Article 14(1) ESF Elsa KMIECIK, DG Employment, ESF coordination unit Elsa.Kmiecik@ec.europa.eu 1
Article 14(1) ESF In addition to the options referred to in Article 67 of Regulation (EU) No 1303/2013, the Commission may reimburse expenditure paid by Member States on the basis of standard scales of unit costs and lump sums defined by the Commission. The amounts calculated on this basis shall be regarded as public support paid to beneficiaries and as eligible expenditure for the purpose of applying Regulation (EU) No 1303/2013. For the purpose of the first subparagraph, the Commission shall be empowered to adopt delegated acts in accordance with Article 24 concerning the type of operations covered, the definitions of the standard scales of unit costs and lump sums and their maximum amounts, which may be adjusted according to the applicable commonly agreed methods, taking due account of experience gained during the previous programming period. Financial audit shall exclusively aim at verifying that the conditions for reimbursement by the Commission on the basis of standard scales of unit costs and lump sums have been fulfilled. Where funding on the basis of standard scales of unit costs and lump sums, in accordance with the first subparagraph, is used, the Member State may apply its accounting practices to support operations. For the purpose of this Regulation and Regulation (EU) No 1303/2013, such accounting practices and the resulting amounts shall not be subject to audit by the audit authority or by the Commission. 2
What is Article 14(1) ESF? The possibility for the Commission to define by delegated act standard scales of unit costs and lump sums. And the possibility for MS to apply its own accounting practices with the beneficiary. 3
Audit trail SCO (Art. 67 CPR) Operation MS COM Direct Staff costs: 4.500 EUR (SSUC hourly based) Other direct costs: 1.500 EUR (real costs) Indirect costs: 675 EUR (15% flat rate from REGL) Direct Staff costs: justify the methodology of the SSUC and justify the number of hours Other direct costs: justify the real costs Indirect costs: apply the REGL and check the basis of calculation Same amounts declared and used as a basis of reimbursement from beneficiary to COM 4
Article 14(1) ESF - Version 1.0: the "baby step" The possibility to define by delegated act standard scales of unit costs and lump sums covering only parts of the eligible expenditure of an operation. 5
Audit trail 14(1)ESF version 1.0 Operation Staff costs: 4.500 EUR (SSUC hourly based) Other direct costs: 1.500 EUR (real costs) Indirect costs: 675 EUR (15% flat rate from REGL) MS Staff costs: justify the methodology of the SSUC use the SSUC from the DA and justify the number of hours Other direct costs: justify the real costs Indirect costs: apply the REG and check the basis of calculation COM Same amounts declared and used as a basis of reimbursement from beneficiary to COM The SSUC for the staff costs was assessed and adopted by delegated act. 6
Extracts from the Swedish case: Hourly staff cost Hourly wage group Stockholm (SE 11) (SEK) All regions except Stockholm (SE 12-33) (SEK) 1 237 242 2 266 263 3 307 292 4 349 324 5 433 379 6 574 535 7 A 765 765 7 B 829 647 7 C 543 444 7
Extracts from the Swedish case: Hourly participant cost Activity grant and development allowance (unit cost per hour) (SEK) Age 15-19 years 17 20-24 years 33 25-29 years 51 30-44 years 55 45-69 years 68 8
Article 14(1) ESF - Version 2.0: the "giant leap" The possibility to define by delegated act standard scales of unit costs and lump sums covering all the eligible expenditure of an operation. And the possibility for MS to apply its own accounting practices with the beneficiary. 9
Audit trail 14(1)ESF version 2.0 Operation MS COM Option 1: reimbursed on the basis of the DA by the MA: 6.000 EUR Option 2: reimbursed on the basis of real costs by the MA: 7.000 EUR Option 3: other All costs are declared on the basis of the SSUC of the DA: 6 certified trainee (justified) x 1.000 EUR = 6.000 EUR Same amounts declared and used as a basis of reimbursement from beneficiary MS to COM The SSUC was assessed and adopted by delegated act. 10
Audit trail 14(1)ESF version 2.0 Operation MS COM Option 1: reimbursed on the basis of the DA by the MA: 6.000 EUR Option 2: reimbursed on the basis of real costs by the MA: 7.000 EUR Option 3: other All costs are declared on the basis of the SSUC of the DA: 6 certified trainee (justified) x 1.000 EUR = 6.000 EUR Same amounts declared and used as a basis of reimbursement from beneficiary MS to COM The SSUC was assessed and adopted by delegated act. 11
Audit trail 14(1)ESF version 2.0 Operation MS COM Option 1: reimbursed on the basis of the DA by the MA: 6.000 EUR Option 2: reimbursed on the basis of real costs by the MA: 7.000 EUR Option 3: other All costs are declared on the basis of the SSUC of the DA: 6 certified trainee (justified) x 1.000 EUR = 6.000 EUR Same amounts declared and used as a basis of reimbursement from beneficiary MS to COM The SSUC was assessed and adopted by delegated act. 12
The French case: Young NEET with a positive result under Garantie Jeunes Indicator name Category of costs Measurement unit for the indicator Amounts (in EUR) Young NEET with -allowances paid a positive result to the participant; under Garantie Jeunes at the -activation costs latest 12 months incurred by the following the start "missions locales" of coaching Number of young NEETs who have one of the following results at the latest 12 months following the start of the coaching: entered vocational skills training leading to a certification, whether by: - entering training in lifelong learning; or - entering basic training; 3600 or started a company; or found a job; or has spent at least 80 working days in a (paid or not) professional environment 13
The French YG unit cost NEET signs contract with PES If positive outcome after 12 months eligible to ESF 12 months of coaching by PES 14
The French YG unit cost Found a job Started vocational training 3.600 EUR Started a company 80 days in "work" 15
The French YG unit cost 2.000 EUR allowances to participants (historical data) 1.600 EUR activation measures (national SSUC) 3.600 EUR total cost/neet with positive outcome 16
The calculation methods are similar to the Article 67 CPR - SCOs Ex ante evaluation Fair, Equitable and Verifiable method Use of existing EU schemes (for similar type of operation and beneficiary) Use of existing own national schemes (for similar type of operation and beneficiary) Use of specific rates and methods from the CPR and Fund specific regulations On the basis of a draft budget (ESF, <100.000 EUR of public support) 17
Why should you use Art. 14(1) ESF 2.0? Assurance on methodology More focus on outputs and results Less errors Applicable to more types of operations Reduced scope of financial audit 18
Process of Article 14(1) ESF Identify operations where to apply 14(1)ESF Informal discussions with COM (desk, audit, coordination) Submission of data for consideration Adoption of amendment of DA (at least 2 months from submission of proposal) Objection period for EP and Council (2 months) Entry into force (20 days after publication) 19
Expenditure claimed under Article 14(1) ESF You can declare SSUC under Article 14(1) ESF for: Operations implemented after the entry into force of the DA Operations completed before the entry into force of the DA but not declared to the COM Operations completed and declared to the COM under Article 67 CPR before the entry into force of the DA but before the submission of the final interim payment application (expenditure withdrawn and corrected) 20
State of play of 14(1) ESF applications I: interest : Under discussion : Under adoption 21
All relevant information can be found on http://www.ec.europa.eu/esf/sco 22
Thank you and let's keep in touch! EMPL-SCO-JAP@ec.europa.eu 23