### commission powers and responsibilities the commission shall satisfy itself on the basis of available information , including the accreditation procedure , annual management declaration , annual control reports , annual audit opinion , annual implementation report and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving adequate prior notice . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits , shall have access to all records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the csf funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . 4 . the commission may require a member state to examine a complaint submitted to the commission concerning the selection or implementation of operations co - financed by the csf funds or the functioning of the management and control system . ### commission powers and responsibilities the commission shall satisfy itself , on the basis of available information , including information on the designation of bodies responsible for the management and control , the documents provided each year by the designated bodies under article 59 of the financial regulation , control reports , annual implementation reports and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving prior notice of a minimum of 10 working days , except in urgent cases where no notice shall be required . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits or checks , shall have access to all necessary records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the european structural and investment funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained without prejudice to the competences of national courts and in full respect of the fundamental rights of the concerned legal subjects . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . deleted


### article 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands , particular rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps . article 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments . ### article&#160 ; 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions . among the regions concerned , particular attention shall be paid to rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps , such as island regions . article&#160 ; 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments .


### in order to supplement and amend certain non - essential elements of this regulation , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of a code of conduct on the objectives and criteria to support the implementation of partnership , the adoption of the elements of the common strategic framework related to indicative actions of high european added value and corresponding principles for delivery , and priorities for cooperation , additional rules on the allocation of the performance reserve , the definition of the area and population covered by the local development strategies , detailed rules on financial instruments , the rules on certain types of financial instruments set up at national , regional , transnational or cross - border level , rules concerning funding agreements , transfer and management of assets , the arrangements for management and control , the rules on payment requests , and establishment of a system of capitalisation of annual instalments , the definition of the flat rate for revenue generating operations , the definition of the flat rate applied to indirect costs for grants based on existing methods and corresponding rates applicable in union policies , the responsibilities of member states concerning the procedure for reporting irregularities and recovery of sums unduly paid , the modalities of exchange of information of operations , the arrangements for the adequate audit trail , the conditions of national audits , the accreditation criteria for managing authorities and certifying authorities , the identification of commonly accepted data carriers , and the criteria for establishing the level of financial correction to be applied . the commission should also be empowered to amend , by means of delegated acts , annexes i and vi , both of which contain non - essential elements to this regulation , in order to address future adaptation needs . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . ### in order to supplement and amend certain non - essential elements of this regulation , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of a code of conduct on the objectives and criteria to support the implementation of partnership , the methodology used to provide information on the support for climate change objectives , the criteria for the definition of the area and population covered by the local development strategies , detailed rules on financial instruments , the rules on certain types of financial instruments set up at national , regional , transnational or cross - border level , rules concerning the minimum provisions to be included in funding agreements and strategy documents , transfer and management of assets , management and control , the rules on payment requests , and establishment of a system of capitalisation of annual instalments , the definition of the flat rate and the method of calculation of current value of the net revenue for revenue generating operations , the definition of the flat rate applied to indirect costs for grants based on existing methods and corresponding rates applicable in union policies , methodology to be used in carrying out the cost - benefit analysis on major projects , decision on the extension of period applied in the case of operations implemented under ppp structures , the responsibilities of member states concerning the procedure for reporting irregularities and recovery of sums unduly paid , detailed rules for establishing a system to record and store data in computerised form on each operation and the modalities of exchange of information of operations , the criteria to assess compliance of authorities relating to the internal control environment , risk management , control activities , information and communication and monitoring systems , the adequate audit trail , the conditions of national audits , the identification of accepted data carriers , the rules concerning the use of data collected during audits , detailed rules concerning the cases that are to be regarded as serious deficiencies within the meaning of article 136 and the criteria for establishing the level of financial correction to be applied . the commission should also be empowered to amend annex v in order to address future adaptation needs . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level .


### each operational programme , except those where technical assistance is undertaken under a specific operational programme , shall include : a description of specific actions to take into account environmental protection requirements , resource efficiency , climate change mitigation and adaptation , disaster resilience and risk prevention and management , in the selection of operations ; a description of the specific actions to promote equal opportunities and prevent any discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation during the preparation , design and implementation of the operational programme and in particular in relation to access to funding , taking account of the needs of the various target groups at risk of such discrimination and in particular the requirements of ensuring accessibility for disabled persons ; a description of its contribution to the promotion of equality between men and women and , where appropriate , the arrangements to ensure the integration of gender perspective at operational programme and operation level . member states shall submit an opinion of the national equality bodies on the measures set out in points and with the proposal for an operational programme under the investment for growth and jobs goal . ### the operational programme shall describe , taking into account its content and objectives , the integrated approach to territorial development , having regard to the partnership agreement , and showing how it contributes to the accomplishment of the programme objectives and expected results , specifying , where appropriate , the following : the approach to the use of community led local development instruments and the principles for identifying the areas where it will be implemented ; the indicative amount of the erdf support for integrated actions for sustainable urban development , to be implemented in accordance with the provisions under article 7 of regulation no [ erdf ] and the indicative allocation of esf support for integrated actions ; the approach to the use of the integrated territorial investment instrument other than in cases covered by , and their indicative financial allocation from each priority axis ; the arrangements for interregional and transnational actions , within the operational programmes , with beneficiaries located in at least one other member state ; where member states and regions participate in macro - regional strategies and sea - basin strategies , subject to the needs of the programme area as identified by the member state , the contribution of the planned interventions to such strategies .


