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


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


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


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


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


### the support from the cohesion fund for transport infrastructure under the connecting europe facility shall be eur 10 000 000 000 . the commission shall adopt a decision by implementing act setting out the amount to be transferred from each member state ' s cohesion fund allocation for the whole period . the cohesion fund allocation of each member state shall be reduced accordingly . the annual appropriations corresponding to the support from the cohesion fund mentioned in the first subparagraph shall be entered in the relevant budget lines of the connecting europe facility as from the 2014 budgetary exercise . support from the cohesion fund under the connecting europe facility shall be implemented in accordance with article [ 13 ] of regulation [ … ] / 2012 on establishing the connecting europe facility1 in respect of projects listed in annex 1 to that regulation , giving greatest possible priority to projects respecting the national allocations under the cohesion fund . ### the support from the cohesion fund for transport infrastructure projects of european added value under the connecting europe facility shall be eur xxx and shall be implemented exclusively in member states eligible for the cohesion fund in accordance with the relevant eu specific legislation . the commission , after consultation with the member state concerned , shall adopt a decision by implementing act setting out a ) the amount to be transferred from each member state ' s cohesion fund allocation for the whole period and b ) the transport infrastructure projects of european added value among the pre - indentified projects listed in annex 1 of regulation [ … ] / 2012 on establishing the connecting europe facility that will be carried out in each member state . deleted the selection of projects eligible for financing referred above shall be done based on their maturity , quality and eu added - value according to the procedures , objectives and criteria specified in the connecting europe facility1 , in compliance with the amounts transferred from each member state ' s cohesion fund allocation and shall fully respect the national allocations under the cohesion fund until 31 december 2016 . to ensure the highest possible absorption of the transferred funds in all member states eligible to the cohesion fund , particular attention shall be given to programme support actions under the connecting europe facility aimed at strengthening institutional capacity and the efficiency of public administrations and public services related to the development and implementation of projects implementing cef objectives . in order to support member states eligible to the cohesion fund , which may experience difficulties in designing projects that are of a sufficient maturity , quality and eu added - value , additional calls for proposals in accordance with of regulation [ … ] / 2012 on establishing the connecting europe facility shall be organised , at least on a yearly basis .


### the bodies accredited in accordance with article 64 shall not carry out on - the - spot verifications of operations comprising financial instruments implemented under article 33 . they shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments . ### bodies designated in accordance with article 113bis for erdf , cf , esf , emff and with article 72 of the rdr for the eafrd shall not carry out on - the spot verifications of operations comprising financial instruments implemented under article 33 . they shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments .


### 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 .


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


### for each year from 2016 until and including 2022 , the member state shall submit the documents referred to in article 75 . ### for each year from 2016 until and including 2025 , the member state shall submit the documents referred to and by the deadline set out in article 59 of the financial regulation namely :


### 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 , the member states , or the group of member states that have established a macro - regional development fund , 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 .


### it is important to bring the achievements of the union ' s funds to the attention of the general public . citizens have the right to know how the union ' s financial resources are invested . the responsibility to ensure that the appropriate information is communicated to the public should lie with both the managing authorities and the beneficiaries . to ensure more 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 cover the corporate communication of the political priorities of the european union as far as they are related to the general objectives of this regulation . ### it is important to bring the achievements of the union ' s funds to the attention of the general public . citizens have the right to know how the union ' s financial resources are invested . the responsibility to ensure that the appropriate information is communicated to the public should lie with both the managing authorities and the beneficiaries as well as with union institutions and advisory bodies . to ensure more 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 raise awareness about the objectives of cohesion policy and its role as an issue of genuine relevance to eu citizens .


### the commission should be empowered to adopt , by means of implementing acts , as regards all csf funds , decisions approving the partnership contracts , decisions on the allocation of the performance reserve , decisions suspending payments linked to member states ' economic policies , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the amount to be transferred from each member state ' s cf allocation to the connecting europe facility , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections . ### with regard to all of the european structural and investment funds , the commission should be empowered to adopt , by means of implementing acts , decisions approving the partnership agreements , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the support to be provided from the cohesion fund to transport infrastructure projects of european added value and the pre - indentified projects listed in annex 1 of regulation [ . . . ] / 2012 on establishing the connecting europe facility that will be carried out in each member state , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections , decisions on the amount chargeable to the funds for the accounting year and the annual balance due to the member state or to be recovered .


### 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 .


### financial instruments are increasingly important due to their leverage effect on csf funds , their capacity to combine different forms of public and private resources to support public policy objectives , and because revolving forms of finance make such support more sustainable over the longer term . ### financial instruments are increasingly important due to their leverage effect on european structural and investment funds , their capacity to combine different forms of public and private resources to support public policy objectives , and their ability to guarantee a revolving stream of financial means for strategic investments , supporting long - term , sustainable investments and raising union ' s growth potential . the provision of grants must always be retained as an option and it must be the responsibility of those involved on the ground to use the funding mix best suited to regional needs .


### for the partnership contract and each programme respectively , a member state shall organise a partnership with the following partners : ### for the partnership contract and each programme , a member state shall organise a partnership with the relevant regional authorities and the following partners in accordance with article&#160 ; 4 :


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


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


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


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


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


### as part of an operational programme or operational programmes , the erdf and the cohesion fund may support an operation comprising a series of works , activities or services intended in itself to accomplish an indivisible task of a precise economic or technical nature which has clearly identified goals and whose total cost exceeds eur 50 000 000 . financial instruments shall not be considered major projects . ### as part of an operational programme or operational programmes , which have been subject to a commission decision under article 87 , the erdf and the cf may support an operation comprising a series of works , activities or services intended in itself to accomplish an indivisible task of a precise economic or technical nature which has clearly identified goals and for which the total eligible cost exceeds eur 50 000 000 and in the case of operations contributing to the thematic objective under article 9 where the total eligible cost exceeds eur 75 000 000 . financial instruments shall not be considered major projects .


### objective criteria should be fixed for designating eligible regions and areas for support from the funds . to this end , the identification of the regions and areas at union level should be based on the common system of classification of the regions established by regulation no 1059 / 2003 of the european parliament and the council of 26 may 2003 on the establishment of a common classification of territorial units for statistics 5 . ### objective criteria should be fixed for designating eligible regions and areas for support from the funds . to this end , the identification of the regions and areas at union level should be based on the common system of classification of the regions established by regulation no 1059 / 2003 of the european parliament and the council of 26 may 2003 on the establishment of a common classification of territorial units for statistics special attention should be paid to regions which suffer from serious and permanent natural or demographic handicaps , such as regions with very low population density and island , cross - border and mountain regions , taking into account the fact that these territorial characteristics do not necessarily correspond to the breakdown currently proposed by the nuts classification .


### requests for amendment of programmes submitted by a member state shall be duly substantiated and shall in particular set out the expected impact of the changes to the programme on achieving the union strategy for smart , sustainable and inclusive growth and the specific objectives defined in the programme , taking account of the common strategic framework and the partnership contract . they shall be accompanied by the revised programme and , where appropriate , a revised partnership contract . ### requests for amendment of programmes submitted by a member state shall be duly substantiated and shall in particular set out the expected impact of the changes to the programme on achieving the union strategy for smart , sustainable and inclusive growth and the specific objectives defined in the programme , taking account of this regulation and fund - specific rules , the horizontal principles , in accordance with articles 5 , 7 and 8 as well as the partnership agreement . they shall be accompanied by the revised programme .


### the support from the cohesion fund for transport infrastructure under the connecting europe facility shall be eur 10 000 000 000 . the commission shall adopt a decision by implementing act setting out the amount to be transferred from each member state ' s cohesion fund allocation for the whole period . the cohesion fund allocation of each member state shall be reduced accordingly . the annual appropriations corresponding to the support from the cohesion fund mentioned in the first subparagraph shall be entered in the relevant budget lines of the connecting europe facility as from the 2014 budgetary exercise . support from the cohesion fund under the connecting europe facility shall be implemented in accordance with article [ 13 ] of regulation [ … ] / 2012 on establishing the connecting europe facility1 in respect of projects listed in annex 1 to that regulation , giving greatest possible priority to projects respecting the national allocations under the cohesion fund . ### the support from the cohesion fund for transport infrastructure projects of european added value under the connecting europe facility shall be eur xxx and shall be implemented exclusively in member states eligible for the cohesion fund in accordance with the relevant eu specific legislation . the commission , after consultation with the member state concerned , shall adopt a decision by implementing act setting out a ) the amount to be transferred from each member state ' s cohesion fund allocation for the whole period and b ) the transport infrastructure projects of european added value among the pre - indentified projects listed in annex 1 of regulation [ … ] / 2012 on establishing the connecting europe facility that will be carried out in each member state . deleted the selection of projects eligible for financing referred above shall be done based on their maturity , quality and eu added - value according to the procedures , objectives and criteria specified in the connecting europe facility1 , in compliance with the amounts transferred from each member state ' s cohesion fund allocation and shall fully respect the national allocations under the cohesion fund until 31 december 2016 . to ensure the highest possible absorption of the transferred funds in all member states eligible to the cohesion fund , particular attention shall be given to programme support actions under the connecting europe facility aimed at strengthening institutional capacity and the efficiency of public administrations and public services related to the development and implementation of projects implementing cef objectives . in order to support member states eligible to the cohesion fund , which may experience difficulties in designing projects that are of a sufficient maturity , quality and eu added - value , additional calls for proposals in accordance with of regulation [ … ] / 2012 on establishing the connecting europe facility shall be organised , at least on a yearly basis .


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


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


### establishing a closer link between cohesion policy and the economic governance of the union will ensure that the effectiveness of expenditure under the csf funds is underpinned by sound economic policies and that the csf funds can , if necessary , be redirected to addressing the economic problems a country is facing . this process has to be gradual , starting with amendments to the partnership contract and to the programmes in support of council recommendations to address macroeconomic imbalances and social and economic difficulties . where , despite the enhanced use of csf funds , a member state fails to take effective action in the context of the economic governance process , the commission should have the right to suspend all or part of the payments and commitments . decisions on suspensions should be proportionate and effective , taking into account the impact of the individual programmes for addressing the economic and social situation in the relevant member state and previous amendments to the partnership contract . when deciding on suspensions , the commission should also respect equality of treatment between member states , taking into account in particular the impact of the suspension on the economy of the member state concerned . the suspensions should be lifted and funds be made available again to the member state concerned as soon as the member state takes the necessary action . ### establishing a closer link between cohesion policy and the economic governance of the union will ensure that the effectiveness of expenditure under the european structural and investment funds is underpinned by sound economic policies and that the european structural and investment funds can , if necessary , be redirected to addressing the economic problems a country is facing . conditionality provisions deriving from the growth and stability pact should apply to the cf in relation to the fulfilment of economic governance conditions . this process has to be gradual , starting with amendments to the partnership agreement and to the programmes in support of council recommendations to address macroeconomic imbalances and social and economic difficulties .


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


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


### the commission shall be empowered to adopt delegated acts in accordance with article 142 concerning the definition of the area and population covered by the strategy referred in paragraph 1 . ### the population of the area referred to in paragraph 1 above shall be not less than 10 000 and not more than 150 000 inhabitants . by way of derogation , the commission may adopt or amend these population limits for a member state in the partnership agreement , in accordance with the procedures foreseen in articles 15 . 2 and 15 . 3 , in duly justified cases , on the basis of a proposal by a member state in order to take account of sparsely or densely populated areas or in order to ensure the territorial coherence of areas covered by the local development strategies .


### an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article 121 and the council recommendations which the member states shall take into account in their employment policies under article 148 of the treaty ; ### an analysis of the development needs and objectives justifying the joint action plan , taking into account the objectives of the operational programmes and programmes for macro - regional development funds and , where applicable , the country - specific recommendations and the broad guidelines of the economic policies of the member states and of the union under article&#160 ; 121 and the council recommendations which the member states , or a group of member states that have established macro - regional development funds , shall take into account in their employment policies under article&#160 ; 148 of the treaty ;


### when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other csf funds , dedicated to implementing financial instruments consistent with the objectives of the respective csf funds , which will undertake implementations tasks ; the support to such investments shall be limited to the amounts necessary to implement new financial instruments consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority , selected in accordance with applicable union and national rules ; a body governed by public or private law selected in accordance with applicable union and national rules . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . the commission shall be empowered to adopt delegated acts in accordance with article 142 laying down rules concerning funding agreements , the role and responsibility of the entities to which the implementation tasks are entrusted , as well as management costs and fees . ### when supporting financial instruments referred to in paragraph 1 the managing authority may : invest in the capital of existing or newly created legal entities , including those financed from other european structural and investment funds , dedicated to implementing financial instruments consistent with the objectives of the respective european structural and investment funds , which will undertake implementation tasks ; the support to such entities shall be limited to the amounts necessary to implement new investments and consistent with the objectives of this regulation ; or entrust implementation tasks to : the european investment bank ; international financial institutions in which a member state is a shareholder , or financial institutions established in a member state aiming at the achievement of public interest under the control of a public authority ; a body governed by public or private law . undertake implementation tasks directly , in the case of financial instruments consisting solely of loans or guarantees . in this case the managing authority is considered to be the beneficiary in the meaning of article 2 . when implementing the financial instrument , the bodies referred to in a ) b ) and c ) shall ensure compliance with applicable eu and national law , including rules covering european structural and investment funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism and tax fraud . they shall not be established and shall not maintain business relations with entities incorporated in territories , whose jurisdictions do not cooperate with the union in relation to the application of the internationally agreed tax standards and shall transpose such requirements in their contracts with the selected financial intermediaries . deleted


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


### in order to take account of the specific organisation of the management and control systems for the erdf , esf , cf and emff and the need to ensure a proportionate approach , specific provisions are required for the accreditation and withdrawal of accreditation of the managing authority and the certifying authority . ### in accordance with article 59 of the financial regulation and in order to take account of the specific organisation of the management and control systems for the erdf , esf , cf and emff , specific provisions are required for the designation and ending of designation of the managing authority and the certifying authority .


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


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


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


### for the partnership contract and each programme respectively , a member state shall organise a partnership with the following partners : ### for the partnership contract and each programme , a member state shall organise a partnership with the relevant regional authorities and the following partners in accordance with article&#160 ; 4 :


### territorial cohesion has been added to the goals of economic and social cohesion by the treaty , and it is necessary to address the role of cities , functional geographies and sub - regional areas facing specific geographical or demographic problems . to this end , to better mobilise potential at a local level , it is necessary to strengthen and facilitate community - led local development by laying down common rules and close coordination for all csf funds . responsibility for the implementation of local development strategies should be given to local action groups representing the interests of the community , as an essential principle . ### territorial cohesion has been added to the goals of economic and social cohesion by the treaty , and it is necessary to address the role of cities , functional geographies and sub - regional areas facing specific geographical or demographic problems . to this end , to better mobilise potential at a local level , it is necessary to strengthen and facilitate community - led local development by laying down common rules and close coordination for all european structural and investment funds . community - led local development should take into account local needs and potential , as well as relevant socio - cultural characteristics . responsibility for the implementation of local development strategies should be given to local action groups representing the interests of the community , as an essential principle .


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


### title [ viii ] of the financial regulation shall apply to financial instruments referred to in paragraph 1 . contributions from the csf funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective csf funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . ### contributions from the european structural and investment funds to financial instruments under paragraph 1 shall be placed in separate accounts and used , in accordance with the objectives of the respective european structural and investment funds , to support actions and final recipients consistent with the programme or programmes from which such contributions are made . contributions to such financial instruments are subject to the respect of the provisions of this regulation unless exceptions are expressly provided for . this is without prejudice to the rules governing the set up and functioning of the financial instruments under the financial regulation , unless they conflict with the rules of the cpr , in which case the latter prevail .


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


### for each year from 2016 until and including 2022 , the member state shall submit the documents referred to in article 75 . ### for each year from 2016 until and including 2025 , the member state shall submit the documents referred to and by the deadline set out in article 59 of the financial regulation namely :


### for the partnership contract and each programme respectively , a member state shall organise a partnership with the following partners : ### for the partnership agreement and each programme respectively , a member state shall in accordance with their institutional and legal framework organise a partnership with the competent regional and local authorities . the partnership shall also include the following partners :


### financial instruments are increasingly important due to their leverage effect on csf funds , their capacity to combine different forms of public and private resources to support public policy objectives , and because revolving forms of finance make such support more sustainable over the longer term . ### financial instruments are increasingly important due to their leverage effect on european structural and investment funds , their capacity to combine different forms of public and private resources to support public policy objectives , and their ability to guarantee a revolving stream of financial means for strategic investments , supporting long - term , sustainable investments and raising union ' s growth potential . the provision of grants must always be retained as an option and it must be the responsibility of those involved on the ground to use the funding mix best suited to regional needs .


### each programme , except those where technical assistance is undertaken under a specific programme , shall set out the indicative amount of support to be used for climate change objectives . ### each programme , except those where technical assistance is undertaken under a specific programme , shall set out the indicative amount of support to be used for climate change objectives , based on the methodology referred to in article 8 .


### where a member state proposes an amendment to the partnership contract , the commission shall carry out an assessment in accordance with paragraph 1 and , where appropriate , shall adopt a decision , by means of implementing acts , approving the amendment . ### where a member state proposes an amendment to the elements of the partnership agreement covered by the commission’s decision as referred to in paragraph 2 , the commission shall carry out an assessment in accordance with paragraph 1 and , where appropriate , shall adopt a decision , by means of implementing acts , approving the amendment within three months of its submission by the member state .


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


### as regards financial instruments referred to in article 33 implemented in accordance with article 33 and , the total eligible expenditure presented in the request for payment shall include and separately disclose the total amount of support paid or expected to be paid to the financial instrument for investments in final recipients to be made over a pre - defined period of maximum two years , including management costs or fees . ### as regards financial instruments referred to in article 33 implemented in accordance with article 33 , the applications for interim payments , and payment of the final balance shall include the total amount of the payments effected by the managing authority for investments in final recipients as referred to in articles 36 and .


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


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


### financial instruments supported by the csf funds should be used to address specific market needs in a cost effective way , in accordance with the objectives of the programmes , and should not crowd out private financing . the decision to finance support measures through financial instruments should be determined therefore on the basis of an ex ante analysis . ### financial instruments supported by the european structural and investment funds should be used to address specific market needs and in particular to respond to market failures or sub - optimal investment situations in a cost effective way , in accordance with the objectives of the programmes , and should not crowd out private financing . the decision to finance support measures through financial instruments should be determined therefore on the basis of an ex ante assessment .


### arrangements to ensure effective implementation , including : a consolidated table of milestones and targets established in programmes for the performance framework referred to in article 19 , together with the methodology and mechanism to ensure consistency across programmes and csf funds ; a summary of the assessment of the fulfilment of ex ante conditionalities and of the actions to be taken at national and regional level , and the timetable for their implementation , where ex ante conditionalities are not fulfilled ; the information required for ex ante verification of compliance with the rules on additionality as they are defined in part three of this regulation ; the actions taken to involve the partners and their role in the preparation of the partnership contract and the progress report as defined in article 46 of this regulation ; ### deleted deleted deleted deleted deleted