2004/904/EC: Council Decision of 2 December 2004 establishing the European Refugee Fund for the period 2005 to 2010
Date: 2004-12-02
Institutions: Council of the European Union
Subjects: admission of aliens, aid to refugees, fund (EU), integration of migrants

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COUNCIL DECISION

of 2 December 2004

establishing the European Refugee Fund for the period 2005 to 2010

(2004/904/EC)

THE COUNCIL OF THE EUROPEAN UNION,

(4)

Having regard to the Treaty
Community, and in particular Article 63(2)(b) thereof,

establishing the European

Having regard to the proposal from the Commission,

(5)

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the European Economic and
Social Committee (2),

After consulting the Committee of the Regions,

Whereas:

(1)

(2)

(3)

including a Common
A common policy on asylum,
is a constituent part of the
European Asylum System,
European Union’s objective of progressively establishing
an area of freedom, security and justice open to those
who,
seek
circumstances,
by
protection in the European Union.

legitimately

forced

Implementation of this policy should be based on soli-
darity between Member States and requires the existence
of mechanisms to promote a balance of effort between
Member States in receiving and bearing the consequences
of receiving refugees and displaced persons. To that end,
a European Refugee Fund was established for the period
2000 to 2004 by Decision 2000/596/EC (3).

It is necessary to establish a European Refugee Fund (the
Fund) for the period 2005 to 2010 to ensure continued
solidarity between Member States in the light of recently
adopted Community legislation in the field of asylum,
taking account of the experience acquired when imple-
menting the first phase of the Fund for the period 2000
to 2004.

(1) Opinion delivered on 20 April 2004 (not yet published in the

Official Journal).

(2) OJ C 241, 28.9.2004, p. 27.
(3) OJ L 252, 6.10.2000, p. 12.

(6)

(7)

(8)

(9)

to grant appropriate reception conditions

It is necessary to support the efforts made by Member
States
to
refugees and displaced persons and to apply fair and
effective asylum procedures so as to protect the rights
of persons requiring international protection.

the
The integration of
into the society of
refugees
country in which they are established is one of
the
objectives of the Geneva Convention of 28 July 1951
relating to the Status of Refugees, as supplemented by
the New York Protocol of 31 January 1967. Such
persons must be enabled to share the values set out in
the Charter of Fundamental Rights of
the European
Union. To this end, there should be support for action
by Member States to promote their social, economic and
it contributes
cultural
to
economic and social cohesion,
the maintenance and
strengthening of which is one of the Community's funda-
mental objectives provided for by Articles 2 and 3(1)(k)
of the Treaty.

integration in so far as

It is in the interests of both Member States and the
persons concerned that refugees and displaced persons
who are allowed to stay in the territory of the Member
States should be given the opportunity to provide for
themselves by working in accordance with the provisions
of the related Community instruments.

Since measures supported by the Structural Funds and
other Community measures in the field of education
and vocational training are not in themselves sufficient
to promote such integration, support should be given for
special measures to enable refugees and displaced persons
to benefit
fully from the programmes which are
organised.

support

is needed to create or

Practical
improve
conditions enabling refugees and displaced persons to
take an informed decision to leave the territory of the
Member States and return home, should they so wish.

Action involving bodies of two or more Member States
and action of Community interest in this field should be
eligible for support by the Fund, and exchanges between
Member States should be encouraged with a view to
identifying and promoting the most effective practices.

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(10) A financial reserve should be established for the imple-
mentation of emergency measures to provide temporary
protection in the event of a mass influx of refugees
pursuant to Council Directive 2001/55/EC of 20 July
for giving temporary
2001 on minimum standards
protection in the event of a mass influx of displaced
persons and on measures promoting a balance of
efforts between Member States
such
in receiving
persons and bearing the consequences thereof (1).

(11) With a view to establishing financial solidarity in an
effective and proportionate way and taking account of
the experience acquired when the Fund was implemented
between 2000 and 2004, the Commission's responsi-
bilities and those of the Member States for the imple-
mentation and management of the Fund should be deli-
should designate appropriate
neated. Member States
national authorities
the duties of
that purpose,
for
which should be set out.

