### the audit authority shall ensure that audits are carried out on the management and control systems , on an appropriate sample of operations and on the annual accounts . the commission shall be empowered to adopt delegated acts in accordance with article 142 to set out the conditions which those audits shall fulfil . ### the audit authority shall ensure that audits are carried out on the proper functioning of the management and control system of the operational programme and on an appropriate sample of operations on the basis of the declared expenditure . deleted


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined where they have a direct link to and impact on the effective implementation of the funds covered by the cpr , to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme .


### the commission shall assess the consistency of the partnership contract with this regulation , with the common strategic framework , and the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under 148 of the treaty , taking account of the ex&#160 ; ante evaluations of the programmes , and shall make observations within three months of the date of submission of the partnership contract . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership contract . ### the commission shall assess the consistency of the partnership agreement with this regulation taking account of the national reform programme , where appropriate , and the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union , as well as of the ex - ante evaluations of the programmes , and shall make observations within three months of the date of submission by the member state of the partnership agreement . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership agreement .


### each member state shall designate an information and communication officer to coordinate information and communication actions in relation to one or several funds and shall inform the commission accordingly . 2 . the information and communication officer shall coordinate and chair meetings of a national network of funds ' communicators , including relevant european territorial cooperation programmes , the creation and maintenance of the website or website portal referred to in annex vi and the obligation to provide an overview about communication measures undertaken at national level . 3 . each managing authority shall designate one person to be responsible for information and communication at operational programme level and shall inform the commission of those designated . 4 . union networks comprising the members designated by the member states and the managing authorities shall be set up by the commission to ensure exchange on the results of the implementation of the communication strategies , the exchange of experience in implementing the information and communication measures , and the exchange of good practices . ### each member state shall designate an information and communication officer to coordinate information and communication actions in relation to one or several funds , including relevant european territorial cooperation programmes , and shall inform the commission accordingly . 2 . the information and communication officer shall be responsible for the coordination of national network of funds ' communicators , where such a network exists , the creation and maintenance of the website or website portal referred to in annex vi and the provision of an overview of communication measures undertaken at member state level . 3 . each managing authority shall designate one person responsible for information and communication at operational programme level and shall inform the commission of those designated . where appropriate , one person may be designated for several operational programmes . 4 . union networks comprising the members designated by the member states shall be set up by the commission to ensure exchange on the results of the implementation of the communication strategies , the exchange of experience in implementing the information and communication measures , and the exchange of good practices .


### an integrated approach to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or exclusion , with special regard to marginalised communities , where appropriate , including the indicative financial allocation for the relevant csf funds ; ### arrangements for the partnership principle as referred in article 5 ; an indicative list of partners and a summary of the actions taken to involve those partners as referred to in article 5 and their role in the preparation of the partnership agreement and the progress report as defined in article 46 of this regulation .


### as regards the funds and with a view to ensuring an appropriate allocation to each category of regions , resources should not be transferred between less developed , transition and more developed regions except in duly justified circumstances linked to the delivery of one or more thematic objectives and for no more than 2 % of the total appropriation for that category of region . ### as regards the funds and with a view to ensuring an appropriate allocation to each category of regions , resources should not be transferred between less developed , transition and more developed regions except in duly justified circumstances linked to the delivery of one or more thematic objectives and for no more than 4 % of the total appropriation for that category of region .


### ex ante evaluations shall appraise : the contribution to the union strategy for smart , sustainable and inclusive growth , having regard to the selected thematic objectives and priorities , taking into account national and regional needs ; the internal coherence of the proposed programme or activity and its relation with other relevant instruments ; the consistency of the allocation of budgetary resources with the objectives of the programme ; the consistency of the selected thematic objectives , the priorities and corresponding objectives of the programmes with the common strategic framework , the partnership contract and the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under article 148 of the treaty ; the relevance and clarity of the proposed programme indicators ; how the expected outputs will contribute to results ; whether the quantified target values for indicators are realistic , having regard to the support from the csf funds envisaged ; the rationale for the form of support proposed ; the adequacy of human resources and administrative capacity for management of the programme ; the suitability of the procedures for monitoring the programme and for collecting the data necessary to carry out evaluations ; the suitability of the milestones selected for the performance framework ; the adequacy of planned measures to promote equal opportunities between men and women and to prevent discrimination ; the adequacy of planned measures to promote sustainable development . ### ex ante evaluations shall appraise : the contribution to the union strategy for smart , sustainable and inclusive growth , having regard to the selected thematic objectives and priorities , taking into account national and regional needs and potential for development as well as lessons drawn from previous programming periods ; the internal coherence of the proposed programme or activity and its relation with other relevant instruments ; the consistency of the allocation of budgetary resources with the objectives of the programme ; the consistency of the selected thematic objectives , the priorities and corresponding objectives of the programmes with the common strategic framework , the partnership agreement and the relevant country specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programme . the relevance and clarity of the proposed programme indicators ; how the expected outputs will contribute to results ; whether the quantified target values for indicators are realistic , having regard to the support from the european structural and investment funds envisaged ; the rationale for the form of support proposed ; the adequacy of human resources and administrative capacity for management of the programme ; the suitability of the procedures for monitoring the programme and for collecting the data necessary to carry out evaluations ; the suitability of the milestones selected for the performance framework ; the adequacy of planned measures to promote equal opportunities between men and women and to prevent any discrimination ; in particular as regards the acccessibility for persons with disabilities ; the adequacy of planned measures to promote sustainable development ; measures planned to reduce the administrative burden of beneficiaries .


