1.   Each joint operational programme shall be submitted by the Joint Managing Authority to the Commission after the explicit agreement of all countries having participated in and contributed to the preparation of the programme.

2.   The Commission shall examine the joint operational programme in order to verify that it contains all the elements referred to in Article 4, which shall involve in particular:

3.   Following the review of the joint operational programme, the Commission may ask the participating countries to provide additional information or, where necessary, to revise certain parts.

4.   The adoption of each joint operational programme shall be taken as an ex ante accreditation by the Commission of the management and control structures set up by the Joint Managing Authority.

5.   Each joint operational programme shall be adopted by a Commission decision for the whole of the programme's duration.

1.   The aim of monitoring and evaluating each joint operational programme shall be to improve the quality, effectiveness and consistency of implementation. The findings of evaluations shall be taken into account in future programming exercises.

2.   A mid-term evaluation of the joint operational programme shall be carried out as part of the programme review in accordance with the strategy paper.

This evaluation shall be carried out by the Commission, and its results, which shall be communicated to the Joint Monitoring Committee and Joint Managing Authority for the indicative programme may lead to adjustments in the programme.

3.   In addition to the mid-term evaluation, an evaluation of the joint operational programme, or a part thereof, may be carried out at any moment by the Commission.

4.   In the year following the end of the implementation phase of the projects financed by the joint operational programme, an ex post evaluation of the programme shall be carried out by the Commission.

1.   Adjustments to the joint operational programme financial table which merely involve the transfer from one priority to another of no more than 20 % of the Community funds initially allocated to each priority may be made directly by the Joint Managing Authority, with the prior approval of the Joint Monitoring Committee. The Joint Managing Authority shall inform the Commission of any such changes.

This rule shall apply to technical assistance financed by Community funds only with the written prior approval of the Commission.

2.   Following a reasoned request from the Joint Monitoring Committee or at the initiative of the Commission in agreement with the Joint Monitoring Committee, joint operational programmes may be reviewed and, if necessary, revised in the following cases:

3.   Any revision of a joint operational programme in the cases referred to in paragraph 2 shall be adopted by a decision of the Commission and shall require the signing of an amendment to the financing agreements referred to in Article 10.

1.   The management structures for joint operational programmes shall use one or more of the European Union's official languages as their working language(s).

2.   In order to take account of the partnership nature of the programmes, the project beneficiaries may submit to the Joint Managing Authority documents concerning their project in their national language, provided that this possibility is specifically mentioned in the programme and that the Joint Monitoring Committee makes provision, through the Joint Managing Authority, for any interpretation and translation that may be necessary.

3.   Interpreting and translation costs for all languages selected by the programme shall be met:

1.   Following the adoption of the joint operational programme by Commission decision, the programme shall start immediately in the Member States with the allocation in the European Neighbourhood and Partnership Instrument for cross-border cooperation from heading 1B of the Financial Perspective (Interinstitutional Agreement 2006/C 139/01) (2). Joint actions required to launch the programme may also be undertaken, namely:

2.   Commission decisions referred to in paragraph 1 shall be applicable in each partner country from the signing of a financing agreement by the country in accordance with Article 10.

1.   A financing agreement shall be established between the Commission and each partner country for each joint operational programme. The Joint Managing Authority designated under each joint operational programme may countersign the financing agreement.

2.   The joint operational programme adopted by the Commission shall be a technical annex to the financing agreement.

3.   Each financing agreement shall be concluded at the latest before the end of the year which follows the year of the Commission decision adopting the joint operational programme (N+1 rule).

4.   If the financing agreement is not concluded within the time-limit, the external component of the joint operational programme with the partner country may not be launched.

Where a programme includes several partner countries, it may be launched with each partner country as soon as that country has signed its financing agreement.

5.   If no partner country signs a financing agreement within the set time limit, the external component of the joint operational programme shall become null and void and paragraphs 3 and 4 of Article 44 shall apply.

1.   The Joint Monitoring Committee shall comprise representatives appointed by each participating country to take all decisions concerning the joint operational programme within the competence of the committee. Members shall be appointed as representatives of their countries on a functional basis and not on a personal basis. The committee shall also include a chairperson and a secretary. The secretary shall be chosen from the members of the Joint Managing Authority.

2.   In addition to the duly appointed representatives, it is important that the participating countries ensure the adequate participation of the civil society (local authorities, economic and social partners, civil society) to ensure the close association of different local stakeholders in the implementation of the joint operational programme.

3.   The Commission shall be invited to each meeting of the Joint Monitoring Committee at the same time as the participants and shall be informed of the results of its deliberations. It may take part in all or part of each committee meeting on its own initiative, as an observer and without any decision-making power.

