This presentation was made by Anna Swiebocka, Deputy Director, Polish Ministry of Development Funds and Regional Policy. The webinar organised by SIGMA was held on 10 March 2021. Its main objective was to discuss how senior public managers manage the risks associated to public financial management, especially during the COVID-19 pandemic crisis.

1. © OECD
Risk management in times of
COVID-19 and beyond
COVID measures in a EU Funds Operational Programme -
how to manage pandemic and risks at the same time.
Managing Authority’s point of view
Anna Świebocka, Deputy Director in the Polish Ministry of Development
Funds and Regional Policy,
Managing Authority for Smart Growth OP 2014-2020
Virtual event - 10 march 2021

2. 1
Plan of presentation
• General information about Smart Growth OP,
• COVID-19 changes introduced,
• Identified risks for the changes,
• Changes in the procedures and documents

3. 2
Smart Growth Operational Programme
at a glance – facts and figures
• Innovation and R+D support 2014-2020
• 8,5 billion EUR,
• 98% contracted/61% certified to the EC
• 11 800 grant contracts signed,
• Beneficiaries: SME and large companies, universities,
start-ups, bussiness environment
• Grants and financial instruments,
• Dedicated almost 800 mln EUR for COVID support

4. 3
New measures COVID call for
proposals
Changes in the
onging call for
proposals
Changes in the
projects
implementation
Changes in OP
as responce to
COVID-19
EU law – CRII and CRII+ Coronavirus Response Investment Initiative
Polish law – special provisions on EU projects implementation due to COVID

5. New measures
SMEs
Liquidity
Interest 0%
Up to 6 years
500 mln EUR
4200 loans
Max 3,5 mln EUR
Loan
Fund
Medium companies
a decline in turnover of
at least 30%
150 mln EUR out of 300
3500 grants
on Temporary
Framework (max 800
000 EUR)
Grants
for
working
capital
4

6. New measures - RISKS
A. selection of financial
intermediaries
B. irregularities in
granting loans
C. loan default risk
A. control of the
Beneficiary and
intermediaries by MA
B. + C. - control of the
financial intermediaries
by Beneficiary
Loan
Fund
A. granting subsidies to
non-eligible enterprises
B. insufficient control of
applications
A. + B. Control of MA in
IB providing grants
A.+ B. IB on-the-spot
verifications of
individual operations
Grants
for
working
capital
5
No risk of uncompetitive selection of contractors – FI & SCO

7. COVID call for proposals
Enterprises + science
50 mln EUR
Grants
diagnosis, treatment
and counteracting
COVID 19
R+D
Enterprises
15 mln EUR
on Temporary
Framework
investment aid for
infrastructure for the
development, testing,
improvement and
preparation of products
to fight COVID-19
R+D
infrastructure
6

8. COVID call for proposals - RISKS
A. Low quality of calls for proposals,
B. Low quality of applications
accepted,
C. Irregular expenditure due to
insuficient controls of payment
claims or on-the-spot control
A.+B. +C.– MA management control
in IB
C. – IB control in beneficiary – on
documents and on-the-spot
R+D and
infrastructure
7

9. Changes in the on-going calls for
proposals
Panel of experts
working
remotely on
projects
assessment
Digitalisation
submitting
applications
Extention
of
deadlines
8

10. Changes in the on-going calls for
proposals - RISKS
A. granting subsidies
to non-eligible
enterprises
B. insufficient control
of applications
Digitalisation
9
A.+B. control of the
…Beneficiaries by MA
…and IB

11. Changes in the projects
implementation
expences are eligible –
products not delivered and
results not achieved
Eligibility
of
expendit
ure
on the
documents –
not on-the-
spot
Controls
submitting
payment
claims
project
completion
Extention
of
deadlines
10
Assessment of changes, influence of COVID on the project, vis maior
Individual
irregularities caused
by COVID – paid by
state budget
Shared
respons
ibility

12. Changes in the projects
implementation - RISKS
irregular
expenditure due to
insuficient controls
of payment claims
or on-the-spot
control
Eligibility
of
expendit
ure
Management
verifications and
audits might be less
“in depth” because
carried out remotely
and not on-the-spot
Controls
Projects extented will
fail anyway – big
amount of money left
at the end of the
programming period
Payment claims
submitted for smaller
amount
Delays in financing of
the project – money
left
Extention
of
deadlines
11
Assessment of changes, influence of COVID on the project, vis maior
Insuficient control of
Beneficiary may
cause large loss in
state budget
Shared
respons
ibility

13. Changes in the procedures of
MA and IB
Checklists of
payment
claims
Annual
control plan
12
The scope of
controls
Risk analisys of
the Program and of
all the institutions
Control procedures:
2 stages of controls:
- on the documents,
- on the spot,
- mix: on-line on the
spot controls -
recorded
Panels of experts
recorded
COVID justification
assessment

14. Thank you for your attention
in case of any questions or doubts:
anna.swiebocka@mfipr.gov.pl
13