### an operational programme shall consist of priority axes . a priority axis shall concern one fund for a category of region and shall correspond , without prejudice to article 52 , to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . for the esf , a priority axis may combine investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes , in duly justified circumstances . ### an operational programme shall consist of priority axes . a priority axis shall concern one fund for a category of region and shall correspond to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . in duly justified circumstances , a priority axis may concern more than one category of region and more than one fund for the esf , a priority axis may combine one or more complementary investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes , in duly justified circumstances .


### by 30 april 2016 and by 30 april of each subsequent year until and including 2022 the member state shall submit to the commission an annual report in accordance with article 44 . the report submitted in 2016 shall cover the financial years 2014 and 2015 , as well as the period between the starting date for eligibility of expenditure and 31 december 2013 . 2 . annual implementation reports shall set out information on : implementation of the operational programme in accordance with article 44 ; progress in preparation and implementation of major projects and joint action plans . 3 . the annual implementation reports submitted in 2017 and 2019 shall set out and assess the information required under articles 44 and respectively , the information set out in paragraph 2 , together with : progress in implementation of the integrated approach to territorial development , including sustainable urban development , and community - led local development under the operational programme ; progress in implementation of actions to reinforce the capacity of member state authorities and beneficiaries to administer and use the funds ; progress in implementation of any interregional and transnational actions ; progress in implementation of the evaluation plan and the follow - up given to the findings of evaluations ; the specific actions taken to promote equality between men and women and to prevent discrimination , including accessibility for disabled persons , and the arrangements implemented to ensure the integration of the gender perspective in the operational programme and operations ; actions taken to promote sustainable development in accordance with article 8 ; the results of the information and publicity measures of the funds carried out under the communication strategy ; progress in the implementation of actions in the field of social innovation , where appropriate ; progress in the implementation of measures to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or exclusion , with special regard to marginalised communities including , where appropriate , the financial resources used ; the involvement of the partners in the implementation , monitoring and evaluation of the operational programme . 4 . the annual and final implementation reports shall be drawn up following models adopted by the commission by means of implementing acts . these implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . ### by 31 may 2016 and by 31 may of each subsequent year until and including 2022 the member state shall submit to the commission an annual implementation report in accordance with article 44 . the report submitted in 2016 shall cover the financial years 2014 and 2015 , as well as the period between the starting date for eligibility of expenditure and 31 december 2013 . 1a . for the reports submitted in 2017 and 2019 , the deadline referred to in paragraph 1 shall be 30 june . 2 . annual implementation reports shall set out information on : implementation of the operational programme in accordance with article 44 ; progress in preparation and implementation of major projects and joint action plans . 3 . the annual implementation reports submitted in 2017 and 2019 shall set out and assess the information required under articles 44 and respectively , the information set out in paragraph 2 together with information on the elements set out under , and below and may dependent on the content and objectives of operational programmes and information on the other elements : progress in implementation of the integrated approach to territorial development , including development of regions facing demographic challenges and permanent or natural handicaps , sustainable urban development , and community - led local development under the operational programme ; progress in implementation of actions to reinforce the capacity of member state authorities and beneficiaries to administer and use the funds ; progress in implementation of any interregional and transnational actions ; where appropriate , contribution to macro - regional and sea basin strategies ; progress in implementation of the evaluation plan and the follow - up given to the findings of evaluations ; the specific actions taken to promote equality between men and women and to prevent discrimination , in particular accessibility for disabled persons , and the arrangements implemented to ensure the integration of the gender perspective in the operational programme and operations ; actions taken to promote sustainable development in accordance with article 8 ; the results of the information and publicity measures of the funds carried out under the communication strategy ; progress in the implementation of actions in the field of social innovation , where appropriate ; progress in the implementation of measures to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of poverty , discrimination or social exclusion , with special regard to marginalised communities and persons with disabilities , long term unemployed and young people not in employment including , where appropriate , the financial resources used . the involvement of the partners in the implementation , monitoring and evaluation of the operational programme . by derogation , and in order to ensure consistency between the partnership agreement and the progress report , the member states with no more than one operational programme per fund may include information related to ex ante conditionalities referred to in article 44 , the information required by article 44 and the information referred to in points , , and of this paragraph in the progress report instead of the annual implementation reports submitted in 2017 and 2019 respectively and the final report respectively , without prejudice to article 100 . 4 . the annual and final implementation reports shall be drawn up following models adopted by the commission by means of implementing acts . these implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 .