1.   The appointed members of the Joint Monitoring Committee shall adopt its rules of procedure unanimously.

2.   The Joint Monitoring Committee shall take decisions by consensus. However, it may put certain decisions to a vote, particularly those relating to the final selection of projects and the grant amounts allocated to them. Within this voting procedure, each country has only one vote whatever the number of its representatives.

3.   The appointed representatives shall elect a chairperson. The committee may decide to elect a representative of the Joint Managing Authority or another outside person as chairperson.

The chairperson of the Joint Monitoring Committee shall act as arbitrator and lead discussions. The chairperson shall retain their vote, unless the position of chairperson has been given to a representative of the Joint Managing Authority or another outside person. In the latter case, the chairperson shall have no vote.

4.   The Joint Monitoring Committee shall meet as often as necessary and at least once a year. It shall be convened by its chairperson at the request of the Joint Managing Authority or following a duly justified request from one of its appointed members or from the Commission. It may also take decisions through written procedure at the initiative of its chairperson, the Joint Managing Authority or one of the participating countries. In case of a disagreement, any member may request that the decision be discussed at a meeting.

5.   Minutes shall be drawn up after each meeting of the Joint Monitoring Committee for signature by the chairperson and the secretary. Minutes shall be given to each member of the committee and to the Commission.

1.   The Joint Managing Authority shall, normally, be a national, regional or local public sector body. The Joint Managing Authority may also be a body governed by private law with a public-service mission.

This body must satisfy appropriate financial requirements and comply with the conditions provided for in Council Regulation (EC, Euratom) No 1605/2002 (3), in particular Article 54 thereof, and Commission Regulation (EC, Euratom) No 2342/2002 in particular Articles 38, 39 and 41 thereof (4).

2.   The participating countries shall entrust the Joint Managing Authority with the tasks involved in implementing the joint operational programme which have been entrusted to them as part of programme management. They shall be responsible, within the Joint Monitoring Committee, for checking that funds are used in accordance with the rules and principles governing programme management.

3.   The functioning of the Joint Managing Authority may be financed from the Community contribution for technical assistance and from the co financing, in particular from the contributions in kind provided for in Article 19(3).

4.   The accounts established by the Joint Managing Authority shall be subject to an annual ex post external audit carried out by an independent organisation as referred to in Article 31.

5.   The organisation of the Joint Managing Authority shall be based on international best practice in management and internal control and shall draw on management and internal control systems suited to the carrying out of its tasks in such a way as to ensure that its operations comply with laws, other rules and the principle of sound financial management.

In particular, operational management functions and financial management functions shall be organised separately within the Joint Managing Authority. The functions of authorising officer and accounting officer shall be separate and mutually incompatible.

6.   The Joint Managing Authority shall have an internal audit service which shall be independent from the departments performing authorising-officer, accounting-officer and management functions.

7.   The Joint Managing Authority shall put in place procedures to ensure that expenses declared under the programme are genuine and legitimate and shall establish reliable computerised accounting, monitoring and financial information systems.

8.   The Joint Managing Authority shall in particular respect the conditions and payment deadlines for the grant agreements and procurement contracts that it signs with third parties. Using appropriate verification procedures, it shall ensure that the funds paid under grant agreements or procurement contracts are used only for the purposes for which they were granted.

A general system shall be used for the management of accounts and the administrative and financial monitoring of grants and contracts (correspondence, follow-up letters or reminders, receipt of reports, etc.).

9.   The Joint Managing Authority shall without delay notify the Commission and the Joint Monitoring Committee of any change in its procedures or its organisation, or any other circumstance likely to affect programme implementation.

10.   The Joint Managing Authority, and the various beneficiaries, contractors and partners with which it signs contracts for the implementation of the projects, shall be subject to controls by the Commission, the European Court of Auditors and the European Anti-Fraud Office (OLAF).

1.   The Joint Managing Authority shall be responsible for managing and implementing the joint operational programme, including technical assistance, in line with the principle of sound financial management and the principles of economy, efficiency and effectiveness, and shall carry out any controls necessary in accordance with the rules and procedures provided for by the relevant regulations.

2.   The various tasks of the Joint Managing Authority shall include:

1.   Each Joint Managing Authority may, with the prior agreement of the Joint Monitoring Committee, use a Joint Technical Secretariat with the requisite resources to assist it with the day-to-day management of the activities under the joint operational programme.

The operation of the Joint Technical Secretariat shall be financed from the technical assistance budget.

2.   The Joint Technical Secretariat may, if necessary, establish small branch offices in participating countries for the purpose of informing potential beneficiaries in those countries of activities planned under the programme.

