Italy: ERDF Campania ROP - Suspension of deadline for payment

Subject: Italy: ERDF Campania ROP - Suspension of deadline for payment

The audit of the ERDF Regional Operation Programme for Campania performed by the Commission in June revealed significant shortcomings in the functioning of the management and audit system for the programme.

The response of the Region’s management authority to that analysis has not been regarded as satisfactory: the auditors consider that many of the shortcomings identified have remained unresolved. By means of a note of 13 December 2018, therefore, the Director-General for Regional Policy suspended payments for the ERDF Campania ROP 2014-2020.

The weaknesses identified relate mainly to the appropriate selection of operations, appropriate checks on management, a reliable data collection, recording and storage system for monitoring purposes, evaluation, financial management, verifications and audits, including links with electronic systems for exchanging data with beneficiaries: this suggests that the Region was not meticulous in performing the checks provided for by EU Regulations.

The crucial point is that, in December, the Region had certified expenditure totalling 651 million (boasting that the target for 2018 had been attained in record time), to avoid losing funds.

1. To what extent do the irregularities that have been observed affect the entire certified expenditure?

2. In view of the Region’s position and the non-conformities identified by the Commission, what is the actual situation now?

Answer given by Ms Creţu on behalf of the European Commission

(24 May 2019)

An audit of the European Regional Development Fund Regional Operational Programme for Campania 2014-2020 was performed by the Commission in June 2018 and revealed significant shortcomings in the functioning of the management and audit system for the programme. Following the Management Authority’s first responses by means of letters dated 13 December 2018 and 25 January 2019, the Commission interrupted the payment deadline for interim payment claims for this programme. The Commission requested the programme authorities to put in place adequate corrective measures to address the weaknesses identified so to ensure that all expenditure declared to the Commission is legal and regular. The programme authorities were requested to take measures to strengthen the management and control system of the programme to avoid that any future expenditure declared to the Commission is irregular.

Following further communications from the Managing Authority to the Commission, and after assessing the corrective measures put in place by the programme authorities as well as the measures taken to improve the management and control system as satisfactory, the Commission ended the interruption of payments for this programme by means of a letter dated 10 April 2019 The processing of the pending payment requests could hence start.

This issue has had no effect on the amount of expenditure certified, which was sufficient to reach the target of expenditure for the end of 2018 for this Operational Programme.