This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents

setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 ( 1 ), and in particular Article 37(1)(d), the third paragraph of Article 44, Articles 59(6), 60(b) and 66(3), Article 67(2)(c), Articles 69(1), 70(3), 71(5), 72(2), 74(2) and 76(4) and the second subparagraph of Article 99(5) thereof,

Having regard to Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999 ( 2 ), and in particular the second subparagraph of Article 7(2) and the second paragraph of Article 13 thereof,

Whereas:

(1)

Regulation (EC) No 1083/2006 replaces Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds ( 3 ), and Regulation (EC) No 1080/2006 replaces Regulation (EC) No 1783/1999 of the European Parliament and of the Council of 12 July 1999 on the European Regional Development Fund ( 4 ), both Regulations taking into account new developments in the field of Structural Funds. It is therefore appropriate also to lay down new provisions implementing Regulations (EC) No 1080/2006 and (EC) No 1083/2006.

(2)

Experience has shown that citizens of the European Union are insufficiently aware of the role played by the Community in funding programmes aimed at reinforcing economic competitiveness, creating jobs and strengthening internal cohesion. It is therefore appropriate to provide for the preparation of a communication plan which identifies in detail the information and publicity measures necessary to bridge this communication and information gap. For the same purpose, it is also necessary to identify the responsibilities and the roles that should be played by each of the actors involved.

(3)

In order to guarantee that information on possible funding opportunities is disseminated widely to all interested parties and for the sake of transparency, the minimum content of the information measures needed to inform potential beneficiaries about the financing opportunities offered jointly by the Community and the Member States through the Funds should be set out, including an obligation to publicise the steps that a potential beneficiary should take to submit an application for funding and the selection criteria that will be used.

(4)	In order to enhance transparency regarding use of the Funds, the list of beneficiaries, the names of the operations and the amount of public funding allocated to operations should be published, electronically or otherwise.

(5)

In order to ensure a better implementation of the information measures and to allow a better exchange of information between the Member States and the Commission on the information and publicity strategies and results, contact persons responsible for the information and publicity measures should be designated and should participate in appropriate Community networks.

(6)

For the purposes of Articles 37 and 67 of Regulation (EC) No 1083/2006, it is necessary to lay down detailed rules and categories to allow the Member States to submit to the Commission uniform information on the programmed use of the Funds, as well as information on the cumulative allocation of the Funds by categories throughout the life of a programme, and to enable the Commission to inform the other Institutions and the citizens of the European Union in an appropriate manner about the use of the Funds, including the achievement of the targets set out in Article 9(3) of Regulation (EC) No 1083/2006.

(7)

With regard to Article 60 of Regulation (EC) No 1083/2006 and in the light of the experience gained, it is necessary to lay down the obligations which the managing authorities should have with regard to beneficiaries in the phase leading to the selection and approval of the operations to be funded, with regard to the aspects which the verifications of the expenditure declared by the beneficiary should cover, including administrative verifications of the applications for reimbursement, and on-the-spot verifications of individual operations and with regard to the conditions to be observed when on-the-spot verifications are carried out on a sample basis.

(8)	It is also necessary to set out in detail the information which should be included in the accounting records of operations and the information to be kept as data on implementation which the managing authorities should record, store and send to the Commission upon request.

(9)	In order to ensure that expenditure under operational programmes can be properly audited, it is necessary to set out the criteria with which an audit trail should comply so as to be considered adequate.

(10)

The audit of operations is carried out under the responsibility of the audit authority. To ensure that the scope and effectiveness of those audits are adequate and that they are carried out according to the same standards in all Member States, it is necessary to set out the conditions which those audits should fulfil.

(11)

Experience has shown that it is necessary to set out in detail the basis for the sampling of operations to be audited, which the audit authority should observe in establishing or approving the sampling method, including certain technical criteria to be used for a random statistical sample and factors to be taken into account for a complementary sample.

(12)

In order to simplify and harmonise standards for the preparation and presentation of the audit strategy, the annual control report and the closure declarations for which the audit authority is responsible pursuant to Article 62 of Regulation (EC) No 1083/2006, it is necessary to make detailed provision about their content and specify the nature and quality of the information on which they rely.

(13)

In order to ensure the most effective application of Article 90 of Regulation (EC) No 1083/2006 with regard to the availability of documents and the right of the Court of Auditors and the Commission to have access to all supporting documents regarding expenditure and audits, managing authorities should ensure that information on the identity and location of the bodies holding the supporting documents is readily available and those documents should be readily supplied to a minimum list of persons and bodies. For the same purpose, it is necessary to set out which data carriers can be considered as commonly accepted for the purpose of keeping such documents. To this end, the national authorities should lay down the procedures necessary to ensure that the documents kept are in conformity with the originals, when this is relevant, and can be relied on for audit purposes.

(14)

In order to harmonise standards for the certification of expenditure and for the preparation of applications for payments, the content of such certificates and applications should be laid down and the nature and quality of the information on which they rely specified. Detailed procedures should be set out for keeping, in accordance with Article 61(f) of Regulation (EC) No 1083/2006, an account of amounts recoverable and of amounts withdrawn following cancellation of all or part of the contribution for an operation and for informing the Commission accordingly.

(15)

Pursuant to Article 71 of Regulation (EC) No 1083/2006, the Member States are, before the submission of the first interim application for payment or at least within twelve months of the approval of each operational programme, to submit to the Commission a description of the management and control systems, a report setting out the results of an assessment of the systems set up and an opinion on their compliance with the provisions of that Regulation on management and control systems. Since those documents are among the principal elements on which the Commission relies, in the context of the shared management of the Community budget, to satisfy itself that the financial assistance concerned is used by the Member States in accordance with the applicable rules and principles necessary for protecting the Community's financial interests, it is necessary to set out in detail the information that such documents should contain and the basis for the assessment and the opinion.

(16)

Operational programmes funded under the European territorial cooperation objective referred to in Article 3 of Regulation (EC) No 1083/2006 are presented by two or more Member States and have specific features, which are laid down in Regulation (EC) No 1080/2006. It is therefore appropriate to set out the specific information which the description of the management and control system for those programmes should contain.

(17)

Article 74 of Regulation (EC) No 1083/2006 provides, inter alia, that for operational programmes for which the total eligible public expenditure does not exceed EUR 750 million and for which the level of Community co-financing does not exceed 40 % of the total public expenditure, a Member State may choose to rely more on national bodies and rules for carrying out certain functions related to the control and audit requirements. It is therefore necessary to set out which verifications, which audits of operations and which obligations can be carried out and executed according to national rules and by national bodies.

(18)

As part of their management and control obligations Member States are required to report and monitor irregularities. Detailed rules to implement that requirement were laid down in Commission Regulation (EC) No 1681/94 of 11 July 1994 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies and the organisation of an information system in this field ( 5 ), and Commission Regulation (EC) No 1831/94 of 26 July 1994 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the Cohesion Fund and the organisation of an information system in this field ( 6 ). It is appropriate, for reasons of clarity and simplification, to incorporate those rules into this Regulation.

(19)

Provision should be made for the Commission to reimburse judicial costs when it requests a Member State to initiate or continue legal proceedings with a view to recovering amounts unduly paid following an irregularity, and for it to be supplied with information enabling it to decide on the apportionment of the loss from irrecoverable amounts pursuant to Article 70(2) of Regulation (EC) No 1083/2006. Regular contact should also be provided for between the Commission and the Member States on the subject of irregularities, for the use of the information supplied for making risk analyses and compiling reports, and for the provision of information to the relevant committees.

(20)

In order to limit the administrative burden imposed by the reporting system while safeguarding the necessary level of information, Member States should, without prejudice to the obligations arising directly from Article 61(f) of Regulation (EC) No 1083/2006, not be obliged to report irregularities involving amounts below a certain threshold unless the Commission expressly so requests.

(21)

In the light of Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data ( 7 ) and Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data ( 8 ), it is necessary to provide, in relation to the information and publicity measures and the audit work pursuant to this Regulation, that the Commission and the Member States should prevent any unauthorised disclosure of or access to personal data, and to specify the purpose for which the Commission and the Member States can process such data.

(22)

For reasons of legal certainty and of equal treatment of all Member States, it is necessary to fix the rate applicable to the financial correction which the Commission may make when a Member State does not comply with its obligation to maintain in all the regions concerned during the programming period an agreed target level of public or equivalent structural expenditure. For reasons of simplification and proportionality, no financial correction should be applied if the difference between the agreed target level and the level achieved is equal to or less than 3 % of the agreed target level (de minimis threshold); for the same reasons, when the difference between the two levels is higher that 3 % of the agreed target level, the rate should be calculated by subtracting that de minimis threshold.

(23)

The use of electronic means for the exchange of information and financial data leads to simplification, increased efficiency and transparency and to savings in time. In order to exploit these advantages fully, while preserving the security of exchanges, a common computer system should be established as well as a list of documents of common interest to the Commission and the Member States. It is therefore necessary to specify the format each document should have and to provide a detailed description of the information such documents should contain. For the same reasons, it is necessary to specify how such a computer system functions with regard to the identification of the party responsible for uploading the documents and any updates thereto.

(24)

In the framework of Directive 1999/93/EC of the European Parliament and of the Council of 13 December 1999 on a Community framework for electronic signatures ( 9 ), taking account of the level of security and confidentiality required for the financial management of the use of the Funds, of the state of the art and of a cost-benefit analysis, it is necessary to require the use of an electronic signature.

(25)

In order to ensure the quick development and proper functioning of the common computer system, the cost of its development should be financed by the budget of European Communities pursuant to Article 45 of Regulation (EC) No 1083/2006, and the costs of the interface with national, regional, and local computer systems should be eligible for a financial contribution from the funds pursuant to Article 46 of the same Regulation.

(26)

Building on the experience of the 2000-2006 programming period, it is necessary to set out in detail the conditions which financial engineering instruments should fulfil to be funded under an operational programme, it being understood that contributions to financial engineering instruments from the operational programme and other public sources, as well as the investments made by financial engineering instruments in individual enterprises, are subject to the rules on State aid including the Community Guidelines on State aid to promote risk capital investments in small and medium- sized enterprises ( 10 ).

(27)

It is necessary to adopt the list of criteria to be used for identifying the areas where expenditure on housing can be eligible for a contribution from the European Regional Development Fund pursuant to Article 7(2) of Regulation (EC) No 1080/2006 and the list of eligible interventions. Given the diversity of the situations prevailing in the Member States concerned, it is appropriate to establish a list of criteria for identifying the areas experiencing or threatened by physical deterioration and social exclusion where investment in housing may be eligible for co-financing. It is also appropriate to set out that, in the case of multi-family housing or housing designated for low-income households or people with special needs, the interventions eligible for co-financing should be those aimed at renovating the common parts of multi-family residential buildings or at delivering modern social housing of good quality through investing in the renovation and change of use of existing buildings owned by public authorities or non-profit operators.

(28)

Article 56(4) of Regulation (EC) No 1083/2006 provides that rules on the eligibility of expenditure are to be laid down at national level, subject to the exceptions provided in the specific regulations for each Fund. With regard to Article 13 of Regulation (EC) No 1080/2006, common rules on the eligibility of expenditure should be laid down which are applicable to operational programmes under the European territorial cooperation objective in order to ensure consistency between the rules applicable to projects implemented in different Member States. Building upon experience with similar programmes in the programming period 2000-2006, it is appropriate to lay down common rules for the categories of expenditure for which national rules are most likely to differ. In order to reduce the administrative burden on beneficiaries and programme authorities, flat rates for overheads should under certain conditions be eligible.

(29)

Regulations (EC) No 1681/94 and (EC) No 1831/94 as well as Commission Regulations (EC) No 1159/2000 of 30 May 2000 on information and publicity measures to be carried out by the Member States concerning assistance from the Structural Funds ( 11 ), (EC) No 1685/2000 of 28 July 2000 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards eligibility of expenditure of operations co-financed by the Structural Funds ( 12 ), (EC) No 438/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the management and control systems for assistance granted under the Structural Funds ( 13 ), (EC) No 448/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the procedure for making financial corrections to assistance granted under the Structural Funds ( 14 ), (EC) No 1386/2002 of 29 July 2002 laying down detailed rules for the implementation of Council Regulation (EC) No 1164/94 as regards the management and control systems for assistance granted from the Cohesion Fund and the procedure for making financial corrections ( 15 ), (EC) No 16/2003 of 6 January 2003 laying down special detailed rules for implementing Council Regulation (EC) No 1164/94 as regards eligibility of expenditure in the context of measures part-financed by the Cohesion Fund ( 16 ) and (EC) No 621/2004 of 1 April 2004 laying down rules for implementing Council Regulation (EC) No 1164/94 as regards information and publicity measures concerning the activities of the Cohesion Fund ( 17 ) should be repealed.

