### report on implementation of financial instruments the managing authority shall send to the commission a specific report covering the operations comprising financial instruments as an annex to the annual implementation report . 2 . the report referred to in paragraph 1 shall include , for each financial instrument , the following information : identification of the programme and of the priority from which support from the csf funds is provided ; description of the financial instrument and implementation arrangements ; identification of the bodies to whom implementation tasks have been entrusted ; total amount of support by programme and priority or measure to the financial instrument included in requests for payment submitted to the commission ; total amount of support paid or committed in guarantee contracts by the financial instrument to the final recipients by programme and priority or measure included in requests for payment submitted to the commission ; revenues of , and repayments to , the financial instrument ; multiplier effect of investments made by the financial instrument and value of investments and participations ; contribution of the financial instrument to the achievement of the indicators of the programme and of the priority concerned . 3 . the commission shall adopt , by means of implementing act , in accordance with the examination procedure referred to in article 143 , the uniform conditions concerning the monitoring and provision of monitoring information to the commission , including in respect of financial instruments referred to in article 33 . ### report on implementation of financial instruments the managing authority shall send to the commission a specific report covering the operations comprising financial instruments as an annex to the annual implementation report . 2 . the report referred to in paragraph 1 shall include , for each financial instrument , the following information : identification of the programme and of the priority or measure from which support from the european structural and investment funds is provided ; description of the financial instrument and implementation arrangements ; identification of the bodies implementing financial instruments , and the bodies implementing funds of funds where applicable , as referred to under articles 33 , 33 , and , and the financial intermediaries referred to under article 33 ; total amount of programme contributions by priority or measure paid to the financial instrument ; total amount of support paid to the final recipients or to the benefit of final recipients , or committed in guarantee contracts by the financial instrument for investments in final recipients , as well as management costs incurred or management fees paid , by programme and priority or measure ; the performance of the financial instrument including progress in its set - up and in selection of bodies implementing the financial instrument ; interest and other gains generated by support from the european structural and investment funds to the financial instrument , cumulative amounts of programme resources paid back to financial instruments from investments or from the release of resources committed , including capital repayments and gains and other earnings or yields , such as interest , guarantee fees , dividends , capital gains or any other income generated by investments ; progress in achieving the expected leverage effect of investments made by the financial instrument and value of investments and participations ; the value of equity investments , with respect to previous years ; contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned . the information in and may be included only in the annex to the annual implementation reports submitted in 2017 and 2019 as well as in the final report . the monitoring obligations as set out in and shall not be applied at the level of final . 2a . the commission shall adopt , by means of implementing act in accordance with the examination procedure laid down in article 143 , arrangements for uniform conditions concerning the models to be used when monitoring and reporting on financial instruments and on the reporting of monitoring information to the commission . 2b . each year , starting in 2016 , the commission shall within 6 months of the deadline for the submission of the annual implementation reports referred to in article 101 for the erdf , esf and the cf , article 82 of the eafrd regulation for the eafrd , and the relevant provisions of funds - specific rules for the emff provide summaries of the data on the progress made in financing and implementing the financial instruments , sent by the managing authorities in accordance with this article . these summaries shall be transmitted to the european parliament and the council and shall be made public . 3 . the commission shall ensure s uniform conditions for the implementation of this article by adopting , by means of implementing acts , in accordance with the examination procedure laid down in article 143 , the models to be used when reporting on financial instruments to the commission .


### within three months of the date of notification to the member state of the decision adopting a programme , the member state shall set up a committee to monitor implementation of the programme , in agreement with the managing authority . a member state may set up a single monitoring committee for programmes co - financed by the csf funds . ### within three months of the date of notification to the member state of the decision adopting a programme , the member state shall set up a committee , in accordance with the institutional , legal and financial framework of the member state concerned , to monitor implementation of the programme , in agreement with the managing authority . a member state may set up a single monitoring committee for more than one programme co - financed by the european structural and invenstment funds .


### each monitoring committee shall draw up and adopt its rules of procedure . ### each monitoring committee shall draw up and adopt its rules of procedure within the institutional , legal and financial framework of the member state concerned .


### the monitoring committee shall be composed of representatives of the managing authority and intermediate bodies and of representatives of the partners . each member of the monitoring committee shall have a voting right . ### the monitoring committee shall be composed of representatives of the managing authority and intermediate bodies and of representatives of the partners referred to in article 5 , with particular consideration given to the partners involved in the preparation of the programmes concerned . each member of the monitoring committee shall have a voting right . the member states shall ensure that the monitoring committee is gender balanced .


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


### the monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives . in doing so , it shall have regard to the financial data , common and programme - specific indicators , including changes in result indicators and progress towards quantified target values , and the milestones defined in the performance framework . ### the monitoring committee shall meet at least twice a year and shall review implementation of the programme and progress towards achieving its objectives and the observance of the horizontal principles as set out in articles 6 , 7 , 7a and 8 . in doing so , it shall have regard to the financial data , common and programme - specific indicators , including changes in result indicators and progress towards quantified target values , and the milestones defined in the performance framework .


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


### the member state shall submit a final report on implementation of the programme by 30 september 2023 for the erdf , esf and cohesion fund and an annual implementation report for the eafrd and emff . ### the member state shall submit a final report on implementation of the programme by 31 december 2023 for the erdf , esf and cohesion fund and an annual implementation report for the eafrd and emff .


### annual implementation reports shall set out information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in result indicators , and the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also for selected operations . they shall also set out actions taken to fulfil the ex - ante conditionalities and any issues which affect the performance of the programme , and the corrective measures taken . ### annual implementation reports shall set out information on implementation of the programme , or programme for a macro - regional development fund , and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in result indicators , and the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also for selected operations . they shall also set out actions taken to fulfil the ex - ante conditionalities and any issues which affect the performance of the programme , or programme for a macro - regional development fund , and the corrective measures taken .


### annual implementation reports shall set out information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in result indicators , and the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also for selected operations . they shall also set out actions taken to fulfil the ex ante conditionalities and any issues which affect the performance of the programme , and the corrective measures taken . ### annual implementation reports shall set out key information on implementation of the programme and its priorities by reference to the financial data , common and programme - specific indicators and quantified target values , including changes in the values of result indicators where appropriate , and beginning from the report submitted in 2017 the milestones defined in the performance framework . the data transmitted shall relate to values for indicators for fully implemented operations and also , where possible , having regard to the stage of implementation , for selected operations . they shall also set out a synthesis of the findings of all evaluations of the programme that have become available during the previous financial year , any issues which affect the performance of the programme , and the measures taken . the annual implementation report submitted in 2016 may also set out , where relevant , actions taken to fulfil ex - ante conditionalities .


### the commission shall examine the annual implementation report and inform the member state of its observations within two months of the receipt of the annual implementation report and within 5 months of receipt of the final report . where the commission does not provide observations within these deadlines , the reports shall be deemed to be accepted . ### the commission shall examine the annual and final implementation report and inform the member state of its observations within two months of the receipt of the annual implementation report and within 5 months of receipt of the final implementation report . where the commission does not provide observations within these deadlines , the reports shall be deemed to be accepted .


