The procedure of programming expenditure – contracts is included in the expenditure forecasts table and the contract forecasts table.
| Expenditure Forecasts Table |
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The expenditure forecasts table for 2005 takes a bottom-up approach from the level of sub-project, project, Measure, Axis and overall programme.
It is divided up per SF (ESF and ERDF) and contains sub-projects which have not been completed and are expected to report expenditure during the year. The table is updated when serious deviations from initial forecasts are noted. It also contains forecasts from various sources for greater certainty about the forecast. The table is a key tool in monitoring expenditure based on the n+2 rule.
Possible exceptions to the rule based on the Priority Regulation afforded to projects or groups of projects with a budget over € 50 000 are examined. Risks of loss of resources are identified and the necessary measures are taken in cooperation with the implementing agency. This table is a key took in framework agreements between the Special Secretariat for the Information Society and project final beneficiaries.
| Contract Forecasts Table |
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Depending on the tender phase and the information obtained from agencies about any delays, the contract forecasts table makes forecasts in relation to three areas: projects which are highly likely to have contracts signed in 2005, projects with average likelihood and projects with low likelihood. Priority is given to tenders for more than € 100 000.
| The n+2 rule |
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The financial obligations which have been undertaken in the budget based on the decision to grant Fund assistance (as shown in the financing tables) should be offset with payments or an acceptable request for payment should be submitted at the end of the 2nd year after the year in which the obligation was undertaken (year n).
The n+2 rule applies to each Fund separately. For example, if the obligations for an Operational Programme for measures co-financed by the ERDF amount to € 100 million in 2003 this amount -via requests for payment- should have been declared to the European Commission as the sum of expenditure for projects co-financed by ERDF by 31.12.2005, Likewise the sum of € 120 million budgeted for 2004 should be ‘absorbed’ by the end of 2006.
| Risk Management |
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It is necessary to stay in constant contact with Final Beneficiaries so ensure that the programme’s physical and financial scope is achieved to the maximum degree.
More specifically,
- High risk project reports – based on the criteria cited for identifying risks, monthly reports are prepared for critical projects. Direct measures are communication with the agency, diagnosing weaknesses and providing the necessary assistance for accelerate sub-project implementation.
- Report generation.
- Updating measure managers - contacting agencies
- Reply sheet [when the portal is completed]
- Letters to agencies [when the portal is completed]