### 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


### allocation of performance reserve where the review of performance undertaken in 2017 reveals that a priority within a programme has not attained its milestones set for the year 2016 , the commission shall make recommendations to the member state concerned . 2 . on the basis of the review undertaken in 2019 , the commission shall adopt a decision , by means of implementing acts , to determine for each csf fund and member state the programmes and priorities which have attained their milestones . the member state shall propose the attribution of the performance reserve for the programmes and priorities set out in that commission decision . the commission shall approve the amendment of the programmes concerned in accordance with article 26 . where a member state fails to submit the information in accordance with article 46 and , the performance reserve for the programmes or the priorities concerned shall not be allocated . 3 . where there is evidence resulting from a performance review that a priority has failed to achieve the milestones set out in the performance framework , the commission may suspend all or part of an interim payment of a priority of a programme in accordance with the procedure laid down in fund - specific rules . 4 . where the commission , based on the examination of the final implementation report of the programme , establishes a serious failure to achieve the targets set out in the performance framework , it may apply financial corrections in respect of the priorities concerned in accordance with fund - specific rules . the commission shall be empowered to adopt delegated acts in accordance with article 142 to establish criteria and the methodology for determining the level of financial correction to be applied . 5 . paragraph 2 shall not apply to programmes under the european territorial cooperation goal and to title v of the emff regulation . ### application of the performance framework deleted 2 . on the basis of the review undertaken in 2019 , the commission shall adopt a decision , by means of implementing acts , to determine for each european structural and investment fund and member state the programmes and priorities which have attained their milestones . 3 . where there is evidence , resulting from a performance review , that there has been a serious failure with regards to a priority achieving the milestones relating only to financial and output indicators and key implementation steps set out in the performance framework and that that failure is due to clearly identified implementation weaknesses , which the commission has previously communicated pursuant to article 44 following close consultations with the member state concerned , and that member state has failed to take the necessary corrective action to address such weaknesses , the commission may , not earlier than&#160 ; four &#160 ; months of such communication , suspend all or part of an interim payment of a priority of a programme in accordance with the procedure laid down in fund - specific rules . the commission shall without delay lift the suspension of interim payments when the member state has taken the necessary corrective action . where the corrective action concerns the transfer of financial allocations to other programmes or priorities , which have attained their milestones , the commission shall approve , by means of an implementing act , the necessary amendment of the programmes concerned in accordance with article 26 . by way of derogation , in such case the commission shall decide on the amendment no later than two months of the submission of the member state request . 4 . where the commission , based on the examination of the final implementation report of the programme , establishes a serious failure to achieve the targets relating only to financial indicators , output indicators and key implementation steps set out in the performance framework due to clearly identified implementation weaknesses , which the commission has previously communicated pursuant to article 44 following close consultations with the member state concerned , and the member state has failed to take the necessary corrective action to address such weaknesses , the commission may notwithstanding article 77 apply financial corrections in respect of the priorities concerned in accordance with fund - specific rules . when applying financial corrections , the commission shall take into account - with due respect to the principle of proportionality - the absorption level , and external factors contributing to the failure . financial corrections shall not be applied where the failure to achieve targets is because of the impact of socio - economic or environmental factors , significant changes in the economic or environmental conditions in a member state or because of reasons of force majeure seriously affecting implementation of the priorities concerned . the commission shall be empowered to adopt delegated acts in accordance with article 142 to establish detailed rules on criteria for determining the level of financial correction to be applied . 5 . paragraph 2 shall not apply to programmes under the european territorial cooperation goal and to title v of the emff regulation .


### in accordance with the multi - level governance approach , the partners shall be involved by member states in the preparation of partnership contracts and progress reports and in the preparation , implementation , monitoring and evaluation of programmes . the partners shall participate in the monitoring committees for programmes . ### in accordance with the multi - level governance approach , the partners referred to in paragraph 1 shall be involved by member states in the preparation of partnership agreements and progress reports throughout the preparation and implementation of programmes , including participation in the monitoring committees for programmes in accordance with article 42 .