### the commission may issue recommendations to address any issues which affect the implementation of the programme . where such recommendations are made , the managing authority shall inform the commission within three months of the corrective measures taken . ### the commission may make observations to the managing authority concerning issues which significantly affect the implementation of the programme . where such observations are made , the managing authority shall provide all necessary information with regard to those observations and , where appropriate , inform the commission within three months of measures taken .


### the annual review meeting shall be chaired by the commission . ### the annual review meeting shall be chaired by the commission or , if the member state so requests , co - chaired by the member state and the commission .


### the member state shall ensure that appropriate follow - up is given to any comments of the commission following the meeting . ### the member state shall ensure that appropriate follow - up is given to comments of the commission following the meeting concerning issues , which significantly affect the implementation of the programme and where appropriate , inform the commission within three months of measures taken .


### progress report ### progress report and strategic report


### by 30 june 2017 and by 30 june 2019 , the member state shall submit to the commission a progress report on implementation of the partnership contract as at 31 december 2016 and 31 december 2018 respectively . ### by 31 august 2017 and by 31 august 2019 , the member state shall submit to the commission a progress report on implementation of the partnership agreement as at 31 december 2016 and 31 december 2018 respectively .


### progress towards achievement of the union strategy for smart , sustainable and inclusive growth , in particular in respect of the milestones set out for each programme in the performance framework and the support used for climate change objectives ; ### progress towards achievement of the union strategy for smart , sustainable and inclusive growth , in particular in respect of reasonable , measurable , qualitative and quantitative milestones based on the member state’s past achievements and challenges set out for each programme in the performance framework and the support used for climate change , poverty reduction and overall and youth unemployment reduction objectives ;


### the progress report shall set out information on and assess : changes in the development needs in the member state since the adoption of the partnership contract ; progress towards achievement of the union strategy for smart , sustainable and inclusive growth , in particular in respect of the milestones set out for each programme in the performance framework and the support used for climate change objectives ; whether the actions taken to fulfil ex ante conditionalities not fulfilled at the date of adoption of the partnership contract have been implemented in accordance with the timetable established ; implementation of mechanisms to ensure coordination between the csf funds and other union and national funding instruments and with the eib ; progress towards achievement of priority areas established for cooperation ; actions taken to reinforce the capacity of the member state authorities and , where appropriate , beneficiaries to administer and use the csf funds ; actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries ; the role of the partners referred in article 5 in the implementation of the partnership contract . ### the progress report shall set out information on and assess : changes in the development needs in the member state since the adoption of the partnership agreement ; progress towards achievement of the union strategy for smart , sustainable and inclusive growth , as well as of the fund - specific missions referred to in article 4 . 1 , through the contribution of the european structural and investment funds to the thematic objectives selected , and in particular in respect to the milestones set out in the performance framework for each programme , and to the support used for climate change objectives ; whether the actions taken to fulfil the applicable ex ante conditionalities set out in the partnership agreement not fulfilled at the date of adoption of the partnership agreement have been implemented in accordance with the timetable established . this only applies to the 2017 progress report ; implementation of mechanisms to ensure coordination between the european structural and invenstment funds and other union and national funding instruments and with the eib ; implementation of the integrated approach to territorial development , or a summary of the implementation of the integrated approaches based on the programmes , including progress towards achievement of priority areas established for cooperation ; where appropriate , actions taken to reinforce the capacity of the member state authorities and beneficiaries to administer and use the european structural and investment funds ; actions taken and progress achieved towards a reduction in the administrative burden for beneficiaries ; the role of the partners referred to in article 5 in the implementation of the partnership agreement ; a summary of the actions taken in relation to the application of horizontal principles and policy objectives for the implementation of the european structural and investment funds .


### where the commission determines , within three months of the date of submission of the progress report that the information submitted is incomplete or unclear , it may request additional information from the member state . the member state shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly . ### where the commission determines , within three months of the date of submission of the progress report that the information submitted is incomplete or unclear , it may request additional information from the member state , or group of member states that have established a macro - regional development fund . the member state , or the group of member states that have established a macro - regional development fund , shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly .


### where the commission determines , within three months of the date of submission of the progress report that the information submitted is incomplete or unclear , it may request additional information from the member state . the member state shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly . ### where the commission determines , within two months of the date of submission of the progress report that the information submitted is incomplete or unclear in a manner which significantly affect the quality and reliability of the assessment concerned , it may without causing unjustified delays and providing reasons for the alleged lack of quality and reliability request additional information from the member state . the member state shall provide to the commission the information requested within three months and , where appropriate , shall revise the progress report accordingly .


### member states shall provide the resources necessary for carrying out evaluations , and shall ensure that procedures are in place to produce and collect the data necessary for evaluations , including data related to common and where appropriate programme - specific indicators . ### member states shall provide the resources necessary for carrying out qualitative and quantitative evaluations , and shall ensure that procedures are in place to produce and collect the data necessary for evaluations , including data related to common qualitative and quantitative , and where appropriate programme - specific indicators .


### general provisions evaluations shall be carried out to improve the quality of the design and implementation of programmes , as well as to assess their effectiveness , efficiency and impact . impact of programmes shall be evaluated in accordance with the mission of the respective csf funds in relation to the targets for the union strategy for smart , sustainable and inclusive growth1 as well as in relation to gross domestic product and unemployment , where appropriate . 2 . member states shall provide the resources necessary for carrying out evaluations , and shall ensure that procedures are in place to produce and collect the data necessary for evaluations , including data related to common and where appropriate programme - specific indicators . 3 . evaluations shall be carried out by experts that are functionally independent of the authorities responsible for programme implementation . the commission shall provide guidance on how to carry out evaluations . 4 . all evaluations shall be made public in their entirety . ### general provisions evaluations shall be carried out to improve the quality of the design and implementation of programmes , as well as to assess their effectiveness , efficiency and impact . impact of programmes shall be evaluated in accordance with the mission of the respective european structural and investment funds in relation to the targets for the union strategy for smart , sustainable and inclusive growth1 and having regard to the size of the programme in relation to gross domestic product and unemployment of the programme area concerned , where appropriate . 2 . member states shall provide the resources necessary for carrying out evaluations , and shall ensure that procedures are in place to produce and collect the data necessary for evaluations , including data related to common and where appropriate programme - specific indicators . 3 . evaluations shall be carried out by internal or external experts that are functionally independent of the authorities responsible for programme implementation . the commission shall provide guidance on how to carry out evaluations , immediately following the entry into force of this regulation . 4 . all evaluations shall be made public .


