Management and control systems

The management and control systems (MCS) for the programmes related to 2014-2020 programming period 

The European Commission (EC) is developing and implementing the policies of the European Union (i.e. the Regional Policy, the Common Agricultural Policy, etc.), through its Directorates-General. The European funds allocated to these policies are either managed by the EC directly or indirectly (i.e. research funds) or shared between the EC and the Member States in the sense that the EC transfers to the Member States the responsibility for implementing the programmes at the national level.  

Therefore, within the shared management of funds, the Member States are responsible for setting up a management and control system in line with the applicable European and national legislation. In order for the European funds to be transferred from the European Commission to their final beneficiaries, an institutional architecture is established as briefly presented in the figure below. 
 
I.    Regional development and fisheries funds 

• Regional Operational Programme 
• Technical Assistance Operational Programme
• Competitiveness Operational Programme

• Human Capital Operational Programme
• Operational Programme "Administrative Capacity" 

• Large Infrastructure Operational Programme (LIOP) 

• European Maritime and Fisheries Fund (EMFF)

In compliance with article 123 of the (EU) Regulation No 1303/2013 of the European Parliament and of the Council, the Member State has to designate for each operational programme: a Management Authority ("MA"), a Certifying Authority ("CA") and an Audit Authority ("AA"). 

The MA is responsible for the management of the operational programme in accordance with the principle of sound financial management. Its main tasks are laid down in Article 125 of the (EU) Regulation No 1303/2013 of the European Parliament and of the Council, mentioning a few: the selection of projects, the technical and financial verification of projects implemented by the beneficiaries, the setup of a system for recording and storing data in electronic form for each project financed, the drafting of the annual and final implementation reports for the programme, the drawing up of the management declaration and of the annual summary report. 

The CA is mainly responsible for drawing up and submitting the payment requests to the EC (standardized documents that request funds from the EC in a centralized manner on the basis of the reimbursement requests received from beneficiaries) and for drawing up the accounts of the operational programme (8 financial statements containing financial data concerning the implementation of the operational programme, such as the declared expenditure, the amounts withdrawn or recovered, etc.).  The main tasks are stipulated in Article 126 of the (EU) Regulation No 1303/2013 of the European Parliament and of the Council. 

The AA main task is to carry out audits on the proper functioning of the management and control system of the operational programme and on an adequate sample of operations based on the declared expenditure and to issue an opinion, in accordance with the internationally accepted audit standards, on the management and control systems, on the expenditure submitted to the EC for reimbursement and the programme’s accounts. The main tasks are laid down in Article 127 of the (EU) Regulation No 1303/2013 of the European Parliament and of the Council. 

Member State may designate (optional): 

• Intermediary bodies (IB): They may carry out certain tasks of the MA or of the CA under the responsibility of the delegating authority or manage part of an operational programme, providing guarantees of solvency and competence in the area concerned, as well as administrative and financial management capacity. 
• A Coordinating body (CB): Its responsibility is to liaise with the EC, to coordinate the activities of the other relevant designated bodies and to promote the harmonized application of the legislation in force. 

In compliance with the provisions laid down in the Government Decision No 398 of 27 May 2015 for establishing the institutional framework for the coordination and management of the European Structural and Investment Funds and for ensuring the continuity of the institutional framework for the coordination and management of the 2007-2013 Structural Instruments, and further amendments, in Romania, the bodies acting as MA, CB and AA for the programmes financed by the Regional Development and Fisheries Funds are shown in the figure below: 

 
II.    Funds for territorial cooperation (ERDF and IPA) 

• INTERREG V A Romania Hungary programme (RO-HU) 
• INTERREG V A Romania Bulgaria programme (RO-BG) 

• IPA II - ROMANIA-SERBIA (RO-Sb) 

In compliance with the Article 21 of (EU) Regulation No 1299/2013 of the European Parliament and of the Council and the Article 123 of (EU) Regulation No 1303/2013 of the European Parliament and of the Council, the Member State has to designate for each programme a Management Authority ("MA"), a Certifying Authority ("CA") and an Audit Authority ("AA").  Their main tasks are foreseen in Articles 125, 126 and 127 of the (EU) Regulation No 1303/2013 of the European Parliament and of the Council.
The AA may be assisted by a group of auditors composed of one representative from each Member State or third country participating in the Programme. The MA and AA shall be located in the same Member State.