### ex ante conditionalities shall be defined for each csf fund in the fund - specific rules . 2 . member states shall assess whether the applicable ex ante conditionalities are fulfilled . 3 . where ex ante conditionalities are not fulfilled at the date of transmission of the partnership contract , member states shall set out in the partnership contract a summary of the actions to be taken at national or regional level and the timetable for their implementation , to ensure their fulfilment not later than two years after the adoption of the partnership contract or by 31 december 2016 , whichever is earlier . 4 . member states shall set out the detailed actions relating to the fulfilment of ex ante conditionalities , including the timetable for their implementation , in the relevant programmes . 5 . the commission shall assess the information provided on the fulfilment of ex ante conditionalities in the framework of its assessment of the partnership contract and programmes . it may decide , when adopting a programme , to suspend all or part of interim payments to the programme pending the satisfactory completion of actions to fulfil an ex ante conditionality . the failure to complete actions to fulfil an ex ante conditionality by the deadline set out in the programme shall constitute a basis for suspending payments by the commission . 6 . paragraphs 1 to 5 shall not apply to programmes under the european territorial cooperation goal . ### deleted 2 . member states shall assess in accordance with their institutional and legal framework and in the context of the establishment of the partnership agreement and programmes whether the ex ante conditionalities laid down in the respective fund - specific rules and the general ex - ante conditionalities set out in annex v are applicable to the specific objectives pursued within the priorities of their programmes and whether the applicable ex ante conditionalities are fulfilled . ex ante conditionalities shall apply only to the extent and provided that the definition laid down in article 2 is complied with regarding the specific objectives pursued under the priorities of the programme . the assessment of fulfilment shall be limited to the criteria laid down in the fund - specific rules . 3 . the partnership agreement shall set out a summary of the assessment of the fulfilment of the applicable ex ante conditionalities at national level or regional level and for those which , pursuant to the assessment referred to in paragraph 2 , are not fulfilled at the date of submission of the partnership agreement , the priorities affected , the responsible bodies , actions to be taken to fulfil the ex ante conditionality , and the timetable for such actions . each programme shall , in accordance with the fund - specific rules , indicate the applicable ex ante conditionalities which , pursuant to the assessment referred to in paragraph 2 , are not fulfilled at the date of submission of the partnership agreement . member states shall fulfil these ex ante conditionalities not later than 31 december 2016 and report on their fulfilment not later than in the annual implementation report in 2017 or the progress report in 2017 . deleted 5 . the commission shall assess the consistency and the adequacy of the information provided by the member state on the fulfilment of applicable ex ante conditionalities in the framework of its assessment of the partnership agreement and / or programmes . this assessment of fulfilment shall be limited to the criteria laid down in the fund - specific rules and shall respect national and regional competences to decide on the specific and adequate policy measures including the content of strategies . the commission may decide , when adopting a programme , to suspend all or part of interim payments to the relevant priority of this programme pending the satisfactory completion of actions referred to in paragraph 3 where necessary to avoid significant prejudice to the effectiveness and efficiency of the achievement of the specific objectives of the priority concerned . the failure to complete actions to fulfil an applicable ex ante conditionality which has not been fulfilled at the date of submission of the respective programme , by the deadline set out in paragraph 3 , shall constitute a basis for suspending interim payments by the commission . 5a . the commission shall without delay lift the suspension of interim payments for a priority where a member state has completed actions relating to the fulfilment of ex ante conditionalities applicable to that programme and which had not been fulfilled at the time of the decision of the commission on the suspension . it shall also without delay lift the suspension where following an amendment of the programme related to the priority concerned the ex ante conditionality concerned is no longer applicable . 6 . paragraphs 1 to 5a shall not apply to programmes under the european territorial cooperation goal .


### where ex ante conditionalities are not fulfilled at the date of transmission of the partnership contract , member states shall set out in the partnership contract a summary of the actions to be taken at national or regional level and the timetable for their implementation , to ensure their fulfilment not later than two years after the adoption of the partnership contract or by 31 december 2016 , whichever is earlier . ### the partnership agreement shall set out a summary of the assessment of the fulfilment of the applicable ex ante conditionalities at national level and for those which , pursuant to the assessment referred to in paragraph 2 , are not fulfilled at the date of submission of the partnership agreement , the priorities affected , the responsible bodies , actions to be taken to fulfil the ex ante conditionality , and the timetable for such actions . each programme shall , in accordance with the fund - specific rules , indicate the applicable ex ante conditionalities which , pursuant to the assessment referred to in paragraph 2 , are not fulfilled at the date of submission of the partnership agreement . member states shall fulfil these ex ante conditionalities not later than 31 december 2016 and report on their fulfilment not later than in the annual implementation report in 2017 or the progress report in 2017 in accordance with article 44 .


### the commission shall assess the information provided on the fulfilment of ex ante conditionalities in the framework of its assessment of the partnership contract and programmes . it may decide , when adopting a programme , to suspend all or part of interim payments to the programme pending the satisfactory completion of actions to fulfil an ex ante conditionality . the failure to complete actions to fulfil an ex ante conditionality by the deadline set out in the programme shall constitute a basis for suspending payments by the commission . ### the commission may decide , when adopting a programme , to suspend all or part of interim payments to the relevant priority of this programme pending the completion of actions referred to in paragraph 3 where necessary to avoid significant prejudice to the effectiveness and efficiency of the achievement of the specific objectives of the priority concerned . the failure to complete actions to fulfil an applicable ex ante conditionality which has not been fulfilled at the date of submission of the respective programme , by the deadline set out in paragraph 3 , shall constitute a basis for suspending interim payments by the commission to the affected priorities of the programme . in both cases , the scope of suspension shall be proportional taking into account the actions to be taken and the funds at risk .


### the implementing provisions for the operational programme containing : identification of the accrediting body , the managing authority , the certifying authority , where applicable , and the audit authority ; identification of the body to which payments will be made by the commission . ### deleted deleted deleted


### the objectives of the csf funds should be pursued in the framework of sustainable development and the union ' s promotion of the aim of protecting and improving the environment as set out in article 11 and 19 of the treaty , taking into account the polluter pays principle . the member states should provide information on the support for climate change objectives in line with the ambition to devote at least 20% of the union budget to this end , using a methodology adopted by the commission by implementing act . ### the objectives of the european structural and investment funds should be pursued in the framework of sustainable development and the union ' s promotion of the aim of preserving , protecting and improving the quality of the environment as set out in articles 11 and 191 of the treaty , taking into account the polluter pays principle . to this end the member states should provide information on the support for climate change objectives in line with the ambition to devote at least 20% of the union budget using a methodology based on the categories of intervention or measures adopted by the commission by implementing act .


### the part of the union budget allocated to the csf funds shall be implemented within the framework of shared management between the member states and the commission , in accordance with article 53 of the financial regulation , with the exception of the amount of the cf transferred to the connecting europe facility referred to in article 84 and innovative actions at the initiative of the commission under article 9 of the erdf regulation , and technical assistance at the initiative of the commission . ### the part of the union budget allocated to the csf funds shall be implemented within the framework of shared management between the member states and the commission , in accordance with article 53 of the financial regulation , with the exception of innovative actions at the initiative of the commission under article 9 of the erdf regulation , and technical assistance at the initiative of the commission .


### in order to ensure that expenditure co - financed by the union budget in any given financial year is used in accordance with the applicable rules , an appropriate framework should be created for the annual clearance of accounts . under this framework , the accredited bodies should submit to the commission , in respect of each programme , a management declaration of assurance accompanied by the certified annual accounts , a summary report of controls and an independent audit opinion and control report . ### in order to ensure that expenditure co - financed by the union budget in any given financial year is used in accordance with the applicable rules , an appropriate framework should be created for the examination and acceptance of accounts . under this framework , the designated bodies should submit to the commission , in respect of each programme , a management declaration of assurance accompanied by the certified accounts , a summary report of controls and an independent audit opinion and control report .


