Management and Control System
MANAGEMENT AND CONTROL SYSTEM
FOR THE IMPLEMENTATION OF
THE FINANCIAL MECHANISM OF THE EUROPEAN ECONOMIC AREA
AND
THE NORWEGIAN FINANCIAL MECHANISM
(2009 – 2014) FOR BULGARIA
List of abbreviations
AA / Audit AuthorityAEUFEA/the Agency / Audit of EU Funds Executive Agency
ATCFOPD / Audits of Territorial Cooperation Funds and Other Programmes Directorate
CA / Certifying Authority
CC / Cooperation Committee
CoM / Council of Ministers
DPP / Donor Partnership Programmes
EEA / European Economic Area
EEA FM
NFM / European Economic Area Financial Mechanism
Norwegian Financial Mechanism
EFTA / European Free Trade Association
EU / European Union
FMC / Financial Mechanism Committee
FMO / Financial Mechanism Office
CCU / Central Coordination Unit
MF / Ministry of Finance
MoU / Memoranda of Understanding
NFD / National Fund Directorate
NFP / National Focal Point
NMFA / Norwegian Ministry of Foreign Affairs
BCPFI / Bilateral cooperation Programmes and Financial Instruments
PO / Programme Operator
PPL
MC / Public Procurement Law
Monitoring Committee
StC / Steering Committee
VAT / Value Added Tax
CONTENT
1. OBJECTIVES, LEGAL FRAMEWORK AND PRIORITY AREAS
1.1 Objectives
1.2 Legal Framework
1.3. Programme areas
2. INSTITUTIONAL FRAMEWORK
2.1. Institutional framework at the level of the Donor states.
2.2. Institutional framework for management of the EEA FM and the NFM at national level
2.2.1 National Focal Point
2.2.2 Certifying Authority
2.2.3. Audit Authority
2.2.4. Monitoring Committee
2.2.5 Programme Operators
2.2.6 Cooperation Committees
2.2.7. Steering Committees (optional)
3. IMPLEMENTATION OF THE PROGRAMMES UNDER THE EEA FM AND THE NFM
3.1. Programme Agreement and Programme Implementation Agreement
4. TECHNICAL AND FINANCIAL IMPLEMENTATION OF PROGRAMMES
4.1. Management and Control Systems at programme level
4.2 Certification of expenditure the European Economic Area Financial Mechanism 2009-2014 and the Norwegian Financial Mechanism 2009-2014
4.3. Cash flow process
4.4. Accounting
5. MODIFICATION OF PROGRAMMES
6. MONITORING OF AND REPORTING ON THE IMPLEMENTATION OF PROGRAMMES
6.1. Monitoring at project level
6.2. Monitoring and reporting at programme level
6.3 On-the-spot monitoring of the NFP
6.4 External monitoring
7. REPORTING
7.1 Reporting obligations of the PO
7.2 Reporting obligations of NFP
8. EVALUATION
9. AUDIT TRAIL
10. IRREGULARITIES
10.1. Irregularities – main principles
10.2. Reporting of irregularities
11. INFORMATION AND PUBLICITY
12. AUDIT
12.1. Description of procedures for monitoring the implementation of recommendations and corrective measures resulting from audit reports
12.2. Description of the procedures (where appropriate) for the supervision of the work of other audit bodies under the responsibility of the Audit Authority
12.3. Annual audit report and closure declaration
1. OBJECTIVES, LEGAL FRAMEWORK AND PRIORITY AREAS
1.1. Objectives
The overall objectives of the EEA FM and the NFM 2009-2014 are to contribute to the reduction of economic and social disparities in the European Economic Area and to the strengthening of bilateral relations between the Donor States and Bulgaria through financial contribution available in the following priority sectors:
- Environmental protection and management;
- Climate change and renewable energy;
- Civil society;
- Human and social development;
- Protecting cultural heritage;
- Green industry innovation;
- Research and scholarship;
- Justice and Home Affairs;
- Promotion of decent work and tripartide dialogue.
1.2 Legal Framework
This Management and Control System for the implementation of the EEA and Norwegian Financial Mechanisms 2009-2014 for Bulgaria shall be read with conjunction with the following documents which constitutes the legal framework of the EEA and Norwegian Financial Mechanisms 2009-2014:
- the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009 – 2014 and Protocol 38b to the EEA Agreement on the EEA Financial Mechanism (2009 - 2014);
- The Regulation on the implementation of the Norwegian Financial Mechanism 2009 – 2014 and the Regulation on the implementation of the EEA Financial Mechanism 2009 – 2014;
- The Memorandum of Understanding on the implementation of the Norwegian Financial Mechanism 2009 – 2014 and the Memorandum of Understanding on the implementation of the EEA Financial Mechanism 2009 – 2014;
- Any regulations adopted by the Donors in accordance with the Regulations.