### 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 contribution to the union strategy for smart , sustainable and inclusive growth , having regard to the selected thematic objectives , the horizontal principles as set out in articles 6 , 7 , 7a and 8 of this regulation and priorities , taking into account national and regional needs ;


### 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 consistency of the selected thematic objectives , the priorities and corresponding objectives of the programmes and the horizontal principles set out in articles 6 , 7 , 7a and 8 of this regulation , 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 ; ### the relevance and clarity of the proposed programme and horizontal indicators ;


### 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 .


### the ex ante evaluation shall incorporate , where appropriate , the requirements for strategic environmental assessment set out in implementation of directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment1 . ### ex ante evaluations shall incorporate , where appropriate , the requirements for strategic environmental assessment set out in implementation of directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment , taking into account climate change mitigation needs1 . 1 oj l197 , 21 . 7 . 2001 , p . 30 .


### evaluation during the programming period an evaluation plan shall be drawn up by the managing authority for each programme and submitted in accordance with the fund - specific rules . 2 . member states shall ensure that appropriate evaluation capacity is available . 3 . during the programming period , managing authorities shall carry out evaluations including evaluations to assess effectiveness , efficiency and impact , for each programme on the basis of the evaluation plan . at least once during the programming period , an evaluation shall assess how support from the csf funds has contributed to the objectives for each priority . all evaluations shall be examined by the monitoring committee and sent to the commission . 4 . the commission may carry out , at its own initiative , evaluations of programmes . ### evaluation during the programming period an evaluation plan shall be drawn up by the managing authority or member state and may cover more than one programme . it shall be submitted in accordance with the fund - specific rules . 2 . member states shall ensure that appropriate evaluation capacity is available . 3 . during the programming period , the managing authority shall ensure that evaluations are carried out , including evaluations to assess effectiveness , efficiency and impact , for each programme on the basis of the evaluation plan and that they are subject to appropriate follow up in accordance to the fund - specific rules . 4 . the commission may carry out , at its own initiative , evaluations of programmes . it shall inform the managing authority and the results shall be sent to the managing authority and provided to the monitoring committee concerned .


### the ex post evaluations shall be carried out by the commission or by the member states , in close cooperation . ex post evaluations shall examine the effectiveness and efficiency of the csf funds and their contribution to the union strategy for smart , sustainable and inclusive growth in accordance with specific requirements established in the fund - specific rules . ex post evaluations shall be completed by 31 december 2023 . ### the ex post evaluations shall be carried out by the commission or by the member states , in close cooperation with the commission . ex post evaluations shall examine the effectiveness and efficiency of the european structural and investment funds and their contribution to the union strategy for smart , sustainable and inclusive growth taking account of the targets established for the union strategy and in accordance with specific requirements established in the fund - specific rules . ex post evaluations shall be completed by 31 december 2023 . for each of the european structural and investment funds , the commission shall prepare , by 31 december 2024 , a synthesis report outlining the main conclusions of ex - post evaluations .


### technical assistance at the initiative of the commission at the initiative of , or on behalf of the commission , the csf funds may support the preparatory , monitoring , administrative and technical assistance , evaluation , audit and control measures necessary for implementing this regulation . those measures may include but not limited to : assistance for project preparation and appraisal , including with the eib ; support for institutional strengthening and administrative capacity - building for the effective management of the csf funds ; studies linked to the commission ' s reporting on the csf funds and the cohesion report ; measures related to the analysis , management , monitoring , information exchange and implementation of the csf funds , as well as measures relating to the implementation of control systems and technical and administrative assistance ; evaluations , expert reports , statistics and studies , including those of a general nature , concerning the current and future operation of the csf funds , which may be carried out where appropriate by the eib ; actions to disseminate information , support networking , carry out communication activities , raise awareness and promote cooperation and exchange of experience , including with third countries . to bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the commission , the resources allocated to communication actions under this regulation shall also contribute to the corporate communication of the political priorities of the european union as far as they are related to the general objectives of this regulation ; the installation , operation and interconnection of computerised systems for management , monitoring , audit , control and evaluation ; actions to improve evaluation methods and the exchange of information on evaluation practices ; actions related to audit ; the strengthening of national and regional capacity regarding investment planning , needs assessment , preparation , design and implementation of financial instruments , joint action plans and major projects , including joint initiatives with the eib . ### technical assistance at the initiative of the commission at the initiative of the commission , the european structural and investment funds may support the preparatory , monitoring , administrative and technical assistance , evaluation , audit and control measures necessary for implementing this regulation . such measures may be implemented : directly by the commission ; or indirectly , by entities and persons other than member states in accordance with article 60 of the financial regulation . those measures may include in particular : assistance for project preparation and appraisal , including with the eib ; support for institutional strengthening and administrative capacity - building for the effective management of the european structural and investment funds ; studies linked to the commission ' s reporting on the european structural and investment funds and the cohesion report ; measures related to the analysis , management , monitoring , information exchange and implementation of the european structural and investment funds , as well as measures relating to the implementation of control systems and technical and administrative assistance ; evaluations , expert reports , statistics and studies , including those of a general nature , concerning the current and future operation of the european structural and investment funds , which may be carried out where appropriate by the eib ; actions to disseminate information , support networking , carry out communication activities , raise awareness and promote cooperation and exchange of experience , including with third countries . to bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the commission , the resources allocated to communication actions under this regulation shall also contribute to the corporate communication of the political priorities of the european union as far as they are related to the general objectives of this regulation ; the installation , operation and interconnection of computerised systems for management , monitoring , audit , control and evaluation ; actions to improve evaluation methods and the exchange of information on evaluation practices ; actions related to audit ; the strengthening of national and regional capacity regarding investment planning , needs assessment , preparation , design and implementation of financial instruments , joint action plans and major projects , including joint initiatives with the eib ; the dissemination of good practices in order to assist member states to strengthen the capacity of the relevant partners referred to in article 5 and their umbrella organisations .


### at the initiative of a member state , the csf funds may support actions for preparation , management , monitoring , evaluation , information and communication , networking , complaint resolution , and control and audit . the csf funds may be used by the member state to support actions for the reduction of administrative burden for beneficiaries , including electronic data exchange systems , and actions to reinforce the capacity of member state authorities and beneficiaries to administer and use the csf funds . these actions may concern preceding and subsequent programming periods . ### at the initiative of a member state , the csf funds may support actions for preparation , management , monitoring , evaluation , information and communication , networking , complaint resolution , and control and audit . the csf funds may be used by the member state to support actions for the reduction of administrative burden for beneficiaries , including electronic data exchange systems , and additional actions to reinforce the capacity of member state authorities , partners referred to in article 5 , with the strong representation of social and economic partners , in order to promote the exchange of views and the best practice among local action groups referred to in article 30 at national level , and of beneficiaries to administer and use the csf funds . these actions may concern preceding and subsequent programming periods .