Following consultation with the member states and all the third countries participating in the programme, the MA sets up:  

• A Joint Secretariat (JS): It offers assistance to the managing authority and to the monitoring committee in carrying out their functions, provides information to potential beneficiaries on funding opportunities and assists beneficiaries in the implementation of operations. 
• First level control units: Where the MA does not carry out management checks throughout the programme area, each State participating in the programme shall designate the body responsible for performing such checks in relation to the beneficiaries on its territory. 

Each participating State may designate a national authority, primarily responsible for ensuring access to information for the MA and AA during the performance of their tasks, transposing into the national regulatory framework rules on eligibility of expenditure, signing contracts with beneficiaries in that respective country, ensuring the transfer of national co-financing from the state budget to project beneficiaries within the country. 
The authorities involved in the management and control of the cooperation programmes, financed by the ERDF and IPA, for which Romania is the managing authority, are shown in the figure below: 

 
III.    Funds for territorial cooperation (ETC) 

• Joint Operational Programme Romania- Republic of Moldova (RO-MD) 
• Joint Operational Programme Romania – Ukraine 2014-2020 (RO-UK) 
• Black Sea Basin Operational Programme 2014-2020 (BMN) 

A managing authority ("MA") and an audit authority ("AA") have to be designated for each programme in compliance with the Article 20 of (EU) Commission Implementing Regulation No 897/2014.
The MA is responsible for the management of the programme, in compliance with the principle of the sound financial management.  The main tasks of the MA are foreseen in the Article 26 of the (EU) Commission Implementing Regulation No 897/2014 including the drafting of the payment applications and the annual accounts. 
The AA carries out audits of the management and control systems, operations audits performed based on a representative sample of operations and audit of the programme’s annual accounts. AA drafts an annual control report and issues an audit opinion on the annual accounts for the previous accounting year. The main tasks of the AA are foreseen in Article 28 of the (EU) Commission Implementing Regulation No 897/2014.  The audit authority shall be assisted by a group of auditors composed of one representative of each country participating in the programme.  The managing authority and the audit authority shall be located in the same Member State.  
Optionally, one or more intermediate bodies may be designated to carry out specific tasks of the managing authority under the responsibility of the latter.  
The Member State in which the managing authority is established may designate, on its own initiative, a coordinating body whose responsibility shall be to liaise with and to submit information to the Commission, to coordinate the activities of the other relevant designated bodies and to promote the harmonized application of the legislation in force. 

Each participating country designates: 

• a national authority, which shall support the managing authority in the management of the programme; 
• a control contact point, which shall offer support to the managing authority in the performance of its own control obligations for the programme; 
• one representative in the group of auditors; 
• Representatives in the Joint monitoring Committee. 

The authorities involved in the management and control of programmes financed by the European Neighbourhood Instrument, for which Romania is the managing authority, are shown in the figure below: 

• EAFRD - European Agricultural Fund for Rural Development 
• EAGF - European Agricultural Guarantee Fund  

