European Globalisation adjustment Fund (EGF) Launch Meeting of the Contact Persons of the European Globalisation adjustment Fund 01 March 2007 Hotel Bedford,

European Globalisation adjustment Fund (EGF)

Launch Meeting of the Launch Meeting of the Contact Persons of the Contact Persons of the European Globalisation European Globalisation

adjustment Fundadjustment Fund01 March 200701 March 2007

Hotel Bedford, BrusselsHotel Bedford, Brussels


Nikolaus van der Pas

Director General of DGEmployment, Social Affairs and

Equal Opportunities


Directorate General for Trade


Directorate General for Enterprise and

Industry See separate Slide Show


Introduction to the EGF


EGF Application Form




Implementation and Financial Plan for a contribution under the EGF

Member State: [Name of Member State]

EGF application in respect of: [enterprise, sector, etc - please specify]

ActionsTotal cost

(EGF and national co-financing)

(estimated number) (estimate in Euro) Euroa b c=a*b

A. Actions (list individual actions planned) (Art. 3.1)

Job-search assistance 0Occupational guidance 0Training and re-training 0Outplacement assistance 0Entrepreneurship promotion 0Aid for self-employment 0Job-search allowances 0Mobility allowances 0Training allowances 0Measures to stimulate older workers, etc 0Other measures (specify; one per line) 0Other measures (specify; one per line) 0Other measures (specify; one per line) 0Other measures (specify; one per line) 0Sub-total Actions 0

preparatorymanagementinformation and publicity

Under Part A please use a separate line for each separate action

Cost of actions

Numbers of workers targetted

Cost per worker targetted


Implementation and Financial Plan for a contribution under the EGF

Member State: [Name of Member State]

EGF application in respect of: [enterprise, sector, etc - please specify]

Actions

(estimated number) (estimate in Euro) Euro

Job-search assistance 0Occupational guidance 0Training and re-training 0Outplacement assistance 0Entrepreneurship promotion 0Aid for self-employment 0Job-search allowances 0Mobility allowances 0Training allowances 0Measures to stimulate older workers, etc 0Other measures (specify; one per line) 0Other measures (specify; one per line) 0Other measures (specify; one per line) 0

B. Technical Assistance for implementing EGF (Art. 3.3)

preparatorymanagementinformation and publicitycontrol activitiesSub-total Technical Assistance 0

TOTAL COST 0

NB: The EGF will normally contribute 50% of the cost of the actions listed under Part A.


EGF Guidance for Applicants




Time line in the Member State


4 months / 9 months 10 weeks

The Member State

European Globalisation adjustment Fund (EGF)C

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The Employer

Consultation Search for solutions


Notification Enterprise 1

Employers



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Member State

etc…

4 or 9 months


12 months 6 months

The Member StateA

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Implementation Final Report Winding up

6 months

The Commission

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Time line in the European Institutions


Preparatory phase: Assessment of application by Commission services in consultation with Member State (Art. 5.5 of EGF Regulation):

4 weeks


Proposal from Commission to Budgetary Authority (Art. 12.3):

10 to 11 weeks

Approval by Budgetary Authority:

7 weeks minimum, except for requests made in August


Adoption by Commission of Financing Decision (Art. 12.7 of EGF Regulation):

1 to 2 weeks

Transfer of the funds from the reserve to the EGF budget line:

1 week


From commitment of the funds until receipt of the amount on the Member State’s account:

2 weeks

Total period (from the formal submission of application):

26 to 31 weeks (at least)


Essential conditions to meet

time line:

• Formal application contains all necessary information

• Formal application does not require translation


Monitoring and Evaluation

Olivier RoulandDG Employment

Unit I/4


Legal Requirements:

Commission will carry out, in close cooperation with Member States:

