specific tasks and powers. These institutions are responsible for the smooth running of the entire seven-year period in each EU Member State. There is a Managing Authority (national strategic programme level), a Monitoring Committee and an Intermediary Body (operational programmes level) for each level of strategic and Operational Programmes. Repayment of funds is in charge of an Paying Authority which is complemented by a Certifying Authority and an Audit Authority.
Each OP has a Monitoring Committee that initiates its activity within three months of approval of the Operational Programme, in agreement with a Managing Authority. One Monitoring Committee may serve more Operational Programmes. This committee chaired by a representative of a member state or a Managing Authority. It also consists of representatives of the Intermediary Bodies. Representatives of the European Commission can assist as advisers and also representatives of the EIB can attend if the EIB contributes to an Operational Programme. Monitoring Committees should meet at least once per year. Their task is to monitor effectiveness and quality of OP implementation, comparison of the progress of all types of indicators and targets, examination and approval of the OP annual reports, ensurance of collection of data and creation of statistics and their providing to the
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European Commission. Moreover in the middle of the period, the member states submit a progress report, which monitors achieving milestones and functioning of the cohesion policies in the EU Member States to achieve the objectives of the Union.146
The Monitoring Committees also carry out evaluation in order to improve the overall functioning of the Operational Programme with respect to structural problems and sustainable development. Evaluations may be strategic (OP contribution to the Union) or operational (support monitoring). The Monitoring Committees perform three types of evaluation (ex-ante, ongoing, ex-post) and all their activities are financed from the technical assistance budget. Ex-ante evaluation is realized before the beginning of the programming period to investigate the contribution of the OP, the quality of management, size of funds allocated to the OP, the goals to be achieved, etc. Ongoing evaluation is based on the seven-year monitoring and evaluation of achieved results. The performance reserve147 follows the functioning of this kind of evaluation. The purpose of the performance reserve is to focus the work of the EU Member State and its institutions to achieve their objectives.
Each Operational Programme will have set milestones to be achieved in the period 2014 – 2020. Performance review will be carried out in cooperation with the member state. The achievement of agreed milestones in time will bring additional financial resources to the member state from its performance reserve. The failure to reach milestones can mean suspension of payments by the European Commission for that programme. Milestones will be set for the years 2016, 2018 and 2022. The actual performance review will take place in 2017 and 2019 and then, after whole programming period 2014 – 2020.148 Even in the current period, there is the mechanism of performance reserve. However, it is voluntary and only in amount of 3 % of the total resources of the EU Member State at that objective. Last performance review took place in 2011. Then, the European Commission divided reserve among the successful Operational Programmes on the basis of a member state proposals. The Czech Republic has passed this evaluation very well and therefore, it has received additional funds for its development. Ex-post evaluation is made by the European Commission in cooperation with the member state. In this case, they assess the extent of
146 EUROPEAN COMMISSION [online], 2011f, ref. 30.
147 The performance reserve is 5 % of the resources allocated to each EU Fund and a member state. 148 EUROPEAN COMMISSION [online], 2011f, ref. 30.
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the financial resources, the efficiency of their use and socio-economic impact. The operational system and cooperation among institutions is shown in figure 3.5.149
Figure 3.5: Model scheme of implementing processes in Operational Programmes
Source: Own elaboration, 2013
Each EU Member State must establish Managing Authorities, Certifying Authority and Audit Authority at national, regional or local level for both programming periods for each Operational Programme. These bodies may be designed for more Operational Programmes plus may be a part of the same governmental authority and their main role is to implement the financial transactions between the European Commission and beneficiaries. The Managing Authority is responsible for the implementation and management of the Operational Programme and the selection of projects. It also ensures their compliance with legal regulations, checks all expenditures on contracted projects, keeps accounting records and determines the rules for dealing with them, informs the Monitoring Committee on the OP progress, provides information for the Certifying Authority, draws up an annual and a final reports on the functioning of the Operational Programme, etc. A part of this task can be converted to the Intermediary Body.
The Certifying Authority is basically an accounting entity of the programming process because it certifies projects and these statements are re-sent to the European Commission, together with requests for payment. A certification may occur after the receipt of the audit results from the Audit Authority. The Certifying Authority is also responsible for an accuracy of statements and their conformity with EU rules, accounting records, etc. The European Commission sends payments to the Paying Authority after approval of eligibility of expenditures. The Audit Authority ensures project audits by verifying declared expenditures, it executes audits of the functioning and of the OP management and
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control system, it creates an audit strategies, publishes inspection reports, etc. At the top of the hierarchy at the national level, there is the National Coordination Authority which is responsible for the overall implementation of cohesion policy in the member state.150
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