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 23rd 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 4th

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 executed as at 31/12/2007 Payments executed in 2007 alone Payments executed as at 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

per Fund Total amount 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 Total Eligible Cost (2007) € Forecasted Total EU Share (2007) € Actual EU Eligible Funds 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 10th 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 14th 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
• rganisations, 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.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Publicity Undertaken ESF 50th Anniversary Publicity & Communications Campaign The objective of the ESF 50th Anniversary Publicity & Communications Campaign was that of raising awareness of what “the ESF means to me” highlighting the local context and also the opportunities that ESF

• ffers.

The campaign was:

• primarily informative in nature;
• conveying factual information on what has been & what is being

achieved through ESF;

• explaining various actions undertaken through ESF
• highlighting the ultimate benefits of ESF to the Maltese citizens.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

50th Anniversary Publicity & Communications Campaign

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Additional Publicity Events Undertaken by the MA

Events: Qualitex Fair New EU Member States Conference

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Additional Publicity Events Undertaken by the MA

Media Events:

• radio interviews
• television interviews
• newspaper articles
• surveys

Promotional Material

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Publicity at Project Level

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Administrative Capacity

• The drafting, presentation & implementation of the training

strategy.

• In line with the recommendations of the Mid-Term Update a

further restructuring & recruitment was set in motion.

• The MA, PA, & IAID all saw the administrative capacity being

strengthened while departing staff from DoC was replaced with new staff;

• Calls were launched for further strengthening of stakeholders at

the junior level to build a pool of people gaining experience to ensure sustainability of structures in the long term;

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Overview of main problems encountered

Insufficient human resource complement & turn over; Action Taken: there were several efforts to strengthen administrative capacity in 2007. Resistance to excessive administrative burden tied to projects co-financed through Structural Funds; Action Taken: bilateral meetings with relevant stakeholders were held to ensure that FBs gain a better understanding of the issues and the WHY.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Overview of main problems encountered (cont)

Delays in implementation of projects; Action Taken: Regular bilateral meetings were held between all the relevant stakeholders to ensure that all resources were employed to meet the deadlines. DoC held meetings with contractors to resolve issues involving the private sector contractors.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Overview of main problems encountered (cont)

Delays in issuing payments for aid schemes; Action Taken: the MA is closely monitoring the payments of aid schemes & Treasury directed additional resources to ensure that payments proceed steadily. Additional staff complement engaged at Treasury in 2006 has resulted in an improved payment flow when compared to previous years and the pace is expected to improve further in 2008.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Conclusion

The year 2007 was a positive year in terms of the implementation of the 2004-2006 Structural Funds Programme for Malta. A substantial number of projects were either completed or were nearing completion by the end of the year under review and these projects started to leave the desired impact. The awareness on the contribution of EU funding has increased considerably through the various publicity initiatives undertaken throughout the year.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

Conclusion (cont)

The N+2 commitments for 2007 were met (in real terms) and exceeded for all four Funds. Re-confirmation that the structures set up for the implementation of the Programme are sound and delivering the

• bligatory commitments of the Regulations.

Planning and Priorities Co-ordination Division

Office of the Prime Minister

Annual Implementation Report 2007

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