Business Process and Simplification

Report
ESIF 2014-20
Business Process and Simplification
Nic Suggit
Department of Communities and Local Government
24 April 2014
European Structural and Investment Fund
Growth Fund Alignment
• ERDF
• ESF
• Parts of EAFRD
All teams working together to create a system that is aligned across the funds.
Numerous different groups working on parts of the business process (Inception
to Funding Agreement, Contract Management, Compliance and Monitoring,
Financial Systems), Reporting, Performance Management, Technical
Assistance, CLLD, Financial Instruments.
2
ESIF Business Process and Simplification
Drivers
We have taken note of the following:
• Lessons Learned
• EC tightening compliance environment (Driven from the ECA)
• ERDF (and ESF) Interruption in payments
• Informal discussions with EC on the intent of the regulations and guidance
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ESIF Business Process and Simplification
Business Process Design
Initial Success Criteria
• Complies with EC Requirements
• Aligns different funds (ERDF, ESF, growth part of EAFRD)
• Cost effective
• ‘Hides the Wiring’ where possible
• Business process specifies the IT system
• IT system streamlines process and reduces bureaucracy and complication
• Aligns audit and monitoring
• Compliant and Efficient payment and compliant ESF
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ESIF Business Process and Simplification
Business Process Design Principles
Principles
• Complies with EC Requirements – built from the regulations, then EC
guidance, then lessons learned and good practice – without gold-plating
• Aligns different funds – Standard design of forms, guidance and
documentation on a common portal
• Cost effective – Right first time - Do task once - At the right time - As early
as required
• Clarity - ‘Expose the Wiring’ so that the applicant is clear of the requirements
from the outset
• Digital by default - (Application, Monitoring, Reporting)
• Coordinated monitoring and audit – avoid duplication and replication
• Standardised management information and reporting
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ESIF Business Process and Simplification
Challenges
• New delivery model – not simply a continuation of the status quo
• One Operational Programme (for each Fund) informed by 39 ESIF
strategies
• Localism – a bottom up approach encourages diversity and potentially
creates a more complex programme
• Local Enterprise Partnerships and the role of local partners – places
emphasis on the importance of partnership relationship s working. Local
sub-committee (LEP Area Partnership)
• Partners have strategic role while MA manages
• EC regulations, guidance and interpretations. Message about simplification
alongside increasing complexity and emphasis of European Court of
Auditors on greater compliance
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ESIF Business Process and Simplification
Growth Programme Board
PMC
PMC Sub-Committees
Performance and
Accountability
Sub-Committee
7
Local
Sub-Committees
1 - 39
ESIF Business Process and Simplification
Thematic
Cross Cutting
Evaluation
Communication
TA
Etc.
European Structural & Investment Fund 2014-20
High Level Business Process – Inception to Funding
Agreement
Applicant
Outline
Application
Stage One
Full
Application
Funding
Agreement
signed
Managing Authority
Publish
Call
Local
Implementation
Plan
Funding
Agreement
Promote
and
Publicise
Call
Assess
Outline
against
Criteria
Full
Technical
Appraisal
Review
Outline
and
Prioritise
Review
Full
Application
LEP Area Partnership
8
European Structural & Investment Fund 2014-20
High Level Business Process – Contract Management
Applicant
Deliver Operation
Operation
Closure
Managing Authority
Project
Initiation Visit
On-the-Spot Monitoring and Verification Visits
Closure Visit
Administrative Checks and Claims Payments
Performance Management and Monitoring
LEP Area Partners
9
Simplified Costs
• European Commission supports a simplified costs approach – see Article 68
of the Common Provisions Regulations.
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ESIF Business Process and Simplification
Simplified Costs – Common Provisions Regulations
Article 68 - Flat rate financing for indirect costs and staff costs for grants and repayable
assistance
1.
Where the implementation of an operation gives rise to indirect costs, they may be
calculated as a flat rate in one of the following ways:
(a)
a flat rate of up to 25 % of eligible direct costs, provided that the rate is calculated on the
basis of a fair, equitable and verifiable calculation method or a method applied under schemes for
grants funded entirely by the Member State for a similar type of operation and beneficiary;
(b)
a flat rate of up to 15 % of eligible direct staff costs without a requirement for the Member
State to execute any calculation to determine the applicable rate;
(c)
a flat rate applied to eligible direct costs based on existing methods and corresponding
rates, applicable in Union policies for a similar type of operation and beneficiary.
The Commission shall be empowered to adopt delegated acts in accordance with Article 149
concerning the definition of the flat rate and the related methods referred to in point (c) above.
2.
Staff costs relating to the implementation of an operation may be calculated by dividing the
latest documented annual gross employment costs by 1650 hours
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ESIF Business Process and Simplification
Simplified Costs
• European Commission supports a simplified costs approach
• Each option has its own advantages and disadvantages. For the purpose of
simplification, certainty and fairness, we favour a single model across the
Fund for all simplified costs.
• We are currently weighing up the pros and cons of the various options
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ESIF Business Process and Simplification
Simplification
Principles
• Complies with EC Requirements – built from the regulations, then EC
guidance, then lessons learned and good practice – without gold-plating
• Aligns different funds – Standard design of forms, guidance and
documentation on a common portal
• Cost effective – Right first time - Do task once - At the right time - As early
as required
• Clarity - ‘Expose the Wiring’ so that the applicant is clear of the requirements
from the outset
• Digital by default - (Application, Monitoring, Reporting)
• Coordinated monitoring and audit – avoid duplication and replication
• Standardised management information and reporting
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ESIF Business Process and Simplification
Next Steps
• Process and draft documentation and guidance agreed – June 2014
• Test for compliance (and best practice, gold-plating) – July 2014
• Finalise all documentation relating to:
• Calls for operations – July 2014
• Outputs, Application and Appraisal – October 2014
• Claims, Irregularities & Monitoring – January 2015
• Support and Training for potential applicants and local partners – from
October 2014
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ESIF Business Process and Simplification
Questions and Observations
• What are the realistic expectations you have from simplification?
• Views on simplified costs?
• Any thoughts on how the points we have made can be improved with a
focus on simplification?
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ESIF Business Process and Simplification

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