs

(201

4IE1

6RFO

P001

and

201

4IE1

6RFO

P001

)

EMFF

: OP

not o

ffic

ially

ado

pted

, det

ails

of a

dditi

onal

indi

cato

rs su

bjec

t to

chan

ge.

Q 1

.3.

Yes

;

ESF

- As d

etai

led

in th

e 20

14-2

020

OP

(201

4IE0

5M9O

P001

)

EMFF

– T

he c

urre

nt d

raft

OP

incl

udes

con

text

ind

icat

ors

take

n fr

om t

he E

MFF

Reg

ulat

ion,

as

the

EMFF

OP

is n

ot y

et a

dopt

ed,

thes

e in

dica

tors

can

not y

et b

e en

umer

ated

.

ERD

F –

The

Ope

ratio

nal P

rogr

amm

es w

ill b

e re

porti

ng p

rogr

amm

e-sp

ecifi

c ou

tput

and

resu

lt in

dica

tors

ann

ually

, and

thes

e w

ill b

e av

aila

ble

for M

FF m

id-te

rm re

view

.

Q 2

.2.

No;

Fina

ncia

l Ins

trum

ents

are

not

bei

ng u

sed

in Ir

elan

d’s E

SIF

prog

ram

mes

at t

his t

ime

and

as su

ch th

e gu

idel

ine

quot

ed is

not

dire

ctly

re

leva

nt to

Irel

and’

s rep

ortin

g sy

stem

.

165

Q 3

.7.

Publ

ic P

rocu

rem

ent f

or L

EAD

ER p

roje

cts

is e

valu

ated

and

app

rove

d by

the

Loca

l Act

ion

Gro

ups,

unde

r del

egat

ed c

ontra

ct fr

om

DEC

LG.

In m

ost

case

s th

e pr

ojec

t pr

omot

er r

elie

s on

eng

inee

rs/a

rchi

tect

s or

oth

er s

uch

agen

cies

to

hand

le t

he p

rocu

rem

ent

proc

ess.

On

som

e oc

casi

ons

the

prom

oter

, hav

ing

alre

ady

been

adv

ised

on

the

corr

ect m

etho

d of

dea

ling

with

pro

cure

men

t iss

ues,

ente

red

into

pos

t-ten

der n

egot

iatio

ns w

ith su

pplie

rs. T

hese

bre

ache

s, th

eref

ore,

wer

e ou

tsid

e th

e co

ntro

l of t

he D

epar

tmen

t fro

m a

n ad

min

istra

tion

pers

pect

ive,

giv

ing

rise

to th

e irr

egul

ariti

es.

Q 3

.8.

Und

er th

e 20

14-2

020

prog

ram

me,

the

initi

al p

roje

ct e

valu

atio

n an

d ap

prov

al p

roce

ss w

ill c

onta

in m

ore

spec

ific

and

com

preh

ensi

ve

revi

ews

of a

ll as

pect

s of

pub

lic p

rocu

rem

ent r

equi

rem

ents

. Thi

s ea

rly s

tage

inte

rven

tion

is d

esig

ned

to m

inim

ise

the

risk

of fu

ture

irr

egul

ariti

es in

volv

ing

proc

urem

ent i

ssue

s.

Q 4

.1.

The

ERD

F A

udit

Aut

horit

y re

view

all

oper

atio

ns a

udit

sam

ples

for

com

plia

nce

with

pub

lic p

rocu

rem

ent n

atio

nal a

nd E

U r

ules

. A

ny fi

nanc

ial c

orre

ctio

ns re

quire

d ar

e ba

sed

on c

ompl

ianc

e w

ith th

e Pr

ocur

emen

t Dire

ctiv

es a

nd T

reat

y Pr

inci

ples

and

the

type

s of

irreg

ular

ities

and

scal

es o

f cor

rect

ion

are

set o

ut in

the

Com

mis

sion

Dec

isio

n do

cum

ent C

(201

3)95

27.

Sinc

e th

e is

sue

of th

is d

ocum

ent,

the

scal

es o

f co

rrec

tion

also

app

ly to

con

tract

s th

at f

all o

utsi

de th

e sc

ope

of th

e di

rect

ives

and

th

ese

are

the

only

one

s app

lied

by th

e ER

DF

Aud

it A

utho

rity.

Oth

er N

atio

nal P

ublic

Pro

cure

men

t Gui

delin

es a

re is

sued

in th

e fo

rm o

f;

• Nat

iona

l Pub

lic P

rocu

rem

ent G

uide

lines

for S

uppl

ies &

Ser

vice

s (20

09)

• Cap

ital W

orks

Man

agem

ent F

ram

ewor

k (f

or a

ll pu

blic

wor

ks &

con

sulta

ncy

cont

ract

s)

• Circ

ular

s fro

m D

PER

Initi

ativ

es to

ass

ist S

MEs

in P

ublic

Pro

cure

men

t

• Cen

tral c

ontra

cts p

ut in

pla

ce fo

r Nat

iona

l Pro

cure

men

t Ser

vice

• Pro

cure

men

t of L

egal

Ser

vice

s

• Arr

ange

men

ts fo

r IC

T ex

pend

iture

How

ever

the

rat

es o

f fin

anci

al c

orre

ctio

n us

ed f

or b

reac

h of

nat

iona

l pu

blic

pro

cure

men

t ru

les

are

thos

e us

ed i

n C

omm

issi

on

Dec

isio

n C

(201

3)95

27.

Furth

er, i

n re

latio

n to

the

ques

tion

of o

vers

ight

s in

the

awar

ding

of G

over

nmen

t con

tract

s, pu

blic

pro

cure

men

t pra

ctic

es a

re su

bjec

t

166

to a

udit

and

scru

tiny

unde

r the

Com

ptro

ller a

nd A

udito

r Gen

eral

(Am

endm

ent)

Act

199

3, a

nd th

e Lo

cal G

over

nmen

t Ref

orm

Act

20

14, a

nd A

ccou

ntin

g O

ffic

ers

are

acco

unta

ble

for

expe

nditu

re i

ncur

red.

In

divi

dual

con

tract

ing

auth

oriti

es a

re r

espo

nsib

le f

or

esta

blis

hing

arr

ange

men

ts fo

r ens

urin

g th

e pr

oper

con

duct

of t

heir

affa

irs, i

nclu

ding

con

form

ance

to s

tand

ards

of g

ood

gove

rnan

ce

and

acco

unta

bilit

y w

ith re

gard

to p

rocu

rem

ent.

Q 5

.1.

Yes

;

Irel

and

appl

ies a

2%

err

or ra

te th

resh

old

prio

r to

the

certi

ficat

ion

of it

s ESF

and

ER

DF

clai

m.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

No

Q 7

.1.

On

ERD

F, it

is in

tend

ed to

use

sim

plifi

ed fl

at ra

te fi

nanc

ing

for i

ndire

ct a

nd s

taff

cos

ts in

acc

orda

nce

with

Art.

68

of th

e C

omm

on

Prov

isio

ns R

egul

atio

n.

IT

AL

Y

Q 1

.1.

No

resp

onse

Q 1

.2.

No

resp

onse

Q 1

.3.

No

resp

onse

Q 2

.1.

Yes

;

With

in th

e fr

amew

ork

of th

e A

nnua

l Im

plem

enta

tion

Rep

ort 2

014,

det

aile

d in

form

atio

n on

the

fin

anci

al e

ngin

eerin

g in

stru

men

ts h

as b

een

prov

ided

(Man

agin

g A

utho

rity

repl

y - R

OP

Cam

pani

a ES

F 20

07-2

013)

.

The

Man

agin

g A

utho

rity

has

acce

pted

the

Com

mis

sion

's do

cum

ent a

nd w

ill g

ive

it du

e co

nsid

erat

ion

in th

e ne

xt re

port

(rep

ly fr

om th

e A

udit

Aut

horit

y fo

r the

Um

bria

regi

on).

167

Q 3

.3.

In th

e ca

se in

que

stio

n, a

cov

er c

rop

was

foun

d w

hich

, alth

ough

diff

eren

t fro

m th

at re

ques

ted,

cou

ld e

nsur

e th

at th

e ob

ject

ives

of t

he m

easu

re

wer

e ac

hiev

ed.

We

cons

ider

that

this

can

not b

e a

wea

knes

s or s

hortc

omin

g in

the

cont

rol s

yste

m, s

ince

the

hold

ing

was

not

sele

cted

for o

n-th

e-sp

ot c

heck

s, an

d on

ly su

ch c

heck

s wou

ld h

ave

mad

e it

poss

ible

to e

stab

lish

that

a d

iffer

ent c

rop

was

in p

lace

.

Q 3

.4.

In v

iew

of t

he c

omm

ents

mad

e du

ring

the

audi

t, an

d in

line

with

the

proc

edur

es p

rovi

ded

for i

n su

ch c

ases

, the

sanc

tions

laid

dow

n ha

ve b

een

appl

ied.

Q 3

.5.

The

case

exa

min

ed b

y th

e Eu

rope

an C

ourt

of A

udito

rs re

latin

g to

the

Pugl

ia re

gion

, as c

ompr

ehen

sive

ly a

rgue

d by

the

Italia

n au

thor

ities

, was

an

inst

ance

of r

ecou

rse

to c

olla

bora

tion

agre

emen

ts b

etw

een

publ

ic a

utho

ritie

s, w

hich

wer

e al

read

y in

exi

sten

ce a

nd in

use

in th

e ru

ral

deve

lopm

ent p

rogr

amm

es th

at w

ere

the

subj

ect o

f the

aud

it.

In su

ch c

ases

, on

the

basi

s of t

he C

ourt

of Ju

stic

e's e

stab

lishe

d ca

se-la

w, a

tend

er p

roce

dure

doe

s not

hav

e to

be

open

ed o

n th

e ba

sis o

f D

irect

ive

15/2

014.

Q 3

.6.

See

abov

e.

Q 3

.7.

See

abov

e.

Q 3

.8.

See

abov

e.

Q 4

.1.

No

resp

onse

Q 5

.1.

No

resp

onse

Q 6

.1.

No

resp

onse

Q 6

.2.

No

resp

onse

Q 6

.3.

No

resp

onse

Q 7

.1.

No

resp

onse

168

L

AT

VIA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

A m

onito

ring

and

eval

uatio

n sy

stem

has

bee

n cr

eate

d fo

r ev

alua

ting

the

oper

atio

nal

prog

ram

mes

of

the

Euro

pean

Agr

icul

tura

l Fu

nd f

or R

ural

Dev

elop

men

t (E

AFR

D)

and

the

Euro

pean

Mar

itim

e an

d Fi

sher

ies

Fund

(EM

FF),

whe

reby

com

plem

enta

ry

indi

cato

rs (o

utco

me,

resu

lt an

d co

ntex

t ind

icat

ors)

are

gat

here

d an

d ap

plie

d in

add

ition

to th

e in

dica

tors

incl

uded

in th

e op

erat

iona

l pr

ogra

mm

es. T

his

is to

ach

ieve

a m

ore

effe

ctiv

e an

d hi

gher

qua

lity

asse

ssm

ent o

f the

pro

gres

s, pe

rfor

man

ce a

nd e

ffec

tiven

ess

of

the

prog

ram

mes

.

How

ever

, in

the

Lat

vian

ope

ratio

nal

prog

ram

me

Gro

wth

and

Em

ploy

men

t (a

n ER

DF,

CF

and

ESF

mul

ti-fu

nd p

rogr

amm

e)

prog

ram

me-

spec

ific

indi

cato

rs a

re u

sed

and

this

ena

bles

a m

ore

prec

ise

illus

tratio

n of

the

subs

tanc

e an

d in

terv

entio

n lo

gic

of e

ach

spec

ific

supp

ort

obje

ctiv

e. B

oth

resu

lt an

d ou

tcom

e in

dica

tors

are

lai

d do

wn

for

each

spe

cific

sup

port

obje

ctiv

e. F

inan

cial

in

dica

tors

at t

he le

vel o

f spe

cific

sup

port

obje

ctiv

es a

re a

lso

inco

rpor

ated

into

the

Mem

ber S

tate

's st

atut

ory

legi

slat

ion,

whi

ch a

lso

stip

ulat

es th

e ad

ditio

nal i

nfor

mat

ion

to b

e ga

ther

ed f

or a

sses

sing

the

impa

ct, e

ffec

tiven

ess

and

perf

orm

ance

of

inte

rven

tion.

Thi

s in

form

atio

n is

stor

ed in

the

man

agem

ent i

nfor

mat

ion

syst

em se

t up

for m

onito

ring

the

ERD

F, th

e C

F an

d th

e ES

F.

Q 1

.3.

Yes

;

In c

omm

on w

ith o

ther

Mem

ber S

tate

s, La

tvia

's m

id-te

rm ta

rget

s fo

r all

ESI f

unds

are

sch

edul

ed fo

r 31

Dec

embe

r 201

8. T

akin

g in

to a

ccou

nt

the

diff

erin

g ap

proa

ches

to

notif

ying

indi

cato

rs, i

n 20

17 m

ore

sign

ifica

nt p

rogr

ess

in th

e fr

amew

ork

of th

e ER

DF,

the

ESF

and

the

CF

is

antic

ipat

ed in

con

nect

ion

with

ESF

sup

port

mea

sure

s (i.

e. f

or o

utco

me

indi

cato

rs, n

otifi

catio

n m

ay c

onsi

st o

f pa

rtial

ly c

ompl

eted

ope

ratio

ns

unde

r th

e pr

ovis

ions

of

a gi

ven

prog

ram

me

whi

ch a

re o

f si

gnifi

canc

e fo

r as

sess

ing

the

perf

orm

ance

and

eff

ectiv

enes

s of

the

ope

ratio

nal

prog

ram

me

conc

erne

d).

The

quan

tity

of d

ata

on t

he r

esul

ts a

chie

ved

may

var

y am

ong

diff

eren

t pr

iorit

y ax

es,

depe

ndin

g on

the

fun

d in

qu

estio

n, th

e fu

lfilm

ent o

f ex

ante

con

ditio

ns a

nd th

e de

velo

pmen

t of s

tatu

tory

legi

slat

ion

at n

atio

nal l

evel

. It i

s an

ticip

ated

that

by

2017

few

er

data

may

hav

e be

en n

otifi

ed o

n ou

tcom

e in

dica

tors

with

res

pect

to

prio

rity

axes

whi

ch i

nvol

ve t

he c

onst

ruct

ion

of p

hysi

cal

obje

cts

169

(ER

DF/

CF)

, whi

le a

s fa

r as

finan

cial

indi

cato

rs a

re c

once

rned

, cer

tifie

d ex

pend

iture

is p

lann

ed fo

r all

prio

rity

axes

. As

conc

erns

the

EAFR

D

and

the

EMFF

, dat

a on

resu

lts a

chie

ved

in li

ne w

ith th

e ta

rget

s set

out

in E

AFR

D a

nd E

MFF

ope

ratio

nal p

rogr

amm

es w

ill b

e pr

ovid

ed in

201

7 an

d 20

19. T

hese

dat

a ar

e of

impo

rtanc

e fo

r ass

essi

ng th

e pe

rfor

man

ce a

nd e

ffec

tiven

ess

of o

pera

tiona

l pro

gram

mes

. How

ever

, in

view

of t

he

fact

that

the

EAFR

D a

nd E

MFF

ope

ratio

nal p

rogr

amm

es o

nly

bega

n to

be

impl

emen

ted

2015

, in

term

s of

not

ifyin

g ou

tcom

e in

dica

tors

, no

sign

ifica

nt p

rogr

ess i

s ant

icip

ated

by

2017

.

Q 2

.2.

No;

In L

atvi

a's c

ase,

ther

e w

ere

no g

uida

nce

note

s or

off

icia

l obs

erva

tions

on

impr

ovin

g th

e qu

ality

of d

ata

whe

n pr

ovid

ing

annu

al in

form

atio

n on

fin

anci

al in

stru

men

t dat

a. D

ata

are

bein

g pr

ovid

ed in

acc

orda

nce

with

the

Euro

pean

Com

mis

sion

's sp

ecifi

catio

ns.

Q 4

.1.

Proc

urem

ents

are

con

duct

ed in

acc

orda

nce

with

nat

iona

l leg

isla

tion

whi

ch h

as b

een

draw

n up

on

the

basi

s of/t

rans

posi

ng th

e pr

ovis

ions

of E

U

legi

slat

ion.

In

the

case

of t

he E

AFR

D a

nd th

e EM

FF, b

efor

e pa

ymen

ts a

re m

ade,

che

cks a

re c

ondu

cted

on

the

elig

ibili

ty o

f pro

cure

men

ts, a

nd d

etai

led

chec

klis

ts a

re c

ompl

eted

incl

udin

g qu

estio

ns o

n se

lect

ing

a su

itabl

e pr

ocur

emen

t pro

cedu

re, c

ompl

ianc

e w

ith te

chni

cal s

peci

ficat

ions

and

oth

er

chec

k qu

estio

ns.

As a

pre

vent

ativ

e m

easu

re, i

n or

der t

o id

entif

y in

frin

gem

ents

in p

rocu

rem

ent p

roce

dure

s as e

arly

as p

ossi

ble

and

to a

void

the

occu

rren

ce o

f in

elig

ible

exp

endi

ture

, ex

ante

che

cks o

n pr

ocur

emen

ts a

re c

ondu

cted

in a

ccor

danc

e w

ith th

e pr

ovis

ions

of C

hapt

er V

II o

f Cab

inet

Reg

ulat

ion

No

419

of 2

6 Ju

ne 2

007

on th

e pr

oced

ures

use

d by

the

bodi

es in

volv

ed in

the

man

agem

ent o

f EU

Stru

ctur

al F

unds

and

the

Coh

esio

n Fu

nd to

pr

epar

e pr

ogra

mm

ing

docu

men

ts a

nd im

plem

ent t

he fu

nds.

Q 5

.1.

Yes

; D

urin

g th

e 20

07–2

013

prog

ram

min

g pe

riod

the

man

agin

g au

thor

ity f

or E

U f

unds

and

the

inst

itutio

ns d

eleg

ated

to p

erfo

rm m

onito

ring

and

cont

rol f

unct

ions

set u

p a

serie

s of c

heck

s on

expe

nditu

re p

rior t

o th

eir a

ppro

val b

y th

e Eu

rope

an C

omm

issi

on.

• Ex

ant

e ch

ecks

on

proc

urem

ents

wer

e ca

rrie

d ou

t (s

ee t

he a

nsw

er t

o qu

estio

n 4.

1), a

nd th

e m

etho

dolo

gy f

or t

hese

che

cks

was

reg

ular

ly

impr

oved

and

upd

ated

to ta

ke a

ccou

nt o

f cur

rent

pro

blem

s an

d tre

nds.

Thes

e ch

ecks

wer

e co

nduc

ted

by th

e Pr

ocur

emen

t Mon

itorin

g B

urea

u an

d th

e co

mpe

tent

aut

horit

ies/

liais

on b

odie

s;

• C

heck

s w

ere

carr

ied

out i

n si

tu a

t pro

ject

impl

emen

tatio

n si

tes

in a

ccor

danc

e w

ith C

abin

et R

egul

atio

n N

o 14

0 of

16

Febr

uary

201

0 on

the

proc

edur

es u

sed

by th

e m

anag

ing

auth

ority

, the

cer

tifyi

ng a

utho

rity,

the

liais

on b

ody

or th

e co

mpe

tent

aut

horit

y to

car

ry o

ut o

n-si

te c

heck

s of

pr

ojec

ts fi

nanc

ed b

y th

e EU

Stru

ctur

al F

unds

and

the

Coh

esio

n Fu

nd. C

abin

et R

egul

atio

ns h

ave

been

upd

ated

and

the

chec

k m

etho

dolo

gy h

as

been

impr

oved

to a

chie

ve m

ore

effe

ctiv

e pl

anni

ng a

nd p

erfo

rman

ce o

f che

cks.

This

is d

one

by th

e co

mpe

tent

aut

horit

ies,

the

liais

on b

odie

s and

th

e m

anag

ing

auth

ority

for E

U fu

nds;

• C

heck

s on

sup

porti

ng d

ocum

enta

tion

for e

xpen

ditu

re h

ave

been

car

ried

out i

n ac

cord

ance

with

Cab

inet

Reg

ulat

ion

No

1041

of 2

5 N

ovem

ber

2010

on

proc

edur

es u

nder

whi

ch S

tate

Bud

get r

esou

rces

are

pro

vide

d fo

r th

e ex

ecut

ion

of E

urop

ean

Uni

on F

und

co-f

inan

ced

proj

ects

, and

pr

oced

ures

for e

ffec

ting

paym

ents

and

pre

parin

g ex

pend

iture

dec

lara

tions

. Cab

inet

Reg

ulat

ions

wer

e up

date

d al

ong

with

the

guid

ance

mat

eria

l re

latin

g to

che

cks o

n el

igib

le e

xpen

ditu

re. T

his i

s don

e by

the

com

pete

nt a

utho

ritie

s/lia

ison

bod

ies;

• T

he m

anag

ing

auth

ority

for E

U fu

nds p

rovi

des f

or th

e re

gula

r mon

itorin

g of

the

chec

ks c

ondu

cted

by

com

pete

nt a

utho

ritie

s/lia

ison

bodi

es, i

n or

der t

o ve

rify

that

the

auth

oriti

es a

re c

ondu

ctin

g th

e w

ork

dele

gate

d to

them

to a

sui

tabl

y hi

gh s

tand

ard

and

that

no

shor

tcom

ings

hav

e be

en

170

iden

tifie

d th

at w

ould

hav

e an

impa

ct o

n th

e co

rrec

t fun

ctio

ning

of t

he m

anag

emen

t and

con

trol s

yste

m.

In t

he l

ight

of

expe

rienc

e ga

ined

dur

ing

the

prev

ious

pla

nnin

g pe

riod

and

the

prop

osal

s pu

t fo

rwar

d in

var

ious

ass

essm

ents

and

wor

king

gr

oups

, in

orde

r to

optim

ise

the

man

agem

ent a

nd c

ontro

l sys

tem

for t

he E

SF, E

FDF

and

CF

2014

–202

0 pr

ogra

mm

ing

perio

d an

d to

ens

ure

that

ch

ecks

are

eff

ectiv

e an

d re

sult-

orie

ntat

ed, t

he 'o

ne-s

top

shop

' prin

cipl

e ha

s be

en in

trodu

ced,

i.e.

pro

ject

sel

ectio

n an

d ch

ecks

are

car

ried

out b

y a

sing

le b

ody.

EA

FRD

and

EM

FF p

roje

ct s

elec

tion

and

chec

ks a

re a

lso

the

resp

onsi

bilit

y of

a s

ingl

e bo

dy.

Thi

s en

able

s th

e m

anag

ing

auth

ority

to o

ptim

ise

the

plan

ning

of

chec

ks o

n de

lega

ted

func

tions

to v

erify

whe

ther

they

hav

e be

en c

arrie

d ou

t app

ropr

iate

ly a

nd w

heth

er

expe

nditu

re b

eing

dec

lare

d to

the

Eur

opea

n C

omm

issi

on i

s el

igib

le, t

here

by f

acili

tatin

g th

e w

ork

of t

he h

ead

of t

he E

SF, E

RD

F an

d C

F m

anag

ing

auth

ority

and

the

hea

d of

the

EM

FF m

anag

ing

auth

ority

in

the

prep

arat

ion

of t

he 2

014–

2020

pro

gram

min

g pe

riod

ESI

fund

m

anag

emen

t dec

lara

tions

. In

the

new

pro

gram

min

g pe

riod,

the

man

agin

g au

thor

ity a

lso

has

an e

nhan

ced

role

in re

latio

n to

the

ESF,

the

ERD

F an

d th

e C

F in

its

mon

itorin

g of

the

impl

emen

tatio

n of

rec

omm

enda

tions

mad

e to

liai

son

bodi

es in

aud

its a

nd r

evie

ws,

in th

at th

e m

anag

ing

auth

ority

con

duct

s th

e fin

al c

heck

s on

the

im

plem

enta

tion

of t

hese

rec

omm

enda

tions

. Th

eref

ore,

in

the

new

pro

gram

min

g pe

riod

the

man

agem

ent a

nd c

ontro

l sys

tem

inco

rpor

ates

pre

cond

ition

s ai

med

at i

mpr

ovin

g m

anag

emen

t che

cks

and

cons

olid

atin

g th

e ef

fect

iven

ess

of

thes

e ch

ecks

. For

the

EA

FRD

and

the

EM

FF, p

rovi

sion

s ar

e la

id d

own

for

chec

ks d

urin

g th

e co

urse

of

proj

ect

eval

uatio

n, c

heck

s du

ring

proj

ect i

mpl

emen

tatio

n, in

situ

che

cks,

in s

itu c

heck

s du

ring

proj

ect m

onito

ring

and

also

EA

FRD

and

EM

FF m

anag

ing

auth

ority

che

cks o

f the

lia

ison

bod

y in

ord

er to

ver

ify th

at th

is b

ody

is c

arry

ing

out t

he ta

sks

dele

gate

d to

it b

y th

e m

anag

ing

auth

ority

to a

sui

tabl

y hi

gh s

tand

ard

and

that

no

shor

tcom

ings

hav

e be

en id

entif

ied

that

wou

ld h

ave

an im

pact

on

the

effe

ctiv

e fu

nctio

ning

of t

he m

anag

emen

t and

con

trol s

yste

m.

Q 6

.1.

Yes

Q 6

.2.

No;

A

t the

dev

elop

men

t lev

el fo

r sup

port

prog

ram

mes

and

indi

vidu

al p

roje

cts (

ad h

oc a

id) c

ompl

ianc

e w

ith S

tate

aid

rule

s and

pro

cedu

res i

s m

onito

red

by th

e Fi

nanc

e M

inis

try's

Dep

artm

ent f

or th

e m

onito

ring

of a

id fo

r com

mer

cial

act

ivity

. The

Lat

vian

aut

horit

ies d

o no

t the

refo

re

antic

ipat

e an

y sy

stem

ic p

robl

ems o

r def

icie

ncie

s in

the

deve

lopm

ent o

f sup

port

prog

ram

mes

. In

acc

orda

nce

with

the

prov

isio

ns o

f nat

iona

l leg

isla

tion,

i.e.

the

Law

on

the

mon

itorin

g of

aid

for c

omm

erci

al a

ctiv

ity, e

ach

plan

ned

supp

ort

prog

ram

me

or in

divi

dual

supp

ort p

roje

ct, a

nd e

ach

plan

ned

amen

dmen

t to

an e

xist

ing

prog

ram

me

or in

divi

dual

supp

ort p

roje

ct ,

mus

t be

subm

itted

by

the

aid

prov

ider

to th

e M

inis

try o

f Fin

ance

bef

ore

the

star

t of i

ts im

plem

enta

tion

for a

n in

itial

ass

essm

ent,

exce

pt w

here

form

al o

r ad

min

istra

tive

amen

dmen

ts a

re b

eing

mad

e w

hich

wou

ld n

ot h

ave

an im

pact

on

an a

sses

smen

t of t

he c

omm

erci

al su

ppor

t mea

sure

's co

mpa

tibili

ty w

ith th

e EU

inte

rnal

mar

ket.

This

als

o ap

plie

s to

supp

ort f

or c

omm

erci

al a

ctiv

ities

whi

ch u

nder

EU

legi

slat

ion

is no

t sub

ject

to

prio

r not

ifica

tion

or th

e su

bmis

sion

of s

umm

ary

info

rmat

ion

to th

e Eu

rope

an C

omm

issi

on, i

nclu

ding

de

min

imis

aid

.

Q 6

.3.

No;

M

easu

res h

ave

not b

een

nece

ssar

y as

no

syst

emic

issu

es o

r def

icie

ncie

s hav

e as

yet

bee

n id

entif

ied

in c

onne

ctio

n w

ith S

tate

aid

rule

s in

the

area

of E

urop

ean

stru

ctur

al a

nd in

vest

men

t fun

ds.

Q 7

.1.

An

'Eva

luat

ion

of th

e ex

perie

nce

of u

sing

sim

plifi

ed c

osts

dur

ing

the

2007

–201

3 EU

fun

ds p

rogr

amm

ing

perio

d an

d th

e op

tions

fo

r usi

ng s

impl

ified

cos

ts d

urin

g th

e 20

14–2

020

prog

ram

min

g pe

riod'

was

car

ried

out a

t the

Fin

ance

Min

istry

, and

on

the

basi

s of

th

is e

valu

atio

n th

e M

inis

try d

evel

oped

thre

e m

etho

dolo

gies

for u

sing

sim

plifi

ed c

osts

: the

'Met

hodo

logy

for a

pply

ing

flat r

ates

for

171

indi

rect

cos

ts in

the

reco

gniti

on o

f pro

ject

exp

endi

ture

dur

ing

the

2014

–202

0 pr

ogra

mm

ing

perio

d'; t

he 'M

etho

dolo

gy fo

r app

lyin

g a

stan

dard

sca

le o

f uni

t cos

ts d

urin

g th

e 20

14–2

020

prog

ram

min

g pe

riod'

; and

the

'Met

hodo

logy

for a

pply

ing

lum

p su

m p

aym

ents

du

ring

the

2014

–202

0 pr

ogra

mm

ing

perio

d'.

Thes

e m

etho

dolo

gies

pro

vide

an

expl

anat

ion

of s

impl

ified

cos

t op

tions

, th

ereb

y en

cour

agin

g th

eir u

se a

nd p

rom

otin

g th

eir c

omm

on a

pplic

atio

n by

all

the

bodi

es in

volv

ed in

the

man

agem

ent o

f Eur

opea

n U

nion

fu

nds i

n La

tvia

.

L

ITH

UA

NIA

Q 1

.1.

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

Whe

re g

ener

al f

unds

ind

icat

ors

are

insu

ffic

ient

, sp

ecia

l in

dica

tors

are

use

d. T

hey

can

be s

et o

n th

e le

vel

of t

he O

pera

tiona

l Pr

ogra

mm

e fo

r EU

Fun

ds In

vest

men

ts fo

r 201

4-20

20 a

ppro

ved

by C

omm

issi

on D

ecis

ion

No

C(2

014)

639

7 of

8 S

epte

mbe

r 201

4 (‘

the

Ope

ratio

nal P

rogr

amm

e’) o

r on

the

natio

nal l

evel

.

Q 1

.3.

No;

No

esse

ntia

l cha

nges

that

may

aff

ect t

he m

id-te

rm r

evie

w o

f th

e M

FF p

lann

ed in

201

7 an

d th

e am

ount

of

the

MFF

fun

ds a

lloca

ted

to th

e Li

thua

nia

have

bee

n es

tabl

ishe

d.

Q 2

.2.