(30)	The measures provided for in this Regulation are in accordance with the opinion of the Coordination Committee of the Funds,

HAS ADOPTED THIS REGULATION:

This Regulation lays down rules for the implementation of Regulation (EC) No 1083/2006 and Regulation (EC) No 1080/2006 as regards the following:

1. A communication plan, as well as any major amendments to it, shall be drawn up by the managing authority for the operational programme for which it is responsible or by the Member State to cover several or all operational programmes co-financed by the European Regional Development Fund (ERDF), the European Social Fund (ESF) or the Cohesion Fund.

The Member State or the managing authority shall submit the communication plan to the Commission within four months of the date of adoption of the operational programme or, where the communication plan covers two or more operational programmes, of the date of adoption of the last of these operational programmes.

In the absence of observations made by the Commission within two months of receipt of the communication plan, the plan shall be deemed to comply with Article 2(2).

If the Commission sends observations within two months of receipt of the communication plan, the Member State or the managing authority shall within two months send a revised communication plan to the Commission.

In the absence of further observations by the Commission within two months of submission of a revised communication plan, it shall be considered that the communication plan may be implemented.

The Member State or the managing authority shall commence the information and publicity activities provided for in Articles 5, 6 and 7, where relevant, even in the absence of the final version of the communication plan.

1. The managing authority shall inform the monitoring committee for each operational programme of the following:

The managing authority shall provide the monitoring committee with examples of such measures.

2. The annual reports and the final report on implementation of an operational programme, referred to in Article 67 of Regulation (EC) No 1083/2006, shall include:

The annual implementation report for the year 2010 and the final implementation report shall contain a chapter assessing the results of the information and publicity measures in terms of visibility and awareness of operational programmes and of the role played by the Community, as provided for in Article 2(2)(e).

3. The means used for implementing, monitoring and evaluating the communication plan shall be proportional to the information and publicity measures identified in the communication plan.

1. The managing authority shall, in accordance with the communication plan, ensure that the operational programme is disseminated widely, with details of the financial contributions from the Funds concerned, and that it is made available to all interested parties.

It shall in addition ensure that information on the financing opportunities offered by joint assistance from the Community and the Member State through the operational programme is disseminated as widely as possible.

2. The managing authority shall provide potential beneficiaries with clear and detailed information on at least the following:

In addition, the managing authority shall inform potential beneficiaries of the publication provided for in Article 7(2)(d).

3. The managing authority shall involve in information and publicity measures, in accordance with national laws and practices, at least one of the following bodies that can widely disseminate the information listed in paragraph 2:

The managing authority shall inform beneficiaries that acceptance of funding is also an acceptance of their inclusion in the list of beneficiaries published in accordance with Article 7(2)(d).

Responsibilities of the managing authority relating to information and publicity measures for the public

1. The managing authority shall ensure that the information and publicity measures are implemented in accordance with the communication plan and that they aim at the widest possible media coverage using various forms and methods of communication at the appropriate territorial level.

2. The managing authority shall be responsible for organising at least the following information and publicity measures:

Responsibilities of beneficiaries relating to information and publicity measures for the public

1. The beneficiary shall be responsible for informing the public, by means of the measures laid down in paragraphs 2, 3 and 4, about the assistance obtained from the Funds.

2. The beneficiary shall put up a permanent explanatory plaque that is visible and of significant size no later than six months after completion of an operation that fulfils the following conditions:

The plaque shall state the type and name of the operation, in addition to the information referred to in Article 9. ►M1 The information referred to in Article 9 shall take up at least 25 % of the plaque. ◄

Where it is not possible to place a permanent explanatory plaque on a physical object as referred to in point (b) of the first subparagraph, other appropriate measures shall be taken in order to publicise the Community contribution.

3. The beneficiary shall, during the implementation of the operation, put up a billboard at the site of each operation which fulfils the following conditions:

The information referred to in Article 9 shall take up at least 25 % of the billboard.

When the operation is completed, the billboard shall be replaced by the permanent explanatory plaque referred to in paragraph 2.

4. Where an operation receives funding under an operational programme co-financed by the ESF and, in appropriate cases, where an operation receives funding under the ERDF or the Cohesion Fund, the beneficiary shall ensure that those taking part in the operation have been informed of that funding.

The beneficiary shall provide clear notice to the effect that the operation being implemented has been selected under an operational programme co-financed by the ESF, the ERDF or the Cohesion Fund.

Any document, including any attendance or other certificate, concerning such an operation shall include a statement to the effect that the operational programme was co-financed by the ESF or, where appropriate, the ERDF or the Cohesion Fund.

Technical characteristics of information and publicity measures for the operation

All information and publicity measures provided by managing authorities or beneficiaries and aimed at beneficiaries, potential beneficiaries and the public shall include the following:

Where an information or publicity measure promotes several operations co-financed by more than one Fund, the reference provided for in point (b) of the first paragraph shall not be required.

1. Each managing authority shall designate the contact persons to be responsible for information and publicity and shall inform the Commission accordingly. In addition, Member States may designate a single contact person for all operational programmes.

2. Community networks comprising the persons designated under paragraph 1 may be set up to ensure exchanges of good practice, including the results of implementation of the communication plan, and exchanges of experience in implementing the information and publicity measures under this Section.

3. Exchanges of experience in the field of information and publicity may be supported through technical assistance pursuant to Article 45 of Regulation (EC) No 1083/2006.

1. Member States shall submit to the Commission the indicative breakdown by category of the programmed use of the Funds at operational programme level, as referred to in Article 37(1)(d) of Regulation (EC) No 1083/2006 and Article 12(5) of Regulation (EC) No 1080/2006, in accordance with Parts A and B of Annex II to this Regulation.

2. The annual and final implementation reports referred to in Article 67 of Regulation (EC) No 1083/2006 shall contain updated information at operational programme level on the cumulative allocation of the Funds by categories, as from the start of the operational programme, to the operations selected under the operational programme, presented for each combination of codes, in accordance with Parts A and C of Annex II to this Regulation.

3. The data provided by Member States pursuant to paragraphs 1 and 2 shall be used by the Commission only for information purposes.

Where one or more of the tasks of a managing authority or certifying authority are performed by an intermediate body, the relevant arrangements shall be formally recorded in writing.

The provisions of this Regulation concerning the managing authority and certifying authority shall apply to the intermediate body.

1. For the purposes of the selection and approval of operations pursuant to Article 60(a) of Regulation (EC) No 1083/2006, the managing authority shall ensure that beneficiaries are informed of the specific conditions concerning the products or services to be delivered under the operation, the financing plan, the time-limit for execution and the financial and other information to be kept and communicated.

It shall satisfy itself that the beneficiary has the capacity to fulfil these conditions before the approval decision is taken.

The verifications to be carried out by the managing authority pursuant to Article 60(b) of Regulation (EC) No 1083/2006, or by the relevant controllers designated by Member States in the case of the European territorial cooperation objective programmes pursuant to Article 16 of Regulation (EC) No 1080/2006, shall cover, as appropriate, administrative, financial, technical and physical aspects of operations.

Verifications shall ensure that the expenditure declared is real, that the products or services have been delivered in accordance with the approval decision, that the applications for reimbursement by the beneficiary are correct and that the operations and expenditure comply with Community and national rules. They shall include procedures to avoid double-financing of expenditure with other Community or national schemes and with other programming periods.

3. Where on-the-spot verifications pursuant to point (b) of the third subparagraph of paragraph 2 are carried out on a sample basis for an operational programme, the managing authority, or the relevant controllers in the case of European territorial cooperation objective programmes, shall keep records describing and justifying the sampling method and identifying the operations or transactions selected for verification.

The managing authority, or the relevant controllers in the case of European territorial cooperation objective programmes, shall determine the size of the sample in order to achieve reasonable assurance as to the legality and regularity of the underlying transactions, having regard to the level of risk identified by the managing authority, or the relevant controllers as appropriate, for the type of beneficiaries and operations concerned. The managing authorities or the relevant controllers shall review the sampling method each year.

4. The managing authority, or the relevant controllers in the case of European territorial cooperation objective programmes, shall establish written standards and procedures for the verifications carried out pursuant to paragraph 2 and shall keep records for each verification, stating the work performed, the date and the results of the verification, and the measures taken in respect of irregularities detected.

5. Where the managing authority is also a beneficiary under the operational programme, arrangements for the verifications referred to in paragraphs 2, 3 and 4 shall ensure adequate separation of functions in accordance with Article 58(b) of Regulation (EC) No 1083/2006.

1. The accounting records of operations and the data on implementation referred to in Article 60(c) of Regulation (EC) No 1083/2006 shall include the information set out in Annex III to this Regulation.

The managing, certifying and audit authorities and the bodies referred to in Article 62(3) of Regulation (EC) No 1083/2006 shall have access to that information.

2. At the written request of the Commission, the Member State shall provide the Commission with the information referred to in paragraph 1 within 15 working days of receipt of the request, or any other agreed period, for the purpose of carrying out documentary and on-the-spot checks.

3. In the accounting records maintained in accordance with Article 61(f) of Regulation (EC) No 1083/2006, any amount related to an irregularity reported to the Commission under Article 28 of this Regulation shall be identified by the reference number attributed to that irregularity or by any other adequate method.

For the purposes of Article 60(f) of Regulation (EC) No 1083/2006, an audit trail shall be considered adequate where, for the operational programme concerned, it complies with the following criteria:

1. The audits referred to in Article 62(1)(b) of Regulation (EC) No 1083/2006 shall be carried out each 12-month period from 1 July 2008 on a sample of operations selected by a method established or approved by the audit authority in accordance with Article 17 of this Regulation.

The audits shall be carried out on-the-spot on the basis of documentation and records held by the beneficiary.

3. Where problems detected appear to be systemic in nature and therefore entail a risk for other operations under the operational programme, the audit authority shall ensure that further examination is carried out, including additional audits where necessary, to establish the scale of such problems. The necessary preventive and corrective action shall be taken by the relevant authorities.

4. Only expenditure falling within the scope of an audit carried out pursuant to paragraph 1 shall be counted towards the amount of expenditure audited, for the purposes of reporting in the tables in point 9 of Annex VI and point 9 of Annex VIII.

1. The sample of operations to be audited each year shall in the first instance be based on a random statistical sampling method as set out in paragraphs 2, 3 and 4. Additional operations may be selected as a complementary sample as set out in paragraphs 5 and 6.

2. The method used to select the sample and to draw conclusions from the results shall take account of internationally accepted audit standards and be documented. Having regard to the amount of expenditure, the number and type of operations and other relevant factors, the audit authority shall determine the appropriate statistical sampling method to apply. The technical parameters of the sample shall be determined in accordance with Annex IV.

3. The sample to be audited each twelve-month period shall be selected from those operations for which, during the year preceding the year in which the annual control report pursuant to Article 18(2) is communicated to the Commission, expenditure has been declared to the Commission for the operational programme or, where appropriate, for the operational programmes covered by a common management and control system. For the first 12-month period, the audit authority may decide to group the operations for which expenditure has been declared to the Commission in 2007 and 2008 as a basis for the selection of the operations to be audited.

4. The audit authority shall draw conclusions on the basis of the results of the audits relating to expenditure declared to the Commission during the year referred to in paragraph 3 and communicate them to the Commission in the annual control report.

In operational programmes for which the projected error rate is above the materiality level, the audit authority shall analyse its significance and take the necessary actions, including making appropriate recommendations, which will be communicated in the annual control report.

5. The audit authority shall regularly review the coverage provided by the random sample, having regard in particular to the need to have sufficient audit assurance for the declarations to be provided at partial and final closure for each operational programme.

