Regulation Regarding the Procedures for Redivision of the Funds Planned in the Programme 80.00.00 of the Department No. 74 "Financing to Be Redivided During the Implementation Process of the Annual State Budget" for Implementation of European Union Policy Instruments and Other Foreign Financial Assistance Projects and Measures

Issued pursuant to
Section 9, Paragraph thirteen, Clause 2 of the
Law On Budget and Financial Management

I. General Provisions

1. This Regulation prescribes the procedures for redivision of the appropriations of the programme 80.00.00 "Undivided Financing for Implementation of European Union Policy Instruments and Other Foreign Financial Assistance Projects and Measures" of the Department No. 74 "Financing to Be Redivided During the Implementation Process of the Annual State Budget" (hereinafter - Programme 80.00.00) in the State budget for the current year, as well as the procedures for redivision of the appropriations from ministries and other State central institutions (hereinafter - ministry) for implementation of European Union policy instruments and other foreign financial assistance projects and measures to the Programme 80.00.00.

2. The ministry shall evaluate the utilisation of the funds allocated in budget programmes in implementation of European Union policy instruments and other foreign financial assistance projects and measures, including projects and measures co-financed within the scope of the climate change financial instrument, (hereinafter - projects), perform the redivision of the financing among projects within the scope of one budget programme (sub-programme) and, where appropriate, submit proposals for redivision of appropriations among programmes, sub-programmes and expenditure codes according to economic categories pursuant to the procedures specified in regulatory enactments, or request additional financing from the Programme 80.00.00 (hereinafter - request of the funds from the State budget).

3. Funds for budget institutions, covering of ineligible costs of European Union policy instruments and other foreign financial assistance projects may be allocated from the funds of the Programme 80.00.00 only in such cases and in such an amount as specified in regulatory enactments or in the project conditions approved by the donor country.

3.¹ Financing from the funds of the Programme 80.00.00 may be allocated to the final beneficiary of the EU funds, which is not a State budget institution, for covering costs for remuneration of the project management staff, which, until 30 June 2010, have occurred according to employment contracts within the scope of Activity 1.1.1.2 "Attraction of Human Resources to Science" and Sub-activity 1.2.1.1.3 "Support to Improvement and Implementation of Primary Vocational Education Programme Quality" of the supplement to the operational programme "Human Resources and Employment".

[20 July 2010]

4. If the request for funds from the State budget exceeds the funds available in the Programme 80.00.00, the Cabinet may take an individual decision on the division of the funds and the criteria for division of the funds of the Programme 80.00.00, observing the priorities specified in the Strategic Development Plan of Latvia 2010-2013.

5. Upon submitting a request for funds from the State budget, the ministry shall ensure entering of the data regarding all European Union policy instruments and other foreign financial assistance in the united State budget planning and implementation information system. The institution responsible for the activity of Objective No. 1 of the European Regional Development Fund, the European Social Fund and the Cohesion Fund or the co-operation institution shall enter the project data in the information system for the management of the European Union Structural Funds and the Cohesion Fund. The Ministry of Finance is entitled not to examine a request for funds from the State budget if data have not been entered in the information systems referred to in this Paragraph.

6. The Ministry of Finance may request the ministry to submit additional information regarding the request of the funds from the State budget in order to evaluate the combined utilisation of public finances.

II. Redivision of Funds for Implementation of European Union Policy Instruments and Other Foreign Financial Assistance Projects

7. The ministry, in the budget of which financing for the implementation of a project is planned, shall prepare and submit to the Ministry of Finance a request for the funds from the State budget for implementation of projects financed from the European Union funds. In preparing the request, a decision or a financing memorandum of the European Commission regarding implementation of the project (for large-scale projects) and data of the information system for the management of the European Union Structural Funds and the Cohesion Fund regarding the financing of the approved project, the fulfilment of the conditions indicated in the decision on approval of the project application, if the decision includes conditions, and other justified considerations shall be taken into account in order to ensure efficient introduction of projects.