(12)

(13)

(14)

(15)

The support provided by the Fund will be more efficient
and better targeted if co-financing of eligible actions is
based on two multiannual programmes and on an
annual work programme drawn up by each Member
State taking into account its situation and needs.

is fair to allocate resources proportionately to the
It
burden on each Member State by reason of its efforts
in receiving refugees and displaced persons,
including
refugees enjoying international protection within the
framework of national programmes.

The measures necessary for the implementation of this
Decision should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures for
implementing powers
the exercise of
conferred on the Commission (2).

the
Efficient monitoring is one way of ensuring that
actions
effective. The
conditions governing monitoring should be determined.

supported by the

Fund are

(16) Without prejudice to the Commission’s responsibilities
for
cooperation between Member
States and the Commission should be established in
that regard.

financial

control,

(17) Member States should provide sufficient guarantees as
regards arrangements for implementation and quality of

(1) OJ L 212, 7.8.2001, p. 12.
(2) OJ L 184, 17.7.1999, p. 23.

for
execution. The responsibility of Member States
pursuing and correcting irregularities and infringements,
and the responsibility of the Commission where Member
States do not comply with their obligations, should be
specified.

(18)

The effectiveness and impact of actions supported by the
Fund also depend on their evaluation. The responsibilities
of Member States and the Commission in this regard,
and arrangements to ensure the reliability of evaluation,
should be clearly defined.

(19) Actions should be evaluated with a view to a mid-term
review and assessment of their impact, and the evaluation
process should be incorporated into project-monitoring
arrangements.

(20)

(21)

(22)

(23)

Since the objective of this Decision, namely to promote a
balance of effort between Member States in receiving
refugees and displaced persons, cannot be sufficiently
achieved by the Member States and can therefore be
better achieved at Community level,
the Community
may adopt measures in accordance with the principle
of subsidiarity as set out in Article 5 of the Treaty. In
accordance with the principle of proportionality, as set
out in that Article, this Decision does not go beyond
what is necessary to achieve this objective.

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
the United
establishing the European Community,
Kingdom has notified its wish to take part
in the
adoption and application of this Decision.

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,
Ireland has
notified its wish to take part in the adoption and appli-
cation of this Decision.

In accordance with Articles 1 and 2 of the Protocol on
the position of Denmark, annexed to the Treaty on
European Union and to the Treaty establishing the
European Community, Denmark is not taking part in
the adoption of this Decision and is not bound by it
nor subject to its application,

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HAS ADOPTED THIS DECISION:

4. any third-country nationals or stateless persons enjoying
temporary protection within the meaning of Directive
2001/55/EC.

CHAPTER I

OBJECTIVES AND TASKS

Article 1

Establishment and objectives

1.
This Decision establishes the European Refugee Fund (the
Fund) for the period from 1 January 2005 to 31 December
2010.

The purpose of

2.
the Fund shall be to support and
encourage the efforts made by the Member States in receiving
and bearing the
receiving refugees and
displaced persons, taking account of Community legislation in
these matters by co-financing the actions provided for by this
Decision.

consequences of

Article 2

Financial provisions

1.
The financial reference amount for the implementation of
the Fund from 1 January 2005 to 31 December 2006 shall be
EUR 114 million.

Article 4

Actions

The Fund shall support actions in Member States relating

1.
to one or more of the following:

(a) reception conditions and asylum procedures;

(b) integration of persons referred to in Article 3 whose stay in

the Member State is of a lasting and stable nature;

(c) voluntary return of persons

referred to in Article 3,
provided they have not acquired a new nationality and
have not left the territory of the Member State.

2.
Actions provided for by paragraph 1 shall, in particular,
promote the implementation of the provisions of the relevant
existing and future Community legislation in the field of the
common European asylum system.

The

annual

Fund shall be
2.
authorised by the budgetary authority within the limits of the
financial perspectives.

appropriations

the

for

Article 3

Groups targeted by the actions

the purposes of

For
comprise the following categories:

this Decision the target groups shall

1. any third-country nationals or stateless persons having the
status defined by the Geneva Convention of 28 July 1951
relating to the Status of Refugees and the 1967 protocol
thereto and who are permitted to reside as refugees in one
of the Member States;

2. any third-country nationals or stateless persons enjoying a
form of subsidiary protection within the meaning of Council
Directive 2004/83/EC of 29 April 2004 on minimum
standards for the qualification and status of third country
nationals or stateless persons as refugees or as persons
who otherwise need international protection and the
content of the protection granted (1);