It shall decide on the basis of professional judgment whether it is necessary to audit a complementary sample of additional operations in order to take account of specific risk factors identified and to guarantee for each programme sufficient coverage of different types of operation, beneficiaries, intermediate bodies and priority axes.

6. The audit authority shall draw conclusions on the basis of the results of the audits of the complementary sample and communicate them to the Commission in the annual control report.

Where the number of detected irregularities is high or where systemic irregularities have been detected, the audit authority shall analyse the significance thereof and take the necessary actions, including making appropriate recommendations, which shall be communicated in the annual control report.

The results of the audits on the complementary sample shall be analysed separately from those of the random sample. In particular, irregularities detected in the complementary sample shall not be taken into account when the error rate of the random sample is calculated.

1. The audit strategy referred to in Article 62(1)(c) of Regulation (EC) No 1083/2006 shall be established in accordance with the model in Annex V to this Regulation. It shall be updated and reviewed annually and, if necessary, during the course of the year.

2. The annual control report and the opinion referred to in Article 62(1)(d) of Regulation (EC) No 1083/2006 shall be based on the systems audits and audits of operations carried out pursuant to Article 62(1)(a) and (b) of that Regulation in accordance with the audit strategy and shall be drawn up in accordance with the models set out in Annexes VI and VII to this Regulation.

For European territorial cooperation objective programmes, the annual control report and the opinion shall cover the whole of the programme and all programme expenditure eligible for a contribution from the ERDF.

3. The closure declaration referred to in Article 62(1)(e) of Regulation (EC) No 1083/2006 shall be based on all the audit work carried out by, or under the responsibility of, the audit authority in accordance with the audit strategy. The closure declaration and final control report shall be drawn up in accordance with the model set out in Annex VIII to this Regulation.

For European territorial cooperation objective programmes, the closure declaration and final control report shall cover the whole of the programme and all programme expenditure eligible for contribution from the ERDF.

4. If there is a limitation in the scope of examination or if the level of irregular expenditure detected does not allow the provision of an unqualified opinion for the annual opinion referred to in Article 62(1)(d) of Regulation (EC) No 1083/2006 or in the closure declaration referred to in point (e) of that Article, the audit authority shall give the reasons and estimate the scale of the problem and its financial impact.

5. In the event of partial closure of an operational programme, the declaration relating to the legality and regularity of the transactions covered by the statement of expenditure referred to in Article 88 of Regulation (EC) No 1083/2006 shall be drawn up by the audit authority in accordance with the model in Annex IX to this Regulation and submitted with the opinion referred to in Article 62(1)(d)(ii) of Regulation (EC) No 1083/2006.

1. For the purposes of Article 90 of Regulation (EC) No 1083/2006, the managing authority shall ensure that a record is available of the identity and location of bodies holding the supporting documents relating to expenditure and audits, which includes all documents required for an adequate audit trail.

2. The managing authority shall ensure that the documents referred to in paragraph 1 are made available for inspection by, and extracts or copies thereof are supplied to, persons and bodies entitled thereto, including at least authorised staff of the managing authority, certifying authority, intermediate bodies and audit authority and the bodies referred to in Article 62(3) of Regulation (EC) No 1083/2006, and authorised officials of the Community and their authorised representatives.

3. The managing authority shall keep information necessary for the purposes of evaluation and reporting, including the information referred to in Article 14, in relation to operations referred to in Article 90(2) of Regulation (EC) No 1083/2006 for the whole of the period referred to in paragraph (1)(a) of that Article.

4. The following at least shall be considered commonly accepted data carriers as referred to in Article 90 of Regulation (EC) No 1083/2006:

5. The procedure for certification of conformity of documents held on commonly accepted data carriers with the original document shall be laid down by the national authorities and shall ensure that the versions held comply with national legal requirements and can be relied on for audit purposes.

6. Where documents exist in electronic version only, the computer systems used must meet accepted security standards that ensure that the documents held comply with national legal requirements and can be relied on for audit purposes.

1. Certified statements of expenditure and payment applications referred to in Article 61(a) of Regulation (EC) No 1083/2006 shall be drawn up in the format in Annex X to this Regulation and transmitted to the Commission.

By 31 March 2010 and by 31 March of each year thereafter, the certifying authority shall send a statement to the Commission in the format set out in Annex XI, identifying for each priority axis of the operational programme:

For the purposes of points (a), (b) and (c) of the first subparagraph, aggregate amounts related to irregularities reported to the Commission under Article 28 shall be provided for each priority axis.

For the purposes of point (d) of the first subparagraph, any amount related to an irregularity reported to the Commission under Article 28 shall be identified by the reference number of that irregularity or by any other adequate method.

2a. For each amount referred to in point (d) of the first subparagraph of paragraph 2 the certifying authority shall indicate whether it requests the Community share to be borne by the general budget of the European Union.

If, within one year from the date of the submission of the statement, the Commission does not request information for the purposes of Article 70(2) of Regulation (EC) No 1083/2006, inform the Member State in writing about its intention to open an enquiry in respect of that amount or request that the Member State continue the recovery procedure, the Community share shall be borne by the general budget of the European Union.

The time limit of one year shall not apply in cases of suspected or established fraud.

2b. For the purposes of the statement provided for in paragraph 2, Member States which have not adopted the euro as their currency by the date when the statement is submitted shall convert amounts in national currency into euro using the exchange rate referred to in Article 81(3) of Regulation (EC) No 1083/2006. Where the amounts relate to expenditure registered in the accounts of the certifying authority during more than one month, the exchange rate in the month during which expenditure was last registered may be used.

3. In order to proceed to the partial closure of an operational programme, the certifying authority shall send to the Commission a statement of expenditure referred to in Article 88 of Regulation (EC) No 1083/2006 in the format set out in Annex XIV to this Regulation.

1. The description of the management and control systems for operational programmes referred to in Article 71(1) of Regulation (EC) No 1083/2006 shall contain information on the matters referred to in Article 58 of that Regulation in respect of each operational programme, and the information set out in Articles 22, 23, and, where applicable, Article 24 of this Regulation.

That information shall be submitted in accordance with the model set out in Annex XII.

2. The description of the management and control systems of operational programmes under the European territorial cooperation objective shall be provided by the Member State on whose territory the managing authority is located.

Information concerning the managing authority, the certifying authority and intermediate bodies

As regards the managing authority, the certifying authority and each intermediate body, the Member State shall provide to the Commission the following information:

As regards the audit authority and the bodies referred to in Article 62(3) of Regulation (EC) No 1083/2006, the Member State shall provide to the Commission the following information:

Description of the management and control systems of the European territorial cooperation objective

In addition to the information set out in Articles 21, 22 and 23, the description of the management and control system shall include the arrangements agreed between the Member States for the following purposes:

The report referred to in Article 71(2) of Regulation (EC) No 1083/2006 shall be based on an examination of the systems description, of relevant documents concerning the systems and of the system for keeping accounting records and data on implementation of operations, and on interviews with the staff in the main bodies considered important by the audit authority or other body responsible for the report in order to complete, clarify or verify the information.

The opinion referred to in Article 71(2) of Regulation (EC) No 1083/2006 shall be drawn up in accordance with the model set out in Annex XIII to this Regulation.

Where the management and control systems concerned are essentially the same as those in place for assistance approved pursuant to Regulation (EC) No 1260/1999, account may be taken of the results of audits carried out by national and Community auditors in relation to those systems for the purpose of establishing the report and opinion pursuant to Article 71(2) of Regulation (EC) No 1083/2006.

Derogations concerning operational programmes referred to in Article 74 of Regulation (EC) No 1083/2006

1. For operational programmes in respect of which a Member State has exercised the option referred to in the first subparagraph of Article 74(2) of Regulation (EC) No 1083/2006, paragraphs 2 to 5 of this Article shall apply.

2. The verifications referred to in Article 13(2) of this Regulation shall be carried out by the national body referred to in Article 74(2) of Regulation (EC) No 1083/2006.

3. The audits of operations referred to in point (b) of Article 62(1) of Regulation (EC) No 1083/2006 shall be carried out in accordance with national procedures. Articles 16 and 17 of this Regulation shall not apply.

4. Article 18(2) to (5) of this Regulation shall apply, mutatis mutandis, to the preparation of the documents issued by the national body referred to in Article 74(2) of Regulation (EC) No 1083/2006.

5. The annual control report and the annual opinion shall be drawn up following, as appropriate, the models set out in Annexes VI and VII to this Regulation.

The obligations laid down in Article 20(2) of this Regulation shall be carried out by the national body referred to in Article 74(2) of Regulation (EC) No 1083/2006.

The statement of expenditure shall be drawn up following the models set out in Annexes X and XIV to this Regulation.

6. The information to be included in the description of the management and control systems referred to in Articles 21(1), 22 and 23 of this Regulation shall, where applicable, include the information concerning the national bodies referred to in Article 74(2) of Regulation (EC) No 1083/2006.

1. Without prejudice to the other obligations pursuant to Article 70 of Regulation (EC) No 1083/2006, within two months following the end of each quarter, Member States shall report to the Commission any irregularities which have been the subject of a primary administrative or judicial finding.

In that report Member States shall in all cases give details concerning the following:

2. By way of derogation from paragraph 1, the following cases need not be reported:

However, irregularities preceding a bankruptcy and cases of suspected fraud must be reported.

3. Where some of the information referred to in paragraph 1, and in particular information concerning the practices employed in committing the irregularity and the manner in which it was discovered, is not available or needs to be rectified, Member States shall as far as possible supply the missing or correct information when forwarding subsequent quarterly reports of irregularities to the Commission.

4. Irregularities relating to operational programmes under the European territorial cooperation objective shall be reported by the Member State in which the expenditure is paid by the beneficiary in implementing the operation. The Member State shall at the same time inform the managing authority, the certifying authority for the programme and the audit authority.

5. If national provisions provide for the confidentiality of investigations, communication of the information shall be subject to the authorisation of the competent court or tribunal.

6. Where a Member State has no irregularities to report pursuant to paragraph 1, it shall inform the Commission of that fact within the time limit set out in that paragraph.

Each Member State shall immediately report to the Commission and, where necessary, to the other Member States concerned, any irregularities discovered or supposed to have occurred, where it is feared that they may very quickly have repercussions outside its territory or they show that a new malpractice has been employed.

1. In addition to the information referred to in Article 28(1), Member States shall provide the Commission within two months following the end of each quarter, with reference to any previous report made pursuant to that Article, with details concerning the initiation, conclusion or abandonment of any procedures for imposing administrative or criminal penalties related to the reported irregularities as well as of the outcome of such procedures.

With regard to irregularities for which penalties have been imposed, Member States shall also indicate the following:

2. At the written request of the Commission, the Member State shall provide information in relation to a specific irregularity or group of irregularities.

The information referred to in Articles 28, 29 and 30(1) shall be sent, whenever it is possible to do so, by electronic means, using the module provided by the Commission for this purpose via a secure connection.

Where the competent authorities of a Member State decide, at the express request of the Commission, to initiate or continue judicial proceedings with a view to recovering amounts unduly paid, the Commission may undertake to reimburse to the Member State all or part of the judicial costs and costs arising directly from the proceedings, on presentation of documentary evidence, even if the proceedings are unsuccessful.

1. The Commission shall maintain appropriate contacts with the Member States concerned for the purpose of supplementing the information supplied on the irregularities referred to in Article 28, on the procedures referred to in Article 30, and, in particular, on the possibility of recovery.

2. Without prejudice to the contacts referred to in paragraph 1, where the Commission considers that, due to the nature of the irregularity, identical or similar practices could occur in other Member States, it shall submit the matter to the advisory Committee for the Coordination of Fraud Prevention set up by Commission Decision 94/140/EC ( 20 ).

The Commission shall, each year, inform that Committee and the committees referred to in Articles 103 and 104 of Regulation (EC) No 1083/2006 of the order of magnitude of the Funds affected by the irregularities which have been discovered and of the various categories of irregularities, broken down by type and number.

3. The Commission shall organise information meetings at Community level for representatives of the Member States in order to examine with them the information obtained pursuant to Articles 28, 29 and 30, and paragraph 1 of this Article. The examination shall focus on the lessons to be learned from the information in connection with irregularities, preventive measures and judicial proceedings.

4. At the request of a Member State or of the Commission, the Member States and the Commission shall consult one another for the purpose of closing any loopholes prejudicial to Community interests, which become apparent in the course of the enforcement of provisions in force.