### 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 .


### 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 . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . in cases where , as a result of a performance review , there is evidence that a priority failed to achieve the milestones set out in the performance framework , the commission should call upon the member state to propose amendments to the relevant programme and when the member state fails to respond satisfactorily within 3 months , the commission should be able to suspend all or part of an interim payment of a priority of a programme , in order to ensure that the union budget is not used in a wasteful or inefficient way . the suspension should be lifted as soon as the member state takes the necessary action .


### the bodies accredited in accordance with article 64 shall not carry out on - the - spot verifications of operations comprising financial instruments implemented under article 33 . they shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments . ### bodies designated in accordance with article 59 of the financial regulation shall not carry out on - the spot verifications of operations comprising financial instruments implemented under article 33 . they shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments .


### at least 25 % of the structural funds resources for less developed regions , 40% for transition regions and 52% for more developed regions in each member state shall be allocated to the esf . for the purposes of this provision , the support to a member state through the [ food for deprived people instrument ] shall be considered as part of the share of structural funds allocated to the esf . ### in order to ensure that sufficient investment is targeted at youth employment , labour mobility , knowledge , social inclusion and combating poverty , the share of structural funds resources available for programming for operational programmes under the investment for growth and jobs goal allocated to the esf in each member state shall not be lower than the corresponding esf share for that member state observed in the operational programmes for the convergence and regional competitiveness and employment objectives for the period 2007 - 2013 . an additional amount shall be added to that share for each member state determined according to the method set out in annex iii quater in order to ensure that the share of the esf as a percentage of the total combined resources for the structural funds and the cohesion fund at union level , excluding the support from the cohesion fund for transport infrastructure under the connecting europe facility referred to in article 84 and support from the structural funds for aid for the most deprived people referred to in article 84 , in member states is not less than 25 % . for the purposes of this provision , investment from the esf in the youth employment initiative shall be considered as part of the share of structural funds allocated to the esf .


### 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 by concluding a partnership agreement with the competent regional and local authorities . member states should also cooperate , in accordance with their institutional , legal and financial framework , with economic and social partners , 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 agreements and programmes in a consistent manner .


### the csf funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention , to deliver the union strategy for smart , sustainable and inclusive growth , taking account of the integrated guidelines , the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty . ### the european structural and investment funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention to deliver 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 taking account of the relevant integrated guidelines and the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and the relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programme .


### 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 . ### 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 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


### the audit authority shall draw up : an audit opinion on the annual accounts for the preceding accounting year , whose scope shall cover the completeness , accuracy and veracity of the annual accounts , the functioning of the management and control system and the legality and regularity of the underlying transactions ; an annual control report setting out the findings of the audits carried out during the preceding accounting year . the report under point shall set out any deficiencies found in the management and control system and any corrective measures taken or proposed to be taken . where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report . ### the audit authority shall draw up : an audit opinion in accordance with article 59 of the financial regulation ; a control report setting out the main findings , including deficiencies found in the management and control systems , of the audits carried out according to paragraph 116 and the proposed and implemented corrective measures . deleted where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report .


### arrangements to ensure alignment with the union strategy for smart , sustainable and inclusive growth , including : an analysis of disparities and development needs with reference to the thematic objectives , the common strategic framework and the targets set in the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under article 148 of the treaty ; a summary analysis of the ex ante evaluations of the programmes justifying the selection of the thematic objectives and the indicative allocations of the csf funds ; for each thematic objective , a summary of the main results expected for each of the csf funds ; the indicative allocation of support by the union by thematic objective at national level for each of the csf funds , as well as the total indicative amount of support foreseen for climate change objectives ; the main priority areas for cooperation , taking account , where appropriate , of macro - regional and sea basin strategies ; horizontal principles and policy objectives for the implementation of the csf funds ; the list of the programmes under the erdf , the esf and the cf , except those under the european territorial cooperation goal , and of the programmes of the eafrd and the emff , with the respective indicative allocations by csf fund and by year ; ### arrangements to ensure alignment with 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 , including : an analysis of disparities , development needs , and growth potentials with reference to the thematic objectives and the territorial challenges and taking account of the national reform programme , where appropriate , and relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union ; a summary of the ex ante evaluations of the programmes or key findings of the ex ante evaluations of the partnership agreement where undertaken by the member state at its own initiative ; selected thematic objectives , and for each of the selected thematic objectives a summary of the main results expected for each of the european structural and investment funds ; the indicative allocation of support by the union by thematic objective at national level for each of the european structural and investment funds , as well as the total indicative amount of support foreseen for climate change objectives ; deleted the application of horizontal principles and policy objectives for the implementation of the european structural and investment funds ; the list of the programmes under the erdf , the esf and the cf , except those under the european territorial cooperation goal , and of the programmes of the eafrd and the emff , with the respective indicative allocations by european structural and investment fund and by year ;


### 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 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 or macro - regional development fund programme .