### implementation of financial instruments in implementing article 32 , managing authorities may provide a financial contribution to the following financial instruments : financial instruments set up at union level , managed directly or indirectly by the commission ; financial instruments set up at national , regional , transnational or cross - border level , managed by or under the responsibility of the managing authority . 2 . title [ viii ] of the financial regulation shall apply to financial instruments referred to in paragraph 1 . contributions from the csf funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective csf funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . 3 . for financial instruments under paragraph 1 , the managing authority may provide a financial contribution to the following financial instruments : financial instruments complying with the standard terms and conditions laid down by the commission , by means of implementing acts in accordance with the examination procedure referred to in article 143 ; already existing or newly created financial instruments which are specifically designed to achieve the intended purpose and which respect the applicable union and national rules . the commission shall adopt delegated acts in accordance with article 142 laying down the specific rules regarding certain types of financial instruments referred to in point , as well as the products that may be delivered through such instruments . 4 . when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other csf funds , dedicated to implementing financial instruments consistent with the objectives of the respective csf funds , which will undertake implementations tasks ; the support to such investments shall be limited to the amounts necessary to implement new financial instruments consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority , selected in accordance with applicable union and national rules ; a body governed by public or private law selected in accordance with applicable union and national rules . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down rules concerning funding agreements , the role and responsibility of the entities to which the implementation tasks are entrusted , as well as management costs and fees . 5 . the entities referred to in paragraph 4 and , when implementing financial instruments through funds of funds , may further entrust part of the implementation to financial intermediaries provided that these entities ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in [ articles 57 and 131 , and ] of the financial regulation1 . financial intermediaries shall be selected on the basis of open , transparent , proportionate and non - discriminatory procedures , avoiding conflicts of interests . 6 . the entities referred to in paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority . the assets held on such fiduciary accounts shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . 7 . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down detailed rules concerning specific requirements regarding the transfer and management of assets managed by the entities to which implementation tasks are entrusted , as well as conversion of assets between euro and national currencies . ### implementation of financial instruments in implementing article 32 , managing authorities may provide a financial contribution to the following financial instruments : financial instruments set up at union level , managed directly or indirectly by the commission ; financial instruments set up at national , regional , transnational or cross - border level , managed by or under the responsibility of the managing authority . 2 . contributions from the european structural and investment funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective european structural and investment funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . contributions to such financial instruments are subject to the provisions of this regulation unless exceptions are expressly provided for . this is without prejudice to the rules governing the set up and functioning of the financial instruments under the financial regulation , unless they conflict with the rules of the cpr , in which case the latter prevail . 3 . for financial instruments under paragraph 1 , the managing authority may provide a financial contribution to the following financial instruments : financial instruments complying with the standard terms and conditions laid down by the commission , by means of implementing acts in accordance with the examination procedure referred to in article 143 ; already existing or newly created financial instruments which are specifically designed to achieve the specific objectives set out under the relevant priority . deleted 4 . when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other european structural and investment funds , dedicated to implementing financial instruments consistent with the objectives of the respective european structural and investment funds , which will undertake implementation tasks ; the support to such entities shall be limited to the amounts necessary to implement new investments in accordance with the provisions under article 32 and consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority ; a body governed by public or private law . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . in this case the managing authority is considered to be the beneficiary in the meaning of article 2 . when implementing the financial instrument , the bodies referred to in a ) b ) and c ) shall ensure compliance with applicable eu and national law , including rules covering european structural and investment funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism and tax fraud . they shall not be established and shall not maintain business relations with entities incorporated in territories , whose jurisdictions do not cooperate with the union in relation to the application of the internationally agreed tax standards and shall transpose such requirements in their contracts with the selected financial intermediaries . deleted 4 . 1 . a . where a financial instrument is implemented under paragraphs and , subject to the implementation structure of the financial instrument , the terms and conditions for contributions from programmes to financial instruments shall be set out in funding agreements in accordance with annex x at the following levels : where applicable , between the duly mandated representatives of the managing authority and the body that implements the fund of funds , and between the duly mandated representatives of the managing authority , or where applicable , the body that implements the fund of funds , and the body that implements the financial instrument . 4 . 1 . b . for financial instruments implemented under paragraph , the terms and conditions for contributions from programmes to financial instruments shall be set out in a strategy document in accordance with annex x to be examined by the monitoring committee . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down additional specific rules on the role , liabilities and responsibility of bodies implementing financial instruments , related selection criteria and products that may be delivered through financial instruments in accordance with the provisions under article 32 . the commission shall notify the delegated acts , adopted in accordance with article 142 , simultaneously to the european parliament and the council within four months of the adoption of this regulation . 5 . the bodies referred to in paragraph 4 and , when implementing funds of funds may further entrust part of the implementation to financial intermediaries provided that these entities ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in article 140 , and of the financial regulation1 . financial intermediaries shall be selected on the basis of open , transparent , proportionate and non - discriminatory procedures , avoiding conflicts of interests . 6 . the bodies referred to in paragraph 4 to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority , or set up the financial instrument as a separate block of finance within a financial institution . in case of a separate block of finance , separate accounting shall distinguish programme resources invested in the financial instrument from the other resources available in the financial institution . the assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity . 6a . national public and private contributions , including where relevant in - kind contributions as referred to under article 32 , may be provided at the level of the fund of funds , at the level of the financial instrument or at the level of final recipients , in accordance with fund - specific rules . 7 . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down detailed rules concerning specific requirements regarding the transfer and management of assets managed by the entities to which implementation tasks are entrusted , as well as conversion of assets between euro and national currencies .