Actions shall

take account of

the specific situation of
3.
vulnerable persons such as minors, unaccompanied minors,
disabled people,
single
parents with minor children, and persons who have been
subjected to torture, rape or other serious forms of psycho-
logical, physical or sexual violence.

elderly people, pregnant women,

Article 5

Eligible national actions relating to reception Conditions
and asylum procedures

Actions relating to reception conditions and asylum procedures,
and in particular the following, shall be eligible for support
from the Fund:

(a) accommodation infrastructure or services;

(b) provision of material aid and medical or psychological care;

(c) social assistance,
formalities;

information or help with administrative

3. any third-country nationals or stateless persons who have
applied for one of the forms of protection described in
points 1 and 2;

(d) legal aid and language assistance;

(1) OJ L 304, 30.9.2004, p. 12.

(e) education, language training and other initiatives which are

consistent with the status of the person;

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(f)

the provision of support services such as translation and
training to help improve reception conditions and the effi-
ciency and quality of asylum procedures;

(a)

information and advisory services concerning voluntary
return initiatives or programmes;

(g)

information for local communities who will be interacting
with those being received in the host country.

(b) information on the situation in the country or region of

origin or former habitual residence;

Article 6

(c) general or vocational training and help with reintegration;

Eligible national actions relating to integration

Actions relating to integration into Member States' society of
persons referred to in Article 4(1)(b) and members of their
family, and in particular the following, shall be eligible for
support from the Fund:

(a) advice and assistance in areas such as housing, means of
integration into the labour market, medical,

subsistence,
psychological and social care;

(b) actions enabling recipients to adapt to the society of the
Member State in socio-cultural
terms, and to share the
values enshrined in the Charter of Fundamental Rights of
the European Union;

(c) actions to promote durable and sustainable participation in

civil and cultural life;

(d) action by communities of origin resident in the European
the persons

Union to facilitate the voluntary return of
referred to in this Decision;

(e) actions which facilitate the organisation and implementation

of national voluntary return programmes.

Article 8

Community actions

1.
In addition to the projects provided for by Articles 5, 6
and 7, at the Commission’s initiative, up to 7 % of the Fund’s
available resources may be used to finance transnational actions
or actions of interest to the Community as a whole concerning
asylum policy and measures applicable to refugees and displaced
persons as referred to in paragraph 2.

(d) measures focusing on education, vocational training, recog-

nition of qualifications and diplomas;

Eligible Community

2.
following areas:

actions

essentially

concern the

(e) actions designed to promote self-empowerment and to

enable these persons to provide for themselves;

(a)

the furthering of Community cooperation in implementing
Community law and good practices;

(f) actions that promote meaningful contact and constructive
dialogue between these persons and the receiving society,
including actions which promote the involvement of key
local authorities,
the general public,
partners
refugee associations, voluntary groups, social partners and
the broader civil society;

such as

(g) measures to support

the acquisition of skills by these

persons, including language training;

(h) actions that promote both equality of access and equality of
outcomes in relation to these persons' dealings with public
institutions.

Article 7

(b) support

for

the setting-up of

transnational cooperation
networks and pilot projects based on transnational part-
nerships between bodies located in two or more Member
States designed to stimulate innovation, facilitate exchanges
of experience and good practice and improve the quality of
asylum policy;

(c) support for transnational awareness-raising campaigns on
European asylum policy and the situation and circumstances
of the persons referred to in Article 3;

(d) support

for dissemination and exchange of

information,
including the use of IT and communications technology,
on best practices and all other aspects of the Fund.

Eligible national actions relating to voluntary return

Actions relating to voluntary return, and in particular the
following, shall be eligible for support from the Fund:

3.
The annual work programme laying down the priorities
for Community actions shall be adopted in accordance with the
procedure referred to in Article 11(2).

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Article 9

Emergency measures

1.
In the event of temporary protection mechanisms within
the meaning of Directive 2001/55/EC being implemented, the
Fund shall also finance measures to help the Member States,
such measures being separate from, and in addition to, the
actions referred to in Article 4.

Eligible emergency measures shall concern the following

2.
types of action:

(a) reception and accommodation;

(b) provision of means of subsistence,

including food and

clothing;

(c) medical, psychological or other assistance;

(d) staff and administration costs linked to the reception of

persons concerned and implementation of measures;

(e)

logistical and transport costs.

CHAPTER II

IMPLEMENTATION AND MANAGEMENT PROVISIONS

Article 10

Implementation

(a) adopt guidelines, in accordance with the procedure referred
to in Article 11(2), for the priorities of the multiannual
programmes provided for by Article 15 and shall notify
the Member States of the indicative financial allocations
for the Fund;

of

the

European Union,

(b) ensure, as part of its responsibility for executing the general
appropriate
that
budget
systems are in place in the
management and control
Member States and that they operate smoothly, so as to
guarantee that Community funds are used properly and
effectively. These measures shall
include documentary and
on-the-spot checks carried out on a prior basis on imple-
accounting
control
mentation
procedures and the procurement and grant allocation
procedures followed by the responsible authorities. The
Commission shall review procedures or systems whenever
substantial changes are made;

procedures,

systems,

(c)

implement the Community actions provided for by Article
8.

2. Member States shall:

(a) be responsible for implementing national actions supported

by the Fund;

(b) take the measures needed for the effective operation of the
Fund at national level, and involving all those concerned by
asylum policy in accordance with national practice;

The Commission shall be responsible for implementing this
Decision and shall adopt such implementing rules as may be
necessary.

(c) appoint a responsible authority to manage national projects
supported by the Fund in accordance with the applicable
Community legislation and the principle of sound financial
management;

Article 11

Committee procedure

1.

The Commission shall be assisted by a Committee.

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at three months.

3. Where reference is made to this paragraph, Articles 3 and
7 of Decision 1999/468/EC shall apply.

4.

The Committee shall adopt its rules of procedure.

(d) be responsible in the first instance for financial control of
actions and ensure that management systems and checks are
implemented in such a way as to guarantee that Community
funds are used properly and effectively. They shall provide
the Commission with a description of these systems;

(e) certify that the declarations of expenditure submitted to the
Commission are accurate and shall ensure that they result
from accounting systems based on verifiable supporting
documents;

(f) cooperate with the Commission for the collection of the
statistics needed for the implementation of Article 17.

Article 12

In cooperation with the Member States, the Commission

3.
shall:

Respective responsibilities of

the Commission and the

Member States

1.

The Commission shall:

(a) assume responsibility for disseminating the results of actions
undertaken during the 2000 to 2004 phase of the Fund and
of those to be implemented in the 2005 to 2010 phase;

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(b) ensure that appropriate information, publicity and follow-up

are provided for actions supported by the Fund;

(f)

information and advisory activities, as well as dissemination
of results;

(c) ensure that actions are cohesive with, and complementary
instruments and

to, other relevant Community policies,
initiatives.

(g) monitoring and evaluation;

Article 13

Responsible authorities

1.
Each Member State shall appoint a responsible authority
which shall handle all communication with the Commission.
The authority shall be a functional body of the Member State
or a national public body. The responsible authority may
delegate some or all of its implementation tasks to another
public administration or a private-law body governed by the
the Member State and which has a public-service
law of
mission. Where the Member State designates a responsible
authority other than itself, it shall lay down all the arrangements
governing its relations with the said authority and the latter's
relations with the Commission.

2.
The body designated as the responsible authority or any
delegated authority shall meet the following minimum condi-
tions:

(a)

it shall have legal personality, except where it is a functional
body of the Member State;

(b) it shall have a financial and management capacity commen-
surate with the volume of Community funds which it will
be called upon to manage and allowing it to carry out its
tasks correctly, in accordance with the rules governing the
management of Community funds.

The responsible authorities' tasks shall include the follo-

3.
wing:

(a) consulting with appropriate partners to establish the multi-

annual programme;

(b) organising and advertising calls for tenders and proposals;

(c) organising selection and award procedures for co-financing
by the Fund in accordance with the principles of trans-
parency and equal
treatment, and taking all necessary
measures to avoid any possible conflict of interests;

(d) ensuring consistency and complementarity between co-
relevant

financing under
national and Community financial instruments;

Fund and from other

the

(h) cooperation and liaison with the Commission and the

responsible authorities in the other Member States.

4. Member States shall provide the responsible authority or
any delegated authority with adequate resources so that it can
continue to carry out its tasks properly throughout the period
of implementation of actions financed by the Fund. The imple-
mentation activities may be financed under the technical and
administrative assistance arrangements referred to in Article 18.

Acting in accordance with the procedure referred to in
5.
the Commission shall adopt rules concerning
Article 11(2),
systems,
States' management
the Member
including rules for the administrative and financial management
of national projects co-financed by the Fund.

control

and

Article 14

Selection criteria

The responsible authority shall select projects on the basis of
the following criteria:

(a)

the situation and requirements in the Member State;

(b) the cost-effectiveness of the expenditure,

in view of the

number of persons concerned by the project;

(c)

the experience, expertise, reliability and financial contri-
bution of the organisation applying for funding and any
partner organisation;

(d) the extent to which the projects complement other action
funded by the general budget of the European Union or as
part of national programmes.

CHAPTER III

PROGRAMMES

Article 15

Multiannual programmes

(e) administrative, contractual and financial management of

actions;

1.
Actions in the Member States shall be implemented on the
basis of two multiannual programme phases, each lasting three
years (2005 to 2007 and 2008 to 2010).

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For each programme phase, on the basis of guidelines for
2.
the priorities of the multiannual programmes and indicative
financial
the Commission and
provided for by Article 12(1)(a), each Member State shall
propose a draft multiannual programme which includes the
following elements:

allocations provided

by

(a) a description of the current situation in the Member State as
regards arrangements for reception, asylum procedures, inte-
gration and voluntary return of the persons covered by
Article 3;

(b) an analysis of requirements in the Member State in question
in terms of reception, asylum procedures,
integration and
voluntary return and an indication of operational objectives
designed to meet
these requirements during the period
covered by the programme;

(c) presentation of an appropriate strategy to achieve these
objectives and the priority attached to their attainment,
taking
the partners
provided for in Article 13(3)(a), and a brief description of
the actions envisaged to implement the priorities;

consultation of

account of

the

(d) an indication of whether this strategy is compatible with
other regional, national and Community instruments;

(e) an indicative financing plan which sets out, for each priority
and each year, the Fund's proposed financial contribution
and the overall amount of public or private co-financing.

shall

3. Member States
their draft multiannual
programme no more than four months after the Commission
has provided the guidelines and indicative financial allocations
for the period in question.

submit

4.
Acting in accordance with the procedure referred to in
Article 11(3), the Commission shall approve the draft multi-
annual programmes within three months of their receipt,
in
the light of the recommendations in the guidelines adopted
pursuant to Article 12(1)(a).

Article 16

Annual programmes

The multiannual

the
1.
Commission shall be implemented by means of annual work
programmes.

programmes

approved

by

2.
No later than 1 July each year, the Commission shall
provide Member States with an estimate of the amounts to
be allocated to them for the following year from the total
appropriations
budgetary
under
procedure, calculated as provided by Article 17.

allocated

annual

the

No later than 1 November each year, Member States shall
3.
submit to the Commission a draft annual programme for the
following year, drawn up in accordance with the approved
multiannual programme and including:

(a)

the general rules for selection of projects to be financed
under
from the
modalities laid down in the multiannual programme;

the annual programme if

these differ

(b) a description of

the tasks

authority when implementing the

to be carried out by the
annual

responsible
programme;

(c)

the proposed financial breakdown of
the Fund's contri-
bution between the programme's various actions and an
indication of the amount requested to cover technical and
administrative assistance under Article 18 for the purpose of
implementing the annual programme.

4. When examining the Member State’s proposal,
the
the
Commission shall
the final amount of
take account of
appropriations allocated to the Fund under
the budgetary
procedure and shall adopt the decision on co-financing from
the Fund no later than 1 March of the year in question. The
decision shall
indicate the amount allocated to the Member
State and the period for which the expenditure is eligible.

5.
In the event of significant changes affecting the implemen-
tation of the annual programme which imply a transfer of funds
between actions exceeding 10 % of the total amount allocated
to a Member State for the year in question, the Member State
shall submit for the Commission’s approval a revised annual
programme at
the
the latest at
progress report referred to in Article 23(3).

the time of submission of

Article 17

Annual breakdown of resources for actions in the Member
States provided for by Articles 5, 6 and 7

1.
Each Member State shall receive a fixed amount of EUR
300 000 from the Fund's annual allocation. This amount shall
be fixed at EUR 500 000 per annum for 2005, 2006 and 2007
in conformity with new financial perspectives for the states
which acceded to the European Union on 1 May 2004.