1.   Co-financing shall come from the own resources of the countries or bodies participating in each joint operational programme.

2.   Within each joint operational programme the participating countries shall be free to determine the source, amount and distribution of co-financing between objectives and priorities.

3.   Contributions in kind from the Joint Managing Authority may be considered as co-financing, subject to the prior approval of the Commission. In this case they shall be explicitly mentioned in the programme document.

1.   Co-financing shall amount to at least 10 % of the Community contribution to the joint operational programme, minus the amount of technical assistance financed from the Community contribution.

2.   Where possible, co-financing shall be distributed in a balanced way throughout the duration of the programme in such a way that the minimum objective of 10 % is achieved by the end of the programme.

1.   A single bank account in euro, specifically dedicated to the programme, shall be opened and managed by the service acting as accounting officer within the Joint Managing Authority. The account shall be set up in such a way that the transactions require signatures of both the authorising officer and the accounting officer.

2.   If the bank account bears interest, any interest generated by the pre-financing payments shall be assigned to the joint operational programme and shall be declared to the Commission in the final report referred to in Article 32.

1.   The contractual procedures for procurement contracts and grants necessary for implementation of the joint operational programme by the Joint Managing Authority shall be those applicable to external actions as defined in Articles 162 to 170 of Council Regulation (EC, Euratom) No 1605/2002 and Articles 231 to 256 of the Commission Regulation (EC, Euratom) No 2342/2002.

The procedures and related standard documents and contract templates to be used shall be those included in the Practical Guide to contract procedures for EC external actions with annexes in force at the time of the launching of procurement procedures or calls for proposals.

2.   The eligibility rules for participation in the calls for tenders and calls for proposals shall be those referred to in Article 14 of Regulation (EC) No 1638/2006 in conformity with Articles 40 and 41 of this Regulation.

3.   These provisions shall be applicable to the entire geographical area of the programme, both on the territory of the Member States and on the territory of the partner countries.

1.   The Commission shall make each payment from the Community contribution, subject to the availability of funds. The Commission shall automatically deduct any payment to the Joint Managing Authority from the oldest annual commitment tranche until the entire amount of this commitment has been spent. When the oldest annual commitment tranche has been entirely spent, the next annual commitment tranche may be used.

2.   Payments shall be made in euro to the bank account of the joint operational programme.

3.   Payments may take the form of pre-financing or the final balance.

1.   Each year, once the Joint Managing Authority has been notified of the budgetary commitment, it may request, as pre-financing, the transfer of up to 80 % of the Community contribution to the budget for the year in question.

From the second year of the joint operational programme, requests for pre-financing shall be accompanied by the provisional annual financial report covering all expenditure and revenue from the previous year not yet certified in the annual external audit report, and by the provisional budget detailing the Joint Managing Authority's commitments and payments for the following year.

After reviewing this report, assessing actual financing needs for the programme and verifying the availability of funds, the Commission shall proceed with the payment of all or part of the requested pre-financing.

2.   In the course of the year, the Joint Managing Authority may ask for the transfer of all or part of the balance of the annual Community contribution, as additional pre-financing.

In support of its request, the Joint Managing Authority shall submit an interim financial report showing that the expenditure actually incurred or likely to be incurred before the end of the year exceeds the amount of pre-financing already granted.

Such subsequent transfers shall constitute additional pre-financing in so far as they are not certified by an external audit report.

3.   In the second half of each year of the programme's implementation, the Commission shall clear previous pre-financing payments on the basis of eligible expenditure actually incurred, as certified by the annual external audit report referred to in Article 31.

On the basis of the results of this clearance, the Commission may proceed with the necessary financial adjustments.

1.   The Joint Managing Authority shall be responsible for the recovery of any unjustified or ineligible expenditure and for the reimbursement to the Commission of its share or amounts recovered, in proportion to its contribution to the programme.

Where ineligible expenditure already covered by a payment is identified on receipt of the final report for a contract or following a control or an audit, the Joint Managing Authority shall make out recovery orders to the beneficiaries or contractors concerned.

2.   Where the recovery relates to a claim against a beneficiary, contractor or partner established in a Member State and the Joint Managing Authority is unable to recover the debt within one year of issuing the recovery order, the Member State in which the beneficiary, contractor or partner is established shall pay the amount owing to the Joint Managing Authority and claim it back from the beneficiary, contractor or partner.

3.   Where the recovery relates to a claim against a beneficiary, contractor or partner established in a partner country and the Joint Managing Authority is unable to recover the debt within one year of the issuing of the recovery order, the Joint Managing Authority shall refer the case to the Commission, which, on the basis of a complete file, shall take over the task of recovering the amounts owing from the beneficiary, contractor or partner established in the partner country or directly from the national authorities of that country.