Yes

;

The

man

agin

g au

thor

ity h

as in

form

ed p

roje

ct p

rom

oter

s ab

out t

he E

urop

ean

Com

mis

sion

’s re

quire

men

ts fo

r fill

ing

in s

tate

men

ts fo

r fin

anci

al

inst

rum

ents

. A

fter t

he p

roje

ct p

rom

oter

sub

mits

a c

ompl

eted

sta

tem

ent f

or fi

nanc

ial i

nstru

men

ts, t

he m

anag

ing

auth

ority

che

cks

whe

ther

the

info

rmat

ion

prov

ided

in th

e st

atem

ent i

s in

line

with

the

Euro

pean

Com

mis

sion

’s g

uide

lines

on

stat

emen

ts fo

r fin

anci

al in

stru

men

ts (E

GES

IF

1500

15 0

6/05

/201

5).

In

the

case

of

inco

nsis

tenc

ies

the

man

agin

g au

thor

ity s

ubm

its c

omm

ents

to

proj

ect

prom

oter

s in

res

pect

of

the

com

plet

ion

of t

he s

aid

stat

emen

ts a

nd a

sks

them

to

prov

ide

clar

ifica

tions

. M

oreo

ver,

with

a v

iew

to

prop

erly

com

plet

ing

stat

emen

ts f

or

finan

cial

inst

rum

ents

, the

man

agin

g au

thor

ity c

onsu

lts re

pres

enta

tives

of t

he E

urop

ean

Com

mis

sion

.

Q 3

.1.

Ther

e w

as n

o cl

ear i

nfor

mat

ion

(gui

delin

es) f

rom

the

Euro

pean

Com

mis

sion

on

the

asse

ssm

ent o

f arti

ficia

l con

ditio

ns.

172

Q 3

.2.

We

did

not a

gree

with

the

obse

rvat

ion

beca

use

we

have

a sy

stem

for a

sses

sing

arti

ficia

l con

ditio

ns b

ut it

is n

ot th

e m

ost a

ccep

tabl

e to

ext

erna

l au

dit a

utho

ritie

s. It

is n

ot a

lway

s pos

sibl

e to

iden

tify

artif

icia

l con

ditio

ns a

nd p

rove

them

whe

n th

e pr

ojec

t is b

eing

app

rove

d, w

hich

mea

ns th

at

whe

neve

r cer

tain

risk

s are

iden

tifie

d, th

e pr

ojec

t is a

ppro

ved

as a

hig

h-ris

k pr

ojec

t and

supe

rvis

ed fo

r 7 y

ears

(whe

re th

e us

ual s

uper

visi

on

perio

d is

5 y

ears

). Su

ch p

roje

cts a

re c

heck

ed o

n an

ann

ual b

asis

and

whe

re a

ny n

ew c

ircum

stan

ces a

re id

entif

ied,

an

inve

stig

atio

n in

to th

e irr

egul

arity

per

tain

ing

to a

rtific

ial c

ondi

tions

is in

itiat

ed.

We

have

info

rmed

the

Euro

pean

Com

mis

sion

that

we

can

usua

lly id

entif

y po

ssib

le

artif

icia

l con

ditio

ns d

urin

g th

e pr

ojec

t im

plem

enta

tion

and

have

pro

vide

d so

me

exam

ples

of o

ur sy

stem

. A

met

hodo

logy

for e

stab

lishi

ng a

rtific

ial c

ondi

tions

was

als

o dr

awn

up a

nd a

ppro

ved

in a

ccor

danc

e w

ith C

hapt

er 7

of A

nnex

II (P

F 63

12).

Q 4

.1.

With

a v

iew

to e

nsur

ing

the

prop

er im

plem

enta

tion

of th

e O

pera

tiona

l Pro

gram

me

in a

ccor

danc

e w

ith th

e re

quire

men

ts o

f the

EU

regu

latio

ns

and

prev

ent i

rreg

ular

ities

in th

e ar

ea o

f pub

lic p

rocu

rem

ent,

the

syst

em o

f adm

inis

terin

g th

e EU

stru

ctur

al fu

nds i

n 20

14-2

020

(like

dur

ing

the

prev

ious

per

iod)

invo

lves

the

Publ

ic P

rocu

rem

ent O

ffic

e w

hich

the

Law

of t

he R

epub

lic o

f Lith

uani

a on

pub

lic p

rocu

rem

ent d

eem

s res

pons

ible

fo

r the

impl

emen

tatio

n of

the

publ

ic p

rocu

rem

ent p

olic

y an

d th

e en

forc

emen

t of t

he L

aw o

f the

Rep

ublic

of L

ithua

nia

on p

ublic

pro

cure

men

t an

d re

late

d im

plem

entin

g le

gisl

atio

n, p

reve

ntio

n an

d co

nsul

tatio

ns o

n pu

blic

pro

cure

men

t mat

ters

as w

ell a

s the

adm

inis

terin

g of

the

Cen

tral

Publ

ic P

rocu

rem

ent I

nfor

mat

ion

Syst

em. W

ith a

vie

w to

ens

urin

g th

at m

anag

emen

t che

cks a

re c

ondu

cted

pro

perly

and

dul

y, th

e M

inist

ry o

f Fi

nanc

e as

the

man

agem

ent a

utho

rity

has a

dopt

ed n

atio

nal l

egis

latio

n co

ntai

ning

pro

visi

ons s

ettin

g ou

t the

pro

cedu

re fo

r che

ckin

g pu

blic

pr

ocur

emen

t doc

umen

ts fo

r pro

ject

pro

mot

ers a

nd a

ppro

ved

a sa

mpl

e pu

blic

pro

cure

men

t che

cklis

t (th

e sa

mpl

e pu

blic

pro

cure

men

t che

cklis

t w

as a

ppro

ved

by th

e w

orki

ng p

arty

adm

inis

terin

g th

e EU

stru

ctur

al fu

nds f

or 2

014-

2020

est

ablis

hed

by O

rder

No

1K-2

43 o

f the

Min

iste

r for

Fi

nanc

e of

the

Rep

ublic

of L

ithua

nia

of 1

1 Ju

ly 2

013

esta

blis

hing

a w

orki

ng p

arty

and

by

Min

utes

No

19 o

f 29

May

201

5). M

oreo

ver,

as p

art

of p

reve

ntio

n ac

tiviti

es c

once

rnin

g irr

egul

ariti

es in

the

area

of p

ublic

pro

cure

men

t, th

e pl

an fo

r the

per

iod

of a

dmin

istra

ting

the

EU st

ruct

ural

fu

nds o

f 201

4 20

20 in

clud

es th

e im

prov

emen

t of t

he C

entra

l Pub

lic P

rocu

rem

ent I

nfor

mat

ion

Syst

em, w

hich

will

ena

ble

inte

rmed

iate

bod

ies t

o co

ntro

l pub

lic p

rocu

rem

ent p

roce

dure

s con

duct

ed u

sing

the

tool

s of t

he C

entra

l Pub

lic P

rocu

rem

ent I

nfor

mat

ion

Syst

em w

ith g

reat

er

effic

ienc

y. D

etai

led

prop

osal

s con

cern

ing

the

cust

omis

atio

n of

the

Cen

tral P

ublic

Pro

cure

men

t Inf

orm

atio

n Sy

stem

to th

e pu

blic

pro

cure

men

t co

ntro

l exe

rcis

ed b

y in

term

edia

te b

odie

s hav

e be

en su

bmitt

ed to

the

Publ

ic P

rocu

rem

ent O

ffic

e en

trust

ed w

ith th

e ad

min

istra

tion

of th

e C

entra

l Pu

blic

Pro

cure

men

t Inf

orm

atio

n Sy

stem

by

the

Law

of t

he R

epub

lic o

f Lith

uani

a on

pub

lic p

rocu

rem

ent.

The

Publ

ic P

rocu

rem

ent O

ffice

has

de

velo

ped

and

impl

emen

ted

the

Publ

ic P

rocu

rem

ent R

isk

Man

agem

ent I

nfor

mat

ion

Syst

em (‘

the

PPR

MIS

’) u

sing

a ri

sk m

anag

emen

t m

etho

dolo

gy fo

r cal

cula

ting

risks

inhe

rent

to sp

ecifi

c co

ntra

ctin

g au

thor

ities

and

thei

r pub

lic p

rocu

rem

ent p

roce

dure

thro

ugho

ut th

e pu

blic

pr

ocur

emen

t cyc

le, t

hus e

xerc

isin

g co

ntro

l the

reof

. The

PPR

MIS

ena

bles

syst

em u

sers

at a

ny ti

me

to re

ceiv

e ris

k as

sess

men

ts a

nd ri

sk p

rofil

es

of c

ontra

ctin

g au

thor

ities

and

thei

r pub

lic p

rocu

rem

ent p

roce

dure

s and

pro

cure

men

t con

tract

s, to

sele

ct h

ighe

st-r

isk

proj

ects

and

con

tract

s for

as

sess

men

t and

to c

hoos

e co

ntra

ctin

g au

thor

ities

for c

heck

s. W

ith a

vie

w to

enh

anci

ng a

nd m

aint

aini

ng th

e ad

min

istra

tive

capa

city

of

auth

oriti

es a

dmin

iste

ring

the

EU st

ruct

ural

fund

s, th

e m

anag

ing

auth

ority

col

lect

s and

ass

esse

s inf

orm

atio

n on

its o

wn

adm

inis

trativ

e ca

paci

ties a

nd th

ose

of o

ther

aut

horit

ies a

nd th

e ne

ed to

enh

ance

them

, dev

elop

s and

impr

oves

a sy

stem

for b

uild

ing

and

prom

otin

g th

ose

adm

inis

trativ

e ca

paci

ties o

n th

e ba

sis o

f inf

orm

atio

n re

ceiv

ed a

nd o

rgan

ises

cen

tralis

ed tr

aini

ng to

enh

ance

adm

inis

trativ

e ca

paci

ties.

Exam

ples

of c

entra

lised

trai

ning

eve

nts o

rgan

ised

by

the

man

agin

g au

thor

ity in

the

area

of p

ublic

pro

cure

men

t: –

1 D

ecem

ber 2

015

– “P

ublic

pro

cure

men

t: aw

ard

and

supe

rvis

ion

of c

ontra

cts (

good

s and

serv

ices

)”. T

hat t

rain

ing

even

t cov

ered

dis

pute

se

ttlem

ent s

olut

ions

bef

ore

and

afte

r the

con

tract

is a

war

ded,

spec

ific

aspe

cts o

f aw

ardi

ng c

ontra

cts,

aspe

cts c

once

rnin

g am

endm

ents

to

cont

ract

s, et

c.;

– 6

Nov

embe

r 201

5 –

“Pub

lic p

rocu

rem

ent:

awar

d an

d su

perv

isio

n of

con

tract

s (w

orks

)”. T

hat t

rain

ing

even

t cov

ered

spec

ific

aspe

cts o

f im

plem

entin

g w

orks

con

tract

s, sp

ecifi

c fe

atur

es o

f FID

IC c

ontra

cts,

pric

ing

of w

orks

con

tract

s, et

c.;

173

– 3

Nov

embe

r 201

5 –

“Pub

lic p

rocu

rem

ent:

cost

-eff

ectiv

enes

s ass

essm

ent,

a pr

actic

al w

orks

hop”

. The

eve

nt c

over

ed c

ases

whe

re p

ropo

sals

w

ere

asse

ssed

on

the

basi

s of t

he c

ost-e

ffec

tiven

ess c

riter

ion,

the

iden

tific

atio

n of

cos

t-eff

ectiv

enes

s crit

eria

, par

amet

ers a

nd th

eir c

ompa

rativ

e w

eigh

ts, s

peci

fic a

spec

ts o

f exp

ert e

valu

atio

ns, e

tc.;

– 28

Apr

il 20

14 a

nd 1

2 N

ovem

ber 2

014

– “P

ublic

pro

cure

men

t for

pro

ject

s fin

ance

d by

the

EU S

truct

ural

Fun

ds a

nd it

s sup

ervi

sion

”. T

he

even

t cov

ered

the

scop

e an

d ty

pes o

f pub

lic p

rocu

rem

ent c

ontro

ls, e

x an

te a

nd e

x po

st c

ontro

ls a

nd sp

ecifi

c as

pect

s the

reof

, ass

essm

ent a

nd

use

of in

spec

tion

resu

lts, s

ampl

ing-

base

d co

ntro

ls, p

lann

ing,

impl

emen

tatio

n an

d ev

alua

tion

ther

eof,

prac

tical

exa

mpl

es fe

atur

ing

com

plet

ed

proj

ects

, etc

. Th

e m

anag

ing

auth

ority

info

rms a

utho

ritie

s adm

inis

terin

g th

e EU

stru

ctur

al fu

nds a

bout

upc

omin

g ce

ntra

lised

trai

ning

eve

nts b

y pu

blis

hing

in

form

atio

n on

the

web

site

of t

he E

U S

truct

ural

Fun

ds w

ww

.esi

nves

ticijo

s.lt a

nd/o

r by

e-m

ail t

o co

ntac

t per

sons

indi

cate

d by

such

aut

horit

ies.

Q 5

.1.

With

a v

iew

to im

prov

ing

the

effic

ienc

y of

pay

men

t req

uest

che

cks a

nd o

n-th

e-sp

ot p

roje

ct c

heck

s in

Lith

uani

a, th

ere

are

man

agem

ent c

ontro

ls

plan

ned

to e

nsur

e th

e pr

oper

impl

emen

tatio

n. N

atio

nal l

egis

latio

n re

gula

ting

the

adm

inis

terin

g an

d fin

anci

ng o

f th

e EU

stru

ctur

al f

unds

set

s ou

t tha

t on-

the-

spot

che

cks

mus

t be

cond

ucte

d fo

r ea

ch p

roje

ct a

t lea

st o

nce

durin

g th

e im

plem

enta

tion

perio

d (e

xcep

tions

are

onl

y po

ssib

le

whe

n ap

plyi

ng a

sel

ectio

n m

etho

dolo

gy c

oord

inat

ed w

ith t

he m

anag

ing

and

the

certi

fyin

g au

thor

ities

). Th

e m

anag

ing

auth

ority

sup

ervi

ses

func

tions

del

egat

ed to

inte

rmed

iate

bod

ies,

chec

ks o

n-th

e-sp

ot c

heck

s per

form

ed b

y in

term

edia

te b

odie

s in

acco

rdan

ce w

ith th

e ris

ks id

entif

ied

and

the

plan

of r

isk

man

agem

ent m

easu

res a

nd v

erifi

es p

aym

ent r

eque

sts s

ubm

itted

by

proj

ect p

rom

oter

s and

che

cked

by

inte

rmed

iate

bod

ies.

In

tern

al p

roce

dure

s of i

nter

med

iate

bod

ies r

egul

atin

g al

l fun

ctio

ns a

nd c

ontro

ls e

xerc

ised

by

the

body

are

con

tinuo

usly

revi

ewed

and

impr

oved

ta

king

into

acc

ount

any

sel

f-de

tect

ed s

hortc

omin

gs, l

egis

lativ

e am

endm

ents

and

obs

erva

tions

put

forw

ard

by a

n au

dit a

utho

rity

and

rece

ived

du

ring

othe

r in

spec

tions

. The

re a

re c

heck

lists

to b

e co

mpl

eted

dur

ing

man

agem

ent v

erifi

catio

ns a

nd o

n-th

e-sp

ot v

erifi

catio

ns o

f in

divi

dual

op

erat

ions

, whi

ch a

re d

etai

led

and

focu

sing

on

each

asp

ect o

f el

igib

ility

and

whi

ch r

equi

re n

ot o

nly

chec

king

an

actio

n co

mpl

eted

but

als

o pr

ovid

ing

expl

anat

ions

(w

hat h

as b

een

asse

ssed

and

/or

chec

ked

whe

n co

mpl

etin

g th

e ac

tion)

. Che

cklis

ts c

onta

in d

etai

led

inst

ruct

ions

to th

e st

aff w

ith a

vie

w to

ens

urin

g a

unifo

rm u

nder

stan

ding

. Che

cklis

ts, l

ike

inte

rnal

pro

cedu

res,

are

cont

inuo

usly

revi

ewed

and

impr

oved

to d

etec

t as

man

y in

cons

iste

ncie

s as

pos

sibl

e. M

anag

emen

t ve

rific

atio

ns a

nd o

n-th

e-sp

ot v

erifi

catio

ns o

f in

divi

dual

ope

ratio

ns c

ondu

cted

by

an

inte

rmed

iate

bod

y (th

e im

plem

entin

g au

thor

ity) a

re s

uppl

emen

ted

with

var

ious

act

ions

to p

reve

nt ir

regu

larit

ies

and

redu

ce ri

sks

(e.g

. tra

inin

g fo

r app

lican

ts a

nd p

roje

ct p

rom

oter

s, pr

elim

inar

y in

spec

tion

of d

ocum

ents

sele

cted

, cou

nsel

ling,

etc

.), th

us se

ekin

g to

info

rm p

roje

ct p

rom

oter

s as

ear

ly a

s pos

sibl

e ab

out r

equi

rem

ents

to b

e re

spec

ted

and

abou

t pos

sibl

e ne

gativ

e co

nseq

uenc

es in

the

even

t of n

on-c

ompl

ianc

e.

The

man

agin

g au

thor

ity e

nsur

es th

at th

e ce

rtify

ing

auth

ority

rec

eive

s al

l req

uire

d in

form

atio

n on

exp

endi

ture

-rel

ated

pro

cedu

res

and

chec

ks

cond

ucte

d in

the

cour

se o

f app

rova

l. Th

e ce

rtify

ing

auth

ority

, exe

rcis

ing

the

right

stip

ulat

ed in

par

agra

ph 7

0 of

the

Rul

es fo

r the

adm

inis

tratio

n an

d fin

anci

ng o

f ope

ratio

nal p

rogr

amm

es a

ppro

ved

by R

esol

utio

n N

o 12

25 o

f the

Gov

ernm

ent o

f the

Rep

ublic

of L

ithua

nia

of 1

2 N

ovem

ber

2008

app

rovi

ng t

he R

ules

for

adm

inis

terin

g an

d fin

anci

ng o

pera

tiona

l pr

ogra

mm

es a

nd t

akin

g in

to a

ccou

nt a

ny i

nfor

mat

ion

avai

labl

e on

irr

egul

ariti

es d

etec

ted

and

not

elim

inat

ed,

the

resu

lts o

f its

che

cks

and

the

audi

t ob

serv

atio

ns a

nd r

ecom

men

datio

ns g

iven

by

the

audi

t au

thor

ity, t

he C

ourt

and

the

Euro

pean

Com

mis

sion

, ded

ucts

(red

uces

) cer

tain

exp

endi

ture

and

/or d

oes

not d

ecla

re it

if it

can

not c

onfir

m th

at

the

expe

nditu

re is

elig

ible

for d

ecla

ring

to th

e Eu

rope

an C

omm

issi

on.

Q 6

.1.

Yes

Q 6

.2.

No

174

Q 6

.3.

Yes

; W

ith a

vie

w to

ens

urin

g th

e im

plem

enta

tion

of c

ompe

titio

n pr

inci

ples

and

pre

vent

vio

latio

ns re

latin

g to

stat

e ai

d, th

e ad

min

iste

ring

of th

e EU

st

ruct

ural

fund

s in

2014

-202

0 in

volv

es th

e C

ompe

titio

n C

ounc

il of

the

Rep

ublic

of L

ithua

nia

(‘th

e C

ompe

titio

n C

ounc

il’).

The

Com

petit

ion

Cou

ncil

cons

ults

var

ious

aut

horit

ies a

nd p

roje

ct p

rom

oter

s on

mat

ters

of t

he c

ompe

titio

n po

licy

and

stat

e ai

d, c

ondu

cts e

xper

t eva

luat

ions

of

stat

e ai

d pr

ojec

ts a

nd o

rgan

ises

trai

ning

(e.g

. on

17 D

ecem

ber 2

015

the

Com

petit

ion

Cou

ncil

is to

hol

d a

conf

eren

ce “

Stat

e ai

d: re

leva

nt is

sues

an

d pr

actic

al a

pplic

atio

n”).

The

conf

eren

ce is

to d

iscu

ss th

e pr

inci

ples

and

pro

cedu

res o

f gra

ntin

g st

ate

aid

and

othe

r pra

ctic

al a

spec

ts. W

ith a

vi

ew to

impr

ovin

g st

ate

aid

cont

rol a

nd c

ompl

ianc

e w

ith le

gisl

atio

n on

stat

e ai

d, th

e M

inis

try o

f Fin

ance

as t

he m

anag

ing

auth

ority

car

ries o

ut

chec

ks o

n tw

o le

vels

(on

the

leve

l of t

he im

plem

entin

g m

easu

re o

f a p

riorit

y of

the

Ope

ratio

nal P

rogr

amm

e fo

r EU

fund

s inv

estm

ents

for

2014

-202

0 (b

y co

mpl

etin

g a

gene

ral s

tate

aid

che

cklis

t (th

e sa

mpl

e ch

eckl

ist o

n st

ate

aid

and

de m

inim

is a

id g

rant

ed o

r not

gra

nted

is a

ppro

ved

by th

e w

orki

ng p

arty

adm

inis

terin

g th

e EU

stru

ctur

al fu

nds f

or 2

014-

2020

est

ablis

hed

by O

rder

No

1K-2

43 o

f the

Min

iste

r for

Fin

ance

of t

he

Rep

ublic

of L

ithua

nia

of 1

1 Ju

ly 2

013

esta

blis

hing

a w

orki

ng p

arty

and

by

Min

utes

No

8 of

27

June

201

4) a

nd o

n th

e pr

ojec

t lev

el (t

he

chec

klis

t for

pro

ject

com

plia

nce

with

stat

e ai

d ru

les (

the

form

of t

he c

heck

list f

or p

roje

ct c

ompl

ianc

e w

ith st

ate

aid

rule

s is a

ppro

ved

by

min

istri

es to

geth

er w

ith th

e pr

ojec

t fin

anci

ng te

rms a

nd c

ondi

tions

on

the

basi

s of s

ampl

e ch

eckl

ists

pre

sent

ed b

y th

e m

anag

ing

auth

ority

or a

sa

mpl

e ch

eckl

ist f

or p

roje

ct c

ompl

ianc

e w

ith d

e m

inim

is a

id ru

les a

ppro

ved

by M

inut

rs N

o 17

of t

he w

orki

ng p

arty

adm

inis

terin

g th

e EU

st

ruct

ural

ass

ista

nce

for 2

014-

2020

of 2

4 A

pril

2015

). M

oreo

ver,

whe

n su

perv

isin

g ta

sks d

eleg

ated

to in

term

edia

te b

odie

s, in

the

risk

man

agem

ent p

lan

the

man

agem

ent a

utho

rity

prov

ided

for a

mea

sure

to c

heck

whe

ther

inte

rmed

iate

bod

ies u

sing

the

gene

ral c

heck

list f

or st

ate

aid

esta

blis

hed

the

gran

ting

or n

on-g

rant

ing

of st

ate

aid

unde

r the

fina

ncin

g te

rms a

nd c

ondi

tions

, and

whe

re st

ate

aid

was

gra

nted

, the

m

anag

emen

t aut

horit

y ch

ecke

d w

heth

er im

plem

entin

g au

thor

ities

pro

perly

est

ablis

hed

the

com

plia

nce

of st

ate

aid

with

stat

e ai

d ru

les o

n th

e ba

sis o

f a d

etai

led

stat

e ai

d ch

eckl

ist d

raw

n up

by

an in

term

edia

te b

ody

and

taki

ng in

to a

ccou

nt th

e qu

ality

of c

heck

s com

plet

ed. A

s men

tione

d in

the

repl

y to

Que

stio

n 4.

1, w

ith a

vie

w to

enh

anci

ng a

nd m

aint

aini

ng th

e ad

min

istra

tive

capa

city

of a

utho

ritie

s adm

inis

terin

g th

e EU

st

ruct

ural

fund

s, th

e m

anag

ing

auth

ority

col

lect

s and

ass

esse

s inf

orm

atio

n on

its o

wn

adm

inis

trativ

e ca

paci

ties a

nd th

ose

of o

ther

aut

horit

ies

and

the

need

to e

nhan

ce th

em, d

evel

ops a

nd im

prov

es a

syst

em fo

r bui

ldin

g an

d pr

omot

ing

thos

e ad

min

istra

tive

capa

citie

s on

the

basi

s of

info

rmat

ion

rece

ived

and

org

anis

es c

entra

lised

trai

ning

on

stat

e ai

d to

pics

to e

nhan

ce a

dmin

istra

tive

capa

citie

s. In

201

4 an

d 20

15 th

ere

wer

e tra

inin

g ev

ents

org

anis

ed o

n st

ate

aid

topi

cs p

rese

ntin

g th

e co

ncep

t of s

tate

aid

and

its f

eatu

res,

gene

ral p

rinci

ples

for g

rant

ing

stat

e ai

d, ri

sks o

f un

law

ful s

tate

aid

in th

e ar

eas o

f edu

catio

n, sc

ienc

e, so

cial

pro

tect

ion,

em

ploy

men

t and

oth

ers a

s wel

l as p

ract

ical

prin

cipl

es o

f gra

ntin

g st

ate

aid.

Th

e m

anag

ing

auth

ority

ens

ures

that

the

certi

fyin

g au

thor

ity re

ceiv

es a

ll re

quire

d in

form

atio

n on

exp

endi

ture

-rel

ated

pro

cedu

res a

nd c

heck

s co

nduc

ted

in th

e co

urse

of a

ppro

val.

The

certi

fyin

g au

thor

ity, e

xerc

isin

g th

e rig

ht st

ipul

ated

in p

arag

raph

70

of th

e R

ules

for t

he a

dmin

istra

tion

and

finan

cing

of o

pera

tiona

l pro

gram

mes

app

rove

d by

Res

olut

ion

No

1225

of t

he G

over

nmen

t of t

he R

epub

lic o

f Lith

uani

a of

12

Nov

embe

r 20

08 a

ppro

ving

the

Rul

es fo

r adm

inis

terin

g an

d fin

anci

ng o

pera

tiona

l pro

gram

mes

and

taki

ng in

to a

ccou

nt a

ny in

form

atio

n av

aila

ble

on

irreg

ular

ities

det

ecte

d an

d no

t elim

inat

ed, t

he re

sults

of i

ts c

heck

s and

the

audi

t obs

erva

tions

and

reco

mm

enda

tions

giv

en b

y th

e au

dit

auth

ority

, the

Eur

opea

n C

ourt

of A

udito

rs a

nd th

e Eu

rope

an C

omm

issi

on, d

educ

ts (r

educ

es) c

erta

in e

xpen

ditu

re a

nd/o

r doe

s not

dec

lare

it if

it

cann

ot c

onfir

m th

at th

e ex

pend

iture

is e

ligib

le fo

r dec

larin

g to

the

Euro

pean

Com

mis

sion

.

Q 7

.1.

Nat

iona

l leg

isla

tion

sets

out

that

all

inte

rmed

iate

bod

ies

draw

ing

up im

plem

enta

tion

plan

s fo

r im

plem

entin

g m

easu

res

rela

ting

to

prio

ritie

s und

er th

e O

pera

tiona

l Pro

gram

me

for E

U F

unds

Inve

stm

ents

for 2

014-

2020

and

setti

ng p

roje

ct fi

nanc

ing

cond

ition

s mus

t

175

cons

ider

app

lyin

g a

sim

plifi

ed p

roce

dure

for p

ayin

g ex

pend

iture

s to

pro

ject

s. D

urin

g th

e fin

anci

ng p

erio

d of

201

4-20

20 L

ithua

nia

esta

blis

hed

a fla

t-rat

e sc

hem

e fo

r in

dire

ct c

osts

of

proj

ects

fin

ance

d by

the

EU

Stru

ctur

al F

unds

(pr

ojec

t ad

min

istra

tion

cost

s)

(Ord

er N

o 1K

-316

of

the

Min

iste

r fo

r Fi

nanc

e of

the

Rep

ublic

of

Lith

uani

a of

8 O

ctob

er 2

014

appr

ovin

g th

e R

ules

for

pro

ject

ad

min

istra

tion

and

finan

cing

, Ann

ex 1

0). A

ll in

dire

ct c

osts

of p

roje

cts

will

be

finan

ced

by a

pply

ing

the

flat r

ate.

On

26 J

une

2015

th

e m

anag

ing

auth

ority

org

anis

ed a

con

fere

nce

“Pos

sibi

litie

s fo

r app

lyin

g a

sim

plifi

ed p

roce

dure

for p

ayin

g ex

pend

iture

s in

201

4-20

20”

whe

re re

pres

enta

tives

of n

atio

nal a

utho

ritie

s pla

nnin

g an

d im

plem

entin

g m

easu

res o

f the

Ope

ratio

nal P

rogr

amm

e (in

clud

ing

thos

e fin

ance

d by

the

ER

DF

and/

or t

he C

F) w

ere

told

abo

ut p

ossi

bilit

ies

of a

pply

ing

a si

mpl

ified

pro

cedu

re f

or p

ayin

g ex

pend

iture

s and

its b

enef

its in

the

proc

ess o

f adm

inis

terin

g th

e EU

stru

ctur

al fu

nds.

L

UX

EM

BO

UR

G

Q 1

.1.

FEA

DER

: Oui

FEA

MP:

Ne

s’ap

pliq

ue p

as

FSE:

Oui

FED

ER: O

ui

FC: N

e s’

appl

ique

pas

Q 1

.2.

FED

ER: I

l s’a

git u

niqu

emen

t d’in

dica

teur

s com

mun

s et f

inan

cier

s

FSE:

Ind

icat

eurs

spé

cifiq

ues

au n

ivea

u de

s pr

ojet

s en

fon

ctio

n de

la

natu

re d

es p

roje

ts (

proj

ets

de f

orm

atio

n, d

’inse

rtion

, d’

inse

rtion

soci

o-pr

ofes

sion

nelle

et d

e sy

stèm

e/st

ruct

ure)

FEA

DER

: Des

indi

cate

urs

supp

lém

enta

ires

ne s

ont p

as e

ncor

e dé

term

inés

, mai

s il

n'es

t pas

exc

lu q

ue le

Lux

embo

urg

aura

reco

urs

à de

s ind

icat

eurs

aut

res q

ue c

eux

prév

u pa

r le

CC

ES c

adre

com

mun

d'év

alua

tion

et d

e su

ivi.

Q 1

.3.

Oui

;

FED

ER: I

l s’a

git d

’indi

cate

urs d

e ré

alis

atio

n co

mm

uns f

ourn

is p

ar c

haqu

e bé

néfic

iaire

176

FSE:

Les

don

nées

fin

anci

ères

et d

e su

ivi s

ont c

olle

ctés

sem

estri

elle

men

t au

nive

au d

es o

péra

tions

. Leu

r ré

alité

et e

xact

itude

son

t vér

ifiée

s se

mes

triel

lem

ent s

ur b

ase

d’un

con

trôle

ex

ante

à 1

00%

sur p

ièce

et s

ur p

lace

Q 2

.2.