1.3. Programme areas
In accordance with Article 2.1 of the Regulation the Donor states and Bulgaria have agreed the following programme areas to be financed under the EEA FM and NFM 2009-2014:
EEA Financial Mechanism 2009 – 2014
Ø Integrated Marine and Inland Water Management;
Ø Biodiversity and Ecosystem Services;
Ø Energy Efficiency and Renewable Energy;
Ø Funds for NGOs;
Ø Children and Youth at Risk;
Ø Public Health Initiatives;
Ø Conservation and Revitalisation of Cultural and Natural Heritage;
Ø Scholarships.
Norwegian Financial Mechanisms 2009-2014:
Ø Green Innovation;
Ø Global fund for decent work and tripartite dialogue;
Ø Capacity Building and Institutional Cooperation;
Ø Public Health Initiatives;
Ø Domestic and Gender-based violence;
Ø Schengen Cooperation and Combating Cross-border and Organised Crime, incl. Trafficking and Itinerant Criminal Groups;
Ø Judicial Capacity building and Cooperation/Improvement of the efficiency of justice;
Ø Correctional Services including Non-custodial Sanctions;
In accordance with the signed Memorandums of Understanding Bulgaria receives grant support at the total amount of € 126.6 million (€ 78.6 million under the EEA FM and € 48.0 million under the Norwegian Financial Mechanism 2009 – 2014). The net amount of the allocation made available to Bulgaria under the EEA FM 2009 – 2014 is € 72.705.000 over the period running from 1 May 2009 to 30 April 2014 inclusive. The net amount of the allocation made available to Bulgaria under the NFM 2009 – 2014 is € 44.400.000 over the period running from 1 May 2009 to 30 April 2014 inclusive.
2. INSTITUTIONAL FRAMEWORK
The institutional framework for the management, implementation, monitoring and control of the implementation of the EEA FM and NFM was set up in compliance with the provisions of the Regulations on the Implementation of the EEA FM and the NFM (2009 – 2014), Chapter 4 and with the provisions of Annex A to the Memorandums of Understanding concerning the Implementation of the EEA FM and the NFM (2009-2014) signed between Bulgaria and the Donor states.
2.1. Institutional framework at the level of the Donor states.
· EEA Financial Mechanism Committee (FMC) and
· The Norwegian Ministry of Foreign Affairs
The decision-making authority for the EEA Grants is the Financial Mechanism Committee (FMC). The FMC is established by the Standing Committee of the EFTA States and consists of representatives of the ministries of foreign affairs of Iceland, Liechtenstein and Norway. The Norwegian Ministry of Foreign Affairs is the decision-making authority for the Norway Grants.
· Financial Mechanism Office
The Financial Mechanism Office assists the FMC and the NMFA in managing the EEA FM and the NFM 2009-2014.
The FMO, which is administratively a part of the European Free Trade Association (EFTA), is responsible for the day- to-day implementation on behalf of the FMC and NMFA and serve as a contact point.
2.2. Institutional framework for management of the EEA FM and the NFM at national level
National management and Control Structures under the EEA FM and NFM 2009-2014 are regulated in the Art. 4.2 of the Regulations as well as in the Annexes A of the Memorandums of Understanding on the Implementation of the EEA FM and NFM 2009 – 2014.
The functions and responsibilities of the designated entities, the allocation of functions within each entity as well as the mechanisms and procedures for their interaction are described in detail below:
2.2.1 National Focal Point
Central Coordination Unit Directorate ” within the Administration of the Council of Ministers acts as the National Focal Point under the EEA FM and NFM 2009-2014. Director of CCU performs the functions of the Head of the National Focal Point.
The majority of the tasks of the National Focal Point will be concentrated in the “Bilateral Cooperation Programmes and Financial Instruments” (BCPFI) Department while programming and communication will be performed by other departments within the CCU Directorate, such as “Strategic planning and programming” and “Information and Communication” in close coordination with the BCPFI.
The National Focal Point has the overall responsibility for reaching the objectives of the EEA FM and NFM as well as for the implementation of the financial mechanisms in the Republic of Bulgaria.