8. A request for the funds from the State budget shall be submitted after the responsible institution or the co-operation institution has approved the project application of the European Union fund or amendments to the project of the European Union fund, as well as the final beneficiary has fulfilled the conditions indicated in the decision on approval of the project application, if such were included in the decision.

9. The Ministry of Agriculture shall prepare and submit a request for the funds from the State budget for implementation of projects financed and co-financed by the European Agricultural Guarantee Fund, the European Agricultural Fund for Rural Development and the European Fisheries Fund in the planning period 2007-2013 after the projects of the European Agricultural Fund for Rural Development and the European Fisheries Fund have been approved in the Rural Support Service. If the final beneficiary of the European Agricultural Fund for Rural Development and the European Fisheries Fund is a budget institution, the request for the funds from the State budget referred to in this Paragraph shall be prepared and submitted to the Ministry of Finance along with an opinion of the Ministry of Agriculture by the ministry, to which the budget institution is subordinate, A confirmation shall be provided in the opinion of the Ministry of Agriculture that the project has been approved and the requested financing conforms to the approved project.

10. In conformity with the financial possibilities of the State budget, the Rural Support Service may determine an order for implementation of projects in the case referred to in Paragraph 9 of this Regulation according to the criteria developed by the Ministry of Agriculture.

11. The ministries shall, on the basis of financing contracts, which have been entered into with the managing authorities, and on the basis of the projects approved in an open call by the relevant monitoring committees or joint supervision and management committees of territorial co-operation programmes, prepare a request for the funds from the State budget for the project of Objective No. 3 "European Territorial Co-operation" and submit it to the Ministry of Finance along with an opinion of the Ministry of Regional Development and Local Government. A confirmation shall be provided in the opinion of the Ministry of Regional Development and Local Government that the project has been approved and the requested financing conforms to the approved project.

12. The Ministry of Regional Development and Local Government shall, on the basis of financing contracts, which have been entered into with the managing authorities, and on the basis of the projects approved in an open call by the relevant monitoring committees or joint supervision and management committees of territorial co-operation programmes, prepare a request for the funds from the State budget for a programme financed within the scope of territorial co-operation, technical assistance priority and projects and submit it to the Ministry of Finance.

13. A request for the funds from the State budget for implementation of a programme, grant scheme, individual project or sub-project of the European Economic Area financial instrument and the bilateral financial instrument of the government of Norway (hereinafter - financial instruments) shall be prepared by the ministry, which has been assigned the functions of the manager or the beneficiary of co-financing of the individual project or sub-project or to which the manager or the beneficiary of co-financing of the individual project or sub-project is institutionally subordinate.

14. The ministry shall submit a request for the funds from the State budget to the Ministry of Finance for implementation of programmes, grant schemes or individual projects of the financial programmes referred to in Paragraph 13 of this Regulation, if:

14.1. a grant offer letter has been received regarding the implementation of a programme, grant scheme or individual project and the managing authority has co-ordinated the project implementation plan;

14.2. the manager has approved the sub-project application and the managing authority has been informed regarding the decision taken thereby.

15. The ministry shall prepare a request for the funds from the State budget for implementation of a project financed by other European Union policy instruments and other foreign financial assistance, as well as a project of the climate change financial instrument, and submit it to the Ministry of Finance, observing the conditions of the memorandum (contract).

III. Procedures for Allocation of the Financing Provided for in the Programme 80.00.00

16. A request for the funds from the State budget for implementation of European Union policy instruments and other foreign financial assistance projects or for repayment of funds shall be prepared, observing the requirements specified in the regulatory enactments regarding the relevant type of European Union policy instruments and other foreign financial assistance.

17. In the cases specified in Paragraphs 7, 9, 11, 12, 14 and 15 of this Regulation the ministry shall, once a month (by the first date of the next month), submit to the Ministry of Finance a request for the funds from the State budget separately for each type of European Union policy instruments and other foreign financial assistance, using the forms referred to in Paragraphs 19, 20, 21 and 22 of this Regulation.