The remainder of the available annual resources shall be

2.
broken down between the Member States as follows:

(a) 30 % in proportion to the number of persons admitted in
one of the categories referred to in Article 3(1) and (2) over
the previous three years;

(b) 70 % in proportion to the number of persons referred to in
Article 3(3) and (4) registered over the previous three years.

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The reference figures shall be the latest statistics produced
the European Communities in
collection and

3.
by the Statistical Office of
accordance with Community law on the
analysis of asylum data.

shall not be eligible for funding from other sources covered by
the general budget of the European Union.

Article 18

Fund appropriations shall be complementary to public or
to the

3.
equivalent expenditure allocated by Member States
measures covered by this Decision.

Technical and administrative assistance

Part of the annual co-financing allocated to a Member State may
be set aside to cover expenditure on technical and adminis-
trative assistance for preparation, monitoring and evaluation
of actions.

The annual amount set aside for technical and administrative
assistance may not exceed 7 % of the total annual co-financing
allocated to a Member State, plus EUR 30 000.

Article 19

Special provisions concerning emergency measures

1. Member States shall provide the Commission with a
statement of requirements and an implementation plan for
including
the emergency measures provided for by Article 9,
a description of
and the bodies
responsible for implementing them.

the planned measures

2.
Financial assistance from the Fund for the emergency
measures provided for by Article 9 shall be limited to a
period of six months and shall not exceed 80 % of the cost
of each measure.

Available

resources

3.
shall be distributed among the
Member States on the basis of the number of persons benefiting
from temporary protection in each Member State as referred to
in Article 9(1).

4.

Articles 20(1) and (2), 21 and 23 to 26 shall apply.

CHAPTER IV

FINANCIAL MANAGEMENT AND SUPERVISION

Article 20

Financing structure

The Fund's financial participation shall take the form of

1.
non-refundable grants.

The Community contribution to supported projects shall

4.
not exceed:

(a) as regards actions implemented in the Member States under
Articles 5, 6 and 7, 50 % of the total cost of a specific
action. This may be increased to 60 % for particularly inno-
vative actions, such as actions carried out by transnational
partnerships or actions that involve the active participation
of persons referred to in Article 3 or organisations estab-
lished by these target groups, and shall be increased to 75 %
in the Member States covered by the Cohesion Fund;

(b) as regards calls for proposals within the framework of
the total

Community actions under Article 8, 80 % of
cost of a specific action.

5.
As a general rule, Community financial aid granted for
actions supported by the Fund shall be given for a period of
no more than three years, subject to periodic progress reports.

Article 21

Eligibility

Expenditure shall correspond to the payments effected by
It shall be justified by receipted

1.
the final grant recipients.
invoices or accounting documents of equivalent status.

2.
Expenditure may be considered eligible for support from
the Fund only if it is actually paid no earlier than 1 January of
the year referred to in the Commission decision on co-financing
referred to in Article 16(4).

3.
The Commission, acting in accordance with the procedure
referred to in Article 11(3), shall adopt the rules governing
eligibility of expenditure within the framework of actions imple-
mented in the Member States under Articles 5, 6 and 7 and co-
financed by the Fund.

Article 22

Commitments

2.
Actions supported by the Fund shall be co-financed by
public or private sources, shall be of a non-profit nature and

Community budgetary commitments shall be made annually on
the basis of the Commission decision on co-financing referred
to in Article 16(4).

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Article 23

Payments

1.
The contribution from the Fund shall be paid by the
Commission to the responsible authority in accordance with
budgetary commitments.