The NFP represents Bulgaria in its relations with the FMC/NMFA regarding the implementation of the EEA FM and NFM (2009 – 2014) and bears the full responsibility for:
- Implementation of the Memorandums of Understanding;
- the management, control and coordination of the EEA FM and the NFM in Bulgaria;
- reaching the objectives of the EEA FM and the NFM;
The role, functions and responsibilities of the NFP encompass the following:
1. Ensures overall management and coordination of the process of programming, monitoring and reporting of the implementation of the programmes specified in Annexes B to the MoUs;
2. Ensures that the necessary mechanism, systems and measures are in place to allow for the highest degree of transparency, accountability and cost efficiency, as well as the principles of good governance, sustainable development, gender equality and equal opportunities;
3. Provides methodological guidance to the Programme Operators on the development and implementation of the programmes financed under the EEA FM and the NFM;
4. Prepares and disseminates to the PO guidance and information on horizontal issues, incl. on the implementation of horizontal policies relevant to the programmes;
5. Participates in the programming process under the separate programme areas as:
Ø participates in working meetings and events dedicated to programme preparation;
Ø provides expert opinion (incl. after a consultation with the FMO, where necessary) with regard to compliance with the Regulations, MoUs and other strategic documents, relevant to the programmes;
Ø observes that all requirements of the FMO and the donor states are duly met by the POs;
Ø promotes active partnership between PO and designated DPPs incl. through the use of the bilateral funds;
Ø approves and signs the agreed Programme Proposals after their signature by the PO and the DPP (where applicable);
Ø Formally submits the Programme Proposals through DORIS to the FMO;
Ø Coordinates the process of revision of the programme proposals and provision of additional information at the request of the FMO until final programmes’ approval by the FMC/NMFA;
6. Concludes a Programme Agreement (Annex 10 to the Regulations) with the FMC/NMFA for each approved programme setting out the terms and conditions of the operation of the programme as well as the roles and responsibilities of the parties;
7. Prepares and submits for approval to the FMC/NMFA a draft Programme Implementation Agreement based on the above said Programme Agreement and the MoU;
8. Concludes a Programme Implementation Agreement, following its approval by the FMC/NMFA, for each approved programme with the PO, setting out the terms and conditions of the operation of the programme, the roles and responsibilities of the parties, incl. any obligations valid after the programme has been completed.
9. Performs regular monitoring of the programmes’ implementation with regard to:
Ø compliance with the provisions of the Regulations;
Ø progress towards the programmes’ objectives and outcomes according to agreed indicators and financial requirements specified for the programmes;
Ø identification of significant deficiencies/deviations and problems in the implementation of the programmes and undertaking of corrective actions (necessary and compatible with the Regulations) from the competence/at the level of the NFP; (incl. justified programme modifications;
Ø actions necessary and compatible with the Regulation, including verifies the quality and content of any documents provided to the FMC/NMFA by the PO through the NFP and requests the necessary modification to such documents.
10. Establishes and chairs the Monitoring Committee for the EEA FM and the NFM and guides its work;
11. Reviews the annual reports of the Programme Operators to ensure that programmes are being implemented in accordance with the plans developed at the outset and that progress is made towards achievement of expected programmes’ outcomes and objectives.
12. Organises the Annual meetings (as per art. 2.3 of the regulations) between the FMC/NMFA and the NFP;
13. Prepares Strategic Report on the implementation of the EEA FM and the NFM in compliance with Art. 2.2 of the Regulations and an updated report for the Annual meeting;
14. Manages the TA and Bilateral Fund at National level, prepares and submits to the FMO for approval a Work Plan and Implementation System for the operation of the BF;
15. Prepares and submits irregularity reports and reports on follow-up with regard to reported irregularities;
16. Secures the overall coordination and interaction of the EEA FM and NFM with the EU Structural funds and other donor programmes, in cooperation with competent national bodies;
17. Ensures compliance with the Information and Publicity requirements in Annex 4 to the Regulations. (through its own information and publicity activities as well as by promoting fulfillment of the information and publicity obligations by the Programme Operators.)
Structure of the NFP. Distribution of tasks and responsibilities
Head of the NFP
- Manages, coordinates and controls the activity of the NFP;
- Signs the Programme Agreements with the FMC/NMFA and the Programme implementation Agreements with the Programme Operators;
- Signs the grant agreements with the Project Promoters under the Bilateral Fund at national level;
- Signs the Strategic Report prepared by the NFP for the Annual meeting;
- Signs official correspondence addressed to the FMC/NMFA, FMO, the Programme Operators and other relevant institutions in Bulgaria and in the Donor States;
- Chairs the Monitoring Committee.
“Bilateral Cooperation Programmes and Financial Instruments” Department coordinates the National Focal Point functions and performs the majority of tasks of the National Focal Point.
The BCPFI Department consists of one Head of Department and 9 experts, 5 of which are directly involved in the implementation of the functions of the NFP. The functions and responsibilities of the BCPFI Department encompass the day-to-day activities related to the implementation of the FMs and support to the Head of the NFP.
For that purpose the following internal organization and distribution of responsibilities has been established: