Aleksandrs Antonovs Director of the EU Funds Department Managing Authority of the EU Funds

1. Methodology/Guidelines Developed by the Managing Authority of the EU Funds for the Programming Period of 2007-2013 Aleksandrs Antonovs Director of the EU Funds Department Managing Authority of the EU Funds Meeting of the Monitoring Committee 8 November 2007

2. Contents • Methodology for implementation of on-the-spot checks • Guidelines on traceability and justification of the administrative costs, including remuneration to the administrative personnel • Methodology for application of the cross-financing principle • Guidelines on eligible and non-eligible costs • Guidelines for implementation of horizontal policies Managing Authority of Structural Funds – Ministry of Finance

3. Methodology for application of the Cabinet Regulations No. 440 "Procedure by which the Managing Authority, Certification Body, Cooperation Authority or Responsible Authority implement on-the-spot checks for projects financed from the EU Structural Funds and the Cohesion Fund" adopted on 26 June 2007 • The methodology is applicable to the EU Fund projects during the programming period 2007-2013. • Objective of the methodology - to establish uniform conditions for application of the Cabinet Regulation No. 440, as well as define uniform risk assessment criteria for the projects of EU Structural Funds and the Cohesion Fund. Managing Authority of Structural Funds – Ministry of Finance

4. Methodology for application of the Cabinet Regulations No. 440 adopted on 26 June 2007 - Contents • Contents of the internal procedures regarding the way in which on-the-spot checks are implemented • Risk assessment criteria • Checklist for on-the-spot checks • Evaluation of results from on-the-spot checks “Best practice” applicable for checks by examining: • traceability and justification of the administrative costs, including payment of remuneration to the administrative personnel; • double financing; • compliance with the state aid requirements; • compliance with the gender equality requirements; • compliance with the environmental protection requirements; • compliance with the public procurement requirements. Managing Authority of Structural Funds – Ministry of Finance

5. Guidelines on traceability and justification of the administrative costs, including payment of remuneration to the administrative personnel within projects of EU Structural Funds and the Cohesion Fund • The guidelines are applicable by implementing checks within projects of the EU Structural Funds for programming periods 2004-2006 and 2007-2013 and within projects of the Cohesion Fund for the programming period 2007-2013. • Objective of the guidelines - to establish a uniform approach for checks on traceability and justification of the administrative costs, including payment of remuneration to the administrative personnel Managing Authority of Structural Funds – Ministry of Finance

6. Contents of the guidelines on traceability and justification of the administrative costs, including payment of remuneration to the administrative personnel within projects of EU Structural Funds and the Cohesion Fund • Ensuring traceability and justification of administrative costs • Ensuring traceability and justification of payment of remuneration to the administrative personnel Annexes to the guidelines: • form of the timesheet; • form of the progress report; • form of the interim and final delivery note; • form of the statement; • form of the list of officials and/or employees working and receiving remuneration within the framework of several projects implemented by the authority; • form of the total workload sheet of an official and/or employee. Managing Authority of Structural Funds – Ministry of Finance

7. Methodology for application of the cross-financing principle • The methodology is applicable to the EU Fund activities and projects during the programming period 2007-2013. • Objective of the methodology - to explain aspects of applying the cross-financing principle and eligibility of the costs by promoting a uniform and consistent practice for application of this principle. Managing Authority of Structural Funds – Ministry of Finance

8. Contents of the methodology for application of the cross-financing principle • The essence of the cross-financing principle – General Regulations and conditions of EU Funds Regulations; • Application of the cross-financing principle – the need for cross-financingis particularly justified, and it is ensured thatsuch (of other type of Fund) activities are not financed from another Structural Fund • Eligibility of costs – conditions for the eligibility of costs of he activities of other EU Funds; indication of the use of cross-financing principle in programming documents and the legislation; • Monitoring of application of the cross-financing principle – defining the maximum amount of cross-financing, supplementing the internal procedures for the involved institutions, providing information on the use of cross-financing, making decision on recovery of the irregular expenditure. Managing Authority of Structural Funds – Ministry of Finance

9. Guidelines on definition of eligible and non-eligible costs for the programming period 2007-2013 • Definition of eligible and non-eligible costs of the EU Structural Funds and the Cohesion Fund for the programming period 2007-2013 is under responsibility of every Member State, taking into account exceptions provided for in the specific Regulation for each Fund. • Objective of the guidelines - to explain the opinion of the Managing Authority regarding several types of costs to be included in the Cabinet Regulations on activity implementation as a condition for eligibility of EU Fund costs. • Guidelines have been approved by the Managing Authority on 27 August 2007. Managing Authority of Structural Funds – Ministry of Finance

10. Contents of the guidelines on definition of eligible and non-eligible costs for the programming period 2007-2013 • Administrative and remuneration costs related to the project implementation • Depreciation costs • Reserve for incidental expenditure • Leasing costs • Costs related to acquisition of real estate and land • Costs related to acquisition of second-hand equipment • Costs related to acquisition of vehicles • In-kind investments • Financial audit costs • Insurance costs • Costs related to the preparation and improvement of the construction object Managing Authority of Structural Funds – Ministry of Finance

11. Guidelines of the institutions responsible for the coordination of the horizontal policy for implementation of horizontal policies during the programming period 2007-2013 Institutions responsible for the coordination of horizontal policies in implementation of the EU Funds are defined by the Article 3 of the Cabinet Regulation No. 419 adopted on 26 June 2007: • The Ministry of Welfare responsible for the horizontal policy of equal opportunities concerning issues of gender equality, disability and ageing, • The Secretariat of Special Assignments Minister for Electronic Government Affairs responsible for the horizontal policy of information society, • The Ministry of Regional Development and Local Government responsible for the horizontal policy of balanced territorial development and horizontal policy of international competitiveness of Riga, • The Ministry of Environment responsible for the horizontal policy of sustainable development regarding issues of environmental protection, • The Ministry of Finance responsible for issues concerning coordination of the horizontal policy of macroeconomic stability. Managing Authority of Structural Funds – Ministry of Finance

12. Contents of methodologies of the institutions responsible for coordination of the horizontal policy for implementation of horizontal policies during the programming period 2007-2013 • Objective of the guidelines – to provide an explanation on how the achievement of objectives of the horizontal priority can be ensured in practiceduring the programming period 2007-2013 • The guidelines envisage an opportunity to act in regard to implementation of the horizontal priority at several stages: • ensuring appraisal criteria for specific project applications; • providing for specific result indicators to be achieved; • providing for separate terms within the conditions on eligible and non-eligible costs; • promoting the good practice in planning, preparation and implementation of projects. Managing Authority of Structural Funds – Ministry of Finance

13. Thank you for your attention!