Commission Regulation (EC) No 498/2007 of 26 March 2007 laying down detailed rules for the implementation of Council Regulation (EC) No 1198/2006 on the European Fisheries Fund
Date: 2007-03-26
Institutions: European Commission
Subjects: aid system, aquaculture, control of State aid, disclosure of information, dissemination of EU information, financial instrument, fishing controls, fishing fleet, fishing industry, fund (EU), operational programme, sustainable development, water protection

10.5.2007

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

REGULATIONS

COMMISSION REGULATION (EC) No 498/2007

of 26 March 2007

laying down detailed rules for the implementation of Council Regulation (EC) No 1198/2006 on the
European Fisheries Fund

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1198/2006 of
27 July 2006 on the European Fisheries Fund (1), and in particu-
lar Article 102 thereof,

Whereas:

(1)

(2)

(3)

Regulation (EC) No 1198/2006 (the basic Regulation)
replaces Council Regulations (EC) No 1263/1999 (2)
and (EC) No 2792/1999 (3) taking into account new devel-
opments in the field of fisheries, fisheries areas and inland
fishing. It is therefore appropriate to lay down detailed
rules for implementing the basic Regulation.

Detailed rules should be laid down for the presentation of
operational programmes. In order to facilitate the estab-
lishment of the operational programmes and their exami-
nation and approval by the Commission, common rules
should be laid down for the structure and content of such
programmes, based in particular on the requirements set
out in Article 20 of the basic Regulation.

As regards support for measures for the adaptation of the
Community fishing fleet,
the Member States should
present in their operational programmes the methods for
the calculation of premiums.

(1) OJ L 223, 15.8.2006, p. 1.
(2) OJ L 161, 26.6.1999, p. 54.
(3) OJ L 337, 30.12.1999, p. 10. Regulation as last amended by Regula-

(4)

(5)

(6)

(7)

(8)

(9)

As regards the possibility provided for under Article 25(4)
of the basic Regulation to achieve the reduction of engine
power by a group of vessels, the conditions for this pos-
sibility should be specified.

Certain terms used with special reference to aquaculture
and the processing and marketing of fisheries and aquac-
ulture products, should be defined to ensure that they are
uniformly understood.

As regards support for productive investments in aquac-
ulture and investments in processing and marketing, the
Member States should explain in their operational pro-
grammes how they will ensure that priority is given to
micro and small enterprises.

As regards support for animal heath measures, detailed
conditions should be laid down to ensure compliance with
the Council Directive 2006/88/EC of 24 October 2006 on
animal health requirements for aquaculture animals and
products thereof, and on the prevention and control of
certain diseases in aquatic animals (4).

As regards support for measure of common interest, the
eligible expenditure should be defined.

As regards the fisheries areas referred to in Article 43 of
the basic Regulation, the conditions for their selection
should be specified.

tion (EC) No 485/2005 (OJ L 81, 30.3.2005, p. 1).

(4) OJ L 328, 24.11.2006, p. 14.

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(10)

public-private

under
partnerships
The
Article 45 of the basic Regulation should comply with cer-
tain detailed conditions.

supported

(16)

Building on the experience of the 2000-2006 program-
ming period, it is necessary to set out in detail the condi-
tions which financial engineering instruments should fulfil
in order to be funded under an operational programme.

(11) As regards support for the sustainable development of
fisheries areas, the procedures for selecting groups should
be transparent in order to ensure that pertinent and high
quality local development strategies are selected for
support.

(12)

Rules common to several measures should be laid down.
In particular, in order to ensure a better targeting of invest-
ment operations, a set of common rules for the definition
of eligible expenditure should be made available.