### bodies representing civil society , including environmental partners , non - governmental organisations , and bodies responsible for promoting equality and non - discrimination . ### relevant bodies representing civil society , including environmental partners , non - governmental organisations , and bodies responsible for promoting social inclusion , gender equality and non - discrimination .


### 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 .


### an operational programme shall consist of priority axes . a priority axis shall concern one fund for a category of region and shall correspond , without prejudice to article 52 , to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . for the esf , a priority axis may combine investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes , in duly justified circumstances . ### an operational programme shall consist of priority axes . a priority axis shall concern one fund and one category of region , except for the cohesion fund , and shall correspond , without prejudice to article 52 , to a thematic objective and comprise one or more investment priorities of that thematic objective , in accordance with the fund - specific rules . where appropriate and in order to increase the impact and effectiveness in a thematically coherent integrated approach , a priority axis may : concern more than one category of region ; combine one or more complementary investment priorities from the erdf , cf and esf under one thematic objective ; in duly justified cases combine one or more complementary investment priorities from different thematic objectives in order to achieve their maximum contribution to priority axis ; for the esf combine investment priorities from different thematic objectives set out in article 9 , , and in order to facilitate their contribution to other priority axes . member states may combine two or more of the options to .


### 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 .


### the common strategic framework shall establish : means to achieve coherence and consistency of the programming of the csf funds with the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty ; coordination mechanisms among the csf funds , and with other relevant union policies and instruments , including external instruments for cooperation ; horizontal principles and cross - cutting policy objectives for the implementation of the csf funds ; arrangements to address territorial challenges and the steps to be taken to encourage an integrated approach that reflects the role of urban , rural , coastal and fisheries areas , as well as the specific challenges for areas with particular territorial features referred to in articles 174 and 349 of the treaty ; for each thematic objective , the indicative actions of high european added value to be supported by each csf fund and the corresponding principles for delivery ; priorities for cooperation for the csf funds , where appropriate , taking account of macro - regional and sea basin strategies . ### the common strategic framework shall establish : mechanisms for ensuring the contribution of the european structural and investment funds to the union ' s strategy for smart , sustainable and inclusive growth and coherence and consistency of the programming of the european structural and investment funds with the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and the relevant council recommendations adopted in accordance with 148 of the treaty on the functioning of the european union and where appropriate at national level , the national reform programmes ; arrangements to promote the integrated use of the european structural and investment funds ; the arrangements for coordination between the european structural and investment funds and other relevant union policies and instruments , including external instruments for cooperation ; horizontal principles and cross - cutting policy objectives for the implementation of the european structural and investment funds ; the arrangements to address the key territorial challenges for urban , rural , coastal and fisheries areas , the demographic challenges of regions or specific needs of geographical areas which suffer by severe and permanent natural or demographic handicaps as referred to in articles 174 and 349 of the treaty on the functioning of the european union ; deleted priority areas for cooperation activities for the european structural and investment funds , where appropriate , taking account of macro - regional and sea basin strategies .


### ' local development strategy ' means a coherent set of operations to meet local objectives and needs , which contributes to meeting the union strategy for smart , sustainable and inclusive growth and which is implemented in partnership at the appropriate level ; ### ' community - led local development strategy ' means a coherent set of operations to meet local objectives and needs , which contributes to meeting the union strategy for smart , sustainable and inclusive growth , and which is designed and implemented by a local action group ;


### in order to promote the treaty objectives of economic , social and territorial cohesion , the ‘ investment for growth and jobs’ goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75% of the eu - 27 average should receive at least two thirds of their 2007 - 2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ‘ investment for growth and jobs’ goal from the cf . ### in order to promote the treaty objectives of economic , social and territorial cohesion , the ‘ investment for growth and jobs’ goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , regions whose gdp per capita for the 2007–2013 period was less than 75 % of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75 % of the eu - 27 average should receive at least two thirds of their 2007–2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ‘ investment for growth and jobs’ goal from the cf . due to their social and economic situation and the additional costs incurred by their remoteness and insularity , the outermost regions should be regarded as less - developed regions and should receive benefits to offset these handicaps .


### at least 25 % of the structural funds resources for less developed regions , 40% for transition regions and 52% for more developed regions in each member state shall be allocated to the esf . for the purposes of this provision , the support to a member state through the [ food for deprived people instrument ] shall be considered as part of the share of structural funds allocated to the esf . ### in order to ensure that sufficient investment is targeted at youth employment , labour mobility , knowledge , social inclusion and combating poverty , the share of structural funds resources available for programming for operational programmes under the investment for growth and jobs goal allocated to the esf in each member state shall not be lower than the corresponding esf share for that member state observed in the operational programmes for the convergence and regional competitiveness and employment objectives for the period 2007 - 2013 . to this share shall be added an additional amount for each member state determined according to the method set out in annex iiiquater in order to ensure that the share of the esf as a percentage of total combined resources for the structural funds and the cohesion fund at eu level , excluding the support from the cohesion fund for transport infrastructure under the connecting europe facility referred to in article 84 and support from the structural funds for aid for the most deprived people referred to in article 84 , in member states is not less than 23 . 1% . for the purposes of this provision , investment provided from the esf to the youth employment initiative shall be considered as part of the share of structural funds allocated to the esf .