18. When submitting a request for the funds from the State budget, the ministry shall enter the data indicated in the forms referred to in Paragraphs 21 and 22 of this Regulation also in the united State budget planning and implementation information system in accordance with the procedures specified by the Ministry of Finance.

19. The ministry shall include the following information in the form "Cash Flow Plan of European Union Policy Instruments and Other Foreign Financial Assistance Projects" (Annex 1):

19.1. the type of European Union policy instruments and other foreign financial assistance (hereinafter - fund), the type of the project (for example, open selection of project applications, restricted selection of project applications, programme, grant scheme, individual project or sub-project), the managing authority, the responsible institution or the intermediate body, the co-operation institution and the paying authority in the planning period 2000-2006 or the planning period 2007-2013;

19.2. the financing planned for the State budget programme, sub-programme, operational programme, priority, measure, activity, sub-activity and project in accordance with the Law On the State Budget for the current year;

19.3. the necessary additional financing from the State budget, as well as financing in total, on the basis of the forecasted cash flow per years until the completion of the project. The ministry shall provide information regarding the financing planned and additionally necessary for the project in division according to eligible costs and the part of ineligible costs, which, in accordance with regulatory enactments, is financed from the funds planned in the Law On the State Budget;

19.4. the title of the operational programme, priority, measure, activity and sub-activity included in the State budget programme and sub-programme;

19.5. the title of the open and restricted selection of project applications, programme, grant scheme, individual project or sub-project or other project; and

19.6. the month when the commencement of payments from the additional financing from the State budget is planned, as well as the final beneficiary.

20. The ministry shall include the following information in the form "Information Regarding the Necessary Additional Financing in the Current Year" (Annex 2):

20.1. the amount of the additional funds from the State budget (grant from general revenue) necessary to the ministry in the current year (the part of the co-financing of the fund, the part of the financing from the State budget) for the project implementation of the relevant fund, advance payments or repayment of funds per State budget programmes, sub-programmes and the operational programmes, priorities, measures, activities and sub-activities included therein;

20.2. the division of the planned total costs, eligible costs and ineligible costs of the additional financing provided for the relevant fund and project necessary for the State budget programme and sub-programme; and

20.3. expenditure for repayment into the State basic budget for the fund expenditure performed, as well as the institution, which performs the repayment of the relevant fund into the State basic budget.

21. The ministry shall include the following information in the form "Itemised List of the State Budget Revenue and Expenditure per Programmes and Sub-programmes" (Annex 3):

21.1. the code and title of the budget programme (sub-programme) approved for the ministry in the Law On the State Budget for the current year;

21.2. the classification code of the government functions;

21.3. the name of the classification code of budgetary revenue and expenditure according to the structure approved in the Law On the State Budget for the current year;

21.4. the plan for the current year approved in the Law On the State Budget for the current year and specified more precisely by orders of the Cabinet and the Ministry of Finance;

21.5. the sum total of the changes to be redivided in appropriations of the State budget and increase or reduction pursuant to the structure approved in the Law On the State Budget for the current year; and

21.6. the calculated amount of appropriations along with the changes to be requested.

22. The ministry shall include the following information in the form "Changes in Long-term Liabilities of the State Budget in Programmes (Sub-programmes)" (Annex 4):

22.1. the code and title of the State budget programme (sub-programme) approved for the ministry in the Law On the State Budget for the current year;

22.2. the name of the classification code of budgetary revenue and expenditure according to the structure approved in the Law On the State Budget for the current year;

22.3. the explication of liabilities in division by projects shall be indicated at the lowest planning level (if the programme has a sub-programme - at the sub-programme level);

22.4. the plan for n-year approved in the Law On the State Budget for the current year;

22.5. the sum total of the changes to be requested in appropriations of the State budget and increase or reduction pursuant to the structure approved for n-year in the Law On the State Budget for the current year; and

22.6. the calculated amount of appropriations along with the changes to be requested for n-year.