(17) With regard to Article 59 of the basic Regulation and in
the light of the experience gained, it is necessary to lay
down the obligations which the managing authorities
should have with regard to beneficiaries in the phase lead-
ing to the selection and approval of the operations to be
funded, with regard to the aspects which the verifications
of the expenditure declared by the beneficiary should
cover, including administrative verifications of the appli-
cations for reimbursement, and on-the-spot verifications
of individual operations and with regard to the conditions
to be observed when on-the-spot verifications are carried
out on a sample basis.

(13)

(14)

In order to guarantee that information on possible fund-
ing opportunities is disseminated widely to all interested
parties and for the sake of transparency, the minimum
content of the information measures needed to inform
potential beneficiaries about the financing opportunities
offered jointly by the Community and the Member States
through the European Fisheries Fund (EFF), including an
obligation to publicise the steps that a potential benefi-
ciary should take in order to submit an application for
funding and the selection criteria that are to be used,
should be set out taking into account the principle of
proportionality.

In order to enhance transparency regarding the use of EFF
assistance, the list of beneficiaries, the names of the opera-
tions and the amount of the public funding allocated to
operations should be published annually by Member
States, electronically or otherwise. Making such informa-
tion accessible to the public aims to strengthen the trans-
parency of the Community’s action in the area of the
development of the fisheries sector, fisheries areas and
inland fishing, to enhance the sound financial manage-
ment of the public funds involved and, in particular, to
reinforce control of the public money used and finally to
avoid any distortion of competition between beneficiaries
of EFF measures. Given the overriding weight of the objec-
tives pursued, it is justified with regard to the principle of
proportionality and the requirement of the protection of
personal data, to provide for the general publication of the
relevant information as it does not go beyond what is nec-
essary in a democratic society and for prevention of
irregularities.

(15)

In order to ensure a better implementation of the infor-
mation measures and to allow a better exchange of infor-
mation between the Member States and the Commission
on the information and publicity strategies and results,
contact persons responsible for the information and pub-
licity measures should be designated.

(18)

It is also necessary to set out in detail the information
which should be included in the accounting records of
operations and the information to be kept as data on
implementation which the managing authorities should
record, store and submit to the Commission upon request.

(19)

In order to ensure that expenditure under operational pro-
grammes can be properly audited, it is necessary to set out
the criteria that an audit trail should comply with in order
to be considered adequate.

(20)

(21)

(22)

The audit of operations is carried out under the responsi-
bility of the audit authority. To ensure that the scope and
effectiveness of those audits are adequate and that they are
carried out according to the same standards in all Mem-
ber States, it is necessary to set out the conditions which
those audits should fulfil.

Experience has shown that it is necessary to set out in
detail the basis for the sampling of operations to be
audited, which the audit authority should observe in estab-
lishing or approving the sampling method, including cer-
tain technical criteria to be used for a random statistical
sample and factors to be taken into account for a comple-
mentary sample.

In order to simplify and harmonise standards for the
preparation and presentation of the audit strategy, the
annual control report and the closure declarations for
which the audit authority is responsible under Article 61
of the basic Regulation, it is necessary to lay down detailed
rules concerning their content and specify the nature and
quality of the information on which they rely.

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(23)

In order to ensure the most effective application of
Article 87 of the basic Regulation with regard to the avail-
ability of documents and the rights of the Court of Audi-
tors and the Commission to have access to all supporting
documents regarding expenditure and audits, managing
authorities should ensure that information on the identity
and location of the bodies holding the supporting docu-
ments is readily available and those documents should be
readily provided to a minimum list of persons and bod-
ies. For the same purpose, it is necessary to set out which
data carriers may be considered as commonly accepted for
the purpose of keeping such documents. To that end, the
national authorities should lay down the procedures nec-
essary to ensure that the documents kept are in confor-
mity with the originals, when this is relevant, and can be
relied on for audit purposes.

(24)

In order to harmonise standards for the certification of
expenditure and for the preparation of applications for
payments, the content of such certificates and applications
should be laid down and the nature and quality of the
information, on which they rely, specified. Detailed pro-
cedures should be set out for keeping, in accordance with
Article 60(f) of
the basic Regulation, an account of
amounts recoverable and of amounts withdrawn follow-
ing cancellation of all or part of the contribution for an
operation and for informing the Commission accordingly.

(25) Under Article 71 of the basic Regulation, the Member
States are required before the submission of the first appli-
cation for interim payment or at least within twelve
months after the approval of the operational programme,
to submit to the Commission a description of the man-
agement and control systems, a report setting out the
results of an assessment of the systems set up and an opin-
ion on their compliance with the provisions of that Regu-
lation on management and control systems. Since those
documents are among the principal elements that the
Commission relies on, in the context of the shared man-
agement of the Community budget, to satisfy itself that
the financial assistance concerned is used by the Member
States in accordance with the applicable rules and prin-
ciples necessary for protecting the Community’s financial
interests, it is necessary to set out in detail the informa-
tion that such documents should contain and the basis for
the assessment and the opinion.

(26) Article 57 of the basic Regulation provides that the
arrangements for auditing are to be proportionate to the
total amount of public expenditure allocated to the opera-
tional programme concerned. Where the public expendi-
ture allocated to the operational programme is limited, it
is appropriate that there should be an option for the Mem-
ber State to rely more on national bodies and rules for
carrying out certain functions related to the control and
audit arrangements and that the Commission should
therefore specify which verifications, which audits of
operations and which obligations may be carried out and

executed according to national rules and by national bod-
ies. In those circumstances, the Commission should also
differentiate between the means by which Member States
have to fulfil the functions of certification of expenditure
and verification of the management and control system
and establish the conditions under which it may limit its
own audit and rely on assurances provided by national
bodies.

(27) As part of their management and control obligations,
Member States are required to report and monitor irregu-
larities. Detailed rules to implement that requirement were
laid down in Commission Regulation (EC) No 1681/94 of
11 July 1994 concerning irregularities and the recovery
of sums unduly paid in connection with the financing of
the structural policies and the organisation of an informa-
tion system in this field (1). It is appropriate, for reasons
of clarity and simplification, to incorporate those rules
into this Regulation.

(28)

(29)

(30)

Provision should be made for the Commission to reim-
burse judicial costs when it requests a Member State to
initiate or continue legal proceedings with a view to recov-
ering amounts unduly paid following an irregularity, and
for it to be provided with information enabling it to decide
on the apportionment of the loss from irrecoverable
amounts under Article 70(2) of the basic Regulation.
Regular contact should also be provided for between the
Commission and the Member States on the subject of
irregularities, for the use of the information provided for
making risk analyses and compiling reports, and for the
provision of information to the relevant committees.

In order to limit the administrative burden imposed by the
reporting system while safeguarding the necessary level of
information, Member States should, without prejudice to
the obligations arising directly from Article 60(f) of the
basic Regulation, not be obliged to report irregularities
involving amounts below a certain threshold unless the
Commission expressly so requests.

The use of electronic means for the exchange of informa-
tion and financial data leads to simplification, increased
efficiency and transparency and to savings in time. In
order to exploit those advantages fully, while preserving
the security of exchanges, a common computer system
should be established as well as a list of documents of
common interest to the Commission and the Member
States. It is therefore necessary to specify the format each
document should have, and to provide a detailed descrip-
tion of the information such documents should contain.
For the same reasons, it is necessary to specify how such
a computer system functions with regard to the identifi-
cation of the party responsible for uploading the docu-
ments and any updates thereto.

(1) OJ L 178, 12.7.1994, p. 43. Regulation as amended by Regulation

(EC) No 2035/2005 (OJ L 328, 15.12.2005, p. 8).

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(31)

(32)

(33)

(34)

In accordance with Directive 1999/93/EC of the European
Parliament and of the Council of 13 December 1999 on
a Community framework for electronic signatures (1), tak-
ing account of the level of security and confidentiality
required for the financial management of funds from the
EFF, of the state of the art and of a cost-benefit analysis, it
is necessary to require the use of an electronic signature.

In order to ensure the quick development and proper func-
tioning of the common computer system, the cost of its
development should be financed by the general budget of
the European Communities under Article 46(1) of the
basic Regulation, and the costs of the interface with
national, regional, and local computer systems should be
eligible for a financial contribution from EFF under
Article 46 of that Regulation.

In the light of Directive 95/46/EC of the European Parlia-
ment and of the Council of 24 October 1995 on the pro-
tection of individuals with regard to the processing of
personal data and on the free movement of such data (2)
and Regulation (EC) No 45/2001 of the European Parlia-
ment and of the Council of 18 December 2000 on the
protection of individuals with regard to the processing of
personal data by the Community institutions and bodies
and on the free movement of such data (3), it is necessary
to provide, in relation to the information and publicity
measures and the audit work under this Regulation, that
the Commission and the Member States should prevent
any unauthorised disclosure of, or access to, personal data,
and to specify the purpose for which the Commission and
the Member States may process such data.

Commission Regulations
(EC) No 2722/2000 of
13 December 2000 establishing the conditions under
which the Financial Instrument for Fisheries Guidance
(FIFG) may make a contribution towards the eradication
of pathological risks in aquaculture (4), (EC) No 908/2000
of 2 May 2000 laying down detailed rules for calculating
aid granted by Member States to producer organisations
in the fisheries and aquaculture sector (5) and (EC)
No 366/2001 of 22 February 2001 laying down detailed
rules for implementing the measures provided for in
Council Regulation (EC) No 2792/1999 (6) should be
repealed.

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation lays down detailed rules for the implementation
of Regulation (EC) No 1198/2006 (the basic Regulation) as
regards the following:

(a)

the structure and transmission of operational programmes;

(b)

fisheries measures;

(c)

the evaluation of operational programmes;

(d)

information and publicity;

(e)

financial engineering instruments;

(f) management, monitoring and control;

(g)

irregularities;

(h) electronic exchange of data;

(i) personal data.

Specific arrangements for certain operational programmes

Article 2

For operational programmes for which the total eligible public
expenditure does not exceed EUR 90 million at 2004 prices, spe-
cific arrangements are laid down in Article 28(2) and Articles 51,
52 and 53.

CHAPTER II

STRUCTURE AND TRANSMISSION OF THE OPERATIONAL
PROGRAMMES

(35)

The measures provided for in this Regulation are in accor-
dance with the opinion of the European Fisheries Fund
Committee,

(1) OJ L 13, 19.1.2000, p. 12.
(2) OJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation

(EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).

(3) OJ L 8, 12.1.2001, p. 1.
(4) OJ L 314, 14.12.2000, p. 10.
(5) OJ L 105, 3.5.2000, p. 15. Regulation as amended by Regulation (EC)

No 2438/2000 (OJ L 280, 4.11.2000, p. 37).

(6) OJ L 55, 24.2.2001, p. 3.

Structure and transmission of the operational programmes

Article 3

1.
The content of the operational programme, referred to in
Article 20 of the basic Regulation, shall be established in accor-
dance with Part A of Annex I to this Regulation and the financ-
ing plan as set out in Part B of that Annex.

The ex ante evaluation, referred to in Article 48 of the basic Regu-
lation, shall be annexed to the operational programme.

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2. Member States shall make available to the Commission an
electronic version of their operational programme, updated fol-
lowing each programme revision. Member States shall submit to
the Commission requests for programme revisions, referred to
in Article 18 of the basic Regulation, by electronic means in
accordance with Article 65 of this Regulation. Member States
shall submit to the Commission their requests for revision of the
operational programme, affecting the European Fisheries Fund
(EFF) contribution for the ongoing year, by 30 September of that
year at the latest.