Non

;

FED

ER: L

e Lu

xem

bour

g n’

utili

se p

as le

s ins

trum

ents

fina

ncie

rs

FSE:

Vu

la ta

ille

de l’

enve

lopp

e fin

anci

ère,

le F

SE a

u Lu

xem

bour

g n’

a pa

s rec

ours

aux

inst

rum

ents

fina

ncie

rs

FEA

DER

: L'au

torit

é de

ges

tion

du F

eade

r ne

réd

ige

pas

de te

l rap

port

car

le F

eade

r n'

a pa

s m

is e

n œ

uvre

des

mes

ures

aya

nt r

ecou

rs à

des

in

stru

men

ts fi

nanc

iers

.

Q 4

.1.

Non

Q 5

.1.

Oui

; FE

DER

: Nou

velle

che

ck-li

st d

e co

ntrô

le (m

esur

e ex

-pos

t),

Not

e d’

orie

ntat

ion

sur l

es in

cide

nces

de

la rè

glem

enta

tion

sur l

es a

ides

d’É

tat e

n m

atiè

re d

e R

DI (

prév

entif

),

Réu

nion

s de

sens

ibili

satio

n av

ec le

bén

éfic

iaire

(pré

vent

if),

Form

atio

n du

staf

f FS

E: D

es n

égoc

iatio

ns e

t dis

cuss

ions

bila

téra

les

avec

les

porte

urs

de p

roje

t (bé

néfic

iaire

s) o

nt li

eu lo

rs d

e l’é

tabl

isse

men

t de

l

a co

nven

tion

FSE.

Cec

i per

met

de

clar

ifier

les é

vent

uelle

s am

bigu

ïtés.

Par l

a su

ite, l

’Aut

orité

de

gest

ion

effe

ctue

des

con

trôle

s ex-

ante

à 1

00%

sur p

ièce

s et s

ur p

lace

de

tout

es le

s dép

ense

s

déc

laré

es e

t ce

sur u

ne

base

sem

estri

elle

. El

le a

éga

lem

ent r

ecou

rs a

ux o

ptio

ns d

e co

uts s

impl

ifiés

, ce

qui p

erm

et d

e m

ieux

cib

ler l

es m

issi

ons d

e co

ntrô

les.

Q 6

.1.

Oui

Q 6

.2.

Non

Q 6

.3.

Oui

; FE

DER

: Nou

velle

che

ck-li

st d

e co

ntrô

le (m

esur

e ex

-pos

t),

Not

e d’

orie

ntat

ion

sur l

es in

cide

nces

de

la rè

glem

enta

tion

sur l

es a

ides

d’É

tat e

n m

atiè

re d

e R

DI (

prév

entif

),

Réu

nion

s de

sens

ibili

satio

n av

ec le

bén

éfic

iaire

(pré

vent

if),

Form

atio

n du

staf

f. FS

E: E

n ce

qui

con

cern

e l’A

G, l

es m

esur

es p

réve

ntiv

es su

pplé

men

taire

s ne

sont

pas

jugé

es n

éces

saire

s car

des

déf

icie

nces

ou

des p

robl

èmes

sy

stém

ique

s n’o

nt p

as é

té d

écel

és e

n la

mat

ière

(les

mes

ures

app

licab

les a

ctue

llem

ent s

ont s

uffis

ante

s).

177

Q 7

.1.

FED

ER: P

rése

ntat

ion

de l’

optio

n au

x bé

néfic

iaire

s pot

entie

ls,

Réu

nion

s de

sens

ibili

satio

n,

Gui

de d

e l’u

tilis

ateu

r ave

c re

com

man

datio

ns p

our e

ncou

rage

r les

bén

éfic

iaire

s à re

cour

ir à

cette

opt

ion.

M

AL

TA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

By

way

of

exam

ple,

the

focu

s w

ill b

e on

ope

ratio

nal p

rogr

amm

es I

and

II

unde

r th

e C

ohes

ion

Polic

y. B

oth

list r

esul

ts-r

elat

ed

indi

cato

rs in

line

with

the

obje

ctiv

es o

f EU

202

0. T

hose

indi

cato

rs w

ill fa

cilit

ate

deci

sion

s as

to w

heth

er th

e ob

ject

ives

hav

e be

en

atta

ined

or

not.

Exam

ples

of

indi

cato

rs i

nclu

de 'u

nder

taki

ngs

use

the

inte

rnet

to

mak

e sa

les

thro

ugh

e-co

mm

erce

’ an

d ‘o

lder

w

orke

rs fi

ndin

g jo

bs, i

n sp

ite o

f the

ir ag

e’.

Q 1

.3.

Yes

;

The

mea

sure

s will

be

clos

ely

linke

d an

d de

pend

on

the

prog

ress

to b

e m

ade

at th

at st

age

of im

plem

enta

tion.

Q 2

.1.

Yes

;

Trai

ning

for o

ffic

ials

/Dat

abas

e pr

ovid

ing

solu

tions

to th

e ex

istin

g re

quire

men

ts. I

t sho

uld

also

be

note

d th

at a

s fa

r as

the

finan

cial

inst

rum

ents

ar

e co

ncer

ned,

all

of th

e gu

idan

ce n

otes

issu

ed b

y th

e C

omm

issi

on w

ill b

e ta

ken

into

acc

ount

.

178

Q 4

.1.

Yes

. The

se m

easu

res i

nclu

de m

anua

ls a

nd g

uide

lines

for b

enef

icia

ries,

train

ing

for t

hese

ben

efic

iarie

s and

, whe

re n

eces

sary

, iss

ue o

f circ

ular

s.

Q 5

.1.

Yes

; Si

mpl

ifica

tion,

im

prov

emen

t of

dat

abas

es, b

ilate

ral

mee

tings

bet

wee

n th

e M

anag

emen

t A

utho

rity

and

the

bene

ficia

ries

in t

he p

rese

nce

of

seni

or o

ffic

ials

from

the

cont

ract

s dep

artm

ent a

nd th

e de

partm

ent m

akin

g th

e pa

ymen

ts.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

; Th

e fu

nds a

re a

ll ce

ntra

lised

und

er o

ne M

anag

emen

t Aut

horit

y th

at c

oord

inat

es w

ith th

e St

ate

Aid

Mon

itorin

g B

oard

dur

ing

the

proc

essi

ng o

f ap

plic

atio

ns fo

r any

giv

en p

roje

ct.

Q 7

.1.

The

inte

ntio

n is

to a

dopt

‘fla

t rat

e fin

anci

ng’ i

n re

latio

n to

the

two

fund

s. In

add

ition

, the

‘sta

ndar

d sc

ale

of u

nit c

osts

’ will

be

used

in

rela

tion

to th

e Eu

rope

an S

ocia

l Fun

d.

N

ET

HE

RL

AN

DS

Q 1

.1.

EAFR

D: 0

EMFF

: 0

ESF:

Yes

ERD

F: Y

es

CF:

0

Q 1

.2.

With

reg

ard

to t

he E

SF, w

e w

ould

ref

er y

ou t

o th

e ES

F 20

14-2

020

oper

atio

nal

prog

ram

me,

whi

ch g

ives

the

se i

ndic

ator

s, an

d w

hich

is th

e su

bjec

t of a

n an

nual

repo

rt.

179

With

rega

rd to

the

ERD

F, p

leas

e se

e th

e fo

llow

ing

brea

kdow

n by

man

agin

g au

thor

ity.

Q 1

.3.

Yes

Q 2

.2.

No;

The

guid

ance

refe

rred

to re

late

s to

the

new

201

4-20

20 p

rogr

amm

ing

perio

d. N

o fin

anci

ng in

stru

men

ts fo

r tha

t per

iod

have

yet

bee

n la

unch

ed

in th

e N

ethe

rland

s.

Q 3

.5.

Che

cks h

ave

been

car

ried

out a

nd im

prov

emen

ts h

ave

been

foun

d.

Q 3

.6.

The

Net

herla

nds h

as d

raw

n up

an

erro

r rat

e ac

tion

plan

for t

he ru

ral d

evel

opm

ent p

rogr

amm

e, in

con

sulta

tion

with

the

Euro

pean

Com

mis

sion

, an

d ha

s inf

orm

ed th

e C

omm

issi

on a

ccor

ding

ly.

Q 4

.1.

The

Proc

urem

ent A

ct 2

012

(Aan

best

edin

gsw

et 2

012,

‘Aw

2012

’) e

nter

ed in

to fo

rce

in th

e N

ethe

rland

s on

1 A

pril

2013

. It i

s the

mos

t rec

ent

trans

posa

l of t

he E

urop

ean

dire

ctiv

es fo

r the

cla

ssic

sect

ors (

2004

/18/

EC) a

nd u

tiliti

es (2

004/

17/E

C).

The

requ

irem

ents

refe

rred

to a

re

inco

rpor

ated

her

e. T

he A

ct a

lso

incl

udes

the

rule

s gov

erni

ng p

ublic

con

tract

s to

whi

ch th

e Eu

rope

an re

quire

men

ts d

o no

t app

ly. T

hese

rule

s are

sp

elt o

ut in

mor

e de

tail

in th

e Pr

opor

tiona

lity

Gui

de (G

ids P

ropo

rtion

alite

it) a

nd th

e Pr

ocur

emen

t Reg

ulat

ion

for P

ublic

Wor

ks 2

012

(Aan

best

edin

gsre

glem

ent W

erke

n 20

12, ‘

AR

W 2

012’

), bo

th o

f whi

ch se

t out

lega

lly b

indi

ng g

uide

lines

. In

cond

uctin

g pr

ocur

emen

t ope

ratio

ns

cont

ract

ing

auth

oriti

es m

ust c

ompl

y w

ith th

e pr

inci

ple

of p

ropo

rtion

ality

. If t

hey

depa

rt fr

om a

ny a

spec

t of t

he P

ropo

rtion

ality

Gui

de th

ey m

ust

give

reas

ons f

or d

oing

so.

Q 5

.1.

Yes

; A

s reg

ards

the

ERD

F, th

ese

mea

sure

s are

des

crib

ed e

xten

sive

ly in

the

impr

ovem

ent p

lan

and

the

adju

sted

wor

k in

stru

ctio

ns in

con

nect

ion

with

th

e in

terr

uptio

n of

pay

men

t. So

me

(min

or) m

easu

res

have

als

o be

en ta

ken

with

resp

ect t

o th

e ES

F. W

ith re

gard

to m

anag

emen

t ver

ifica

tions

, m

ore

stru

ctur

ed in

form

atio

n fo

r ver

ifica

tion

team

s (e

.g. Q

&A

s fo

r sta

ff).

Effe

ctiv

enes

s of

ver

ifica

tions

: use

of s

tatis

tical

rand

om s

ampl

ing

for

all m

easu

res (

actio

n C

was

add

ed o

nly

late

r). W

hat e

vide

nce

is th

ere

that

this

has

bee

n ef

fect

ive?

Esp

ecia

lly th

e fir

st a

nd se

cond

line

err

or ra

te:

a re

cent

new

figu

re fr

om th

e au

dit a

utho

rity

show

ing

abou

t 1.0

% g

ross

for p

roje

ct a

udits

car

ried

out i

n 20

15 o

n de

clar

atio

ns m

ade

in 2

014.

Q 6

.1.

Yes

Q 6

.2.

No;

Th

e re

gula

tions

for t

he E

MFF

and

the

EAFR

D e

xpre

ssly

indi

cate

whe

n st

ate

aid

may

be

invo

lved

: see

for e

xam

ple

Reg

ulat

ion

1305

/201

3.

Mea

sure

s with

in th

e sc

ope

of A

rticl

e 42

of t

he T

FEU

do

not i

nvol

ve st

ate

aid.

The

re is

no

sim

ilar p

rovi

sion

for t

he E

SF o

r the

ER

DF.

Q 6

.3.

Yes

; W

here

a se

ctio

n of

a p

rogr

amm

e m

ay c

ompr

ise

stat

e ai

d, th

e m

anag

emen

t aut

horit

y ha

ndlin

g pr

ojec

t app

licat

ions

mus

t jud

ge w

heth

er th

e ap

plic

atio

n is

con

trary

to th

e st

ate

aid

rule

s. Th

e M

embe

r Sta

tes c

anno

t cor

rect

the

syst

emic

flaw

refe

rred

to in

que

stio

n 6.

2. R

egul

atio

ns

180

cann

ot b

e am

ende

d by

the

Mem

ber S

tate

s. Th

is d

oes n

ot c

hang

e th

e fa

ct th

at th

e re

spon

sibl

e au

thor

ities

hav

e ex

perti

se in

stat

e ai

d.

Q 7

.1.

The

Min

iste

rial o

rder

on

Min

istry

of E

cono

mic

Aff

airs

Eur

opea

n su

bsid

ies (

Reg

elin

g Eu

rope

se E

Z-su

bsid

ies)

incl

udes

a si

mpl

ified

co

st c

alcu

latio

n fo

r elig

ible

labo

ur c

osts

. No

othe

r sys

tem

of c

alcu

latio

n fo

r lab

our c

osts

may

be

used

. The

sim

plifi

ed la

bour

cos

t ca

lcul

atio

n is

pro

mot

ed in

the

ERD

F ha

ndbo

ok a

nd in

the

expl

anat

ory

note

s for

reci

pien

ts.

PO

LA

ND

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

For

the

purp

ose

of m

easu

ring

the

effe

cts

of in

terv

entio

n un

der

the

oper

atio

nal p

rogr

amm

es c

o-fin

ance

d by

the

ERD

F/C

F/ES

F, a

ra

ft of

indi

cato

rs a

pplie

d at

pro

ject

leve

l der

ived

from

the

Com

mon

Lis

t of K

ey In

dica

tors

pre

pare

d by

the

Min

iste

r for

Reg

iona

l D

evel

opm

ent m

ust b

e us

ed. T

he li

st c

ompr

ises

the

com

mon

indi

cato

rs a

t Eur

opea

n le

vel s

et in

the

fund

reg

ulat

ions

and

the

key

indi

cato

rs se

t at n

atio

nal l

evel

.

The

Man

agin

g A

utho

rity

may

als

o ap

ply

addi

tiona

l pr

ogra

mm

e-sp

ecifi

c in

dica

tors

whi

ch a

re h

ighl

y de

taile

d w

ith a

vie

w t

o m

onito

ring

the

effe

cts o

f the

ope

ratio

nal p

rogr

amm

e as

a w

hole

.

For

exam

ple,

in

the

case

of

the

ESF,

the

raf

t of

mea

sure

s in

clud

es a

bout

80

indi

cato

rs f

or m

onito

ring

regi

onal

ope

ratio

nal

prog

ram

mes

and

327

indi

cato

rs fo

r mon

itorin

g in

terv

entio

n by

the

natio

nal p

rogr

amm

e (K

now

ledg

e Ed

ucat

ion

Dev

elop

men

t OP)

. A

lis

t of

ke

y in

dica

tors

fo

r th

e ER

DF

and

CF

is

avai

labl

e at

:

181

http

://w

ww

.mir.

gov.

pl/m

edia

/227

4/w

ytyc

zne_

nr_1

3_22

0415

_zal

_1.p

df

As

rega

rds

the

EAFR

D,

Pola

nd p

lans

to

use

an a

dditi

onal

ind

icat

or ‘

Num

ber

of b

enef

icia

ries

of i

nves

tmen

ts t

o pr

even

t th

e de

stru

ctio

n of

agr

icul

tura

l pr

oduc

tion

pote

ntia

l’, w

ith a

vie

w t

o re

porti

ng o

n th

e re

sults

of

spec

ific

obje

ctiv

e 3B

(fo

cus

area

). In

form

atio

n co

ncer

ning

tha

t in

dica

tor

was

inc

lude

d in

the

201

4-20

RD

P in

Cha

pter

11

of t

he I

ndic

ator

Pla

n, p

oint

11.

5.

Prog

ram

me-

Spec

ific

Targ

et a

nd O

utpu

t.

It is

als

o pl

anne

d to

use

the

addi

tiona

l nat

iona

l ind

icat

ors s

et in

Ann

ex N

o 5

to th

e 20

14-2

0 R

DP.

Q 1

.3.

Yes

;

Info

rmat

ion

on th

e ch

oice

of i

ndic

ator

s, an

est

imat

ion

of th

eir v

alue

and

fact

ors i

nflu

enci

ng th

e ac

hiev

emen

t of m

ilest

ones

and

targ

ets i

s set

out

in

the

anne

x to

the

oper

atio

nal p

rogr

amm

e. T

his

Ann

ex c

onta

ins

the

info

rmat

ion

requ

ired

by A

rticl

e 4

of Im

plem

entin

g R

egul

atio

n (E

U) N

o 21

5/20

14.

Und

er t

he 2

014-

20 f

inan

cial

per

spec

tive,

a r

epor

ting

syst

em c

omm

on t

o al

l op

erat

iona

l pr

ogra

mm

es h

as b

een

crea

ted

in P

olan

d w

hich

co

mpr

ises

col

lect

ion

of d

ata

on in

divi

dual

pro

gram

mes

, in

parti

cula

r in

term

s of

fin

anci

al a

nd p

hysi

cal i

ndic

ator

s. Th

e da

ta c

olla

ted

in th

e ce

ntra

l IT

sys

tem

des

igne

d fo

r th

e re

quire

men

ts o

f th

e 20

14-2

0 fin

anci

al p

ersp

ectiv

e fo

rm a

bas

is f

or r

elia

ble

and

accu

rate

rep

orts

. Th

e M

anag

ing

Aut

horit

ies w

ill m

onito

r ach

ieve

men

t of t

he p

erfo

rman

ce fr

amew

ork

targ

ets o

n an

ong

oing

bas

is (i

nclu

ding

with

in th

e fr

amew

ork

of

natio

nal p

erio

dic

repo

rts) a

nd w

ill re

spon

d to

dev

elop

men

ts th

at c

ould

impa

ct a

chie

vem

ent o

f tar

gets

.

For e

xam

ple,

usi

ng th

e IT

syst

em re

sour

ces,

we

will

be

able

to p

rese

nt c

ompr

ehen

sive

info

rmat

ion

on th

e im

plem

enta

tion

of th

e ES

F in

Pol

and

incl

udin

g de

tails

of t

he p

artic

ipan

t stru

ctur

e (a

ge, e

duca

tion,

em

ploy

men

t sta

tus,

mem

bers

hip

of sp

ecia

l gro

ups,

disa

bilit

y, e

tc.),

indi

cato

rs (s

ee

abov

e) a

nd p

rogr

ess w

ith fi

nanc

ial i

mpl

emen

tatio

n of

the

ESF.

It sh

ould

, how

ever

, be

born

e in

min

d th

at it

will

not

be

poss

ible

to su

mm

aris

e th

e im

pact

of E

U fu

nds i

n th

e 20

14-2

0 fin

anci

al p

ersp

ectiv

e un

til

suff

icie

nt p

rogr

ess h

as b

een

mad

e - 2

017

will

be

too

early

a st

age

to p

rodu

ce su

mm

ary

conc

lusi

ons.

As

rega

rds

the

EAFR

D, i

t sh

ould

be

poss

ible

to

pres

ent

mea

ning

ful

data

in

the

mid

-term

rev

iew

of

the

mul

tiann

ual

finan

cial

fra

mew

ork

plan

ned

for

2017

for

a s

mal

l pro

porti

on o

f th

e op

erat

ions

car

ried

out u

nder

the

2014

-20

RD

P. T

he f

irst m

eani

ngfu

l dat

a on

the

impa

ct o

f op

erat

ions

and

exp

endi

ture

will

be

set o

ut in

the

revi

ew o

f the

per

form

ance

fram

ewor

k fo

r 201

4-18

.

Q 2

.2.

Yes

;

Issu

es r

elat

ing

to f

inan

cial

eng

inee

ring

inst

rum

ents

are

dis

cuss

ed a

t re

gula

r m

eetin

gs w

ith t

he M

anag

ing

Aut

horit

ies

of o

pera

tiona

l pr

ogra

mm

es f

or 2

007-

13,

incl

udin

g as

reg

ards

mon

itorin

g an

d re

porti

ng w

ithin

the

FEI

. Th

e gu

idan

ce n

ote

on r

epor

ting

and

finan

cial

in

stru

men

ts (

EGES

IF-1

5001

5-06

/05/

2015

) w

as s

ent

to a

ll M

anag

ing

Aut

horit

ies

of o

pera

tiona

l pr

ogra

mm

es f

or 2

007-

13 w

ith a

vie

w t

o

182

impl

emen

ting

it.

Q 3

.5.

The

findi

ngs i

ndic

ated

in b

ox 7

.6 w

ere

incl

uded

in th

e au

dit f

indi

ngs o

f the

Sta

tem

ent o

f Ass

uran

ce fo

r the

201

4 fin

anci

al y

ear (

DA

S 20

14) a

s re

gard

s EA

FRD

exp

endi

ture

dat

ed 2

4.03

.201

5 —

ref.

PF 6

800.

The

cas

e co

ncer

ned

non-

com

plia

nce

with

the

natio

nal p

ublic

pro

cure

men

t ru

les i

n M

easu

re 1

25. T

he Im

plem

entin

g A

utho

rity

(in th

is c

ase

the

prov

inci

al g

over

nmen

t) w

as re

spon

sibl

e fo

r car

ryin

g ou

t che

cks o

n pu

blic

pr

ocur

emen

t pro

cedu

res i

n th

e 20

07-1

3 R

DP.

The

pro

vinc

ial g

over

nmen

t car

ries o

ut c

heck

s on

the

com

plia

nce

of c

ontra

ct a

war

d pr

oced

ures

w

ith p

ublic

pro

cure

men

t law

and

on

eval

uatio

n pr

oced

ures

with

in th

e pu

blic

pro

cure

men

t fra

mew

ork.

The

cas

e w

as re

-exa

min

ed b

y th

e Im

plem

entin

g A

utho

rity.

Pol

and

pres

ente

d its

pos

ition

on

the

prel

imin

ary

audi

t fin

ding

s ind

icat

ing

that

it d

id n

ot a

gree

with

the

Cou

rt of

A

udito

rs’ f

indi

ngs.

In sp

ite o

f thi

s, th

e C

ourt’

s fin

ding

s wer

e m

aint

aine

d in

the

insp

ectio

n fin

ding

s of 1

1 Ju

ne 2

015.

In

con

nect

ion

with

sim

ilar i

rreg

ular

ities

det

ecte

d in

the

impl

emen

tatio

n of

the

lsk

ie R

OP

in th

e co

urse

of a

n an

alys

is o

f im

prov

emen

ts to

the

inte

rnal

aud

it sy

stem

, as

of 1

Oct

ober

201

4, M

A

lsk

ie R

OP

intro

duce

d an

add

ition

al c

ompr

ehen

sive

ex-

post

con

trol f

or p

ublic

pro

cure

men

t op

erat

ions

subm

itted

by

bene

ficia

ries f

or re

fund

s. In

add

ition

to a

udit

activ

ities

, MA

l

skie

RO

P pl

aces

par

ticul

ar e

mph

asis

on

orga

nisi

ng

ongo

ing

train

ing

and

prac

tical

wor

ksho

ps fo

r ben

efic

iarie

s and

MA

staf

f on

the

appl

icat

ion

of th

e Pu

blic

Pro

cure

men

t Act

. A

s aud

its c

arrie

d ou

t by

the

Supr

eme

Aud

it O

ffic

e sh

owed

, pub

lic b

odie

s had

inte

rnal

pub

lic p

rocu

rem

ent r

ules

with

var

ying

leve

ls o

f det

ail,

whi

ch c

ould

impa

ct o

n w

heth

er c

ontra

cts w

ere

awar

ded

in a

ccor

danc

e w

ith th

e ru

les.

Ver

y of

ten,

thes

e ru

les d

id n

ot p

rovi

de fo

r an

oblig

atio

n to

car

ry o

ut a

dvis

abili

ty st

udie

s or c

ost/b

enef

it an

alys

es o

f out

sour

cing

serv

ices

at t

he

plan

ning

stag

e. A

lthou

gh p

ublic

pro

cure

men

t pla

ns h

ad b

een

draw

n up

in a

ppro

xim

atel

y 50

% o

f the

aud

ited

bodi

es, t

hey

wer

e no

t alw

ays

impl

emen

ted

prop

erly

, and

in a

reas

bel

ow th

e EU

thre

shol

ds th

ere

wer

e of

ten

no p

ublic

pro

cure

men

t pla

ns.

Irre

gula

ritie

s in

publ

ic p

rocu

rem

ent p

roce

dure

s ofte

n re

sulte

d fr

om a

failu

re to

fully

iden

tify

outs

ourc

ing

need

s, fa

ilure

to e

stim

ate

the

valu

e of

th

e co

ntra

ct w

ith d

ue d

ilige

nce

(whi

ch c

onst

itute

d an

infr

inge

men

t of A

rticl

e 32

(1) o

f the

Pub

lic P

rocu

rem

ent A

ct o

f 29

Janu

ary

2004

), un

just

ified

div

isio

n of

con

tract

s pur

suan

t to

Arti

cle

6a o

f the

Pub

lic P

rocu

rem

ent A

ct a

nd fa

ilure

to c

ompl

y w

ith in

tern

al ru

les.

Q 3

.6.

In th

e 20

14-2

0 R

DP

a sc

hedu

le (‘

tary

fikat

or’)

was

intro

duce

d fo

r pub

lic p

rocu

rem

ent p

roce

dure

s set

ting

out t

he a

dmin

istra

tive

pena

lties

for

infr

inge

men

ts o

f the

Pub

lic P

rocu

rem

ent A

ct o

f 29

Janu

ary

2004

(Jou

rnal

of L

aws 2

013,

item

907

, as a

men

ded)

. The

adm

inis

trativ

e pe

nalti

es

indi

cate

d in

the

sche

dule

var

y ac

cord

ing

to th

e ty

pe o

f irr

egul

arity

/infr

inge

men

t of t

he P

ublic

Pro

cure

men

t Act

. R

emed

ial a

nd p

reve

ntiv

e ac

tion

inte

r alia

in th

e pu

blic

pro

cure

men

t fie

ld fo

r the

201

4-20

RD

P ha

s bee

n ta

ken/

is p

lann

ed.

1. T

he A

genc

y fo

r Res

truct

urin

g an

d M

oder

nisa

tion

of A

gric

ultu

re, i

n co

oper

atio

n w

ith th

e Im

plem

entin

g A

utho

ritie

s and

the

Man

agin

g A

utho

rity,

ana

lyse

d th

e m

ost f

requ

ent e

rror

s in

the

proc

essi

ng o

f aid

app

licat

ions

and

pay

men

t cla

ims.

On

the

basi

s of t

hat a

naly

sis,

the

Age

ncy

for R

estru

ctur

ing

and

Mod

erni

satio

n of

Agr

icul

ture

has

dev

elop

ed tr

aini

ng p

rogr

amm

es ta

rget

ed a

t spe

cific

gro

ups o

f ben

efic

iarie

s an

d tra

inin

g pr

ogra

mm

es fo

r pub

lic a

nd p

rivat

e ad

viso

ry b

odie

s cov

erin

g pu

blic

pro

cure

men

t iss

ues i

n th

e ca

se o

f mea

sure

s whe

re th

ere

is a

re

quire

men

t to

carr

y ou

t a p

ublic

pro

cure

men

t pro

cedu

re.

2. T

he A

genc

y fo

r Res

truct

urin

g an

d M

oder

nisa

tion

of A

gric

ultu

re, i

n co

oper

atio

n w

ith th

e M

anag

ing

Aut

horit

y, p

rodu

ced

a gu

ide

for

bene

ficia

ries o

f RD

P 20

14-2

0 ai

d on

how

to a

void

the

mos

t com

mon

err

ors w

hich

was

pub

lishe

d on

the

Age

ncy’

s web

site

in O

ctob

er 2

015.

3.

Impl

emen

ting

Aut

horit

ies a

re re

quire

d to

dea

l with

the

erro

rs o

bser

ved

with

in th

e co

ntex

t of p

ublic

pro

cure

men

t in

train

ing

prog

ram

mes

, se

min

ars a

nd w

orks

hops

for b

enef

icia

ries a

nd p

oten

tial b

enef

icia

ries.

Mor

eove

r, si

nce

2015

, the

aut

horit

ies i

mpl

emen

ting

NR

N m

easu

res

unde

r the

Pla

n ha

ve b

een

oblig

ed to

pro

vide

pot

entia

l ben

efic

iarie

s and

ben

efic

iarie

s of R

DP

2014

-20

with

syst

emic

trai

ning

on

publ

ic

proc

urem

ent i

n pa

rticu

lar.

4. T

he A

genc

y fo

r Res

truct

urin

g an

d M

oder

nisa

tion

of A

gric

ultu

re, i

n co

oper

atio

n w

ith th

e Im

plem

entin

g A

utho

ritie

s and

the

Man

agin

g

183

Aut

horit

y, d

rew

up

a lis

t of F

AQ

con

cern

ing

the

mos

t com

mon

err

ors t

o he

lp b

enef

icia

ries p

repa

re a

pplic

atio

ns. T

hese

FA

Q w

ere

publ

ishe

d on

th

e w

ebsi

tes o

f the

Age

ncy

for R

estru

ctur

ing

and

Mod

erni

satio

n of

Agr

icul

ture

, the

Min

istry

of A

gric

ultu

re a

nd R

ural

Dev

elop

men

t, th

e Im

plem

entin

g A

utho

ritie

s and

the

regi

onal

secr

etar

iats

of t

he N

RN

in th

e fir

st h

alf o

f 201

5.

Pola

nd is

als

o ob

liged

to u

pdat

e th

e co

rrec

tive

actio

n pl

an u

nder

take

n by

the

Age

ncy

for R

estru

ctur

ing

and

Mod

erni

satio

n of

Agr

icul

ture

by

way

of f

ollo

w-u

p to

nat

iona

l act

ion

plan

s. Th

e na

tiona

l act

ion

plan

con

tain

s inf

orm

atio

n on

cor

rect

ive

and

prev

entiv

e ac

tion

on e

rror

s and

err

or

rate

s whi

ch w

ill b

e us

ed to

mon

itor t

he im

pact

of c

orre

ctiv

e an

d pr

even

tive

actio

n. T

his w

ill h

elp

redu

ce th

e nu

mbe

r of e

rror

s ide

ntifi

ed in

the

audi

ts c

ondu

cted

by

the

Euro

pean

Com

mis

sion

or t

he E

urop

ean

Cou

rt of

Aud

itors

, thr

ough

the

intro

duct

ion

of a

ppro

pria

te p

reve

ntiv

e an

d co

rrec

tive

actio

n an

d m

onito

ring

of th

e ef

fect

iven

ess o

f thi

s act

ion.

Th

e la

st n

atio

nal c

orre

ctiv

e ac

tion

plan

was

pre

pare

d by

the

Age

ncy

for R

estru

ctur

ing

and

Mod

erni

satio

n of

Agr

icul

ture

in S

epte

mbe

r 201

5;

the

four

th u

pdat

e of

the

plan

(fol

low

-up)

is ti

met

able

d fo

r Apr

il 20

16.

