european globalisation adjustment fund (egf) meeting of the contact persons of the european...

European Globalisation adjustment Fund (EGF)

Meeting of the Contact Meeting of the Contact Persons of the European Persons of the European Globalisation adjustment Globalisation adjustment

Fund (EGF)Fund (EGF)06 March 200806 March 2008

Hotel Bedford, BrusselsHotel Bedford, Brussels


Item 1

WelcomeAnd adoption of the Agenda


Reimbursement of travel expenses

The Commission will reimburse:

• First-class rail travel for journeys of less than 400 km (one way, according to official distance by rail)

• Economy class air travel for distances of more than 400 km.



The reimbursement will be made:

• For one participant per Member State

• Into the bank account specified on your Expert Identification Sheet, or if you have a ‘sticker’, the bank account specified in the Commission’s accounting system.



Participants must provide:– A completed Reimbursement Form

– A completed Expert Identification Sheet, if they do not have ‘stickers’

– Their ticket (to be photocopied)

The first two may be sent after the meeting, but within a very few days!



The meeting secretary will come around during the meeting to take the necessary forms, and your tickets.

She will return your tickets after photocopying them.

If you have only an electronic ticket, please provide a print-out, and the boarding pass that you received for the flight to Brussels.


Item 2

Presentation of applications received

to date


Specificities

of the cases

approved by

the Commission


EGF Applications received so far (€ 1,000)

1. France – Peugeot suppliers 2,5582. France – Renault suppliers 1,2583. Germany – BenQ 12,7664. Finland – Perlos 2,0285. Italy – textile sector, Sardinia 12,0396. Italy – textile sector, Piemonte 9,2877. Italy – textile sector, Lombardy 14,6618. Malta – textile sector 6819. Portugal – automobile sector 2,42610.Spain – Delphi 8,31811. Italy – textile sector, Tuscany 12,631


Applications: by EGF amount requested

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

EG

F/2

007/0

07

EG

F/2

007/0

03

EG

F/2

008/0

02

EG

F/2

007/0

05

EG

F/2

007/0

06

EG

F/2

008/0

01

EG

F/2

007/0

01

EG

F/2

007/0

10

EG

F/2

007/0

04

EG

F/2

007/0

02

EG

F/2

007/0

08


Applications: by workers targetted for assistance

0

500

1.000

1.500

2.000

2.500

3.000

3.500

EG

F/2

007/0

03

EG

F/2

007/0

07

EG

F/2

008/0

02

EG

F/2

008/0

01

EG

F/2

007/0

10

EG

F/2

007/0

06

EG

F/2

007/0

05

EG

F/2

007/0

04

EG

F/2

007/0

08

EG

F/2

007/0

02

EG

F/2

007/0

01


Applications: by amount of EGF contribution requested per worker

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

EG

F/2

007/0

05

EG

F/2

007/0

01

EG

F/2

007/0

07

EG

F/2

008/0

02

EG

F/2

007/0

06

EG

F/2

008/0

01

EG

F/2

007/0

03

EG

F/2

007/0

04

EG

F/2

007/0

02

EG

F/2

007/0

10

EG

F/2

007/0

08


Analysis of the lessons learnt from the cases

approved by the Commission


EGF Interventions in 2007

Training allowances/Job search allowances - € 13.477.888

Labour market (re-)training - € 2.715.632

Employment incentives - € 1.146.050

Technical Assistance - € 639.500

Start-up incentives - € 326.475

Job-search assistance - € 306.573


More detailed information needed on measures National and EU measures already available

Complementarity of the EGF measures with these

Description of each measure and the need for it

Explanation if necessary, why this is an active labour market policy measure

Costing of the measure per person

Estimate of the number of persons to benefit, and the likely duration per person on average

If a measure is particularly expensive, explanation why this is so and why the measure is useful


Recruitment subsidies Paid to workers who manage to be recruited for a contract

of indefinite duration

Paid to employers who recruit EGF supported workers for a contract of indefinite duration

Reflections … if the contract is ended prematurely, after the end of the

EGF implementation period…

… reimbursement of EGF funding to the Member State?


Service vouchers e.g. for childcare, for food and travel

aim to facilitate participation of redundant workers in active labour market policy measures, such as training, job search, guidance etc.

Reflections

Are they active labour market policy measures?

Need to show that they are an integral part of an active measure

(In the case of childcare, how did the worker solve the problem before becoming redundant?)