23. If a request for the funds from the State budget provided by the ministry conforms to the requirements of this Regulation, the Minister for Finance shall, within 15 working days after the date referred to in Paragraph 17 of this Regulation, issue an order regarding redivision of appropriations, specifying the economic classification codes of the ministry, programme, sub-programme and expenditure.

24. The Ministry of Finance shall send the order of the Minister for Finance regarding redivision of appropriations from the Programme 80.00.00 electronically to the official e-mail address of the ministry and inform the Saeima thereof in an accompanying letter.

25. The ministries shall, within five working days after the issue of the order referred to in Paragraph 24 of this Regulation, in accordance with the procedures specified by the Ministry of Finance, update the data of the order in the united State budget planning and implementation information system, if they differ from the data referred to in Paragraph 18 of this Regulation.

26. If a request for the funds from the State budget does not conform to the requirements of this Regulation or the Programme 80.00.00 does not have the necessary financing, or the financing is not available for a particular objective, observing the decision taken by the Cabinet regarding the division of the funds of the Programme 80.00.00 and the criteria, the Minister for Finance shall, within 10 working days after determination of the referred to facts, send the Ministry an opinion with a decision on refusal of redivision of appropriations.

27. If the ministry does not agree with the decision of the Minister for Finance on the refusal of redivision of appropriations, after receipt of justified objections the Minister for Finance shall, within five working days, reach an agreement with the relevant ministry regarding the further progress of the request for the funds from the State budget. If such an agreement is not reached, the ministry, which has submitted the request, may submit the matter for taking a decision in the Cabinet.

28. In determining the maximum admissible amount of expenditure for the ministry for the next year, the Ministry of Finance shall take into account the redivision of the funds from the Programme 80.00.00 and to the Programme 80.00.00 performed in the current year, if the redivision of the funds has a financial effect on subsequent years.

IV. Redivision of Funds from the Ministry Budget to the Programme 80.00.00

29. If the financing is planned in the ministry budget for projects of a specific measure, activity, sub-activity of the fund or other projects, however, another ministry is responsible in general for the financial management of the measure, activity, sub-activity or other fund projects of the relevant European Union funds of Objective No. 1 (hereinafter - responsible institution), the ministry, in the budget of which funds are planned, shall redivide the funds for other project of the ministry thereof after co-ordination with the responsible institution, as well as prepare proposals regarding redivision of the funds to the Programme 80.00.00, adding a relevant opinion of the responsible institution.

30. In order to ensure as efficient utilisation of the anticipated funds from the State budget as possible in full amount, the financing of the State budget allocated for European Union policy instruments and other foreign financial assistance projects may be redivided from the budget of the ministry to the Programme 80.00.00, if all of the following conditions have been met successively:

30.1. the utilisation of the financing within the scope of the project in the current year is impossible due to objective reasons (for example, the costs of activities intended in the project have reduced, the procurement procedure is delayed due to the complaints submitted, the implementation of the project is delayed due to reorganisation of the final beneficiary);

30.2. the utilisation of the financing in the current year is impossible for implementation of another project of the relevant ministry within the scope of the same fund or the responsible institution has an objection to redivision of the referred to funds to another project;

30.3. the utilisation of the financing in the current year is impossible within the scope of another fund project specified in this Regulation fund or the Responsible Institution objects against redivision of the referred to funds to a project of another fund.

31. The ministry shall three times a year - by 31 July, 1 October and 15 November - prepare justified proposals regarding redivision of appropriations from the ministry budget to the Programme 80.00.00, confirming in a letter that the conditions referred to in Paragraph 30 of this Regulation have been evaluated, and shall submit them to the Ministry of Finance, using the forms referred to in Paragraphs 19, 21 and 22 of this Regulation.