### the commission shall be empowered to adopt delegated acts in accordance with article 142 to provide for a european code of conduct that lays down objectives and criteria to support the implementation of partnership and to facilitate the sharing of information , experience , results and good practices among member states . ### the commission shall be empowered to adopt delegated act in accordance with article 142 to provide for a european code of conduct in order to support and facilitate member states in the organisation of the partnership in accordance with paragraphs 1 and 2 . the code of conduct shall set out the framework , within which the member states in accordance with their institutional and legal framework as well as their national and regional competences , shall pursue the implementation of partnership . the code of conduct , while fully respecting the principles of subsidiarity and proportionality , shall lay down the following elements : the main principles for transparent procedures to be followed for the identification of the relevant partners including , where appropriate , their umbrella organisations in order to facilitate member states to designate the most representative relevant partners , in accordance with their institutional and legal framework ; the main principles and best practices as regards the involvement of the different categories of relevant partners , as set out in paragraph 1 , in the preparation of the partnership agreement and programmes , the information to be provided on their involvement , as well as at the various stages of implementation ; the best practices as regards the formulation of the rules of membership and internal procedures of monitoring committees to be decided , as appropriate , by the member states or the monitoring committees of programmes in accordance with the relevant provisions of this regulation and the fund - specific rules ; the main objectives and best practices in cases where the managing authority involves the relevant partners in the preparation of calls for proposals and in particular the best practices to avoid potential conflicts of interest in cases where relevant partners may be potential beneficiaries , and for the involvement of the relevant partners in the preparation of progress reports and in relation to monitoring and evaluation of programmes in accordance with the relevant provisions of this regulation and the fund - specific rules ; the indicative areas , themes and best practices in order that the competent authorities of the member states may use the european structural and investment funds including technical assistance in strengthening the institutional capacity of relevant partners in accordance with the relevant provisions of this regulation and the fund - specific rules ; the role of the commission in the dissemination of good practices ; the main principles and best practices that will facilitate the member states ' assessment of the implementation of partnership and its added value . the provisions of the code of conduct shall not in any way contradict the relevant provisions of this regulation or the fund specific rules .


### content and adoption of operational programmes under the investment for growth and jobs goal ### content , adoption and amendment of operational programmes under the investment for growth and jobs goal


### coherence and consistency with the union ' s economic governance member states shall give particular attention to prioritising growth - friendly expenditure , including spending on education , research , innovation and energy efficiency and expenditure to facilitate the access of smes to finance and to ensure environmental sustainability , the management of natural resources and climate action , and to ensuring the effectiveness of such spending . they shall also take account of maintaining or reinforcing the coverage and effectiveness of employment services and active labour market policies , with a focus on youth unemployment . 2 . in preparing their partnership contracts , member states shall programme the csf funds taking into account the most recent relevant country - specific recommendations issued by the council on the basis of article 121 and article 148 of the treaty on the functioning of the european union in accordance with their respective roles and obligations . member states shall also take into account relevant council recommendations based on the stability and growth pact and the economic adjustment programmes . each member state shall set out in the partnership contract , in accordance with article 14 of this regulation , how different union and national funding streams contribute to addressing the challenges identified by the relevant country - specific recommendations concerned and the objectives set out in their national reform programmes in close consultation with the responsible regional and local authorities . ### contribution of european structural and investment funds to the union’s strategy for smart sustainable and inclusive growth and coherence with the union ' s economic governance - 1 . to support effective targeting of smart , sustainable and inclusive growth in the partnership agreements and programmes this regulation identifies eleven thematic objectives set out in article 9 corresponding to the priorities of the europe 2020 strategy which shall receive support from the european structural and investment funds . in line with these thematic objectives , member states shall in order to ensure critical mass necessary to deliver growth and jobs , concentrate support in accordance with article 16 of this regulation and fund specific rules on thematic concentration and shall ensure the effectiveness of spending . they shall give particular attention to prioritising growth - friendly expenditure , including spending on education , research , innovation and energy efficiency and expenditure to facilitate the access of smes to finance , and to ensure environmental sustainability , and the management of natural resources and climate action as well as to modernise public administration . they shall also take account of maintaining or reinforcing the coverage and effectiveness of employment services and active labour market policies to fight unemployment , with a focus on youth and tackle the social consequences of the crisis and promote social inclusion . 2 . to ensure consistency with priorities established in the context of the european semester , in preparing their partnership agreements , member states shall plan the use of the european structural and investment funds taking into account the national reform programmes , where appropriate , and the most recent relevant country - specific recommendations and relevant council recommendations adopted in accordance with article 121 and article 148 of the treaty on the functioning of the european union in accordance with their respective roles and obligations . member states , where necessary , shall also take into account relevant council recommendations based on the stability and growth pact and the economic adjustment programmes . 2a . in order to determine the way in which the european structural and investment funds can most effectively contribute to the europe 2020 strategy , and to take account of the treaty objectives , including economic , social and territorial cohesion , member states shall select the thematic objectives for the planned use of the european structural and investment funds within the appropriate national , regional and local contexts .


### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of national support . ### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of both public and private national support . current national co - financing rates should not be raised in the present economic situation which already poses numerous challenges for the regions . in capital regions which are the only more developed region in a member state , more flexibility should be provided for .


### without prejudice to the rules governing state aid , the managing authority shall ensure that all supporting documents on operations are made available to the commission and the european court of auditors upon request for a period of three years . this three year period shall run from 31 december of the year of the clearance of accounts decision pursuant to article 130 or , at the latest , from the date of payment of the final balance . ### without prejudice to the rules governing state aid , the managing authority shall ensure that all supporting documents regarding expenditure supported by the funds on operations for which the total eligible expenditure is less than eur 1 . 000 . 000 , are made available to the commission and the european court of auditors upon request for a period of three years from 31 december following the submission of the accounts in which the expenditure of the operation is included . in the case of all other operations , all supporting documents are made available for a three year period from 31 december following the submission of the accounts in which the final expenditure of the completed operation is included .


### commission powers and responsibilities the commission shall satisfy itself on the basis of available information , including the accreditation procedure , annual management declaration , annual control reports , annual audit opinion , annual implementation report and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving adequate prior notice . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits , shall have access to all records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the csf funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . 4 . the commission may require a member state to examine a complaint submitted to the commission concerning the selection or implementation of operations co - financed by the csf funds or the functioning of the management and control system . ### commission powers and responsibilities the commission shall satisfy itself , on the basis of available information , including information on the designation of bodies responsible for the management and control , the documents provided each year by the designated bodies under article 59 of the financial regulation , control reports , annual implementation reports and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving prior notice of a minimum of 10 working days , except in urgent cases where no notice shall be required . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits or checks , shall have access to all necessary records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the european structural and investment funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained without prejudice to the competences of national courts and in full respect of the fundamental rights of the concerned legal subjects . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . deleted