### the co - financing rate at the level of each priority axis of operational programmes under the investment for growth and jobs goal shall be no higher than : 85 % for the cohesion fund ; 85 % for the less developed regions of member states whose average gdp per capita for the period 2007 to 2009 was below 85 % of the eu - 27 average during the same period and for the outermost regions ; 80% for the less developed regions of member states other than those referred to in point eligible for the transitional regime of the cohesion fund on 1 january 2014 ; 75% for the less developed regions of member states other than those referred to in points and , and for all regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita is above 75% of the gdp average of the eu - 27 ; 60 % for the transition regions other than those referred to in point ; 50 % for the more developed regions other than those referred to in point . the co - financing rate at the level of each priority axis of operational programmes under the european territorial cooperation goal shall be no higher than 75% . ### the co - financing rate at the level of each priority axis of operational programmes under the investment for growth and jobs goal shall be no higher than : 85 % for the cohesion fund ; 85 % for the less developed regions of member states and for the outermost regions including additional funding ; deleted deleted 75 % for the transition regions and for regions which were eligible for funding under transitional support pursuant to article 8 of regulation no 1083 / 2006 ; 50 % for the more developed regions other than those referred to in point . the co - financing rate at the level of each priority axis of operational programmes under the european territorial cooperation goal shall be no higher than 85% .


### the commission shall assess the consistency of the partnership contract with this regulation , with the common strategic framework , and the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under 148 of the treaty , taking account of the ex&#160 ; ante evaluations of the programmes , and shall make observations within three months of the date of submission of the partnership contract . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership contract . ### the commission shall assess the consistency of the partnership agreement with this regulation taking account of the national reform programme , where appropriate , and the relevant country - specific recommendations adopted in accordance with article 121 of the treaty on the functioning of the european union and relevant council recommendations adopted in accordance with article 148 of the treaty on the functioning of the european union , as well as of the ex - ante evaluations of the programmes , and shall make observations within three months of the date of submission by the member state of the partnership agreement . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership agreement .


### 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 a common strategic framework , 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 crossborder 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 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 . ### 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 a common strategic framework , 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 crossborder 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 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 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 .


### member states shall establish and implement a procedure for the independent examination and resolution of complaints concerning the selection or implementation of operations co - financed by the csf funds . member states shall report the results of such examinations to the commission upon request . ### member states shall ensure effective arrangements for the examination of complaints concerning the european structural and investment funds . the scope , rules and procedures concerning such arrangements shall be the responsibility of member states in accordance with their institutional and legal framework . member states shall upon request by the commission examine complaints submitted to the commission falling within the scope of their arrangements . member states shall inform the commission of the results of examinations upon request .


### a description of the strategy and its objectives , a description of the integrated and innovative character of the strategy and a hierarchy of objectives , including clear and measurable targets for outputs or results . the strategy shall be coherent with the relevant programmes of all the csf funds involved ; ### a description of the strategy and its objectives , a description of the integrated and innovative character of the strategy and a hierarchy of objectives , including measurable targets for outputs or results . for results targets may be expressed in quantitative or qualitative terms . the strategy shall be consistent with the relevant programmes of all the concerned european structural and investment funds involved ;


### the erdf and the esf may finance , in a complementary manner and subject to a limit of 5 % of union funding for each priority axis of an operational programme , a part of an operation for which the costs are eligible for support from the other fund on the basis of eligibility rules applied to that fund , provided that they are necessary for the satisfactory implementation of the operation and are directly linked to it . ### the erdf and the esf may finance , in a complementary manner and subject to a limit of 10 % of union funding for each priority axis of an operational programme , a part of an operation for which the costs are eligible for support from the other fund on the basis of eligibility rules applied to that fund , provided that they are necessary for the satisfactory implementation of the operation and are directly linked to it .


### the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the establishment of a system of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies . ### the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down the specific rules concerning the establishment of a system of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies .


### the elements of the common strategic framework related to coherence and consistency with the economic policies of member states and the union , the coordination mechanisms among the csf funds and with other relevant union policies and instruments , the horizontal principles and cross - cutting policy objectives and the arrangements to address territorial challenges are laid down in annex i . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down the specific elements of the common strategic framework related to the establishment of indicative actions of high european added value and corresponding principles for delivery for each thematic objective and of priorities for cooperation . where there are major changes in the union strategy for smart , sustainable and inclusive growth , the commission shall review the common strategic framework and , where appropriate , adopt by means of delegated acts in accordance with article 142 , amendments to annex i . within 6 months of adoption of a revision to the common strategic framework , member states shall propose amendments , where necessary , to their partnership contract and programmes to ensure their consistency with the revised common strategic framework . ### the common strategic framework is set out in annex i to this regulation . deleted where there are major changes in the social and economic situation in the union or in the union strategy for smart , sustainable and inclusive growth , the commission may submit a proposal to review the common strategic framework , or the european parliament or the council , acting in accordance with articles 225 or 241 of the treaty on the functioning of the european union respectively , may request the commission to submit such a proposal . the commission shall be empowered to adopt delegated acts in accordance with article 142 in order to supplement or amend sections 4 and 7 of the common strategic framework set out in annex i where it is necessary to take account of changes in the union policies or instruments referred to in section 4 or changes in the cooperation activities referred to in section 7 , or to take account of the introduction of new union policies , instruments or cooperation activities .


### 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 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 attention shall be paid to rural areas , areas affected by industrial transition , and regions which suffer from severe and permanent natural or demographic handicaps inter alia , outermost regions , northernmost regions with very low population density and island , cross - border and mountain regions . 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 .


### 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 .


### in order to maximise the contribution of the csf funds and to provide clear strategic direction to the programming process at the level of member states and the regions , a common strategic framework should be established . the common strategic framework should facilitate sectoral and territorial coordination of union intervention under the csf funds and with other relevant union policies and instruments . ### in order to maximise the contribution of the european structural and investment funds and to provide strategic guiding principles to facilitate the programming process at the level of member states and the regions , a common strategic framework should be established . the common strategic framework should facilitate as well the sectoral and territorial coordination of union intervention under the european structural and investment funds and with other relevant union policies and instruments in line with the objectives defined in the treaty and the targets of the union strategy for smart , sustainable and inclusive growth , taking into account the key territorial challenges . the common strategic framework should be set out in an annex to this regulation .


### 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 .


### functions of the audit authority the audit authority shall ensure that audits are carried out on the management and control systems , on an appropriate sample of operations and on the annual accounts . the commission shall be empowered to adopt delegated acts in accordance with article 142 to set out the conditions which those audits shall fulfil . 2 . where audits are carried out by a body other than the audit authority , the audit authority shall ensure that any such body has the necessary functional independence . 3 . the audit authority shall ensure that audit work takes account of internationally accepted audit standards . 4 . the audit authority shall , within six months of adoption of an operational programme , prepare an audit strategy for performance of audits . the audit strategy shall set out the audit methodology , the sampling method for audits on operations and the planning of audits in relation to the current accounting year and the two subsequent accounting years . the audit strategy shall be updated annually from 2016 until and including 2022 . where a common management and control system applies to more than one operational programme , a single audit strategy may be prepared for the operational programmes concerned . the audit authority shall submit the audit strategy to the commission upon request . 5 . the audit authority shall draw up : an audit opinion on the annual accounts for the preceding accounting year , whose scope shall cover the completeness , accuracy and veracity of the annual accounts , the functioning of the management and control system and the legality and regularity of the underlying transactions ; an annual control report setting out the findings of the audits carried out during the preceding accounting year . the report under point shall set out any deficiencies found in the management and control system and any corrective measures taken or proposed to be taken . where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report . 6 . the commission shall adopt , by means of implementing acts , models for the audit strategy , the audit opinion and the annual control report , as well as the methodology for the sampling method referred to in paragraph 4 . these implementing acts shall be adopted in accordance with the examination procedure referred to in article 143 . 7 . 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 . ### functions of the audit authority the audit authority shall ensure that audits are carried out on the proper functioning of the management and control system of the operational programme and on an appropriate sample of operations on the basis of the declared expenditure . the declared expenditure shall be audited based on a representative sample and as a general rule on statistical sampling methods . a non - statistical sampling method may be used on the professional judgement of the audit authority in duly justified cases in accordance with international audit standards and in any case when the number of operations for an accounting year is insufficient to allow the use of statistical method . in such cases the size of the sample shall be sufficient to enable the audit authority to draw up a valid audit opinion in accordance with article 59 of the financial regulation . the non - statistical sample method shall cover a minimum of 5% of operations for which expenditure has been declared to the commission during an accounting year and 10% of the expenditure which has been declared to the commission during an accounting year . deleted 2 . where audits are carried out by a body other than the audit authority , the audit authority shall ensure that any such body has the necessary functional independence . 3 . the audit authority shall ensure that audit work takes account of internationally accepted audit standards . 4 . the audit authority shall , within eight months of adoption of an operational programme , prepare an audit strategy for performance of audits . the audit strategy shall set out the audit methodology , the sampling method for audits on operations and the planning of audits in relation to the current accounting year and the two subsequent accounting years . the audit strategy shall be updated annually from 2016 until and including 2022 . where a common management and control system applies to more than one operational programme , a single audit strategy may be prepared for the operational programmes concerned . the audit authority shall submit the audit strategy to the commission upon request . 5 . the audit authority shall draw up : an audit opinion in accordance with article 59 of the financial regulation ; a control report setting out the main findings , including deficiencies found in the management and control systems , of the audits carried out according to paragraph 116 and the proposed and implemented corrective actions . deleted where a common management and control system applies to more than one operational programme , the information required under point may be grouped in a single report . 6 . the commission shall adopt , by means of implementing acts , models for the audit strategy , the audit opinion and the control report . these implementing acts shall be adopted in accordance with the advisory procedure referred to in article 143 . 6a . the commission shall be empowered to adopt delegated acts in accordance with article 142 to set out the scope and content of audits of operations and audits of the accounts and the methodology for the selection of the sample of operations referred to in paragraph 1 . 7 . 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 .


