A recent audit has been initiated to assess compliance with the “BG16RFOP002-2.040” program for improving production capacity in small and medium-sized enterprises. Numerous beneficiaries under this program have received notifications from the Managing Authority.
As a reminder, a total of 489 grant agreements were signed under this program, amounting to 212,146,413.46 leva in total funding.
The audit is focused on verifying compliance with four mandatory individual indicators specified in the grant agreements:
- Internal rate of return
- Increase in productivity
- Change in average export revenue generated as a result of the project investment
- Increase in the efficiency of production costs
To assess the actual achievement of these indicators, the Managing Authority has requested that beneficiaries provide certain information, while other data will be obtained through official channels.
Beneficiaries found to be in serious non-compliance with these indicators may face financial corrections, requiring the return of a portion of the grant. The amount of the correction will depend on the extent to which the weighted average value of the indicators has been achieved, ranging from 5% to 50% of the total grant.
This audit by the Ministry of Innovation and Growth is largely linked to recent amendments to the Regulation on the identification of irregularities constituting grounds for financial corrections and the percentage rates for determining the amount of financial corrections under the Law on the Management of Funds from the European Funds under Shared Management. The primary objective of these amendments is to specify the main types of irregularities and the corresponding percentage rates for financial corrections.
Despite efforts to update and align the Regulation with European and national legislation, and to incorporate lessons learned from previous programming periods, there is still significant controversy regarding the applicability and correct calculation of financial corrections.
Understanding the applicable legislation, including secondary legislation, is crucial for developing a suitable strategy and timely response to any financial correction notices.
To protect the interests of beneficiaries, experts from Veliinov & Partners Consulting, with proven professional experience and qualifications, can provide comprehensive assistance in cases where financial correction procedures have been initiated. We are pleased to share our experience and expertise to support you.