A first pre-financing payment representing 50 % of the
2.
amount allocated in the Commission's annual decision on co-
financing by the Fund shall be made to the Member State
within 60 days following the adoption of
the co-financing
decision.

report on implementation of

A second pre-financing payment shall be made no more
3.
the Commission has approved a
than three months after
progress
annual work
the
programme and a declaration of expenditure accounting for at
least 70 % of the amount of the initial payment. The amount of
the second pre-financing payment made by the Commission
shall not exceed 50 % of the total amount allocated by the
co-financing decision or,
the
amount of Community funds actually committed by the
Member
annual
selected projects
programme minus the first pre-financing payment.

the balance of

in any event,

under

State

the

for

Article 25

Audit of accounts and financial corrections by the Member
States

1. Without prejudice to the Commission’s responsibilities for
implementing the general budget of the European Union, the
Member States shall be take responsibility in the first instance
for financial control of actions. To that end, the measures they
take shall include:

(a) organising, on the basis of an appropriate sample, checks on
actions covering at least 10 % of the total eligible expen-
diture for each annual implementing programme and on a
representative sample of approved actions. Member States
shall ensure an appropriate separation between checks and
implementation or payment procedures concerning actions;

(b) preventing, detecting and correcting irregularities, notifying
the Commission of them in accordance with the rules and
the progress of
keeping the Commission informed of
administrative and judicial proceedings;

(c) cooperating with
Community funds
principle of sound financial management.

that
the Commission
are used in accordance with the

ensure

to

implementation report

Payment of the balance shall be made no more than three
4.
the Commission has approved the annual
months after
programme's
final
final
declaration of expenditure provided for by Articles 24(3) and
28(2);
failing that, a request for reimbursement of amounts
released under the first or second payments in excess of the
final expenditure approved for the Fund shall be issued within
that deadline.

and the

Article 24

Declarations of expenditure

For all expenditure which it declares to the Commission,
1.
the
the responsible authority shall provide assurance that
national
in
are managed
accordance with the Community regulations applicable and
that the funds are used in accordance with the principle of
sound financial management.

implementation

programmes

Declarations of expenditure shall be certified by an indi-
any

2.
vidual or department operationally
authorising department of the responsible authority.

independent of

3. Within nine months of the deadline laid down in the co-
financing decision whereby expenditure must be effected, the
responsible authority shall forward a final declaration of expen-
diture to the Commission. Failing that, the Commission shall
automatically terminate the annual programme and release the
relevant appropriations.

the

financial

shall make

2. Member States
corrections
required where an irregularity is ascertained, having regard to
whether it is an individual or a systemic case. The corrections
made by the Member State shall consist in cancelling all or part
of the Community contribution, and, where the amount is not
repaid in the time allowed by the relevant Member State, default
interest shall be due at the rate provided for by Article 26(4).

Acting in accordance with the procedure referred to in
3.
the Commission shall adopt
the rules and
Article 11(3),
procedures for
financial corrections made by the Member
States in connection with actions implemented in the Member
States under Articles 5, 6 and 7 and co-financed by the Fund.

Article 26

Audit of accounts

and financial corrections by the
Commission

1. Without prejudice to the powers of the Court of Auditors
or the checks carried out by the Member States in accordance
with national
laws, regulations and administrative provisions,
Commission officials or servants may carry out on-the-spot
including sample checks, on the operations financed
checks,
by the Fund and on management and control systems with a
minimum of three working days' notice. The Commission shall
give notice to the Member State concerned with a view to
obtaining all the assistance necessary. Officials or servants of
the Member State concerned may take part in such checks.

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The Commission may require the Member State concerned to
carry out an on-the-spot check to verify the correctness of one
or more transactions. Commission officials or servants may take
part in such checks.

with actions implemented in the Member States under Articles
5, 6 and 7 and co-financed by the Fund.

If,

after

completing the necessary verifications,

2.
the
Commission concludes that a Member State is not complying
with its obligations under Article 25, it shall suspend the pre-
financing or final payment relating to co-financing from the
Fund for the relevant annual programmes in cases where:

CHAPTER V

MONITORING, EVALUATION AND REPORTS

Article 27

Monitoring and evaluation

(a) a Member State is not implementing the actions as agreed

in the co-financing decision; or

The Commission shall carry out regular monitoring on the

1.
Fund in cooperation with the Member States.

(b) all or part of an action justifies neither part nor the whole

of the co-financing from the Fund; or

(c)

there are serious deficiencies in management and control
systems that could give rise to systemic irregularities.

In those cases, the Commission shall, stating its reasons, request
the Member State to submit its comments and, where appro-
priate, to carry out any corrections within a specified period of
time.

At the end of the period set by the Commission, the
3.
Commission may, if no agreement has been reached and the
Member State has not made the corrections, and taking account
of any comments made by the Member State, decide within
three months to:

(a) reduce the pre-financing or final payments; or

(b) make the financial corrections required by cancelling all or
the Fund to the actions in

the contribution of

part of
question.