As i

ndic

ated

abo

ve, a

s of 1

Oct

ober

201

4, M

A

lsk

ie R

OP

intro

duce

d an

add

ition

al c

ompr

ehen

sive

ex-

post

che

ck p

roce

dure

for p

ublic

pr

ocur

emen

t ope

ratio

ns su

bmitt

ed b

y be

nefic

iarie

s for

refu

nds.

In a

dditi

on to

aud

it ac

tiviti

es, M

A

lsk

ie R

OP

plac

es p

artic

ular

em

phas

is o

n im

prov

ing

the

awar

enes

s of b

enef

icia

ries a

nd M

A st

aff o

f app

licat

ion

of th

e Pu

blic

Pro

cure

men

t Act

. It d

oes t

his b

y or

gani

sing

trai

ning

and

pr

actic

al w

orks

hops

. Th

e Su

prem

e A

udit

Off

ice

has s

ent d

e le

ge fe

rend

a pr

opos

als a

nd sy

stem

ic a

pplic

atio

ns to

the

com

pete

nt a

utho

ritie

s con

cern

ing:

1.

the

oblig

atio

n fo

r pub

lic fi

nanc

e se

ctor

bod

ies t

o dr

aw u

p an

nual

pub

lic p

rocu

rem

ent p

lans

irre

spec

tive

of th

e va

lue

of c

ontra

cts;

2.

the

erad

icat

ion

from

the

publ

ic p

rocu

rem

ent s

yste

m o

f arr

ange

men

ts e

nabl

ing

publ

ic fi

nanc

e se

ctor

bod

ies t

o di

vide

con

tract

s and

to a

war

d th

em w

ithou

t app

lyin

g th

e ru

les a

nd p

roce

dure

s lai

d do

wn

by th

e Pu

blic

Pro

cure

men

t Act

(e.g

. Arti

cle

6a o

f the

Act

); 3.

the

intro

duct

ion

of th

e ru

le th

at a

ppea

ls a

re h

eard

by

the

Nat

iona

l App

eals

Boa

rd (K

rajo

wa

Izba

Odw

oaw

cza)

sitti

ng in

a p

anel

of a

t lea

st

two

pers

ons;

4.

the

amen

dmen

t of A

rticl

e 13

of t

he P

ublic

Pro

cure

men

t Act

con

cern

ing

prio

r inf

orm

atio

n no

tices

in su

ch a

way

as t

o m

ake

publ

icat

ion

of

notic

es m

anda

tory

; 5.

the

clar

ifica

tion

in th

e Pu

blic

Pro

cure

men

t Act

of t

he p

rovi

sion

s gov

erni

ng th

e ap

poin

tmen

t and

wor

k of

tend

er c

omm

ittee

s by

requ

iring

the

head

of t

he C

ontra

ctin

g A

utho

rity

to d

ivid

e ta

sks a

nd re

spon

sibili

ties i

n re

latio

n to

spec

ific

proc

edur

al a

ctio

ns b

etw

een

nam

ed c

omm

ittee

m

embe

rs.

Q 4

.1.

1. In

the

case

of p

roje

cts i

mpl

emen

ted

unde

r the

200

4-06

and

200

7-13

fina

ncia

l per

spec

tives

, in

the

even

t of i

nfrin

gem

ents

of t

he n

atio

nal o

r EU

pub

lic p

rocu

rem

ent r

ules

, the

inst

itutio

ns re

spon

sibl

e fo

r aud

iting

pro

ject

s and

impo

sing

fina

ncia

l cor

rect

ions

dee

med

the

expe

nditu

re

incu

rred

by

the

bene

ficia

ries w

holly

inel

igib

le o

r im

pose

d fin

anci

al c

orre

ctio

ns o

n th

is e

xpen

ditu

re in

acc

orda

nce

with

the

follo

win

g na

tiona

l do

cum

ent:

Fina

ncia

l cor

rect

ions

for i

nfrin

gem

ents

of p

ublic

pro

cure

men

t law

con

nect

ed w

ith im

plem

enta

tion

of p

roje

cts c

o-fin

ance

d fr

om E

U

fund

s (‘ta

ryfik

ator

’). T

his d

ocum

ent s

erve

d as

a m

anua

l for

the

Man

agin

g A

utho

ritie

s or t

he b

odie

s to

whi

ch p

ower

s had

bee

n de

lega

ted

and

refle

cted

, als

o in

term

s of t

he a

mou

nts o

f cor

rect

ions

app

licab

le to

spec

ific

cate

gorie

s of i

rreg

ular

ity, t

he g

uide

lines

for t

he fi

nanc

ial

corr

ectio

ns to

be

appl

ied

fo

r exp

endi

ture

co-

finan

ced

from

the

Stru

ctur

al F

unds

and

Coh

esio

n Fu

nd in

the

even

t of n

on-c

ompl

ianc

e w

ith th

e pu

blic

pro

cure

men

t rul

es

(CO

CO

F 07

/003

7/03

-PL)

, whi

ch a

pplie

d un

til 1

9 D

ecem

ber 2

013,

and

Dec

isio

n C

(201

3) 9

527

on th

e se

tting

out

and

app

rova

l of t

he

guid

elin

es fo

r det

erm

inin

g fin

anci

al c

orre

ctio

ns to

be

mad

e by

the

Com

mis

sion

to e

xpen

ditu

re fi

nanc

ed b

y th

e U

nion

und

er sh

ared

m

anag

emen

t for

non

-com

plia

nce

with

the

rule

s on

publ

ic p

rocu

rem

ent,

whi

ch re

plac

ed th

em. W

ith re

gard

to c

ohes

ion

polic

y pr

ojec

ts fin

ance

d un

der t

he 2

014-

20 fi

nanc

ial p

ersp

ectiv

e, it

was

dec

ided

to e

nshr

ine

the

‘tary

fikat

or’ i

n un

iver

sally

bin

ding

law

, i.e

. in

a R

egul

atio

n of

the

184

Min

iste

r for

Reg

iona

l Dev

elop

men

t. L

egis

lativ

e w

ork

is c

urre

ntly

und

er w

ay o

n th

e dr

aft R

egul

atio

n. T

he a

mou

nts o

f cor

rect

ions

pro

vide

d fo

r in

the

docu

men

t are

in li

ne w

ith th

e Eu

rope

an C

omm

issi

on’s

abo

ve-m

entio

ned

guid

elin

es.

2. In

the

even

t of a

n irr

egul

arity

bei

ng d

etec

ted

whi

ch m

ay re

sult

in a

fina

ncia

l cor

rect

ion

and,

in p

artic

ular

, in

the

even

t of a

bre

ach

of th

e pu

blic

pro

cure

men

t rul

es, t

he S

upre

me

Aud

it O

ffic

e no

tifie

s the

inst

itutio

n th

at c

oncl

uded

the

agre

emen

t with

the

bene

ficia

ry, i

.e. t

he

Man

agin

g A

utho

rity

or In

term

edia

te A

utho

rity,

with

a v

iew

to c

arry

ing

out a

n an

alys

is o

f the

irre

gula

rity

to d

eter

min

e w

heth

er th

e ex

pend

iture

in

que

stio

n is

elig

ible

for r

efun

ds fr

om E

U re

sour

ces,

purs

uant

to A

rticl

e 62

a of

the

Supr

eme

Aud

it O

ffic

e A

ct (J

ourn

al o

f Law

s 201

5, it

em

1096

). Th

is is

bec

ause

in th

e ev

ent o

f fin

ding

s sug

gest

ing

that

reco

very

may

be

nece

ssar

y as

a re

sult

of fa

ilure

by

the

bene

ficia

ry to

com

ply

with

its o

blig

atio

ns u

nder

the

gran

t agr

eem

ent,

the

final

dec

isio

n on

the

amou

nt o

f the

cor

rect

ion

lies w

ith th

e ab

ove-

men

tione

d in

stitu

tions

, w

hich

are

resp

onsi

ble

for i

mpo

sing

fina

ncia

l cor

rect

ions

. Und

er A

rticl

e 62

a(1)

of t

he S

upre

me

Aud

it O

ffic

e A

ct, t

he P

resi

dent

of t

he S

upre

me

Aud

it O

ffic

e m

ay n

otify

in w

ritin

g th

e he

ad o

f the

hig

her a

utho

rity

or th

e co

mpe

tent

nat

iona

l or r

egio

nal g

over

nmen

t aut

horit

y of

com

men

ts,

eval

uatio

ns a

nd c

oncl

usio

ns re

latin

g to

the

audi

ted

activ

ities

set o

ut in

the

post

-aud

it re

port.

Und

er A

rticl

e 62

a(2)

, the

aut

horit

ies r

efer

red

to in

A

rticl

e 62

a(1)

hav

e a

perio

d of

not

less

than

two

wee

ks w

ithin

whi

ch to

info

rm th

e Su

prem

e A

udit

Off

ice

of th

eir p

ositi

on a

nd th

e ac

tion

take

n or

the

reas

ons f

or in

actio

n.

Q 5

.1.

Yes

; Th

e m

easu

res

esta

blis

hed

by P

olan

d to

impr

ove

man

agem

ent a

nd c

ontro

l sys

tem

s la

rgel

y re

flect

the

chan

ges

intro

duce

d an

d im

plem

ente

d in

th

is a

rea

by t

he E

urop

ean

Com

mis

sion

. Fol

low

ing

the

intro

duct

ion

of a

mec

hani

sm f

or p

rese

ntin

g th

e an

nual

acc

ount

s ac

com

pani

ed b

y a

man

agem

ent

decl

arat

ion

and

an a

nnua

l su

mm

ary

of f

inal

aud

it re

ports

and

che

cks,

an a

udit

plan

ning

pro

cess

was

inc

orpo

rate

d in

to t

he

acco

untin

g ye

ar i

n Po

land

. In

add

ition

, an

nual

aud

it pl

ans

for

the

2015

-16

acco

untin

g ye

ar w

ere

thor

ough

ly a

naly

sed

by t

he P

artn

ersh

ip

Agr

eem

ent C

oord

inat

ing

Aut

horit

y to

ens

ure

that

pro

gram

mes

mad

e pr

ovis

ion

for m

echa

nism

s en

surin

g th

e re

gula

rity

of e

xpen

ditu

re e

nter

ed

in th

e an

nual

acc

ount

s. To

ens

ure

the

intro

duct

ion

of in

stru

men

ts fo

r eff

ectiv

e ve

rific

atio

n ac

tiviti

es in

the

new

fina

ncia

l per

spec

tive,

the

Coh

esio

n Po

licy

Prog

ram

me

Impl

emen

tatio

n (2

014-

20 F

inan

cial

Per

spec

tive)

Act

of 1

1 Ju

ly 2

014

mad

e pr

ovis

ion

for M

anag

ing

Aut

horit

ies t

o ca

rry

out c

heck

s on

prev

ious

do

cum

ents

rel

atin

g to

pub

lic p

rocu

rem

ent p

roce

dure

s, en

viro

nmen

tal i

mpa

ct a

sses

smen

ts a

nd a

war

ds o

f st

ate

aid.

Pre

viou

sly

thes

e po

wer

s w

ere

ensh

rined

in lo

wer

-ran

king

legi

slat

ion.

M

oreo

ver,

in o

rder

to c

omba

t fra

ud a

nd c

onfli

cts

of in

tere

sts

effe

ctiv

ely,

Man

agin

g A

utho

ritie

s w

ere

requ

ired

to d

raw

up

docu

men

ts c

once

rn

the

frau

d pr

even

tion

mec

hani

sms

appl

ied

in th

eir p

rogr

amm

es. T

he m

ain

lines

of t

he d

ocum

ents

wer

e se

t out

in th

e gu

idel

ines

of t

he M

inis

ter

for I

nfra

stru

ctur

e an

d D

evel

opm

ent o

n th

e ar

rang

emen

ts fo

r mon

itorin

g im

plem

enta

tion

of o

pera

tiona

l pro

gram

mes

in 2

014-

20.

In c

ompa

rison

with

the

prev

ious

pro

gram

min

g pe

riod,

ver

ifica

tion

activ

ities

will

now

be

incr

ease

d; in

the

case

of p

roje

cts

not i

nvol

ving

a c

all

for

tend

er, i

t will

eve

n be

pos

sibl

e to

car

ry o

ut c

heck

s on

the

appl

ican

t (pr

ovid

ed f

or in

the

impl

emen

ting

legi

slat

ion)

, the

pur

pose

bei

ng to

en

sure

that

the

pros

pect

ive

bene

ficia

ry h

as c

ompl

eted

pre

para

tions

for p

roje

ct im

plem

enta

tion.

Q 6

.1.

Yes

Q 6

.2.

No

185

Q 6

.3.

No;

We

have

not

iden

tifie

d an

y sy

stem

ic is

sues

or d

efic

ienc

ies o

n ou

r par

t rel

ated

to th

e st

ate

aid

rule

s.

Q 7

.1.

The

Gui

delin

es o

n th

e el

igib

ility

of e

xpen

ditu

re u

nder

the

Euro

pean

Reg

iona

l Dev

elop

men

t Fun

d, th

e Eu

rope

an S

ocia

l Fun

d an

d th

e C

ohes

ion

Fund

for 2

014-

20 p

rovi

de fo

r the

use

of s

impl

ified

met

hods

for c

lear

ance

of e

xpen

ditu

re. S

impl

ified

met

hods

are

one

of

the

poss

ible

way

s of

cle

arin

g ex

pend

iture

. How

ever

, the

ir us

e is

opt

iona

l. Th

e fin

al d

ecis

ion

on th

is m

atte

r is

take

n by

eac

h M

anag

ing

Aut

horit

y. A

s th

e fo

cal p

oint

of c

ompe

tenc

e, th

e Pa

rtner

ship

Agr

eem

ent C

oord

inat

ing

Aut

horit

y en

deav

ours

to s

prea

d go

od p

ract

ice

in th

e fie

ld b

y w

ay o

f mee

tings

and

indi

vidu

al c

onsu

ltatio

ns.

For

exam

ple,

the

Smar

t Gro

wth

201

4-20

Ope

ratio

nal P

rogr

amm

e (E

RD

F) in

trodu

ced

the

poss

ibili

ty o

f ap

plyi

ng tw

o si

mpl

ified

fla

t-rat

e cl

eara

nce

met

hods

, i.e

. fla

t-rat

e cl

eara

nce

of i

ndire

ct c

osts

(pu

rsua

nt t

o A

rticl

e 67

(1)(

d) o

f R

egul

atio

n (E

U)

No

1303

/201

3) a

nd f

lat-r

ate

clea

ranc

e of

cos

ts (

purs

uant

to A

rticl

e 67

(1)(

c) o

f R

egul

atio

n (E

U)

No

1303

/201

3). T

hese

met

hods

are

ap

plie

d to

mea

sure

s sup

porti

ng R

&D

pro

ject

s and

inve

stm

ents

in R

&D

infr

astru

ctur

e.

Det

aile

d ru

les

gove

rnin

g th

e ap

plic

atio

n of

thes

e m

etho

ds a

nd th

e m

etho

dolo

gy fo

r the

sim

plifi

ed c

lear

ance

of i

ndire

ct c

osts

und

er

prio

rity

axes

I an

d IV

of t

he S

mar

t Gro

wth

OP

are

laid

dow

n in

the

guid

elin

es o

f the

Min

iste

r for

Infr

astru

ctur

e an

d D

evel

opm

ent

of 2

8 A

ugus

t 201

5 on

the

elig

ibili

ty o

f exp

endi

ture

und

er th

e Sm

art G

row

th 2

014-

20 O

pera

tiona

l Pro

gram

me.

The

Smar

t Gro

wth

OP

mak

es p

rovi

sion

for t

wo

flat r

ates

: up

to 1

7% o

f dire

ct e

ligib

le c

osts

, exc

ludi

ng s

ubco

ntra

ctin

g an

d cr

oss-

finan

cing

cos

ts, f

or R

&D

pro

ject

s an

d up

to 8

% o

f dire

ct e

ligib

le c

osts

, exc

ludi

ng c

ross

-fin

anci

ng c

osts

, for

inve

stm

ents

in R

&D

in

fras

truct

ure.

Am

ount

s co

verin

g th

e co

sts

of o

ne s

tage

of t

he p

roje

ct o

r the

cos

ts o

f the

ent

ire p

roje

ct m

ay b

e el

igib

le fo

r cle

aran

ce b

y w

ay o

f a

lum

p su

m, i

n w

hich

cas

e th

e lu

mp

sum

may

not

exc

eed

the

equi

vale

nt o

f €10

0 00

0 of

the

publ

ic c

ontri

butio

n to

the

proj

ect.

Flat

-ra

te c

lear

ance

has

not

bee

n ta

ken

up in

any

of t

he c

alls

for t

ende

r org

anis

ed to

dat

e. H

owev

er, t

he m

etho

d m

ay b

e im

plem

ente

d if

the

appl

icat

ion

docu

men

ts fo

r the

mea

sure

mak

e pr

ovis

ion

to th

at e

ffec

t.

Pola

nd is

ple

ased

to n

ote

a m

inor

red

uctio

n in

the

erro

r ra

te c

once

rnin

g pa

ymen

ts f

rom

the

EU b

udge

t (4.

4%, a

s co

mpa

red

with

4.

5% in

201

3).

The

fact

that

a s

tabl

e ov

eral

l err

or ra

te w

as m

aint

aine

d ev

en th

ough

the

2014

bud

get w

as th

e se

cond

larg

est e

ver,

with

sig

nific

ant

cum

ulat

ion

of c

ohes

ion

polic

y ex

pend

iture

from

the

2007

-13

prog

ram

min

g pe

riod,

giv

es c

ause

for s

atis

fact

ion.

How

ever

, we

note

with

con

cern

the

sign

ifica

nt in

crea

se in

the

erro

r rat

e un

der h

eadi

ng 1

a - R

&D

(fro

m 4

% to

5.6

%) a

nd h

eadi

ng 4

-

Exte

rnal

rel

atio

ns (

from

2.1

% t

o 2.

7%),

whi

ch c

an o

nly

parti

ally

be

expl

aine

d by

the

inc

reas

e in

app

ropr

iatio

ns u

nder

tho

se

186

head

ings

.

Not

with

stan

ding

a m

inor

incr

ease

in th

e er

ror r

ate

in th

e co

hesi

on p

olic

y fie

ld, t

he tr

end

in re

gion

al e

xpen

ditu

re, w

hich

acc

ount

s fo

r 80%

of a

ppro

pria

tions

und

er th

ose

head

ings

, is p

ositi

ve (a

sign

ifica

nt re

duct

ion)

.

In a

dditi

on, t

he a

nnua

l err

or ra

te c

alcu

late

d by

the

Cou

rt of

Aud

itors

sho

uld

be s

een

in th

e co

ntex

t of t

he m

ultia

nnua

l cha

ract

er o

f EU

inte

rven

tion

(incl

udin

g ne

t fin

anci

al c

orre

ctio

ns a

nd re

cove

red

amou

nts)

.

The

corr

ectiv

e ac

tion

take

n by

the

Mem

ber S

tate

s an

d th

e C

omm

issi

on h

ad a

maj

or im

pact

. Acc

ordi

ng to

the

Cou

rt of

Aud

itors

, if

this

act

ion

had

not b

een

take

n on

the

trans

actio

n sa

mpl

e te

sted

by

the

Cou

rt, th

e ov

eral

l est

imat

ed e

rror

rat

e w

ould

be

1.1

pp.

high

er (1

.6 p

p. in

201

3), w

hich

tran

slat

es in

to a

n am

ount

of €

1.6

billi

on a

ppro

x.

We

wou

ld d

raw

par

ticul

ar a

ttent

ion

to th

e re

com

men

datio

n of

the

Cou

rt of

Aud

itors

that

the

Com

mis

sion

take

mea

sure

s to

redu

ce

the

back

log

of o

utst

andi

ng c

omm

itmen

ts u

nder

coh

esio

n po

licy,

inc

ludi

ng f

aste

r cl

osur

e of

the

200

7-13

pro

gram

mes

. In

som

e M

embe

r St

ates

(be

nefic

iarie

s of

coh

esio

n po

licy)

, tot

al E

U f

undi

ng a

rrea

rs a

ccou

nt f

or a

sig

nific

ant p

erce

ntag

e of

ann

ual p

ublic

ex

pend

iture

.

We

agre

e w

ith th

e C

ourt

of A

udito

rs o

n th

e ne

ed to

impr

ove

indi

cato

rs a

nd to

intro

duce

uni

form

, com

para

ble

benc

hmar

ks fo

r all

EU b

udge

t exp

endi

ture

(all

budg

et h

eadi

ngs m

anag

ed b

y bo

th th

e M

embe

r Sta

tes a

nd th

e C

omm

issi

on).

PO

RT

UG

AL

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

187

Q 1

.2.

In a

dditi

on to

the

use

of c

omm

on in

dica

tors

is th

e fa

ct th

at a

ll op

erat

iona

l pro

gram

mes

in th

e C

ohes

ion

Fund

s (E

RD

F, E

SF a

nd

CF)

hav

e a

set o

f res

ult i

ndic

ator

s def

ined

for s

peci

fic o

bjec

tives

as w

ell a

s ind

icat

ors f

or re

achi

ng in

vest

men

t prio

ritie

s.

For

Ope

ratio

nal P

rogr

amm

es w

ith s

imila

r go

als

in th

e Po

rtugu

ese

prog

ram

min

g pe

riod

of 2

014-

2020

, ind

icat

ors

to b

e us

ed h

ave

been

har

mon

ised

. The

refo

re, i

n ad

ditio

n to

the

list o

f com

mon

Com

mun

ity in

dica

tors

is a

list

of h

arm

onis

ed n

atio

nal i

ndic

ator

s.

Q 1

.3.

Yes

;

The

anal

ysis

of p

rogr

amm

e re

sults

is m

easu

red

annu

ally

in th

e A

nnua

l Im

plem

enta

tion

Rep

orts

for O

pera

tiona

l Pro

gram

mes

.

At t

he s

ame

time,

the

Age

ncy

for D

evel

opm

ent a

nd C

ohes

ion

is re

spon

sibl

e fo

r pre

parin

g th

e A

nnua

l Eur

opea

n Fu

nd R

epor

t. Th

e ai

m o

f thi

s re

port

is to

pro

vide

syst

emat

ised

info

rmat

ion

on th

e im

plem

enta

tion

of E

urop

ean

Stru

ctur

al a

nd In

vest

men

t Fun

ds (E

SIFs

), al

loca

ted

unde

r the

Pa

rtner

ship

Agr

eem

ent

esta

blis

hed

betw

een

Portu

gal

and

the

Euro

pean

Uni

on f

or t

he p

rogr

amm

ing

perio

d 20

14-2

020

(Por

tuga

l 20

20).

Mor

eove

r, be

arin

g in

min

d th

at te

rmin

atio

n of

elig

ibili

ty u

nder

the

prog

ram

min

g pe

riod

2007

-201

3 is

at t

he e

nd o

f 201

5, in

form

atio

n on

the

Nat

iona

l Stra

tegi

c R

efer

ence

Fra

mew

ork

(NSR

F) w

ill a

lso

be re

porte

d un

til it

end

s.

Q 2

.2.

We

cons

ider

that

the

spec

ifica

tions

for t

he p

rovi

sion

of i

nfor

mat

ion

on th

e IE

F su

bmitt

ed b

y th

e C

omm

issi

on to

Mem

ber S

tate

s fo

r dis

cuss

ion

at th

e EG

ESIF

mee

ting

held

on

20 M

ay 2

015,

hav

e no

t in

the

maj

ority

of t

he si

tuat

ions

iden

tifie

d, im

plic

atio

ns fo

r the

pro

visi

on o

f inf

orm

atio

n by

Por

tuga

l. Th

is i

s be

caus

e th

ey r

efer

to

the

clar

ifica

tion

of i

tem

s al

read

y in

corp

orat

ed i

nto

info

rmat

ion

prov

ided

on

ever

y O

pera

tiona

l Pr

ogra

mm

e in

Ann

ual I

mpl

emen

tatio

n R

epor

ts.

It sh

ould

be

furth

er n

oted

tha

t at

the

tim

e th

e w

orki

ng p

aper

was

sub

mitt

ed b

y th

e C

omm

issi

on,

the

proc

ess

of d

raw

ing

up a

nnua

l im

plem

enta

tion

repo

rts fo

r Ope

ratio

nal P

rogr

amm

es w

as in

som

e ca

ses

at th

e fin

al s

tage

s. Th

ese

repo

rts a

re to

be

subm

itted

to th

e re

spec

tive

mon

itorin

g co

mm

ittee

s fo

r app

rova

l at t

he e

nd o

f May

and

any

pos

sibl

e ad

just

men

ts a

risin

g fr

om th

e C

omm

issi

on's

prop

osal

wou

ld n

ot n

ow

be p

ossi

ble.

Q 3

.7.

Hum

an e

rror

s res

ultin

g fr

om p

oor i

nter

pret

atio

n of

the

regu

lato

ry fr

amew

ork,

whi

ch is

vas

t and

com

plex

. Nev

erth

eles

s, it

ofte

n be

com

es

nece

ssar

y to

use

pro

fess

iona

l jud

gem

ent w

hen

eval

uatin

g th

e fr

amin

g of

spec

ific

situ

atio

ns.

It w

as fu

rther

stat

ed th

at o

ne o

f the

shor

tcom

ings

iden

tifie

d w

as th

e la

ck o

f inf

orm

atio

n pr

ovid

ed to

ben

efic

iarie

s on

the

rule

s of p

ublic

pr

ocur

emen

t. W

hen

paym

ent r

eque

sts a

re su

bmitt

ed, t

he b

enef

icia

ry is

requ

ired

to c

ompl

ete

a pu

blic

pro

cure

men

t che

ck li

st. T

his i

nclu

des t

he p

roce

dure

im

plem

ente

d an

d th

e re

spec

tive

proc

essi

ng (p

roce

dure

pro

posa

l, su

pplie

r con

sulta

tion,

spec

ifica

tions

...)

Dur

ing

adm

inis

trativ

e ch

ecks

, tec

hnic

al a

naly

sts a

re re

quire

d to

ver

ify w

heth

er th

e be

nefic

iary

is th

e aw

ardi

ng e

ntity

in a

ccor

danc

e w

ith th

e na

tiona

l pub

lic p

rocu

rem

ent c

ode

and

the

Com

mun

ity d

irect

ive

and,

shou

ld th

is b

e th

e ca

se, v

erify

that

the

proc

edur

e im

plem

ente

d is

cor

rect

.

Q 3

.8.

Nev

erth

eles

s, su

ppor

t too

ls e

xist

to a

ssis

t in

high

ly d

etai

led

and

expl

anat

ory

man

agem

ent c

heck

s. Th

is h

as c

ontri

bute

d to

the

decr

ease

in th

e fr

eque

ncy

and

expr

essi

on o

f err

ors.

Parti

cula

r atte

ntio

n w

ill b

e pa

id to

this

are

a in

the

crea

tion

of d

ocum

ents

supp

ortin

g m

anag

emen

t che

cks

for t

he 2

014-

2020

pro

gram

min

g pe

riod

as w

ell a

s for

the

clos

ure

proc

ess f

or th

e 20

07-2

013

prog

ram

min

g pe

riod.

Tr

aini

ng a

nd a

war

enes

s-ra

isin

g co

urse

s for

tech

nici

ans w

orki

ng in

the

field

of p

ublic

pro

cure

men

t hav

e al

so b

een

unde

rtake

n. T

hese

act

ions

188

mus

t be

mai

ntai

ned

as re

quire

d.

The

use

of e

lect

roni

c pr

oced

ures

thro

ugh

the

ww

w.b

ase.

gov.

pt p

orta

l whi

ch P

ortu

gal h

as p

ione

ered

, has

als

o si

gnifi

cant

ly c

ontri

bute

d to

the

stre

ngth

enin

g of

inte

rnal

con

trol a

nd e

rror

redu

ctio

n. T

his s

ite p

rovi

des m

uch

mor

e in

form

atio

n fo

r bot

h th

e aw

ardi

ng a

utho

rity

and

for c

ontro

l an

d au

dit f

unct

ions

. Sp

ecifi

cally

thro

ugh

IFA

P an

d w

ith re

gard

to th

e in

form

atio

n de

ficit

for b

enef

icia

ries o

n th

e ru

les o

f pub

lic p

rocu

rem

ent,

corre

ctiv

e m

easu

res

wer

e as

follo

ws:

• A

t the

pro

ject

app

rova

l sta

ge, s

treng

then

ing

of th

e pr

oces

s to

verif

y w

heth

er th

e be

nefic

iary

is th

e aw

ardi

ng a

utho

rity

in a

ccor

danc

e w

ith th

e pu

blic

pro

cure

men

t cod

e an

d, sh

ould

this

be

the

case

, the

ben

efic

iary

is in

form

ed th

at th

ey a

re su

bjec

t to

the

rule

s of p

ublic

pro

cure

men

t; • W

hen

paym

ent r

eque

sts a

re fo

rmal

ised

, tec

hnic

al a

naly

sts a

re re

quire

d to

ver

ify w

heth

er th

e be

nefic

iary

is th

e aw

ardi

ng e

ntity

in a

ccor

danc

e w

ith th

e na

tiona

l pub

lic p

rocu

rem

ent c

ode

and

the

Com

mun

ity d

irect

ive

and,

shou

ld th

is b

e th

e ca

se, v

erify

that

the

proc

edur

e im

plem

ente

d is

co

rrec

t. • S

treng

then

ing

of in

form

atio

n an

d di

sclo

sure

to te

chni

cal a

naly

sts a

nd b

enef

icia

ries i

n re

latio

n to

pub

lic p

rocu

rem

ent p

roce

dure

s tha

t pro

ject

s ar

e re

quire

d to

follo

w.

Q 4

.1.

No.

Qua

ntifi

catio

n of

non

-com

plia

nce

is p

rovi

ded

for i

n th

e C

OC

OF

tabl

e (th

ere

is n

o na

tiona

l ins

trum

ent t

o qu

antif

y no

n-co

mpl

ianc

e).

Q 5

.1.

Yes

; W

hene

ver

serio

us p

robl

ems

are

iden

tifie

d du

ring

audi

ts, t

he n

atio

nal a

utho

ritie

s im

med

iate

ly im

plem

ent t

he p

roce

dure

s ne

cess

ary

to c

orre

ct

the

situ

atio

n. In

cer

tain

situ

atio

ns, t

his h

as le

d to

the

impl

emen

tatio

n of

act

ion

plan

s allo

win

g th

e ris

k of

mat

eria

l err

ors t

o be

miti

gate

d.

In a

ccor

danc

e w

ith e

stab

lishe

d pr

oced

ures

, the

CA

, prio

r to

the

subm

issi

on o

f pa

ymen

t req

uest

s to

the

Euro

pean

Com

mis

sion

car

ries

out a

se

ries

of c

heck

s. W

hene

ver d

oubt

s ex

ist a

s to

the

lega

lity

and

regu

larit

y of

exp

endi

ture

to b

e ce

rtifie

d, th

e su

ms

in q

uest

ion

are

dedu

cted

as

a pr

ecau

tiona

ry m

easu

re u

ntil

the

issu

es a

re re

solv

ed.

It sh

ould

als

o be

not

ed th

at w

ith re

gard

to e

rror

s en

coun

tere

d du

ring

chec

ks o

n op

erat

ions

, in

the

last

cer

tific

atio

n of

eve

ry y

ear,

the

CA

has

de

duct

ed t

he v

alue

of

thes

e er

rors

as

a pr

ecau

tiona

ry m

easu

re.

This

allo

ws

the

Aud

it A

utho

rity

in i

ts A

nnua

l R

epor

t an

d O

pini

on t

o de

mon

stra

te to

the

Com

mis

sion

that

the

erro

rs h

ave

been

cor

rect

ed a

s the

y ha

ve b

een

rem

oved

from

exp

endi

ture

cer

tific

atio

n.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

; - d

iscl

osur

e of

rele

vant

info

rmat

ion

by th

e m

anag

ing

auth

oriti

es o

n op

erat

iona

l pro

gram

mes

; - a

war

enes

s and

trai

ning

act

ions

on

mat

ters

of S

tate

aid

, - a

nd st

reng

then

ing

of in

tern

al c

ontro

l sys

tem

s, in

par

ticul

ar, w

ith re

gard

to th

e pr

oces

s to

desi

gnat

e m

anag

emen

t and

cer

tific

atio

n au

thor

ities

fo

r the

201

4-20

20 p

rogr

amm

ing

perio

d.

189

Q 7

.1.

At t

he A

genc

y fo

r Dev

elop

men

t and

Coh

esio

n (A

D&

C),

a Si

mpl

ifica

tion

Cen

tre h

as b

een

set u

p w

hich

aim

s to

info

rm th

e M

As

on r

elev

ant a

spec

ts in

this

are

a in

ord

er to

pro

mot

e th

e ex

tens

ive

use

of s

impl

ified

cos

t opt

ions

in th

e di

ffer

ent C

ohes

ion

Fund

s (E

RD

F, E

SF a

nd C

ohes

ion

Fund

). Th

e m

ain

goal

of

the

ongo

ing

wor

k at

the

Sim

plifi

catio

n C

entre

con

sist

s of

im

plem

entin

g si

mpl

ified

cos

t op

tions

in

the

larg

est

poss

ible

num

ber

of p

roje

cts

supp

orte

d by

the

Coh

esio

n Fu

nd.

In l

iais

on w

ith t

he

MA

s/In

term

edia

te B

odie

s an

d th

e N

atio

nal

Aud

it A

utho

rity,

pre

para

tory

wor

k is

und

erw

ay t

o pr

epar

e pr

opos

als

for

sim

plifi

ed

cost

s in

diff

eren

t typ

es o

f ope

ratio

n, p

artic

ular

ly w

ith re

gard

to c

ompe

titiv

enes

s and

inno

vatio

n, m

ainl

y su

ppor

ted

by th

e ER

DF.

R

OM

AN

IA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

In a

ccor

danc

e w

ith A

rticl

e 27

(4),

Arti

cle

96(2

)(b)

(i) a

nd (i

v) a

nd p

oint

(c)(

ii) a

nd (i

v) o

f Reg

ulat

ion

(EU

)

No

1303

/201

3, fo

r the

ope

ratio

nal p

rogr

amm

es fi

nanc

ed u

nder

the

cohe

sion

pol

icy,

pro

gram

me-

spec

ific

resu

lt in

dica

tors

wer

e al

so

used

, in

acco

rdan

ce w

ith th

e A

nnex

.

MA

-NR

DP:

Alte

rnat

ive

indi

cato

rs fo

r the

new

pro

gram

min

g pe

riod

as fo

llow

s:

P3-P

rom

otin

g fo

od c

hain

org

anis

atio

n, i

nclu

ding

pro

cess

ing

and

mar

ketin

g of

agr

icul

tura

l pr

oduc

ts,

anim

al w

elfa

re a

nd r

isk

man

agem

ent i

n ag

ricul

ture

: (1)

num

ber o

f hol

ding

s sup

porte

d in

the

area

of a

nim

al w

elfa

re a

nd (2

) num

ber o

f ope

ratio

ns su

ppor

ted

190

unde

r sub

-mea

sure

4.2

Sup

port

for i

nves

tmen

ts in

agr

icul

tura

l pro

duct

pro

cess

ing/

mar

ketin

g,

P4 –

Res

torin

g, p

rese

rvin

g an

d en

hanc

ing

ecos

yste

ms

in a

gric

ultu

re a

nd f

ores

try:

(3)

Agr

icul

tura

l la

nd u

nder

man

agem

ent

cont

ract

s co

ntrib

utin

g to

bio

dive

rsity

(fo

cus

area

4A

) +

impr

ovin

g w

ater

man

agem

ent

(foc

us a

rea

4B)

+ im

prov

ing

soil

man

agem

ent a

nd/o

r pre

vent

ing

soil

eros

ion

+ ag

ricul

tura

l lan

d co

vere

d by

con

tract

s of

pay

men

ts fo

r are

as fa

cing

nat

ural

or o

ther

sp

ecifi

c co

nstra

ints

(foc

us a

rea

4C),

P5 -

Pr

omot

ing

effic

ient

use

of

reso

urce

s an

d su

ppor

ting

the

shift

tow

ards

a l

ow c

arbo

n an

d cl

imat

e re

silie

nt e

cono

my

in

agric

ultu

re, f

ood

and

fore

stry

sect

ors:

(4) T

he a

rea

(ha)

con

cern

ed b

y in

vest

men

ts fo

r sav

ing

wat

er —

key

impl

emen

tatio

n st

ep a

nd

(5) n

umbe

r of o

pera

tions

supp

orte

d un

der s

ub-m

easu

re 4

.1 In

vest

men

ts in

agr

icul

tura

l hol

ding

s,

P6 -

Prom

otin

g so

cial

incl

usio

n, p

over

ty re

duct

ion

and

econ

omic

dev

elop

men

t in

rura

l are

as.

(6) N

umbe

r of c

ontra

cted

ope

ratio

ns

to im

prov

e ba

sic

serv

ices

and

infr

astru

ctur

e in

rura

l are

as —

key

impl

emen

tatio

n st

ep.

Q 1

.3.

Yes

;

MA

-OPF

In a

ccor

danc

e w

ith th

e pr

ovis

ions

in A

nnex

V o

f Reg

ulat

ion

(EC

) No

1242

/201

4 la

ying

dow

n, p

ursu

ant t

o R

egul

atio

n (E

U) N

o 50

8/20

14 o

f th

e Eu

rope

an P

arlia

men

t and

of t

he C

ounc

il on

the

Euro

pean

Mar

itim

e an

d Fi

sher

ies F

und,

the

rule

s on

the

pres

enta

tion

of re

leva

nt c

umul

ativ

e da

ta o

n op

erat

ions

, dat

a w

ill b

e pr

esen

ted

on th

e im

plem

enta

tion

of p

roje

cts a

s fol

low

s:

Cod

e of

the

impl

emen

tatio

n da

ta/P

ossi

ble

valu

e an

d ty

pe o

f val

ue fo

r:

Cha

pter

I: S

usta

inab

le d

evel

opm

ent o

f fis

herie

s

Cha

pter

II: S

usta

inab

le d

evel

opm

ent o

f aqu

acul

ture

Cha

pter

IV: M

arke

ting

and

proc

essi

ng re

late

d m

easu

res

Cha

pter

V: C

ompe

nsat

ion

for a

dditi

onal

cos

ts in

out

erm

ost r

egio

ns fo

r fis

hery

and

aqu

acul

ture

pro

duct

s

Cha

pter

VI:

Acc

ompa

nyin

g m

easu

res f

or th

e C

omm

on F

ishe

ries P

olic

y un

der s

hare

d m

anag

emen

t

Cha

pter

VII

: Tec

hnic

al a

ssis

tanc

e at

the

initi

ativ

e of

the

Mem

ber S

tate

s

191

Cha

pter

VII

I: Fo

ster

ing

the

impl

emen

tatio

n of

the

Inte

grat

ed M

ariti

me

Polic

y

MEF

- D

G A

PE

Gen

eral

ex-

ante

con

ditio

nalit

y ‘7

. Sta

tistic

al s

yste

ms

and

resu

lt in

dica

tors

’ w

ill b

e m

et b

y R

oman

ia b

y 31

Dec

embe

r 20

15. P

roce

dure

s fo

r co

llect

ing

and

aggr

egat

ing

stat

istic

al d

ata

wer

e es

tabl

ishe

d in

all

prog

ram

mes

, on

the

basi

s of

gui

delin

es f

or th

e m

onito

ring

of f

inan

cial

and

ph

ysic

al in

dica

tors

.

No;

MA

-NR

DP

Late

app

rova

l of t

he p

rogr

amm

e an

d th

e sh

ort i

mpl

emen

tatio

n pe

riod

will

lead

to a

redu

ced

num

ber o

f pro

ject

s im

plem

ente

d/co

mpl

eted

that

co

uld

be u

sed

as b

asis

for c

olle

ctin

g in

dica

tors

and

car

ryin

g ou

t the

ass

essm

ent s

ched

uled

for 2

017.

Q 2

.2.

Yes

;

MA

-NR

DP:

Alth

ough

gui

danc

e no

te E

GES

IF-1

5001

5-06

/05/

2015

con

cern

s th

e re

porti

ng o

n fin

anci

al i

nstru

men

ts i

mpl

emen

ted

unde

r th

e ER

DF

and

SF, M

A N

RD

P ai

ms

at im

prov

ing

the

qual

ity o

f the

repo

rts o

n th

e fin

anci

al in

stru

men

ts u

nder

the

NR

DP,

in p

artic

ular

follo

win

g th

e co

nclu

sion

s of t

he a

udit

mis

sion

s car

ried

out f

or th

is p

urpo

se.

In th

is re

spec

t, th

e sy

stem

of i

ndic

ator

s w

ill b

e de

fined

on

the

basi

s of

SM

AR

T cr

iteria

(spe

cific

, mea

sura

ble,

ach

ieva

ble,

rele

vant

and

tim

ed

obje

ctiv

es),

and

the

mon

itorin

g pr

oces

s will

use

less

ons l

earn

t and

exa

mpl

es o

f goo

d pr

actic

e fr

om th

e pr

evio

us p

rogr

amm

ing

perio

ds.

MEF

- D

G A

PE:

Rom

ania

im

plem

ente

d JE

REM

IE f

inan

cial

ins

trum

ent

in 2

007-

2013

, for

whi

ch r

epor

ts w

ere

draw

n up

by

the

Euro

pean

In

vest

men

t Fun

d as

a F

und

of F

unds

.

For f

inan

cial

per

iod

2014

-202

0, th

e fin

anci

al in

stru

men

ts w

ere

esta

blis

hed

on th

e ba

sis o

f the

nee

ds id

entif

ied

ex-a

nte

for v

ario

us p

rogr

amm

es,

and

the

repo

rts a

re to

be

mad

e by

the

man

agin

g au

thor

ities

con

cern

ed. T

he M

inis

try o

f Eur

opea

n Fu

nds,

whi

ch w

ill a

ct a

s co

ordi

nato

r for

the

impl

emen

tatio

n of

the

ESIF

, will

pro

vide

uni

form

coo

rdin

atio

n of

the

repo

rting

for t

he fi

nanc

ial i

nstru

men

ts, o

n th

e ba

sis

of R

egul

atio

n (E

U)

No

821/

2014

.

Q 3

.5.

As a

resu

lt of

the

chec

ks p

erfo

rmed

by

the

Aud

it A

utho

rity

som

e si

tuat

ions

sim

ilar t

o th

ose

pres

ente

d in

the

Euro

pean

Cou

rt of

Aud

itors

repo

rt in

box

7.6

wer

e fo

und.

Suc

h si

tuat

ions

occ

urre

d du

e to

wea

knes

ses i

n th

e in

tern

al c

ontro

l sys

tem

at t

he le

vel o

f the

inst

itutio

ns re

spon

sibl

e fo

r th

e ve

rific

atio

n of

pub

lic p

rocu

rem

ent,

in th

e se

nse

that

cer

tain

con

trols

put

into

pla

ce h

ave

not b

een

effe

ctiv

e en

ough

to d

etec

t all

devi

atio

ns

from

the

exis

ting

legi

slat

ive

and

proc

edur

al fr

amew

ork

or c

erta

in p

roce

dura

l pro

visi

ons w

ere

not s

uffic

ient

and

app

ropr

iate

, so

as to

rem

ove

all

the

shor

tcom

ings

in th

e pr

ocur

emen

ts c

ondu

cted

by

the

fund

ben

efic

iarie

s. -A

A

MEF

- D

CSM

- B

CM

AP:

The

inte

rnal

con

trol s

yste

ms i

n pl

ace

in th

e ar

ea o

f pub

lic p

rocu

rem

ent a

t ben

efic

iary

leve

l are

frag

men

ted,

par

tly

redu

ndan

t and

focu

s mor

e on

form

al a

spec

ts re

late

d to

pro

cess

regu

larit

y, w

ithou

t ass

essi

ng q

ualit

y as

pect

s obj

ectiv

ely.

Ty

pica

lly, t

he in

tern

al c

ontro

l at t

he le

vel o

f fun

d be

nefic

iarie

s con

cern

s the

lega

lity

of th

e bu

dget

ary

aspe

cts,

with

out t

akin

g in

to a

ccou

nt a

ny

192

stra

tegi

c di

men

sion

such

as b

udge

t allo

catio

ns a

nd p

riorit

isat

ion

of p

roje

cts o

r the

requ

irem

ents

in th

e te

nder

doc

umen

tatio

n.

Q 3

.6.

MEF

- D

CSM

- B

CM

AP:

Th

e na

tiona

l stra

tegy

for p

ublic

pro

cure

men

t for

the

perio

d 20

15-2

020

prov

ides

for a

ctio

ns to

ens

ure

the

regu

larit

y an

d qu

ality

of t

he p

ublic

pr

ocur

emen

t pro

cess

. One

of t

he m

easu

res f

or a

chie

ving

this

obj

ectiv

e w

as fo

und

to b

e th

e de

velo

pmen

t and

the

stre

ngth

enin

g of

the

inte

rnal

co

ntro

l at t

he c

ontra

ctin

g au

thor

ities

thro

ugh:

ada

ptat

ion

of th

e in

tern

al c

ontro

l sta

ndar

ds in

the

field

of p

rocu

rem

ent,

the

issu

ance

of

guid

elin

es/g

uida

nce

on th

e in

tern

al c

ontro

l sys

tem

, stre

amlin

ing

the

prev

entiv

e fin

anci

al c

ontro

l lin

ked

to p

ublic

pro

cure

men

t, tra

inin

g pr

ogra

mm

es a

nd tr

aini

ng fo

r per

sonn

el e

xerc

isin

g fin

anci

al c

ontro

l in

publ

ic p

rocu

rem

ent.

Inte

rnal

con

trol s

hall

incl

ude

at le

ast t

he fo

llow

ing

stag

es: p

repa

ratio

n of

pro

cure

men

t, th

e dr

aftin

g of

tend

er d

ocum

ents

, the

aw

ard

proc

edur

e,

impl

emen

tatio

n of

the

cont

ract

, bei

ng o

rgan

ised

so a

s to

allo

w a

n ex

tern

al c

ontro

l foc

used

on

subs

tant

ive

issu

es. T

he d

evel

opm

ent o

f thi

s typ

e of

inte

rnal

con

trol w

ould

sign

ifica

ntly

redu

ce, f

rom

an

early

stag

e, th

e ris

k of

irre

gula

ritie

s and

err

ors a

nd w

ould

ens

ure

the

achi

evem

ent o

f the

ob

ject

ive

of th

e co

ntra

ctin

g au

thor

ities

to g

et th

e be

st v

alue

for m

oney

. Th

e in

tern

al c

ontro

l sys

tem

will

als

o in

clud

e a

polic

y do

cum

ent o

n th

e co

nflic

t of i

nter

est.

A

A:

Furth

er to

find

ing

such

def

icie

ncie

s, th

e A

udit

Aut

horit

y re

com

men

ded,

dep

endi

ng o

n th

e se

rious

ness

of t

he d

efic

ienc

ies f

ound

, fin

anci

al

corr

ectio

ns a

nd st

reng

then

ed c

ontro

ls w

here

cer

tain

def

icie

ncie

s wer

e fo

und.

In

certa

in si

tuat

ions

, the

aud

ited

entit

ies h

ave

deve

lope

d ac

tion

plan

s inc

ludi

ng m

easu

res i

nvol

ving

re-v

erifi

catio

n of

pro

cure

men

t pro

cedu

res a

nd c

lose

r mon

itorin

g of

the

proc

urem

ent p

roce

ss a

t the

leve

l of

the

bene

ficia

ries o

f fun

ds.

Q 3

.7.

The

docu

men

t che

cks c

arrie

d ou

t by

the

Cer

tific

atio

n B

ody

on P

ayin

g A

genc

y’s a

sses

smen

t on

the

publ

ic p

rocu

rem

ents

car

ried

out b

y th

e EA

FRD

ben

efic

iarie

s hav

e hi

ghlig

hted

the

need

to st

reng

then

con

trol i

n th

is a

rea.

The

syst

em d

efic

ienc

ies f

ound

wer

e br

oadl

y sim

ilar t

o th

ose

repo

rted

in p

revi

ous y

ears

. It w

as re

com

men

ded

to th

e A

genc

y fo

r the

Fin

anci

ng o

f Rur

al In

vest

men

ts (A

FIR

) to

ensu

re th

e se

tting

up

of a

n ap

prop

riate

and

uni

tary

syst

em fo

r per

man

ent m

onito

ring

of th

e re

com

men

datio

ns m

ade

in re

latio

n w

ith th

e im

prov

emen

t of t

he w

orki

ng

proc

edur

es a

nd w

ith th

e ad

vanc

ed tr

aini

ng o

f the

em

ploy

ees o

f the

Age

ncy

so a

s to

redu

ce th

e ca

ses o

f non

-com

plia

nce

rela

ted

to th

e pr

ocur

emen

t pro

cess

M

EF -

DC

SM -

BC

MA

P Th

e in

tern

al c

ontro

l sys

tem

s in

plac

e in

the

area

of p

ublic

pro

cure

men

t at b

enef

icia

ry le

vel a

re fr

agm

ente

d, p

artly

redu

ndan

t and

focu

s mor

e on

fo

rmal

asp

ects

rela

ted

to p

roce

ss re

gula

rity,

with

out a

sses

sing

qua

lity

aspe

cts o

bjec

tivel

y.

Typi

cally

, the

inte

rnal

con

trol a

t the

leve

l of f

und

bene

ficia

ries c

once

rns t

he le

galit

y of

the

budg

etar

y as

pect

s, w

ithou

t tak

ing

into

acc

ount

any

st

rate

gic

dim

ensi

on su

ch a

s bud

get a

lloca

tions

and

prio

ritis

atio

n of

pro

ject

s or t

he re

quire

men

ts in

the

tend

er d

ocum

enta

tion.

Q 3

.8.

For t

he re

porte

d sh

ortc

omin

gs, A

FIR

ord

ered

, in

gene

ral,

mea

sure

s of r

e-ve

rific

atio

n of

the

proj

ects

con

cern

ed, w

hich

led

in so

me

case

s to

esta

blis

hing

inel

igib

le e

xpen

ditu

re a

nd la

unch

ing

rela

ted

reco

very

pro

cedu

res.

MEF

- D

CSM

- B

CM

AP:

Th

e na

tiona

l stra

tegy

for p

ublic

pro

cure

men

t for

the

perio

d 20

15-2

020

prov

ides

for a

ctio

ns to

ens

ure

the

regu

larit

y an

d qu

ality

of t

he p

ublic

pr

ocur

emen

t pro

cess

. One

of t

he m

easu

res f

or a

chie

ving

this

obj

ectiv

e w

as fo

und

to b

e th

e de

velo

pmen

t and

the

stre

ngth

enin

g of

the

inte

rnal

co

ntro

l at t

he c

ontra

ctin

g au

thor

ities

thro

ugh:

ada

ptat

ion

of th

e in

tern

al c

ontro

l sta

ndar

ds in

the

field

of p

rocu

rem

ent,

the

issu

ance

of

guid

elin

es/g

uida

nce

on th

e in

tern

al c

ontro

l sys

tem

, stre

amlin

ing

the

prev

entiv

e fin

anci

al c

ontro

l lin

ked

to p

ublic

pro

cure

men

t, tra

inin

g pr

ogra

mm

es a

nd tr

aini

ng fo

r per

sonn

el e

xerc

isin

g fin

anci

al c

ontro

l in

publ

ic p

rocu

rem

ent.

Inte

rnal

con

trol s

hall

incl

ude

at le

ast t

he fo

llow

ing

stag

es: p

repa

ratio

n of

pro

cure

men

t, th

e dr

aftin

g of

tend

er d

ocum

ents

, the

aw

ard

proc

edur

e,

193

impl

emen

tatio

n of

the

cont

ract

, bei

ng o

rgan

ised

so a

s to

allo

w a

n ex

tern

al c

ontro

l foc

used

on

subs

tant

ive

issu

es. T

he d

evel

opm

ent o

f thi

s typ

e of

inte

rnal

con

trol w

ould

sign

ifica

ntly

redu

ce, f

rom

an

early

stag

e, th

e ris

k of

irre

gula

ritie

s and

err

ors a

nd w

ould

ens

ure

the

achi

evem

ent o

f the

ob

ject

ive

of th

e co

ntra

ctin

g au

thor

ities

to g

et th

e be

st v

alue

for m

oney

. Th

e in

tern

al c

ontro

l sys

tem

will

als

o in

clud

e a

polic

y do

cum

ent o

n th

e co

nflic

t of i

nter

est.

Q 4

.1.

MEF

- D

CSM

- B

CM

AP:

N

atio

nal l

egis

latio

n in

the

field

of p

ublic

pro

cure

men

t set

s out

, in

addi

tion

to th

ose

refe

rred

to b

y th

e C

ourt,

the

sanc

tioni

ng o

f the

follo

win

g vi

olat

ions

of l

egal

pro

visi

ons:

• T

he u

se o

f oth

er q

ualif

icat

ion

and

sele

ctio

n cr

iteria

or a

war

d cr

iteria

than

thos

e la

id d

own

by la

w;

• The

use

of t

he q

ualif

icat

ion

and

sele

ctio

n cr

iteria

as t

ende

r ass

essm

ent f

acto

rs;

• Cha

ngin

g th

e aw

ard

crite

rion

laid

dow

n in

the

docu

men

tatio

n/no

tice

durin

g a

tend

er p

roce

dure

; • I

ncor

rect

app

licat

ion

in th

e se

lect

ion

and/

or a

sses

smen

t pro

cess

of t

he c

riter

ia se

t out

in th

e te

nder

doc

umen

tatio

n;

• The

app

licat

ion

of a

sses

smen

t fac

tors

that

do

not r

efle

ct th

e be

nefit

s to

the

cont

ract

ing

auth

ority

. In

add

ition

, the

nat

iona

l leg

isla

tion

on p

reve

ntin

g, d

etec

ting

and

pena

lisin

g irr

egul

ariti

es in

the

gran

ting

and

use

of E

urop

ean

fund

s and

/or

rela

ted

natio

nal p

ublic

fund

s lay

s dow

n th

e fo

llow

ing

devi

atio

ns fr

om th

e co

mpl

ianc

e w

ith th

e ru

les o

n pu

blic

pro

cure

men

t: • T

he p

rocu

rem

ent o

f unf

ores

een

addi

tiona

l/sup

plem

enta

ry w

orks

or s

ervi

ces,

lead

ing

to e

xcee

ding

the

perc

enta

ge fr

om th

e in

itial

con

tract

va

lue,

set a

s lim

it by

the

natio

nal a

nd C

omm

unity

legi

slat

ion

on p

ublic

pro

cure

men

t; • Q

ualif

icat

ion

and

sele

ctio

n cr

iteria

, and

ass

essm

ent f

acto

rs u

ndec

lare

d in

the

tend

er d

ocum

ents

or i

n th

e te

nder

not

ice;

• I

nsuf

ficie

nt o

r dis

crim

inat

ory

defin

ition

of t

he c

ontra

ct o

bjec

t; • N

egot

iatio

n du

ring

the

awar

d pr

oced

ure.

A

A:

Yes

, Rom

ania

has

nat

iona

l leg

isla

tion

regu

latin

g th

ese

mat

ters

(Gov

ernm

ent E

mer

genc

y O

rder

No

66/2

011

on p

reve

ntin

g, d

etec

ting

and

pena

lisin

g irr

egul

ariti

es in

the

gran

ting

and

use

of E

urop

ean

fund

s and

/or r

elat

ed n

atio

nal p

ublic

fund

s), a

legi

slat

ive

act w

hich

is h

arm

onis

ed

with

Eur

opea

n C

omm

issi

on D

ecis

ion

No

(210

31) 9

527

of 1

9 D

ecem

ber 2

013

and

whi

ch e

nsur

es u

nifo

rm a

ppro

ach

with

rega

rd to

the

appl

icab

le fi

nanc

ial c

orre

ctio

ns/d

ecre

ases

app

licab

le to

exp

endi

ture

rela

ted

to p

roje

cts f

inan

ced

from

Eur

opea

n fu

nds a

nd/o

r rel

ated

nat

iona

l pu

blic

fund

s in

case

of n

on-c

ompl

ianc

e w

ith th

e ru

les o

n pu

blic

pro

cure

men

t. Th

is le

gisl

atio

n is

app

lied

to th

e st

ruct

ural

and

coh

esio

n fu

nds,

by b

oth

the

Man

agin

g A

utho

ritie

s and

the

Aud

it A

utho

rity.

In p

roje

cts f

inan

ced

from

the

EAFR

D, A

FIR

has

its o

wn

wor

king

pro

cedu

res f

or

the

verif

icat

ion

of th

e pu

blic

pro

cure

men

t pro

cess

car

ried

out b

y th

e be

nefic

iarie

s, w

hich

are

in a

ccor

danc

e w

ith th

e ap

plic

able

nat

iona

l law

.

Q 5

.1.

Yes

; M

A S

OP

Envi

ronm

ent:

For

exam

ple,

con

cern

ing

the

spec

ific

activ

ity r

elat

ed t

o ch

ecki

ng t

he c

ompl

ianc

e of

the

pub

lic p

rocu

rem

ent

proc

edur

es o

f M

A S

OP

Envi

ronm

ent,

chan

ges

wer

e ap

plie

d to

the

proc

edur

e ch

eck-

lists

with

a v

iew

to p

ayin

g in

crea

sed

atte

ntio

n to

the

follo

win

g as

pect

s: c

hang

es to

th

e in

form

atio

n in

the

tend

er n

otic

e th

roug

h cl

arifi

catio

ns/e

rrat

a, re

leva

nce

and

prop

ortio

nalit

y of

the

qual

ifica

tion

and

sele

ctio

n cr

iteria

in th

e pr

ocur

emen

t dat

a sh

eet,

com

plia

nce

of th

e su

cces

sful

tend

erer

with

the

qual

ifica

tion

and

sele

ctio

n cr

iteria

, com

plai

nts

and

clai

ms

durin

g a

publ

ic p

rocu

rem

ent p

roce

dure

, as w

ell a

s rea

sons

for r

ejec

ting

tend

erer

s.

The

tend

erin

g-co

ntra

ctin

g op

erat

iona

l pro

cedu

re P

OLC

— 1

21 f

or D

CV

AP

was

sup

plem

ente

d w

ith p

rovi

sion

s fo

r cl

assi

fyin

g co

ntra

cts

into

ris

k ca

tego

ries.

With

a v

iew

to

clas

sify

ing

a co

ntra

ct i

n on

e of

the

ris

k ca

tego

ries,

risk

fact

ors

desi

gned

to

cove

r th

e m

ost

sign

ifica

nt

194

proc

urem

ent r

elat

ed is

sues

/sen

sitiv

e po

ints

are

use

d, su

ch a

s:

- His

tory

of t

he c

ontra

ctin

g au

thor

ity in

the

field

- au

dit a

utho

rity

repo

rts, f

inan

cial

cor

rect

ions

alre

ady

impl

emen

ted,

AN

RM

AP

repo

rts,

- The

num

ber o

f par

ticip

ants

in th

e pr

oced

ure,

- T

he p

erce

ntag

e of

tend

ers c

onsi

dere

d un

acce

ptab

le a

nd/o

r non

-com

plia

nt in

the

tota

l ten

ders

subm

itted

, - C

laim

s rec

orde

d in

the

cour

se o

f the

pro

cedu

re, e

tc.

In c

ases

whe

re, a

fter f

illin

g in

the

Ris

k C

ateg

ory

Dat

a Sh

eet,

the

final

scor

e ob

tain

ed is

hig

her t

han

2, th

e co

ntra

ct p

rese

nts a

hig

h ris

k an

d w

ill

be se

lect

ed fo

r ver

ifica

tion,

bas

ed o

n th

e ad

ditio

nal c

heck

list

of t

he p

ublic

pro

cure

men

t pro

cedu

re, a

nd

Ann

ex 0

5a P

OLC

121

will

be

thus

inse

rted.

It

thus

resu

lts th

at, b

ased

on

the

risk

met

hodo

logy

, the

pro

ject

s/th

eir b

enef

icia

ries a

re c

lass

ified

in ri

sk c

ateg

orie

s, an

d th

e pr

oced

ures

for p

ublic

pr

ocur

emen

t rel

ated

to th

eir c

ontra

cts a

re c

heck

ed a

ccor

ding

ly.

In a

dditi

on, i

n or

der t

o im

prov

e th

e ch

ecks

at t

he le

vel o

f MA

SO

P En

viro

nmen

t, th

e op

erat

iona

l pro

cedu

res

wer

e up

date

d in

Jun

e 20

15, b

y in

clus

ion

of t

he r

ecom

men

datio

ns r

ecei

ved

furth

er t

o th

e au

dit

mis

sion

s ca

rrie

d ou

t by

the

nat

iona

l co

mpe

tent

aut

horit

ies

and

by t

he E

C.

Mor

eove

r, th

e M

anag

ing

Aut

horit

y fo

r SO

P En

viro

nmen

t has

als

o is

sued

inte

rnal

inst

ruct

ions

and

inst

ruct

ions

to th

e be

nefic

iarie

s of

pro

ject

s fin

ance

d un

der S

OP

Envi

ronm

ent,

inte

nded

to c

larif

y an

d im

prov

e th

e w

orki

ng m

etho

d.