CHAPTER III

PRIORITY AXES

SECTION 1

Priority axis 1: Measures for the adaptation of the
Community fishing fleet

Article 4

Public aid for permanent cessation of fishing activities

For the purposes of Article 24(2) of the basic Regulation,
2.
‘Community financial assistance allocated to the sector’ shall
mean the EFF contribution to the operational programme of the
Member Sate concerned.

Article 6

Investments on board fishing vessels and selectivity

1.
For the purposes of Article 25 of the basic Regulation, the
managing authority shall be responsible for assessing compli-
ance with paragraphs 2 to 5 of this Article and shall provide the
Commission with all relevant documents upon request.

The total eligible expenditure to be supported per fishing
2.
vessel over the entire programming period under Article 25 of
the basic Regulation, except under paragraph 6(e) of that Article,
shall not exceed a maximum amount established on the basis of
objective criteria, such as those listed in Article 23(3) of that
Regulation and included in the operational programme.

3.
The 20 % reduction in engine power may be achieved by a
group of vessels as provided for in Article 25(4) of the basic
Regulation, subject to all the following conditions:

1.
After the permanent cessation of fishing activities, the fish-
ing vessel concerned shall be permanently deleted from the fish-
ing fleet register of the Community and, where appropriate, the
fishing licence associated with it shall be permanently cancelled.

(a) all the vessels belonging to the same group are individually

identified;

The operational programme shall specify the methods for
2.
calculating the premiums granted under Article 23 of the basic
Regulation.

(b) all the vessels belonging to the same group operate in the

same management areas;

3. Where the permanent cessation of fishing activities of a
fishing vessel is achieved by its reassignment as referred to in
Article 23(1)(b) of the basic Regulation, Member States shall
adjust the level of the premium accordingly, taking into account
criteria such as the market value of the fishing licence for the
vessel and the residual value of the vessel.

(c) all the vessels belonging to the same group use the same
main fishing gear as listed in Appendix III (section C) of
Commission Regulation (EC) No 1639/2001 (1);

(d) all the vessels belonging to the same group do not exceed

fifty in number.

If a fishing vessel is lost between the date of the decision
4.
to grant the premium and the actual date of permanent cessa-
tion of fishing activities, the management authority shall make a
financial correction for the amount of the compensation paid by
the insurance.

The exits from the fishing fleet of fishing capacity with pub-
4.
lic aid shall not be taken into account in the calculation of the
20 % reduction in power that may be achieved by a group of
vessels as provided for in Article 25(4) of the basic Regulation.

Article 5

Public aid for the temporary cessation of fishing activities

5.
Financial support granted under Article 25(6)(e) of the basic
Regulation shall be granted only for equipment and modernisa-
tion works for the protection of catch and gear from wild preda-
tor species protected under Council Directives 79/409/EEC (2)
and 92/43/EEC (3).

1.
The operational programme shall specify the methods for
calculating the premiums granted under Article 24 of the basic
Regulation.

(1) OJ L 222, 17.8.2001, p. 53.
(2) OJ L 103, 25.4.1979, p. 1.
(3) OJ L 206, 22.7.1992, p. 7.

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Article 7

Small-scale coastal fishing

(b)

‘species with good market prospects’: species for which the
forecast medium-term trend shows that market demand is
likely to exceed supply;

1. Where the private financial participation rate is reduced in
accordance with Article 26(2) of the basic Regulation, the rate
of the public contribution shall be increased accordingly. The
contribution from the EFF shall be calculated in accordance with
the rates provided for in Article 53 of the basic Regulation in
relation to such resulting public contribution.

(c)

‘normal practice in the aquaculture sector’: aquaculture
activities carried out in compliance with binding legislation,
whether it relates to health, veterinary or environmental
matters;

2.
The operational programme shall specify the methods for
calculating premiums granted under Articles 26(3) and 26(4) of
the basic Regulation in favour of small- scale coastal fishing.