### technical assistance of the member states at the initiative of a member state , the csf funds may support actions for preparation , management , monitoring , evaluation , information and communication , networking , complaint resolution , and control and audit . the csf funds may be used by the member state to support actions for the reduction of administrative burden for beneficiaries , including electronic data exchange systems , and actions to reinforce the capacity of member state authorities and beneficiaries to administer and use the csf funds . these actions may concern preceding and subsequent programming periods . 2 . the fund - specific rules may add or exclude actions which may be financed by the technical assistance of each csf fund . ### technical assistance of the member states at the initiative of a member state , the&#160 ; european structural and investment&#160 ; funds may support actions for preparation , management , monitoring , evaluation , information and communication , networking , complaint resolution , and control and audit . the european structural and investment funds may be used by the member state to support actions for the reduction of administrative burden for beneficiaries , including electronic data exchange systems , actions to reinforce the capacity of member state authorities and beneficiaries to administer and use these funds , as well as actions to reinforce the capacity of , and exchange best practices between , relevant partners in line with article 5 . these actions may concern preceding and subsequent programming periods . 2 . the fund - specific rules may add or exclude actions which may be financed by the technical assistance of each european structural and investment fund .


### revenue - generating operations net revenue generated after completion of an operation over a specific reference period shall be determined in advance by one of the following methods : application of a flat rate revenue percentage for the type of operation concerned ; calculation of the current value of the net revenue of the operation , taking into account the application of the polluter - pays principle and , if appropriate , considerations of equity linked to the relative prosperity of the member state concerned . the eligible expenditure of the operation to be co - financed shall not exceed the current value of the investment cost of the operation less the current value of the net revenue , determined according to one of these methods . the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the flat rate referred to in point above . the commission shall adopt the methodology under point by means of implementing acts in accordance with the examination procedure referred to in article 143 . 2 . where it is objectively not possible to determine the revenue in advance according to the methods set out in paragraph 1 , the net revenue generated within three years of the completion of an operation or by 30 september 2023 , whichever is earlier , shall be deducted from the expenditure declared to the commission . 3 . paragraphs 1 and 2 shall apply only to operations whose total cost exceeds eur 1 000 000 . 4 . this article shall not apply to the esf . 5 . paragraphs 1 and 2 shall not apply to operations subject to the rules on state aid or to support to or from financial instruments . ### operations generating net revenue after completion - 1a . this article shall apply to operations which generate net revenue after their completion . for the purposes of this article ‘ net revenue ' shall mean cash in - flows directly paid by users for the goods or services provided by the operation , such as charges borne directly by users for the use of infrastructure , sale or rent of land or buildings , or payments for services less any operating costs and replacement costs of short - life equipment incurred during the corresponding period . operating cost - savings generated by the operation shall be included in the net revenue unless they are offset by an equal reduction in operating subsidies . where not all the investment cost is eligible for co - financing , the net revenue shall be allocated pro rata to the eligible and non - eligible parts of the investment cost . deleted deleted deleted deleted deleted deleted 1a . the eligible expenditure of the operation to be co - financed from the funds shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after completion . deleted 2a . the potential net revenue of the operation shall be determined in advance by one of the following methods chosen by the managing authority for a sector , subsector or type of operation : application of a flat rate net revenue percentage for the sector or subsector applicable to the operation as defined in annex [ xxx ] or in any of the delegated acts hereinafter referred to . the commission shall be empowered to adopt delegated acts in accordance with article 142 in duly justified cases to amend the annex by adjusting the flat rates established in annex [ xxx ] taking into account historic data and the potential for cost recovery and the polluter - pays principle where applicable . the commission shall be empowered to adopt delegated acts in accordance with article 142 establishing flat rates for sectors or subsectors within the fields of ict , research , development and innovation and energy efficiency1 . the commission shall notify the delegated acts to the european parliament and the council not later than 30 june 2015 . 1 the commission declaration is at the end of this table in addition , the commission shall be empowered to adopt delegated acts in accordance with article 142 in duly justified cases for additional sectors or subsectors including subsectors for sectors in the annex [ xxx ] falling under the thematic objectives defined in article 9 and supported by the esi funds . where this method is applied , all the net revenue generated during implementation and after completion of the operation is considered to be taken into account by the application of the flat rate and is therefore not deducted subsequently from the eligible expenditure of the operation . calculation of discounted net revenue of the operation , taking into account the reference period appropriate to the sector or subsector applicable to the operation , the profitability normally expected of the category of investment concerned , application of the polluter - pays principle and , if appropriate , considerations of equity linked to the relative prosperity of the member state or region concerned . when a flat rate for a new sector or subsector has been established by the adoption of a delegated act , a managing authority may choose to apply the method set out in point for new operations in relation to the sector or subsector concerned . the commission shall be empowered to adopt delegated acts , in accordance with article 142 , laying down the method referred to in point . where this method is applied , the net revenue generated during implementation of the operation , resulting from sources of revenue not taken into account in determining the potential net revenue of the operation , is deducted from the eligible expenditure of the operation , no later than at the final payment claim submitted by the beneficiary . deleted 3a . the method by which the net revenue shall be deducted from the expenditure of the operation included in the payment request submitted to the commission shall be determined in accordance with national rules . deleted 4a . as an alternative to the application of the methods laid down in paragraph 3 , the maximum co - financing rate referred to in article 53 may at the request of a member state be decreased at the moment of adoption of a programme for a priority or measure under which all operations to be supported under that priority or measure could apply a uniform flat rate in accordance with paragraph 3 . the decrease shall be not less than the amount calculated by multiplying the maximum union co - financing rate applicable under the fund - specific rules by the relevant flat rate referred to in paragraph 3 . where this method is applied , all the net revenue generated during implementation and after completion of the operation is considered to be taken into account by application of the decreased co - financing rate and is therefore not deducted subsequently from the eligible expenditure of the operations . 4b . where it is objectively not possible to determine the revenue in advance according to one of the methods set out in paragraphs 3 or 5 , the net revenue generated within three years of the completion of an operation or by 30 september 2023 , whichever is earlier , shall be deducted from the expenditure declared to the commission . 4c . paragraphs 1 to 6 shall not apply to : operations or parts of operations supported solely by the esf ; operations whose total eligible cost before application of paragraphs 1 - 6 does not exceed eur 1 000 000 ; repayable assistance subject to an obligation for full repayment and prizes ; technical assistance ; support to or from financial instruments ; operations for which public support take the form of lump sums or standard scale unit costs ; operations implemented under a joint action plan ; operations for which amounts or rates of support are defined in annex 1 to eafrd regulation . notwithstanding point , where a member state applies paragraph 5 , it can include in the relevant priority or measure the operations whose total eligible cost before application of paragraphs 1 to 6 does not exceed eur 1 000 000 . deleted


### expenditure shall be eligible for a contribution from the csf funds if it has been incurred and paid by a beneficiary between the date of submission of the programme to the commission or from 1 january 2014 , whichever is earlier , and 31 december 2022 . in addition , expenditure shall only be eligible for a contribution from the eafrd and the emff if the relevant aid is actually paid by the paying agency between 1 january 2014 and 31 december 2022 . ### expenditure shall be eligible for a contribution from the european structural and investment funds if it has been incurred by a beneficiary and paid between the date of submission of the programme to the commission or from 1 january 2014 , whichever is earlier , and 31 december 2022 . in addition , expenditure shall only be eligible for a contribution from the eafrd and the emff if the relevant aid is actually paid by the paying agency between 1 january 2014 and 31 december 2022 .