The Commission may use any information of a general or operational nature communicated by Member States under this Regulation to perform risk analyses and may, on the basis of the information obtained, produce reports and develop early-warning systems serving to identify risks more effectively.

1. Where the irregularities relate to amounts of less than EUR 10 000 chargeable to the general budget of the European Communities, Member States shall not send the Commission the information provided for in Articles 28 and 30, unless the Commission expressly requests it.

2. Member States which have not adopted the euro as their currency by the date when the report under Article 28(1) is submitted shall convert amounts in national currency into euro using the exchange rate referred to in Article 81(3) of Regulation (EC) No 1083/2006.

Where the amounts relate to expenditure registered in the accounts of the certifying authority during a period of more than one month, the exchange rate in the month during which expenditure was last registered may be used. Where the expenditure has not been registered in the accounts of the certifying authority, the most recent accounting exchange rate published electronically by the Commission shall be used.

1. Member States and the Commission shall take all necessary measures to prevent any unauthorised disclosure of, or access to, the information referred to in Article 14(1), information collected by the Commission in the course of its audits and information referred to in Section 4.

2. The information referred to in Article 14(1), together with information collected by the Commission in the course of its audits, shall be used by the Commission for the sole purpose of fulfilling its responsibilities pursuant to Article 72 of Regulation (EC) No 1083/2006. The European Court of Auditors and the European Anti-Fraud Office shall have access to that information.

3. The information referred to in Section 4 may not be sent to persons other than those in the Member States or within the Community institutions whose duties require that they have access to it, unless the Member State supplying such information has expressly so agreed.

4. Any personal data included in the information referred to in Article 7(2) (d) shall be processed only for the purpose specified in that Article.

1. Where the Commission makes a financial correction in accordance with Article 99(5) of Regulation (EC) No 1083/2006, the correction shall be calculated in accordance with paragraph 2 of this Article.

2. The rate of financial correction shall be obtained by subtracting 3 percentage points from the difference between the agreed target level and the level achieved, expressed as a percentage of the agreed target level, and then dividing the result by 10.

The financial correction shall be determined by applying that rate of financial correction to the Structural Fund contribution to the Member State concerned under the convergence objective for the full programming period.

3. If the difference between the agreed target level and the level achieved, expressed as a percentage of the agreed target level, referred to in paragraph 2, is 3 % or less, no financial correction shall be made.

4. The financial correction shall not exceed 5 % of the Structural Fund allocation to the Member State concerned under the convergence objective for the full programming period.

For the purposes of Articles 66 and 76 of Regulation (EC) No 1083/2006, a computer system for exchange of data shall be established as a tool for the exchange of all data relating to the operational programme.

The exchange of data between each Member State and the Commission shall be carried out using a computer system established by the Commission which permits the secure exchange of data between the Commission and each Member State.

The Member States shall be involved in the further development of the computer system for data exchange.

1. The computer system for data exchange shall contain information of common interest to the Commission and the Member States, and at least the following data necessary for financial transactions:

2. In addition to paragraph 1, the computer system for data exchange shall contain at least the following documents and data of common interest enabling monitoring to be carried out:

3. The data referred to in paragraphs 1 and 2 shall, where applicable, be transmitted in the format given in the Annexes.

1. The Commission and the authorities designated by the Member State pursuant to Regulation (EC) No 1083/2006, as well as the bodies to which that task has been delegated, shall record into the computer system for data exchange the documents for which they are responsible, and any updates thereto, in the format required.

2. Member States shall centralise and send to the Commission requests for access rights to the computer system for data exchange.

3. Exchanges of data and transactions shall bear an electronic signature within the meaning of Directive 1999/93/EC. The Member States and the Commission shall recognise the legal effectiveness and admissibility of the electronic signature used in the computer system for data exchange as evidence in legal proceedings.

4. The cost of developing the computer system for data exchange shall be financed by the general budget of the European Communities pursuant to Article 45 of Regulation (EC) No 1083/2006.

Any costs of an interface between the common computer system for data exchange and national, regional and local computer systems, and any costs of adapting national, regional and local systems to requirements pursuant to Regulation (EC) No 1083/2006, shall be eligible pursuant to Article 46 of that Regulation.

1. The computer system for data exchange shall be accessible to the Member States and the Commission either directly or via an interface for automatic synchronisation and recording of data with national, regional and local computer management systems.

2. The date taken into account for the forwarding of documents to the Commission shall be the date on which the Member State records the documents into the computer system for data exchange.

3. In cases of force majeure, and in particular of malfunctioning of the computer system for data exchange or a lack of a lasting connection, the Member State concerned may forward to the Commission the documents required by Regulation (EC) No 1083/2006 in hard copy, using the forms set out in Annexes II, V, VI, VII, IX, X, XII, XIII, XIV, XV, XVI, XVII, XVIII, XIX, XX, XXI, XXII and XXIII to this Regulation. As soon as the cause of force majeure ceases, the Member State shall record the corresponding documents into the computer system for data exchange without delay.

By way of derogation from paragraph 2, the date taken into account for forwarding shall be deemed to be the date of sending of the documents in hard copy.

1. Articles 43 to 46 shall apply to financial engineering instruments in the form of actions which make repayable investments, or provide guarantees for repayable investments, or both, in the following:

2. Financial engineering instruments, including holding funds, shall be independent legal entities governed by agreements between the co-financing partners or shareholders or as a separate block of finance within a financial institution.

Where the financial engineering instrument is within a financial institution, it shall be set up as a separate block of finance, subject to specific implementation rules within the financial institution, stipulating, in particular, that separate accounts are kept which distinguish the new resources invested in the financial engineering instrument, including those contributed by the operational programme, from those initially available in the institution.

The Commission may not become a co-financing partner or shareholder in financial engineering instruments.

3. When managing authorities or holding funds select financial engineering instruments, the financial engineering instruments shall submit a business plan or other appropriate document.

The terms and conditions for contributions from operational programmes to financial engineering instruments shall be set out in a funding agreement, to be concluded between the duly mandated representative of the financial engineering instrument and the Member State or the managing authority, or the holding fund where applicable.

Management costs may not exceed, on a yearly average, for the duration of the assistance any of the following thresholds, unless a higher percentage proves necessary following a competitive tender, in accordance with applicable rules:

5. Returns from equity, loans and other repayable investments, and from guarantees for repayable investments, less a pro rata share of the management costs and performance incentives, may be allocated preferentially to investors operating under the market economy investor principle. Such returns may be allocated up to the level of remuneration laid down in the by-laws of the financial engineering instruments, and they shall then be allocated proportionally among all co-financing partners or shareholders.

6. Enterprises, as well as public private partnerships and other projects included in an integrated plan for sustainable urban development, which are supported by financial engineering instruments, may also receive a grant or other assistance from an operational programme.

7. Managing authorities shall take precautions to minimise distortion of competition in the venture capital or lending markets and the private guarantee market.

1. Where the Structural Funds finance financial engineering instruments organised through holding funds, the Member State or managing authority shall conclude a funding agreement with the holding fund, setting out the funding arrangements and objectives.

2. The funding agreement referred to in paragraph 1 shall, in particular, make provision for:

In the case of financial engineering instruments supporting enterprises, the provisions on the setting up and monitoring of the investment policy referred to in point (d) of the first subparagraph shall comprise at least an indication of the targeted enterprises and the financial engineering products to be supported.

Additional provisions applicable to financial engineering instruments other than holding funds and urban development funds

Financial engineering instruments other than holding funds and urban development funds shall invest in enterprises, primarily in SMEs. Such investments may be made only at the establishment, in the early stages, including seed capital, or on expansion of those enterprises, and only in activities which the managers of the financial engineering instruments judge potentially economically viable.

They shall not invest in firms in difficulty within the meaning of the Community Guidelines on State aid for rescuing and restructuring firms in difficulty ( 22 ) as of 10 October 2004.

1. Where Structural Funds finance urban development funds, those funds shall invest in public-private partnerships or other projects included in an integrated plan for sustainable urban development. Such public-private partnerships or other projects shall not include the creation and development of financial engineering instruments such as venture capital, loan and guarantee funds for enterprises.

2. For the purposes of paragraph 1, urban development funds shall invest by means of loans and guarantees, or equivalent instruments and by means of equity.

3. Where Structural Funds finance urban development funds, the funds concerned shall not re-finance acquisitions or participations in projects already completed.

1. In determining areas referred to in point (a) of the first subparagraph of Article 7(2) of Regulation (EC) No 1080/2006, Member States shall take into consideration at least one of the following criteria:

2. Only the following interventions shall be eligible pursuant to point (c) of the first subparagraph of Article 7(2) of Regulation (EC) No 1080/2006:

Rules of eligibility applicable to operational programmes for the European territorial cooperation objective

Without prejudice to the list of ineligible expenditure in Article 7 of Regulation (EC) No 1080/2006, Articles 49 to 53 of this Regulation shall apply in accordance with Article 13 of Regulation (EC) No 1080/2006 to the determination of the eligibility of expenditure under operations selected as part of an operational programme under the European territorial cooperation objective.

The following charges and costs shall be eligible for a contribution from the ERDF:

Fines, financial penalties and expenditure on legal disputes shall not be eligible.

1. In addition to technical assistance for the operational programme pursuant to Article 46 of Regulation (EC) No 1083/2006, the following expenditure paid by public authorities in the preparation or implementation of an operation shall be eligible:

2. The public authority concerned shall either invoice the costs referred to in paragraph 1(a) to the beneficiary or certify those costs on the basis of documents of equivalent probative value which permit the identification of real costs paid by that authority for that operation.

3. The costs referred to in point (b) of paragraph 1 shall be eligible if they do not arise from statutory responsibilities of the public authority or its day-to-day management, monitoring and control tasks and relate either to expenditure actually and directly paid for the co-financed operation or to in-kind contributions, as referred to in Article 51.

1. In-kind contributions of a public or private beneficiary shall be eligible expenditure if they fulfil the following conditions:

2. In the case of the provision of land or real estate, the value shall be certified by an independent qualified valuer or duly authorised official body.

3. In the case of unpaid voluntary work, the value of that work shall be determined taking into account the time spent and the hourly and daily rates of remuneration for equivalent work.

Overheads shall be eligible provided that they are based on real costs attributable to the implementation of the operation concerned or on the average real costs attributable to operations of the same type.

Flat rates based on average costs may not exceed 25 % of those direct costs of an operation which can affect the level of overheads. The calculation of flat rates shall be properly documented and periodically reviewed.

The first and second paragraphs shall only apply to operations approved before 13 October 2009 and where the option available to Member States in Article 7(4)(i) of Regulation (EC) No 1080/2006 has not been exercised.

The depreciation expenditure of depreciable assets directly used for an operation, and incurred during the period of its co-financing, shall be eligible, provided that the acquisition of the assets is not declared as eligible expenditure.

1. Regulations (EC) No 1681/94, (EC) No 1159/2000, (EC) No 1685/2000, (EC) No 438/2001 and (EC) No 448/2001 are hereby repealed.

References to the repealed Regulations shall be construed as references to this Regulation.

The provisions of the repealed Regulations shall continue to apply to assistance approved pursuant to Regulation (EC) No 1260/1999.

2. Regulations (EC) No 1831/94, (EC) No 1386/2002, (EC) No 16/2003 and (EC) No 621/2004 are hereby repealed.

References to the repealed Regulations shall be construed as references to this Regulation.

The provisions of the repealed Regulations shall continue to apply to decisions adopted pursuant to Regulation (EC) No 1164/94.

This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Against a background of blue sky, twelve golden stars form a circle representing the union of the peoples of Europe. The number of stars is fixed, twelve being the symbol of perfection and unity.

The emblem has the form of a blue rectangular flag of which the fly is one-and-a-half times the length of the hoist. Twelve gold stars situated at equal intervals form an invisible circle whose centre is the point of intersection of the diagonals of the rectangle. The radius of the circle is equal to one third of the height of the hoist. Each of the stars has five points which are situated on the circumference of an invisible circle whose radius is equal to 1/18th of the height of the hoist. All the stars are upright, i.e. with one point vertical and two points in a straight line at right angles to the mast. The circle is arranged so that the stars appear in the position of the hours on the face of a clock. Their number is invariable.