### each csf fund shall support the following thematic objectives in accordance with its mission in order to contribute to the union strategy for smart , sustainable and inclusive growth : strengthening research , technological development and innovation ; enhancing access to , and use and quality of , information and communication technologies ; enhancing the competitiveness of small and medium - sized enterprises , the agricultural sector and the fisheries and aquaculture sector ; supporting the shift towards a low - carbon economy in all sectors ; promoting climate change adaptation , risk prevention and management ; protecting the environment and promoting resource efficiency ; promoting sustainable transport and removing bottlenecks in key network infrastructures ; promoting employment and supporting labour mobility ; promoting social inclusion and combating poverty ; investing in education , skills and lifelong learning ; enhancing institutional capacity and an efficient public administration . thematic objectives shall be translated into priorities specific to each csf fund and set out in the fund - specific rules . ### each european structural and investment fund , in order to contribute to the union strategy for smart , sustainable and inclusive growth as well as the fund - specific missions pursuant to their treaty - based objectives , including economic , social and territorial cohesion shall support the following thematic objectives : strengthening research , technological development and innovation ; enhancing access to , and use and quality of , information and communication technologies ; enhancing the competitiveness of small and medium - sized enterprises , the agricultural sector and the fisheries and aquaculture sector ; supporting the shift towards a low - carbon economy in all sectors ; promoting climate change adaptation , risk prevention and management ; preserving and protecting the environment and promoting resource efficiency ; promoting sustainable transport and removing bottlenecks in key network infrastructures ; promoting sustainable and quality employment and supporting labour mobility ; promoting social inclusion , combating poverty and any discrimination ; investing in education , training and vocational training for skills and lifelong learning ; enhancing institutional capacity of public authorities and stakeholders and an efficient public administration . thematic objectives shall be translated into priorities specific to each of the european structural and investment funds and set out in the fund - specific rules .


### the commission shall adopt delegated acts , in accordance with article 142 , laying down the modalities of the exchange of information in paragraph 2 . 9 . the commission shall adopt delegated acts , in accordance with article 142 , laying down rules concerning arrangements for the audit trail referred to in paragraph 4 . 10 . the commission shall adopt , by means of implementing acts , the model for the management declaration referred to in paragraph 4 . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . ### the commission shall be empowered to adopt delegated acts , in accordance with article 142 laying down rules specifying the information in relation to the data to be recorded and stored in computerised form within monitoring system established under point of paragraph 2 . the commission shall adopt implementing acts laying down the technical specifications of the system established under point of paragraph 2 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 143 . 9 . the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down the detailed minimum requirements for the audit trail referred to in paragraph 4 in respect of the accounting records to be maintained and the supporting documents to be held at the level of the certifying authority , managing authority , intermediate bodies and beneficiaries . 101 . the commission shall adopt implementing acts , in accordance with the advisory procedure referred to in article 143 laying down uniform conditions on the model for the management declaration referred to in paragraph 4 of this article . 1 note : the appropriate linguistic formulation for ia provisions to be further discussed following input . input from whom ?


### at least once a year , for each csf fund , the commission shall consult the organisations which represent the partners at union level on the implementation of support from the csf funds . ### at least once a year , for each european structural and investment fund , the commission shall consult the organisations which represent the partners at union level on the implementation of support from the european structural and investment funds and shall report to the european parliament and the council on the outcome .


### the annual implementation report submitted in 2017 shall set out and assess the information set out in paragraph 2 and progress towards achieving the objectives of the programme , including the contribution of the csf funds to changes in result indicators , when evidence is available from evaluations . it shall also assess the implementation of actions to take into account the principles set out in articles 6 , 7 and 8 and report on support used for climate change targets . ### the annual implementation report submitted in 2017 shall set out and assess the information set out in paragraph 2 and progress towards achieving the objectives of the programme , including the contribution of the european structural and investment funds to changes in the value of result indicators , when evidence is available from evaluations . it shall set out actions taken to fulfil the ex - ante conditionalities not fulfilled at the time of adoption of the programmes . it shall also assess the implementation of actions to take into account the principles set out in articles 7 and 8 , the role of the partners referred to in article 5 in the implementation of the programme and report on support used for climate change targets .


### if it is established by the commission in the ex post verification that a member state has not maintained the reference level of public or equivalent structural expenditure under the investment for growth and jobs goal set out in the partnership contract as set out in annex iv , the commission may carry out a financial correction . in deciding whether or not to carry out a financial correction , the commission will take into account whether the economic situation of the member state has significantly changed since the mid - term verification and whether the change was taken into account at that time . the detailed rules relating to financial correction rates are set out in point 3 of annex iv . ### if it is established by the commission in the ex post verification that a member state has not maintained the reference level of public or equivalent structural expenditure under the investment for growth and jobs goal set out in the partnership agreement as set out in annex iii , the commission may carry out a financial correction . in deciding whether to carry out a financial correction , the commission shall first decide whether the member state has taken the necessary steps to comply with the recommendations the commission had made to this effect and shall consider whether the economic situation of the member state has significantly changed since the mid - term verification and whether that change was taken into account at that time . the detailed rules relating to financial correction rates are set out in point 3 of annex iii .


### the monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives . in doing so , it shall have regard to the financial data , common and programme - specific indicators , including changes in result indicators and progress towards quantified target values , and the milestones defined in the performance framework . 2 . the monitoring committee shall examine in detail all issues that affect the performance of the programme . 3 . the monitoring committee shall be consulted and issue an opinion on any amendment of the programme proposed by the managing authority . 4 . the monitoring committee may issue recommendations to the managing authority regarding implementation of the programme and its evaluation . it shall monitor actions taken as a result of its recommendations . ### the monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives . in doing so , it shall have regard to the financial data , common and programme - specific indicators , including changes in the value of result indicators and progress towards quantified target values , and the milestones defined in the performance framework referred to in article 19 , and , where relevant , the results of qualitative analyses . 2 . the monitoring committee shall examine all issues that affect the performance of the programme , including the conclusions of the performance reviews . 3 . the monitoring committee shall be consulted and shall , if it considers appropriate , give an opinion on any amendment of the programme proposed by the managing authority . 4 . the monitoring committee may make observations to the managing authority regarding implementation of the programme and its evaluation including actions related to the reduction of administrative burden on beneficiaries . it shall monitor actions taken as a result of its observations .


### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way . ### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period .