### net revenue directly generated by an operation during its implementation which has not been taken into account at the time of approval of the operation , shall be deducted from the eligible expenditure of the operation in the final payment claim submitted by the beneficiary . this rule shall not apply to financial instruments and prizes . ### this paragraph shall apply to operations which generate net revenue during their implementation and to which the provisions of article 54 , paragraphs 1 - 6 do not apply . the eligible expenditure of the operation to be co - financed from the european structural and investment funds shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation , not later than at the final payment claim submitted by the beneficiary . where not all the costs are eligible for co - financing , the net revenue shall be allocated pro rata to the eligible and non - eligible parts of the cost . this rule in this paragraph shall not apply to : technical assistance , financial instruments , repayable assistance subject to an obligation for full repayment , prizes , operations subject to the rules on state aid , operations for which public support take the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account ex ante , operations implemented under a joint action plan provided that the net revenue has been taken into account ex ante , operations for which amounts or rates of support are defined in annex 1 to eafrd regulation , or operations for which the total eligible cost does not exceed eur 50&#160 ; 000 . for the purposes of this article and article 54 , any payment received by the beneficiary arising from a contractual condition on a breach of contract between the beneficiary and third parties or has occurred as a result of the withdrawal of its offer by a third party chosen in public procurement rules shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation .


### in the case of amendment of a programme , expenditure becoming eligible because of the amendment to the programme shall only be eligible from the date of submission to the commission of the request for amendment . the fund - specific rules for the emff may derogate from the first subparagraph . ### in the case of amendment of a programme , expenditure becoming eligible because of the amendment to the programme shall only be eligible from the date of submission to the commission of the request for amendment or , in case of application of article 87 , from the date of entry into force of the decision amending the programme . deleted


### an operation may receive support from one or more csf funds and from other union instruments , provided that the expenditure item included in a request for payment for reimbursement by one of the csf funds does not receive support from another fund or union instrument , or support from the same fund under another programme . ### an operation may receive support from one or more csf funds and from other union instruments , provided that the expenditure item included in a request for payment for reimbursement by one of the csf funds does not receive support from another fund or union instrument , or support from the same fund under another programme , or programme for a macro - regional development fund .


### an operation may receive support from one or more csf funds and from other union instruments , provided that the expenditure item included in a request for payment for reimbursement by one of the csf funds does not receive support from another fund or union instrument , or support from the same fund under another programme . ### an operation may receive support from one or more european structural and investment funds or from one or more programmes and from other union instruments , provided that the expenditure item included in a request for payment for reimbursement by one of the european structural and investment funds does not receive support from another fund or union instrument , or support from the same fund under another programme .


### forms of support the csf funds shall be used to provide support in the form of grants , prizes , repayable assistance and financial instruments , or a combination thereof . in the case of repayable assistance , the support repaid to the body that provided it , or to another competent authority of the member state , shall be kept in a separate account and reused for the same purpose or in accordance with the objectives of the programme . ### forms of support the european structural and investment funds shall be used to provide support in the form of grants , prizes , repayable assistance and financial instruments , or a combination thereof . in the case of repayable assistance , the support repaid to the body that provided it , or to another competent authority of the member state , shall be kept in a separate account or separated with accounting codes and reused for the same purpose or in accordance with the objectives of the programme .


### forms of grants ### forms of grants and repayable assistance


### grants may take any of the following forms : ### grants and repayable assistance may take any of the following forms :


### the amounts referred to in paragraph 1 , and shall be established on the basis of : a fair , equitable and verifiable calculation method based on : statistical data or other objective information ; or the verified historical data of individual beneficiaries or the application of their usual cost accounting practices ; methods and corresponding scales of unit costs , lump sums and flat rates applicable in union policies for a similar type of operation and beneficiary ; methods and corresponding scales of unit costs , lump sums and flat rates applied under schemes for grants funded entirely by the member state for a similar type of operation and beneficiary ; rates established by this regulation or the fund - specific rules . ### the amounts referred to in paragraph 1 , and shall be established in one of the following ways : a fair , equitable and verifiable calculation method based on : statistical data or other objective information ; or the verified historical data of individual beneficiaries ; or the application of the usual cost accounting practices of individual beneficiaries ; in accordance with the rules for application of corresponding scales of unit costs , lump sums and flat rates applicable in union policies for a similar type of operation and beneficiary ; in accordance with the rules for application of corresponding scales of unit costs , lump sums and flat rates applied under schemes for grants funded entirely by the member state for a similar type of operation and beneficiary ; rates established by this regulation or the fund - specific rules .


### a flat rate of up to 15 % of eligible direct staff costs ; ### a flat rate of up to 20 % of eligible direct staff costs ;


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


### specific eligibility rules for grants ### specific eligibility rules for grants and repayable assistance


### in the case of provision of land or real estate , the value is certified by an independent qualified expert or duly authorised official body and does not exceed the limit laid down in paragraph 3 ; ### in the case of provision of land or real estate , a cash payment for the purposes of a lease agreement of a nominal amount per annum not exceeding a single unit of the currency of the member state may be made . the value of the land or real estate must be certified by an independent qualified expert or duly authorised official body and does not exceed the limit laid down in paragraph 3 ;


### value added tax . however , vat amounts shall be eligible where they are not recoverable under national vat legislation and are paid by a beneficiary other than non - taxable person as defined in the first subparagraph of article 13 of directive 2006 / 112 / ec , provided that such vat amounts are not incurred in relation to the provision of infrastructure . ### recoverable value added tax . however , vat amounts shall be eligible where they are not recoverable under national vat legislation .


### the following costs shall not be eligible for a contribution from the csf funds : interest on debt ; the purchase of land not built on and land built on in the amount exceeding 10% of the total eligible expenditure for the operation concerned . in exceptional and duly justified cases , a higher percentage may be permitted for operations concerning environmental conservation ; value added tax . however , vat amounts shall be eligible where they are not recoverable under national vat legislation and are paid by a beneficiary other than non - taxable person as defined in the first subparagraph of article 13 of directive 2006 / 112 / ec , provided that such vat amounts are not incurred in relation to the provision of infrastructure . ### the following costs shall not be eligible for a contribution from the european structural and investment funds and from the eur 10 , 000 million transferred from the cohesion fund to the connecting europe facility : interest on debt , except for grants given in the form of an interest rate subsidy or guarantee fee subsidy ; the purchase of land not built on and land built on in the amount exceeding 10% of the total eligible expenditure for the operation concerned . for derelict sites and for those formerly in industrial use which comprise buildings , this limit shall be increased to 15% . in exceptional and duly justified cases , this limit may be raised above the respective preceding percentages for operations concerning environmental conservation ; value added tax except where it is non - recoverable under national vat legislation .


