The information contained in this section has been provided by the national authority in June 2019. We invite you to contact your national contact point to check whether this information is the latest version available.
National Contact Point
SHORT DESCRIPTION OF THE NATIONAL FLC SYSTEM
Malta has opted for a decentralised system, in which the project partner’s proposal of an auditor is authorized by the Funds and Programmes Division (FPD) within the Ministry for European Affairs and Equality. In this regard, the FPD is responsible for the FLC system. The FLC may be internal or external, depending on the beneficiary’s choice.
If an internal auditor is chosen by the beneficiary, the controller should be independent from the unit in charge of the project’s finances and activities. On the other hand, if the beneficiary opts for an external auditor, such auditor should be selected by the beneficiary through an open call for quotations / tender, in line with the national procurement regulations. The external auditor must be included on the list of Maltese Registered Auditors.
The costs are born by the controlled partner and can be declared as cost in the framework of the project..
Other checks performed by the national authority
The Territorial Cooperation Unit (TCU) within the Funds and Programmes Division (FPD) may also carry out physical on-the-spot monitoring checks on the projects financed under such programmes in order to verify the results delivered. The outcome of such checks will be forwarded to the respective entity for its comments and eventual endorsement. Any possible financial irregularities are registered in an Irregularity report and shared with the JS.
Moreover the Financial Control Unit (FCU) within the Funds and Programmes Division performs Quality Checks on the FLC. Selection of FLCs and costs is based on a risk analysis assessment exercise. A Quality Check report is issued and any financial irregularities identified are listed in a dedicated irregularity report and shared with the JS.
Daily allowances concerning travel and accommodation costs are applicable in Malta.
National rules on eligibility of expenditure are defined on:
According to national guidelines, public entities must follow the following list of per diem allowance for overseas duty travel:
- Per Diem Rates as from 1st November 2017 (Official Travelling is an official travel duty such as conferences, attendance at selection boards and overseas external training of a duration not exceeding 15 consecutive days): https://eufunds.gov.mt/en/EU%20Funds%20Programmes/Funds%20and%20Programmes%20Division/Documents/General%20Per%20diem%20rates/as%20from%201st%20Nov%202017/PerDiemRates_November_17.pdf
- Overseas Training Subsistence Allowance as from 1st November 2017 (For Training (equivalent to overseas external training) one has to apply a different rate where the duration of the overseas training lasts longer than fifteen (15) consecutive days): https://eufunds.gov.mt/en/EU%20Funds%20Programmes/Funds%20and%20Programmes%20Division/Documents/General%20Per%20diem%20rates/as%20from%201st%20Nov%202017/TrainingRates_November_17.pdf
Non-public entities are to follow the Commission’s per diem rates available on:
National automatic co-financing
There is a national automatic co-financing system put in place in Malta for Public Entities.
It is important to note that as a general rule, the funds are received on a reimbursement basis, i.e. any advance payments granted under Territorial Cooperation Programmes is not automatic. Financing from the ERDF may amount to 85% of the total budgetary allocation. The remaining amount has to be provided by each partner participating in the project through other means of financing (either internal or external). In line with MFIN circular 5 of 2014 which provides guidance on particular national financial procedures to Ministries and Departments participating in European Territorial Cooperation Programmes, the Government of Malta provides the necessary funds for the full implementation of the project. Moreover, NGOs and Local Authorities may also apply for the necessary co financing share or part of it through a separate mechanism.
Malta applies specific rules concerning public procurement. In the case of public entities, the following national rules are applicable: L.N. 352 of 2016 and to its subsidiary legislation L.N. 26 of 2018.
In the case of non-public entities, they have to follow the spirit of the public procurement legislations.
From time to time the National Contact Point issues circulars and instructions which are published on: https://eufunds.gov.mt/en/EU%20Funds%20Programmes/EU%20Territorial%20Programmes/Pages/Circulars.aspx
Link to the national rules applicable:
- Public Procurement Regulations: http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9532&l=1
- Financial Administration And Audit Act: http://justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28893&l=1
KEY NATIONAL DOCUMENTS
1) National Complementary Requirements and annexes:
2) In case of financial corrections to be applied, Malta recommends to use the following guidelines:
COCOF Guidelines, Malta recommends to FLCs to apply COCOF guidelines in case of financial corrections to be applied: https://ec.europa.eu/regional_policy/sources/docgener/informat/2014/GL_corrections_pp_irregularities_annex_EN.pdf
3) Financial corrections related to visibility – Included in "National Complementary Requirements and annexes", under Section 6.