4.   Files transferred to a Member State or to the Commission shall contain all the documents needed for recovery as well as proof of steps taken by the Joint Managing Authority to the beneficiary or contractor with a view to recovering the amounts owed.

5.   The Joint Managing Authority shall exercise due diligence to ensure reimbursement within one year of the issuing of the recovery order. In particular it shall ensure that the claim is certain, of a fixed amount and due. Where the Joint Managing Authority is planning to waive recovery of an established debt, it shall ensure that the waiver is in order and complies with the principles of sound financial management and proportionality. The waiver decision must be substantiated and submitted to the Commission and the Joint Monitoring Committee for prior approval.

6.   When the debt has not been recovered or a complete file, as referred to in paragraph 4, has not been transferred to the Member State or the Commission, due to the negligence of the Joint Managing Authority, the Joint Managing Authority shall remain responsible for the recovery after the one year period has elapsed and the amounts due shall be declared ineligible for Community financing.

7.   Pursuant to paragraphs 2 and 3, the contracts concluded by the Joint Managing Authority as part of the programme shall contain a clause allowing the Commission or the Member State concerned to carry out recovery from a beneficiary, contractor or partner where the claim is still open one year after the issue of the recovery order by the Joint Managing Authority.

1.   Each year, by 30 June at the latest, the Joint Managing Authority shall submit to the Commission an annual report, approved by the Joint Monitoring Committee and certified by the audit report referred to in Article 31, on implementation of the joint operational programme from 1 January to 31 December of the previous year. The first annual report shall be submitted by 30 June of the second year of the programme.

2.   Each annual report shall contain:

1.   The internal audit service of the Joint Managing Authority shall each year implement a control programme to check the internal circuits and ensure procedures have been correctly applied within the Joint Managing Authority. It shall draw up an annual report and send it to the representative of the Joint Managing Authority.

2.   The Joint Managing Authority shall send the report referred to in paragraph 1 to the Commission and to the Joint Monitoring Committee as an annex to the annual report referred to in Article 28.

1.   Each year the Joint Managing Authority shall draw up a report on the previous year's implementation of the audit plan for the projects, referred to in Article 37. The report shall describe in detail the methodology used by the Joint Managing Authority for selecting a representative sample of projects, as well as the controls carried out, the recommendations made and the conclusions drawn by the Joint Managing Authority in relation to the financial management of the projects concerned.

2.   The Joint Managing Authority shall send the report referred to in paragraph 1 to the Commission and to the Joint Monitoring Committee as an annex to the annual report referred to in Article 28.

1.   Independently of the external audits of the Joint Managing Authority undertaken by the administration of the country in which the Joint Managing Authority is established, the Joint Managing Authority shall call upon an independent public body or contract an independent approved auditor who is a member of an internationally recognised supervisory body for statutory auditing to carry out each year an ex post verification of the revenue and expenditure presented by the Joint Managing Authority in its annual financial report, in accordance with the standards and ethics of the International Federation of Accountants (IFAC).

2.   The scope of the external audit shall cover the Joint Managing Authority's direct expenditure on technical assistance and project management (payments). The external audit report shall certify the statement of revenue and expenditure presented by the Joint Managing Authority in its annual financial report, and in particular it shall certify that stated expenditure has actually been incurred and is accurate and eligible.

3.   The Joint Managing Authority shall send the external audit report to the Commission and to the Joint Monitoring Committee as an annex to the annual report referred to in Article 28.

1.   In order to be eligible for Community financing, the expenditure of the joint operational programme must be incurred during the programme's period of execution, as defined in Article 43.

2.   To be considered eligible as technical assistance costs, costs relating to the implementation of the joint operational programme by the Joint Managing Authority must:

3.   Subject to paragraphs 1 and 2, the following costs shall be eligible:

1.   Expenditure for each project shall be incurred during the period of execution of each relevant contract.

2.   Eligible costs, non-eligible costs and the possibility of contributions in kind at project level shall be described in the contracts concluded with the beneficiaries or contractors.

1.   From the end of the first year of the joint operational programme, the Joint Managing Authority shall each year draw up an audit plan for the projects that it finances.

2.   The controls referred to in paragraph 1 shall be conducted by examining the documents or conducting on-the-spot checks of a sample of projects selected by the Joint Managing Authority based on a random statistical sampling method taking account of internationally recognized audit standards, in particular having regard to risk factors related to the projects’ value, type of operations, type of beneficiary or other relevant elements. The sample shall be sufficiently representative to warrant a satisfactory level of confidence in relation to the direct controls carried out by the Joint Managing Authority on the existence, accuracy and eligibility of expenditure claimed by the projects.