If the four-colour process is used, recreate the two standard colours by using the four colours of the four-colour process.

PANTONE REFLEX BLUE corresponds in the web-palette colour RGB: 0/51/153 (hexadecimal: 003399) and PANTONE YELLOW corresponds in the web-palette colour RGB: 255/204/0 (hexadecimal: FFCC00).

Using black, outline the rectangle in black and print the stars in black on white.

Using blue (Reflex Blue), use 100 % with the stars reproduced in negative white.

If there is no alternative to a coloured background, put a white border around the rectangle, the width of the border being 1/25th of the height of the rectangle.

TABLE 1: CODES FOR THE PRIORITY THEME DIMENSION

Code	Priority theme
Research and technological development (R&TD), innovation and entrepreneurship
01	R&TD activities in research centres
02	R&TD infrastructure (including physical plant, instrumentation and high-speed computer networks linking research centres) and centres of competence in a specific technology
03	Technology transfer and improvement of cooperation networks between small businesses (SMEs), between these and other businesses and universities, post-secondary education establishments of all kinds, regional authorities, research centres and scientific and technological poles (scientific and technological parks, technopoles, etc.)
04	Assistance to R&TD, particularly in SMEs (including access to R&TD services in research centres)
05	Advanced support services for firms and groups of firms
06	Assistance to SMEs for the promotion of environmentally-friendly products and production processes (introduction of effective environment managing system, adoption and use of pollution prevention technologies, integration of clean technologies into firm production)
07	Investment in firms directly linked to research and innovation (innovative technologies, establishment of new firms by universities, existing R&TD centres and firms, etc.)
08	Other investment in firms
09	Other measures to stimulate research and innovation and entrepreneurship in SMEs
Information society
10	Telephone infrastructures (including broadband networks)
11	Information and communication technologies (access, security, interoperability, risk-prevention, research, innovation, e-content, etc.)
12	Information and communication technologies (TEN-ICT)
13	Services and applications for the citizen (e-health, e-government, e-learning, e-inclusion, etc.)
14	Services and applications for SMEs (e-commerce, education and training, networking, etc.)
15	Other measures for improving access to and efficient use of ICT by SMEs
Transport
16	Railways
17	Railways (TEN-T)
18	Mobile rail assets
19	Mobile rail assets (TEN-T)
20	Motorways
21	Motorways (TEN-T)
22	National roads
23	Regional/local roads
24	Cycle tracks
25	Urban transport
26	Multimodal transport
27	Multimodal transport (TEN-T)
28	Intelligent transport systems
29	Airports
30	Ports
31	Inland waterways (regional and local)
32	Inland waterways (TEN-T)
Energy
33	Electricity
34	Electricity (TEN-E)
35	Natural gas
36	Natural gas (TEN-E)
37	Petroleum products
38	Petroleum products (TEN-E)
39	Renewable energy: wind
40	Renewable energy: solar
41	Renewable energy: biomass
42	Renewable energy: hydroelectric, geothermal and other
43	Energy efficiency, co-generation, energy management
Environmental protection and risk prevention
44	Management of household and industrial waste
45	Management and distribution of water (drinking water)
46	Water treatment (waste water)
47	Air quality
48	Integrated prevention and pollution control
49	Mitigation and adaptation to climate change
50	Rehabilitation of industrial sites and contaminated land
51	Promotion of biodiversity and nature protection (including NATURA 2000)
52	Promotion of clean urban transport
53	Risk prevention (including the drafting and implementation of plans and measures to prevent and manage natural and technological risks)
54	Other measures to preserve the environment and prevent risks
Tourism
55	Promotion of natural assets
56	Protection and development of natural heritage
57	Other assistance to improve tourist services
Culture
58	Protection and preservation of the cultural heritage
59	Development of cultural infrastructure
60	Other assistance to improve cultural services
Urban and rural regeneration
61	Integrated projects for urban and rural regeneration
Increasing the adaptability of workers and firms, enterprises and entrepreneurs
62	Development of life-long learning systems and strategies in firms; training and services for employees to step up their adaptability to change; promoting entrepreneurship and innovation
63	Design and dissemination of innovative and more productive ways of organising work
64	Development of specific services for employment, training and support in connection with restructuring of sectors and firms, and development of systems for anticipating economic changes and future requirements in terms of jobs and skills
Improving access to employment and sustainability
65	Modernisation and strengthening labour market institutions
66	Implementing active and preventive measures on the labour market
67	Measures encouraging active ageing and prolonging working lives
68	Support for self-employment and business start-up
69	Measures to improve access to employment and increase sustainable participation and progress of women in employment to reduce gender-based segregation in the labour market, and to reconcile work and private life, such as facilitating access to childcare and care for dependent persons
70	Specific action to increase migrants’ participation in employment and thereby strengthen their social integration
Improving the social inclusion of less-favoured persons
71	Pathways to integration and re-entry into employment for disadvantaged people; combating discrimination in accessing and progressing in the labour market and promoting acceptance of diversity at the workplace
Improving human capital
72	Design, introduction and implementation of reforms in education and training systems in order to develop employability, improving the labour market relevance of initial and vocational education and training, updating skills of training personnel with a view to innovation and a knowledge based economy
73	Measures to increase participation in education and training throughout the life-cycle, including through action to achieve a reduction in early school leaving, gender-based segregation of subjects and increased access to and quality of initial vocational and tertiary education and training
74	Developing human potential in the field of research and innovation, in particular through post-graduate studies and training of researchers, and networking activities between universities, research centres and businesses
Investment in social infrastructure
75	Education infrastructure
76	Health infrastructure
77	Childcare infrastructure
78	Housing infrastructure
79	Other social infrastructure
Mobilisation for reforms in the fields of employment and inclusion
80	Promoting partnerships, pacts and initiatives through the networking of relevant stakeholders
Strengthening institutional capacity at national, regional and local level
81	Mechanisms for improving good policy and programme design, monitoring and evaluation at national, regional and local level, capacity building in the delivery of policies and programmes.
Reduction of additional costs hindering the outermost regions development
82	Compensation of any additional costs due to accessibility deficit and territorial fragmentation
83	Specific action addressed to compensate additional costs due to size market factors
84	Support to compensate additional costs due to climate conditions and relief difficulties
Technical assistance
85	Preparation, implementation, monitoring and inspection
86	Evaluation and studies; information and communication

Part B: Indicative breakdown of the Community contribution by category in the operational programme

Date of the last Commission decision for the operational programme concerned: …/…/…

Part C: Cumulative breakdown of allocations of the Community contribution by category in the annual and final report on implementation

Date of the last Commission decision for the operational programme concerned: …/…/…

LIST OF DATA ON OPERATIONS TO BE COMMUNICATED ON REQUEST TO THE COMMISSION FOR THE PURPOSE OF DOCUMENTARY AND ON-THE-SPOT CHECKS PURSUANT TO ARTICLE 14

Field 20.	Internal reference number of last application for reimbursement from operation
Field 21.	Date on which last application for reimbursement from operation was entered into monitoring system
Field 22.	Total amount of eligible expenditure paid by beneficiaries and declared in last application for reimbursement from operation entered into monitoring system
Field 23.	Total amount of eligible expenditure paid by beneficiaries for which applications for reimbursement have been made
Field 24.	Location of detailed supporting documents for claim if not on premises of beneficiary
Field 25.	ERDF-related expenditure for operational programmes co-financed by ESF (1)
Field 26.	ESF-related expenditure for operational programmes co-financed by ERDF (2)
Field 27.	Expenditure paid in areas adjacent to the eligible areas (cross border cooperation) (3)
Field 28.	Expenditure paid by partners located outside the area (transnational cooperation) (4)
Field 29.	Expenditure paid outside the Community (cross-border, transnational and interregional cooperation) (5)
Field 30.	Expenditure paid for the purchase of land (6)
Field 31.	Expenditure paid for housing (7)
Field 32.	Expenditure paid for indirect costs/overheads declared on a flat rate basis, flat rat costs calculated by application of standard scale of unit costs and lump sums (8)
Field 33.	Revenue deducted from the expenditure of the operation and included in the statement of expenditure and application for payment
Field 34.	Financial corrections deducted from the expenditure of the operation and included in the statement of expenditure and application for payment
Field 35.	Total amount of eligible expenditure declared from operation and corresponding public contribution included in statement of expenditure sent to the Commission by certifying authority (in EUR)
Field 36.	Total amount of eligible expenditure declared from operation and corresponding public contribution included in statement of expenditure sent to the Commission by certifying authority (national currency)
Field 37.	Date of last statement of expenditure of the certifying authority containing expenditure from operation
Field 38.	Date of verifications carried out pursuant to Article 13(2)(b)
Field 39.	Date of audits pursuant to Article 16(1)
Field 40.	Body carrying out the audit or verification
Field 41.
(1) Field 25: to be provided for operational programmes co-financed by ESF where use is made of the option referred to in Article 34(2) of Regulation (EC) No 1083/2006 or of the option referred to in Article 8 of Regulation (EC) No 1080/2006. (2) Field 26 to be provided for operational programmes co-financed by ERDF where use is made of the option referred to in Article 34 (2) of Regulation (EC) No 1083/2006 or of the option referred to in Article 8 of Regulation (EC) No 1080/2006. (3) Article 21(1) of Regulation (EC) No 1080/2006. (4) Article 21(2) of Regulation (EC) No 1080/2006. (5) Article 21(3) of Regulation (EC) No 1080/2006. (6) Article 7(1)(b) of Regulation (EC) No 1080/2006. (7) Article 7(2)(c) of Regulation (EC) No 1080/2006 (8) Article (7) of Regulation 1080/2006 and Article (11) of Regulation 1081/2006 of the European Parliament and of the Council (OJ L 210, 31.7.2006, p. 12).

TECHNICAL PARAMETERS FOR RANDOM STATISTICAL SAMPLING PURSUANT TO ARTICLE 17 (SAMPLING)

MODEL AUDIT STRATEGY PURSUANT TO ARTICLE 62(1)(c) OF REGULATION (EC) No 1083/2006

MODEL ANNUAL CONTROL REPORT PURSUANT TO ARTICLE 62(1)(d)(i) OF COUNCIL REGULATION (EC) No 1083/2006 AND ARTICLE 18(2) OF THE PRESENT REGULATION

6. COORDINATION BETWEEN AUDIT BODIES AND SUPERVISORY WORK OF THE AUDIT AUTHORITY

MODEL ANNUAL OPINION PURSUANT TO ARTICLE 62(1)(d)(ii) OF COUNCIL REGULATION (EC) No 1083/2006 AND ARTICLE 18(2) OF THE PRESENT REGULATION

I, the undersigned, representing the … (name of body designated by Member State), have examined the functioning of the management and control systems in the operational programme … (name of operational programme, CCI code number, period), in order to issue an opinion on whether the systems functioned effectively so as to provide reasonable assurance that statements of expenditure presented to the Commission are correct and, as a consequence, reasonable assurance that the underlying transactions are legal and regular.

The examination was carried out in accordance with the audit strategy in respect of this programme during the period 1 July to 30 June … (year) and reported in the attached annual control report pursuant to Article 62(1)(d)(i) of Council Regulation (EC) No 1083/2006.

(Indicate any limitation on the scope of the examination, for example any systemic problems, weaknesses in the management and control system, lack of supporting documentation, cases under legal proceedings, etc., and estimate the amounts of expenditure and the Community contribution affected. If the audit authority does not consider that the limitations have an impact on the final expenditure declared, this should be stated.)

Based on the examination referred to above, it is my opinion that, for the abovementioned period, the management and control system established for the programme … (name of operational programme, CCI code number, period) complied with the applicable requirements of Articles 58 to 62 of Council Regulation (EC) No 1083/2006 and Section 3 of Commission Regulation (EC) No 1828/2006 and functioned effectively so as to provide reasonable assurance that statements of expenditure presented to the Commission are correct and, as a consequence, reasonable assurance that the underlying transactions are legal and regular.

Based on the examination referred to above, it is my opinion that, for the abovementioned period, the management and control systems established for the programme … (name of operational programme, CCI code number, period) complied with the applicable requirements of Articles 58 to 62 of Council Regulation (EC) No 1083/2006 and Section 3 of Commission Regulation (EC) No 1828/2006 and functioned effectively so as to provide reasonable assurance that statements of expenditure presented to the Commission are correct and, as a consequence, reasonable assurance that the underlying transactions are legal and regular, except in the following respects: … ( 24 ).