### technical assistance of the member states each of the funds may finance technical assistance operations eligible under any of the other funds . the amount of the funds allocated to technical assistance shall be limited to 4% of the total amount of the funds allocated to operational programmes under each category of region of the investment for growth and jobs goal . 2 . technical assistance shall take the form of a mono - fund priority axis within an operational programme or of a specific operational programme . 3 . the allocation for technical assistance from a fund shall not exceed 10% of the total allocation of that fund to operational programmes in a member state under each category of region of the investment for growth and jobs goal . ### technical assistance of the member states the amount of the funds allocated to technical assistance shall be limited to 4% of the total amount of the funds allocated to operational programmes in a member state under each category of region , where applicable , of the investment for growth and jobs goal . 1a . each fund may support technical assistance operations eligible under any of the other funds . without prejudice to the provisions of paragraph 1 , the allocation for technical assistance from a fund shall not exceed 10% of the total allocation of that fund to operational programmes in a member state under each category of region , where applicable , of the investment for growth and jobs goal . 1b . by derogation from article 60 and , technical assistance operations may be implemented outside the programme area , but within the union , provided that the operations are for the benefit of the operational programme , or , in the case of a technical assistance operational programme for the other programmes concerned . 1c . where the structural funds allocations referred to in paragraph 1 are used to support technical assistance operations relating to more than one category of region , the expenditure relating to the operations may be implemented under a priority axis combining different categories of region and attributed on a pro rata basis taking into account the allocation under each category of region as a share of the total allocation to the member state . 1d . by way of derogation from paragraph 1 , when the total amount of the funds allocated to a member state under the investment for growth and jobs goal is up to eur 1 billion , the amount allocated to technical assistance may increase up to the lower of 6% or eur 50 000 000 . 2 . technical assistance shall take the form of a mono - fund priority axis within an operational programme or of a specific operational programme , or both . deleted


### all or part of the interim payments at the level of priorities or operational programmes may be suspended by the commission where : there is a serious deficiency in the management and control system of the operational programme for which corrective measures have not been taken ; expenditure in a statement of expenditure is linked to an irregularity having serious financial consequences which has not been corrected ; the member state has failed to take the necessary action to remedy the situation giving rise to an interruption under article 74 ; there is a serious deficiency in the quality and reliability of the monitoring system or of the data on common and specific indicators ; the member state has failed to undertake actions set out in the operational programme relating to fulfilment of an ex ante conditionalities ; there is evidence resulting from a performance review that a priority has failed to achieve the milestones set out in the performance framework ; the member state fails to respond or does not reply satisfactorily under article 20 . the fund - specific rules for the emff may lay down additional bases for suspension of payments where a member state has failed to comply with its obligations under the common fisheries policy . ### all or part of the interim payments at the level of priority axes or operational programmes may be suspended by the commission if one or more of the following conditions is met : there is a serious deficiency in the management and control system of the operational programme , which has put at risk the union contribution to the operational programme and for which corrective measures have not been taken ; expenditure in a statement of expenditure is linked to an irregularity having serious financial consequences which has not been corrected ; the member state has failed to take the necessary action to remedy the situation giving rise to an interruption under article 74 ; there is a serious deficiency in the quality and reliability of the monitoring system or of the data on common and specific indicators ; there is a failure to complete actions to fulfil an ex ante conditionality subject to the conditions set out in article 17 ; there is evidence resulting from a performance review that a priority axis has seriously failed to achieve the milestones relating to financial and output indicators and key implementation steps set out in the performance framework subject to the conditions set out in article 20 . deleted deleted


### information to be submitted to the commission the member state or the managing authority shall submit the following information on major projects to the commission as soon as preparatory work has been completed : information on the body to be responsible for implementation of the major project , and its capacity ; a description of and information on the investment and its location ; total cost and total eligible cost , taking account of the requirements set out in article 54 ; information on the feasibility studies carried out , including the options analysis , the results , and independent quality review ; a cost - benefit analysis , including an economic and a financial analysis , and a risk assessment ; an analysis of the environmental impact , taking into account climate change adaptation and mitigation needs , and disaster resilience ; the consistency with the relevant priority axes of the operational programme or programmes concerned , and its expected contribution to achieving the specific objectives of those priority axes ; the financing plan showing the total planned financial resources and the planned support from the funds , the eib , and all other sources of financing , together with physical and financial indicators for monitoring progress , taking account of the identified risks ; the timetable for implementing the major project and , where the implementation period is expected to be longer than the programming period , the phases for which support from the funds is requested during the 2014 to 2020 programming period . the commission shall provide indicative guidance on the methodology to be used in carrying out the cost - benefit analysis referred to in point above in accordance with the advisory procedure referred to in article 143 . the format for the information on major projects to be submitted shall be set up in accordance with the model adopted by the commission , by means of implementing acts . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . ### information necessary for the approval of major projects before a major project is approved , the managing authority shall ensure that the following information is available : the body responsible for implementation of the major project , and its capacity ; a description of the investment and its location ; total cost and total eligible cost , taking account of the requirements set out in article 54 ; feasibility studies carried out , including the options analysis , and the results ; a cost - benefit analysis , including an economic and a financial analysis , and a risk assessment ; an analysis of the environmental impact , taking into account climate change adaptation and mitigation needs , and disaster resilience ; a description of the public consultation proposed and the involvement of partners as referred to in article 5 ; the consistency with the relevant priority axes of the operational programme or operational programmes concerned , and its expected contribution to achieving the specific objectives of those priority axes and the expected contribution to socio - economic development ; the financing plan showing the total planned financial resources and the planned support from the funds , the eib , and all other sources of financing , together with physical and financial indicators for monitoring progress , taking account of the identified risks ; the timetable for implementing the major project and , where the implementation period is expected to be longer than the programming period , the phases for which support from the funds is requested during the 2014 to 2020 programming period . the commission shall be empowered to adopt delegated acts in accordance with article 142 , laying down guidance on the methodology to be used in carrying out the cost - benefit analysis referred to in point of the first subparagraph . at the initiative of a member state , the information in article 91 to may be assessed by independent experts supported by technical assistance of the commission or , in agreement with the commission , by other independent experts . in other cases , the member state shall submit to the commission the information set out in article 91 to as soon as it is available . the commission shall adopt , by means of implementing acts , the uniform conditions on the methodology to be used in carrying out a quality review of a major project and shall establish the format for the submission of the information set out in article 91 to . those implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 .


### the member state shall designate , for each operational programme , a national , regional or local public authority or body as managing authority . the same public authority or body may be designated as a managing authority for more than one operational programme . ### the member state shall designate , for each operational programme , a national , regional or local public authority or body as managing authority . the same public authority or body may be designated as a managing authority for more than one operational programme . in order to guarantee the administrative capacity of the managing authorities , the possession of verifiable project and programming management credentials is to be made a mandatory condition of employment for staff within them and the necessary training provided if a deficit is detected .


### the csf funds may be used to support financial instruments under a programme , including when organised through funds of funds , in order to contribute to the achievement of specific objectives set out under a priority , based on an ex ante assessment which has identified market failures or sub - optimal investment situations , and investment needs . financial instruments may be combined with grants , interest rate subsidies and guarantee fee subsidies . in this case , separate records must be maintained for each form of financing . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down detailed rules concerning the ex ante assessment of financial instruments , the combination of support provided to final recipients through grants , interest rate subsidies , guarantee fee subsidies and financial instruments , additional specific rules on eligibility of expenditure and rules specifying the types of activities which shall not be supported through financial instruments . ### the european structural and investment funds may be used to support financial instruments under one or more programmes , including when organised through funds of funds , in order to contribute to the achievement of specific objectives set out under a priority or measure . financial instruments shall be implemented to support investments which are expected to be financially viable and do not give rise to sufficient funding from market sources . when applying this title , the managing authority , the fund of funds , and the bodies implementing the financial instrument shall comply with applicable union and national law , in particular on state aid and public procurement . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down additional specific rules on purchase of land and on combination of technical support with financial instruments .