### member states shall concentrate support , in accordance with the fund - specific rules , on actions bringing the greatest added value in relation to the union strategy for smart , sustainable and inclusive growth , addressing the challenges identified in the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty , and taking into account national and regional needs . ### member states shall concentrate support , in accordance with the fund - specific rules , on actions bringing the greatest added value in relation to the achievement of the headline targets of the union strategy for smart , sustainable and inclusive growth , addressing the challenges identified in the country - specific recommendations , as translated in the context of the national reform programme and other strategies , under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty , and taking into account national , regional and local needs .


### member states shall concentrate support , in accordance with the fund - specific rules , on actions bringing the greatest added value in relation to the union strategy for smart , sustainable and inclusive growth , addressing the challenges identified in the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty , and taking into account national and regional needs . ### member states shall concentrate support , in accordance with the fund - specific rules , on interventions bringing the greatest added value in relation to the union strategy for smart , sustainable and inclusive growth taking into account the key territorial challenges for different types of territories in line with the csf , the challenges identified in the national reform programme , where appropriate , and relevant country - specific recommendations under article 121 of the treaty on the functioning of the european union and the relevant council recommendations adopted under article 148 of the treaty on the functioning of the european union . provisions on thematic concentration under the fund - specific rules do not apply to technical assistance .


### 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 . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . in cases where , as a result of a performance review , there is evidence that a priority failed to achieve the milestones set out in the performance framework , the commission should call upon the member state to propose amendments to the relevant programme and when the member state fails to respond satisfactorily within 3 months , the commission should be able to suspend all or part of an interim payment of a priority of a programme , in order to ensure that the union budget is not used in a wasteful or inefficient way . the suspension should be lifted as soon as the member state takes the necessary action .


### in order to promote the treaty objectives of economic , social and territorial cohesion , the ‘ investment for growth and jobs’ goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75% of the eu - 27 average should receive at least two thirds of their 2007 - 2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ‘ investment for growth and jobs’ goal from the cf . ### in order to promote the treaty objectives of economic , social and territorial cohesion , the ‘ investment for growth and jobs’ goal should support all regions . to provide balanced and gradual support and reflect the level of economic and social development , resources under that goal should be allocated from the erdf and the esf among the less developed regions , the transition regions and the more developed regions according to their gross domestic product per capita in relation to the eu average . in order to ensure the long - term sustainability of investment from the structural funds , to consolidate the development achieved and to encourage the economic growth and social cohesion of the european regions , regions whose gdp per capita for the 2007 - 2013 period was less than 75% of the average of the eu - 25 for the reference period but whose gdp per capita has grown to more than 75% of the eu - 27 average and regions designated with phasing - out status in the 2007 - 2013 period should receive at least two thirds of their 2007 - 2013 allocation . member states whose per capita gross national income is less than 90 % of that of the union average should benefit under the ‘ investment for growth and jobs’ goal from the cf . single region island states eligible for funding from the cohesion fund in 2013 and outermost regions falling into the categories of transition and more developed regions should receive at least four fifths of their 2007 - 2013 allocations under the funds as defined in article 1 .


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional needs for sustainable development . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . an ex ante conditionality should be applied only where it has a direct link to and impact on the effective implementation of the european structural and investment funds . the commission should assess the information provided by member states on the fulfilment of ex ante conditionalities in the framework of its assessment of the partnership agreement and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme , in accordance with fund - specific rules .