My reasons for considering that this (these) aspect(s) of the systems did not comply with the requirements and/or did not operate in such a way as to give a reasonable assurance on the correctness of the statements of expenditure presented to the Commission are as follows … ( 25 ).

I estimate the impact of the qualification(s) to be … of the total expenditure declared. The Community contribution affected is thus … .

Based on the examination referred to above, it is my opinion that, for the above-mentioned period, the management and control system established for the programme … (name of operational programme, CCI code number, period) did not comply with the requirements of Articles 58 to 62 of Council Regulation (EC) No 1083/2006 and Section 3 of Commission Regulation (EC) No 1828/2006 and did not function effectively so as to provide reasonable assurance that statements of expenditure presented to the Commission are correct and, as a consequence, does not provide reasonable assurance that the underlying transactions are legal and regular.

MODEL FINAL CONTROL REPORT AND CLOSURE DECLARATION FOR OPERATIONAL PROGRAMMES PURSUANT TO ARTICLE 62(1)(e) OF COUNCIL REGULATION (EC) No 1083/2006 AND ARTICLE 18(3) OF THE PRESENT REGULATION

3. SUMMARY OF AUDITS CARRIED OUT PURSUANT TO ARTICLE 62(1)(a) AND (b) OF REGULATION (EC) No 1083/2006 AND ARTICLE 17 OF THE PRESENT REGULATION

5. ADDITIONAL WORK UNDERTAKEN BY AUDIT AUTHORITY IN PREPARING ITS CLOSURE DECLARATION

I, the undersigned, representing the … (name of the body designated by Member State), have for the operational programme … (name of the operational programme, CCI code number, period) examined the results of the audit work carried out on this programme by or under the responsibility of the audit authority in accordance with the audit strategy (and have carried out the additional work I judged necessary). The results of the examination and any additional work I have performed are summarised in the attached final control report (which also contains the information required by the annual control report for the period 1 January 2015 to 31 December 2016). I have planned and performed this work with a view to obtaining a reasonable assurance as to whether the payment application for the final balance of the Community contribution to the operational programme is correct and valid and the underlying transactions covered by the final statement of expenditure are legal and regular.

The examination was carried out in accordance with the audit strategy in respect of this programme and reported in the attached final control report pursuant to Article 62(1)(e) of Council Regulation (EC) No 1083/2006.

The cases of irregularity and error rates found in the audit work are not such as to preclude an unqualified opinion given the satisfactory way they have been dealt with by the managing authority and the trend in the level of their occurrence over time.

The cases of irregularity and error rates found in the audit work and the way they have been dealt with by the managing authority are such as to preclude an unqualified opinion. A list of these cases is provided in the final control report, together with an indication of their possible systemic character and the scale of the problem. The amounts of total declared expenditure and public contribution that could be affected are … respectively. As a consequence, the corresponding Community contribution that could be affected is …

If there were no limitations on the scope of the examination and the cases of irregularity and error rates and the way they have been dealt with by the managing authority do not preclude an unqualified opinion:

If there were limitations on the scope of the examination and/or the cases of irregularity and error rates and the way they have been dealt with by the managing authority call for a qualified opinion but do not justify an unfavourable opinion for all the expenditure concerned:

Based on the examination referred to above, it is my opinion that the final statement of expenditure presents fairly, in all material respects, the expenditure paid under the operational programme, that the application for payment of the final balance of the Community contribution to this programme is valid and that the underlying transactions covered by the final statement of expenditure are legal and regular, except with regard to the matters referred to at point 2 and/or to the observations at point 3 regarding the error rates and cases of irregularity and the way they have been dealt with by the managing authority, the impact of which is quantified above. I estimate the impact of these qualifications to be … of the total expenditure declared. The Community contribution affected is thus …

If there were major limitations on the scope of the examination error rates and cases of irregularity and the way they have been dealt with by the managing authority such that no conclusion can be reached on the reliability of the final statement of expenditure without considerable further work:

Based on the examination referred to above, and in particular in view of the matters referred to at point 2 and/or the error rates and cases of irregularity and the fact that they have not been dealt with satisfactorily by the managing authority as reported at point 3, it is my opinion that the final statement of expenditure does not present fairly, in all material respects, the expenditure paid under the operational programme, that, as a consequence, the application for payment of the final balance of the Community contribution to this programme is not valid and that the underlying transactions covered by the final statement of expenditure are not legal and regular.

MODEL DECLARATION FOR THE PARTIAL CLOSURE OF OPERATIONAL PROGRAMMES PURSUANT TO ARTICLE 18(5)

The managing authority for the programme … (name of operational programme, CCI code number, period) has submitted a statement of expenditure relating to operations (completed as at … (date up to which operations were completed)/completed between … and … (dates between which operations were completed)) and is applying for partial closure of the programme pursuant to Article 88(2)(b) of Regulation (EC) No 1083/2006 for these operations.

I, the undersigned, representing the … (name of body designated by the Member State) have examined the results of the audit work carried out on this programme as set out in the annual control reports and annual opinions issued pursuant to Articles 62(1)(d)(i) and (ii) of Council Regulation (EC) No 1083/2006 for the year/years …,

I have planned and performed this work with a view to obtaining a reasonable assurance as to whether the statement of expenditure concerned is correct and valid and the underlying transactions covered by the statement of expenditure are legal and regular.

Based on the examination referred to above, it is my opinion that the statement of expenditure on completed operations submitted by the managing authority for the programme … (name of operational programme, CCI code number, period) for the purpose of partial closure of the programme in respect of operations (completed as at …/completed between … and …) presents fairly, in all material respects, the expenditure paid and that the underlying transactions are legal and regular.

ANNUAL STATEMENT ON WITHDRAWN AND RECOVERED AMOUNTS, PENDING RECOVERIES AND IRRECOVERABLE AMOUNTS (ARTICLE 20(2))

1. WITHDRAWALS AND RECOVERIES DEDUCTED FROM STATEMENTS OF EXPENDITURE DURING THE YEAR 20…

NB: This section should be completed separately for each intermediate body. Indicate the authority which has delegated the function to the intermediate bodies.

MODEL OPINION ISSUED PURSUANT TO ARTICLE 71(2) OF COUNCIL REGULATION (EC) No 1083/2006 AND ARTICLE 25 OF THE PRESENT REGULATION ON THE COMPLIANCE OF MANAGEMENT AND CONTROL SYSTEMS

I, the undersigned, representing … (name of audit authority or the operationally independent body designated by the Member State pursuant to Article 71 (3) of Council Regulation (EC) No 1083/2006) as the body responsible for drawing up a report setting out the results of an assessment of the management and control systems established for the programme … (name of operational programme(s), CCI code number(s), period ( 30 )) and for giving an opinion on their compliance with Articles 58 to 62 of Regulation (EC) No 1083/2006, have carried out an examination in accordance with Article 25 of Commission Regulation (EC) No 1828/2006.

The examination was based on the description of the management and control systems received on dd/mm/yyyy from (name of body or bodies submitting the description). In addition, we have examined further information concerning … (subjects) and interviewed staff of … (bodies whose staff were interviewed).

The examination covered the managing, certifying and audit authorities, the body designated to receive the payments made by the Commission and to make the payments to beneficiaries and the following intermediate bodies (list …).

On the basis of the examination referred to above, it is my opinion that the management and control systems established for the programme(s) … (name of operational programme(s), CCI code number(s), period) comply with the requirements of Articles 58 to 62 of Council Regulation (EC) No 1083/2006 and Section 3 of Commission Regulation (EC) No 1828/2006.

On the basis of the examination referred to above, it is my opinion that the management and control systems for the programme(s) … (name of operational programme(s), CCI code number(s), period) comply with the requirements of Articles 58 to 62 of Council Regulation (EC) No 1083/2003 and Section 3 of Commission Regulation (EC) No 1828/2006, except in the following respects … ( 32 ).

My reasons for considering that this/these aspect(s) of the systems do(es) not comply with the requirements and my assessment of the seriousness are as follows ( 33 ):

On the basis of the examination referred to above, it is my opinion that the management and control systems for the programme(s) … (name of operational programme(s), CCI code number(s), period) do not comply with the requirements of Articles 58 to 62 of Council Regulation (EC) No 1083/2006 and Section 3 of Commission Regulation (EC) No 1828/2006.

FINANCIAL TABLE FOR THE NATIONAL STRATEGIC REFERENCE FRAMEWORK (NSRF) — INDICATIVE ANNUAL ALLOCATION BY FUND AND OPERATIONAL PROGRAMME (OP)

NB: Article 27(4)(e) and Article 28(3)(b) of the Regulation (EC) No 1083/2006 (in EUR)

1. FINANCING PLAN OF THE OPERATIONAL PROGRAMME GIVING THE ANNUAL COMMITMENT OF EACH FUND IN THE OPERATIONAL PROGRAMME

2. FINANCIAL PLAN OF THE OPERATIONAL PROGRAMME GIVING, FOR THE WHOLE PROGRAMMING PERIOD, THE AMOUNT OF THE TOTAL FINANCIAL ALLOCATION OF EACH FUND IN THE OPERATIONAL PROGRAMME, THE NATIONAL CONTERPART AND THE RATE OF REIMBURSEMENT BY PRIORITY AXIS

Provisional forecasts of likely payment applications by Fund and by programme ( 36 ), for the current and subsequent financial year (in EUR)

All indicators shall be broken down by gender, where possible. If the figures (data) are not yet available, information on when they will become available and when the managing authority will provide it to the Commission shall be stated.

Any significant problems relating to the compliance with Community law which have been encountered in the implementation of the operational programme and the measures taken to deal with them.

2.4. Changes in the context of the operational programme implementation (if relevant)

Description of any elements which, without stemming directly from the assistance of the operational programme, have a direct impact on the programme's implementation (such as legislative changes or unexpected socio-economic developments).

2.5. Substantial modification pursuant to Article 57 of Regulation (EC) No 1083/2006 (if relevant)

Cases where a substantial modification pursuant to Article 57 of Regulation (EC) No 1083/2006 has been detected.

Summary of the implementation of the arrangements made ensuring demarcation and coordination between the assistance from the ERDF, the ESF, the Cohesion Fund, the EAFRD, the EFF, and the interventions of the EIB and other existing financial instruments (Article 9(4) of Regulation (EC) No 1083/2006).

Monitoring and evaluation measures taken by the management authority or the monitoring committee, including difficulties encountered and steps taken to solve them.

2.8. National performance reserve (where applicable and only for the annual implementation report submitted for 2010)

For each quantified indicator in the priority axis and in particular the core indicators:

All indicators shall be broken down by gender, where possible. If the data are not yet available, the information on when they will become available and when the managing authority will provide it to the Commission shall be stated.

Information on any significant problems encountered in implementing the priority, including a summary of serious problems identified pursuant to the procedure in Article 62(1)(d)(i) of Regulation (EC) No 1083/2006, where appropriate, as well as any measures taken by the managing authority or the monitoring committee to solve the problems.