### each programme , except those which cover exclusively technical assistance , shall include a description of the actions to take into account the principles set out in articles 7 and 8 . ### each programme , except those which cover exclusively technical assistance , shall include a description of the actions to take into account the principles set out in articles 7 and 8 , if this has not been sufficiently described in the partnership contract ;


### the monitoring committee shall be composed of representatives of the managing authority and intermediate bodies and of representatives of the partners . each member of the monitoring committee shall have a voting right . the monitoring committee of a programme under the european territorial cooperation goal shall also include representatives of any third country participating in that programme . ### the composition of the monitoring committee shall be decided by the member state , provided that the monitoring committee is composed of the relevant member state authorities and intermediate bodies and of representatives of the partners referred to in article 5 . representatives of the partners shall be delegated to be part of the monitoring committee by the respective partners through transparent processes . the monitoring committee may decide that each member of the monitoring committee may have a voting right . the monitoring committee of a programme under the european territorial cooperation goal shall also include representatives of any third country participating in that programme . the monitoring committee may include representatives of the egtc carrying out activities related to the programme within the programme area . the composition of the monitoring committee of a programme under the european territorial goal shall be agreed by the member states participating in the programme and third countries , when they have accepted the invitation to participate in the cooperation programme . it shall include relevant representatives of member states and of any third country referred to in the preceding sentence .


### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership contracts and programmes . member states shall provide information on the support for climate change objectives using the methodology adopted by the commission . the commission shall adopt this methodology by means of an implementing act . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 . ### the member states and the commission shall ensure that environmental protection requirements , resource efficiency , climate change mitigation and adaptation , biodiversity and ecosystem protection , disaster resilience and risk prevention and management are promoted in the preparation and implementation of partnership agreements and programmes . member states shall provide information on the support for climate change objectives using the methodology based on the categories of intervention or measures adopted by the commission . this methodology shall consist of attaching weights to expenditure under the european structural and investment funds at an appropriate level to reflect the contribution to climate change mitigation and adaptation goals . the commission shall lay down uniform conditions on the implementation of this methodology to each of the european structural and investment funds by means of implementing acts . the implementing act shall be adopted in accordance with the examination procedure referred to in article 143 .


### implementing rules concerning the use of data collected during audits carried out by commission officials or authorised commission representatives shall be adopted by the commission in accordance with the examination procedure referred to in article 143 . ### the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down detailed rules on the use of data collected during audits carried out by commission officials or authorised commission representatives .


### arrangements to ensure the efficient implementation of the funds , including : the planned use of technical assistance including actions to reinforce the administrative capacity of authorities and beneficiaries with the relevant information referred to in paragraph 2 for the priority axis concerned ; an assessment of the administrative burden for beneficiaries and the actions planned to achieve a reduction accompanied by targets ; a list of major projects for which the estimated start date for the execution of the main works is before 1 january 2018 ; ### deleted deleted deleted deleted


### flat rate financing for indirect costs for grants where the implementation of an operation gives rise to indirect costs , they may be calculated as a flat rate in one of the following ways : a flat rate of up to 20&#160 ; % of eligible direct costs , where the rate is calculated on the basis of a fair , equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the member state for a similar type of operation and beneficiary ; a flat rate of up to 15 % of eligible direct staff costs ; a flat rate applied to eligible direct costs based on existing methods and corresponding rates , applicable in union policies for a similar type of operation and beneficiary . the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the flat rate and the related methods referred to in point above . ### flat rate financing for indirect costs and staff costs for grants and repayable assistance where the implementation of an operation gives rise to indirect costs , they may be calculated as a flat rate in one of the following ways : a flat rate of up to 25&#160 ; % of eligible direct costs , provided that the rate is calculated on the basis of a fair , equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the member state for a similar type of operation and beneficiary ; a flat rate of up to 15 % of eligible direct staff costs without a requirement for the member state to execute any calculation to determine the applicable rate ; a flat rate applied to eligible direct costs based on existing methods and corresponding rates , applicable in union policies for a similar type of operation and beneficiary . the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the flat rate and the related methods referred to in point above . 1a . for the purposes of determining staff costs relating to the implementation of an operation , the hourly rate applicable may be calculated by dividing the latest documented annual gross employment costs by 1720 hours .


### the pre - financing payment at the start of programmes ensures that the member state has the means to provide support to beneficiaries in the implementation of the programme from programme adoption . therefore , provisions should be made for initial pre - financing amounts from the csf funds . initial pre - financing should be totally cleared at closure of the programme . ### the pre - financing payment at the start of programmes ensures that the member state also has the means to provide ex ante support to beneficiaries from the start of the implementation of the programme , so as to ensure that the beneficiaries have the financial sustainability to make the allocated investments . therefore , provisions should be made for initial pre - financing amounts from the csf funds . initial pre - financing should be totally cleared at closure of the programme .


### with a view to strengthening accessibility and transparency of information about funding opportunities and project beneficiaries , in each member state a single website or website portal providing information on all the operational programmes , including the lists of operations supported under each operational programme , should be made available . ### with a view to strengthening accessibility and transparency of information about funding opportunities and project beneficiaries , in each member state a single website or website portal providing comprehensible and easily accessible information on all the operational programmes , including the lists of operations supported under each operational programme , should be made available .


### use of legacy resources after closure of the programme member states shall adopt the necessary measures to ensure that the capital resources and gains and other earnings or yields attributable to the support from the csf funds to financial instruments are used in accordance with the aims of the programme for a period of at least 10 years after the closure of the programme . ### use of resources after the end of the eligibility period member states shall adopt the necessary measures to ensure that resources paid back to financial instruments , including capital repayments and gains and other earnings or yields generated during a period of at least 10 years after the end of the eligibility period , which are attributable to the support from the european structural and invenstment funds to financial instruments pursuant to article 32 , are used in accordance with the aims of the programme or programmes , either within the same financial instrument or , following the exit of these resources from the financial instrument , in other financial instruments in both cases provided that an assessment of market conditions demonstrates a continuing need for such investment or in other forms of support .


### where irregularities affecting annual accounts sent to the commission are detected by the commission or by the european court of auditors , the resulting financial correction shall reduce support from the funds to the operational programme . ### where irregularities affecting accounts sent to the commission by the member states are detected by the commission or by the european court of auditors , the resulting financial correction shall reduce support from the funds to the operational programme .


