Financial Management of Rural Development Programmes. IT systems SFC 2007 and RDIS

Brussels, 3 October 2007

2

Financial Management of Rural Development Programmes.

IT systems SFC 2007 and RDIS

Four main items in this presentation

IT Communication. IT tools SFC2007 and RDIS

Financial programming of Rural development.

Financial management of RDP by the Commission

Reporting facilities delivered by RDIS-Fin

3

SFC 2007 the Commission / Member States official communication channel (1).

Binding IT communication. Legal basis in Regulations 1974/06 and 883/2006

The SFC2007 Member State Liaison

– Single contact point on users rights administration– Masterpiece of the system’s security. – Rresponsible of managing the users list – Several roles can be authorized (consultation, paying agency, managing authority, coordinating body)

4

SFC 2007 the Commission / Member States official communication channel (2)

Main functionality offered– Real time information

• Calculation simulations• Consultation /Searching / Single file

– Data consistency• Data are not re-encoded by the Commission• Member States are responsible for the data

– Standard format for data ex-change• Automatic error handling• No human intervention like for the flat-files

– Transparency

5

SFC 2007 the Commission / Member States official communication channel (3)

Two Interfaces are possible

– 1. Web-Application• Log-in. Screen and menu based interface. Manual data

entry

• Consultation of data. Signing payment claims etc. No developments required

– 2. Direct Interface through Web-Services• Interface with local administration system

• Automatic transfer of data

• Requires adaptation of local system

• Sending declaration of expenses in real time

6

RDIS, an internal DG AGRI IT application for management of RD Programmes

Three components

RDIS – Workflow: The IT tool developed for approval and monitoring of RD Programmes

RDIS-Fin: the back office for financial management of EARDF in DG AGRI.

– Interfaced with Member States and Commission accounting– Function of calculation and reporting of financial transactions.

RDIS-IDIM, the future AGRI IT tool for reception and processing of execution, output and impact indicators

7

Financial Plan of RD Programmes An essential tool for programme managers Financial programming simplification

– Single programme including all the 2007-2013 EU allocations

– Same co-financing rate for all measures in an axis– Possible mono and multiregion programmes

SFC2007 checks the respect of ceilings in co-financing rates and of minimum spending rates by axis

8

The Financial Plan (1/2)

Insert tables

9

The Financial Plan (2/2)

10

Budgetary aspects of the financial plan Calendar year and Financial year MS commitments and EU commitments Application of the « n+2 » rule.

– Expenditure until the end of year n+2 counts for– Slow decommitment risk for our RDP

Financial Year

Calendar Year

N+2 Period

16/1

0/06

31/1

2/06

16/1

0/07

16/1

0/08

16/1

0/09

31/1

2/07

31/1

2/08

31/1

2/09

31/0

1/07

31/0

1/08

31/0

1/09

31/0

7/07

31/0

7/08

31/0

7/09

11

Financial management by the Commission (1) operations following programme approval

• 1st annual commitment• 1st payment on account• Payment of Q4 2006 if received• First interim payment if received in time

Tough schedule for RDP approved late this year

12

Financial management by the Commission (2)Interim payments

Declaration of expenditure and payment claim

– Filing the electronic form in SFC2007 – Checks by SFC2007. Validation– Transmission by Coordination body.

Acknowledge of reception– Reception by RDIS-Fin – Acceptance by the financial officer and creation

of the invoice to be paid within 45 days.

13

Financial management by the Commission (2)Interim payments

Declaration of expenditure

14

Interim payments. Calculations by DG AGRI. RDIS-Fin calculation sheet

15

Interim payments. Calculations by DG AGRI(2).

Transitory reductions– Excess of the financial plan– Need of additional information– Deadline MS for answer

Reduction or suspension by Commission. Decision (Art. 27 of R. 1290/2005)

16

Reports offered by RDIS-Fin The annual financial report per programme

– Overview of financial implementation by year and by RD measure

– Expenditure and recoveries declared and paid by quarter during the year « n »

Aggregated reports (at EU and MS level)– Overview of financial implementation by RD

programme– Aggregated expenditure by RD measure and axis

17

Thank you for your attention !