MA

SO

PIEC

: Fu

rther

to th

e re

com

men

datio

ns o

f the

EC

, MA

SO

P IE

C im

plem

ente

d a

serie

s of

pre

vent

ive

and

corr

ectiv

e m

easu

res,

such

as:

re-c

heck

s of

th

e pu

blic

pro

cure

men

t con

tract

s aw

arde

d, re

-che

cks o

f the

cla

ssifi

catio

n as

SM

E, re

-che

cks o

n th

e co

nflic

t of i

nter

est.

AFI

R:

• In

-dep

th re

-che

cks

(acc

ordi

ng to

sta

ndar

d sh

eets

) of t

he e

ligib

ility

and

sel

ectio

n cr

iteria

and

of t

he c

ondi

tions

to c

reat

e ar

tific

ial c

ondi

tions

be

fore

pay

men

t; • D

raw

ing

up a

gui

de o

n th

e pr

even

tion

of ir

regu

larit

ies p

ublis

hed

on A

FIR

web

site

. M

DR

AP:

In

the

cas

e of

the

Rom

ania

-Bul

garia

Cro

ss B

orde

r C

oope

ratio

n Pr

ogra

mm

e 20

07-2

013,

ext

erna

l ex

perti

se w

as u

sed

for

the

verif

icat

ion

of

publ

ic p

rocu

rem

ent o

f Bul

garia

n pa

rtner

s. Th

e m

anag

ing

auth

ority

for

the

Rom

ania

-Bul

garia

Cro

ss B

orde

r C

oope

ratio

n Pr

ogra

mm

e 20

07-2

013

has

take

n th

e fo

llow

ing

mea

sure

s to

in

crea

se a

bsor

ptio

n:

- The

pro

gram

me

has a

chie

ved

over

-con

tract

ing

abov

e th

e av

aila

ble

allo

catio

n (E

UR

35.

6 m

illio

n);

- Leg

isla

tion

has b

een

amen

ded

to a

llow

any

type

of e

xpen

ditu

re u

ntil

2 m

onth

s afte

r the

com

plet

ion

of th

e pr

ojec

t;

repo

rting

was

sim

plifi

ed, r

epor

ts a

re su

bmitt

ed in

ele

ctro

nic

form

at.

At t

he M

anag

ing

Aut

horit

y fo

r the

Reg

iona

l Ope

ratio

nal P

rogr

amm

e, th

e U

nit f

or v

erifi

catio

n of

pub

lic p

rocu

rem

ents

and

con

flict

of i

nter

est

was

est

ablis

hed

as o

f 1 A

ugus

t 201

2 in

acc

orda

nce

with

Inst

ruct

ion

No

88 o

f 27

July

201

2. S

ince

Sep

tem

ber 2

014,

the

proc

urem

ent o

ffic

ers

at

SVA

PCI a

lso

chec

k th

e pr

ocur

emen

t pro

cedu

res

carr

ied

out f

or a

war

ding

ser

vice

s, su

pply

or w

orks

con

tract

s aw

arde

d by

the

follo

win

g ty

pes

of b

enef

icia

ries:

• C

ham

bers

of C

omm

erce

(CC

), bu

sine

ss a

ssoc

iatio

ns (A

S), c

omm

erci

al c

ompa

nies

or c

oope

rativ

es (S

C);

• Mic

ro e

nter

pris

e (M

I)/re

ligio

us e

ntiti

es (U

C),

non-

gove

rnm

enta

l org

anis

atio

ns (N

GO

s)

• Sm

all a

nd m

ediu

m-s

ized

ent

erpr

ises

(SM

Es).

C

heck

s wer

e in

tend

ed to

find

out

:

195

If p

urch

ases

are

set o

ut in

the

finan

cing

app

licat

ion

(the

natu

re o

f the

exp

endi

ture

and

the

quan

titie

s spe

cifie

d in

the

gran

t app

licat

ion)

; If

pur

chas

es c

ompl

y w

ith t

he p

roce

dura

l an

d le

gisl

ativ

e pr

ovis

ions

on

the

awar

d pr

oced

ures

app

licab

le t

o pr

ivat

e be

nefic

iarie

s (O

rder

No

1050

/201

2, O

rder

112

0/20

13) o

r with

the

prov

isio

ns in

the

anne

x ‘I

nstru

ctio

ns o

n th

e pu

blic

pro

cure

men

ts’ t

o th

e fin

anci

ng c

ontra

ct.

If,

follo

win

g ve

rific

atio

n of

a p

rocu

rem

ent

proc

edur

e by

SV

APC

I pr

ocur

emen

t of

ficer

s, a

brea

ch o

f th

e pr

ocur

emen

t la

w w

as f

ound

in

acco

rdan

ce w

ith A

rticl

e 6

of G

EO 6

6/20

11, e

xpen

ditu

re th

at d

oes

not c

ompl

y w

ith th

e le

galit

y, c

orre

ctne

ss a

nd c

ompl

ianc

e co

nditi

ons

laid

do

wn

in th

e na

tiona

l and

Com

mun

ity le

gisl

atio

n in

for

ce w

as f

ully

or

parti

ally

exc

lude

d fr

om th

e re

fund

/pay

men

t of

expe

nditu

re m

ade

and

decl

ared

by

bene

ficia

ries.

Q 6

.1.

Yes

; A

A:

As r

egar

ds S

truct

ural

and

Coh

esio

n Fu

nds,

the

Aud

it A

utho

rity

uses

a c

heck

list

that

con

tain

s que

stio

ns o

n St

ate

aid,

whi

ch is

use

d by

the

audi

tors

dur

ing

the

audi

t mis

sion

s. W

here

def

icie

ncie

s are

foun

d, re

com

men

datio

ns a

re m

ade

to re

med

y to

thes

e sh

ortc

omin

gs a

nd to

reco

ver

the

amou

nts p

aid

with

out c

ompl

ianc

e w

ith th

e le

gal r

ules

. M

EF IB

/MA

SO

PIEC

: che

cks t

he c

ompl

ianc

e of

the

proj

ects

with

the

rule

s in

the

area

of S

tate

aid

und

er th

e on

-the-

spot

che

cks c

arrie

d ou

t

Q 6

.2.

No;

A

A: U

p to

now

, the

def

icie

ncie

s fou

nd h

ave

been

isol

ated

, not

syst

emic

.

Q 6

.3.

Yes

; M

A-N

RD

P:

The

MA

RD

, as a

dmin

istra

tor o

f Sta

te a

id sc

hem

es fi

nanc

ed fr

om E

AFR

D (n

ot a

s reg

ulat

or in

the

area

of S

tate

aid

), co

nsid

ers t

hat t

he

impl

emen

tatio

n of

the

ex-a

nte

cond

ition

aliti

es o

n St

ate

aid

incl

uded

in th

e Pa

rtner

ship

Agr

eem

ent f

or 2

014-

2020

will

lead

to a

n im

prov

emen

t in

this

are

a. In

this

rega

rd, t

he in

trodu

ctio

n of

the

Gen

eral

Reg

iste

r of S

tate

Aid

in R

oman

ia (R

egA

S) w

ill e

nsur

e be

tter m

onito

ring

and

cont

rol

of S

tate

aid

from

nat

iona

l fun

ds a

nd fr

om st

ruct

ural

inst

rum

ents

. A

A:

In 2

014-

2015

, a n

umbe

r of 6

3 au

dito

rs o

f the

Aud

it A

utho

rity

wer

e tra

ined

on

the

Stat

e ai

d is

sue

(gen

eral

prin

cipl

es, c

once

pts,

type

s of

mea

sure

s of S

tate

aid

, app

licab

le n

atio

nal a

nd C

omm

unity

pro

cedu

re, m

onito

ring,

con

trolli

ng a

nd re

porti

ng S

tate

aid

).

Mor

eove

r, th

e St

ate

Aid

Reg

iste

r — R

egA

S co

mpu

ter a

pplic

atio

n ha

s bee

n de

velo

ped

in R

oman

ia, w

hich

will

be

oper

ated

by

the

Com

petit

ion

Cou

ncil.

The

com

pute

r app

licat

ion

that

will

ent

er in

to o

pera

tion

on 1

Janu

ary

2016

allo

ws,

amon

g ot

hers

, ver

ifica

tion

of th

e el

igib

ility

of t

he

bene

ficia

ries b

efor

e th

e St

ate

aid

or d

e m

inim

is a

id is

gra

nted

. As A

udit

Aut

horit

y, o

ur in

stitu

tion

is a

use

r of t

he IT

app

licat

ion

men

tione

d ab

ove,

whi

ch w

ill b

e a

usef

ul to

ol in

the

dete

ctio

n of

pos

sibl

e ca

ses o

f inf

ringe

men

t of t

he S

tate

aid

rule

s. M

EF

Q 7

.1.

MEF

- D

G A

PE:

Unt

il 30

Nov

embe

r 201

5, fo

r tw

o ER

DF

prog

ram

mes

(RO

P an

d O

PTA

), fo

r tec

hnic

al a

ssis

tanc

e ac

tiviti

es, t

he a

pplic

atio

n of

a fl

at

196

rate

of u

p to

15

% o

f elig

ible

dire

ct st

aff c

osts

is e

nvis

aged

in a

ccor

danc

e w

ith A

rticl

e 68

(1)(

b) o

f Reg

ulat

ion

(EU

) No

1303

/201

3.

MD

RA

P:

Und

er In

terr

eg P

rogr

amm

e V

-A R

oman

ia-B

ulga

ria, s

impl

ified

cos

ts w

ill b

e us

ed fo

r sta

ff c

osts

and

adm

inis

trativ

e co

sts

(opt

iona

l fo

r inf

rast

ruct

ure)

.

Purs

uant

to

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3, A

rticl

e 14

(2)

to (

4) o

f R

egul

atio

n (E

U)

No

1304

/201

3 an

d A

rticl

e 19

of

Reg

ulat

ion

(EU

) N

o 12

99/2

013,

und

er R

OP

2014

-202

0, t

he M

anag

ing

Aut

horit

y fo

r th

e R

egio

nal

Ope

ratio

nal

Prog

ram

me

will

use

the

sim

plifi

ed o

ptio

n of

the

flat-r

ate

finan

cing

of

indi

rect

/adm

inis

trativ

e co

sts

incu

rred

at t

he I

nter

med

iate

B

odie

s, w

hich

are

fin

ance

d un

der

Prio

rity

Axi

s 12

— T

echn

ical

Ass

ista

nce,

con

sist

ing

of 1

5 %

of

the

elig

ible

cos

ts (

the

optio

n de

scrib

ed in

Arti

cle

68(1

)(b)

of R

egul

atio

n (E

U) N

o 13

03/2

013)

.

The

natio

nal

rule

s de

al w

ith t

he c

oncr

ete

mea

ns t

o im

plem

ent

the

prov

isio

ns i

n th

e ab

ove-

men

tione

d EU

Reg

ulat

ions

in

Gov

ernm

ent

Dec

isio

n N

o 39

9/20

15 o

n el

igib

ility

rul

es f

or e

xpen

ditu

re i

ncur

red

durin

g op

erat

ions

fin

ance

d fr

om t

he E

urop

ean

Reg

iona

l Dev

elop

men

t Fun

d, th

e Eu

rope

an S

ocia

l Fun

d an

d th

e C

ohes

ion

Fund

for 2

014-

2020

.

Thus

, Arti

cle

5 of

the

Dec

isio

n pr

ovid

es fo

r the

elig

ibili

ty o

f cos

ts in

the

form

s re

ferr

ed to

in A

rticl

e 67

(1)(

b) to

(d) o

f Reg

ulat

ion

(EU

) No

1303

und

er th

e co

nditi

ons

set o

ut in

Arti

cle

67(3

) and

(4) o

f the

sam

e R

egul

atio

n, a

ccor

ding

to th

e m

etho

d of

cal

cula

tion

and

the

cond

ition

s la

id d

own

by j

oint

ord

er o

f th

e M

inis

ter

for

Euro

pean

Fun

ds a

nd,

whe

re a

ppro

pria

te,

of t

he m

inis

ter

coor

dina

ting

the

Man

agin

g A

utho

rity,

with

the

appr

oval

of t

he M

inis

ter f

or P

ublic

Fin

ance

, in

acco

rdan

ce w

ith th

e re

quire

men

ts in

A

rticl

e 67

(5)

of R

egul

atio

n (E

U)

No

1303

/201

3. P

ursu

ant t

o A

rticl

e 67

(1)(

d) o

f R

egul

atio

n (E

U)

No

1303

/201

3, th

e jo

int o

rder

w

ill d

etai

l the

list

of e

xpen

ses i

nclu

ded

in th

e di

rect

cos

ts, a

nd in

the

dire

ct st

aff c

osts

.

As

rega

rds

the

met

hod

for s

ettin

g th

e fla

t rat

e to

15

% o

f the

elig

ible

sta

ff c

osts

in R

OP

2014

-202

0, fo

r the

Inte

rmed

iate

Bod

ies,

the

met

hod

desc

ribed

in A

rticl

e 67

(5)(

a)(ii

) and

the

verif

iabl

e hi

stor

ical

dat

a on

indi

vidu

al b

enef

icia

ries w

ere

take

n in

to a

ccou

nt.

SL

OV

AK

IA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

197

ESF:

Yes

ERD

F: Y

es

CF:

Yes

Q 1

.2.

Res

pons

e by

the

cen

tral

coor

dina

tion

body

: in

dica

tors

cov

erin

g th

e re

mov

al o

f th

e en

viro

nmen

tal

burd

en;

indi

cato

rs o

f SM

E su

ppor

t in

res

earc

h, d

evel

opm

ent

and

inno

vatio

n; i

ndic

ator

s co

verin

g in

clus

ive

educ

atio

n, i

ncre

ased

lite

racy

and

sup

port

for

lifel

ong

lear

ning

; ind

icat

ors c

over

ing

supp

ort f

or c

omm

unity

-sty

le so

cial

serv

ice

faci

litie

s.

Q 1

.3.

Yes

;

Res

pons

e by

the

cent

ral c

oord

inat

ion

body

: the

ratio

of s

ites t

hat h

ave

unde

rgon

e re

med

iatio

n to

the

tota

l num

ber o

f site

s whe

re e

nviro

nmen

tal

burd

ens

have

bee

n re

cord

ed i

n Sl

ovak

ia;

the

prop

ortio

n of

SM

Es e

ngag

ing

in r

esea

rch,

dev

elop

men

t an

d in

nova

tion;

the

num

ber

of

parti

cipa

nts

who

hav

e ta

ken

part

in a

ctiv

ities

to

impr

ove

skill

s an

d lit

erac

y; t

he p

ropo

rtion

of

supp

orte

d sc

hool

s ap

plyi

ng a

n in

clus

ive

educ

atio

n m

odel

; the

num

ber o

f chi

ldre

n fr

om m

argi

nalis

ed R

oma

com

mun

ities

who

hav

e sp

ent a

t lea

st o

ne y

ear i

n su

ppor

ted

nurs

ery

scho

ols

invo

lved

in a

ctiv

ities

gea

red

tow

ards

pro

mot

ing

incl

usiv

e ed

ucat

ion;

the

ratio

of c

hild

ren

in c

hild

ren’

s ho

mes

who

rece

ive

com

mun

ity-b

ased

ca

re, r

elat

ive

to th

e to

tal n

umbe

r of c

hild

ren

in c

hild

ren’

s hom

es.

Q 2

.2.

Yes

;

The

Min

istry

of E

cono

my

of th

e Sl

ovak

Rep

ublic

, as

the

Man

agin

g A

utho

rity

for t

he O

pera

tiona

l Pro

gram

me

Com

petit

iven

ess

and

Econ

omic

G

row

th, i

n co

llabo

ratio

n w

ith th

e Eu

rope

an I

nves

tmen

t Fun

d (m

anag

ing

the

JER

EMIE

hol

ding

fun

d in

Slo

vaki

a), a

dapt

ed th

e fo

rm u

sed

to

repo

rt fin

anci

al i

nstru

men

ts i

mpl

emen

ted

unde

r th

e O

pera

tiona

l Pr

ogra

mm

e in

the

201

4 A

nnua

l R

epor

t in

acc

orda

nce

with

the

Eur

opea

n C

omm

issi

on’s

requ

irem

ents

.

The

Min

istry

of F

inan

ce is

resp

onsi

ble

for r

epor

ting

on fi

nanc

ial i

nstru

men

ts in

Slo

vaki

a. T

he M

inis

try o

f Edu

catio

n, S

cien

ce, R

esea

rch

and

Spor

t mee

ts a

ll re

quire

men

ts in

this

are

a to

the

requ

isite

qua

lity,

in th

e st

ruct

ure

and

by th

e de

adlin

es im

pose

d by

the

Min

istry

of F

inan

ce. T

he

Min

istry

of

Educ

atio

n, S

cien

ce, R

esea

rch

and

Spor

t di

d no

t re

gist

er a

ny s

hortc

omin

gs o

r ris

ks a

ssoc

iate

d w

ith t

he q

ualit

y of

inf

orm

atio

n re

porte

d to

the

resp

onsi

ble

auth

ority

dur

ing

2014

. The

Min

istry

of A

gric

ultu

re a

nd R

ural

Dev

elop

men

t doe

s its

utm

ost t

o en

sure

that

repo

rts o

n fin

anci

al in

stru

men

ts a

re c

onsi

sten

t with

the

requ

isite

qua

lity,

stru

ctur

e an

d de

adlin

es im

pose

d by

the

Min

istry

of F

inan

ce.

Q 4

.1.

Res

pons

e by

the

cent

ral c

oord

inat

ion

body

: As f

ar a

s the

det

erm

inat

ion

of fi

nanc

ial c

orre

ctio

ns o

r def

icie

ncie

s in

publ

ic p

rocu

rem

ent i

s co

ncer

ned,

the

cent

ral c

oord

inat

ion

body

has

issu

ed a

gui

danc

e no

te o

n de

term

inin

g th

e le

vel o

f the

refu

nd o

f any

con

tribu

tion

gran

ted,

or a

ny

part

ther

eof,

if pu

blic

pro

cure

men

t rul

es a

nd p

roce

dure

s are

infr

inge

d. G

uida

nce

Not

e 11

app

lies t

o th

e 20

07-2

013

prog

ram

min

g pe

riod,

whi

le

Gui

danc

e N

ote

5 ap

plie

s to

the

new

201

4-20

20 p

rogr

amm

ing

perio

d. B

oth

of th

ese

docu

men

ts tr

ansp

ose

Com

mis

sion

Dec

isio

n of

19

Dec

embe

r 201

3, C

(201

3) 9

527

final

– C

omm

issi

on D

ecis

ion

on th

e se

tting

out

and

app

rova

l of t

he g

uide

lines

for d

eter

min

ing

finan

cial

co

rrec

tions

to b

e m

ade

by th

e C

omm

issi

on to

exp

endi

ture

fina

nced

by

the

Uni

on u

nder

shar

ed m

anag

emen

t, fo

r non

-com

plia

nce

with

the

rule

s

198

on p

ublic

pro

cure

men

t. Th

is g

uida

nce

note

sets

out

the

diff

eren

t typ

es o

f mos

t com

mon

and

mos

t ser

ious

infr

inge

men

ts o

f pub

lic p

rocu

rem

ent

rule

s and

pro

cedu

res t

hat h

ave

had

or c

ould

hav

e an

impa

ct o

n th

e re

sult

of p

rocu

rem

ent;

it de

term

ines

the

perc

enta

ge o

f the

rate

of f

inan

cial

co

rrec

tions

that

the

com

pete

nt m

anag

ing

auth

oriti

es sh

ould

hav

e ap

plie

d in

resp

onse

to th

e id

entif

icat

ion

of su

ch d

efic

ienc

ies.

Th

e ce

ntra

l coo

rdin

atio

n bo

dy h

as is

sued

a g

uida

nce

note

to a

sses

s con

flict

s of i

nter

est i

n pu

blic

pro

cure

men

t. Th

e ai

m o

f thi

s doc

umen

t is t

o la

y do

wn

grou

nd ru

les t

hat m

ust b

e fo

llow

ed b

y m

anag

ing

auth

oriti

es re

spon

sibl

e fo

r the

impl

emen

tatio

n of

ope

ratio

nal p

rogr

amm

es w

hen

iden

tifyi

ng a

nd a

sses

sing

con

flict

s of i

nter

est i

n pu

blic

pro

cure

men

t, w

hich

are

one

of t

he m

ost s

erio

us p

ossi

ble

defic

ienc

ies c

apab

le o

f di

stor

ting

fair

com

petit

ion.

Th

e ES

IF m

anag

emen

t sys

tem

for t

he 2

014-

2020

pro

gram

min

g pe

riod,

with

in th

e fr

amew

ork

of a

dmin

istra

tive

chec

ks o

n pu

blic

pro

cure

men

t, in

trodu

ced

the

conc

ept o

f a c

ompu

lsor

y in

itial

ex

ante

che

ck fo

r all

abov

e-th

e-th

resh

old

cont

ract

s and

bel

ow-th

e-th

resh

old

cont

ract

s aw

arde

d vi

a th

e el

ectro

nic

mar

ketp

lace

(fro

m a

spec

ific

estim

ated

val

ue o

f the

con

tract

upw

ards

), i.e

. che

cks o

n a

sele

cted

par

t of t

he d

ocum

enta

tion

on

the

publ

ic p

rocu

rem

ent u

nder

pre

para

tion

(e.g

. the

dra

ft co

ntra

ct n

otic

e, th

e dr

aft t

ende

r doc

umen

ts, e

tc.),

ahe

ad o

f the

ann

ounc

emen

t of t

he

cont

ract

ing

proc

edur

e w

ith a

vie

w to

elim

inat

ing

erro

rs a

nd sh

ortc

omin

gs in

the

draf

t doc

umen

tatio

n of

the

publ

ic p

rocu

rem

ent,

ther

eby

redu

cing

the

risk

of a

n in

frin

gem

ent o

f pub

lic p

rocu

rem

ent r

ules

and

pro

cedu

res.

On

the

basi

s of c

oope

ratio

n ag

reem

ents

bet

wee

n m

anag

ing

auth

oriti

es a

nd th

e O

ffic

e fo

r Pub

lic P

rocu

rem

ent,

ther

e w

as a

n in

crea

se in

the

num

ber o

f che

cks c

over

ed b

y th

e O

ffic

e’s a

dmin

istra

tive

capa

citie

s; m

anag

ing

auth

oriti

es w

ill a

lso

have

the

oppo

rtuni

ty to

seek

– fr

om th

e O

ffic

e –

pers

onal

con

sulta

tions

, opi

nion

s on

parti

al p

robl

ems

in p

ublic

pro

cure

men

t, an

d co

oper

atio

n in

the

eval

uatio

n of

the

audi

t fin

ding

s of t

he E

urop

ean

Com

mis

sion

or t

he E

urop

ean

Cou

rt of

Aud

itors

. In

mat

ters

rela

ting

to th

e sa

fegu

ardi

ng o

f com

petit

ion,

coo

pera

tion

betw

een

the

man

agin

g au

thor

ities

and

the

Ant

imon

opol

y O

ffic

e w

as

rein

forc

ed. U

nder

a c

oope

ratio

n ag

reem

ent,

man

agin

g au

thor

ities

will

hav

e th

e op

portu

nity

to a

pply

to th

e O

ffic

e in

writ

ing

for a

con

sulta

tion

or to

file

susp

ecte

d in

frin

gem

ents

of t

he la

w o

n th

e pr

otec

tion

of c

ompe

titio

n (in

par

ticul

ar c

arte

l agr

eem

ents

in p

ublic

pro

cure

men

t) w

ith th

e O

ffic

e.

Q 5

.1.

Yes

; R

espo

nse

by t

he c

entra

l co

ordi

natio

n bo

dy:

On

20 N

ovem

ber

2014

, th

e Sl

ovak

Gov

ernm

ent

pass

ed a

res

olut

ion

adop

ting

the

ESIF

M

anag

emen

t Sy

stem

for

the

201

4-20

20 p

rogr

amm

ing

perio

d. I

n pu

blic

pro

cure

men

t ch

ecks

, th

is e

ncom

pass

es t

he f

ollo

win

g m

easu

res

to

impr

ove

man

agem

ent v

erifi

catio

ns a

nd to

enh

ance

the

effe

ctiv

enes

s of t

he c

heck

s car

ried

out b

efor

e ce

rtify

ing

expe

nditu

re to

the

Com

mis

sion

: - t

he in

trodu

ctio

n of

the

conc

ept o

f a c

ompu

lsor

y in

itial

ex

ante

che

ck fo

r all

abov

e-th

e-th

resh

old

cont

ract

s an

d be

low

-the-

thre

shol

d co

ntra

cts

awar

ded

via

the

elec

troni

c m

arke

tpla

ce (

from

a s

peci

fic e

stim

ated

val

ue o

f th

e co

ntra

ct u

pwar

ds),

i.e.

chec

ks o

n a

sele

cted

par

t of

the

do

cum

enta

tion

on t

he p

ublic

pro

cure

men

t un

der

prep

arat

ion

(e.g

. th

e dr

aft

cont

ract

not

ice,

the

dra

ft te

nder

doc

umen

ts,

docu

men

ts

dem

onst

ratin

g ho

w th

e es

timat

ed v

alue

of t

he c

ontra

ct w

as d

eter

min

ed, e

tc.),

ahe

ad o

f the

ann

ounc

emen

t of t

he c

ontra

ctin

g pr

oced

ure;

- i

ntro

duct

ion

of th

e co

ncep

t of r

isk

anal

ysis

, the

out

com

e of

whi

ch fo

rms

a ba

sis

for a

dec

isio

n on

whe

ther

the

Off

ice

for P

ublic

Pro

cure

men

t is

to c

arry

out

a m

anda

tory

che

ck o

n th

e pu

blic

pro

cure

men

t con

cern

ed. T

his

enco

mpa

sses

adm

inis

trativ

e ch

ecks

bef

ore

and

afte

r the

con

tract

w

ith th

e su

cces

sful

tend

erer

has

bee

n si

gned

. -

clos

er c

oope

ratio

n be

twee

n M

anag

ing

Aut

horit

y’s

and

the

Off

ice

for

Publ

ic P

rocu

rem

ent u

nder

coo

pera

tion

agre

emen

ts: t

here

will

be

an

incr

ease

in th

e nu

mbe

r of

pub

lic p

rocu

rem

ent p

roce

dure

s ob

ject

to c

heck

s by

the

Off

ice,

the

oppo

rtuni

ty f

or m

anag

ing

auth

oriti

es to

see

k –

from

the

Off

ice

– pe

rson

al c

onsu

ltatio

ns, o

pini

ons

on p

artia

l pro

blem

s in

pub

lic p

rocu

rem

ent,

and

coop

erat

ion

in th

e ev

alua

tion

of th

e au

dit

findi

ngs o

f the

Com

mis

sion

or t

he C

ourt

of A

udito

rs.

- cl

oser

coo

pera

tion

betw

een

the

man

agin

g au

thor

ities

and

the

Ant

imon

opol

y O

ffic

e in

mat

ters

rel

atin

g to

the

safe

guar

ding

of

com

petit

ion:

199

unde

r a

coop

erat

ion

agre

emen

t, m

anag

ing

auth

oriti

es w

ill h

ave

the

oppo

rtuni

ty to

app

ly to

the

Off

ice

in w

ritin

g fo

r a

cons

ulta

tion

or to

file

su

spec

ted

infr

inge

men

ts o

f the

law

on

the

prot

ectio

n of

com

petit

ion

(in p

artic

ular

car

tel a

gree

men

ts in

pub

lic p

rocu

rem

ent)

with

the

Off

ice.

-

the

oppo

rtuni

ty to

app

ly to

the

Off

ice

for

Publ

ic P

rocu

rem

ent f

or a

che

ck o

n an

abo

ve-th

e-th

resh

old

cont

ract

if o

nly

one

or tw

o bi

ds h

ave

been

subm

itted

. - t

he ti

ghte

ning

of r

ules

on

the

awar

d of

low

-val

ue c

ontra

cts

abov

e EU

R 5

000

in o

rder

to e

nhan

ce tr

ansp

aren

cy: t

he o

blig

atio

n to

pub

lish

an

invi

tatio

n to

tend

er o

n th

e be

nefic

iary

’s w

ebsi

te, t

he o

blig

atio

n to

invi

te a

t lea

st fi

ve se

lect

ed c

andi

date

s to

tend

er.

- th

e pu

blic

atio

n of

the

cent

ral c

oord

inat

ion

body

’s G

uida

nce

Not

e 13

(20

14-2

020

prog

ram

min

g pe

riod)

on

the

asse

ssm

ent o

f co

nflic

ts o

f in

tere

st in

pub

lic p

rocu

rem

ent.

Oth

er m

easu

res t

o im

prov

e m

anag

emen

t ver

ifica

tions

and

to e

nhan

ce th

e ef

fect

iven

ess o

f che

cks:

-

the

publ

icat

ion

of t

he c

entra

l co

ordi

natio

n bo

dy’s

Gui

danc

e N

ote

6 (2

014-

2020

pro

gram

min

g pe

riod)

on

elig

ibili

ty r

ules

for

the

mos

t co

mm

on e

xpen

ditu

re g

roup

s, to

est

ablis

h a

cohe

rent

app

roac

h to

ass

essi

ng th

e el

igib

ility

of s

ome

of th

e m

ost c

omm

on e

xpen

ditu

re g

roup

s th

at

are

to e

nsur

e th

e un

iform

app

licat

ion

of e

ligib

ility

rule

s und

er a

ll op

erat

iona

l pro

gram

mes

. -

the

publ

icat

ion

of t

he c

entra

l co

ordi

natio

n bo

dy’s

Gui

danc

e N

ote

18 (

2014

-202

0 pr

ogra

mm

ing

perio

d) o

n th

e ve

rific

atio

n of

the

cos

t-ef

fect

iven

ess

of e

xpen

ditu

re, a

imed

at f

orm

ulat

ing

unde

rlyin

g co

nsid

erat

ions

, rec

omm

enda

tions

and

pro

cedu

res

for

the

proc

ess

of a

sses

sing

th

e pr

inci

ple

of th

e co

st-e

ffec

tiven

ess o

f pro

ject

exp

endi

ture

and

/or g

rant

app

licat

ions

.

Q 6

.1.

Yes

Q 6

.2.

Yes

; R

espo

nse

by th

e au

dit a

utho

rity:

Fai

lure

to m

eet t

he d

eadl

ine

for n

otify

ing

the

gran

ting

of d

e m

inim

is a

id b

y th

e sc

hem

e op

erat

or. F

ailu

re to

de

sign

ate

resp

onsi

bilit

y fo

r not

ifyin

g th

e gr

antin

g of

aid

by

the

sche

me

oper

ator

. R

espo

nse

by th

e ce

rtify

ing

auth

ority

: Fai

lure

to a

sses

s Sta

te a

id fo

r an

unde

rtaki

ng w

ithin

the

grou

p of

und

erta

king

s, ta

king

acc

ount

of t

heir

inte

rcon

nect

ion.