VERIFICATION OF ADDITIONALITY FOR 2007 to 2013 CONVERGENCE OBJECTIVE – EX ANTE VERIFICATION

Major project key details		Infrastructure application form	Productive investment application form	Type of data
Project name		B.1.1	B.1.1	Text
Name of company		n.a.	B.1.2	Text
SME		n.a.	B.1.3	Y/N
Priority theme dimension		B.2.1	B.2.1	Code(s)
Form of finance dimension		B.2.2	B.2.2	Code
Territorial dimension		B.2.3	B.2.3	Code
Economic activity dimension		B.2.4	B.2.4	Code(s)
NACE code		B.2.4.1	B.2.4.1	Code(s)
Nature of the investment		n.a.	B.2.4.2	Code
Location dimension		B.2.5	B.2.5	Code(s)
Fund		B.3.4	B.3.3	ERDF/CF
Priority Axis		B.3.4	B.3.4	Text
PPP		B.4.2.d	n.a.	Y/N
Construction phase — Start date		D.1.8A	D.1.5A	Date
Construction phase — Completion date		D.1.8B	D.1.5B	Date
Reference period		E.1.2.1	E.1.2.1	Years
Financial discount rate		E.1.2.2	E.1.2.2	%
Total investment cost		E.1.2.3	E.1.2.3	EUR
Total investment cost (present value)		E.1.2.4	n.a.	EUR
Residual value		E.1.2.5	n.a.	EUR
Residual value (present value)		E.1.2.6	n.a.	EUR
Revenues (present value)		E.1.2.7	n.a.	EUR
Operating cost (present value)		E.1.2.8	n.a.	EUR
Net revenue (present value)		E.1.2.9	n.a.	EUR
Eligible expenditure (present value)		E.1.2.10	n.a.	EUR
Estimated increase in annual turnover		n.a.	E.1.2.4	EUR
% change in turnover per person employed		n.a.	E.1.2.5	%
Financial rate of return (without Community grant)		E.1.3.1A	E.1.3.1A	%
Financial rate of return (with Community grant)		E.1.3.1B	E.1.3.1B	%
Financial net present value (without Community grant)		E.1.3.2A	E.1.3.2A	EUR
Financial net present value (with Community grant)		E.1.3.2B	E.1.3.2B	EUR
Eligible costs		H.1.12C	H.1.10C	EUR
Decision amount		H.2.1.3	H.2.1.1	EUR
Community grant		H.2.1.5	H.2.1.3	EUR
Expenditure already certified	Amount in EUR:	H.2.3	H.2.3	EUR
Economic costs and benefits		E.2.2	E.2.2	Text/EUR
Social discount rate		E.2.3.1	E.2.3.1	%
Economic rate of return		E.2.3.2	E.2.3.2	%
Economic net present value		E.2.3.3	E.2.3.3	EUR
Benefit/Cost ratio		E.2.3.4	E.2.3.4	Number
Number of jobs directly created during implementation phase		E.2.4.1A	E.2.4 a) 1A	Number
Average duration of jobs directly created during implementation phase		E.2.4.1B	E.2.4 a) 1B	Months/permanent
Number of jobs directly created during operational phase		E.2.4.2A	E.2.4 a) 2A	Number
Average duration of jobs directly created during operational phase		E.2.4.2B	E.2.4 a) 2B	Months/permanent
Number of jobs indirectly created during operational phase		n.a.	E.2.4 a) 4A	Number
Inter regional employment impact		n.a.	E.2.4 c)	Neg/Neut/Pos
EIA class of development		F.3.2.1	F.3.2.1	I/II/Not covered
EIA carried out if class II		F.3.2.3	F.3.2.3	Y/N
% of cost to compensate for negative environmental impacts		F.6	F.6	%
Other Community sources (EIB/EIF)		I.1.3	I.1.3	Y/N
Involvement of Jaspers		I.4.1	I.4.1	Y/N
Core indicators (please choose relevant core indicator from a drop down list available in the electronic system):		B.4.2B	n.a.	Number

BREAKDOWN OF PARTICIPANTS BY VULNERABLE GROUPS, IN ACCORDANCE WITH NATIONAL RULES

( 3 ) OJ L 161, 26.6.1999, p. 1. Regulation as last amended by Regulation (EC) No 173/2005 (OJ L 29, 2.2.2005, p. 3).

( 5 ) OJ L 178, 12.7.1994, p. 43. Regulation as amended by Regulation (EC) No 2035/2005 (OJ L 328, 15.12.2005, p. 8).

( 6 ) OJ L 191, 27.7.1994, p. 9. Regulation as amended by Regulation (EC) No 2168/2005 (OJ L 345, 28.12.2005, p. 15).

( 7 ) OJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation (EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).

( 12 ) OJ L 193, 29.7.2000, p. 39. Regulation as last amended by Regulation (EC) No 448/2004 (OJ L 72, 11.3.2004, p. 66).

( 13 ) OJ L 63, 3.3.2001, p. 21. Regulation as amended by Regulation (EC) No 2355/2002 (OJ L 351, 28.12.2002, p. 42).

( 23 ) European Regional Development Fund, Cohesion Fund and European Social Fund.

( 24 ) Indicate the body or bodies and the aspect(s) of their systems that did not comply with requirements and/or did not operate effectively.

( 25 ) Indicate for each body and each aspect of the system the reasons for the qualification.

( 26 ) Indicate for each body and each aspect the reasons for the adverse opinion.

( 29 ) Examples of such matters include systemic problems, weaknesses in management and control systems, lack of supporting documents, and cases under legal proceedings.

( 30 ) Where a common system applies to two or more operational programmes, a description of the common system may be accompanied by a single report and opinion.

( 31 ) Where the opinion is issued by the audit authority, the latter should provide a separate ‘Declaration of Competence and Operational Independence’ on its own functions under Article 62 of Council Regulation (EC) No 1083/2006.

( 32 ) Indicate the body or bodies and the aspects of their systems that appear not to comply with the requirements.

( 33 ) Indicate the reason(s) for the reservations entered for each body and on each aspect.

( 34 ) Indicate the reason(s) for the adverse opinion for each body and on each aspect.

( 35 ) In case of multi-objective operational programmes, the annual financing plan shall also be broken down by objective.

( 36 ) In case of multi-fund or multi-objective operational programmes, the forecasts shall be also indicated by Fund and by objective.

CONTENTS
CHAPTER I:	INTRODUCTION
Article 1:	Subject matter
CHAPTER II:	PROVISIONS IMPLEMENTING REGULATION (EC) No 1083/2006
SECTION 1:	INFORMATION AND PUBLICITY
Article 2:	Preparation of the communication plan
Article 3:	Examination of compatibility of the communication plan
Article 4:	Implementation and monitoring of the communication plan
Article 5:	Information measures for potential beneficiaries
Article 6:	Information measures for beneficiaries
Article 7:	Responsibilities of the managing authority relating to information and publicity measures for the public
Article 8:	Responsibilities of beneficiaries relating to information and publicity measures for the public
Article 9:	Technical characteristics of information and publicity measures for the operation
Article 10:	Network and exchange of experience
SECTION 2:	INFORMATION ON USE OF THE FUNDS
Article 11:	Indicative breakdown of use of the Funds
SECTION 3:	MANAGEMENT AND CONTROL SYSTEMS
Article 12:	Intermediate bodies
Article 13:	Managing authority and controllers
Article 14:	Accounting records
Article 15:	Audit trail
Article 16:	Audits of operations
Article 17:	Sampling
Article 18:	Documents presented by the audit authority
Article 19:	Availability of documents
Article 20:	Documents submitted by the certifying authority
Article 21:	Description of management and control systems
Article 22:	Information concerning the managing authority, the certifying authority and intermediate bodies
Article 23:	Information concerning the audit authority and bodies carrying out audits
Article 24:	Description of the management and control systems of the European territorial cooperation objective
Article 25:	Assessment of management and control systems
Article 26:	Derogations concerning operational programmes referred to in Article 74 of Regulation (EC) No 1083/2006
SECTION 4:	IRREGULARITIES
Article 27:	Definitions
Article 28:	Initial reporting — derogations
Article 29:	Urgent cases
Article 30:	Follow-up reporting
Article 31:	Electronic transmission
Article 32:	Reimbursement of judicial costs
Article 33:	Co-operation with Member States
Article 34:	Use of information
Article 36:	Irregularities under the reporting threshold
SECTION 5:	PERSONAL DATA
Article 37:	Protection of personal data
SECTION 6:	FINANCIAL CORRECTION FOR NON-RESPECT OF ADDITIONALITY
Article 38:	Rates of financial correction
SECTION 7:	ELECTRONIC EXCHANGE OF DATA
Article 39:	Computer system for data exchange
Article 40:	Content of computer system for data exchange
Article 41:	Functioning of computer system for data exchange
Article 42:	Transmission of data through the computer system for data exchange
SECTION 8:	FINANCIAL ENGINEERING INSTRUMENTS
Article 43:	General provisions
Article 44:	Holding funds
Article 45:	Additional provisions applicable to financial engineering instruments other than holding funds and urban development funds
Article 46:	Urban development funds
CHAPTER III:	PROVISIONS IMPLEMENTING REGULATION (EC) No 1080/2006
SECTION 1:	ELIGIBILITY OF EXPENDITURE ON HOUSING
Article 47:	Interventions in the field of housing
SECTION 2:	RULES OF ELIGIBILITY APPLICABLE TO OPERATIONAL PROGRAMMES FOR THE EUROPEAN TERRITORIAL COOPERATION OBJECTIVE
Article 48:	Rules on eligibility of expenditure
Article 49:	Financial charges and guarantee costs
Article 50:	Expenditure by public authorities relating to the implementation of operations
Article 51:	In-kind contributions
Article 52:	Overheads
Article 53:	Depreciation
CHAPTER IV:	FINAL PROVISIONS
Article 54:	Repeal
Article 55:	Entry into force
LIST OF ANNEXES
Annex I:	Instructions for creating the emblem and a definition of the standard colours
Annex II:	Categorisation of funds assistance for 2007-2013
Part A:	Codes by dimension
Part B:	Indicative breakdown of the Community contribution by category in the operational programme
Part C:	Cumulative breakdown of allocations of the Community contribution by category in the annual and final report on implementation
Annex III:	List of data on operations to be communicated on request to the Commission for the purpose of documentary and on-the-spot checks pursuant to Article 14
Annex IV:	Technical parameters for random statistical sampling pursuant to Article 17 (Sampling)
Annex V:	Model audit strategy under Article 62(1)(c) of Regulation (EC) No 1083/2006
Annex VI:	Model annual control report pursuant to Article 62(1)(d)(i) of Council Regulation (EC) No 1083/2006 and Article 18(2) of the present Regulation
Annex VII:	Model annual opinion pursuant to Article 62(1)(d)(ii) of Council Regulation (EC) No 1083/2006 and Article 18(2) of the present Regulation
Annex VIII:	Model final control report and closure declaration for operational programmes pursuant to Article 62(1)(e) of Council Regulation (EC) No 1083/2006 and Article 18(3) of the present Regulation
Part A:	Model financial control report
Part B:	Closure declaration
Annex IX:	Model declaration for the partial closure of operational programmes pursuant to Article 18(5)
Annex X:	Certificate and statement of expenditure and application for interim payment
Annex XI:	Annual statement on withdrawn and recovered amounts, pending recoveries and irrecoverable amounts (Article 20(2))
Annex XII:	Description of management and control systems
Annex XIII:	Model opinion issued pursuant to Article 71(2) of Council Regulation (EC) No 1083/2006 and Article 25 of the present Regulation on the compliance of management and control systems
Annex XIV:	Model statement of expenditure for a partial closure
Annex XV:	Financial table for the national strategic reference framework (NSRF) — indicative annual allocation by fund and operational programme (OP)
Annex XVI:	Financing plans for the operational programme
Annex XVII:	Forecast of likely payment applications
Annex XVIII:	Annual and final reporting
Annex XIX:	Verification of additionality for 2007 to 2013 convergence objective — ex ante verification
Annex XX:	Major project structured data to be encoded
Annex XXI:	Major project request for confirmation of assistance under Articles 39 to 41 of Regulation (EC) No 1083/2006 — European Regional Development Fund/Cohesion Fund — infrastructure investment
Annex XXII:	Major project request for confirmation of assistance under Articles 39 to 41 of Regulation (EC) No 1083/2006 — European Regional Development Fund/Cohesion Fund — Productive investment
Annex XXIII:	Data on participants in ESF operations

Code	Location (1)
	Code of region or area where operation is located/carried out (NUTS Level (2) or other, if appropriate, eg: cross-border, transnational, inter-regional)



(1) Field 4 of Annex IIIA. (2) The codes for this dimension may be found in the Nomenclature of Territorial Units for Statistics (NUTS) which appears in the Annex to Regulation (EC) No 1059/2003 of 26 May 2003, as amended by Regulation (EC) No 1888/2005 of 26 October 2005.

(in EUR)		(in EUR)		(in EUR)
Dimension 1 Priority theme		Dimension 2 Form of finance		Dimension 3 Territory
Code (1)	Amount (2)	Code (1)	Amount (2)	Code (1)	Amount (2)

Total		Total		Total
(1) The categories should be coded for each dimension using the standard classification. (2) Estimated amount of the Community contribution for each category.