Private co-financing Not excluded by the EGF Regulation

Would need to be included as an integral part of the MS contribution

No requests including private co-financing as part of the MS contribution have been received so far

Reflections Reimbursement goes to MS account

MS needs to satisfy the Commission that the private co-funder would receive the same proportion back as originally contributed

Private co-funding would be audited in the same way as public co-funding


MS expenditure

30

70

EGF reimbursement to MS must be split in the same proportion

15

35

Example of EGF with public / private co-financing


Update of the 'Frequently Asked

Questions' (FAQ)


New items in the FAQ :

Delocalisation to another Member State

Workers made redundant before the reference period

Possibility of including private co-financing

Informal consultation between Commission and Member State in advance of a formal application

Timeline for an application

Member State contribution to evaluation


Timelines for EGF applications (average for the 4 or 6

cases) :

End of reference period complete application

Complete application Commission approval

Commission approval Budgetary Authority approval

Budgetary Authority approval payment

Total

70

86

69

35

260

Days


Item 3

Preparation of an application to the

EGF (presentation by Lithuania)


Item 4

Implementation of an EGF contribution

(Two presentations by Germany)


Item 5

Minimum Audit and Control

Requirements for the EGF


Audit of the European Globalisation Adjustment Fund

Bedford HotelMarch 6, 2008

Brussels

Vincent WIDDERSHOVEN – Head of Unit I2Tereza MARKOVA – External Auditor, Unit I2


On-the-spot checks strategy:Legal basis (1)

• Article 18 of Regulation (EC) No 1927/2006– Management and financial control

• Article 19 of Regulation (EC) No 1927/2006– Reimbursement of financial contribution


On-the-spot checks strategy:Types of spot checks (2)

• System checks– Identify weaknesses in management and control systems– Assess adequacy of internal controls– Verify that the financed actions have been properly carried out

• Financial checks – verify whether:– Financial contribution from the EC was used exclusively for the

purposes described in the application– Expenditure declared was incurred during the period of eligibility– Expenditure declared is based on verifiable supporting documents, is

correct and regular– The submitted documents on the execution of the financial contribution

are accurate, complete and provide reliable financial and other information on the activities implemented


On-the-spot checks strategy:Announcement phase (3)

• Announcement of the check – 1st step– Mission announcement – Annex to complete: List of authorities

• Management and financial control (name, address, city, function)• Implementation of eligible actions (name, address, city, type of

action provided, action already initiated – yes/no, estimated number of workers targeted)

• Detailed agenda – 2nd step– Detailed programme of the visits (indicative dates and selected bodies)– If applicable, documents to be prepared for the purposes of the check

• Duration of the spot check– one week foreseen– Availability of a representative of the MA to facilitate the organisation of

the check• Interpretation

– Ensured via Commission services


On-the-spot checks strategy:Provisional content of the system check (4/1)

• Application criteria – a trigger for the EGF– Compliance with criteria laid down in Art. 2– Verification of notices to redundant workers

• Internal controls – effectiveness (Art. 22 (a) of IR)– Segregation of tasks, authorization– Control strategy, including controls at the beneficiary level– Adequate audit trails and data integrity in data systems– Procedures for monitoring of performance– Follow up of identified internal control weaknesses– Assessment of the sound functioning of the control system– Controls regarding prevention, detection and correction of irregularities

• Audit trail of eligible actions down to the lowest possible level– Initiation/tendering (public procurement)/execution/recording– payments/monitoring/disclosure


On-the-spot checks strategy:Provisional content of the system check (4/2)

• Documentation

– Existence of verifiable supporting documents and completeness of documentation

– Impact on eligibility of actions and eligibility of expenditure

• Complementarity

– Actions do not receive assistance from other Community financial instruments

– EGF actions do not replace actions, which are the responsibility of companies by virtue of national law or collective agreements

• Compliance with laws and regulations

– Requirements on information and publicity

– Principle of non-discrimination


On-the-spot checks strategy:Provisional content of the financial check (5/1)• Eligibility of expenditure declared

– Expenditure is based on verifiable supporting documents– Expenditure incurred during the period of eligibility– Expenditure is correct and regular– Statement justifying expenditure is accurate and complete– Reconciliation of bookkeeping with the statement justifying expenditure

• Audit trail down to the lowest possible level – reconciliation of expenditure– The authorities’ accounting records correspond to supporting documents

• Audit trail down to the lowest possible level – financed actions properly carried out– Reconciliation between financed actions and corresponding expenditure


On-the-spot checks strategy:Provisional content of the financial check (5/2)

• Underlying controls

– Legality and regularity of financial transactions

– Accounting procedures/control mechanisms

– Detection of irregularities/corrective measures


On-the-spot checks strategy:Execution phase – on-the-spot (6)

• Duration: one week foreseen• Bodies to visit: MA, PA, AA, IB, selected implementing bodies• Access to documents:

– Detail description of the management and control system (workflows/tasks/interactions between bodies/functions vested etc.)

– Guidelines/manuals issued for bodies involved in EGF implementation– Workflow of activities (walkthroughs/sample checks)– Extracts from relevant national legislation, collective agreements– Lists of redundant workers/notices– Lists of companies providing personalized services– Documents regarding tendering/procurement of services– Supporting documents for estimated costs/real costs incurred– Documents from internal/external audit bodies

• Wrap-up meeting– Presentation of preliminary and provisional findings


On-the-spot checks strategy:Reporting phase (7)

• Preparation of a draft report

– summarizes findings and prioritized recommendations

– submitted to unit B4 for comments

• Contradictory procedure

– deadline to be determined

– deadline specified in the accompanying letter to the draft report

• Preparation of the final report

– inclusion of the comments from the auditee received within the contradictory procedure

– if applicable, the reply by the EC


Adaptation of the application form:

In order to simplify the job of completing an application, and to speed up the analysis of applications, the Commission has designed a table that Member States should complete, identifying the key responsibilities in the audit and control system.