Fai

lure

to a

sses

s Sta

te a

id fo

r a sp

ecifi

c ap

plic

ant i

n th

e gr

ant e

valu

atio

n pr

oces

s, bu

t onl

y fo

r the

invi

tatio

n as

a w

hole

.

Q 6

.3.

Yes

; R

espo

nse

by th

e au

dit a

utho

rity:

The

aud

itors

’ rec

omm

enda

tion

in re

spon

se to

the

defic

ienc

ies i

dent

ified

in th

e re

alm

of S

tate

aid

was

to

ensu

re th

e es

tabl

ishm

ent o

f pro

cedu

re w

ith a

pre

cise

and

det

aile

d de

sign

atio

n of

the

sequ

ence

of s

teps

, fro

m th

e as

sign

men

t of t

he ta

sk to

a

spec

ific

inte

rnal

MA

/IB se

rvic

e (th

e ai

d sc

hem

e op

erat

or) t

hrou

gh to

the

com

plet

ion

ther

eof,

with

an

indi

catio

n of

the

posi

tion

of th

e M

A/IB

em

ploy

ee re

spon

sibl

e fo

r car

ryin

g ou

t the

task

aris

ing

from

the

oblig

atio

n to

not

ify th

e M

inis

try o

f Fin

ance

of t

he g

rant

ing

of d

e m

inim

is a

id

by th

e se

t dea

dlin

es.

Res

pons

e by

the

cent

ral c

oord

inat

ion

body

: On

20 N

ovem

ber 2

014,

the

Slov

ak G

over

nmen

t pas

sed

a re

solu

tion

adop

ting

the

ESIF

M

anag

emen

t Sys

tem

for t

he 2

014-

2020

pro

gram

min

g pe

riod.

Sec

tion

3.6,

regu

latin

g St

ate

aid

issu

es, i

s bas

ed o

n A

rticl

es 1

06 to

109

of t

he

Trea

ty o

n th

e Fu

nctio

ning

of t

he E

U, n

atio

nal l

egis

latio

n (A

ct N

o 23

1/19

99 o

n St

ate

aid)

, the

cas

e-la

w o

f the

Eur

opea

n C

ourt

of Ju

stic

e an

d th

e C

omm

issi

on’s

dec

isio

n-m

akin

g pr

actic

e. T

his p

art o

f the

man

agem

ent s

yste

m is

a S

tate

aid

con

cept

def

inin

g se

rvic

es o

f gen

eral

eco

nom

ic

inte

rest

, de

min

imis

aid

and

the

Stat

e ai

d te

st. A

mod

el S

tate

aid

test

has

bee

n dr

awn

up b

y th

e ce

ntra

l coo

rdin

atio

n bo

dy.

200

Q 7

.1.

ESF:

The

Ope

ratio

nal P

rogr

amm

e H

uman

Res

ourc

es M

A p

lans

to u

se th

e fo

llow

ing

sim

plifi

catio

ns in

par

ticul

ar in

the

2014

-202

0 pr

ogra

mm

ing

perio

d:

- Th

e ap

plic

atio

n of

a f

lat r

ate

of in

dire

ct e

xpen

ditu

re, a

s se

t for

th in

Arti

cle

68(1

)(a)

of

Reg

ulat

ion

(EU

) N

o 13

03/2

013

of th

e Eu

rope

an P

arlia

men

t and

of

the

Cou

ncil,

to n

atio

nal p

roje

cts

dedi

cate

d to

act

ive

labo

ur m

arke

t mea

sure

s un

der

the

Ope

ratio

nal

Prog

ram

me

Hum

an R

esou

rces

;

- Th

e ap

plic

atio

n of

a s

tand

ard

scal

e of

uni

t cos

ts, a

s se

t for

th in

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3 of

the

Euro

pean

Par

liam

ent a

nd o

f th

e C

ounc

il, u

nder

the

Ope

ratio

nal P

rogr

amm

e H

uman

Res

ourc

es w

ithin

the

scop

e of

the

Nat

iona

l Pr

ojec

t ‘C

are

serv

ice

supp

ort’;

- Th

e ap

plic

atio

n of

a s

tand

ard

scal

e of

uni

t cos

ts, a

s se

t for

th in

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3 of

the

Euro

pean

Par

liam

ent a

nd o

f th

e C

ounc

il, u

nder

the

Ope

ratio

nal P

rogr

amm

e H

uman

Res

ourc

es w

ithin

the

scop

e of

the

Nat

iona

l Pr

ojec

t ‘So

cial

fiel

d w

ork

in m

unic

ipal

ities

I’;

- Th

e ap

plic

atio

n of

a s

tand

ard

scal

e of

uni

t cos

ts, a

s se

t for

th in

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3 of

the

Euro

pean

Par

liam

ent

and

of t

he C

ounc

il, u

nder

the

Ope

ratio

nal

Prog

ram

me

Hum

an R

esou

rces

in

the

2014

-202

0 pr

ogra

mm

ing

perio

d w

ithin

the

scop

e of

the

Nat

iona

l Pro

ject

‘Sup

port

for t

he d

evel

opm

ent o

f soc

ial w

ork

in c

lient

s’ fa

mily

set

tings

in th

e fie

ld

of so

cial

aff

airs

and

fam

ily’;

- Th

e ap

plic

atio

n of

a s

tand

ard

scal

e of

uni

t cos

ts, a

s se

t for

th in

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3 of

the

Euro

pean

Par

liam

ent

and

of t

he C

ounc

il, u

nder

the

Ope

ratio

nal

Prog

ram

me

Hum

an R

esou

rces

in

the

2014

-202

0 pr

ogra

mm

ing

perio

d w

ithin

the

scop

e of

the

Nat

iona

l Pro

ject

‘Sup

port

of se

lect

ed c

risis

inte

rven

tion

soci

al se

rvic

es a

t com

mun

ity le

vel’;

- Th

e ap

plic

atio

n of

a s

tand

ard

scal

e of

uni

t cos

ts, a

s se

t for

th in

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3 of

the

Euro

pean

Par

liam

ent

and

of t

he C

ounc

il, u

nder

the

Ope

ratio

nal

Prog

ram

me

Hum

an R

esou

rces

in

the

2014

-202

0 pr

ogra

mm

ing

perio

d w

ithin

the

scop

e of

the

Nat

iona

l Pro

ject

‘Sup

port

for t

he d

eins

titut

iona

lisat

ion

of fo

ster

car

e’.

In th

e 20

14-2

020

prog

ram

min

g pe

riod,

und

er th

e Ed

ucat

ion

prio

rity

axis

, the

Min

istry

of E

duca

tion,

Sci

ence

, Res

earc

h an

d Sp

ort

will

app

ly s

tand

ard

scal

es o

f un

it co

sts,

as s

et f

orth

in

Arti

cles

67

and

68 o

f R

egul

atio

n (E

U)

No

1303

/201

3 of

the

Eur

opea

n Pa

rliam

ent a

nd o

f the

Cou

ncil,

in n

atio

nal a

nd d

eman

d-si

de p

roje

cts,

as w

ell a

s a 1

5 %

flat

rate

for i

ndire

ct e

xpen

ditu

re, a

s set

forth

in

Arti

cle

68(1

b) o

f Reg

ulat

ion

(EU

) No

1303

/201

3. T

his

will

be

appl

ied

via

a de

lega

ted

act i

n ac

cord

ance

with

Arti

cle

14(1

) of

Reg

ulat

ion

(EU

) No

1304

/201

3 on

the

Euro

pean

Soc

ial F

und.

At t

he C

omm

issi

on’s

requ

est,

the

Min

istry

is p

lann

ing

to a

pply

a 5

0 %

allo

catio

n un

der t

he E

duca

tion

prio

rity

axis

of t

he O

pera

tiona

l Pro

gram

me

Hum

an R

esou

rces

via

sim

plifi

ed re

porti

ng.

201

The

Min

istry

is

also

con

side

ring

the

appl

icat

ion

of a

fla

t ra

te o

f 15

% o

f el

igib

le d

irect

sta

ff c

osts

and

has

not

rul

ed o

ut t

he

poss

ibili

ty o

f app

lyin

g ce

rtain

out

puts

of p

rice

map

s in

the

form

of s

tand

ard

scal

es o

f uni

t cos

ts in

the

futu

re.

ERD

F: O

pera

tiona

l Pro

gram

me

Hum

an R

esou

rces

MA

: The

intro

duct

ion

of s

impl

ified

cos

t rep

ortin

g is

not

bei

ng c

onsi

dere

d fo

r Pr

iorit

y A

xis

6, w

hich

is E

RD

F-fin

ance

d. T

his

prio

rity

axis

cov

ers

inve

stm

ent p

roje

cts

whe

re th

e m

ain

budg

et li

ne is

con

stru

ctio

n w

orks

, the

am

ount

of w

hich

is ti

ed to

ben

chm

arks

. Oth

er b

udge

t lin

es (e

quip

men

t, bu

ildin

g su

perv

isio

n, s

uppo

rting

act

iviti

es) a

re

tied,

on

a pe

rcen

tage

bas

is, t

o th

e va

lue

of c

onst

ruct

ion

wor

ks o

r the

val

ue o

f the

pro

ject

. The

re a

re c

urre

ntly

no

plan

s to

intro

duce

si

mpl

ified

cos

t rep

ortin

g in

the

form

of,

for e

xam

ple,

flat

-rat

e ex

pend

iture

.

SL

OV

EN

IA

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

Yes

;

Min

istry

of

Econ

omic

Dev

elop

men

t and

Tec

hnol

ogy

(MG

RT)

: In

2007

-201

3/15

the

MG

RT

has

carr

ied

out p

rimar

ily th

e ER

DF

and

in p

art a

lso

the

ESF,

and

cou

ld th

eref

ore

conf

irm th

at w

e ar

e us

ing

the

com

mon

indi

cato

rs a

s se

t out

in th

e O

P SR

DP

and

the

OP

HR

D 2

007-

2013

.

Q 1

.2.

Min

istry

of A

gric

ultu

re, F

ores

try a

nd F

ood

(MK

GP)

:

In t

he r

ural

dev

elop

men

t pr

ogra

mm

e of

the

Rep

ublic

of

Slov

enia

201

4-20

20 (

RD

P), t

he M

inis

try o

f A

gric

ultu

re, F

ores

try a

nd

Food

sel

ecte

d 5

(5)

of t

he i

ndic

ator

s se

t ou

t in

the

per

form

ance

fra

mew

ork

prop

osed

by

the

Com

mis

sion

(Se

ctio

n 7

RD

P

202

Des

crip

tion

of th

e pe

rfor

man

ce fr

amew

ork)

and

the

five

(5) a

ltern

ativ

e or

add

ition

al p

erfo

rman

ce in

dica

tors

.

EC p

erfo

rman

ce f

ram

ewor

k in

dica

tors

: Tot

al p

ublic

exp

endi

ture

for

prio

rity

2, 3

, 4 a

nd 6

and

the

popu

latio

n co

vere

d by

LA

G

(foc

us a

rea

6B),

Com

mis

sion

add

ition

al p

erfo

rman

ce i

ndic

ator

s: n

umbe

r of

agr

icul

tura

l ho

ldin

gs w

ith R

DP

supp

ort

for

inve

stm

ents

in

rest

ruct

urin

g or

mod

erni

satio

n (2

A),

num

ber

of o

pera

tions

sup

porte

d in

the

pro

cess

ing,

mar

ketin

g an

d/or

de

velo

pmen

t of

agr

icul

tura

l pr

oduc

ts (

3A),

agric

ultu

ral

land

sup

porte

d un

der

mea

sure

M 1

1 (h

a) (

4AB

C),

agric

ultu

ral

land

su

ppor

ted

unde

r mea

sure

M 1

3 (h

a) (4

AB

C) a

nd n

umbe

r of o

pera

tions

supp

orte

d un

der t

he in

vest

men

t in

fore

stry

tech

nolo

gies

and

in

pro

cess

ing,

in m

obili

sing

and

in m

arke

ting

of fo

rest

pro

duct

s (6A

).

Q 1

.3.

Yes

;

Gov

ernm

ent O

ffic

e fo

r Dev

elop

men

t and

Eur

opea

n C

ohes

ion

Polic

y (S

VRK

): W

e be

lieve

that

we

can

prov

ide

usef

ul d

ata,

whi

ch h

owev

er w

ill

prim

arily

be

base

d on

out

com

e in

dica

tors

, whe

re th

e re

sults

will

not

be

as fa

st. T

he p

erfo

rman

ce fr

amew

ork

is a

lso

set u

p th

is w

ay.

Min

istry

of

Econ

omic

Dev

elop

men

t and

Tec

hnol

ogy

(MG

RT)

: At t

he M

GR

T, w

ith r

egar

d to

the

inst

rum

ents

that

we

impl

emen

ted

in 2

007-

2013

, on

the

basi

s of t

he in

stru

ctio

ns o

f the

man

agin

g au

thor

ity w

e w

ill b

e ab

le to

pro

vide

the

stat

istic

s i.e

. ach

ieve

men

t of t

he in

dica

tors

whi

ch

we

liste

d an

d m

onito

red

for t

he in

divi

dual

inte

rven

tions

.

Q 2

.2.

Yes

;

Min

istry

of A

gric

ultu

re, F

ores

try a

nd F

ood

(MK

GP)

:

Inst

ruct

ions

for

rep

ortin

g on

fin

anci

al in

stru

men

ts (

refe

renc

e: E

GES

IF-1

5001

5 –

6.5.

2015

) ha

ve b

een

prep

ared

for

the

ERD

F an

d th

e ES

F Fu

nds,

but t

he M

inis

try o

f Agr

icul

ture

, For

estry

and

Foo

d, a

s th

e m

anag

ing

auth

ority

of t

he ru

ral d

evel

opm

ent p

rogr

amm

e, in

the

fram

ewor

k of

whi

ch th

e us

e of

fin

anci

al in

stru

men

ts is

als

o pl

anne

d fo

r th

e pr

ogra

mm

ing

perio

d 20

14-2

020,

will

nev

erth

eles

s pr

ovid

e a

repl

y to

this

qu

estio

n.

The

Min

istry

of

Agr

icul

ture

, Fo

rest

ry a

nd F

ood

will

, as

the

man

agin

g au

thor

ity o

f th

e ru

ral

deve

lopm

ent

prog

ram

me

of t

he R

epub

lic o

f Sl

oven

ia fo

r the

per

iod

2014

-202

0, in

the

cont

ext o

f rep

ortin

g on

fina

ncia

l ins

trum

ents

mee

t all

of th

e re

quire

men

ts o

f the

regu

latio

ns a

nd th

e de

lega

ted

and

impl

emen

ting

regu

latio

ns (i

nclu

ding

Com

mis

sion

Impl

emen

ting

Reg

ulat

ion

(EU

) No

821/

2014

of 2

8 Ju

ly 2

014)

with

rega

rd to

th

e co

rrec

t rep

ortin

g of

the

impl

emen

tatio

n of

the

finan

cial

inst

rum

ents

. The

man

agin

g au

thor

ity is

impl

emen

ting

finan

cial

inst

rum

ents

und

er

the

EAFR

D fo

r the

firs

t tim

e in

the

2014

-202

0 pr

ogra

mm

ing

perio

d, a

nd th

us w

e ha

ve n

o pr

evio

us e

xper

ienc

e in

this

are

a. In

ligh

t of t

he a

bove

w

e w

ill w

hen

repo

rting

on

finan

cial

inst

rum

ents

in th

e co

ntex

t of

the

RD

P 20

14-2

020

com

ply

with

the

requ

irem

ents

of

the

regu

latio

ns a

nd

dele

gate

d an

d im

plem

entin

g re

gula

tions

and

oth

er i

nstru

ctio

ns,

guid

ance

and

gui

delin

es i

ssue

d by

the

Eur

opea

n C

omm

issi

on o

r, m

utat

is

mut

andi

s, ta

king

int

o ac

coun

t th

e in

stru

ctio

ns f

or r

epor

ting

on f

inan

cial

ins

trum

ents

(re

fere

nce:

EG

ESIF

-150

015

– 6.

5.20

15),

as w

ell

as

exam

ples

of g

ood

prac

tice

and

the

expe

rienc

e of

oth

er M

embe

r Sta

tes.

Gov

ernm

ent O

ffic

e fo

r D

evel

opm

ent a

nd E

urop

ean

Coh

esio

n Po

licy

(SV

RK

): In

its

annu

al r

epor

t on

the

impl

emen

tatio

n of

the

Ope

ratio

nal

Prog

ram

me

for

Stre

ngth

enin

g R

egio

nal

Dev

elop

men

t Po

tent

ials

for

the

per

iod

2007

-201

3 as

par

t of

whi

ch f

inan

cial

ins

trum

ents

wer

e

203

impl

emen

ted,

for 2

014

Slov

enia

repo

rted

on th

e ba

sis o

f the

new

repo

rt te

mpl

ate

adop

ted

in M

ay b

y th

e EG

ESIF

. The

dat

a in

the

repo

rt fo

r the

ye

ar 2

014

wer

e du

ly c

ompl

eted

and

cor

rect

ed a

ccor

ding

to th

e EC

com

men

ts o

n th

e re

port

on fi

nanc

ial i

nstru

men

ts in

pas

t yea

rs.

Min

istry

of E

cono

mic

Dev

elop

men

t and

Tec

hnol

ogy

(MG

RT)

: With

rega

rd to

fina

ncia

l ins

trum

ents

, we

do n

ot h

ave

any

data

that

any

sepa

rate

m

easu

res

have

bee

n ad

opte

d fo

r im

prov

ing

the

qual

ity o

f re

porti

ng. W

e es

tabl

ishe

d th

e re

porti

ng m

etho

d du

ring

the

plan

ning

of

the

PFEI

. R

epor

ting

shal

l be

done

by

the

MG

RT/

Slo

veni

an E

nter

pris

e Fu

nd (S

EF) a

s ho

ldin

g fu

nd m

anag

er, M

A-S

EF, E

C-M

GR

T/SE

F, M

F-SE

F, e

tc.

In a

dditi

on to

the

regu

lar r

epor

ting

in a

ccor

danc

e w

ith F

inan

cing

Agr

eem

ent (

quar

terly

, ann

ual,

inte

rim, f

inal

) the

SEF

will

als

o re

port

to th

e M

F m

onth

ly o

n th

e ba

lanc

es o

f the

fund

s. W

e al

so re

port

to th

e M

A o

n th

e im

plem

enta

tion

of fi

nanc

ial e

ngin

eerin

g in

stru

men

ts in

the

form

of

exte

nsiv

e EL

tabl

es.

Q 4

.1.

Min

istry

of F

inan

ce —

Bud

get S

uper

visi

on O

ffic

e (B

SO):

NO

G

over

nmen

t Off

ice

for D

evel

opm

ent a

nd E

urop

ean

Coh

esio

n Po

licy

(SV

RK

): Th

e Pu

blic

Pro

cure

men

t Act

pro

vide

s san

ctio

ns fo

r maj

or

infr

inge

men

ts, w

hich

are

con

side

red

an o

ffen

ce fo

r whi

ch fi

nanc

ial p

enal

ties (

fines

) are

pre

scrib

ed in

rela

tion

to th

e gr

avity

of t

he

infr

inge

men

t. In

add

ition

, we

also

use

the

Com

mis

sion

gui

delin

es in

this

are

a an

d th

e in

stru

ctio

ns o

f the

man

agin

g au

thor

ity (M

A) o

n m

anag

emen

t ver

ifica

tions

, whi

ch a

re b

ased

on

or su

mm

aris

e th

e C

omm

issi

on g

uide

lines

. M

inis

try o

f Eco

nom

ic D

evel

opm

ent a

nd T

echn

olog

y (M

GR

T): A

t the

MG

RT

we

adhe

re to

the

EU ru

les a

nd le

gisl

atio

n an

d th

e na

tiona

l le

gisl

atio

n (P

PA).

Infr

inge

men

ts o

f the

legi

slat

ion

are

treat

ed in

acc

orda

nce

with

EU

inst

ruct

ions

(CO

CO

F G

uide

lines

) and

the

inst

ruct

ions

of

the

MA

. A

s reg

ards

fina

ncia

l eng

inee

ring

inst

rum

ents

, we

did

not c

ondu

ct p

ublic

pro

cure

men

t pro

cedu

res e

xcep

t in

case

s whe

re it

was

nec

essa

ry to

ca

rry

out a

n an

alys

is/s

tudy

(e.g

. ex

ante

ass

essm

ent o

f fin

anci

al in

stru

men

ts, a

naly

sis o

f equ

ity fi

nanc

ing,

etc

.). In

thes

e ca

ses w

e to

ok in

to

acco

unt b

oth

the

natio

nal (

PPA

) as w

ell a

s EU

legi

slat

ion.

In th

e im

plem

enta

tion

of fi

nanc

ial e

ngin

eerin

g in

stru

men

ts o

r allo

catio

n of

re

sour

ces w

e us

ed a

pub

lic p

rocu

rem

ent p

roce

ss w

here

we

took

acc

ount

of t

he S

love

nian

legi

slat

ion

(Sup

porti

ve E

nviro

nmen

t for

En

trepr

eneu

rshi

p A

ct, c

ohes

ion

regu

latio

n, e

tc.)

and

EU le

gisl

atio

n (S

tate

Aid

, Coh

esio

n R

egul

atio

ns 1

083/

2006

and

182

8/20

06).

Q 5

.1.

Yes

; G

over

nmen

t Off

ice

for D

evel

opm

ent a

nd E

urop

ean

Coh

esio

n Po

licy

(SV

RK

): Th

e an

nual

trai

ning

on

publ

ic p

rocu

rem

ent a

nd b

uild

ing

upon

th

e m

anag

ing

auth

ority

’s in

stru

ctio

ns o

n m

anag

emen

t ver

ifica

tions

and

con

trol d

ocum

ents

, it e

mer

ges

that

the

erro

r ra

te in

the

awar

ding

of

publ

ic p

rocu

rem

ent c

ontra

cts h

as b

een

redu

ced.

M

inis

try o

f Eco

nom

ic D

evel

opm

ent a

nd T

echn

olog

y (M

GR

T): I

n th

e im

plem

enta

tion

of in

stru

men

ts w

e ta

ke in

to a

ccou

nt th

e in

stru

ctio

ns o

f th

e M

A, w

hich

def

ine

proc

edur

es f

or im

plem

entin

g ad

min

istra

tive

cont

rol u

nder

Arti

cle

13 (

and

125

for

the

perio

d 20

14-2

020)

and

on-

the-

spot

che

cks.

Mon

itorin

g of

the

use

of

fund

s is

als

o co

nduc

ted

by t

he M

F, B

SO,

EC a

nd t

he S

love

nian

Cou

rt of

Aud

it.

As

rega

rds

the

impl

emen

tatio

n, m

onito

ring

and

cont

rol o

f the

impl

emen

tatio

n of

fina

ncia

l eng

inee

ring

inst

rum

ents

, the

MG

RT

has

prep

ared

inst

ruct

ions

on

man

agem

ent v

erifi

catio

ns, w

here

a p

artic

ular

pro

cess

, ris

k an

alys

is, c

ontro

l, et

c., i

s pr

escr

ibed

. We

also

wor

k w

ith th

e B

SO, w

hich

regu

larly

ca

rrie

s out

insp

ectio

ns b

oth

at th

e Sl

oven

ian

Ente

rpris

e Fu

nd a

nd th

e M

GR

T.

Q 6

.1.

Yes

; M

inis

try o

f Eco

nom

ic D

evel

opm

ent a

nd T

echn

olog

y (M

GR

T): T

he B

SO in

the

cont

ext o

f its

aud

it w

ork

(sys

tem

ic a

udits

, aud

its o

f ope

ratio

ns)

also

revi

ews t

he S

tate

Aid

rule

s. A

t the

sam

e tim

e, th

e St

ate

Aid

sect

or is

impo

rtant

for I

B-M

GR

T, w

hich

pre

pare

s the

lega

l bas

es

204

(pro

gram

me)

for a

ppro

val o

f Sta

te A

id sc

hem

es. C

ompl

ianc

e w

ith th

e St

ate

Aid

rule

s is a

lso

subj

ect t

o ad

min

istra

tive

cont

rols

and

on-

the-

spot

ch

ecks

car

ried

out i

n th

e fr

amew

ork

of m

anag

emen

t ver

ifica

tions

at t

he IB

.

Q 6

.2.

No;

G

over

nmen

t Off

ice

for D

evel

opm

ent a

nd E

urop

ean

Coh

esio

n Po

licy

(SV

RK

): In

the

fram

ewor

k of

the

impl

emen

tatio

n of

the

cohe

sion

pol

icy,

th

e B

SO c

arrie

d ou

t a h

oriz

onta

l aud

it of

Sta

te A

id, i

n w

hich

no

maj

or sy

stem

ic ir

regu

larit

ies w

ere

foun

d. T

he B

SO re

com

men

datio

ns c

once

rn

in p

artic

ular

the

harm

onis

atio

n of

con

trol d

ocum

ents

and

the

inte

grity

of t

he re

porti

ng o

n SA

in th

e an

nual

repo

rts.

Q 6

.3.

Yes

; G

over

nmen

t Off

ice

for D

evel

opm

ent a

nd E

urop

ean

Coh

esio

n Po

licy

(SV

RK

): In

con

nect

ion

with

the

BSO

reco

mm

enda

tions

the

chec

klis

ts

have

bee

n up

date

d an

d th

e re

com

men

datio

n fo

r the

pre

para

tion

of th

e an

nual

repo

rts w

as ta

ken

into

acc

ount

. N

o;

Min

istry

of E

cono

mic

Dev

elop

men

t and

Tec

hnol

ogy

(MG

RT)

: The

MG

RT

will

not

take

any

pre

vent

ive

mea

sure

s, si

nce

no d

efic

ienc

ies w

ere

iden

tifie

d in

rela

tion

to th

e ru

les o

n St

ate

Aid

in 2

014.

We

will

con

tinue

to m

onito

r com

plia

nce

with

the

Stat

e A

id ru

les,

taki

ng in

to a

ccou

nt a

ll fin

ding

s fro

m p

revi

ous y

ears

.

Q 7

.1.

Gov

ernm

ent O

ffic

e fo

r Dev

elop

men

t and

Eur

opea

n C

ohes

ion

Polic

y (S

VR

K):

Flat

rate

s and

stan

dard

uni

t cos

ts.

Min

istry

of E

cono

mic

Dev

elop

men

t and

Tec

hnol

ogy

(MG

RT)

: The

MG

RT

will

take

into

acc

ount

the

poss

ibili

ty o

f sim

plifi

ed c

ost

optio

ns o

n th

e ba

sis o

f Reg

ulat

ion

EC 1

303/

2013

on

com

mon

pro

visi

ons a

nd th

e in

stru

ctio

ns o

f the

MA

. Fro

m th

e po

int o

f vie

w o

f fin

anci

al e

ngin

eerin

g in

stru

men

ts, t

his i

s a c

ase

of si

mpl

ified

mon

itorin

g of

cos

ts, s

ince

the

elig

ible

cos

t is p

aid

to th

e ho

ldin

g fu

nd

(whi

ch in

clud

es fu

nds f

or b

usin

esse

s and

man

agem

ent f

ee).

SP

AIN

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

205

CF:

Yes

Q 1

.2.

Add

ition

al in

dica

tors

hav

e be

en d

esig

ned

whe

re th

e in

dica

tors

pro

pose

d in

the

regu

latio

ns w

ere

not a

ppro

pria

te fo

r mea

surin

g th

e im

pact

of a

ctio

ns su

ppor

ted

by th

e Fu

nds.

ESF:

Ess

entia

lly w

e ar

e co

nsid

erin

g th

e in

dica

tors

set

out

in A

nnex

I a

nd A

nnex

II

to R

egul

atio

n 13

04/2

013.

How

ever

, spe

cial

in

dica

tors

for t

he p

artic

ular

Ope

ratio

nal P

rogr

amm

e an

d ac

tion

have

bee

n de

fined

in th

e pe

rfor

man

ce fr

amew

ork.

EMFF

: We

will

use

the

perf

orm

ance

indi

cato

rs p

rovi

ded

for i

n C

omm

issi

on D

eleg

ated

Reg

ulat

ion

(EU

) No

1014

/201

4

ERD

F: T

he c

omm

on i

ndic

ator

s (p

rodu

ctiv

ity o

r ou

tput

) ha

ve b

een

used

in

mos

t ca

ses,

whe

re t

his

is p

ossi

ble

base

d on

the

op

erat

ions

supp

orte

d. It

has

onl

y be

en n

eces

sary

to d

efin

e ad

ditio

nal o

utpu

t ind

icat

ors i

n ce

rtain

spec

ific

case

s.

The

ERD

F re

sults

indi

cato

rs h

ave

been

def

ined

in e

ach

prog

ram

me

for e

ach

spec

ific

inve

stm

ent p

riorit

y an

d ob

ject

ive

as th

ere

is no

com

mon

set

of

core

ind

icat

ors.

The

reas

on f

or t

his

is t

he C

omm

issi

on’s

req

uire

men

t th

at t

he 'r

esul

t in

dica

tors

' sho

uld

be

chan

ged,

i.e.

sho

uld

be 'm

oved

' whe

n ac

tions

are

impl

emen

ted.

Thi

s ha

s m

eant

that

the

defin

ed in

dica

tors

are

muc

h cl

oser

to th

e ac

tions

, but

at t

he s

ame

time

they

are

ver

y di

ffer

ent f

rom

one

ano

ther

and

can

not b

e dr

awn

from

off

icia

l sou

rces

but

are

pro

vide

d by

the

bodi

es im

plem

entin

g th

e ac

tions

.

Q 1

.3.

Yes

Q 2

.2.

No

Q 3

.5.

Som

etim

es th

e ch

eck

is n

ot su

ffic

ient

ly e

xhau

stiv

e an

d sh

ortc

omin

gs a

re d

etec

ted,

par

ticul

arly

rela

ting

to tr

ansp

aren

cy a

nd p

ublic

ity.

Q 3

.6.

Impr

ovem

ent o

f spe

cific

trai

ning

for i

nspe

ctor

s on

publ

ic p

rocu

rem

ent a

nd u

pdat

ing

of c

ontro

l pro

cedu

res.

Q 4

.1.

