# EUR-Lex - 52011PC0752 - EN

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# 52011PC0752

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down general provisions on the Asylum and Migration Fund and on the instrument for financial support for police cooperation, preventing and combating crime, and crisis management /* COM/2011/0752 final - 2011/0367 (COD) */**

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EXPLANATORY MEMORANDUM

1.
CONTEXT OF THE PROPOSAL

Home affairs policies have been steadily
growing in importance over the last years. These policies are at the heart of
the European project to create an area without internal borders where EU
citizens and third-country nationals may enter, circulate, live and work,
bringing new ideas, capital, knowledge and innovation or filling gaps in the
national labour markets, confident that their rights are fully respected and
their security assured. The growing importance of home affairs policies has
been confirmed by the Stockholm Programme. It is also one of the areas which
have seen important changes under the Lisbon Treaty.

On 29 June 2011, the Commission adopted a
proposal for the next multi-annual financial framework for the period 2014-2020[1]: a budget for delivering the
Europe 2020 strategy. In the area of home affairs policies, covering security,
migration and the management of external borders, the Commission proposed to
simplify the structure of the expenditure instruments by reducing the number of
programmes to a two-Fund structure: an Asylum and Migration Fund and an
Internal Security Fund.

Simplification has been defined as a key
objective in the EU Budget Review Communication[2],
the Smart Regulation agenda[3]
and the aforesaid communication on the next multi-annual financial framework.
Experience suggests that in the current programming period, the diversity and
fragmentation of rules governing spending programmes are often perceived as
unnecessarily complicated and difficult to implement and control. This imposes
a heavy administrative burden on beneficiaries as well as on the Commission and
Member States, which can have the unintended effect of discouraging
participation, increasing error rates and delaying implementation. This means
that the potential benefits of Union programmes are not fully realised.

This Regulation is part of a package of four
Regulations, jointly establishing the framework for Union funding on home
affairs under the two Funds. This Regulation lays down rules on programming,
management and control, financial management, clearance of accounts, closure of
programmes and reporting and evaluation. Thus, it sets out the delivery mechanisms
whereas the purpose and scope of the two Funds, the resources and means of
implementation are defined in their respective specific Regulations. This horizontal
instrument will ensure a common approach to the implementation of the two Funds
and a uniform treatment of beneficiaries in relation to all Union support in
the area of home affairs.

This overall structure of four Regulations is
necessary in the light of Treaty obligations. Due to different voting rules in
the Council stemming from variable geometry pursuant to Protocols 19 (on the
Schengen acquis) and 21 (the position of the UK and Ireland in respect of the
area of Freedom, Security and Justice) it is not legally possible to draw up
one single comprehensive legislative proposal for an Internal Security Fund,
despite the coherence of the policy objectives to be addressed. Moreover, it
was considered important that, in line with the general objective of simplification
and mainstreaming, the two Funds (the Internal Security Fund and the Asylum and
Migration Fund) should have to the extent possible identical delivery
mechanisms. Finally, by introducing a horizontal Regulation setting out common
provisions, the overall number of provisions is reduced considerably than if
they were replicated in each act.

This Regulation lays down obligations only of
a financial and technical nature and leaves the choices on the definition of
policy objectives, eligible actions, the allocation of resources and the scope
of the intervention for each specific policy area to the respective legal basis
(i.e. in the Specific Regulations).

Its mechanisms aim to cover the principal
source of Union funding in the home affairs area. As such, it would then replace
the myriad of provisions with varying degrees of detail and complexity
currently found in the legal bases of the existing home affairs expenditure
instruments: the four instruments of the General Programme "Solidarity and
Management of Migration Flows", the External Borders Fund, European
Refugee Fund, the European Fund for the Integration of third-country nationals,
the European Return Fund, and the two Specific Programmes of the General
Programme "Security and Safeguarding Liberties", ISEC (Prevention of
and the fight against Crime) and CIPS (Prevention, Preparedness, and
consequence management of Terrorism and other Security-related Risks).

2.
RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES
AND IMPACT ASSESSMENTS

In accordance with the greater emphasis
placed on evaluation as a tool to inform policy making, this proposal is
informed by evaluation results, stakeholder consultation and impact assessment.

Work on the preparation of the future
financial instruments for home affairs started in 2010 and continued into 2011.
As part of this preparatory work, an evaluation/impact assessment study was
launched in December 2010 with the aid of an external contractor. This study
was completed in July 2011 and brought together available evaluation results
for the existing financial instruments and informed the problems, objectives
and policy options, including their likely impact, examined in the impact
assessment. Building upon this study, the Commission prepared an impact
assessment report on which the Impact Assessment Board delivered its opinion on
9 September 2011.

The impact assessment identified problems
in relation to the scope and priorities of the current home affairs spending
programmes on the one hand and the problems regarding the delivery of funding
on the other hand. In relation to the latter, the impact assessment examined
options in relation to shared management, centralised management and the timely
response to emergency situations.

·
In relation to shared management, the impact
assessment concluded that a multiannual programme preceded by a policy dialogue
was the preferred option. Contrary to the status quo, which combines annual
programmes within a multiannual framework, it would significantly reduce
administrative workload. Although a shift to multiannual programming only would
offer increased flexibility, it would not address the continuous need to
respond to changing situations in the Member States and third countries,
typical of the home affairs area. Multiannual programming combined with a regular
policy dialogue, however, would address this need and allow for a more
results-driven approach.

·
In terms of improving the delivery of funding
under centralised management, the status quo was discarded because it offers
little or no prospect of simplification or reduction of administrative workload.
The move to a procurement only approach was also rejected because it would eliminate
completely the possibility of promoting policy-driven actions, stimulating
transnational co-operation and supporting civil society through grants. Recourse
to a more targeted, less resource-intensive and diversified centralised
management is the preferred option because it is expected to improve relations
with key stakeholders and to lead to an overall reduction in workload.

·
In relation to the emergency response mechanism,
the impact assessment concluded that the current mechanism clearly does not
meet the need for a quicker and more effective response to crises in the areas
of migration and security. An improved mechanism extended to both a wider range
of migration-related crises and security-related crises was considered the
preferred option.

The impact assessment takes into account
the results of a dedicated on-line public consultation on the future of home
affairs funding. The consultation ran from 5 January to 20 March 2011 and was
open to all stakeholders. A total of 115 responses were received from
individuals and on behalf of organisations, including eight position papers.
Respondents from all Member States contributed to the consultation as well as
respondents from some third countries.

In April 2011, the conference "The
future of EU funding for Home Affairs: A fresh look" brought together key
stakeholders (Member States, international organisations, civil society
organisations etc) to discuss the future of EU funding for home affairs. The
conference was also an occasion to validate the outcome of the stock taking and
the public consultation.

The future of EU funding for home affairs
was raised and discussed with institutional stakeholders on numerous occasions,
including at an informal lunch discussion during the JHA Council on 21 January 2011,
an informal breakfast with the political coordinators of the European
Parliament on 26 January 2011, at the hearing of Commissioner Malmström before
the Parliament's SURE Committee on 10 March 2011 and during an exchange of
views between the Director-General of DG Home Affairs and the Parliament's LIBE
Committee on 17 March 2011. Specific expert advice was also gathered through
discussions with Member States' experts within the framework of the common
Committee for the General Programme on Solidarity and Management of Migration
Flows.

These consultations, conferences and expert
discussions confirmed that there is general agreement among key stakeholders on
the need for simplification of delivery mechanisms and greater flexibility,
notably to respond to emergencies. Stakeholders supported the idea of reducing
the number of financial instruments to a two-Fund structure on the condition
that this would actually lead to simplification. They also agreed on the need
for a flexible emergency response mechanism to allow the Union to respond
quickly and effectively to migration and security-related crises. Shared
management with a move to multi-annual programming with the definition of
common targets at Union level was generally seen as the appropriate management
method for all home affairs spending although non-governmental organisations were
of the view that direct management should also be continued. Stakeholders also supported
enhancing the role of the home affairs agencies in order to foster cooperation
and increase synergies.

3.
LEGAL ELEMENTS OF THE PROPOSAL

The right to act derives from Article 3(2)
of the Treaty on European Union which states that "the Union shall offer
its citizens an area of freedom, security and justice without internal
frontiers, in which the free movement of persons is ensured in conjunction with
appropriate measures with respect to external border controls, asylum,
immigration and the prevention and combating of crime".

Pursuing simultaneously several objectives
which are inseparably linked without each one being secondary and indirect in
relation to the others, this Regulation is founded on substantive legal bases
in Title V of the Treaty in the area of freedom, security and justice namely on
Articles 78(2), 79(2 and 4), 82(1), 84 and 87(2). They constitute the legal bases
for Union action in the areas of asylum, immigration, management of migration
flows, fair treatment of third-country nationals residing legally in Member
States, combating illegal immigration, removal and repatriation of persons
residing without authorisation, trafficking in human beings, judicial
cooperation in criminal matters, crime prevention, combating crime including
terrorism, corruption, organised crime and police cooperation.

They constitute compatible legal bases in
the light of the position of the United Kingdom, Ireland [and Denmark] with
regard to the areas they cover, thus enabling voting on this text
in the Council. As the ordinary legislative procedure applies to each of them,
the combination of the legal bases chosen fully respects the prerogatives of
the European Parliament.

Attention is also drawn to Article 80 of
the TFEU which underlines that certain of these policies of the Union and their
implementation shall be governed by the principle of solidarity and fair
sharing of responsibility, including its financial implications, between the
Member States.

In light of the above decision making
procedure, the provisions of this Regulation lay down horizontal common
provisions for the implementation of the Asylum and Migration Fund and one
component of the Internal Security Fund, namely the instrument for financial
support for police co-operation, preventing and combating crime, and crisis
management.

For those home affairs policies covered by
the Internal Security Fund the legal bases of which are not compatible with the
above, this Regulation should become applicable on the basis of a specific
clause in one of the specific Regulations, namely the instrument for financial
support for external borders and visa based on Article 77(2) TFEU, as these
policies constitute a development of the Schengen acquis in which the United
Kingdom and Ireland do not participate.

Consequently, upon the joint adoption of
this Regulation and the specific Regulations, the provisions of this Regulation
will become equally applicable to all home affairs Union funding.

Overall, the home affairs area is an area
where there is an obvious added value in mobilising the Union budget.

Union action is
justified on the grounds of the objectives laid out in Article 67 of the Treaty
on the Functioning of the Union (TFEU), setting out the means to constitute an
area of freedom, security and justice. The implementation of financial
assistance in partnership with the Member States through shared management is
an important aspect of home affairs Union funding. The shared management method
is considered appropriate for all home affairs policy areas and has therefore
been extended to the area of internal security where it was not used
previously. Centralised management is maintained for policy-driven activities.

Under shared
management, the shift from annual programmes towards multiannual programming
preceded by a policy dialogue within a strategic framework defined at Union level
will ensure that the actions financed from the Union budget meet the needs of
individual Member States whilst addressing Union priorities. This proposal lays
down the general rules on programming, reporting, financial management,
controls and evaluations which are necessary for the proper implementation of Union
home affairs funding but -where possible- leaves the Member States the freedom to decide how to implement
these rules at national level. For example, the eligibility of expenditure will
be determined on the basis of national rules, subject to a limited number of
common, simple principles which are laid down in this Regulation.

Thus, interventions take place at the appropriate level and the role of
the Union does not go beyond what is necessary. As the
Budget Review has highlighted, the "EU budget should be used to finance EU
public goods, actions that Member States and regions cannot finance themselves,
or where it can secure better results".[4]

Detailed
justifications for Union action in relation to the various policy areas covered
by this Regulation are included in the explanatory memorandum to the Specific
Regulations.

4.
BUDGETARY IMPLICATION

The Commission's proposal for the
Multi-Annual Financial Framework includes a proposal of EUR 3,869 million
for the Asylum and Migration Fund and of EUR 4,648 million for the
Internal Security Fund (current prices).

5.
MAIN ELEMENTS

As a new general framework for implementing
Union funding in the area of home affairs policies, this Regulation sets outs
general rules on the financing of expenditure including rules on partnership,
programming, reporting, monitoring and evaluation, the management and control
systems to be put in place by the Member States and the clearance of accounts:

–
The rules on partnership, programming,
monitoring and evaluation have been designed on the basis of lessons learnt
with the current four Funds of the General Programme "Solidarity and
Management of Migration Flows";

–
The rules on management and control systems,
financial management, clearance of accounts and reporting and closure of
programmes are inspired by Part II of the Commission proposal for a Regulation
common provisions for Funds covered by the Common Strategic Framework
("hereafter CSF Funds Regulation")[5]
and the Commission proposal for a Regulation on the financing, management and
monitoring of the common agricultural policy[6],
whilst ensuring, where useful, continuity with rules applied for the current
four Funds.

The Regulation seeks to lay down the
conditions for

(1)
a more policy-driven and results-oriented
funding, including through reinforced strategic programming;

(2)
a significant simplification of the delivery
mechanisms compared to the current situation;

(3)
more flexibility in financial management and in the
implementation, in light of the need to be able to address new and unforeseen
circumstances typical of home affairs;

(4)
an enhanced monitoring and evaluation framework,
ensuring accountability, transparency and informed reflection on future support
in the area of home affairs.

5.1.
A policy-driven and results-oriented agenda

For shared management

·
At the beginning of the next Multiannual
Financial Framework, there will be a single, overarching home affairs policy dialogue
with each Member State on their use of the Funds, i.e. how each individual Member
State will contribute to achieving the objectives of the area of freedom,
security and justice using the Union budget. These dialogues will be preceded
by a Communication from the Commission on the overall expectations and
framework for the dialogue. This Communication will also present the
Commission's intentions for the Union actions and the framework for their
implementation (e.g. different management methods to be used).

·
Taking into account the outcome of the policy
dialogue, the programmes agreed between the Commission and the Member State will
describe the baseline situation and lay down the objectives Member States are
to achieve in the policy area and the objectives for the use of Union funding. The
national programme will identify targets and examples of actions per objective.
In addition, a seven-year financial plan will indicate how the allocated
resources are to be committed and spent, within the ceilings available. In case
of actions to be implemented in and in relation to third countries, such
actions should not be directly development-oriented and the policy dialogue should
seek full coherence with the principles and general objectives of the Union
external action and foreign policy related to the country or region in
question.

·
While every effort will be made to ensure that
the national programmes are adopted in 2014, it is not excluded that some
programmes would not be adopted until 2015. In order to avoid the loss of the
related commitment appropriations for 2014, the Commission will therefore amend
its proposal for a Council Regulation laying down the multiannual financial
framework for the years 2014-2020 [COM(2011) 398 of 29.06.2011] in order to
extend the provisions of Article 7 of the said Regulation to programmes
implemented under shared management uder the Asylum and Migration and Internal
Security Funds.

·
Member States will report annually on financial
management and the results achieved under the programmes.

·
There will be a mid-term review in 2017 to
re-examine the situation in each Member State. At this occasion, new resources
can be allocated for the period 2018-2020.

For direct and indirect management

·
The objectives to be achieved under the
national programmes will be complemented by "Union actions" as well
as a rapid response mechanism to deal with emergency situations. Union actions
will support the implementation of Union policies through grants and
procurement. They will include actions in and in relation to third countries as
indicated in the Communication on the Multiannual Financial Framework[7]. Such
actions shall not be directly development oriented and shall complement, as
appropriate, the financial assistance provided through the EU's external aid
instruments, which remain the main source of funding to help third countries
build their relevant capacities. In implementing such support, full coherence
will be sought with the principles and general objectives of the EU external
action and foreign policy related to the country or region in question.
Complementarity will be ensured through enhanced coordination with the EEAS and
the relevant Commission services.

·
Union actions and emergency assistance
measures may also be carried out by Union Agencies in the area of home affairs
(Cepol, Europol, EASO, Frontex and the IT Agency), where this is in the
interest of the Union, where the actions are of an ad hoc nature, and where
their successful implementation relies on the operational and technical
expertise of the Agency concerned. Such actions will be implemented within the
framework of their missions, in accordance with their legal bases, in complementarity
with their work programmes and without prejudice to the overall staff
reductions foreseen.

·
Technical assistance at the initiative of
the Commission will be used to support Member States and beneficiaries, to
encourage mutual learning and improve communication (including corporate
communication where appropriate) and evaluation. These appropriations will also
support adequate control measures in the Union and in third countries relating
to actions funded and run the IT system used for the communication between
Member States and the Commission under shared management.

5.2.
Simplification of delivery mechanisms

For shared management

·
Each Member State will be required to have a
single national programme per Fund, thus bringing together various policy areas,
resulting in support from the Union budget for respectively an integrated
migration policy, including integration, asylum and return as regards the Asylum
and Migration Fund, and a comprehensive internal security
strategy, including police co-operation, border security, fight against serious
cross border crime, document fraud etc, as regards the Internal Security Fund.

·
The new framework represents a major
simplification and reduction of administrative burden compared to the current
four Funds, which work with both a multiannual strategy and annual programmes. The
maximum number of programmes will be 26 for the AMF (excluding Denmark, if the
United Kingdom and Ireland were to opt in) and 27 for the ISF (all Member
States). Moreover, the Schengen associated States will also participate in the
ISF as regards the external borders and visa and the police cooperation
components.

·
A low number of revisions of national programmes
are expected: programmes will concentrate on objectives and targets and not on
an exhaustive identification of actions. The objective is that, as far as
possible, and except for new or unforeseen circumstances, there should be, per
Member State and per Fund, one decision to approve the multiannual programme
and, if needed, one decision to revise the programme in the context of the
mid-term review.

·
As under the CSF Funds, the partnership
principle should be implemented through a monitoring committee.

·
Each Member States will set up a single
management and control system per Fund, with the possibility of having one
system to cover both Funds. To take into account national institutional
particularities, Member States may create delegated authorities, to whom the responsible
authorities can delegate particular (programming and implementation) tasks.

·
The eligibility of expenditure shall be
determined on the basis of national rules, subject to a limited number of
common, simple principles. This approach should constitute an important
simplification in project management at the level of the beneficiaries. Simplified
cost options such as flat rates and lump sums provide the means for Member
States to introduce performance-oriented management at the level of
beneficiaries.

Fordirect and indirect management

·
Financial assistance will be available in the
event of emergency situations, as defined in the relevant provisions of the specific
Regulations. The mechanism shall be triggered by the Commission, also following
the initiative of Member States, the Article 71 Committee (COSI) represented by
the respective Union Presidency or other stakeholders such as international
organisations (United Nations High Commissioner for Refugees, International
Organisation for Migration, etc) and Union agencies in home affairs.

·
All possible means will be used to avoid
fragmentation by concentrating resources on a limited number of Union objectives
and using the expertise of key stakeholders, where appropriate, on the basis of
partnership agreements and framework agreements.

·
For the financial support to the development of new
IT systems ("the smart borders package"), the current annual
financial decisions enabling the Commission to develop the central parts will
be replaced by a multiannual framework.

5.3.
Flexibility

For shared management

·
The impact of the mid-term review will depend on
the situation in the Member States. Member States which are deemed to have
additional risks or which obtain additional resources to implement Union specific
priorities would be invited to revise the amounts in their financial plan and
where appropriate to add elements in their programme.

·
Financial flexibility is part and parcel of the
current Interinstitutional Agreement on Budgetary Discipline and of the
Commission proposal for the Regulation on the 2014-2020 MFF. It is also
reflected in the proposal for the revision of the Financial Regulation and for
its implementing rules. It will therefore be implemented notably through
the different mechanisms provided by these proposals, bearing in mind as
central phases for their implementation the multiannual financial programing
and its annual update, the annual budget allocation and the annual budget
implementation.

·
The specific Regulations lay down the amounts
that will be allocated to the national programmes, Union actions and other
activities. However, in the overall package of this Regulation and the specific
Regulations, it is foreseen that the Commission can, by delegated acts, change certain
amounts in order to ensure optimal use of the Union budget.

For direct and indirect management

·
Annual appropriations for Union actions,
emergency assistance and, subject to annual ceilings, the technical assistance at
the initiative of the Commission, are considered as one "envelope",
thereby allowing maximum flexibility to decide from one financial year to
another where the resources will be allocated, depending on the specific needs.

·
Union actions are defined very broadly so as to
give the Commission all the necessary tools to fulfil its law making and policy
coordination tasks.

–
They focus on transnational aspects
(co-operation, comparative analysis, networks), which require concerted actions
across all Member States and actively support collective and mutually
reinforcing actions of Member States and other actors which consolidate Union co-operation
and bring about mutual learning and innovation.

–
They also allow actions that are not
transnational but that are of a particular interest for the policy development
in these areas for the Union as a whole.

–
They can cover actions in and in relation to
third countries.

–
The specific Regulations foresee implementation
in relation to all the policies and objectives supported by the Funds and even
financing policy-related aspects of the operation of the Funds. In the case of
the borders and visa component of the Internal Security Fund, this could
include the implementation of the Schengen evaluation and monitoring mechanism.

·
Accordingly, the specific Regulations foresee
support to the development of civil society and transnational networks (in
particular for the Asylum and Migration Fund) and testing and validating
research, e.g. applied research projects to bridge the gap from the Horizon
2020 Programme to operational use (in particular for the Internal Security Fund).

5.4.
A coherent and efficient reporting, monitoring
and evaluation framework

For shared management

·
Member States will report annually on the
implementation of the multiannual programme, as an integral part of the
clearance of accounts' exercise. To feed into the mid term review process, they
will be requested in 2017 to provide additional information on the progress
made in achieving the objectives. A similar exercise will be undertaken in
2019, to allow, where appropriate, adjustments during the last financial year
(2020).

·
Supporting the development of a evaluation-based
culture in the area of home affairs, the Funds will have a common evaluation
and monitoring framework with broad policy related indicators which underline
the result-oriented approach to the Funds and the essential role they could play
in the policy mix to achieve the objectives towards an area of freedom,
security and justice. These indicators relate to the impact the Funds could
make: the development of a common culture of border security, police
cooperation and crisis management; effective management of migration flows into
the Union; fair and equal treatment of third-country nationals; solidarity and
co-operation between Member States in addressing migration and internal security
issues and a common Union approach on both migration and security towards third
countries.

·
To ensure adequate application of the principles
on evaluation, and bearing in mind the practical experience with evaluation in
Member States under the current Union funding on home affairs, the Commission
and the Member States will work together to develop through implementing
measures the common evaluation and monitoring framework, inter alia by defining
templates and common output and result indicators.

·
All measures will be established at the
beginning of the programming period, thus enabling Member States to set up
their reporting and evaluation systems on the basis of the agreed principles
and requirements.

·
To reduce the administrative burden and ensure synergies
between reporting and evaluation, the information required for evaluation
reports will build on and complete the information provided by Member States in
the annual implementation reports of the national programmes.

·
The interim evaluation report is due in 2018 and
should feed into the reflection on the subsequent programming period.

2011/0367 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

laying down general provisions on the
Asylum and Migration Fund and on the instrument for financial support for
police cooperation, preventing and combating crime, and crisis management

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 78(2), 79(2),
79(4), 82(1), 84 and 87(2) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[8],

Having regard to the opinion of the
Committee of the Regions[9],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
The European Union's home affairs policy is to
create an area of freedom, security and justice: an area without internal
borders where people may enter, move, live and work freely, confident that
their rights are fully respected and their security assured, bearing in mind
common challenges such as the development of a comprehensive Union immigration
policy to enhance competitiveness and social cohesion of the Union, the
creation of a common European Asylum System and the prevention and combating of
threats of serious and organised crime, cybercrime and terrorism.

(2)
Union funding to support the development of this
area should constitute a tangible sign of the solidarity and responsibility
sharing that are indispensable in responding to the common challenges.

(3)
The existence of a common framework should ensure
the necessary coherence, simplification and uniform implementation of that
funding across the policy areas concerned.

(4)
A common framework should lay down the
principles of assistance and identify the responsibilities of the Member States
and the Commission in ensuring the application of those principles.

(5)
This Union funding would be more efficient and
better targeted if co-financing of eligible actions were based on strategic
multiannual programming, drawn up by each Member State in dialogue with the
Commission.

(6)
Measures in and in relation to third countries
supported through the Specific regulations should be taken in synergy and
coherence with other actions outside the Union supported through Union external
assistance instruments, both geographic and thematic. In particular, in
implementing such actions full coherence should be sought with the principles
and general objectives of the Union external action and foreign policy related
to the country or region in question. They should not be intended to support
actions directly development-oriented and they should complement, when
appropriate, the financial assistance provided through external aid
instruments. Coherence will also be ensured with the Union humanitarian policy,
in particular as regards the implementation of emergency assistance.

(7)
External action should be consistent and
coherent as set out in article 18(4) of TEU.

(8)
Prior to the preparation of multi-annual
programmes as a means to achieve the objectives of this Union funding, Member
States and the Commission should engage in a policy dialogue and thereby
establishing a coherent strategy for each individual Member State.

(9)
The strategy should be subject to a mid term
review, to ensure appropriate funding in period 2018-2020.

(10)
Member States should establish a partnership with
the authorities and bodies concerned to prepare, implement and monitor on their
national programmes throughout the entire multiannual period. Member States
should set up monitoring committees to monitor the national programmes and
assist them in reviewing the implementation and progress made in achieving the
objectives.

(11)
Eligibility of expenditure under the national
programmes should be determined by national law, subject to common principles.
The starting and closing dates for the eligibility of expenditure should be
defined so as to provide for uniform and equitable rules applying to the national
programmes.

(12)
Technical assistance should enable the Member
States to support the implementation of their national programmes and assist
beneficiaries in complying with their obligations and Union law.

(13)
To ensure an adequate framework for providing
rapidly emergency assistance, this Regulation should allow support for actions
the expenditure of which was incurred before the application for such assistance
was made, in accordance with the provision in the Financial Regulation[10] which allows such flexibility
in duly substantiated exceptional cases.

(14)
The financial interests of the European Union
should be protected through proportionate measures throughout the expenditure
cycle, including the prevention, detection and investigation of irregularities,
the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, penalties.

(15)
Member States should adopt adequate measures to
guarantee the proper functioning of the management and control system and the
quality of implementation. To this end, it is necessary to establish the
general principles and necessary functions which these systems should fulfil.

(16)
The obligations on the Member States as regards
management and control systems, the prevention, detection and correction of
irregularities and infringements of Union law should be specified in order to
guarantee the efficient and correct implementation of their national programmes.

(17)
In accordance with the principles of
subsidiarity and proportionality, Member States should have the primary
responsibility, through their management and control systems, for the
implementation and control of national programmes.

(18)
Only Responsible authorities accredited by the
Member States offer reasonable assurance that the necessary controls have been
carried out before granting support from the Union budget to beneficiaries. It
should therefore be explicitly laid down that only expenditure effected by
accredited responsible authorities can be reimbursed from the Union budget.

(19)
The powers and responsibilities of the
Commission to verify the effective functioning of the management and control
systems, and to require Member State action, should be laid down.

(20)
Union budget commitments should be effected
annually. In order to ensure effective programme
management, it is necessary to lay down common rules for the payment of the
annual balance, and the final balance.

(21)
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 once the
programme is approved. Therefore, provisions should be made for initial
pre-financing amounts. Initial pre-financing should be totally cleared at
closure of the programme.

(22)
The triennial revision of the Financial Regulation[11] introduces changes in the
shared management principles which have to be taken into account.

(23)
With a view to strengthening accountability for
expenditure co-financed by the Union budget in any given year, an appropriate
framework should be created for the annual clearance of accounts. Under this
framework, the Responsible Authority should submit to the Commission, in
respect of a national programme, a management declaration accompanied by the
annual accounts, a summary report and an independent audit opinion and control
report.

(24)
To support the assurance underlying the annual
clearance of accounts across the Union, common provisions should be laid down
on the nature and level of the controls to be carried out by Member States.

(25)
In order to ensure the sound financial
management of Union resources, it may be necessary for the Commission to make
financial corrections. To ensure legal certainty for the Member States, it is
important to define the circumstances under which breaches of applicable Union
or national law can lead to financial corrections by the Commission. In order to ensure that financial corrections which the Commission
may impose on Member States are related to the protection of the Union's
financial interests, they should be confined to cases where the breach of Union
or national law concerns directly or indirectly the eligibility, regularity,
management or control of actions and the corresponding expenditure. To ensure proportionality it is important that the Commission
considers the nature and the gravity of the breach in deciding the amount of
financial correction. In this regard, it is appropriate to set out the criteria
for applying financial corrections by the Commission and the procedure that may
lead to a decision on the financial correction.

(26)
In order to establish the financial relationship
between the Responsible Authorities and the Union budget, the Commission should
clear the accounts of these authorities annually. The clearance of accounts decision
should cover the completeness, the accuracy and veracity of the accounts but
not the conformity of the expenditure with the Union legislation.

(27)
The Commission, which is responsible for the
proper application of Union law under Article 17 of the Treaty on European
Union, should decide whether the expenditure incurred by the Member States
complies with Union legislation. Member States should be given the right to
justify their decisions to make payments. In order to give Member States legal
and financial assurances as to expenditure effected in the past, a maximum
period should be set for the Commission to decide which financial consequences
should follow from non-compliance.

(28)
In order to encourage financial discipline, it
is appropriate to define the arrangements for decommitment of any part of the
budget commitment in a national programme, in particular where an amount may be
excluded from the decommitment, notably when delays in the implementation
result from a legal proceeding or an administrative appeal having suspending
effect or from reasons of force majeur.

(29)
To ensure the appropriate
application of the general rules on decommitment, the rules established should
detail how the deadlines for decommitment are established and how the
respective amounts are calculated.

(30)
It is important to bring the achievements of Union
funding to the attention of the general public. Citizens have a right to know
how the Union's financial resources are spent. The responsibility to ensure
that the appropriate information is communicated to the public should lie with
both the Responsible 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 budget allocated to communication actions
under this Union funding shall also contribute to cover corporate communication
of the political priorities of the European Union provided that these are
related to the general objectives of this Union funding.

(31)
For the purpose of ensuring a wide dissemination
of information about this Union funding and to inform potential beneficiaries
about funding opportunities, detailed rules relating to information and
communication measures, as well as certain technical characteristics of such
measures should be defined on the basis of this Regulation and each Member
State should establish a website or website portal with the necessary
information.

(32)
The effectiveness of actions supported also
depend on their evaluation and the dissemination of their results. The
responsibilities of the Member States and the Commission in this regard, and
arrangements to ensure the reliability of evaluation and the quality of the
related information, should be formalised.

(33)
In order to amend provisions of this Regulation
on the common principles on the eligibility of expenditure, the power to adopt
acts in accordance with Article 290 of the Treaty on
the Functioning of the European Union should be
delegated to the Commission. It is of particular importance that the
Commission carry out appropriate consultations during its preparatory work,
including at expert level. The Commission, when preparing and drawing up
delegated acts, should ensure a simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and to the
Council.

(34)
In order to ensure uniform conditions for the
implementation of this Regulation, it should confer implementing powers on the
Commission. Those powers should be exercised in accordance with Regulation (EU)
No 182/2011 of the European Parliament and of the Council of 16 February 2011
laying down the rules and general principles concerning mechanisms for control
by Member States of the Commission's exercise of implementing powers[12].

(35)
The examination procedure should be be used for
implementing acts that lay down common obligations on Member States, in
particular on the provision of information to the Commission, and the advisory
procedure should be used for the adoption of implementing acts relating to the
model forms for the provision of information to the Commission, given their
purely technical nature.

(36)
Since the objective of this Regulation, namely to
lay down general provisions cannot be sufficiently achieved by the Member States
and can be better achieved at Union level, the Union may adopt measures, in
accordance with the principle of subsidiarity as set out in Article 5 of the
Treaty on European Union. In accordance with the principle of proportionality,
as set out in that Article, this Regulation does not go beyond what is
necessary in order to achieve that objective. In accordance with Articles 1 and
2 of the Protocol on the position of the United Kingdom and Ireland, annexed to
the Treaty on European Union and to the Treaty establishing the European
Community and without prejudice to Article 4 of the said Protocol these Member
States are not participating in the adoption of this Regulation and are not
bound by or subject to its application. [OR] [In accordance with Article 3
of the Protocol on the position of the United Kingdom and Ireland, annexed to
the Treaty on European Union and to the Treaty establishing the European
Community, the United Kingdom and Ireland gave notice of their wish to take
part in the adoption and application of this Regulation.]

(37)
In accordance with Articles 1 and 2 of the
Protocol of the position of Denmark annexed to the Treaty on European Union and
to the Treaty on the Functioning of the European Union, Denmark is not taking
part in the adoption of this Regulation and is not bound by it or subject to
its application;

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Purpose and scope

This Regulation sets outs general rules for
the implementation of the Specific Regulations with regard to:

(a)
the financing of expenditure;

(b)
partnership, programming, reporting, monitoring
and evaluation;

(c)
the management and control systems to be put in
place by the Member States;

(d)
the clearance of accounts.

Article 2

Definitions

For the purposes of this Regulation the
following definitions shall apply:

(a)
"Specific Regulations" means

–
Regulation ../2012/EU [establishing the Asylum
and Migration Fund for the period 2014-2020];

–
Regulation .../2012/EU [establishing, as part of
the Internal Security Fund, the instrument for financial support for police
cooperation, preventing and combating crime, and crisis management; and

–
Any other Regulation which provides for the
application of this Regulation.

(b)
"programming" means the process of
organisation, decision making and financing in several stages intended to
implement, on a multiannual basis, the joint action by the Union and the Member
States to achieve the objectives of the Specific Regulations;

(c)
"action" means a project or group of
projects selected by the Responsible Authority of the national programme
concerned, or under its responsibility, contributing to the general and
specific objectives pursued by the Specific Regulations;

(d)
"Union action" means a transnational
action or action of particular interest to the Union as defined in the Specific
Regulations;

(e)
"project" means the specific,
practical means deployed to implement all or a part of an action by a
beneficiary of the Union contribution;

(f)
"emergency assistance" means a project
or group of projects addressing an emergency situation as defined in the Specific
Regulations;

(g)
"beneficiary" means the recipient of
an Union contribution under a project, whether a public or private body, international
organisations or the Red Cross (ICRC), the International Federation of National
Red Cross and Red Crescent Societies.

CHAPTER II

PRINCIPLES OF ASSISTANCE

Article 3

General principles

1.
The Specific Regulations shall provide support, through
national programmes, Union actions and emergency assistance, which complements national,
regional and local intervention, pursuing the objectives of the Union.

2.
The Commission and the Member States shall
ensure that the support provided under the Specific Regulations and by the
Member States is consistent with the activities, policies and priorities of the
European Union and complementary to other instruments of the European Union.

3.
The support provided under the Specific
Regulations shall be implemented in close cooperation between the Commission
and the Member States.

4.
In accordance with their respective
responsibilities, the Commission and the Member States, together with the EEAS as
regards actions in and in relation to third countries, shall ensure
coordination among this Regulation and the Specific Regulations, and with other
Union policies and instruments, including those in the framework of the Union's
external action.

5.
The Commission and the Member States shall apply
the principle of sound financial management in accordance with Article [26]
of the Financial Regulation.

6.
The Commission and the Member States shall
ensure the effectiveness of the support provided under the Specific Regulations,
in particular through monitoring, reporting and evaluation.

7.
The Commission and the Member States shall carry
out their respective roles in relation to this Regulation and the Specific
Regulations with the aim of reducing the administrative burden for beneficiaries.

Article 4

Compliance
with Union and national law

Actions financed by the Specific
Regulations shall comply with applicable Union and national law.

Article 5

Protection
of the financial interests of the European Union

1.
The Commission shall take appropriate measures
ensuring that, when actions financed under the Specific Regulations are
implemented, the financial interests of the European Union are protected by the
application of preventive measures against fraud, corruption and any other
illegal activities, by effective controls and, if irregularities are detected,
by the recovery of the amounts wrongly paid and, where appropriate, by
effective, proportionate and deterrent penalties.

2.
Member States shall prevent, detect and correct
irregularities and shall recover amounts unduly paid together with any interest
of late payments. They shall report these to the Commission and shall keep the Commission
informed of the progress of administrative and legal proceedings.

3.
When amounts unduly paid to a beneficiary cannot
be recovered and this is as a result of fault or negligence on the part of a
Member State, the Member State shall be responsible for reimbursing the amounts
concerned to the general budget of the Union.

4.
Member States shall offer effective prevention
against fraud, especially as regards the areas with a higher level of risk, and
which shall act as a deterrent, having regard to the benefits as well as the
proportionality of the measures.

5.
The Commission shall be empowered to adopt
delegated acts in accordance with the procedure referred to in Article 54,
concerning the obligations of Member States specified in the paragraph 4.

6.
The Commission or its representatives and the
Court of Auditors shall have the power of audit, on the basis of documents and
on-the-spot, over all grant beneficiaries, contractors and subcontractors who
have received Union funds.

The European Anti-fraud Office (OLAF) may carry
out on-the-spot controls and inspections on economic operators concerned
directly or indirectly by such funding in accordance with the procedures laid
down in Regulation (Euratom, EC) No 2185/96 with a view to establishing whether
there has been fraud, corruption or any other illegal activity affecting the
financial interests of the European Union in connection with a grant agreement
or grant decision or a contract concerning Union funding.

Without prejudice to the first and second sub-paragraphs,
cooperation agreements with third countries and international organisations and
grant agreements and grant decisions and contracts resulting from the
implementation of this Regulation and the Specific Regulations shall expressly empower
the Commission, the Court of Auditors and OLAF to conduct such audits,
on-the-spot controls and inspections.

Article 6

Programming

The objectives of the Specific Regulations
shall be pursued within the framework of the multiannual programming period
from 2014 to 2020, subject to a mid-term review in accordance with Article 15.

CHAPTER III

FINANCIAL FRAMEWORK FOR UNION ACTIONS,
EMERGENCY AND TECHNICAL ASSISTANCE

Article 7

Implementation framework

1.
The Commission shall establish the overall amount
made available for Union actions, emergency assistance and technical assistance
at the initiative of the Commission under the annual appropriations of the Union
budget.

2.
The Commission shall adopt, by way of
implementing act, the work programme for Union actions and emergency assistance.
That implementing act shall be adopted in accordance with the examination
procedure referred to in Article 55(3).

3.
To ensure a timely availability of resources,
the Commission may separately adopt a work programme for emergency assistance.

4.
Union actions, emergency assistance and
technical assistance at the initiative of the Commission may be implemented

–
directly, by the Commission or through executive
agencies;

–
indirectly, by entities and persons other than Member States in accordance with
Article [57] of the Financial Regulation.

Article 8

Emergency assistance

1.
In response to an emergency situation as defined
in the Specific Regulations, the Commission may decide to provide emergency
assistance.

2.
Within the limits of the available resources, the
emergency assistance may amount to 100% of the eligible expenditure.

3.
It may consist of assistance in Member States
and in third countries in accordance with the objectives and actions defined in
the Specific Regulations.

4.
Emergency assistance may support expenditure
which was incurred prior to the date of submission of the grant application or
the request for assistance, when this is necessary for the implementation of
the action.

Article 9

Union actions and emergency
assistance in or in relation to third countries

1.
The Commission may decide to finance Union actions
and emergency assistance in or in relation to third countries in accordance with
the objectives and actions defined in the Specific Regulations.

2.
When such actions are implemented directly, the
following entities shall be allowed to submit applications:

(a)
Member States;

(b)
third countries;

(c)
joint bodies set up by the third countries and the
Union or by Member States;

(d)
international organisations, including regional
organisations, UN bodies, departments and missions, international financial
institutions and development banks and institutions of international
jurisdiction in so far as they contribute to the objectives of the Specific
Regulation(s) concerned;

(e)
the International Committee of the Red Cross
(ICRC), the International Federation of National Red Cross and Red Crescent
Societies;

(f)
Non-governmental organisations established and
registered in the Union and in the countries associated with the
implementation, application and development of the Schengen acquis.

Article 10

Technical assistance at the
initiative of the Commission

1.
At the initiative of or on behalf of the
Commission, the Specific Regulations may support the preparatory, monitoring,
administrative and technical assistance, evaluation, audit and control measures
necessary for the implementation of this Regulation and the Specific
Regulations.

2.
Those measures may include but are not limited
to:

(a)
assistance for project preparation and
appraisal;

(b)
support for institutional strengthening and
administrative capacity building for the effective management of this
Regulation and the Specific Regulations;

(c)
measures related to the analysis, management,
monitoring, information exchange and implementation of this Regulation and the
Specific Regulations, as well as measures relating to the implementation of
control systems and technical and administrative assistance;

(d)
evaluations, expert reports statistics and
studies, including those of a general nature concerning the operation of the Specific
Regulations;

(e)
actions to disseminate information, support
networking, carry out communication activities, raise awareness and promote
cooperation and exchange of experience, including with third countries. To
bring about greater efficiency in communication to the public at large and
stronger synergies between the communication activities undertaken at the
initiative of the Commission, the resources allocated to communication actions
under this Regulation shall also contribute to covering the corporate
communication of the political priorities of the
European Union provided that these are related to the general objectives of
this Regulation and the Specific Regulations;

(f)
 the installation, operation and interconnection
of computerised systems for management, monitoring, audit, control and
evaluation;

(g)
the design of a common framework for evaluation
and monitoring as well as a system of indicators, taking into account, where
appropriate, national indicators;

(h)
 actions to improve evaluation methods and the
exchange of information on evaluation practices;

(i)
conferences, seminars, workshops and other
common information and training measures on the implementation of this
Regulation and the Specific Regulations for designated authorities and
beneficiaries;

(j)
actions related to audit.

3.
The actions may concern the preceding and subsequent
financial frameworks.

CHAPTER IV

NATIONAL PROGRAMMES

Section 1
Programming and Implementation framework

Article 11

Subsidiary
and proportional intervention

1.
Member States and the bodies designated by them
for that purpose ("designated authorities") shall be responsible for
implementing programmes and carrying out their tasks under this Regulation and
the Specific Regulations at the appropriate level, in accordance with the
institutional, legal and financial framework of the Member State and subject to
compliance with this Regulation and the Specific Regulations.

2.
Arrangements for the implementation and use of
the support provided under the Specific Regulations, and in particular the
financial and administrative resources required in relation to the reporting,
evaluation, management and control, shall take into account the principle of
proportionality having regard to the level of support allocated.

Article 12

Partnership

1.           Each Member State shall
organise, in accordance with its national rules and practices, a partnership
with the authorities and bodies concerned to develop and implement national
programmes.

Such authorities and bodies shall include the
competent regional, local, urban and other public authorities, and, where
appropriate, international organisations and bodies representing civil society,
such as non-governmental organisations or social partners.

2.           Partnership shall be
conducted in full compliance with the respective institutional, legal and
financial jurisdiction of each partner category.

3.
The partners shall be involved in the
preparation, implementation, monitoring and evaluation of national programmes.

4.
Each Member State shall set up a monitoring
committee to support the implementation of national programmes.

5.
The Commission may participate in the work of
the monitoring committee in an advisory capacity.

Article 13

Policy
dialogue

1.
To launch the programming period, the Commission
and each Member State shall have a policy dialogue on the national requirements
and the contribution that the Union budget could provide to achieving these
requirements, bearing in mind the base line situation in the Member State
concerned and the objectives of the Specific Regulations. The policy dialogue shall
result in the conclusion of agreed minutes or an exchange of letters which
shall identify the specific needs and priorities of the Member State concerned
and serve as the framework for the preparation of the national programmes.

In case of actions to be implemented in and in
relation to third countries, such actions shall not be directly development
oriented and the policy dialogue shall seek full coherence with the principles
and general objectives of the Union external action and foreign policy as regards
the country or region concerned.

2.
In the context of the examination of the payment
request referred to in Article 39 and the implementation report referred to in
Article 49, the Member State concerned and the Commission shall review the
progress made in the implementation of the national programme, bearing in mind
the conclusions of the policy dialogue.

Article 14

Preparation
and approval of national programmes

1.
Each Member State shall propose, on the basis of
the conclusions of the policy dialogue referred to in Article 13(1), a national
programme in accordance with the Specific Regulations.

2.
Each proposed national programme shall cover the
financial years of the period from 1 January 2014 to 31 December 2020 and consist
of the following elements:

(a)
a description of the baseline situation in the Member
State;

(b)
an analysis of requirements in the Member State
and the national objectives designed to meet those requirements during the
period covered by the programme;

(c)
an appropriate strategy identifying the objectives
to be pursued with the support of the Union budget, with targets for their
achievement, an indicative time table and examples of actions envisaged to meet
these objectives;

(d)
the mechanisms that ensure coordination between
the instruments established by the Specific Regulations and other Union and national
instruments;

(e)
information on the monitoring and evaluation framework
to be put in place and the indicators to be used to measure the progress in the
implementation of the objectives pursued in relation to the baseline situation
in the Member State;

(f)
arrangements to ensure the effective and efficient
implementation of the support of the Union budget, including the planned use of
technical assistance and the approach chosen for the implementation of the
partnership principle laid down in Article 12;

(g)
a draft financing plan broken down by each financial
year of the period;

(h)
the mechanisms and methods to be used to
publicise the national programme;

(i)
the implementing provisions for the national
programme containing the identification of the designated authorities.

3.
Member States shall submit the proposed national
programmes to the Commission no later than three months after the policy
dialogue referred to in Article 13(1) is concluded.

4.
The national programmes shall be drawn up according
to the model adopted by the Commission. That implementing act shall be adopted in
accordance with the advisory procedure referred to in Article 55(2).

5.
Before approving a proposed national programme,
the Commission shall examine:

(a)
 its consistency with the objectives of the Specific
Regulations and the conclusions of the policy dialogue referred to in Article 13(1);

(b)
 the relevance of the objectives, targets,
indicators, the time table and examples of actions envisaged in the proposed
national programme in the light of the strategy which is proposed;

(c)
 the relevance of the implementing provisions
referred to in point (i) of paragraph 2 in the light of the actions envisaged;

(d)
 the compliance of the proposed programme with Union
law;

(e)
the complementarity with support provided by
other Union Funds including the European Social Fund;

(f)
Where applicable under a Specific Regulation, for
objectives and examples of actions in or in relation to third countries, coherence
with the principles and objectives of the Union external action and foreign
policy related to the country or region concerned.

6.
The Commission shall make observations within
three months of the date of submission of the proposed national programme. Where
the Commission considers that a proposed national programme is inconsistent
with the objectives of the Specific Regulations, insufficient in light of the
strategy or does not comply with Union law, it shall invite the Member State
concerned to provide all necessary additional information and, where
appropriate, to revise the proposed national programme. The Member State shall
provide to the Commission all necessary additional information and, where
appropriate, revise the proposed national programme.

7.
The Commission shall approve, by implementing
act, each national programme no later than six months following the formal
submission by the Member State, provided that any observations made by the
Commission have been satisfactorily taken into account.

8.
In the light of new or unforeseen circumstances,
at the initiative of the Commission or the Member State concerned, an approved national
programme may be re-examined and, if necessary, revised for the rest of the
programming period.

Article 15

Mid term review

1.
In 2017 the Commission and each Member State
shall re-examine the situation, in the light of the developments in Union policies
and in the Member State concerned.

2.
Following this re-examination, Member States may
revise their national programmes. National programmes shall be revised for
those Member States which will receive additional allocations in accordance
with the Specific Regulations.

3.
The rules laid down in Article 14 on the
preparation and approval of national programmes shall apply mutatis mutandis to
the preparation and approval of the revised national programmes.

4.
The Commission shall allocate, by implementing
acts, to Member States the resources for national programmes which are available
in the framework of the mid-term review under the Specific Regulations. After
the completion of the mid term review, the Commission shall submit to the
European Parliament, the Council the European and Economic and Social Committee
and the Committee of the Regions a report on the mid term review carried out in
accordance with the provisions of this Regulation and the Specific Regulations.

Article 16

Financing
structure

1.
Financial contributions provided under the
national programmes shall take the form of grants.

2.
Actions supported under the national programmes
shall be co-financed by public or private sources, shall be of a non-profit
nature and shall not be subject to funding from other sources covered by the Union
budget.

3.
The contribution from the Union budget shall not
exceed 75 % of the total eligible expenditure of a project.

4.
The contribution from the Union budget may be
increased to 90% under specific actions or strategic priorities as defined in
the Specific Regulations.

5.
The contribution from the Union budget may also
be increased to 90% in duly justified circumstances, in particular if projects
could otherwise not have been implemented and the objectives of the national
programme would not have been achieved.

Article 17
General Principles of Eligibility

1.
The eligibility of expenditure shall be
determined on the basis of national rules, except where specific rules are laid
down in this Regulation or in the Specific Regulations.

2.
In accordance with the Specific Regulations, for
it to be eligible, expenditure must be:

(a)
within the scope of the Specific Regulations and
their objectives;

(b)
needed to carry out the activities covered by
the project concerned;

(c)
reasonable and comply with the principles of
sound financial management, in particular value for money and
cost-effectiveness.

3.
Expenditure shall be eligible for support under
the Specific Regulations if

–
it has been incurred and paid by a beneficiary
between 1 January 2014 and 31 December 2022; and

–
it has been actually paid by the accredited
Responsible Authority between 1 January 2014 and 30 June 2023.

4.
Expenditure included in payment requests from
the beneficiary to the Responsible Authority shall be supported by invoices or
accounting documents of equivalent probative value, except for forms of support
under Article 18(1)(b), (c) and (d). For such forms of support, by way of
derogation from paragraph 3, the amounts included in the payment request shall
be the cost reimbursed to the beneficiary by the Responsible Authority.

5.
Net revenue directly generated by a project
during its implementation which has not been taken into account at the time of
approval of the project, shall be deducted from the eligible expenditure of the
project in the final payment request submitted by the beneficiary.

Article 18

Eligible
expenditure

1.
Eligible expenditure can be reimbursed in the
following ways:

(a)
Reimbursement of eligible costs actually
incurred and paid, together with, where applicable, depreciation;

(b)
standard scale of unit costs;

(c)
lump sums;

(d)
flat-rate financing determined by the
application of a percentage to one or several defined categories of costs.

2.
The options referred to in paragraph 1 may be
combined when each covers a different category of costs or where they are used
for different projects forming a part of an action or for successive phases of
an action.

3.
Where a project is implemented exclusively through
the procurement of works, goods or services, only paragraph 1 (a) shall apply.

4.
The amounts referred to in paragraph 1 (b), (c)
and (d) shall be established in advance in one of the following ways:

(a)
a fair, equitable and verifiable calculation
method based on:

(i)      statistical data or other objective
information; or

(ii)      the verified historical data of
individual beneficiaries or the application of their usual cost accounting
practices;

(b)
methods and corresponding scale of unit costs,
lump sums and flat rates applicable in Union policies for a similar type of
action/project and beneficiary;

(c)
methods and corresponding scale of unit costs,
lump sums and flat rates applied under schemes for grants funded entirely by
the Member State for a similar type of action/project and beneficiary;

5.
The document setting out the conditions for
support for each project/action shall set out the method to be applied for
determining the costs of the action and the conditions for the payment of the
grant.

6.
Where the implementation of a project gives rise
to indirect costs, they may be calculated as a flat rate in one of the
following ways:

(a)
a flat rate of up to 20% of eligible direct
costs, where the rate is calculated on the basis of a fair, equitable and
verifiable calculation method or a method applied under schemes for grants
funded entirely by the Member State for a similar type of action/project or
beneficiary;

(b)
a flat rate of up to 15% of eligible direct staff
costs; or

(c)
a flat rate applied to eligible direct costs
based on existing methods and corresponding rates, applicable in Union policies
for a similar type of action/project and beneficiary.

7.
Grants for which the support from the Union budget
does not exceed 50,000 EUR shall take the form of lump sums or standard scale of
unit costs.

8.
Flat rate financing, standard scale of unit
costs and lumpsums referred to in paragraph 4 may be calculated on a project-by-project
approach by reference to a draft budget agreed ex ante by the Responsible
Authority for grants for which the contribution from the Union budget does not
exceed 100,000 EUR.

9.
Depreciation costs may be considered as eligible
under the following conditions:

(a)
the expenditure is eligible in accordance with
the eligibility rules of the national programme;

(b)
the amount of the expenditure is duly justified
by supporting documents having equivalent probative value to invoices where
reimbursed in the form referred to in point (a) of paragraph(1);

(c)
the costs relate exclusively to the period of
support for the project;

(d)
support from the Union budget has not
contributed towards the acquisition of the depreciated assets.

Article 19

Ineligible
expenditure

The following expenditure shall not be
eligible for a contribution from the Union budget under the Specific
Regulations:

(a)
interest on debt;

(b)
the purchase of land not built on;

(c)
the purchase of land built on, where the land is
necessary for the implementation of the project, in the amount exceeding 10% of
the total eligible expenditure for the project concerned;

(d)
value added tax. However VAT amounts shall be
eligible where they are not recoverable under national VAT legislation and are
paid by a beneficiary other than non-taxable person as defined in the first
subparagraph of Article 13(1) of Directive 2006/112/EC, provided that such VAT
amounts are not incurred in relation to the provision of infrastructure.

Article 20

Technical assistance at the
initiative of the Member States

1.
At the initiative of a Member State for each
national programme, the Specific Regulations may support actions for
preparation, management, monitoring, evaluation, information and communication,
networking, control and audit, as well as measures for the reinforcement of the
administrative capacity for the implementation of this Regulation and the
Specific Regulations.

2.
Those measures may include

(a)
expenditure relating to the preparation,
selection, appraisal, management and monitoring of actions or projects;

(b)
expenditure relating to audits and on-the-spot controls
of actions or projects;

(c)
expenditure relating to evaluations of actions
or projects;

(d)
expenditure relating to information,
dissemination and transparency in relation to actions or projects;

(e)
expenditure on the acquisition, installation and
maintenance of computerised systems for the management, monitoring and
evaluation of this Regulation and the Specific Regulations;

(f)
expenditure on meetings of monitoring committees
and sub-committees relating to the implementation of actions; this expenditure
may also include the costs of experts and other participants in these
committees, including third-country participants, where their presence is
essential to the effective implementation of actions or projects;

(g)
expenditure for the reinforcement of the
administrative capacity for the implementation of this Regulation and the
Specific Regulations.

3.
The appropriations may be used by the Member
States to support actions for the reduction of administrative burden for beneficiaries,
including electronic data exchange systems, and actions to reinforce the
capacity of Member State authorities and beneficiaries to administer and to use
the support provided for under the Specific Regulations.

4.
The actions may concern the preceding and
subsequent financial frameworks.

Section 2
Management and Control

Article 21
General principles of management
and control systems

Management and control systems shall provide for:

(a)
a description of the functions of each body
concerned in management and control, and the allocation of functions within
each body;

(b)
compliance with the principle of separation of
functions between and within such bodies;

(c)
procedures for ensuring the correctness and
regularity of expenditure declared;

(d)
computerised systems for accounting, for the
storage and transmission of financial data and data on indicators, for
monitoring and for reporting;

(e)
systems for reporting and monitoring where the Responsible
Authority entrusts execution of tasks to another body;

(f)
arrangements for auditing the functioning of the
management and control systems;

(g)
systems and procedures to ensure an adequate audit
trail;

(h)
the prevention, detection and correction of
irregularities, including fraud, and the recovery of amounts unduly paid,
together with any interest.

Article 22
Responsibilities of Member
States

1.
Member States shall fulfil the management,
control and audit obligations and assume the resulting responsibilities laid
down in the rules on shared management set out in the Financial Regulation and
this Regulation. In accordance with the principle of shared management, Member
States shall be responsible for the management and control of national programmes.

2.
Member States shall ensure that their management
and control systems for programmes are set up in accordance with the provisions
of this Regulation and that the systems function effectively.

3.
Member States shall allocate adequate resources
for each body to carry out their functions throughout the programming period.

4.
Member States shall set up rules and procedures
for the selection and implementation of projects in accordance with this
Regulation.

5.
All official exchanges of information between
the Member State and the Commission shall be carried out using an electronic
data exchange system established by the Commission.

Article 23
Designated authorities

1.
For the implementation of its national programme
each Member State shall designate the following bodies:

(a)     an accrediting authority as defined in
Article [56] of the Financial Regulation;

(b)     an accredited Responsible Authority: a
public sector body of the Member State, which shall be solely responsible for
the proper management and control of the national programme and shall handle
all communication with the Commission;

(c)     an Audit Authority: a national public
authority or body, which is functionally
independent of the Responsible Authority and the accrediting authority and which
shall be responsible for verifying the effective functioning of the management
and control system;

(d)     where appropriate, a Delegated Authority:
any public or private body which carries out certain tasks of the Responsible
Authority under the responsibility of that Authority.

2.
Each Member State shall lay down rules governing
its relations with the authorities referred to in paragraph 1 and their
relations with the Commission.

Article 24
Accreditation
of Responsible Authorities

1.
In accordance with Article [56(3)] of the
Financial Regulation, each Responsible Authority responsible for the management
and control of expenditure under this Regulation shall be accredited by formal
decision of an accrediting authority at ministerial level.

2.
The accreditation shall be granted subject to
the body complying with the accreditation criteria on internal environment,
control activities, information and communication, and monitoring laid down in
or on the basis of this Regulation.

3.
The accreditation shall be based on an opinion
of an independent audit body that assesses the Responsible Authority’s compliance
with accreditation criteria. The independent audit body shall carry out its
work in accordance with internationally accepted audit standards.

4.
The accrediting authority shall supervise the
accredited Responsible Authority and withdraw its accreditation by formal
decision if one or more of the accreditation criteria are no longer met, unless
the Responsible Authority takes the necessary remedial actions within a period
of probation to be determined by the accrediting authority according to the
severity of the problem. The accrediting body shall notify the Commission
immediately of the setting of any probation period for an accredited
Responsible Authority and of any withdrawal decision.

5.
To ensure the sound operation of this system,
the Commission shall be empowered to adopt delegated acts in accordance with
the procedure referred to in Article 54 concerning:

(a)
minimum conditions for the accreditation of the
Responsible Authorities with regard to the internal environment, control
activities, information and communication, and monitoring, as well as rules on
the procedure for issuing and withdrawing accreditation;

(b)
rules relating to supervision and the procedure
for reviewing accreditation of Responsible Authorities;

(c)
the obligations of the Responsible Authorities
as regards public intervention, as well as on the content of their management
and control responsibilities.

Article 25
General principles on controls by Responsible Authorities

1.
Responsible Authorities shall carry out a systematic
administrative control of all payment requests from the beneficiaries and shall
supplement them by on-the-spot controls of the expenditure related to the final
payment requests from the beneficiaries that are declared in the annual
accounts in view of obtaining a sufficient level of assurance.

2.
As regards the on-the-spot controls, the
Responsible Authority shall draw its control sample from the entire population
of beneficiaries comprising, where appropriate, a random part and a risk-based
part, in order to obtain a representative error rate and a minimum confidence
level, while targeting also highest errors.

3.
The Responsible Authority shall draw up a control
report on each on-the-spot control.

4.
Where problems detected appear to be systemic in
nature and may therefore entail a risk to other projects, the Responsible
Authority shall ensure that further examination is carried out, including
additional controls where necessary, to establish the scale of such problems and
whether the error rate is above the materiality level. The necessary preventive
and corrective measures shall be taken by the Responsible Authority and
communicated to the Commission in the summary report referred to in Article 39(1)(c).

5.
The Commission shall, by means of implementing
acts, adopt the necessary rules aiming at reaching a uniform application of
this Article. These rules may in particular relate to the following:

(a)
the rules concerning administrative and on-the-spot
controls to be conducted by the Member States with regard to the respect of
obligations, commitments and eligibility rules resulting from the application
of this Regulation and the Specific Regulations;

(b)
the rules on the minimum level of on-the-spot controls
necessary for an effective management of the risks, as well as the conditions
under which Member States have to increase such controls, or may reduce them
where the management and control systems function properly and the error rates
are at an acceptable level;

(c)
the rules and methods on the reporting of the controls
and verification carried out and their results.

Those implementing acts shall be adopted by the
Commission in accordance with the examination procedure referred to in Article
55(3).

Article 26
Payment to beneficiaries

Responsible Authorities shall ensure that
the beneficiaries receive the total amount of the public support as quickly as
possible and in full. No amount shall be deducted or withheld and no specific
charge or other charge with equivalent effect shall be levied that would reduce
these amounts for the beneficiaries.

Article 27
Functions of the audit
authority

1.
The audit authority shall ensure that audits are
carried out on the management and control systems, on an appropriate sample of the
expenditure included in the annual accounts.

The Commission shall be empowered to adopt
delegated acts in accordance with the procedure referred to in Article 54 on
the status of the Audit Authorities and the conditions which their 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 internationallyaccepted audit standards.

Article 28
Cooperation with audit
authorities

1.           The Commission shall
cooperate with audit authorities to coordinate their respective audit plans and
methods and shall immediately exchange the
results of audits carried out on management and control systems.

2.           The Commission and the audit authorities shall meet on a regular basis and at least once a year,
unless otherwise agreed, to examine the annual control report and the
opinion, and to exchange views on issues
relating to improvement of the management and control systems.

Article 29
Controls and audits by the
Commission

1.
The Commission shall rely on available
information, including the accreditation procedure, annual management
declarations, annual control reports, annual audit opinions, annual
implementation reports and audits carried out by national and Union bodies, to
assess that the Member States have set up management and control systems that
comply with this Regulation and that those systems function effectively during
the implementation of national programmes.

2.
Without prejudice to audits carried out by
Member States, Commission officials or authorised Commission representatives
may carry out on-the-spot audits or controls upon giving adequate prior notice.
Officials or authorised representatives of the Member State may take part in
such audits or controls.

3.
The scope of the audits or controls may include,
in particular:

(a)
the verification of the effective functioning of
management and control systems in a national programme or a part thereof;

(b)
the compliance of administrative practices with Union
rules;

(c)
the existence of the required supporting
documents and their correlation with the actions supported under the national
programmes;

(d)
the terms on which the actions have been
undertaken and controlled;

(e)
an assessment of the sound financial management
of actions and/or the national programme.

4.
Commission officials or authorised Commission
representatives, duly empowered to carry out on-the-spot audits, shall have
access to all records, documents and metadata, irrespective of the medium in
which they are stored, relating to expenditure or to management and control
systems. Member States shall provide copies of such records, documents and
metadata to the Commission upon request.

The powers set out in this paragraph shall not
affect the application of national provisions which reserve certain acts for
agents specifically designated by national legislation. Commission officials
and authorised representatives shall not take part, inter alia, in home visits
or the formal questioning of persons within the framework of national
legislation. However, they shall have access to the information thus obtained.

5.
At the request of the Commission and with
the agreement of the Member State, additional controls or inquiries into the actions
covered by this Regulation shall be undertaken by the competent bodies of that
Member State. Commission agents or persons delegated by the Commission may take
part in such controls.

In order to improve controls, the Commission
may, with the agreement of the Member States concerned, request the assistance
of the authorities of those Member States for certain controls or inquiries.

6.
The Commission may require a Member State to
take the actions necessary to ensure the effective functioning of its
management and control systems or the correctness of expenditure in accordance
with the applicable rules.

Section 3
Financial Management

Article 30
Budget commitments

1.
The budget commitments of the Union in respect
of each national programme shall be made in annual instalments during the
period from 1 January 2014 to 31 December 2020.

2.
The Commission decision approving each national
programme shall constitute the financing decision within the meaning of Article
[81(2)] of the Financial Regulation, and once notified to the Member State
concerned, a legal commitment within the meaning of that Regulation.

3.
For each national programme, the budget commitment for the first
instalment shall follow the approval of the national programme by the
Commission.

4.
The budget commitments for subsequent
instalments shall be made by the Commission before 1 May of each year, on the
basis of the decision referred to in paragraph 2 of this Article, except where
Article [13] of the Financial Regulation applies.

Article 31
Common rules for payments

1.
Payments by the Commission of the contribution from
the Union budget to the national programme shall be made in accordance with
budget appropriations and subject to available funding. Each payment shall be
posted to the earliest open budget commitment concerned.

2.
Payments shall take the form of initial pre-financing,
payments of the annual balance and the payment of the final balance.

3.
Article [87]
of the Financial Regulation shall apply.

Article 32
Accumulation of initial
pre-financing and annual balances

1.
The total of the initial pre-financing payment
and the payments of the annual balance shall not exceed 95 % of the
contribution from the Union budget to the national programme.

2.
When the ceiling of 95 % is reached, the
Member States shall continue transmitting requests for payment to the
Commission.

Article 33
Initial pre-financing
arrangements

1.
Following the Commission decision approving the
national programme, an initial pre-financing amount for the whole programming
period shall be paid by the Commission. This shall represent 4% of the
contribution from the Union budget to the national programme concerned. It may be
split into two instalments depending on budget availability.

2.
If a national programme is approved in 2015 or
later, the instalments shall be paid in the year of approval.

3.
Pre-financing shall be used only for making
payments to beneficiaries implementing the national programme. It shall be made
available without delay to the Responsible Authority for this purpose.

4.
The total amount paid as prefinancing shall be
reimbursed to the Commission if no payment request in accordance with Article 39 is sent within 24 months of the date on which the Commission pays
the first instalment of the initial prefinancing amount.

5.
Interest generated on the initial prefinancing shall be posted to the
national programme
concerned and deducted from the amount of public expenditure indicated on the
final payment request.

6.
The amount paid as initial pre-financing shall
be totally cleared from the Commission accounts in accordance with Article 36 at the latest when the national programme
is closed.

Article 34
Definition of the financial year

For the purpose of this Regulation the
financial year shall cover expenditure paid and revenue received and entered
into the accounts of the Responsible Authority in the period beginning on 16
October in the year "N-1" and ending on 15 October of year
"N".

Article 35
 
Payment of the annual balance

1.
The Commission shall pay the annual balance,
subject to resource availability, on the basis of the financial plan in force,
the annual accounts for the corresponding financial year of the national programme
and the corresponding clearance decision.

2.
The annual accounts shall cover the payments
made by the Responsible Authority during the financial year for which the
control requirements referred to in Article 25 have been met.

3.
The annual balance shall be paid not
later than six months after the information and documents mentioned in Article
39(1) and Article 49 are considered admissible by the Commission and the latest
annual account have been cleared.

Article 36
Closure of the programme

1.
Member States shall submit the following
documents by 31 December 2023 at the latest:

(a)
The information required for the last annual
accounts, in accordance with Article 39(1);

(b)
a request for payment of the final balance; and

(c)
the final implementation report for the national
programme as referred to in Article 49(1).

2.
The payments
made by the Responsible Authority from 16 October 2022 to 30 June 2023 shall be
included in the last annual accounts.

3.
After receiving the
documents listed in paragraph 1, the Commission
shall pay the final balance, subject to resource availability, on the basis of
the financial plan in force, the last annual accounts and the corresponding
clearance decision.

4.
The final balance shall be paid no later than
three months after the date of clearance of accounts of the final financial
year or one month after the date of acceptance of the final implementation
report, whichever date is later. The amounts still committed after the balance
is paid shall be decommitted by the Commission within a period of six months,
without prejudice to Article 47.

Article 37
Interruption of the payment
period

1.
The payment period following a request for payment
may be interrupted by the authorising officer by delegation within the meaning
of the Financial Regulation for a maximum period of nine months, when at least
one of the following conditions is met:

(a)
following information provided by a national or
Union audit body, there is evidence to suggest a significant deficiency in the
functioning of the management and control system;

(b)
the authorising officer by delegation has to
carry out additional verifications following information coming to his
attention alerting him that expenditure in a payment request is linked to an
irregularity having serious financial consequences;

(c)
one or more documents required under Article 39(1)
were not submitted.

2.
The authorising officer by delegation may limit
the interruption to the part of the expenditure covered by the payment request
affected by the elements referred to in paragraph 1. The authorising officer by
delegation shall inform the Member State and the Responsible Authority
immediately of the reason for interruption and shall ask them to remedy the
situation. The interruption shall be ended by the authorising officer by
delegation as soon as the necessary measures have been taken.

Article 37a
Suspension of payments

1.
All or part of the annual balance may be
suspended by the Commission where:

(a)
there is a serious deficiency in the management
and control system of the programme which affects the reliability of the procedure
for certification of payments and for which corrective measures have not been
taken; or

(b)
expenditure in a certified statement of
expenditure is linked to a serious irregularity which has not been corrected;
or

(c)
there is a serious breach by a Member State of
its obligations under Article 22(1) and (2).

2.
The Commission may decide to suspend all or part
of annual balance after having given the Member State the opportunity to
present its observations within a period of two months.

3.
The Commission shall end suspension of all or
part of annual balance where the Member State has taken the necessary measures
to enable the suspension to be lifted. Where the required measures are not
taken by the Member State, the Commission may adopt the decision to cancel all
or part of the Union contribution to the operational programme in accordance
with Article 42.

Article 38
Use of the euro

1.
Amounts set out in programmes submitted by
Member States, forecasts of expenditure, statements of expenditure, payment requests,
annual accounts and expenditure mentioned in the annual and final
implementation reports shall be denominated in euro.

2.
Member States which have not adopted the euro as
their currency on the date of a payment request shall convert the amounts of
expenditure incurred in national currency into euro. This amount shall be
converted into euro using the monthly accounting exchange rate of the
Commission in the month during which the expenditure was registered in the
accounts of the Responsible Authority of the national programme concerned. The
rate shall be published electronically by the Commission each month.

3.
When the euro becomes the currency of a Member
State, the conversion procedure set out in paragraph 2 shall continue to apply
to all expenditure recorded in the accounts by the Responsible Authority before
the date of entry into force of the fixed conversion rate between the national
currency and the euro.

Section 4
Clearance of accounts and financial corrections

Article 39
Submission of information

1.
By 1 February of the year following the
financial year, each Member State shall submit the following documents and
information to the Commission in accordance with Article [56] of the Financial
Regulation:

(a)
the annual accounts of the Responsible Authority;

(b)
the management declaration of assurance as to
the completeness, accuracy and veracity of the annual accounts, the proper
functioning of the internal control systems as well as to the legality and
regularity of the underlying transactions and the respect of the principle of
sound financial management;

(c)
a summary report of all available audits and controls
carried out, including an analysis of systematic or recurrent weaknesses as
well as corrective actions taken or planned;

(d)
an audit opinion by the Audit Authority on the
management declaration of assurance covering all its elements, accompanied by a
control report setting out the findings of the audits carried out relating to
the financial year covered by the opinion.

2.
If requested to do so by the Commission the
Member State shall provide further information to the Commission. If a Member
State does not provide the requested information by the deadline for its
submission set by the Commission, the Commission may take its decision on the
clearance of the accounts on the basis of the information in its possession.

3.
The documents foreseen in paragraph 1 shall
serve as the request for payment of the annual balance.

4.
The documents listed in paragraph 1 shall be
drawn up according to the models adopted by the Commission by means of
implementing acts. Those implementing acts shall be adopted by the Commission
in accordance with the advisory procedure referred to in Article 55(2).

Article 40
Annual clearance of
accounts

1.
By 30 April of the year following the financial year,
the Commission shall decide on the clearance of the annual accounts for each national
programme. The clearance decision shall cover the completeness, accuracy and
veracity of the annual accounts submitted and be without prejudice to any
subsequent financial corrections.

2.
The Commission shall, by means of implementing
acts, lay down the modalities for the implementation of the annual clearance of
accounts procedure, as regards the measures to be taken in connection to the
adoption of the decision and its implementation, including on the exchange of
information between the Commission and the Member States and the deadlines to
be respected. Those implementing acts shall be adopted in accordance with the
examination procedure referred to in Article 55(3).

Article 41
Financial corrections by
the Member States

Member States shall make financial corrections
where irregularities or negligence are detected under the national programmes
by cancelling all or part of the contribution from the Union budget concerned.
Member States shall take into account the nature and gravity of the irregularities
and the financial loss to the Union budget and shall apply a proportionate
correction.

Amounts cancelled and amounts recovered, as
well as the interest thereon, shall be reallocated to the national programme
concerned, excluding the amounts resulting from irregularities identified by
the European Court of Auditors and the Commission services including OLAF.

After the closure of the national
programme, the Member State shall refund the sums recovered to the Union budget.

Article 42
Conformity clearance and financial
corrections by the Commission

1.
The Commission shall make financial corrections
by cancelling all or part of the Union contribution to a national programme and
effecting recovery from the Member State in order to exclude from Union financing
expenditure which is in breach of applicable Union and national law, including
in relation to deficiencies in the management and control systems of Member
States which have been detected by the Commission or the European Court of
Auditors.

2.
A breach of applicable Union or national law
shall lead to a financial correction only where one of the following conditions
is met:

(a)
the breach has or could have affected the
selection of projects under the national programme;

(b)
there is a risk that the breach has or could
have affected the amount of expenditure declared for reimbursement by the Union
budget.

3.
When deciding on the amount of a financial
correction under paragraph 1, the Commission shall take account of the nature
and gravity of the breach of applicable Union or national law and its financial
implications for the Union budget.

4.
Before the adoption of any decision to refuse
financing, the findings from the Commission and the Member State's replies
shall be notified in writing, following which the two parties shall attempt to
reach agreement on the action to be taken.

5.
Financing may not be refused for:

(a)     expenditure
which is incurred by the Responsible Authority more than 36 months before the Commission notifies the Member State in writing
of its findings;

(b)     expenditure on multiannual actions within the scope of the national programmes,
where the final obligation on the beneficiary occurs more than 36 months before
the Commission notifies the Member State in writing of its findings;

(c)     expenditure
on actions in national programmes, other than those
referred to in point (b) of this paragraph, for which the payment or, as the
case may be, the final payment, by the Responsible Authority, is made more than
36 months before the Commission notifies the Member State in writing of its
findings.

6.
The Commission shall, by means of implementing
acts, lay down the modalities for the implementation of the conformity
clearance as regards the measures to be taken in connection with the adoption
of the decision and its implementation, including the information exchange between
the Commission and the Member States and the deadlines to be respected. Those
implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 55(3).

Article 43
Obligations of Member
States

A financial correction by the Commission
shall not prejudice the Member State's obligation to pursue recoveries under
Article 21(h) of this Regulation and to recover State aid in the meaning
of Article 107(1) of the Treaty and under Article 14 of Council
Regulation (EC) No 659/1999[13].

Article 44
Repayment

1.           Any repayment due to be
made to the general budget of the Union shall be effected before the due date
indicated in the order for recovery drawn up in accordance with Article [77]
of the Financial Regulation. The due date shall be the last day of the second
month following the issuing of the order.

2.           Any delay in effecting
repayment shall give rise to interest on account of late payment, starting on
the due date and ending on the date of actual payment. The rate of such
interest shall be one-and-a-half percentage points above the rate applied by
the European Central Bank in its main refinancing operations on the first
working day of the month in which the due date falls.

Section 5
Decommitment

Article 45
Principles

1.
National programmes shall be submitted to
a decommitment procedure established on the basis that amounts linked to a
commitment which are not covered by the initial pre-financing referred to in
Article 33 or a request for payment in accordance with Article 39 by 31 December of the second year following that of the
budget commitment shall be decommitted.

2.
The commitment related to the last year of the
period will be decommitted according to the rules followed for the closure of
the programmes.

3.
Any commitment still open on the latest date for
expenditure to be eligible as referred to in Article 17(3) for which a payment
request has not been made by the Responsible Authority within six months after
that date shall be automatically decommitted.

Article 46
Exceptions to the
decommitment

1.
The amount concerned by decommitment shall be
reduced by the amounts that the Responsible Authority has not been able to
declare to the Commission because of:

(a)     actions suspended by a legal
proceeding or by an administrative appeal having suspensory effect; or

(b)     reasons of force majeure
seriously affecting implementation of all or part of the national programme. Responsible
Authorities claiming force majeure shall demonstrate the direct
consequences of the force majeure on the implementation of all or part of the national
programme.

The reduction may be requested once if the
suspension or force majeure lasted up to one year, or several times
corresponding to the duration of the force majeure or the number of
years between the date of the legal or administrative decision suspending the
implementation of the action and the date of the final legal or administrative
decision.

2.
The Member State shall send the Commission
information on the exceptions referred to in paragraph 1 by 31 January for the
amount to be declared by the end of preceding year.

3.
The part of the budget commitments for which a payment
request has been made but payment of which has been reduced or suspended by the Commission at 31 December of year N +
2 shall be disregarded in calculating the automatic decommitment.

Article 47
Procedure

1.           The Commission shall
inform the Member State in good time whenever there is a risk of application of
decommitment under Article 42.

2.           On the basis of the
information it has on 31 January, the Commission shall inform the Responsible
Authority of the amount of the decommitment resulting from the information in
its possession.

3.           The Member State shall
have two months to agree to the amount to be decommitted or to submit its
observations.

4.           The Commission shall carry
out the automatic decommitment not later than nine months after the last
time-limit resulting from the application of paragraphs 1 to 3.

5.           In the event
of automatic decommitment, the contribution from the Union budget to the national
programme concerned shall be reduced, for the year in question, by the amount
automatically decommitted. The Union contribution in the financing plan will be
reduced pro-rata, unless the Member State produces a revised financing plan.

CHAPTER V

INFORMATION, COMMUNICATION, MONITORING,
EVALUATION AND REPORTING

Article 48
Information and
publicity

1.
Member States and Responsible Authorities
shall be responsible for:

(a)
ensuring the establishment of a website or a
website portal providing information on and access to the national programmes
in that Member State;

(b)
informing potential beneficiaries about funding
opportunities under the national programmes;

(c)
publicising to Union citizens the role and
achievements of the Specific Regulations through information and communication
actions on the results and impact of the national programmes.

2.
Member States shall ensure transparency on the
implementation of the national programmes and maintain a list of actions supported
by each national programme which shall be accessible through the website or the
website portal.

3.
The Commission shall be empowered to adopt by
delegated acts in accordance with the procedure referred to in Article 54 to
lay down rules concerning the information and publicity measures for the public
and information measures for beneficiaries.

4.
The Commission shall, by means of implementing
acts, define the technical characteristics of information and publicity
measures. Those implementing acts shall be adopted by the Commission in
accordance with the examination procedure referred to Article 55(3).

Article 49
Implementation
reports

1.
By 31 March 2016 and by 31 March of each
subsequent year until and including 2022, the Member State shall submit to the
Commission an annual report on implementation of each national programme in the
previous financial year.

The report submitted in 2016 shall cover the
financial years 2014 and 2015.

The Member State shall submit a final report on
implementation of the national programmes by 31 December 2023.

2.
Annual implementation reports shall set out
information on:

(a)
implementation of the national programme by
reference to the financial data and the indicators;

(b)
any issues which affect the performance of the national
programme.

3.
In the light of the mid-term review, the annual
implementation report submitted in 2017 shall set out and assess the
information referred to in paragraph 2 together with:

(a)
progress towards achieving the objectives
pursued with the contribution from the Union budget to the national programme;

(b)
the involvement of the partners in the
implementation, monitoring and evaluation of the national programme.

4.
The annual implementation report submitted in
2019 and the final implementation report shall, in addition to the information
and assessment set out in paragraphs 2 and 3 include information on and assess
progress towards achieving the objectives of the national programme.

5.
The annual implementation reports referred to in
paragraphs 1 to 4 shall be admissible where they contain all the information
required in those paragraphs. The Commission shall inform the Member State within
15 working days from the date of receipt of the annual implementation report if
it is not admissible, failing which it shall be deemed admissible.

6.
The Commission shall inform the Member State of
its observations on the annual implementation report within two months from the
receipt of the annual implementation report. Where the Commission does not
provide observations within this deadline, the reports shall be deemed to be
accepted.

7.
The Commission may issue recommendations to address
any issues which affect the implementation of the national
programme. Where such recommendations are made, the Responsible
Authority shall inform the Commission within three months of the corrective
measures taken.

8.
The annual and final implementation reports
shall be drawn up according to the models adopted by the Commission. Those
implementing acts shall be adopted in accordance with the advisory procedure
referred to in Article 55(2).

Article 50
The
common monitoring and evaluation framework

1.
The Commission shall carry out regular
monitoring of this Regulation and the Specific Regulations, where appropriate, in
cooperation with the Member States.

2.
The implementation of the Specific Regulations
shall be evaluated by the Commission in partnership with the Member States.

3.
A common monitoring and evaluation framework
shall be established with a view to measuring the relevance, effectiveness,
efficiency, added value, sustainability of the actions and the simplification
and the reduction of administrative burden, in the light of the objectives of
this Regulation and the Specific Regulations and the performance of this
Regulation and the Specific Regulations as instruments contributing to the
development of the area of freedom, security and justice.

4.
The Commission shall be empowered to adopt
delegated acts in accordance with the procedure referred to in Article 54 to develop
further the common monitoring and evaluation framework.

5.
Member States shall provide the Commission with
all the information necessary to permit the monitoring and evaluation of this
Regulation and the Specific Regulations.

6.
The Commission shall also consider the
complementarity between the actions implemented under the Specific Regulations and
those pursued under other relevant Union policies, instruments and initiatives.

Article 51
Evaluation
of national programmes by Member States

1.
Member States shall carry out evaluations to
improve the quality of the design and the implementation of national programmes,
in accordance with the common monitoring and evaluation framework.

2.
Member States shall ensure that procedures are
in place to produce and collect the data necessary for evaluations, including
data related to common and programme-specific indicators.

3.
The evaluations shall be carried out by
evaluation experts that are functionally independent of the Responsible
Authorities, Audit Authorities and Delegated Authorities. The Commission shall
provide guidance on how to carry out evaluations.

4.
All evaluations shall be made public in their
entirety.

Article 52
Evaluation
reports by the Member States and the Commission

1.
In accordance with the common monitoring and
evaluation framework, the Member States shall submit to the Commission:

(a)     an interim evaluation report on the
implementation of actions under the national programmes by 31 December 2017;

(b)     an ex-post evaluation report on the effects
of actions under the national programmes by 31 December 2023.

2.
On the basis of the reports referred to in
paragraph 1, the Commission shall submit to the European Parliament, the
Council, the European Economic and Social Committee and the Committee of the
Regions:

(a)
an interim evalution report on the implementation
of this Regulation and the Specific Regulations at the level of the Union by 30
June 2018;

(b)
an ex-post evaluation report on the effects of this
Regulation and the Specific Regulations, following the closure of the national
programmes, by 30 June 2024.

3.
The ex-post evaluation of the Commission shall
also examine the impact of the Specific Regulations on the development of the
area of freedom, security and justice in terms of their contribution to the following
objectives:

(a)
the development of a common culture of border
security, law enforcement cooperation and crisis management;

(b)
effective management of migration flows into the
EU;

(c)
the development of the Common European Asylum
System;

(d)
fair and equal treatment of third-country
nationals;

(e)
solidarity and co-operation between Member
States in addressing migration and internal security issues;

(f)
a common approach of the Union on migration and
security towards third countries.

Article 53
Report
on the mid term review

In 2018 the Commission shall submit to the
European Parliament, the Council, the European and Economic and Social
Committee and the Committee of the Regions a report on the mid term review carried
out in accordance with the provisions of this Regulation and the Specific
Regulations.

CHAPTER VI

TRANSITIONAL AND FINAL PROVISIONS

Article 54

Exercise of the delegation

1.
The power to adopt delegated acts is conferred
on the Commission subject to the conditions laid down in this Article.

2.
The delegation of power referred to in this
Regulation shall be conferred on the Commission for a period of seven years
from the entry into force of this Regulation. The delegation of power shall be
tacitly extended for a period of an identical duration, unless the European
Parliament or the Council opposes such extension no later than 3 months before
the end of each period.

3.
The delegation of powers referred to in this
Regulation may be revoked at any time by the European Parliament or by the
Council. A decision of revocation shall put an end to the delegation of the
power specified in that decision. It shall take effect the day following the
publication of the decision in the Official Journal of the European Union
or at a later date specified therein. It shall not affect the validity of any
delegated acts already in force.

4.
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5.
A delegated act adopted pursuant to this
Regulation shall enter into force only if no objection has been expressed
either by the European Parliament or the Council within a period of two months
of notification of that act to the European Parliament and the Council or if,
before the expiry of that period, the European Parliament and the Council have
both informed the Commission that they will not object. That period shall be
extended by two months at the initiative of the European Parliament or the
Council.

Article 55

Committee Procedure

1.
The Commission shall be assisted by the common
Committee 'Asylum, Migration and Security' established by this Regulation. That
Committee shall be a Committee within the meaning of Regulation (EU) No 182/2011.

2.
Where reference is made to this paragraph,
Article 4 of Regulation (EU) No 182/2011 shall apply.

3.
Where reference is made to this paragraph,
Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 56

Review

On the basis of a proposal from the
Commission, the European Parliament and the Council shall review this Regulation
by 30 June 2020 at the latest.

Article 57

Entry into force

This Regulation shall enter into force on
the day following that of its publication in the Official Journal of the
European Union.

This Regulation shall be binding
in its entirety and directly applicable in the Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX

LEGISLATIVE FINANCIAL
STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of estimated impact on expenditure

3.2.2. Estimated
impact on operational appropriations

3.2.3. Estimated
impact on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

Communication
"Building an open and secure Europe: the home affairs budget for
2014-2020";

Proposal
for a Regulation laying down general provisions on the Asylum and Migration
Fund and on the instrument for financial support for police cooperation,
preventing and combating crime, and crisis management;

Proposal
for a Regulation establishing the Asylum and Migration Fund;

Proposal
for a Regulation establishing the instrument for financial support for police
cooperation, preventing and combating crime, and crisis management;

Proposal
for a Regulation establishing, as part of the Internal Security Fund, the
instrument for financial support for external borders and visa.

1.2.
Policy area(s) concerned in the ABM/ABB
structure[14]

Currently
Heading 3, Title 18 – Home Affairs

Future
Multiannual Financial Perspectives: Heading 3 (Security and citizenship) –
"Migration Management Fund" and "Internal security"

Nature of the proposal/initiative

þ The
proposal/initiative relates to a new action (home affairs funding for the period 2014-2020)

 ̈ The
proposal/initiative relates to a new action following a pilot project/preparatory
action[15]

 ̈ The
proposal/initiative relates to the extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.3.
Objectives
1.3.1.
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative

The final
aim of home affairs policies is to create an area without internal borders
where EU citizens and third-country nationals may enter, circulate, live and
work, bringing new ideas, capital, knowledge and innovation or filling gaps in
the national labour markets, confident that their rights are fully respected
and their security assured. Cooperation with non-EU countries and international
organisations is crucial to achieving this goal.

The growing
importance of home affairs policies has been confirmed by the Stockholm
Programme and its Action Plan, the implementation of which is a strategic
priority for the Union and covers areas such as migration (legal migration and
integration; asylum; irregular migration and return), security (prevention of
and fight against terrorism and organised crime; police cooperation) and
management of the external borders (including visa policy), as well as the
external dimension of these policies. The Lisbon Treaty also enables the Union
to demonstrate greater ambition in responding to the day-to-day concerns of
citizens in the area of freedom, security and justice. Home affairs policy
priorities, in particular the integration of third-country nationals, should
also be seen in the context of the seven flagship initiatives presented in the
Europe 2020 Strategy which aim to help the EU overcome the current financial
and economic crisis and achieve smart, sustainable and inclusive growth.

The Asylum
and Migration Fund and the Internal Security Fund will provide the financial
assistance needed to turn the Union's home affairs objectives into tangible
results.

1.3.2.
Specific objective(s) and ABM/ABB activity(ies)
concerned

ASYLUM
AND MIGRATION FUND

(a)        strengthen
and develop the Common European Asylum System, including its external
dimension;

(b)        support
legal migration to the Union in line with the economic and social needs of
Member States and promote the effective integration of third-country nationals,
including of asylum seekers and beneficiaries of international protection;

(c)        enhance
fair and effective return strategies in the Member States, with emphasis on
sustainability of return and effective readmission in the countries of origin;

(d)        enhance
the solidarity and responsibility sharing between the Member States, in
particular towards those most affected by migration and asylum flows.

Current
ABB activities concerned: 18.03 (European Refugee
Fund, emergency measures and European Fund for the Integration of Third-Country
Nationals) and 18.02 (as far as European Return Fund is concerned).

INTERNAL
SECURITY FUND

Instrument
for financial support for police cooperation, preventing and combating crime,
and crisis management

In line
with the priorities identified in relevant Union strategies, programmes, threat
and risk assessments, the Instrument will contribute to the following specific
objectives

(a)        preventing
and combating cross-border, serious and organised crime including terrorism,
and reinforcing coordination and cooperation between law enforcement
authorities of Member States and with relevant third-countries.;

(b)        enhancing
the capacity of Member States and the Union for managing effectively
security-related risks and crisis, and preparing for and protecting people and
critical infrastructure against terrorist attacks and other security related
incidents.

Current
ABB activities concerned: 18.05

Instrument
for financial support for external borders and visa

In line
with the priorities identified in relevant EU strategies, programmes, threat
and risk assessments, the Instrument will contribute to the following specific
objectives

(a)        supporting
a common visa policy to facilitate legitimate travel, ensure equal treatment of
third country nationals and tackle irregular migration

(b)        supporting
borders management, to ensure, on one hand, a high level of protection of
external borders and, on the other hand, the smooth crossing of the external
borders in conformity with the Schengen acquis.

Current
ABB activity concerned: 18.02 (as far as External
Borders Fund is concerned).

1.3.3.
Expected result(s) and impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

The effects
of the proposal on beneficiaries/target groups are described in more detail in
Section 4.1.2 of the Impact Assessment.

In general,
simplification introduced at all levels of the funding process and in each
management mode will have a clear beneficial effect on the processes under
which financial support will be managed.

Asylum
and Migration Fund:

The main beneficiaries
of the financial support for asylum and migration will be the Member States'
departments responsible for the implementation of relevant acquis or policies
as well as international organisations or NGOs working in the field of asylum
and migration (admission procedures, integration measures and return
operations).

The target
groups benefitting from the changes are the asylum seekers, beneficiaries of
international protection, resettled refugees and other third-country nationals
arriving to the EU for various reasons and having different needs (e.g.
economic, family reunification, unaccompanied minors, etc.). These target
groups will be easier to reach as the merging of different actions concerning
the management of migration into one Fund renders the access to funding easier
(one responsible authority, better visibility and
clearer scope of intervention) and will allow more flexible support (e.g. same
kind of action aiming at several target groups). The scope of intervention will
also be broadened, covering the whole migration chain with different target
groups, including extended target groups, i.e. third-country nationals of
second generation (having mother or father third-country national).

Internal
Security Fund:

Police
cooperation, preventing and combating crime, and crisis management

The main
beneficiaries of the financial support will be the Member States and their law
enforcement authorities as well as any other authority specialised in the
protection of critical infrastructure and the management of crisis, but also
relevant International and Non-Governmental Organisations, where appropriate
(e.g. in the field of crime prevention, anti-radicalisation and
anti-trafficking policies).

The target group benefitting from the changes
will be the whole population.       
The main achievements will be 1) an enhanced administrative and operational
capability of Member States to detect and successfully prosecute cross-border,
serious and organised crime, including terrorism in order to reduce the
security-related threats emanating from such crime, and 2) stronger European
resilience to crisis and disaster owing to a more coherent EU policy on risk
management linking threat and risk assessments to policy making on the one hand
and a more effective and co-ordinated EU response to crisis linking up existing
capabilities and expertise on the other hand. An important achievement will
also be improved capabilities of Member States to prevent, prepare and protect
people and critical infrastructure against terrorist attacks and other serious
security-related threats.

External borders and visa

The main beneficiaries of the financial support
for borders and visa will be the services implementing the EU acquis, the
Schengen Borders Code and the Visa Code in the Member States: border guards,
police and consular services. The target group benefitting from the changes
will be travellers - all persons crossing external borders into the EU. The
outcomes will include the enhanced capabilities of these services (1) to carry out
border surveillance and liaise with other law enforcement services, within the
framework of the European surveillance system (EUROSUR); (2) to manage
migration flows at consular posts (visa applications) and (3) to improve the
handling of passenger flows at border crossing points, ensuring on the one
hand, a high and uniform level of protection, in co-operation with other law
enforcement services, and, on the other, the smooth crossing in conformity with
the acquis and the principles of respectful treatment and dignity. An important
specific outcome will be the setting up of two new EU IT systems on the
movement of third-country nationals across borders (an EU entry exit system and
an EU registered travellers programme).

1.3.4.
Indicators of results and impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

Due to the
necessity to conduct a policy dialogue before defining the national programmes,
it is not possible to establish at this stage the definitive set of indicators
that will be used to measure achievement of the above-mentioned specific
objectives.

However, with regard to the area of asylum and migration
indicators would include, inter alia, the level of
improvement in asylum reception conditions, in the quality of asylum procedures,
in the convergence of recognition rates across Member States, and in Member
States' resettlement efforts, the level of increased participation of
third-country nationals in employment, education and in democratic processes, the
number of returnees and the level of increased mutual
assistance between Member States including through practical cooperation and
relocation.

With regard
to police cooperation and the prevention and combating of crime,
indicators would include the number of cross-border-joint operations and the
number of best practice documents and events organised. Indicators for crisis
management and the protection of critical infrastructure would include the
number of tools put in place and/or further upgraded to facilitate the protection
of critical infrastructure by Member States in all sectors of the economy and the
number of threat and risk assessments produced at the level of the Union.

In the area
of borders and visa indicators would include the number of consular
posts, secured and/or enhanced to ensure the efficient processing of visa
applications and provide quality of service to visa applicants, and the
development of equipment for border control and the apprehensions of irregular
third-country nationals at the external border in correspondence with the risk
of the relevant section of the external border. Impact indicators will measure
the increase in border security, visa issuing capacity and the capacity to
handle safely and smoothly the traffic of travellers across borders.

1.4.
Grounds for the proposal/initiative
1.4.1.
Requirement(s) to be met in the short or long
term

The EU will
continue to face important challenges in the home affairs area in the period
2014-2020. Given demographic changes, structural changes in the labour markets and
patterns of competition for skills, a forward-looking legal immigration and
integration policy will be crucial for enhancing the EU's competitiveness and
social cohesion, enriching our societies and creating opportunities for all.
The EU also needs to properly address irregular migration and fight against
trafficking in human beings. At the same time, we must continue to show
solidarity with those in need of international protection. The completion of a
more protective and efficient Common European Asylum System which reflects our
values remains a priority.

Ensuring a
safe and secure environment is necessary and beneficial to the economic,
cultural and social growth of the EU. The EU has a decisive role to play,
whether it is by addressing the threats of serious and organized crime,
cybercrime and terrorism, and by ensuring the management of EU's external
borders or by responding swiftly to emerging crises caused by man-made or
natural disasters. In the era of globalisation, where threats are growing and
increasingly have a transnational dimension, no Member State can respond
effectively on its own. A coherent and comprehensive European answer is needed
to ensure that law enforcement authorities can work effectively across borders
and jurisdictions.

Cooperation
with non-EU countries and international organisations is crucial to achieving
these goals. Recent events in Northern Africa have demonstrated how important
it is for the EU to have a comprehensive and coordinated approach to migration,
borders and security. The increasingly important external dimension of the EU's
home affairs policies must therefore be reinforced, in full coherence with the
Union's foreign policy.

1.4.2.
Added value of EU involvement

The
management of migration flows and security threats present challenges which
cannot be dealt with by the Member States acting alone. These are areas where
there is obvious added value in mobilising the EU budget.

Some Member
States bear a heavy burden due to their specific geographic situation and the
length of the external borders of the Union that they have to manage. The
abolition of internal border controls must be accompanied by common measures
for the effective control and surveillance of the Union's external borders. The
principle of solidarity and the fair sharing of responsibilities between Member
States is therefore at the heart of the common policies on asylum, immigration
and external borders. The EU budget provides the means to address the financial
implications of this principle. In the area of security, serious and organised
crime, terrorism and other security-related threats are increasingly
cross-border in nature. Transnational co-operation and coordination between law
enforcement authorities is essential to successfully prevent and fight these
crimes, for example through the exchange of information, joint investigations,
interoperable technologies and common threat and risk assessments.

Dealing
with migration flows, the management of the EU's external borders and the
security of the EU requires substantial resources and capabilities from the
Member States. Improved operational co-operation and coordination involving the
pooling of resources in areas like training and equipment creates economies of
scale and synergies thereby ensuring a more efficient use of public funds and
reinforcing solidarity, mutual trust and responsibility sharing for common EU
policies among Member States. This is particularly relevant in the area of
security, where financial support for all forms of cross-border joint operation
is essential to enhance cooperation between police, customs, border guards and
judicial authorities.

In relation
to the external dimension of home affairs, it is clear that the adoption of
measures and the pooling of resources at EU level will increase significantly
the EU leverage necessary to convince third countries to engage with the EU on
those migration and security related issues which are primarily in the interest
of the EU and the Member States.

The EU's
right to act in the home affairs area derives from Title V "Area of
Freedom, Security and Justice" of the Treaty on the Functioning of the
European Union (TFEU), in particular Articles 77(2), 78(2), 79(2) and (4), 82(1),
84 and 87(2) TFEU. Cooperation with third countries and international
organisations is covered by Article 212(3) TFEU. The proposals respect the
principle of subsidiarity because the majority of funding will be implemented
in accordance with the principle of shared management and respecting the
institutional competencies of the Member States.

1.4.3.
Lessons learned from similar experiences in the
past

Although
the current home affairs financial instruments are generally considered to
achieve their objectives and function effectively, the lessons learned from the
mid-term review and the stakeholder consultation are that there is a need to:

– Simplify and streamline the future home affairs instruments by reducing the number of financial programmes to two through the
creation of an Asylum and Migration Fund and an Internal Security Fund. This
will allow the EU to make a more strategic use of its instruments so that they
are more responsive to the EU's political priorities and needs;

– Strengthen the role of the EU as a global player, by including an external dimension component in the future Funds
to reinforce the EU's leverage in respect of the external policy dimension of
home affairs policies;

– Give preference to shared management
rather than centralised management where possible to remove unnecessary
bureaucratic burdens;

– Establish a more results-oriented approach to shared management by moving to multiannual programming with a senior-level policy
dialogue will ensure that the Member States' national programmes are fully
aligned with EU policy objectives and priorities and focus on achieving
results;

– Improve centralised management to provide a range of tools for
policy-driven activities, including support for
transnational actions, particularly innovative actions and actions in and
related to third countries (external dimension), as well as emergency actions,
studies and events;

– Establish a common regulatory framework
with a shared set of rules on programming, reporting, financial management and
controls which is as similar as possible to that of the other EU Funds managed
in the shared management mode in order to generate a better understanding of
the rules by all stakeholders and to ensure a high degree of coherence and
consistency;

– Provide for a quick and effective response in case of emergencies, designing the Funds so that the EU can react appropriately in fast
evolving situations;

– Enhance the role of the home affairs agencies to foster practical cooperation between Member States and by
entrusting them with the implementation of specific actions, whilst ensuring
appropriate political control over the agencies' activities.

More
details can be found in the impact assessment and the explanatory memoranda of
each Regulation.

1.4.4.
Coherence and possible synergy with other
relevant instruments

A number of
other EU instruments will provide support to activities which are complementary
to the activities that will be financed under the Asylum and Migration Fund and
the Internal Security Fund:

The European
Social Fund currently supports integration measures on access to the labour
market whereas the Integration Fund finances measures such as civic orientation
courses, participation in social and civic life, equal access to services, etc.
Integration measures will continue to be supported along the same lines under
the Asylum and Migration Fund and the future European Social Fund.

The
dividing line between the Internal Security Fund and the Civil Protection
Financial Instrument will remain as described in Article 3 of the current
CIPS programme: natural disasters as well as unintentional man-made disasters
are for civil protection (accidents), whereas intentional, man-made disasters
are security-relevant and will therefore for covered by the Internal Security
Fund.

Terrorist
attacks or other security-related incidents will remain outside the scope of the
EU Solidarity Fund. The precise scope and extent to which Article 222
TFEU (solidarity clause) might support Member States that are the object of a
terrorist attack or the victim of natural and man-made disaster, is also not
clear as this requires the formal adoption of implementing arrangements which
have not even been proposed yet. Emergency funding possibilities in case of a
major terrorist attack or other security-relevant incidents will therefore be
supported by the Internal Security Fund.

The gap between
security research under the Horizon 2020 Programme and the practical
application of the results of such research will be closed because the Internal
Security Fund will foresee specific objectives and eligible actions to allow
for the funding of testing and validating of scientific research results
('prototypes') with a view to their serial application in practice
('pre-commercial procurement').

The future Justice
Programme will be closely linked and complementary to the Internal Security
Fund, especially its criminal justice component but is more focussed on
judicial cooperation, procedural harmonisation and mutual recognition which in
practice prevent substantial overlaps.

The
external dimension components of the Asylum and Migration Fund and the Internal
Security Fund will support actions in and in relation to third countries which
cater primarily for EU interests and objectives, have a direct impact in the EU
and its Member States and ensure continuity with activities implemented in the
territory of the EU. This funding will be designed and implemented in coherence
with EU external action and foreign policy. It is not intended to support
actions which are development oriented and will complement, when appropriate,
the financial assistance provided through external aid instruments. In this
context, the successor to the Thematic Programme Migration & Asylum and
the Instrument for Stability will be of particular interest for the home
affairs area. While external aid instruments either support beneficiary
countries’ development needs or support general EU political interests with
strategic partners, home affairs funds will support specific actions in third
countries in the interest of EU migration policy and EU internal security
objectives. They will therefore fill a specific gap and will contribute to
completing the toolbox at the disposal of the EU.

1.5.
Duration and financial impact

þ Proposal/initiative of limited
duration

–
þ    Proposal/initiative in effect from 01/01/2014 to 31/12/2020

–
þ    Financial impact from 2014 to 2023

 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
followed by full-scale operation.

1.6.
Management mode(s) envisaged[16]

þCentralised direct management by the Commission

þ Centralised indirect management with
the delegation of implementation tasks to:

–
þ    executive agencies

–
þ    bodies set up by the Communities[17]

–
þ    national public-sector bodies/bodies with public-service mission

–
 ̈    persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

þ Shared management with the Member
States

þDecentralised management with third countries

þ Joint management with international
organisations (to be specified)

If more than one
management mode is indicated, please provide details in the
"Comments" section.

Comments:

The
proposals will be mainly implemented through shared management, with
multi-annual national programmes.

The
objectives to be achieved under the national programmes will be complemented by
"Union actions" and a rapid response mechanism to deal with emergency
situations. These will mainly take the form of grants and procurement under
centralised direct management and will include actions in and in relation to
third countries.

All
possible means will be used to avoid fragmentation by concentrating resources
on achieving a limited number of EU objectives and using the expertise of key
stakeholders, where appropriate, on the basis of partnership agreements and
framework agreements.

Technical
assistance at the initiative of the Commission will be implemented by
centralised direct management.

The
countries associated with the application, implementation and the development
of the Schengen acquis will also participate in the two instruments of the
Internal Security Fund which constitute a development of the Schengen acquis
(the instruments on borders and visa and police co-operation) as if they are
Member States, in light of the Schengen Association Agreements. They will
participate in the instruments in accordance with the provisions of the
Regulation, implementing their own multi-annual national programmes and have
the possibility to apply for funding under the Union actions etc. As under the
External Borders Fund, specific arrangements will be concluded to specify the
supplementary rules necessary for their participation (rules deriving from the
Financial Regulation, its Implementing Rules and the Treaties, including the
power of audit of the Court of Auditors). Since these States will contribute to
the EU budget for the two instruments in proportion to their GDP, the
arrangements will also determine the contributions to be received from these
States as part of the responsibility-sharing on the Schengen governance, and
this regardless of the size of their allocations under the instruments. To
date, the associated States are Norway, Iceland, Switzerland and Liechtenstein.

2.
MANAGEMENT MEASURES
2.1.
Monitoring and reporting rules

Specify frequency
and conditions.

For
shared management, a coherent and efficient
reporting, monitoring and evaluation framework is proposed. For each national
programme, Member States will be requested to set up a Monitoring Committee to
which the Commission may participate.

On an
annual basis Member States will report on the implementation of the multiannual
programme. These reports are a precondition for annual payments. To feed into
the mid term review process, they will be requested in 2017 to provide
additional information on the progress made in achieving the objectives. A
similar exercise will be undertaken in 2019, to allow, where appropriate,
adjustments during the last financial year (2020).

Supporting
the development of an evaluation-based culture in the area of home affairs, the
Funds will have a common evaluation and monitoring framework with broad policy
related indicators which underline the result-oriented approach of the Funds
and the essential role they could play in the policy mix to achieve the
objective of creating an area of freedom, security and justice. These
indicators relate to the impact the Funds could make: the development of a
common culture of border security, police cooperation and crisis management;
effective management of migration flows into the EU; fair and equal treatment
of third-country nationals; solidarity and co-operation between Member States
in addressing migration and internal security issues and a common EU approach
on both migration and security towards third countries.

To ensure
adequate application of the principles on evaluation, and bearing in mind the
practical experience with evaluation in Member States under the current EU
funding on home affairs, the Commission and the Member States will work
together to develop the common evaluation and monitoring framework, inter alia
by defining templates and common output and result indicators.

All
measures will be established at the beginning of the programming period, thus
enabling Member States to set up their reporting and evaluation systems on the
basis of the agreed principles and requirements.

To reduce
administrative burden and ensure synergies between reporting and evaluation,
the information required for evaluation reports will build on and complete the
information provided by Member States in the annual implementation reports of
the national programmes.

In 2018,
the Commission will also submit a report on the mid term review carried out of
the national programmes.

More
globally, the Commission will submit an
intermediate report on the implementation of the Funds by 30.06.2018 and an
ex-post evaluation report by 30.06.2024, covering the whole implementation
(i.e. not only national programmes under shared management).

2.2.
Management and control system
2.2.1.
Risk(s) identified

DG HOME has
not been facing important risks of errors in its spending programmes. This is
confirmed by the recurrent absence of significant findings in the annual
reports of the Court of Auditors as well as by the absence of residual error
rate above 2% in the past years in DG HOME (and former DG JLS) annual activity
reports.

In
shared management, the general risks in relation to
the implementation of the current programmes fall mainly into three categories:

– Risk of inefficient or insufficiently targeted use of funds;

– Errors derived from the complexity of rules and weaknesses in
management and control systems;

– Inefficient use of administrative resources (limited proportionality
of requirements);

Specific
elements concerning the system of the 4 Funds under the General Programme
"Solidarity and Management of Migration Flows" are also worth
mentioning.

– The system of annual programmes ensures that final payments are made
regularly based on certified and audited expenditure. However, the eligibility
period of the annual programmes is disconnected from the EU financial year and
the chain of assurance is therefore not totally satisfactory, despite a very
heavy system.

– Detailed eligibility rules are set by the Commission. This ensures
in principle the homogeneity of the expenditure financed. However it also
creates unnecessary workload for national authorities and the Commission and
increases the risk of errors from beneficiaries and/or Member States due to the
misinterpretations of EU rules.

– The current management and control systems are very close to those
under the Structural Funds. However, they present slight differences, notably
in the chain of responsibilities between certifying authorities and Audit
Authorities. This creates confusion in the Member States, in particular when
authorities are acting in the 2 types of Funds. It also increases the risk of
errors and requires more intense monitoring.

These
elements will be changed significantly in this proposal:

– The management and control systems will follow the general
requirements set in the CSF Funds and will fully comply with the new
requirements of the New Financial Regulation: the 3 authorities will be
replaced by 2 authorities (Responsible Authority and Audit Authority) whose
roles are clarified in view of providing better assurance.

– Multi-annual programming coupled with annual clearance based on the
payments made by the Responsible Authority will align the eligibility periods
with the annual accounts of the Commission, without increasing the
administrative burden compared to the current system.

– On the spot checks will be carried out as part of the 1st
level controls, i.e. by the Responsible Authority and will support its annual
management declaration of assurance.

– Clarification and simplification of the eligibility rules as well as
their harmonisation with other EU financial support instruments will reduce
mistakes made by beneficiaries who use assistance from different sources. These
eligibility rules will be set at national level, except for some basic
principles, similar to those used for the CSF Funds.

– The use of simplified costs options is encouraged, especially for
small grants.

In centralised
management, the main risks are the following:

– Risk of weak correspondence between the projects received and the
political priorities of DG HOME;

– Risk of poor quality of selected projects and poor technical
implementation of the project, reducing the programmes' impact; due to
inadequate selection procedures, lack of expertise or insufficient monitoring;

– Risk of inefficient or non-economic use of funds awarded, both for
grants (complexity of reimbursing actual eligible costs coupled with limited
possibilities to check eligible costs at the desk) and for procurement
(sometimes limited number of economic providers with the required specialist
knowledge entailing insufficient possibilities to compare price offers);

– Risk relating to the capacity of (especially) smaller organisations
to effectively control expenditure as well as to ensure the transparency of operations carried out.

– Reputational risk for the Commission, if fraud or criminal
activities are discovered; only partial assurance can be drawn from the third
parties' internal control systems due to the rather large number of
heterogeneous contractors and beneficiaries, each operating their own control
system, often rather small in size.

Most of
these risks are expected to be reduced thanks to a better targeting of
proposals and the use of simplified elements included in the New Financial
Regulation.

2.2.2.
Control method(s) envisaged

Shared
management:

At
Member State level, the proposed architecture of
the management and control systems represents an evolution of the set-up in
place in 2007-2013 and preserves most of the functions carried out in the current
period including administrative and on-the spot verifications, audits of
management and control systems and project audits. The sequence of these functions
is nevertheless changed to render on-the spot checks a clear responsibility of
the Responsible Authority as part and parcel of the preparation for the annual
clearance of account exercise.

In order to
reinforce accountability, Responsible Authorities would be accredited by a
national accrediting body in charge of their ongoing supervision. The reduction
of the number of authorities – no more Certifying Authority and reduction of
the number of Funds – is expected to reduce the administrative burden and
enhance the possibility for building stronger administrative capacity, but also
permit a clearer division of responsibilities.

To date no
reliable estimation is available regarding the cost of controls of the shared
management Funds in the Home Affairs area. The only estimation available is
related to the ERDF and the Cohesion Fund where the costs of tasks related to
controls (at national level excluding the costs of the Commission) are
estimated around 2% of the total funding administered in the period 2007-2013.
These costs are related to the following areas of control: 1% is derived from
national coordination and programme preparation, 82% relate to programme
management, 4% to certification and 13% to audit.

The
following proposals will increase the costs of control:

– the creation and functioning of an accrediting body and in general
the change of system;

– the submission of a management declaration accompanying the annual
accounts;

– the on-the-spot checks to be made by the Responsible Authority;

– the need for additional audit activity by the Audit Authorities to
audit the management declaration.

There are
however also proposals which will reduce the costs of control:

– Certifying Authority will cease to exist. Although their functions
will be partially transferred to the Responsible Authority, this will allow the
Member State to save a substantial part of the costs relating to certification
due to better administrative efficiency, reduced need for coordination and
reduction of the scope of audits;

– The controls to be performed by the Audit
Authority will be more oriented towards re-performing (a
sample of) the 1st level administrative and on-the spot controls
carried out by the Responsible Authority. This will speed up the adversarial procedure
and ensure that all necessary controls are carried out before the submission of
the annual accounts;

– The use of simplified costs will reduce administrative costs and
burdens at all levels, for both administrations and beneficiaries;

– Annual closure, and the limitation of the period for conformity
clearance to 36 months will reduce of the period of retention of documents for
control purposes for public administrations and beneficiaries;

– The setting-up of electronic communication flows between the
Commission and the Member States will be mandatory.

To these
must be added the elements of simplification listed under §2.2.1 above that
will also contribute to the reduction of administrative burden for
beneficiaries and thus represent a simultaneous reduction of risks of error and
of administrative burden.

Therefore,
overall it is expected that these proposals will lead to a redistribution of
control costs rather than an increase or a reduction. It is however anticipated
that this redistribution of costs (across functions and due to the
proportionate control arrangements, also across Member States and programmes)
will enable a more effective mitigation of risks and a better and quicker chain
of assurance.

At
Commission level, the cost of management and controls
for shared management is not expected to decrease in the first half of the
programming period. This is firstly the case because the amount and policy
areas concerned by shared management will expand compared to the current
period. Therefore maintaining the same resources will already require gains in
efficiency. In addition, the first years will be characterised by the conjunction
of many important tasks to carry out: closure of programmes 2007-2013 (last
closure reports due by 31 March 2016), policy dialogues and approval
of the multi-annual national programmes 2014-2020, the setting-up of the new
clearance of accounts system. In the second half of the period the potential
resources available will be used to improve the evaluation and monitoring.

Centralised
management

As regards
centralised management, the Commission will continue to apply its current control
system that is composed of the following building blocks: supervision of
operations by the operational directorates, the ex-ante control by the Budget
and Control Unit, the Internal Procurement Committee (JPS/HPC), the ex-post
controls for grants or the audits from the Internal Audit Capacity and/or the
Internal Audit Service. The ex-post control sector applies a "detection
strategy" aimed at detecting a maximum of anomalies in view of recovering
undue payments. Based on this strategy, the audits are carried out on a sample
of projects selected almost entirely on the basis of a risk analysis.

Thanks to
this combination of ex-ante and ex-post controls as well as desk checks and
on-site audits, in the past years the quantifiable average residual error rate
was lower than 2%. Therefore, the internal control system as well as its cost
is deemed adequate in DG HOME to achieve the objective of a low error rate.

However,
within this framework, DG HOME will continue to explore possibilities to
enhance the management and to increase simplification. In particular, all
simplified options made available in the New Financial Regulation will be used
as much as possible as it is expected that they will contribute to the
reduction of administrative burden for beneficiaries and thus represent a
simultaneous reduction of risks of error and of administrative burden for the
Commission.

New
strands

The
proposals foresee new strands for EU funding in the home affairs area, e.g. a
better use of the expertise existing in the EU agencies, the development of the
external dimension and the strengthening of the emergency mechanisms.    
These will require new management and control methods for DG Home.           
The amounts that will be devoted to these new strands are not fixed yet, but
they are unlikely to be significant compared to the overall home affairs
budget. However, it will be very important to set up the internal means and
working arrangements to implement these new tasks as early as possible within
the period, in full respect of the principles of sound financial management.

The
analysis above shows clearly that, despite all simplifications introduced, the
level of human resources required to implement the increased budget of DG HOME
will have to be reinforced.         
The human resources required will be met by staff from the DG that are already
assigned to management of the action and/or have been redeployed within the DG,
together if necessary with any additional allocation which may be granted to
the managing DG under the annual allocation and in the light of budgetary
constraints

2.3.
Measures to prevent fraud and irregularities

Specify existing or
envisaged prevention and protection measures.

In addition
to the application of all regulatory control mechanisms, DG HOME will devise an
anti-fraud strategy in line with the Commission's new anti-fraud strategy (CAFS)
adopted on 24 June 2011 in order to ensure inter alia that its internal
anti-fraud related controls are fully aligned with the CAFS and that its fraud
risk management approach is geared to identify fraud risk areas and adequate
responses. Where necessary, networking groups and adequate IT tools dedicated
to analysing fraud cases related to the Funds will be set up.

As regards
shared management, the CAFS identifies clearly the need for the Commission
proposals for 2014-2020 regulations to request Member States to put in place
fraud prevention measures which are effective and proportionate to the
identified fraud risks. The current proposal includes in article 5 a clear
requirement for the Member States to prevent, detect and correct irregularities
and to report to the Commission. Further details as regards these obligations
will be part of the detailed rules on the functions of the Responsible
Authority as foreseen in Article 24(5)(c).

In
addition, the re-use of funds coming from financial correction based on
commission or Court of Auditors findings has been clearly indicated in Article
41.

3.
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number || Diff. ([18]) || from EFTA[19] countries || from candidate countries[20] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

3 ||   || Diff || NO || NO || NO || NO

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number Heading 3 || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

3 || 18 01 04 aa - Asylum and Migration Fund – Technical assistance || Non Diff || NO || NO || NO || NO

3 || 18 02 aa - Asylum and Migration Fund || Diff || NO || NO || NO || NO

3 || 18 01 04 bb - Internal Security Fund – Police & Crime - Technical assistance || Non Diff || NO || NO || YES || NO

3 || 18 02 bb - Internal Security Fund - Police & Crime || Diff || NO || NO || YES || NO

3 || 18 01 04 cc - Internal Security Fund – Borders & Visas - Technical assistance || Non Diff || NO || NO || YES || NO

3 || 18 02 cc - Internal Security Fund - Borders & Visas || Diff || NO || NO || YES || NO

Contributions from third Countries concern
both components of the Internal Security Fund.

The criteria and the method to calculate
these contributions are to be negotiated between the EU and the Associated
States on the basis of a separate procedure.

Assuming percentages similar to those
currently used under the EBF, the Associated States would be called upon to
contribute with about EUR 210 million to the Borders and Visa
component and with about EUR 50 million to the Police cooperation
component.

3.2.
Estimated impact on expenditure
3.2.1.
Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number 3 || Security and Citizenship

DG HOME || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || After 2020 || TOTAL

Ÿ Operational appropriations (current prices) || || || || || || || || ||

18 02 aa  Asylum and Migration Fund || Commitments || (1) || 517.492 || 527.892 || 538.500 || 549.320 || 560.356 || 571.613 || 586.266 || - || 3,851.439

Payments || (2) || 90.085 || 102.823 || 270.844 || 420.790 || 532.681 || 543.385 || 554.303 || 1,336.528 || 3,851.439

18 02 bb Internal Security Fund – Police and Crime || Commitments || (1a) || 135.076 || 143.047 || 151.283 || 159.791 || 168.578 || 177.653 || 187.022 || || 1,122.450

Payments || (2a) || 15.714 || 43.881 || 71.419 || 111.709 || 147.854 || 156.248 || 164.918 || 410.707 || 1,122.450

18 02 cc  Internal Security Fund - Borders & Visas || Commitments || (1a) || 422.310 || 447.186 || 472.886 || 499.435 || 526.856 || 555.173 || 584.412 || - || 3,508.258

Payments || (2a) || 59.999 || 120.794 || 223.204 || 350.813 || 461.098 || 487.256 || 514.275 || 1,290.818 || 3,508.258

Appropriations of an administrative nature financed from the envelope for specific programmes[21] || || || || || || || || ||

18 01 04 aa             Asylum and Migration Fund || || (3) || 2.500 || 2.500 || 2.500 || 2.500 || 2.500 || 2.500 || 2.500 || || 18.500

18 01 04 bb            Internal Security Fund– Police and Crime || || || 0.800 || 0.800 || 0.800 || 0.800 || 0.800 || 0.800 || 0.800 || || 5.600

18 01 04 cc             Internal Security Fund - Borders & Visas || || || 1.700 || 1.700 || 1.700 || 1.700 || 1.700 || 1.700 || 1.700 || || 11.900

TOTAL appropriations for DG HOME || Commitments || =1+1a +3 || 1.079,878 || 1.123,125 || 1.167,669 || 1.213,546 || 1.260,790 || 1.309,439 || 1.362,700 || || 8.517,147

Payments || =2+2a +3 || 170.799 || 272.497 || 570.467 || 888.313 || 1,146.634 || 1,191.889 || 1,238.496 || 3,038.053 || 8.517,147

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || After 2020 || TOTAL

DG: HOME ||

Ÿ Human resources || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || || 145.887

Ÿ Other administrative expenditure || 0,156 || 0,159 || 0,162 || 0,165 || 0,168 || 0,172 || 0,175 || || 1,157

TOTAL DG HOME || Appropriations || 20.997 || 21.000 || 21.003 || 21.006 || 21.009 || 21.013 || 21.016 || || 147.044

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 20.997 || 21.000 || 21.003 || 21.006 || 21.009 || 21.013 || 21.016 || || 147.044

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || After 2020 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 1,100.875 || 1,144.125 || 1,188.672 || 1,234.552 || 1,281.799 || 1,330.452 || 1,383.716 || || 8,664.191

Payments || 191.796 || 293.497 || 591.470 || 909.319 || 1,167.643 || 1,212.902 || 1,259.512 || 3,038.053 || 8,664.191

3.2.2.
Estimated impact on operational appropriations

–
 ̈  The proposal/initiative does not require the use of operational
appropriations

–
þ  The proposal requires the use of operational appropriations, as
explained below:           
Home Affairs policy is implemented mainly by shared management. While spending
priorities are set at the EU level, actual day-to-day management is vested in
Responsible Authorities at national level. Common output indicators and targets
will be decided together by the Commission and the Responsible Authorities as
part of their national programmes, and approved by the Commission. It is
therefore difficult to indicate targets for outputs until the programmes are
drafted, negotiated and approved in 2013/14.     
As regards centralised management, it is also not possible for DG HOME to
provide an exhaustive list of all outputs to be delivered by means of the
financial intervention under the Funds, their average costs and numbers, as
requested by this section. There are no statistical tools at the moment
allowing the calculation of meaningful average costs on the basis of the
current programmes, and such a precise definition would be contrary to the
principle that the future programme should provide enough flexibility to cater
for adapting to political priorities between 2014-2020. This is particularly
true for emergency assistance and actions in and in relation to third
countries.

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

OUTPUTS

Type of output[22] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[23]... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°1 || || || || || || || || || || || || || || || ||

SPECIFIC OBJECTIVE No 2... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°2 || || || || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || || || || || ||

3.2.3.
Estimated impact on appropriations of an
administrative nature
3.2.3.1.
Summary

–
 ̈  The proposal/initiative does not require the use of administrative
appropriations

–
þ The proposal requires the use of administrative appropriations, as
explained below:

EUR million (to 3
decimal places) HOME

HEADING 5 of the multiannual financial framework[24] || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Human resources HOME || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 20.841 || 145.887

Other administrative expenditure || 0,156 || 0,159 || 0,162 || 0,165 || 0,168 || 0,172 || 0,175 || 1,157

Subtotal HEADING 5 of the multiannual financial framework || 20.997 || 21.000 || 21.003 || 21.006 || 21.009 || 21.013 || 21.016 || 147.044

Outside HEADING 5[25] of the multiannual financial framework [26] || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Human resources HOME || 1.280 || 1.280 || 1.280 || 1.280 || 1.280 || 1.280 || 1.280 || 8.960

Other expenditure of an administrative nature || 3.720 || 3.720 || 3.720 || 3.720 || 3.720 || 3.720 || 3.720 || 26.040

Subtotal outside HEADING 5 of the multiannual financial framework || 5.000 || 5.000 || 5.000 || 5.000 || 5.000 || 5.000 || 5.000 || 35.000

TOTAL || 25.997 || 26.000 || 26.003 || 26.006 || 26.009 || 26.013 || 26.016 || 182.044

3.2.3.2.
 Estimated requirements of human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
þ The proposal/initiative requires the use of human resources, as
explained below: Figures used for the year n are the ones for 2011.

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

Ÿ Establishment plan posts (officials and temporary agents) HOME ||

|| 18 01 01 01 (Headquarters and Commission’s Representation Offices) || 136 || 136 || 136 || 136 || 136 || 136 || 136

|| XX 01 01 02 (Delegations) || 15 || 15 || 15 || 15 || 15 || 15 || 15

|| 18 01 05 01 (Indirect research) || || || || || || ||

|| 10 01 05 01 (Direct research) || || || || || || ||

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[27] ||

|| 18 02 01 (CA, INT, SNE from the "global envelope") || 16 || 16 || 16 || 16 || 16 || 16 || 16

|| XX 02 02 (CA, INT, JED, LA and SNE in the delegations) || 10 || 10 || 10 || 10 || 10 || 10 || 10

|| 18 01 04 aa [28] || - at Headquarters[29] || 10 || 10 || 10 || 10 || 10 || 10 || 10

|| - in delegations || * || * || * || * || * || * || *

|| 18 01 04 bb [30] || - at Headquarters[31] || 4 || 4 || 4 || 4 || 4 || 4 || 4

|| - in delegations || * || * || * || * || * || * || *

|| 18 01 04 cc [32] || - at Headquarters[33] || 6 || 6 || 6 || 6 || 6 || 6 || 6

|| - in delegations || * || * || * || * || * || * || *

|| XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

|| Other 13 01 04 02) || || || || || || ||

|| TOTAL || 197 || 197 || 197 || 197 || 197 || 197 || 197

XX is the
policy area or budget title concerned.

The human resources required will be met
by staff from the DG that are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation and in the light of budgetary constraints. Amounts and imputations
would be adjusted in the event of any externalisation process to an Executive
Agency.

Description of
tasks to be carried out:

Officials and temporary agents at headquarters || The tasks to be carried out comprise all tasks necessary to the management of a financial programme, such as: - providing input to the budgetary procedure;               - conducting the policy dialogue with Member States; - preparing annual work programmes/financing decisions, establishing annual priorities, approving national programmes;      - managing national programmes, calls for proposals and calls for tenders and the subsequent selection procedures;    - communicating with stakeholders (potential/actual beneficiaries, Member States, etc); - drafting guidelines to Member States            - managing projects, operationally and financially;       - performing controls, as described above (ex ante verification, procurement committee, ex post audits, internal audit, clearance of accounts);   - accounting;        - developing and managing grant and national programme management IT tools;  - monitoring and reporting on achievement of objectives, including in annual Activity Reports and Authorising Officer by sub-Delegation reports

External personnel || The tasks are similar to those of officials and temporary agents, except for tasks that cannot be fulfilled by external personnel

Personnel in delegations || To accompany the development of policy implementation in the home affairs area, and in particular its external dimension, EU delegations will need to be equipped with sufficient home affairs expertise. This could be staff from the European Commission and/or the European External Action Service.

To accompany the development
of policy implementation in the home affairs area, and in particular
its external dimension, EU delegations will need to be equipped with sufficient
home affairs expertise. This could be staff from the European Commission and/or
the European External Action Service.

3.2.4.
Compatibility with the current multiannual
financial framework

–
þ  Proposal/initiative is compatible the next multiannual
financial framework.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[34].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.
Third-party contributions

–
The proposal/initiative does not provide for
co-financing by third parties

–
þ The proposal provides that European funding needs to be
co-financed. The exact amount cannot be quantified. The regulation establishes
maximum co-financing rates differentiated in line with the types of actions:

Appropriations in EUR million (to 3 decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total

Specify the co-financing body || MS || MS || MS || MS || MS || MS || MS ||

TOTAL appropriations cofinanced || tbd || tbd || tbd || tbd || tbd || tbd || tbd ||

3.3.
Estimated impact on revenue

–
þ  Proposal/initiative has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

–
 ̈         on own resources

–
 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[35]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

Specify the method for
calculating the impact on revenue.

[1]               COM(2011)500 Final.

[2]               COM(2010)700 final.

[3]               COM(2010)543 final.

[4]               "The EU Budget Review", COM (2010) 700,
19.10.2010.

[5]               Proposal for a Regulation of the European Parliament
and of the Council laying down common provisionson the European Regional
Development Fund, the European Social Fund, the Cohesion Fund, the European
Agricultural Fund for Rural Development and the European Maritime and Fisheries
Fund covered by the Common Strategic Framework and laying down general
provisions on the European Regional Development Fund, the European Social Fund
and the Cohesion Fund and repealing Regulation (EC) No 1083/2006 (COM (2011) 615
final)

[6]               Proposal for a Regulation of the European Parliament
and of the Council on the financing, managing and monitoring of the common
agricultural policy (COM (2011) 628/3)

[7]               See footnote 1

[8]               OJ C , , p. .

[9]               OJ C , , p. .

[10]             Triennial
revision of the Financial Regulation - Commission proposal COM(2010)0260

[11]             Triennial
revision of the Financial Regulation - Commission proposal COM(2010)0260

[12]             OJ L 55, 28.2.2011, p. 13.

[13]             OJ L 83,
27.3.1999, p. 1.

[14]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[15]             As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[16]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[17]             As referred to in Article 185 of the Financial
Regulation.

[18]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations

[19]             EFTA: European Free Trade Association.

[20]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[21]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[22]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[23]             As described in Section 1.4.2. "Specific
objective(s)..."

[24]             Global envelope, based on the 2011 Final Allocation for
Human Resources, including officials and external staff

[25]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[26]             External staff financed from former BA lines, based on
the 2011 Final Allocation for Human Resources, including external staff at
Headquarters and in Delegations

[27]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[28]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[29]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[30]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[31]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[32]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[33]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[34]             See points 19 and 24 of the Interinstitutional
Agreement.

[35]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.