Code (1) Dimension 1 Priority theme	Code (1) Dimension 2 Form of finance	Code (1) Dimension 3 Territory	Code (1) Dimension 4 Economic activity	Code (1) Dimension 5 Location	Amount (2)

Total
(1) The categories should be coded for each dimension using the standard classification. (2) Allocated amount of the Community contribution for each combination of categories.

Field 1.	Operational programme CCI code
Field 2.	Number of priority
Field 3.	Name of fund
Field 4.	Code of region or area where operation is located/carried out (NUTS Level or other, if appropriate)
Field 5.	Certifying authority
Field 6.	Managing authority
Field 7.	Intermediate body that declares expenditure to certifying authority, if applicable
Field 8.	Unique code number of operation
Field 9.	Short description of operation
Field 10.	Starting date of operation
Field 11.	Completion date of operation
Field 12.	Body issuing approval decision
Field 13.	Approval date
Field 14.	Reference of beneficiary
Field 15.	Currency (if not euro)
Field 16.
Field 17.	Total amount of eligible expenditure to be paid by beneficiaries
Field 18.	Corresponding public contribution
Field 19.

		Official Journal
		No	page	date
►M1	COMMISSION REGULATION (EC) No 846/2009 of 1 September 2009	L 250	1	23.9.2009

Code	Form of finance
01	Non-repayable aid
02	Aid (loan, interest subsidy, guarantees)
03	Venture capital (participation, venture-capital fund)
04	Other forms of finance

Code	Territory type
01	Urban
02	Mountains
03	Islands
04	Sparsely and very sparsely populated areas
05	Rural areas (other than mountains, islands or sparsely and very sparsely populated areas)
06	Former EU external borders (after 30 April 2004)
07	Outermost region
08	Cross-border cooperation area
09	Transnational cooperation area
10	Inter-regional cooperation area
00	Not applicable

Code	Economic activity (1)
01	Agriculture, hunting and forestry
02	Fishing
03	Manufacture of food products and beverages
04	Manufacture of textiles and textile products
05	Manufacture of transport equipment
06	Unspecified manufacturing industries
07	Mining and quarrying of energy producing materials
08	Electricity, gas, steam and hot water supply
09	Collection, purification and distribution of water
10	Post and telecommunications
11	Transport
12	Construction
13	Wholesale and retail trade
14	Hotels and restaurants
15	Financial intermediation
16	Real estate, renting and business activities
17	Public administration
18	Education
19	Human health activities
20	Social work, community, social and personal services
21	Activities linked to the environment
22	Other unspecified services
00	Not applicable
(1) Based on the statistical classification of economic activities in the European Community (NACE Rev. 1); Regulation (EC) No 29/2002 of 19 December 2001 amending Regulation (EEC) No 3037/90 of 9 October 1990.

Fund	Reference (CCI No)	Programme	Expenditure declared in reference year	Expenditure in reference year audited for the random sample		Amount and percentage (error rate) of irregular expenditure in random sample (3)		Other expenditure audited (4)	Amount of irregular expenditure in other expenditure sample	Total expenditure declared cumulatively	Total expenditure audited cumulatively as a percentage of total expenditure declared cumulatively
				(1)	(2)	Amount	%	(1)


(1) Amount of expenditure audited. (2) Percentage of expenditure audited in relation to expenditure declared to the Commission in the reference year. (3) Where the random sample covers more than one Fund or programme, the information is provided for the whole sample. (4) Expenditure from complementary sample and expenditure for random sample not in reference year.

	(A) withdrawals (1)				(B) recoveries (2)
a	b	c	d	e	f	g	h	i
Priority axis	Total amount of expenditure paid by beneficiaries withdrawn (3)	Corresponding public contribution withdrawn (4)	Total amount of expenditure withdrawn relating to irregularities reported under Art. 28(1) of Regulation (EC) No 1828/2006 (5)	Amount of corresponding public contribution withdrawn relating to irregularities reported under Art. 28(1) of Regulation (EC) No 1828/2006 (6)	Public contribution recovered (7)	Total amount of expenditure paid by beneficiaries (8)	Amount of public contribution recovered relating to irregularities reported under Art. 28(1) of Regulation (EC) No 1828/2006 (9)	Total amount of expenditure relating to irregularities reported under Art. 28(1) of Regulation (EC) No 1828/2006 (10)
1
2
3
4
…
Total
(1) Part A) of the table (withdrawals) is completed relating to expenditure already declared to the Commission and which has been withdrawn from the programme following detection of the irregularity. In this case the tables 2 and 3 of this annex will not need to be completed. (2) Part B) of the table (recoveries) is completed relating to expenditure which was left for the time being in the programme pending outcome of recovery proceedings and which has been deducted following recovery. (3) This amount is the total amount of expenditure already declared to the Commission which was affected by irregularities and which has been withdrawn. (4) This column has to be completed where the contribution of the Funds is calculated with reference to public eligible expenditure. (5) This amount is the part of the amount in column b) which has been reported as irregular under the reporting procedures laid down in Article 28 of Regulation (EC) No 1828/2006. (6) This column has to be completed where the contribution of the Funds is calculated with reference to public eligible expenditure. (7) This is the amount of public contribution effectively recovered from the beneficiary. (8) This amount is the amount of expenditure paid by the beneficiary corresponding to the public contribution in column f). (9) This amount relates to the part of the amount in column f) which has been reported as irregular under the reporting procedures laid down in Article 28 of Regulation (EC) No 1828/2006. (10) This amount relates to the part of the amount in column g) which has been reported as irregular under the procedures laid down in Article 28 of Regulation (EC) No 1828/2006.

a	b	c	d	e	f
Priority axis	Year of launch of recovery proceedings	Public contribution to be recovered (1)	Total amount of eligible expenditure paid by beneficiaries (2)	Total amount of expenditure relating to irregularities reported under Art. 28(1) of Regulation (EC) No 1828/2006 (3)	Amount of public contribution to be recovered relating to irregularities reported under Art. 28(1) of Regulation (EC) No 1828/2006 (4)
1	2007
	2008
	…
2	2007
	2008
	…
3	2007
	2008
Total
(1) This is the public contribution subject to recovery proceedings at the level of the beneficiary. (2) This is the amount of the amount of expenditure paid by the beneficiary corresponding to the public contribution in column c). (3) This amount relates to the part of the amount in column d) which has been reported as irregular under the reporting procedures laid down in Article 28 of Regulation (EC) No 1828/2006. (4) This amount relates to the part of the amount in column c) which has been reported as irregular under the reporting procedures laid down in Article 28 of Regulation (EC) No 1828/2006.

a	b	c	d	e	f	g	h	i	j	k
Name of operation	Priority axis	Irregularity identification number if applicable (1)	Year of launch of recovery proceedings	Public contribution declared as irrecoverable (2)	Total expenditure paid by beneficiaries declared as irrecoverable (3)	Date of last payment of public contribution to beneficiary	Date of establishment of irrecoverability	Reason for irrecoverability	Recovery measures taken including date of recovery order	Indicate whether the Community share should be borne by the budget of the European Union (Y/N) (4)
X			20..
Y			20..
Z			20..








		Total
(1) This is the reference number attributed to the irregularity or other identification referred to in Article 14(3) of Regulation (EC) No 1828/2006. (2) This is the amount of public contribution paid by the beneficiary for which it was established that recovery could not be carried out or for which recovery is not expected to take place. (3) This amount is the amount of expenditure paid by the beneficiary corresponding to the public contribution in column (e). (4) Community share is calculated by applying the co-financing rate at the level of the priority axis either with reference to column (e) or (f) pursuant to Article 53(1)(a) or (b) of Regulation (EC) No 1083/2006.

Convergence		Community participation
OP	Fund	Total	2007	2008	2009	2010	2011	2012	2013
ERDF and CF
OP1	ERDF
OP2	ERDF + CF
OP2	ERDF CF
OP3	ERDF + CF
OP3	ERDF CF
OP …	…
ESF
OP4	ESF
OP5	ESF
OP6	ESF
OP …	ESF
Total all Funds NSRF 2007-2013
Total ERDF
Total CF
Total ESF
EAFRD
EFF

Competitiveness/employment		Community participation
OP	Fund	Total	2007	2008	2009	2010	2011	2012	2013
ERDF
OP1	ERDF
OP2	ERDF
OP2	ERDF
OP3	ERDF
OP3	ERDF
OP …	…
ESF
OP4	ESF
OP5	ESF
OP6	ESF
OP …	ESF
Total all funds NSRF 2007-2013
Total ERDF
Total ESF

	Structural Funding (ERDF or ESF) (1)	Cohesion Fund (2)	Total (3) = (1) + (2)
2007 In regions without transitional support
In regions with transitional support
Total 2007
2008 In regions without transitional support
In regions with transitional support
Total 2008
2009 In regions without transitional support
In regions with transitional support
Total 2009
2010 In regions without transitional support
In regions with transitional support
Total 2010
2011 In regions without transitional support
In regions with transitional support
Total 2011
2012 In regions without transitional support
In regions with transitional support
Total 2012
2013 In regions without transitional support
In regions with transitional support
Total 2013
Total in regions without transitional support (2007-2013)
Total in regions with transitional support (2007-2013)
Grand total 2007-2013

	Community funding	National counterpart	Indicative breakdown of the national counterpart		Total funding	Co-financing rate	For information
	(a)	(b) (= (c) + (d))	National Public funding (c)	National private funding (1) (d)	(e) = (a) + (b)	(f) (2) = (a)/(e)	EIB contributions	Other funding (3)
Priority axis 1 Specify the Fund and the basis for calculating the Community contribution (total or public) (4)
Priority axis 2 Specify the Fund and the basis for calculating the Community contribution (total or public)
Priority axis … Specify the Fund and the basis for calculating the Community contribution (total or public)
Total
(1) To be completed only when priority axes are expressed in total costs. (2) This rate may be rounded to the nearest whole number in the table. The precise rate used to reimburse payments is the ratio (f). (3) Including national private funding when priority axes are expressed in public costs. (4) In case of pluri-objective operational programmes, indicate in addition the objective.

	Community co-financing (1)
	current year	following year
Operational programme 1 (CCI number) total
ERDF
ESF
Cohesion Fund
Operational programme 2 (CCI number) total
ERDF
ESF
Cohesion Fund
Grand total
(1) Only provisional forecasts of likely payment applications in respect of the Community contribution, and not total expenditure forecast, should be stated in the table. In the provisional forecasts of likely payment applications, the Community contribution should be stated for the year in question, and should not be cumulated from the beginning of the programming period.

OPERATIONAL PROGRAMME	Objective concerned
	Eligible area concerned
	Programming period
	Programme number (CCI No)
	Programme title
ANNUAL IMPLEMENTATION REPORT	Reporting year
ANNUAL IMPLEMENTATION REPORT	Date of approval of the annual report by the monitoring committee

Indicators		2007	2008	2009	2010	2011	2012	2013	2014	2015	Total
Indicator 1:	Achievement (1)
	Target (2)
	Baseline (3)
…	…
Indicator n:	Achievement
Indicator n:	Target
	Baseline
(1) The achievement should be expressed cumulatively – the value for the indicator should be the total achieved value by the end of the reporting year. Previous years' achievements can be updated when submitting later years' annual implementation reports, if more accurate information is available. (2) The target can be given either annually or for the whole programming period. (3) Baseline inserted only for first year when the information is available, unless the concept of a dynamic baseline is being used.

	Expenditure paid out by the beneficiaries included in payment claims sent to the managing authority	Corresponding public contribution	Expenditure paid by the body responsible for making payments to the beneficiaries	Total payments received from the Commission
Priority axis 1 Specify the Fund of which ESF type expenditure of which ERDF type expenditure	—	—	—	—
Priority axis 2 Specify the Fund of which ESF type expenditure of which ERDF type expenditure	—	—	—	—
Priority axis … Specify the Fund of which ESF type expenditure of which ERDF type expenditure	—	—	—	—
Grand total
Total in transitional regions in the grand total
Total in non-transitional regions in the grand total
ESF type expenditure in the grand total where the operational programme is co-financed by the ERDF (1)
ERDF type expenditure in the grand total where the operational programme is co-financed by the ESF (1)
(1) This field shall be completed where the operational programme is co-financed by the ERDF or the ESF where use is made of the option under Article 34(2) of Regulation (EC) No 1083/2006.