ESF:

The

re a

re tw

o ne

w p

roce

dure

s: 1

) ris

k an

alys

is fo

r eac

h op

erat

ion

that

will

est

ablis

h m

itiga

tion

cont

rols

for r

isk

and

frau

d al

erts

; 2)

chec

k-lis

ts to

acc

ompa

ny th

e fil

e us

ed a

s evi

denc

e w

hen

subm

ittin

g pr

ojec

ts o

r ope

ratio

ns fo

r cof

inan

cing

. ER

DF

and

the

Coh

esio

n Fu

nd: I

n Sp

ain,

a 'w

orki

ng d

ocum

ent o

n po

ssib

le c

riter

ia fo

r app

licat

ion

of th

e pr

ovis

ions

of A

rticl

e 98

of R

egul

atio

n (E

C) N

o 10

83/2

006

on e

xpen

ditu

re c

o-fin

ance

d by

ER

DF

and

the

Coh

esio

n Fu

nd' w

as a

vaila

ble

for t

he p

erio

d 20

07-2

013.

Thi

s doc

umen

t will

be

upd

ated

for t

he p

erio

d 20

14-2

020.

Q 5

.1.

Yes

; Im

prov

emen

ts to

the

mea

sure

s ha

ve b

een

impl

emen

ted

with

in th

e ac

tion

plan

s st

emm

ing

from

con

trol r

epor

ts id

entif

ying

pos

sibl

e de

ficie

ncie

s

206

from

the

Com

mis

sion

, th

e IG

AE

or t

he m

anag

ing

auth

ority

its

elf.

Impr

ovem

ents

hav

e be

en i

ncor

pora

ted

in p

roce

dure

s fo

r se

lect

ing

and

valid

atin

g re

imbu

rsem

ent s

tate

men

ts, i

mpr

ovin

g ch

eckl

ists

, rev

iew

ing

proc

urem

ent d

ocum

ents

for

var

ious

loca

l ent

ities

and

so

on.

Qua

lity

cont

rol o

f the

pro

cedu

res

has

also

bee

n st

eppe

d up

prio

r to

certi

ficat

ion,

dep

endi

ng o

n th

e ris

k of

eac

h op

erat

ion.

We

also

inte

nd to

cat

egor

ise

inte

rmed

iate

bod

ies

taki

ng in

to a

ccou

nt th

e re

sults

of t

he s

yste

m a

udits

and

the

oper

atio

n ch

ecks

. Thi

s ca

tego

risat

ion

will

cal

l for

gre

ater

car

e du

ring

verif

icat

ions

.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

Yes

; C

heck

lists

for o

pera

tions

, Ris

k as

sess

men

t mat

rix.

Q 7

.1.

ERD

F an

d th

e C

ohes

ion

Fund

: In

the

draf

t elig

ibili

ty o

rder

we

plan

to a

ccep

t the

sim

plifi

ed c

ost o

ptio

ns p

erm

itted

in th

e ge

nera

l R

egul

atio

n su

bjec

t to

any

limita

tions

req

uire

d to

mak

e th

em c

onsi

sten

t with

nat

iona

l leg

isla

tion

and

avoi

d in

corr

ect a

pplic

atio

n th

ereo

f.

SW

ED

EN

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

0; N

ot a

pplic

able

Q 1

.2.

ESF:

A c

ompl

emen

tary

per

form

ance

indi

cato

r has

bee

n ad

ded

to th

e Sw

edis

h So

cial

Fun

d pr

ogra

mm

e. In

add

ition

, the

man

agin

g au

thor

ity h

as d

evel

oped

indi

cato

rs to

be

able

to re

port

resu

lts fo

r the

pro

gram

me’

s tar

get g

roup

s and

the

horiz

onta

l crit

eria

.

ERD

F: I

n to

tal,

the

nine

pro

gram

mes

hav

e so

me

35 o

utpu

t in

dica

tors

, of

whi

ch j

ust

over

hal

f ar

e co

mm

on E

U i

ndic

ator

s. M

oreo

ver,

the

prog

ram

mes

hav

e so

me

thirt

y pe

rfor

man

ce in

dica

tors

that

are

link

ed to

inve

stm

ent p

riorit

ies

and

spec

ific

obje

ctiv

es

207

with

in th

e pr

ogra

mm

es. T

he in

dica

tors

are

set o

ut in

the

adop

ted

prog

ram

mes

.

Q 1

.3.

Yes

;

The

join

t fun

ds w

orki

ng g

roup

is c

urre

ntly

pre

parin

g th

e re

port.

Q 2

.2.

No;

For t

he E

RD

F, w

e co

nsid

er th

at th

e re

porti

ng fo

llow

s the

requ

irem

ents

of t

he re

gula

tions

. We

see

a va

lue

in g

uide

lines

and

dec

ide

our p

ositi

on

on th

em w

ith c

onsi

dera

tion

for

prop

ortio

nalit

y an

d ad

min

istra

tive

cost

s. H

owev

er, w

e ar

e co

ncer

ned

that

gui

delin

es h

ave

a te

nden

cy to

be

view

ed a

s bin

ding

, whi

ch c

an re

sult

in o

ver-

regu

latio

n an

d in

crea

sed

adm

inis

trativ

e co

sts.

Q 3

.7.

We

inte

nd to

follo

w u

p th

e Sw

edis

h ca

ses r

efer

red

to b

y th

e C

ourt

of A

udito

rs o

nce

we

rece

ive

the

audi

t rep

ort,

and

to p

ropo

se m

easu

res a

s re

quire

d.

Q 3

.8.

We

inte

nd to

follo

w u

p th

e Sw

edis

h ca

ses r

efer

red

to b

y th

e C

ourt

of A

udito

rs o

nce

we

rece

ive

the

audi

t rep

ort,

and

to p

ropo

se m

easu

res a

s re

quire

d.

Q 4

.1.

No

Q 5

.1.

Yes

; ES

F: A

risk

ass

essm

ent p

lan

has

been

dev

elop

ed in

ord

er to

iden

tify

any

risks

that

cou

ld le

ad to

fund

ing

bein

g pa

id o

ut in

corr

ectly

at a

n ea

rly

stag

e. S

uch

a pl

an is

dra

wn

up fo

r all

Soci

al F

und

proj

ects

bef

ore

a de

cisi

on is

take

n on

sup

port.

The

pay

men

t pro

cess

is m

ade

mor

e ef

ficie

nt

in th

at fo

cus

is p

lace

d on

exp

endi

ture

in w

hich

any

err

ors

coul

d ha

ve a

maj

or im

pact

, and

less

eff

ort i

s de

vote

d to

revi

ewin

g fo

rmal

ities

. On-

site

che

cks

will

be

carr

ied

out f

or a

ll So

cial

Fun

d pr

ojec

ts d

urin

g th

e cu

rren

t pro

gram

min

g pe

riod,

inst

ead

of u

sing

a m

odel

for

sta

tistic

al

sele

ctio

n as

bef

ore.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

No

Q 7

.1.

ERD

F: S

wed

en i

s on

e of

tw

o M

embe

r St

ates

to

have

a s

impl

ifica

tion

mod

el f

or E

SF l

aid

dow

n in

an

Ann

ex.

The

natio

nal

Ord

inan

ce t

hat

gove

rns

ERD

F/ES

F pr

ovid

es f

or t

he u

se o

f si

mpl

ified

cos

t op

tions

. In

add

ition

, th

e G

over

nmen

t ha

s gi

ven

a m

anda

te t

o th

e m

anag

ing

auth

oriti

es f

or t

he E

SI F

unds

to

activ

ely

seek

opp

ortu

nitie

s fo

r si

mpl

ifica

tion

for

proj

ect

owne

rs

thro

ugho

ut th

e pr

ogra

mm

ing

perio

d.

208

U

K

Q 1

.1.

EAFR

D: Y

es

EMFF

: Yes

ESF:

Yes

ERD

F: Y

es

CF:

0; U

K d

oes n

ot re

ceiv

e C

F.

Q 1

.2.

All

UK

Ope

ratio

nal P

rogr

amm

es h

ad e

lem

ents

whe

re th

e co

mm

on in

dica

tors

did

not

pro

vide

all

the

answ

ers.

The

UK

pro

gram

mes

ha

ve p

rogr

amm

e sp

ecifi

c in

dica

tors

and

thes

e ar

e de

taile

d in

the

appr

oved

ope

ratio

nal p

rogr

amm

e do

cum

ents

. For

exa

mpl

e, in

W

ales

the

Ope

ratio

nal P

rogr

amm

es c

onta

in p

rogr

amm

e sp

ecifi

c in

dica

tors

at i

nves

tmen

t prio

rity

leve

l.

Q 1

.3.

Yes

;

UK

pro

gram

mes

will

all

have

mea

ning

ful d

ata

on p

rogr

ess a

gain

st a

rang

e of

indi

cato

rs.

Q 2

.2.

UK

Man

agin

g A

utho

ritie

s ac

coun

t of

all

guid

ance

iss

ued

by t

he C

omm

issi

on. T

here

has

not

bee

n a

prob

lem

with

rep

ortin

g on

Fin

anci

al

Inst

rum

ents

.

Q 3

.1.

(UK

CB

) The

refe

renc

e to

the

UK

in th

is q

uest

ion

appe

ars t

o be

an

erro

r. W

e ar

e no

t aw

are

of a

ny o

bser

vatio

n m

ade

by th

e C

ourt

sugg

estin

g ar

tific

ially

cre

ated

con

ditio

ns in

the

UK

.

Q 3

.2.

(UK

CB

) The

refe

renc

e to

the

UK

in th

is q

uest

ion

appe

ars t

o be

an

erro

r. W

e ar

e no

t aw

are

of a

ny o

bser

vatio

n m

ade

by th

e C

ourt

sugg

estin

g ar

tific

ially

cre

ated

con

ditio

ns in

the

UK

.

Q 3

.3.

(UK

CB

) N/a

– th

e U

K b

enef

icia

ry re

fere

nced

hel

d a

cont

ract

und

er a

sche

me

desi

gned

in li

ne w

ith C

sion

bes

t pra

ctic

e on

con

trolla

bilit

y. T

he

caus

e of

err

or w

as c

ateg

oris

ed b

y th

e EC

A a

s the

faul

t of t

he b

enef

icia

ry a

nd n

ot th

e ad

min

istra

tion.

Q 3

.4.

In th

is c

ase

the

non-

com

plia

nce

was

iden

tifie

d vi

a a

reco

rd c

heck

and

was

subj

ect t

o th

e ap

prop

riate

sanc

tion.

The

farm

er w

as su

bjec

t to

a fo

llow

up

insp

ectio

n in

201

5 w

here

it w

as d

eter

min

ed h

e ha

d m

et h

is a

gri-e

nviro

nmen

tal c

omm

itmen

ts.

Q 4

.1.

The

natio

nal l

egis

latio

n is

the

Publ

ic C

ontra

ct R

egul

atio

ns 2

015,

whi

ch tr

ansp

oses

the

Publ

ic P

rocu

rem

ent D

irect

ive

2014

/24/

EU. U

K E

SIF

auth

oriti

es u

tilis

e th

e C

omm

issi

on G

uida

nce

on P

rocu

rem

ent E

rror

s in

deal

ing

with

bre

ache

s of t

he ru

les.

For e

xam

ple,

the

Scot

tish

Gov

ernm

ent u

se th

e ch

eckl

ist p

rovi

ded

by th

e Eu

rope

an C

omm

issi

on a

ugm

ente

d by

a sp

ecifi

c Sc

ottis

h se

ctio

n.

209

Q 5

.1.

Yes

; Th

e Sc

ottis

h G

over

nmen

t has

car

ried

out a

ser

ies

of p

re-v

isits

and

put

in p

lace

add

ition

al d

irect

eng

agem

ent w

ith s

enio

r m

anag

emen

t of

a nu

mbe

r of o

rgan

isat

ions

whi

ch h

as im

prov

ed th

eir u

nder

stan

ding

of w

hat i

s re

quire

d du

ring

a ve

rific

atio

n vi

sit a

nd h

as re

sulte

d in

the

qual

ity

of th

e da

ta a

vaila

ble

bein

g im

prov

ed.

The

Engl

and

ESF

MA

has

int

rodu

ced

a ra

nge

of i

mpr

ovem

ents

to

thei

r A

rticl

e 13

ver

ifica

tion

prog

ram

me

in r

espo

nse

to h

ighe

r th

an

acce

ptab

le e

rror

leve

ls th

at re

sulte

d in

the

inte

rrup

tion

of th

e pr

ogra

mm

e. T

he fo

llow

ing

mea

sure

s ha

ve b

een

intro

duce

d in

coo

pera

tion

with

th

e A

udit

Aut

horit

y:

• The

intro

duct

ion

of a

revi

sed

appr

oach

that

ens

ured

all

verif

icat

ions

wer

e co

mpl

eted

in a

lim

ited

timef

ram

e an

d be

fore

the

expe

nditu

re w

as

certi

fied

to th

e C

omm

issi

on.

• Inc

reas

ed th

e sa

mpl

e si

zes

at O

n –T

he- S

pot (

OTS

) vis

its a

nd a

dopt

ed a

mor

e ris

k-ba

sed

sele

ctio

n of

pro

vide

r vis

its a

nd p

artic

ipan

t file

s fo

r in

spec

tion.

• I

ntro

duce

d a

stan

dard

sam

plin

g ap

proa

ch a

nd st

reng

then

ed in

tern

al g

uida

nce

and

proc

edur

es a

cros

s the

Arti

cle1

3 op

erat

iona

l sub

-team

s.

In W

ales

, WEF

O’s

Man

agem

ent V

erifi

catio

n Te

am c

arrie

s ou

t a h

ealth

che

ck w

ith a

ll ap

plic

ants

, whi

ch in

clud

es g

ivin

g pr

e-ap

prov

al a

dvic

e on

pub

lic p

rocu

rem

ent.

And

for

the

cla

ims

proc

ess,

ever

y cl

aim

und

ergo

es a

ver

ifica

tion

chec

k w

hich

inc

lude

s a

com

plia

nce

chec

k on

pr

ocur

emen

t act

ivity

– th

is a

pplie

s to

all

cont

ract

s, w

heth

er a

bove

or b

elow

the

OJE

U th

resh

old.

Tho

se c

laim

s ar

e no

t inc

lude

d in

dra

wdo

wn

until

the

verif

icat

ion

chec

ks a

re c

ompl

ete

and

any

iden

tifie

d irr

egul

ar e

xpen

ditu

re h

as b

een

rem

oved

.

Q 6

.1.

Yes

Q 6

.2.

No

Q 6

.3.

No

Q 7

.1.

The

Scot

tish

Gov

ernm

ent i

s con

side

ring

the

use

of S

impl

ified

Cos

t Opt

ions

.

Dep

artm

ent f

or C

omm

uniti

es a

nd L

ocal

Gov

ernm

ent a

re u

sing

Sim

plifi

ed C

ost O

ptio

ns in

som

e 20

14-2

0 ER

DF

fund

ed p

roje

cts i

n En

glan

d.

In W

ales

all

optio

ns a

re m

ade

avai

labl

e to

ben

efic

iarie

s –

flat-r

ates

, un

it co

sts

and

lum

p su

ms.

In

addi

tion,

fla

t-rat

es f

or

reim

burs

ing

indi

rect

cos

ts a

re m

anda

tory

for

all

bene

ficia

ries.

We

are

wor

king

with

ben

efic

iarie

s to

put

in p

lace

uni

t cos

ts f

or

proj

ect s

taff

cos

ts (h

ourly

rate

s) a

s wel

l as a

ctiv

ity-b

ased

and

out

put-b

ased

uni

t cos

ts.

210

AN

NE

X II

I B Pa

rt B

. Ple

ase

ente

r any

gen

eral

com

men

ts y

ou h

ave

conc

erni

ng th

e 20

14 A

nnua

l rep

ort o

r ge

nera

l iss

ues

rela

ting

to th

e di

scha

rge

proc

edur

e.

Bel

gium

: Le

s rép

onse

s app

orté

es a

ux c

onst

atat

ions

pré

limin

aire

s du

chap

itre

6 (C

ohés

ion

écon

omiq

ue e

t soc

iale

) con

tenu

es à

l’an

nexe

II a

vaie

nt d

éjà

été

com

mun

iqué

s à la

Cou

r des

com

ptes

eur

opée

nne

par l

’Aut

orité

de

gest

ion

dans

son

cour

rier d

u 4

juin

201

5 (r

éfér

encé

SP

W/D

CFS

/DG

P/SB

M/D

BX

/CC

E-ju

in20

15).

ERD

F-V

L: F

lat r

ate

for i

ndire

ct c

osts

+ in

trodu

ctio

n of

stan

dard

hou

rly ra

te

ESF-

VL:

Idea

lly, i

n its

com

men

ts a

bout

Bel

gium

, the

EC

A sh

ould

take

acc

ount

of t

he re

spon

sibi

litie

s of t

he re

gion

s and

com

mun

ities

for t

he

vario

us fu

nds.

Thes

e sh

ould

ther

efor

e be

spec

ifica

lly m

entio

ned

in it

s rep

ort.

Cze

ch R

epub

lic

Nat

iona

l Coo

rdin

atin

g B

ody

Res

pons

e to

obs

erva

tions

3.7

1-3.

73, S

MA

RT

obje

ctiv

es

The

ECA

crit

icis

es th

e ge

nera

l dire

ctor

ate

for t

he in

cons

iste

nt u

se o

f SM

AR

T ob

ject

ives

, with

out c

onsi

derin

g th

e us

eful

ness

of t

his i

nstru

men

t. Th

ere

is n

o sc

ient

ific

proo

f tha

t SM

AR

T ob

ject

ives

hel

p or

gani

satio

ns to

incr

ease

thei

r eff

ectiv

enes

s, i.e

. the

reas

on w

hy th

ey e

xist

(Wau

ters

, 20

11).

Alth

ough

they

can

incr

ease

repo

rtabi

lity,

they

can

als

o di

min

ish

effe

ctiv

enes

s and

eff

icie

ncy.

Inst

ead

of c

once

ntra

ting

on fu

lfilli

ng th

eir

rais

on d

’être

, org

anis

atio

ns fo

cus o

n th

e re

porta

bilit

y of

qua

ntita

tive

targ

ets t

hat d

o no

t lea

d to

eff

ectiv

enes

s. In

oth

er w

ords

, ine

ffic

ienc

y st

ems

from

the

ener

gy th

at th

ey sp

end

on a

ctiv

ities

del

iver

ing

no u

tility

val

ue.

By

cont

rast

, the

se d

ays t

here

are

eno

rmou

s num

bers

of s

cien

tific

sour

ces i

ndic

atin

g th

e es

sent

ially

per

vers

e ef

fect

s of s

ettin

g qu

antit

ativ

e ta

rget

s at

an

orga

nisa

tion-

wid

e le

vel.

We

mig

ht n

ame,

at r

ando

m, R

adin

(200

6), D

e B

ruiin

(200

2), T

hiel

, Lee

uw (2

002)

, Joh

anss

on (2

015)

and

man

y ot

hers

. The

setti

ng o

f SM

AR

T ob

ject

ives

wor

ks o

n th

e as

sum

ptio

n th

at a

n ob

ject

ive’

s val

ues d

epen

d so

lely

on

the

orga

nisa

tion

bein

g m

easu

red

211

Part

B. P

leas

e en

ter a

ny g

ener

al c

omm

ents

you

hav

e co

ncer

ning

the

2014

Ann

ual r

epor

t or

gene

ral i

ssue

s re

latin

g to

the

disc

harg

e pr

oced

ure.

an

d th

at a

ll of

the

orga

nisa

tion’

s wor

kers

iden

tify

with

the

obje

ctiv

e. O

ther

than

that

, SM

AR

T ob

ject

ives

ant

icip

ate

that

the

orga

nisa

tion

is

capa

ble

of re

achi

ng th

e ob

ject

ive

in th

e fir

st p

lace

. Thi

s ign

ores

ent

irely

the

curr

ent k

now

ledg

e on

the

natu

re o

f the

env

ironm

ent i

n w

hich

pub

lic

orga

nisa

tions

find

them

selv

es –

a la

ndsc

ape

that

is m

ore

inte

rlink

ed a

nd m

ore

holis

tic th

an e

ver b

efor

e (J

ohan

sson

, 201

5). T

hat i

s to

say,

an

orga

nisa

tion

does

not

ach

ieve

resu

lts a

lone

, but

mus

t wor

k on

them

with

oth

er o

rgan

isat

ions

(and

not

just

pub

lic o

nes!

), an

d at

the

sam

e tim

e th

e ha

ndlin

g of

com

plex

pro

blem

s is n

ot se

lf-ev

iden

t; th

e pr

ecis

e im

pact

of t

he a

ctua

l act

iviti

es c

anno

t be

pred

icte

d in

adv

ance

. Hen

ce it

is

impo

ssib

le to

kno

w in

adv

ance

wha

t sor

t of t

arge

t val

ue o

f qua

ntifi

ed o

bjec

tives

the

orga

nisa

tion

is c

apab

le o

f ach

ievi

ng. T

his r

esul

ts in

the

afor

emen

tione

d bo

rder

line-

perv

erse

eff

ects

, suc

h as

gam

ing

and

crea

min

g. In

a n

utsh

ell,

repo

rtabi

lity

does

not

equ

ate

to u

tility

. Th

e di

scus

sion

abo

ve is

ver

y sk

etch

y an

d in

com

plet

e. If

the

obse

rvat

ions

that

hav

e be

en m

ade

are

to c

arry

any

wei

ght,

it is

nec

essa

ry to

gra

pple

w

ith th

e ar

gum

ents

set o

ut in

the

liter

atur

e be

low

: H

ans d

e B

ruijn

, (20

02) ‘

Perf

orm

ance

mea

sure

men

t in

the

publ

ic se

ctor

: stra

tegi

es to

cop

e w

ith th

e ris

ks o

f per

form

ance

mea

sure

men

t’,

Inte

rnat

iona

l Jou

rnal

of P

ublic

Sec

tor M

anag

emen

t, V

ol. 1

5 Is

s: 7

, pp.

578

-594

Th

iel,

S., L

eeuw

, F. (

2002

). Th

e Pe

rfor

man

ce P

arad

ox in

the

Publ

ic S

ecto

r. Pu

blic

Per

form

ance

& M

anag

emen

t Rev

iew

, Vol

. 25

No

3 R

adin

, B. (

2006

). C

halle

ngin

g Pe

rfor

man

ce M

ovem

ent:

Acc

ount

abili

ty, C

ompl

exity

, and

Dem

ocra

tic V

alue

s. G

eorg

etow

n U

nive

rsity

Pre

ss

Joha

nsso

n, V

. (20

15).

Whe

n w

e w

ill e

ver l

earn

? N

ISPA

cee.

Vol

. 8, p

p. 1

49-1

70

Wau

ters

, B.,

2013

, SM

AR

T or

not

: are

sim

ple

man

agem

ent r

ecip

es u

sefu

l to

impr

ove

perf

orm

ance

in c

ompl

ex w

orld

? A

crit

ical

refle

ctio

n ba

sed

on th

e ex

perie

nce

of F

lem

ish

ESF

Age

ncy,

CO

P R

BM

, ava

ilabl

e on

line

at h

ttp://

ww

w.c

oprb

m.e

u/?q

=nod

e/4

Den

mar

k A

vita

l asp

ect o

f sat

isfa

ctor

y im

plem

enta

tion

of th

e EU

bud

get i

s gen

erat

ing

resu

lts a

nd e

nsur

ing

that

thes

e re

sults

supp

ort t

he o

vera

rchi

ng

polit

ical

obj

ectiv

es. I

t is t

here

fore

impo

rtant

to D

enm

ark

that

focu

s rem

ains

on

esta

blis

hing

the

fram

ewor

k fo

r a re

sults

-orie

nted

syst

em w

ith

grea

ter f

ocus

on

the

resu

lts a

nd im

pact

of E

U p

roje

cts.

We

ther

efor

e ta

ke a

pos

itive

vie

w o

f the

ann

ual r

epor

t’s in

crea

sed

focu

s on

this

. D

enm

ark

is p

leas

ed th

at, f

or th

e ei

ghth

yea

r run

ning

, the

Cou

rt of

Aud

itors

was

abl

e to

giv

e a

posi

tive

opin

ion

on th

e re

liabi

lity

of th

e ac

coun

ts

and

thus

con

side

rs th

at th

e EU

’s a

ccou

nts g

ive

a fa

ir vi

ew o

f rev

enue

and

exp

endi

ture

and

of t

he E

U’s

fina

ncia

l pos

ition

. It i

s als

o sa

tisfy

ing

that

212

Part

B. P

leas

e en

ter a

ny g

ener

al c

omm

ents

you

hav

e co

ncer

ning

the

2014

Ann

ual r

epor

t or

gene

ral i

ssue

s re

latin

g to

the

disc

harg

e pr

oced

ure.

th

e C

ourt

of A

udito

rs g

ave

a po

sitiv

e op

inio

n of

the

lega

lity

and

regu

larit

y of

the

trans

actio

ns w

ith re

gard

to o

wn

reso

urce

s and

of t

he p

aym

ents

re

latin

g to

adm

inis

tratio

n.

How

ever

, Den

mar

k is

unh

appy

that

the

Cou

rt on

ce a

gain

had

to is

sue

a ne

gativ

e op

inio

n on

the

paym

ents

as a

who

le. D

espi

te th

e st

abili

satio

n of

th

e er

ror r

ate

in re

cent

yea

rs, a

lot o

f wor

k re

mai

ns to

be

done

to a

chie

ve a

n au

dit o

pini

on w

ith fe

wer

rese

rvat

ions

. D

enm

ark

take

s the

vie

w th

at b

oth

the

Com

mis

sion

and

the

Mem

ber S

tate

s bea

r res

pons

ibili

ty fo

r ens

urin

g sa

tisfa

ctor

y im

plem

enta

tion

of th

e bu

dget

and

em

phas

ises

the

impo

rtanc

e of

usi

ng a

ll av

aila

ble

inst

rum

ents

. We

wou

ld p

oint

out

that

it is

impo

rtant

that

the

Com

mis

sion

focu

ses i

ts

effo

rts o

n he

adin

gs a

nd M

embe

r Sta

tes w

here

err

or ra

tes a

re c

onsi

dera

bly

high

er th

an tw

o pe

r cen

t. In

this

con

nect

ion,

it sh

ould

als

o be

bor

ne in

m

ind

that

dem

ands

for e

ver g

reat

er c

ontro

l ent

ail h

eavi

er a

dmin

istra

tive

burd

ens.

It is

ther

efor

e al

so a

prio

rity

for t

he G

over

nmen

t to

focu

s on

the

reas

ons f

or th

e co

mpl

exity

and

to w

ork

tow

ards

sim

pler

rule

s tha

t will

ligh

ten

the

adm

inis

trativ

e lo

ad fo

r bot

h au

thor

ities

and

ben

efic

iarie

s. L

ithua

nia

With

in it

s rem

it, th

e M

inis

try o

f Fin

ance

has

no

com

men

ts a

nd q

uest

ions

con

cern

ing

the

2014

ann

ual r

epor

t of t

he C

ourt.

Po

land

Pola

nd is

ple

ased

to n

ote

a m

inor

redu

ctio

n in

the

erro

r rat

e co

ncer

ning

pay

men

ts fr

om th

e EU

bud

get (

4.4%

, as c

ompa

red

with

4.5

% in

201

3).

The

fact

that

a st

able

ove

rall

erro

r rat

e w

as m

aint

aine

d ev

en th

ough

the

2014

bud

get w

as th

e se

cond

larg

est e

ver,

with

sign

ifica

nt c

umul

atio

n of

co

hesi

on p

olic

y ex

pend

iture

from

the

2007

-13

prog

ram

min

g pe

riod,

giv

es c

ause

for s

atis

fact

ion.

H

owev

er, w

e no

te w

ith c

once

rn th

e si

gnifi

cant

incr

ease

in th

e er

ror r

ate

unde

r hea

ding

1a

- R&

D (f

rom

4%

to 5

.6%

) and

hea

ding

4 -

Exte

rnal

re

latio

ns (f

rom

2.1

% to

2.7

%),

whi

ch c

an o

nly

parti

ally

be

expl

aine

d by

the

incr

ease

in a

ppro

pria

tions

und

er th

ose

head

ings

. N

otw

ithst

andi

ng a

min

or in

crea

se in

the

erro

r rat

e in

the

cohe

sion

pol

icy

field

, the

tren

d in

regi

onal

exp

endi

ture

, whi

ch a

ccou

nts f

or 8

0% o

f ap

prop

riatio

ns u

nder

thos

e he

adin

gs, i

s pos

itive

(a si

gnifi

cant

redu

ctio

n).

In a

dditi

on, t

he a

nnua

l err

or ra

te c

alcu

late

d by

the

Cou

rt of

Aud

itors

shou

ld b

e se

en in

the

cont

ext o

f the

mul

tiann

ual c

hara

cter

of E

U

213

Part

B. P

leas

e en

ter a

ny g

ener

al c

omm

ents

you

hav

e co

ncer

ning

the

2014

Ann

ual r

epor

t or

gene

ral i

ssue

s re

latin

g to

the

disc

harg

e pr

oced

ure.

in

terv

entio

n (in

clud

ing

net f

inan

cial

cor

rect

ions

and

reco

vere

d am

ount

s).

The

corr

ectiv

e ac

tion

take

n by

the

Mem

ber S

tate

s and

the

Com

mis

sion

had

a m

ajor

impa

ct. A

ccor

ding

to th

e C

ourt

of A

udito

rs, i

f thi

s act

ion

had

not b

een

take

n on

the

trans

actio

n sa

mpl

e te

sted

by

the

Cou

rt, th

e ov

eral

l est

imat

ed e

rror

rate

wou

ld b

e 1.

1 pp

. hig

her (

1.6

pp. i

n 20

13),

whi

ch

trans

late

s int

o an

am

ount

of €

1.6

billi

on a

ppro

x.

We

wou

ld d

raw

par

ticul

ar a

ttent

ion

to th

e re

com

men

datio

n of

the

Cou

rt of

Aud

itors

that

the

Com

mis

sion

take

mea

sure

s to

redu

ce th

e ba

cklo

g of

ou

tsta

ndin

g co

mm

itmen

ts u

nder

coh

esio

n po

licy,

incl

udin

g fa

ster

clo

sure

of t

he 2

007-

13 p

rogr

amm

es. I

n so

me

Mem

ber S

tate

s (be

nefic

iarie

s of

cohe

sion

pol

icy)

, tot

al E

U fu

ndin

g ar

rear

s acc

ount

for a

sign

ifica

nt p

erce

ntag

e of

ann

ual p

ublic

exp

endi

ture

. W

e ag

ree

with

the

Cou

rt of

Aud

itors

on

the

need

to im

prov

e in

dica

tors

and

to in

trodu

ce u

nifo

rm, c

ompa

rabl

e be

nchm

arks

for a

ll EU

bud

get

expe

nditu

re (a

ll bu

dget

hea

ding

s man

aged

by

both

the

Mem

ber S

tate

s and

the

Com

mis

sion

). Sp

ain

Ther

e ar

e no

add

ition

al c

omm

ents

to th

ose

expr

esse

d in

this

repo

rt.