The Fund shall be evaluated regularly by the Commission
2.
in partnership with the Member States to assess the relevance,
effectiveness and impact of actions in the light of the objectives
referred to in Article 1. The Commission shall also look at
complementarity between the actions implemented under the
relevant Community
Fund and those pursued under other
policies, instruments and initiatives.

Article 28

Report

In each Member State the responsible authority shall take
to ensure project monitoring and

1.
the necessary measures
evaluation.

responsible

To that end, the agreements and contracts it concludes with the
organisations
action implementation shall
include clauses laying down an obligation to submit regular
detailed progress
these
implementation report on the
actions and a detailed final
extent to which stated objectives have been achieved.

reports on the implementation of

for

In the absence of a decision pursuant to either (a) or (b), the
payments shall immediately cease to be suspended.

4.
Any sum received unduly or to be recovered shall be
repaid to the Commission. If the amount owed has not been
repaid by the deadline set by the Commission,
it shall bear
interest at the rate applied by the European Central Bank to
its principal refinancing operations in euros, plus three and a
half points. The reference rate to which the increase applies
shall be the rate in force on the first day of the month of
the final date for payment, as published in the C series of the
Official Journal of the European Union.

No more than nine months after the eligibility deadline
2.
for expenditure laid down in the co-financing decision for each
annual programme, the responsible authority shall submit a
final
implementation report and a final declaration of expen-
diture to the Commission as provided for by Article 24(3).

3. Member States shall submit to the Commission:

(a) no later than 31 December 2006, an evaluation report on
the implementation of actions co-financed by the Fund;

5.
The Commission, acting in accordance with the procedure
referred to in Article 11(3), shall adopt rules and procedures for
financial corrections made by the Commission in connection

(b) no later

than 30 June 2009 and 30 June 2012, an
evaluation report on the results and impact of actions co-
financed by the Fund.

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The Commission shall submit to the European Parliament,
4.
the Council, the European Economic and Social Committee and
the Committee of the Regions:

(a) no later than 30 April 2007, an intermediate report on the
results achieved and on qualitative and quantitative aspects
of implementation of the Fund, together with any proposed
amendments;

(b) no later

than 31 December 2009,

an intermediate
evaluation report and a proposal on the Fund's future devel-
opment;

(c) no later than 31 December 2012, an ex post evaluation

report.

CHAPTER VI

TRANSITIONAL PROVISIONS

Article 29

2005 to 2007 multiannual programme

By way of derogation from Article 15, the following timetable
shall apply for implementation of the multiannual programme
for the period 2005 to 2007:

(a) no later than 31 January 2005, the Commission shall notify
Member States of planning guidelines and shall provide an
indication of the financial amounts allocated to them;

(b) no later than 1 May 2005, Member States shall designate
the national responsible authority referred to in Article 13
and shall submit the proposal for a multiannual programme
for the period 2005 to 2007 referred to in Article 15;

(c) acting in accordance with the procedure referred to in
Article 11(3),
the Commission shall approve the multi-
annual programmes no more than two months after the
proposal for a multiannual programme has been received.

Article 30

2005 annual programme

By way of derogation from Article 16, the following timetable
shall apply for implementation in the financial year 2005:

(a) by 31 January 2005, the Commission shall provide Member
States with an estimate of the amounts allocated to them;

(b) Member States shall present the proposal

for an annual
programme referred to in Article 16 to the Commission
by 1 June 2005; the proposal shall be accompanied by
details of the management systems and checks which will
be implemented with a view to ensuring that Community
funds are used properly and effectively;

(c)

the Commission shall adopt co-financing decisions no more
than two months after the draft annual programme has
been presented,
aspects
indicated in Article 12(1)(b).

following verification of

the

Expenditure actually disbursed between 1 January 2005 and
that date on which the co-financing decisions are adopted
may qualify for support from the Fund.

CHAPTER VII

FINAL PROVISIONS

Article 31

Review

The Council shall review this Decision on the basis of a
proposal from the Commission by 31 December 2010.

Article 32

Addressees

This Decision is addressed to the Member States in accordance
with the Treaty establishing the European Community.

Done at Brussels, 2 December 2004.

For the Council

The President

J. P. H. DONNER