Annual Implementation Report Structural Funds 2004-2006 23 rd May - PDF document

Planning and Priorities Co-ordination Division Office of the Prime Minister Monitoring Committee for Structural Funds 2004-2006 Annual Implementation Report Structural Funds 2004-2006 23 rd May 2008 Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Context of presentation: � Overview � Highlights � Conclusions

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 � Overview: •86 projects had been approved as at end of 2007: • 27 infrastructural projects • 48 human resource development projects • 9 projects which consist of 11 aid schemes targeting the: - manufacturing sector (3) - agricultural sector (2) - fisheries sector (5) - tourism sector (1) • 2 technical assistance projects Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 � Highlights 2007 • As at end of 2007 a total of 119 contracts were successfully awarded through the central system; •As at end of 2007 a total of 374 contracts signed with the final recipients of the 11 aid schemes; •In 2007 alone, payments certified to the European Commission amounted to €22,040,439 and reimbursements received in 2007 from the Commission amounted to €22,580,523;

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Highlights 2007 (cont) •235 Management Checks; •2 EC Audit Missions (1 ERDF & 1 ESF) •22.42% sample checks carried out by IAID as at end of 2007; •Ongoing Monitoring; •Publicity and Information; •Strengthening of Administrative Capacity. Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Aid Schemes As at end of 2007 the FBs managing the 11 aid schemes had committed funds to a total of 374 final recipients of which: •172 final recipients benefiting from 2 manufacturing aid schemes co- financed through ERDF; •51 final recipients benefiting from the tourism aid scheme co-financed through ERDF; •137 final recipients benefiting from the 2 agricultural aid schemes co- financed through EAGGF and; •14 final recipients benefiting from the 5 aid schemes co-financed through FIFG. •A new aid scheme was launched under the ERDF Measure in the 4 th quarter of 2007 with a total of 23 applications being submitted of which 19 were eligible.

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Aid Schemes (cont) � All 223 final recipients benefiting from 3 ERDF aid schemes had completed their respective project as at end of 2007. Final checks still ongoing. � All 137 final recipients benefiting from the 2 EAGGF aid schemes had completed their respective project as at end of 2007. � A total of 13 final recipients benefiting from the 5 FIFG aid schemes, had completed their respective project as at end of 2007. Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Payments � Payments executed by Treasury as at end of 2007 amounted to €58,246,093; � In 2007 alone, Treasury processed €27,910,406; � As at 30/04/2008, Treasury had processed €63,988,295.

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Payments (cont) FUND Payments Payments Payments executed executed in executed as at 2007 alone as at 31/12/2007 30/04/2008 ERDF 42,520,555 21,809,200 46,877,155 ESF 9,137,733 2,844,345 9,387,465 EAGGF 3,966,974 2,135,811 4,868,221 FIFG 2,620,830 1,121,046 2,855,453 Total 58,246,093 27,910,403 63,988,295 Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Request for Interim Payments � Five requests for Interim Payments where made in 2007; � Requests for reimbursements made by the Paying Authority to the European Commission in 2007 alone amounted to €22,040,439 (EU funds only). Fund No. of claims made Total amount per Fund claimed per Fund € ERDF 4 16,816,896.68 ESF 4 2,801,295.07 EAGGF 3 1,387,995 FIFG 2 1,034,252.26 Total 22,040,439.01

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Actual Payments vs. Forecasted Expenditure FUND Forecasted Forecasted Actual EU Total Eligible Total EU Eligible Funds Cost (2007) € Share (2007) € Reclaimed (2007) € ERDF 18,219,548.69 13,262,762.07 16,816,896.68 ESF 2,869,568.12 2,152,175.81 2,801,295.07 EAGGF 1,754,722.92 1,228,307 1,387,995 FIFG 1,143,948.57 933,785.38 1,034,252.26 Total 23,987,788.30 17,577,030.26 22,040,439.01 Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Financial Control � Management Checks 100% documentary checks were carried out at every verification in 2007 by the Managing Authority or its delegated Intermediate Bodies. On-the Spot Checks: - the MA undertook 25 checks on ERDF projects - the ESF IB undertook 52 checks on ESF projects & the MA undertook a further 26 checks; - the MA & IB for FIFG undertook 2 checks on FIFG projects. Documentary and on-the-spot checks are also undertaken by the PA.

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Financial Control - Management Checks (cont) In 2007 a number of on-site checks were carried out by FBs on FRs (recipients of aid under Article 87 of the Treaty) benefiting from the various aid schemes: - 84 ERDF (the MA accompanied the FBs on 53 of these 84 checks) - 44 EAGGF (the FB was accompanied by the MA on 6 checks and by the IB on 12 checks) - 3 FIFG (the IB undertook 9 checks on FRs) Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Audits � Article 10 Checks In accordance with Article 10 (b) of Commission Regulation (EC) 438/2001, six projects were audited by the IAID in 2007. The audits are undertaken on expenditure declared: - 3 ERDF projects - 1 ESF project - 1 EAGGF project - 1 FIFG project 22.42% of expenditure checked as a percentage of total expenditure declared as at end 2007.

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Audits Two EC control audit missions were undertaken in 2007. � EC Audits ESF Audit Mission One audit mission undertaken by DG Employment in two phases: Phase I took place between 2-4th May 2007 focusing on a desk review (at the MA) on the declared expenditure as at 10 th January 2007 for 12 projects (10 ESF & 2 EQUAL); Phase II took place between 18-22nd June 2007. The auditors undertook substantive testing of a sample of 10 projects (8 ESF & 2 EQUAL). Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 ESF Audit (Cont) The report with the main findings of the ESF audit was received by the Maltese Authorities on the 14 th December 2007. The auditors concluded that they received the necessary assurance that the management & control systems are functioning effectively and in compliance with EU regulations. The audit of the operations produced a 0% error rate.

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 � ERDF Audit Mission: One Audit Mission undertaken by DG Regio on 19-23 November and the scope of the audit was twofold: •to review a sample of projects to verify the effectiveness of the management and control systems examined during the systems audit carried out in October 2005 & to review expenditure declared to the European Commission to ensure eligibility of expenditure & compliance with Community regulations. •to review the work of IAID as the winding–up body; Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report ERDF Audit (Cont) A total of four projects were reviewed (3 ERDF & 1 Cohesion Fund). The expenditure declared for reimbursement to the European Commission as at 10th January 2007 was reviewed. The Maltese Authorities were awaiting submission of the audit mission report as at end of 2007. Report was received at the end of February 2008.

Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 � Monitoring •Monitoring Committee met 3 times in 2007 having two decisional meetings (May and October) and an informational meeting (February). •The 5 Sectoral Monitoring Sub-Committees held 9 meetings in 2007. •The Regional Project Committee for Gozo met once in 2007. •The MA organised 3 sets of formal bilateral meetings with the FB organisations, the line ministries and the horizontal stakeholders to ensure progress in implementation for projects which encountered difficulties. Planning and Priorities Co-ordination Division Office of the Prime Minister Annual Implementation Report 2007 Publicity Undertaken � Programme Level Continuation & completion of contract signed in 2006 for publicity of the whole SPD. The activities undertaken in 2007 under the SPD campaign were informative in nature in order to convey factual information about: • what has been achieved through the Structural Funds; • information on the projects and; • the ultimate benefits to the Maltese people.