• Mid Term evaluation by the end of December 2011

• Ex Post evaluation by the end of December 2014


Evaluation Questions

Mid Term Evaluation: effectiveness and sustainability of results

Ex Post Evaluation: Impact and the Added Value of the EGF


Total Of which female

Number of participants Employed

Of which Self employed

Unemployed

Inactive

Of which in Education or Training

Age Young people (15 – 24)

Older workers (55 – 64 years)

Vulnerable Groups Minorities

Migrants

Disabled

Others

Education Attainment Primary of lower secondary education (ISCED 1 and 2)

Upper secondary education (ISCED 3)

Post-secondary non tertiary education (ISCED 4)

Tertiary education (ISCED 5 and 6)


Transmission:

When: With the Final Report, except for LM Status (+12 months)

What: Quantitative data and Qualitative Notes

How: Table included in Final Report + Electronic Datasheet


AuditVincent Widdershoven

DG EmploymentUnit I/2


Audit of the European Globalisation Adjustment Fund

• Legal basis

Article 18 of Regulation (EC) N° 1927/2006 management and financial Control

Article 19 of Regulation (EC) N° 1927/2006 reimbursement of financial contribution



Shared management

• common objective for Member States and the Commission

• Interdependence

• transparency



Risks in case of absence of audit and control• absence of supporting documents• payments outside period of eligibility• breaches of public procurement rules• non deducted revenues• lack of follow up of irregularities• ineligible expenditure• multiple payment of the same costs• lack of appropriate separation of functions• weak controls by management and payment authorities



Responsibility in first instance for the Member State

• verifying that management and control arrangements have been set up and are being implemented

• verifying that the financed actions have been properly carried out

• ensuring that expenditure funded are based on verifiable supporting documents, are correct and regular



• preventing, detecting and correcting irregularities and recovering amounts unduly paid together with interest on late payments

• ensure that actions receiving a contribution under the EGF shall not also receive assistance from other Community financial instruments (art. 6(5))

• present a report to the Commission on the execution of the financial contribution together with a statement justifying the expenditure (art. 15(1))



Responsibility of the Commission

Satisfy itself that Member States have put in place smoothly functioning management and controlsystems

- check actions financed by EGF on the spot

- apply financial corrections (article 19)



Objective of audit activity of the Commission

Gain reasonable assurance that final payments were

made on the basis of eligible expenditure



How to get reasonable assurance

• Check whether Member State has implemented efficient management and control procedures (assessment of systems descriptions)

• Closure audits



Assessment of systems descriptions

a) Member State uses ESF-management and control systems

- rely on audit work already undertaken by the

Commission

- sufficient to do substantive testing in order to check whether systems worked as described

and closure audits



b) Member State uses other systems Commission to check whether the system fulfils minimum requirements The general key requirements

– a clear definition and clear allocation of functions

– an adequate separation of functions (as necessary to ensure sound financial practice)

– reporting requirements on intermediate bodies on performance of functions



Essential elements

• verification procedures at the management level

• certification of expenditure statements by a functionally independent person or department

• verification of the effectiveness of the management and control systems and checks



Additional elements• provide a detailed description of the management and

control systems– to be assessed by the services of the Commission;– include all relevant bodies– in particular the description has to specify for each body

the functions vested in them– to be updated or completed on a regular basis, and

indicated in the annual report



• management and control systems must ensure a sufficient audit trail which permits– reconciliation of the summary amounts certified to the

Commission with the individual expenditure records and supporting documents, and

– verification of the allocation and the transfers of the available Community and national funds.

• specify the arrangements for the retention of supporting documents



Verify the reliability of the statement of

expenditure (closure audit)

- did Member State carry out controls

- was closure process carried out in a correct manner

- is the statement of expenditure legal and regular



Audit strategy for the years 2007-2008



Audit methodology (to be developed)

• risk analyses

• selection methods

• contradictory procedures

• financial corrections

Documents

European Globalisation adjustment Fund (EGF) Launch Meeting of the Contact Persons of the European Globalisation adjustment Fund 01 March 2007 Hotel Bedford,