### article 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands , particular rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps . article 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments . ### article&#160 ; 174 of the treaty provides that , in order to strengthen its economic , social and territorial cohesion , the union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands , particularly rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps , such as the northernmost regions with low population density as well as island , border and mountain regions . also , for the purpose of maximising the effectiveness of the funds , where applicable , disadvantaged urban areas and remote border cities should be taken into account . article&#160 ; 175 of the treaty requires that the union would support the achievement of these objectives by action it takes through the european agricultural guidance and guarantee fund , guidance section , the european social fund , the european regional development fund , the european investment bank and other instruments .


### in addition to common rules on financial management , additional provisions are necessary for the erdf , esf and cf . in particular , with a view to ensuring reasonable assurance for the commission prior to the annual clearance of accounts , applications for interim payments should be reimbursed at a rate of 90 % of the amount resulting from applying the co - financing rate for each priority axis as laid down in the decision adopting the operational programme to the eligible expenditure for the priority axis . the outstanding amounts due should be paid to the member states upon annual clearance of accounts , provided that reasonable assurance has been attained in regard to the eligibility of expenditure for the year covered by the clearance procedure . ### in addition to common rules on financial management , additional provisions are necessary for the erdf , esf and cf . in particular , with a view to ensuring reasonable assurance for the commission , applications for interim payments should be reimbursed at a rate of 90 % of the amount resulting from applying the co - financing rate for each priority axis as laid down in the decision adopting the operational programme to the eligible expenditure for the priority axis . the outstanding amounts due should be paid to the member states at the end of year , provided that reasonable assurance has been attained in regard to the eligibility of expenditure .


### commission powers and responsibilities the commission shall satisfy itself on the basis of available information , including the accreditation procedure , annual management declaration , annual control reports , annual audit opinion , annual implementation report and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving adequate prior notice . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits , shall have access to all records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the csf funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . 4 . the commission may require a member state to examine a complaint submitted to the commission concerning the selection or implementation of operations co - financed by the csf funds or the functioning of the management and control system . ### commission powers and responsibilities the commission shall satisfy itself , on the basis of available information , including information on the designation of bodies responsible for the management and control , the documents provided each year by the designated bodies under article 59 of the financial regulation , control reports , annual implementation reports and audits carried out by national and union bodies , that the member states have set up management and control systems that comply with this regulation and the fund - specific rules and that these systems function effectively during the implementation of programmes . 2 . without prejudice to audits carried out by member states , commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving prior notice of a minimum of 10 working days , except in urgent cases where no notice shall be required . the scope of such audits or checks may include , in particular , verification of the effective functioning of management and control systems in a programme or a part thereof , operations and assessment of the sound financial management of operations or programmes . officials or authorised representatives of the member state may take part in such audits . commission officials or authorised commission representatives , duly empowered to carry out on - the - spot audits or checks , shall have access to all necessary records , documents and metadata , irrespective of the medium in which they are stored , relating to operations supported by the european structural and investment funds or to management and control systems . member states shall provide copies of such records , documents and metadata to the commission upon request . the powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation . commission officials and authorised representatives shall not take part , inter alia , in home visits or the formal questioning of persons within the framework of national legislation . however , they shall have access to the information thus obtained without prejudice to the competences of national courts and in full respect of the fundamental rights of the concerned legal subjects . 3 . the commission may require a member state to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the fund - specific rules . deleted


### arrangements to ensure efficient implementation of the csf funds , including : an assessment of whether there is a need to reinforce the administrative capacity of the authorities and , where appropriate , beneficiaries , and actions to be taken for this purpose ; a summary of the actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries ; an assessment of the existing systems for electronic data exchange , and the actions planned to permit all exchanges of information between beneficiaries and authorities responsible for management and control of programmes to be carried out solely by electronic data exchange . ### deleted deleted deleted deleted


### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of national support . ### deleted


### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of national support . ### it is necessary to determine the elements for modulating the co - financing rate from the funds to operational programmes , in particular , to increase the multiplier effect of union resources . it is also necessary to establish the maximum rates of co - financing by category of region in order to ensure respect of the principle of co - financing through an appropriate level of both public and private national support . current national co - financing rates should not be raised in the present economic situation which already poses numerous challenges for the regions . in capital regions which are the only more developed region in a member state , more flexibility should be provided for .


### for the partnership contract and each programme respectively , a member state should organise a partnership with the representatives of competent regional , local , urban and other public authorities , economic and social partners , and bodies representing civil society , including environmental partners , non - governmental organisations , and bodies responsible for promoting equality and non - discrimination . the purpose of such a partnership is to respect the principle of multi - level governance , ensure the ownership of planned interventions by stakeholders and build on the experience and know - how of relevant actors . the commission should be empowered to adopt delegated acts providing for a code of conduct in order to ensure that partners are involved in the preparation , implementation , monitoring and evaluation of partnership contracts and programmes in a consistent manner . ### for the partnership agreement and each programme respectively , a member state should organise a partnership with the representatives of competent regional , local , urban and other public authorities , economic and social partners and other bodies representing civil society , including environmental partners , non - governmental organisations and bodies responsible for promoting equality and non - discrimination , including , where appropriate , the ' umbrella organisations ' of such bodies , authorities and organisations . the purpose of such a partnership is to respect the principles of multi - level governance , but also of subsidiarity and proportionality and the specificities of the member states ' different legal and institutional frameworks as well as to ensure the ownership of planned interventions by stakeholders and build on the experience and the know - how of relevant actors . the member states should identify the most representative relevant partners , who should include the institutions , organisations and groups which can influence the preparation or be affected by the preparation and implementation of the programmes . in this context member states may also identify , where appropriate , as relevant partners , ' umbrella organisations ' which are the associations , federations or confederations of relevant local , regional and urban authorities or other bodies in accordance with applicable national law and practice . the commission shall be empowered to adopt a delegated act providing for a code of conduct in order to facilitate member states the implementation of partnership with regard to ensure the involvement of relevant partners in the preparation , implementation , monitoring and evaluation of partnership agreements and programmes in a consistent manner . the adopted delegated act should have under no circumstances and in no way of its interpretation retroactive effect or be the basis to establish irregularities leading to financial corrections . the adopted delegated act should not enter into force earlier than the day of its adoption after the entry into force of this regulation . the adopted delegated act should allow member states to determine on the most appropriate modalities for implementing the partnership in accordance with their institutional and legal framework as well as their national and regional competences , provided that its objectives , as laid down in this regulation , are achieved .