32. In submitting a request for redivision of appropriations from the ministry budget to the Programme 80.00.00, the data indicated in the forms referred to in Paragraphs 21 and 22 of this Regulation shall also be entered in the united State budget planning and implementation information system in accordance with the procedures specified by the Ministry of Finance.

33. The Ministry of Finance shall, within 15 working days, evaluate the proposals submitted regarding redivision of appropriations from the ministry budget to the Programme 80.00.00, and the Minister for Finance shall issue a relevant order.

34. The Ministry of Finance shall send the order of the Minister for Finance regarding redivision of appropriations from the ministry budget to the Programme 80.00.00 electronically to the official e-mail address of the ministry and inform the Saeima thereof in an accompanying letter.

35. The ministries shall, within five working days after issue of the order referred to in Paragraph 34 of this Regulation in accordance with the procedures specified by the Ministry of Finance, update the data of the order in the united State budget planning and implementation information system, if they differ from the data referred to in Paragraph 32 of this Regulation.

V. Closing Provisions

36. Cabinet Regulation No. 430 of 10 June 2008, Regulation Regarding Redivision of the Funds Planned in the Budget Sub-programme of the Ministry of Finance "Financing for the Implementation of European Union Policy Instruments and Other Foreign Financial Assistance Projects and Measures" (Latvijas Vēstnesis, 2008, No. 98, 167), is repealed.

37. In order to ensure the compliance of the united State budget planning and implementation information system with the requirements of this Regulation, the ministries shall commence the entering of the data indicated in the forms referred to in Paragraphs 21 and 22 of this Regulation in the united State budget planning and implementation information system on the date specified by the Ministry of Finance.

Acting for the Prime Minister -
Minister for Finance E. Repše

Minister for Economics A. Kampars

Annex 1
to Cabinet Regulation No. 464
of 18 May 2010

Cash Flow Plan of the European Union Policy Instruments and Other Foreign Financial Assistance Projects

in lats

Notes.

1. * Information regarding the planning period 2000-2006 and the planning period 2007-2013 shall be prepared in accordance with the division indicated in Annex 2.

2. ** Updated in accordance with the changes approved by orders of the Cabinet and the Ministry of Finance.

3. *** Table shall be supplemented with columns to the right, providing information separately regarding each year until the implementation of the project.

____ ______________ 20___ (date)

The details of the document "signature" and "date" shall not be completed if the electronic document has been drawn up in conformity with the regulatory enactments regarding drawing up of electronic documents.

Minister for Economics A. Kampars

Annex 2
to Cabinet Regulation No. 464
of 18 May 2010

Information Regarding the Necessary Additional Financing in the Current Year

Notes.

1. * Request for a fund shall be prepared separately for the planning period 2000-2006 and the planning period 2007-2013.

2. ** The particular operational programme included in the budget programme should be indicated only for the planning period 2007-2013.

____ ______________ 20___ (date)

The details of the document "signature" and "date" shall not be completed if the electronic document has been drawn up in conformity with the regulatory enactments regarding drawing up of electronic documents.

Minister for Economics A. Kampars

Annex 3
to Cabinet Regulation No. 464
of 18 May 2010

Itemised List of State Budget Revenue and Expenditure per Programmes and Sub-programmes

in lats

____ ______________ 20___ (date)

The details of the document "signature" and "date" shall not be completed if the electronic document has been drawn up in conformity with the regulatory enactments regarding drawing up of electronic documents.

Minister for Economics A. Kampars

Annex 4
to Cabinet Regulation No. 464
of 18 May 2010

Changes in Long-term Liabilities of the State Budget in Programmes (Sub-programmes)

in lats

Note. * Information in the annex to liabilities shall be prepared in accordance with the relevant structure of the annex to liabilities approved by the Law On the State Budget for the current year.

20___.gada_____________________________

The details of the document "signature" and "date" shall not be completed if the electronic document has been drawn up in conformity with the regulatory enactments regarding drawing up of electronic documents.

Minister for Economics A. Kampars

Translation © 2011 Valsts valodas centrs (State Language Centre)