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EUROPEAN COMMISSION Cohesion EN Fund

Regional Policy

CLOSURE OF COHESION FUND PROJECTS 2000-2006

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Regional Policy

1. 2. 3. 4. 5. 6. 7.

What does closure mean? Closure general principles When does closure start? Documents to be submitted Content of the closure documents Uncompleted projects Projects suspended due to administrative and legal proceedings

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What does closure mean?

1. What does closure mean? Closure is the process that allows: 1) To state that the project as implemented on the ground corresponds to the CF decision; 2) To state that expenditure is legal and regular; 3) To pay the balance of the outstanding CF commitment. After closure, the Commission can make controls

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Regional Policy

2. Closure general principles


Closure general principles

Apply to CF and ex ISPA projects first adopted after 1/1/2000 Guidelines on CF closure adopted by COM in April 2008 (SEC(2008)415) Final date of eligibility of expenditure: in Article 2(3) of decisions Final date of eligibility cannot go beyond 31/12/2010, except administrative or legal proceedings having suspensory effects, force majeure, errors of the Commission.

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When does it start?

3. When does closure start?

For the MS: After the final date of eligibility of expenditure For the Commission: After reception of the closure documents

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Cohesion EN Fund

4. Documents to be submitted
Closure documents

Final payment application with certificate of statement of expenditure Final report Winding up declaration with winding up report

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Timetable

Timetable for submission of closure documents Final payment application and final report: within 6 months of final date of eligibility Winding up declaration: no regulatory requirement, but advisable to follow the same rule Date to take into account = sending date (postal stamp)

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Late submission of one or more documents If document(s) not received within the deadline, warning letter is sent to MS If document(s) not received after 2 months: possibility to start Article H (financial corrections) on a case-by-case basis Failure to present the final report within 18 months of final date of eligibility: remaining balance and any outstanding commitment will be cancelled
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EUROPEAN COMMISSION Cohesion EN Fund


Regional Policy

5. Content of closure documents


Content of closure documents

5.1. Application for payment & certified statement of final expenditure

Format set out in Annex II to Reg. 1386/2002


Confirmation by the PA that expenditure has been actually effected; that it relates to works eligible under the CF decision; that it is justified by progress on the ground Recoveries must be deducted (before closure, recovered amounts can be re-allocated to the project)

These docs cannot be modified after the deadline for submission, unless EC asks

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5.2. Content of the final report


Set out in Article F(4) Annex II Reg.1164/94:

Content of closure documents

Description of the work carried out, Information on publicity measures, Certification that the work conforms to the decision, Assessment that the anticipated results are achieved (actual starting date, management when finished, confirmation of financial forecast, indication of environment measures)

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Content of closure documents

5.3. Content of the winding up declaration and report Format: Annex III to Regulation 1386/2002 Content: opinion of a body independent from the MA and the PA confirming the validity of final payment application & regularity of expenditure + summary of checks done in previous years

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Content of closure documents

Keep in mind: If all information required is not included in the final report or the winding up declaration, COM will request their completion with a time limit for compliance Failure to comply : closure is started with info available or if no other solution is found: financial corrections (Article H) are triggered

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Uncompleted projects

6. Uncompleted projects at the time of closure (1) CF assistance cannot be granted for uncompleted projects. In these cases, only national resources can be used to achieve project. Guidelines on non-completed projects were issued in 2003

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Uncompleted projects

1)

2)

3)
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Uncompleted projects (2) Works have to be completed within 12 months after the deadline included in the decision When final report is submitted, 3 cases may happen: The part achieved is functional and whole project will be completed within the 12 months: payment is made based on request received The part achieved is functional but project is not completed within 12 m: balance is cancelled and COM will consider if Article H applies The part achieved is not functional: Article H

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Projects suspended

7. Projects suspended due to administrative and legal proceedings Concern proceedings or appeal provided for by national law, and infringements initiated by EC The MS must draw operational conclusions and propose solutions before final eligibility date (modifying decision possible) MS must inform Commission on proceedings If modifying decision not possible: COM will decide accordingly: for ex. closure with proportional payment for the part completed, reduction or cancellation of assistance (Article H)

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Thanks for your attention

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