European Globalisation adjustment Fund (EGF)Proposed Management and Financial Control Checklist

Policy making - Guidance -

Management functions

Application-related tasks

Implementation of eligible actions

Expenses - Payment

procedures - Financial

procedures

Data gathering - Data availability -

IT systems

Control activities Audit (independent

appraisal)

Final report-related tasks

Other Management &

Control Activities

Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9

National level □Regional level □Local level □Yes □No □





Is the authority already designated in respect of ESF?

Managing Body

Location: __________________ (city, region, address)

Level at which the authority operates:

Name of the Authority : _______

Name of the Authority : _______

Paying BodyName of the Authority : _______Location: __________________ (city, region, address)



Name of the Authority : _______Location: __________________ (city, region, address)



Intermediate Body (if any)Name of the Authority : _______Location: __________________ (city, region, address)



Other – please specify

Location: __________________ (city, region, address)



Audit Body


Under each group of functions a list of activities should be shown. For example:

Group 1

Dissemination of information on funded activities

Definition and operation of rules to the access to the aids

Coordination of management functions

Preparation of manuals/guidelines for implementation of actions (including allocation of tasks and duties)


Item 6

Corrigendum of the EGF Regulation


Legal-linguistic revision of Reg. 1927/2006

No difference in substance or in Reg. number

Official Journal L48, 22.02.2008, page 82

Article 2(c) maintained

Regulation applies from 1 January 2007

New errors in Art 2(c) and Art 9.2 notified

This revision will not affect any applications already submitted

For new applications, please use the corrected text of the Regulation


Item 7

Annual Report on the EGF in 2007 –

overview of Commission plans


Requirements of EGF Regulation (Art. 16):

• By 1 July of each year, and for the first time in 2008• Presented to the European Parliament and to the Council• Quantitative and qualitative report on the activities of the EGF in

the previous year• Focusing mainly on the results achieved by the EGF • Containing information on:

– applications submitted– decisions adopted– actions funded, including their complementarity with actions funded by

the Structural Funds, notably the ESF– the winding-up of financial contribution made

• Documenting the requests that have been refused owing to a lack of sufficient appropriations or to non-eligibility


The Commission proposes an Annual Report covering:

• Overview of the Fund in 2007• Applications received in 2007• Profile of the workers benefiting from EGF assistance• Actions funded• Results achieved• Technical Assistance activities undertaken by the

Commission• Financial report• Winding up of financial contributions made (from 2009)• Policy Considerations


The Annual Report will be:

• Factual – it is not the Commission’s intention to use the report as a publicity tool

• Short – it will contain the information required by the EGF Regulation in a concise format

• Presented to the European Parliament and to the Council by 1 July 2008

• Transmitted to the Economic and Social Committee, the Committee of the Regions, and the Social partners, for information


Policy Considerations:In addition to the requirements of the EGF Regulation, the Commission may use the Annual Report to introduce a number of Policy Considerations to the Parliament and the Council.


Should the EGF continue to target only trade related redundancies?

Should the definition include intra-EU delocalisations?

How can the timing / unpredictability issues be addressed?

Should and could eligibility be broadened to include investment?


Issues that may be raised :

Definition of a redundancy

Reasoned explanation about the level of budgeted costs

Use of the EGF contribution (deadline)

Technical assistance at the initiative of the Commission

Inclusion of redundancies occurring before or after the reference period

Private co-financing


Item 8

Communications and the EGF

website


EGF Communication Activities

1. Social Agenda – EGF Special Feature

2. EGF Video

3. EGF Website – development and utilisation


Social Agenda Magazine• DG EMPL’s quarterly

periodical• Circulation of 46,000• Global• Available online• January Issue has

EGF ‘special’, including:


Social Agenda Magazine (2)

Specific EGF content: Editorial by Nikolaus Van der Pas, Director

General, DG EMPL The EGF, one year on Timeline of an application Anatomy of an application/applications so far ‘Mini-feature’ on German EGF case Interview with Reimer Böge, Chairperson of

European Parliament’s Budget Committee


EGF Video (1)

“Facing up to a globalised world – the EGF”

• Disseminated to 1,000 journalists /TV programmes in EU-27 and beyond

• Subsequent targeted dissemination (“sell in”)• Customised web page (in EN & FR)

And the results?


EGF Video (2)

Requests 38 TV requests from22 countriesplus CNBC Europe and Euronews

Broadcasts 11 confirmed broadcasts from8 countries

Re-broadcasts 12 confirmed re-broadcasts

Est. audience 2,010,000 viewers (minimum)


EGF Website (1)

EGF Website over 5,000 hits (Nov 2007-Jan 2008)

Most popular – ‘docs’(1,300 hits) Contact persons information Application guidance Information on applications (as they progress) EGF leaflet (most popular after EN, DE, FR is

Romanian)


EGF Website (2)

Holds up-to-date information about applications ‘Member State Voices’ Library – we want your information / recommendations

for our library Always welcome recommendations for content on the

EGF site so email us at: [email protected] directly to the Communications Officer:

[email protected]


Item 9

Any Other Business