### the total amount allocated under the programme to operations located outside the programme area does not exceed 10 % of the support from the erdf , cohesion fund and emff at the level of the priority , or 3% of the support from the eafrd at the level of the programme ; ### the total amount allocated under the programme to operations located outside the programme area does not exceed 15 % of the support from the erdf , cohesion fund and emff at the level of the priority , or 5 % of the support from the eafrd at the level of the programme ;


### for operations concerning promotional activities , expenditure may be incurred outside the union provided that the conditions set out in paragraph 2 and the obligations in relation to management , control and audit concerning the operation are fulfilled . ### for operations concerning technical assistance or promotional activities , expenditure may be incurred outside the union provided that the conditions set out in paragraph 2 and the obligations in relation to management , control and audit concerning the operation are fulfilled .


### an operation comprising investment in infrastructure or productive investment shall repay the contribution from the csf funds if within five years from the final payment to the beneficiary or within the period of time set out in the state aid rules , where applicable , it is subject to : ### an operation comprising investment in infrastructure or productive investment shall proportionally repay the contribution from the csf funds if within five years , and specifically in the case of smes within three years , from the final payment to the beneficiary or within the period of time set out in the state aid rules , where applicable , it is subject to :


### an operation comprising investment in infrastructure or productive investment shall repay the contribution from the csf funds if within five years from the final payment to the beneficiary or within the period of time set out in the state aid rules , where applicable , it is subject to : a cessation or relocation of a productive activity ; a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage ; or a substantial change affecting its nature , objectives or implementation conditions which would result in undermining its original objectives . sums unduly paid in respect of the operation shall be recovered by the member state . ### an operation comprising investment in infrastructure or productive investment shall repay the contribution from the european structural and investment funds if within five years from the final payment to the beneficiary or within the period of time set out in the state aid rules , where applicable , it is subject to : a cessation or relocation of a productive activity outside of the programme area ; or a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage ; or a substantial change affecting its nature , objectives or implementation conditions which would result in undermining its original objectives . sums unduly paid in respect of the operation shall be recovered by the member state in proportion to the period for which the requirements have not been fulfilled . member states may reduce the time limit set out in the first subparagraph to three years in cases concerning the maintenance of investments or jobs created by smes .


### management and control systems shall provide for : ### management and control systems shall , in accordance with art . 4 , provide for :


### the prevention , detection and correction of irregularities , including fraud , and the recovery of amounts unduly paid , together with any interest . ### the prevention , detection and correction of irregularities , including fraud , and the recovery of amounts unduly paid , together with any interest on late payments .


### member states shall fulfil the management , control and audit obligations and assume the resulting responsibilities laid down in the rules on shared management set out in the financial regulation and the fund - specific rules . in accordance with the principle of shared management , member states shall be responsible for the management and control of programmes . ### member states , or groups of member states that have established a macro - regional development fund , shall fulfil the management , control and audit obligations and assume the resulting responsibilities laid down in the rules on shared management set out in the financial regulation and the fund - specific rules . in accordance with the principle of shared management , member states shall be responsible for the management and control of programmes . a group of member states that has established a macro - regional development fund is responsible for the management and control of the macro - regional development programme .


### member states shall ensure that their management and control systems for programmes are set up in accordance with the provisions of the fund - specific rules and that the systems function effectively . ### member states or groups of member states that have established macro - regional development funds shall ensure that their management and control systems for programmes are set up in accordance with the provisions of the fund - specific rules and that the systems function effectively .


### member states shall ensure that their management and control systems for programmes are set up in accordance with the provisions of the fund - specific rules and that the systems function effectively . ### member states shall ensure that their management and control systems for programmes are set up in accordance with the provisions of the fund - specific rules and that those systems function effectively .


### 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 . commission officials or authorised commission representatives may carry out on - the - spot audits or checks upon giving at least twelve working days notice to the competent national authority , except in urgent cases . the commission shall respect the principle of proportionality by taking into account the need to avoid unjustified duplication of audits or checks carried out by member states , the level of risk to the union budget and the need to minimise administrative burdens for beneficiaries in accordance with the fund - specific rules . 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 or checks . 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


### financial management , clearance of accounts and financial corrections , decommitment ### financial management , examination and acceptance of accounts and financial corrections , decommitment


### financial management , clearance of accounts and financial corrections ### financial management , examination and acceptance of accounts and financial corrections


### common rules for payments payments by the commission of the contribution from the csf funds to each programme shall be made in accordance with budget appropriations and subject to available funding . each payment shall be posted to the earliest open budget commitment of the fund concerned . 2 . payments shall take the form of pre - financing , interim payments and payment of the annual balance , where applicable , and of the final balance . 3 . for forms of support under article 57 , and , the amounts paid to the beneficiary shall be regarded as eligible expenditure . ### common rules for payments payments by the commission of the contribution from the european structural and investment funds to each programme shall be made in accordance with budget appropriations and subject to available funding . each payment shall be posted to the earliest open budget commitment of the fund concerned . 2 . payments shall take the form of pre - financing , interim payments and payment of the final balance . 3 . for forms of support under article 57 , and , 58 and 59 , costs calculated on the applicable basis shall be regarded as eligible expenditure .


### common rules for calculating interim payments , payment of the annual balance , where applicable , and payment of final balance the fund - specific rules shall lay down rules for the calculation of the amount reimbursed as interim payments , payment of the annual balance , where applicable , and of the final balance . this amount shall be a function of the specific co - financing rate applicable to the eligible expenditure . ### common rules for calculating interim payments , and payment of final balance the fund - specific rules shall lay down rules for the calculation of the amount reimbursed as interim payments , and of the final balance . this amount shall be a function of the specific co - financing rate applicable to the eligible expenditure .


### amounts set out in programmes submitted by member states , forecasts of expenditure , statements of expenditure , requests for payment , annual accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euro . ### amounts set out in programmes submitted by member states , or in macro - regional development programmes submitted by groups of member states that have established a macro - regional development fund , forecasts of expenditure , statements of expenditure , requests for payment , annual accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euro .


### amounts set out in programmes submitted by member states , forecasts of expenditure , statements of expenditure , requests for payment , annual accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euro . ### amounts set out in programmes submitted by member states , forecasts of expenditure , statements of expenditure , requests for payment , accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euro .


### the payment deadline for an interim payment claim may be interrupted by the authorising officer by delegation within the meaning of the financial regulation for a maximum period of nine months if : following information provided by a national or union audit body , there is evidence to suggest a significant deficiency in the functioning of the management and control system ; the authorising officer by delegation has to carry out additional verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences ; there is a failure to submit one of the documents required under article 75 . the fund - specific rules for the emff may lay down additional basis for interruption of payments where a member state has failed to comply with its obligations under the common fisheries policy . ### the payment deadline for an interim payment claim may be interrupted by the authorising officer by delegation within the meaning of the financial regulation for a maximum period of six months if : following information provided by a national or union audit body , there is a clear evidence to suggest a significant deficiency in the functioning of the management and control system ; the authorising officer by delegation has to carry out additional verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences ; there is a failure to submit one of the documents required under article 59 of the financial regulation . the member state may agree to an extension of the interruption period for another 3 months . deleted


### the authorising officer by delegation may limit the interruption to the part of the expenditure covered by the payment claim affected by the elements referred to in paragraph 1 . the authorising officer by delegation shall inform the member state and the managing authority immediately of the reason for interruption and shall ask them to remedy the situation . the interruption shall be ended by the authorising officer by delegation as soon as the necessary measures have been taken . ### the authorising officer by delegation may limit the interruption to the part of the expenditure covered by the payment claim affected by the elements referred to in paragraph 1 . the authorising officer by delegation shall inform the member state , or group of member states that have established a macro - regional development fund , and the managing authority immediately of the reason for interruption and shall ask them to remedy the situation . the interruption shall be ended by the authorising officer by delegation as soon as the necessary measures have been taken .


### the authorising officer by delegation may limit the interruption to the part of the expenditure covered by the payment claim affected by the elements referred to in paragraph 1 . the authorising officer by delegation shall inform the member state and the managing authority immediately of the reason for interruption and shall ask them to remedy the situation . the interruption shall be ended by the authorising officer by delegation as soon as the necessary measures have been taken . ### the authorising officer by delegation shall limit the interruption to the part of the expenditure covered by the payment claim affected by the elements referred to in paragraph 1 , unless it is not possible to identify the part of the expenditure affected . the authorising officer by delegation shall inform the member state and the managing authority in writing immediately of the reason for interruption and shall ask them to remedy the situation . the interruption shall be ended by the authorising officer by delegation as soon as the necessary measures have been taken .


### clearance of accounts and financial corrections ### examination and acceptance of accounts


### the commission shall make financial corrections by cancelling all or part of the union contribution to a programme and effecting recovery from the member state in order to exclude from union financing expenditure which is in breach of applicable union and national law , including in relation to deficiencies in the management and control systems of member states which have been detected by the commission or the european court of auditors . ### the commission shall make financial corrections by cancelling all of the union contribution to a programme , or macro - regional development fund programme or part thereof , and effecting recovery from the member state in order to exclude from union financing expenditure which is in breach of applicable union and national law , including in relation to deficiencies in the management and control systems of member states which have been detected by the commission or the european court of auditors .


### the commission shall make financial corrections by cancelling all or part of the union contribution to a programme and effecting recovery from the member state in order to exclude from union financing expenditure which is in breach of applicable union and national law , including in relation to deficiencies in the management and control systems of member states which have been detected by the commission or the european court of auditors . ### the commission shall make financial corrections by cancelling all or part of the union contribution to a programme and effecting recovery from the member state in order to exclude from union financing expenditure which is in breach of applicable union and national law , including in relation to deficiencies in the management and control systems of member states which have been detected by the commission or the european court of auditors or which have been detected by the member state but which have not been the subject of an adequate correction by the member state concerned .


### when deciding on the amount of a financial correction under paragraph 1 , the commission shall take account of the nature and gravity of the breach of applicable union or national law and its financial implications for the union budget . ### when deciding on the amount of a financial correction under paragraph 1 , the commission shall respect the principle of proportionality by taking account of the nature and gravity of the breach of applicable law and the financial implications for the union budget . the commission shall keep european parliament informed of decisions taken to apply financial corrections .


### all programmes shall be submitted to a decommitment procedure established on the basis that amounts linked to a commitment which are not covered by pre - financing or a request for payment within a defined period shall be decommitted . 2 . the commitment related to the last year of the period will be decommitted according to the rules to be followed for the closure of the programmes . 3 . the fund - specific rules shall specify the precise application of the decommitment rule for each csf fund . 4 . that part of commitments still open shall be decommitted if any of the documents required for the closure has not been submitted to the commission by the deadlines established in the fund - specific rules . ### all programmes shall be submitted to a decommitment procedure established on the basis that amounts linked to a commitment which are not covered by pre - financing or a request for payment within a defined period shall be decommitted . the amounts included in the requests for the payment shall be taken into account notwithstanding that they are subject to an interruption of the payment deadline or suspension of payments . 2 . the commitment related to the last year of the period shall be decommitted according to the rules to be followed for the closure of the programmes . 3 . the fund - specific rules shall specify the precise application of the decommitment rule for each european structural and investment fund . 4 . that part of commitments still open shall be decommitted if any of the documents required for the closure has not been submitted to the commission by the deadlines established in the fund - specific rules .


### the amount concerned by decommitment shall be reduced by the amounts that the responsible body has not been able to declare to the commission because of : operations suspended by a legal proceeding or by an administrative appeal having suspensory effect ; or reasons of force majeure seriously affecting implementation of all or part of the programme . the national authorities claiming force majeure shall demonstrate the direct consequences of the force majeure on the implementation of all or part of the programme . the reduction may be requested once if the suspension or force majeure lasted up to one year , or several times corresponding to the duration of the force majeure or the number of years between the date of the legal or administrative decision suspending the implementation of the operation and the date of the final legal or administrative decision . 2 . by 31 january , the member state shall send to the commission information on the exceptions referred to in paragraph 1 for the amount to be declared by the end of preceding year . ### the amount concerned by decommitment shall be reduced by the following amounts : that part of the budget commitment for which the operations are suspended by a legal proceeding or by an administrative appeal having suspensory effect ; or that part of the budget commitment for which it has not been possible to make a request for payment for reasons of force majeure seriously affecting implementation of all or part of the programme . the national authorities claiming force majeure shall demonstrate the direct consequences of the force majeure on the implementation of all or part of the programme or for the purpose of subparagraphs and , the reduction may be requested once if the suspension or force majeure lasted up to one year , or several times corresponding to the duration of the force majeure or the number of years between the date of the legal or administrative decision suspending the implementation of the operation and the date of the final legal or administrative decision . 2 . by 31 january , the member state shall send to the commission information on the exceptions referred to in paragraph 1 and for the amount to be declared by the end of preceding year .


### by 30 june , the member state shall submit to the commission a revised financing plan reflecting for the financial year concerned the reduced amount of support over one or several priorities of the programme . failing such submission , the commission shall revise the financing plan by reducing the contribution from the csf funds for the financial year concerned . this reduction shall be allocated to each priority proportionately . ### by 30 june , the member state , or group of member states which have established a macro - regional development fund , shall submit to the commission a revised financing plan reflecting for the financial year concerned the reduced amount of support over one or several priorities of the programme , or a macro - regional development fund programme . failing such submission , the commission shall revise the financing plan by reducing the contribution from the csf funds for the financial year concerned . this reduction shall be allocated to each priority proportionately .


### by 30 june , the member state shall submit to the commission a revised financing plan reflecting for the financial year concerned the reduced amount of support over one or several priorities of the programme . failing such submission , the commission shall revise the financing plan by reducing the contribution from the csf funds for the financial year concerned . this reduction shall be allocated to each priority proportionately . ### by 30 june , the member state shall submit to the commission a revised financing plan reflecting for the financial year concerned the reduced amount of support over one or several priorities of the programme taking into account the allocation by fund and by category of region , where appropriate . failing such submission , the commission shall revise the financing plan by reducing the contribution from the european structural and investment funds for the financial year concerned . this reduction shall be allocated to each priority proportionately .


### the funds shall contribute to developing and pursuing the actions of the union leading to strengthening of its economic , social and territorial cohesion in accordance with article 174 of the treaty . the actions supported by the funds shall contribute to the union strategy for smart , sustainable and inclusive growth . ### the funds shall contribute to developing and pursuing the actions of the union leading to strengthening of its economic , social and territorial cohesion in accordance with article 174 of the treaty on the functioning of the european union . the actions supported by the funds shall also contribute in a balanced way to the implementation of the union strategy for smart , sustainable and inclusive growth .


### the structural funds shall support the investment for growth and jobs goal in all regions corresponding to level 2 of the common classification of territorial units for statistics established by regulation no 1059 / 2003 . ### the structural funds shall support the investment for growth , jobs and social inclusion goal in all regions corresponding to level 2 of the common classification of territorial units for statistics established by regulation no 1059 / 2003 .


### resources for the investment for growth and jobs goal shall be allocated among the following three categories of nuts level 2 regions : ### resources for the investment for growth , jobs and social inclusion goal shall be allocated among the following three categories of nuts level 2 regions :


### investment for growth and jobs the structural funds shall support the investment for growth and jobs goal in all regions corresponding to level 2 of the common classification of territorial units for statistics established by regulation no 1059 / 2003 . 2 . resources for the investment for growth and jobs goal shall be allocated among the following three categories of nuts level 2 regions : less developed regions , whose gdp per capita is less than 75 % of the average gdp of the eu - 27 ; transition regions , whose gdp per capita is between 75% and 90% of the average gdp of the eu - 27 ; more developed regions , whose gdp per capita is above 90 % of the average gdp of the eu - 27 . the three categories of regions are determined on the basis of how their gdp per capita , measured in purchasing power parities and calculated on the basis of union figures for the period 2006 to 2008 , relates to the average gdp of the eu - 27 for the same reference period . 3 . the cohesion fund shall support those member states whose gross national income per capita , measured in purchasing power parities and calculated on the basis of union figures for the period 2007 to 2009 , is less than 90 % of the average gni per capita of the eu - 27 for the same reference period . the member states eligible for funding from the cohesion fund in 2013 , but whose nominal gni per capita exceeds 90% of the average gni per capita of the eu - 27 as calculated under the first sub - paragraph shall receive support from the cohesion fund on a transitional and specific basis . 4 . immediately following the entry into force of this regulation , the commission shall adopt a decision by implementing act setting out the list of region fulfilling the criteria of the three categories of regions referred to in paragraph 2 and of member states fulfilling the criteria of paragraph 3 . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 143 . this list shall be valid from 1 january 2014 to 31 december 2020 . 5 . in 2017 , the commission shall review the eligibility of member states for the cohesion fund on the basis of union gni figures for the period 2013 to 2015 for the eu - 27 . those member states whose nominal gni per capita exceeds 90% of the average gni per capita of the eu - 27 , shall receive support from the cohesion fund on a transitional and specific basis . ### investment for growth and jobs the structural funds shall support the investment for growth and jobs goal in all regions corresponding to level 2 of the common classification of territorial units for statistics established by regulation no 1059 / 2003 . 2 . resources for the investment for growth and jobs goal shall be allocated among the following three categories of nuts level 2 regions : less developed regions , whose gdp per capita is less than 75 % of the average gdp of the eu - 27 ; transition regions , whose gdp per capita is between 75% and 90% of the average gdp of the eu - 27 ; more developed regions , whose gdp per capita is above 90 % of the average gdp of the eu - 27 . the classification of regions under one of the three categories of regions shall be determined on the basis of how the gdp per capita of each region , measured in purchasing power parities and calculated on the basis of union figures for the period 2007 to 2009 , relates to the average gdp of the eu - 27 for the same reference period . 3 . the cohesion fund shall support those member states whose gross national income per capita , measured in purchasing power parities and calculated on the basis of union figures for the period 2008 to 2010 , is less than 90 % of the average gni per capita of the eu - 27 for the same reference period . the member states eligible for funding from the cohesion fund in 2013 , but whose nominal gni per capita exceeds 90% of the average gni per capita of the eu - 27 as calculated under the first sub - paragraph shall receive support from the cohesion fund on a transitional and specific basis . 4 . immediately following the entry into force of this regulation , the commission shall adopt a decision by implementing act setting out the list of regions fulfilling the criteria of the three categories of regions referred to in paragraph 2 and of member states fulfilling the criteria of paragraph 3 . this list shall be valid from 1 january 2014 to 31 december 2020 . 5 . in 2017 , the commission shall review the eligibility of member states for the cohesion fund on the basis of union gni figures for the period 2013 to 2015 for the eu - 27 . those member states whose nominal gni per capita exceeds 90% of the average gni per capita of the eu - 27 , shall receive support from the cohesion fund on a transitional and specific basis .


### the resources for economic , social and territorial cohesion available for budgetary commitment for the period 2014 to 2020 shall be eur [ x ] at 2011 prices , in accordance with the annual breakdown shown in annex iii , of which eur [ x ] represents the global resources allocated to the erdf , the esf and the cf and eur [ 3 000 000 000 ] constitutes a specific allocation for the youth employment initiative . for the purposes of programming and subsequent inclusion in the general budget of the union , the amount of the resources for economic , social and territorial cohesion shall be indexed at 2 % per year . ### the resources for economic , social and territorial cohesion available for budgetary commitment for the period 2014 to 2020 shall be eur [ x ] at 2011 prices , in accordance with the annual breakdown shown in annex iii , of which eur [ x ] represents the global resources allocated to the erdf , the esf and the cf and eur [ 3 000 000 000 ] constitutes a specific allocation for the youth employment initiative . that specific allocation for the youth emplyment initiative , and the matching esf allocation , should be committed in equal instalments by 30 june 2017 . for the purposes of programming and subsequent inclusion in the general budget of the union , the amount of the resources for economic , social and territorial cohesion shall be indexed at 2 % per year .


### the commission shall adopt a decision , by means of implementing acts , setting out the annual breakdown of the global resources for the funds by member state , in accordance with the criteria and methodology set out in annex iiibis and the annual breakdown of the resources from the specific allocation for the youth employment initiative by member state together with the list of eligible regions , in accordance with the criteria and methodology set out in annex iiiter without prejudice to paragraph 3 of this article and article 84 . ### the commission shall adopt a decision , by means of implementing acts , setting out the annual breakdown of the global resources for the funds by member state , in accordance with the criteria and methodology set out in annex iiibis and the annual breakdown of the resources from the specific allocation for the youth employment initiative by member state together with the list of eligible regions , in accordance with the criteria and methodology set out in annex iiiter without prejudice to paragraph 3 of this article and article 84 . macroeconomic conditionality shall not apply to the allocation of resources .