The Member State designates one or more paying agencies, a coordinating body, a certifying body and a competent authority in compliance with Articles 7 and 9 of (EU) Regulation No 1306/2013 of the European Parliament and of the Council, Article 65 of (EU) Regulation No 1305/2013 and Article 1 of (EU) Commission Implementing Regulation No 908/2014.
The paying agencies are the departments or bodies of the Member States responsible for the management and control of expenditure under EAGF and EAFRD. The paying agencies ensure that the compliance with Union rules has been verified before authorizing and releasing the payments on behalf of the Union. Their main tasks are foreseen in Article 7 of (EU) Regulation No 1306/2013 of the European Parliament and of the Council and in Article 1 of (EU) Commission Delegated Regulation No 907/2014.  
In the case where several paying agencies are accredited at the level of the Member State, a coordinating body is designated as the single interlocutor between the EC and the Member State concerning matters relating to the EAGF and the EAFRD.  Its main tasks are foreseen in Article 7 of the (EU) Regulation No 1306/2013 of the European Parliament and of the Council and in Article 4 of the (EU) Commission Implementing Regulation No 908/2014.  
The certifying body provides an opinion, drafted in compliance with the internationally accepted audit standards, on the completeness, accuracy and veracity of the annual accounts of the paying agency, the proper functioning of its internal control system and the legality and regularity of expenditure requested for reimbursement from the Commission. The opinion also examines the veracity of the assertions made in the management declaration.  The main tasks of the certifying body are foreseen in Article 9 of the (EU) Regulation No 1306/2013 of the European Parliament and of the Council. 
The certifying body has to be operationally independent from the paying agency and the coordinating body and from the authority accrediting the agency. 
The Managing Authority (for EAFRD) is responsible for the efficient, effective and correct management and implementation of the programme. The main tasks of the MA are foreseen in Article 66 of the (EU) Regulation No 1305/2013 of the European Parliament and of the Council. 
The Competent Body is mainly responsible for granting/withdrawing accreditation to/from the paying agency/agencies.  The main tasks of the competent body are foreseen in Article 1 of (EU) Commission Implementing Regulation No 908/2014. 

The management and control structure for the national Rural Development Programme (NDRC) financed by the European Agricultural Fund for Rural Development is: 

 
IV. Other funds (Home Affairs) 

• The AMIF National Programme 

• ISF National Programme 

The AMIF-ISF management and control system includes: a responsible authority, an audit authority and delegated authorities, as the case may be, in accordance with Article 25 of the (EU) Regulation 514/2014 of the European Parliament and of the Council.
The Responsible Authority is a public sector body of the Member State, solely responsible for the sound management and control of the national programme and for all communication with the European Commission.  Its main tasks are foreseen in Article 4 of the (EU) Commission Delegated Regulation No 1042/2014 and include: drafting proposals for the national programmes, assessing and selecting projects and closing the related financing agreements, carrying out controls, drawing up annual and final reports on the implementation of national programmes and drawing up applications for payment to the EC.  

The Member State may designate one or more delegated authorities to carry out certain tasks of the responsible authority. 
The audit authority is a national public authority or body, functionally independent of the responsible authority, in charge of issuing an annual opinion in compliance with the internationally accepted audit standards, on the management and control systems, on the expenditure submitted to the EC for reimbursement and on the programme’s accounts.  Its main tasks are foreseen in Article 29 of the Regulation (EU) No 514/2014 of the European Parliament and of the Council and in Article 14 of the Commission Delegated Regulation (EU) No 1042/2014. 

According to the provisions of GD No 48 of 28 January 2015 on the establishment of the management and control system for the management of the funds granted to Romania under the 2014-2020 multiannual financial framework, the main institutions involved are shown in the figure below:

 

V.    Other Funds (FEAD): 

• 2014-2020 Operational Programme for European Aid to the Most Deprived (FEAD) 

The management and control system includes: a managing authority, a certifying authority and an audit authority according to Article 31 of the (EU) Regulation No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived.

The managing authority is responsible for managing the operational programme in accordance with the principle of sound financial management. The main tasks are foreseen in Article 32 of the (EU) Regulation No 223/2014 of the European Parliament and of the Council. 

The certifying authority is mainly responsible for drafting and submitting the payment requests to the EC and for drawing up the accounts of the operational programme. The main tasks are foreseen in Article 33 of the (EU) Regulation No 223/2014 of the European Parliament and of the Council. 

The audit authority mainly carries out audits of the proper functioning of the management and control system of the operational programme and audits of operations of an appropriate sample of operations on the basis of the declared expenditure and issues an opinion in compliance with internationally accepted audit standards on management and control systems, on expenditure submitted to the EC for reimbursement and on accounts relating to the programme.  The main tasks are foreseen in Article 34 of (EU) Regulation No 223/2014 of the European Parliament and of the Council. 

According to the provisions of the GEO No 84 of 21 May 2020 establishing measures necessary for the implementation of the FEAD Operational Programme, the institutions acting in the FEAD management and control system are those set out in the scheme below: