DECISION No 804/2004/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 21 April 2004
establishing a Community action programme to promote activities in the field of the protection
of the Community's financial interests (Hercule programme)
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European
Community, and in particular Article 280(4) thereof,
Having regard to the proposal from the Commission,Having regard to the opinion of the Court of Auditors (
1),
Acting in accordance with the procedure laid down in Article
251 of the Treaty (2),
Whereas:
(1) The Community and the Member States have set
themselves the objective of countering fraud and anyother illegal activities affecting the Community'sfinancial interests. All available means must be deployedto attain that objective, whilst maintaining the currentdistribution and balance of responsibilities between thenational and Community levels.
(2) Activities with the purpose of providing betterinformation, carrying out studies and providing trainingor technical and scientific assistance in the fight againstfraud help significantly to protect the Community's
financial interests.
(3) Activities in this field should therefore be promoted and
bodies engaged in this field should be supported byawarding operating grants. Experience has shown thevalue of providing support at Community level ascompared with national promotional activities.
(4) Support for bodies and activities was provided until2003 by credits entered in lines A03600 and A03010
(Conferences, congresses and meetings in connection
with the activities of the associations of Europeanlawyers for the protection of the financial interests ofthe Community) and in line B5-910 (General measures
to combat fraud) of the general budget of the European
Union.
(5) Article 112 of Council Regulation (EC, Euratom) No1605/2002 of 25 June 2002 on the FinancialRegulation applicable to the general budget of theEuropean Communities (
3) lays down strict conditions
for financial assistance for measures specified in a basicinstrument which have already begun.
(6) It is therefore necessary to adopt that basic instrumentso that, by adopting this Decision establishing astructured, specific and multidisciplinary Communityaction programme for a substantial period, all existingsupport measures are rationalised and supplemented.
(7) The programme should be opened up to all Member
States and neighbouring countries in view of theimportance of providing effective and equivalent
protection for the Community's financial interests
beyond the Member States alone.
(8) The European Parliament, the Council and theCommission, when adopting Regulation (EC, Euratom)
No 1605/2002, undertook to achieve the objective ofensuring that this basic act comes into force as from thefinancial year 2004.
(9) The support measures should also take account of the
particular characteristics of bodies involved inprotecting the Community's financial interests.
(10) This Decision lays down for the entire duration of the
programme a financial framework constituting theprime reference, within the meaning of point 33 of theInterinstitutional Agreement of 6 May 1999 between theEuropean Parliament, the Council and the Commissionon budgetary discipline and improvement of thebudgetary procedure (
4), for the budgetary authority
during the annual budgetary procedure.
(1) OJ C 318, 30.12.2003, p. 5.
(2) Opinion of the European Parliament of 9 March 2004 (not yet
published in the Official Journal) and Council Decision of 5 April
2004.(3) OJ L 248, 16.9.2002, p. 1. Corrigendum in OJ L 25, 30.1.2003,
p. 43.
(4) OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision
2003/429/EC of the European Parliament and of the Council (OJ L
147 , 14.6.2003, p. 25).30.4.2004 L 143/9 Official Journal of the European Union EN
(11) The Commission should present to the European
Parliament and the Council an interim report by theEuropean Anti-Fraud Office (OLAF) on theimplementation of this programme and a final report
on the attainment of the said programme's objectives.
(12) This Decision complies with the principles of
subsidiarity and proportionality.
(13) This Decision is without prejudice to the grants awarded
in the field of protection of the Community's financialinterests on the basis of programmes concerning thelaw-enforcement aspect,
HAVE DECIDED AS FOLLOWS:
Article 1
Objective of the programme
1. This Decision establishes a Community action
programme to promote activities in the field of the protectionof the financial interests of the Community. The programmeshall be known as the ‘Hercule programme'.
2. The purpose of the programme shall be to help protect
the Community's financial interests by promoting activities and
supporting bodies in accordance with the general criteria set
out in the Annex and specified in detail in each annual grantsprogramme. It shall take transnational and multidisciplinaryaspects into account. It shall focus on aligning the substance ofactivities so as to guarantee effective and equivalent levels ofprotection on the basis of mutually agreed best practice whilealso respecting the distinct traditions of each Member State.
Article 2
Access to the programme
1. To qualify for a Community grant for an activity aimed
at protecting the Community's financial interests, grantbeneficiaries must comply with the provisions set out in theAnnex. The activity must conform to the principles underlying
Community activity in the field of the protection of theCommunity's financial interests and take account of the
specific criteria laid down in the related calls for proposals, inaccordance with the priorities set out in the annual grantsprogramme detailing the general criteria set out in the Annex.
2. To qualify for a Community operating grant under the
ongoing work programme of a body which pursues anobjective of general European interest in the field of theprotection of the Community's financial interests, the body
concerned must satisfy the general criteria set out in theAnnex.
3. Applications for operating grants must contain all
necessary information, to enable the Commission to selectbeneficiaries, on:
— the type of body,— the measures to protect the Community's financial
interests,
— the likely cost of implementing the measures,
— all criteria set out in point 4 of the Annex.
Article 3
Participation by countries outside the Community
In addition to beneficiaries and bodies located in the Member
States, participation in the Community action programme shall
be open to those located in:
(a) acceding countries which signed the Accession Treaty on
16 April 2004;
(b) the EFTA/EEA countries, in accordance with the conditions
laid down in the EEA Agreement;
(c) Bulgaria and Romania, in accordance with the conditions
laid down in the Europe Agreements, in their additionalprotocols and in the decisions of the respective Association
Councils;
(d) Turkey, in accordance with Council Decision 2002/179/EC
of 17 December 2001 concerning the conclusion of a
Framework Agreement between the European Community
and the Republic of Turkey on the general principles forthe participation of the Republic of Turkey in Communityprogrammes (
1).
Article 4
Selection of beneficiaries
1. The programme covers one type of awarding procedure
by means of a call for proposals for all beneficiaries.
(1) OJ L 61, 2.3.2002, p. 27.L 143/10 30.4.2004 Official Journal of the European Union EN
2. The bodies to receive grants for activities shall be selected
following a call for proposals, in accordance with the prioritiesset out in the annual grants programme, which details thegeneral criteria referred to in the Annex. Grants awarded foran activity covered by the programme shall meet the generalcriteria set out in the Annex.
3. The bodies to receive operating grants shall be selected
following a call for proposals. The award of an operating granton the basis of a beneficiary's ongoing work programme shallmeet the general criteria set out in the Annex. On the basis ofthe call for proposals, the Commission shall draw up a list ofthe beneficiaries and the amounts approved, in accordancewith Article 116 of Regulation (EC, Euratom) No 1605/2002.
Article 5
Awarding of the grant
1. Financial assistance granted for activities may not cover
all eligible expenditure. The amount of a grant for an activityawarded under the programme may not exceed the followingrates:
(a) 50 % of eligible expenditure for technical support;(b) 80 % of eligible expenditure for training measures,
promoting exchanges of specialised staff and the holding ofseminars and conferences, provided that the beneficiariesare those referred to in point 2, first indent of the Annex;
(c) 90 % of eligible expenditure for the holding of seminars
and conferences, etc., provided that the beneficiaries arethose referred to in point 2, second and third indents ofthe Annex.
2. The amount of an operating grant awarded under this
programme may not exceed 70 % of the eligible expenditure ofthe body for the calendar year for which the grant is awarded.
Pursuant to Article 113(2) of Regulation (EC, Euratom) No
1605/2002, where such operating grants are renewed, theyshall be gradually decreased. If a grant is awarded to a bodywhich received an operating grant the preceding year, thepercentage of Community co-financing represented by the new
grant shall be at least 10 percentage points lower than the
Community co-financing percentage represented by the grant
in the preceding year.
Article 6
Financial provisions
1. This programme shall start on 1 January 2004 and end
on 31 December 2006.
2. The financial framework for the implementation of the
programme for the period 2004 to 2006 shall be EUR11 775 000.
3. The annual appropriations shall be authorised by the
budgetary authority within the limits of the financialperspective.
Article 7
Monitoring and evaluation
The Commission shall present to the European Parliament and
the Council:
(a) by 30 June 2006 at the latest, a report by OLAF on the
implementation of the programme and the appropriatenessof continuing it;
(b) by 31 December 2007 at the latest, a report by OLAF on
the achievement of the objectives of the programme. Thereport, based on the results obtained by the beneficiaries,shall assess, in particular, their effectiveness in achievingthe objectives defined in Article 1 and in the Annex.
Article 8
Entry into force
This Decision shall enter into force on the day following that
of its publication in the Official Journal of the European Union .
Done at Strasbourg, 21 April 2004.
For the European Parliament
The President
P. COXFor the Council
The President
D. ROCHE30.4.2004 L 143/11 Official Journal of the European Union EN
ANNEX
1. ACTIVITIES SUPPORTED
The general objective laid down in Article 1 is to reinforce Community action to prevent fraud affecting the
Community's financial interests and to combat such fraud by promoting actions in this field and the operation of
bodies engaged in it.
Activities of bodies which may help to reinforce and increase the effectiveness of Community action, in
accordance with Article 2, include the following:
— organisation of seminars and conferences,
— promotion of scientific studies and discussions on Community policies in the field of the protection of the
Community's financial interests,
— coordination of activities relating to the protection of the Community's financial interests,— training and awareness,— promoting exchanges of specialised staff,— dissemination of scientific information on Community action,
— development and supply of specific IT tools,
— technical assistance,— promoting and expanding the exchange of data.
2. CARRYING OUT THE ACTIVITIES SUPPORTED
The activities carried out by bodies which may receive a Community grant under the programme come under
the heading of actions aimed at strengthening Community measures to protect financial interests and pursueobjectives of general European interest in this field or an objective which is part of the European Union's policy
in this area.
In accordance with Article 2 of the Decision, the following bodies shall have access to the programme:
— all national or regional administrations of a Member State or country outside the Community, as defined in
Article 3, which promote the strengthening of the Community's action in the field of the protection of the
Community's financial interests,
— all research and education institutes that have had legal personality for at least one year and are established
and operating in a Member State or in a country outside the Community, as defined in Article 3, and that
promote the strengthening of the Community's action in protecting its financial interests,
— all non-profit-making bodies that have had legal personality for at least one year and are legally established
in a Member State or country outside the Community, as defined in Article 3, and that promote the
strengthening of Community action to protect the Community's financial interests.
An annual operating grant may be awarded to support implementation of such a body's ongoing programme of
work.
3. SELECTION OF BENEFICIARIES
Bodies entitled to receive a grant for the activity or an operating grant under point 2 will be selected on the
basis of calls for proposals.L 143/12 30.4.2004 Official Journal of the European Union EN
4. CHARACTERISTICS OF GRANT APPLICATIONS ON WHICH ASSESSMENT IS BASED
Applications for grants for activities or, where appropriate, operating grants are assessed in the light of:
— consistency of the proposed activity in relation to the objectives of the programme,
— complementarity of the proposed activity with other assisted activities,
— feasibility of the proposed activity, i.e. the real possibility that it can be carried out using the proposed
means,
— the cost-benefit ratio,
— the added utility of the proposed activity,— size of public targeted by the proposed activity,
— transnational and multidisciplinary aspects of the activity,
— geographic scope of the proposed measure.
5. ELIGIBLE EXPENDITURE
Pursuant to point 2, only the expenditure required for the successful implementation of the activity is taken into
account when calculating the grant.
Also eligible is expenditure in connection with the participation of representatives of the Balkan countries
forming part of the stabilisation and association process for countries of south eastern Europe (
1) and certain
countries of the Commonwealth of Independent States (2).
6. CHECKS AND AUDITS
6.1. The beneficiary of an operating grant must keep available for the Commission all the supporting documents, in
particular the audited financial statement, regarding expenditure incurred during the grant year for a period of
five years following the last payment. The beneficiary of a grant must ensure that, where applicable, supporting
documents in the possession of partners or members are made available to the Commission.
6.2. The Commission may have an audit of the use made of the grant carried out either directly by its own staff or
by any other qualified outside body of its choice. Such audits may be carried out throughout the lifetime of theagreement and for a period of five years from the date of payment of the balance. Where appropriate, the audit
findings may lead to recovery decisions by the Commission.
6.3. Commission staff and outside personnel authorised by the Commission have appropriate right of access to sites
and premises where the action is carried out and to all the information, including information in electronicformat, needed in order to conduct such audits.
6.4. The Court of Auditors and OLAF must enjoy the same rights, especially of access, as the persons referred to in
point 6.3.
6.5. Furthermore, in order to protect the European Community's financial interests against fraud and other
irregularities, the Commission carries out on-the-spot checks and inspections under this programme inaccordance with Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spotchecks and inspections carried out by the Commission in order to protect the European Communities' financial
interests against fraud and other irregularities (
3). Where necessary, investigations must be conducted by the
European Anti-Fraud Office (OLAF) and governed by Regulation (EC) No 1073/1999 of the European Parliamentand of the Council (
4).
(1) Former Yugoslav Republic of Macedonia, Albania, Serbia and Montenegro, Bosnia-Herzegovina and Croatia.
(2) Belarus, Moldavia, Russian Federation and Ukraine.
(3) OJ L 292, 15.11.1996, p. 2.
(4) OJ L 136, 31.5.1999, p. 1.30.4.2004 L 143/13 Official Journal of the European Union EN
7. MANAGEMENT OF THE PROGRAMME
On the basis of a cost-effectiveness analysis, the Commission may employ experts and make use of any other
form of technical and administrative assistance not involving public authority tasks outsourced under ad hocservice contracts. It may also finance studies and organise meetings of experts to facilitate the implementation ofthe programme, and take information, publication and dissemination measures directly linked to fulfilling the
objectives of the programme.L 143/14 30.4.2004 Official Journal of the European Union EN