(d)

‘traditional aquaculture’: time-honoured practices which are
linked to the social and cultural heritage of a given area.

3.
For the purposes of Article 26(4)(b) of the basic Regula-
tion ‘fisheries products’ shall mean fishery products originating
from the catches of small-scale coastal fishing vessels.

Article 8

Socio-economic compensation for the management of the
Community fishing fleet

1.
The operational programme shall specify the methods for
calculating the socio-economic compensation for the manage-
ment of the Community fishing fleet granted under Article 27
of the basic Regulation.

2.
The support provided for in Article 29 of the basic Regu-
lation, may cover aquaculture service vessels. Fishing vessels as
defined
(EC)
No 2371/2002 (2) shall not be regarded as aquaculture service
vessels even where they are exclusively used in aquaculture.

of Council Regulation

in Article

3(c)

3. Without prejudice to Article 35(6) of the basic Regulation,
support under Article 29 of that Regulation may cover invest-
ments related to on-farm retail trade where such trade forms an
integral part of the aquaculture farm.

2.
Support provided for in Article 27(1)(d) of the basic Regu-
lation for early retirement shall be eligible for a contribution from
the EFF, even where it is paid to the beneficiaries after 31 Decem-
ber 2015, provided that it has been secured for this purpose in a
blocked account before that date.

4. Where Member States use the possibility provided for in
Article 29(1)(a) of the basic Regulation, they shall put in place
mechanisms to make available to the management authority the
results of prospective market analysis on aquaculture species.

SECTION 2

Priority axis 2: Aquaculture, inland fishing, processing and
marketing of fishery and aquaculture products

5.
For the measures provided for in Article 29 of the basic
Regulation, Member States shall describe in their operational pro-
gramme how aid is to be prioritised to micro and small
enterprises.

Article 9

Scope of intervention in aquaculture production

Support under Article 28(6) of the basic Regulation may cover
the costs of assessments provided for in Council Directive
85/337/EEC (1).

Article 10

Measures for productive investments in aquaculture

For the purpose of Article 29(1)(a), (b) and (c) of the basic

1.
Regulation, the following definitions shall apply:

(a)

‘new species’: species for which aquaculture production in
the Member State is low or non-existent and for which there
are good market prospects;

Article 11

Aqua-environmental measures

1. Where support is granted to beneficiaries for the purposes
referred to in Article 30 of the basic Regulation, Member States
shall check that those beneficiaries comply with the aqua-
environmental commitments at the latest three years from the
date of approval of the operation and at the end of the imple-
mentation of the operation.

Support provided for in Article 30(2)(b) of the basic Regu-
2.
lation, shall concern only costs for participation in a Commu-
nity eco-management and audit scheme (EMAS) that are prior to
the approval of the scheme for an individual enterprise.

(1) OJ L 175, 5.7.1985, p. 40.

(2) OJ L 358, 31.12.2002, p. 59.

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For the purpose of Article 30(2)(c) of the basic Regulation,
3.
‘organic aquaculture’ shall mean the aquaculture activities pro-
ducing farmed aquatic species in accordance with the organic
production method within the meaning of Article 2 of Council
Regulation (EEC) No 2092/91 (1) and which bear indications to
that effect. Until the adoption of detailed production rules by the
Community, including rules on conversion, applicable to organic
aquaculture, national rules or, in the absence thereof, private stan-
dards, applicable to organic aquaculture, accepted or recognised
by the Member States, shall apply.

4.
Support provided for in Article 30(2)(d) of the basic Regu-
lation, may be granted only for specific restrictions or require-
ments for Nature 2000 areas, imposed by the relevant national
measures for the implementation of the Directives 79/409/EEC
and 92/43/EEC.

5.
For the purpose of Article 30(3) of the basic Regulation,
‘normal good aquaculture practice’ shall mean compliance with
binding legislation, whether it relates to health, veterinary or envi-
ronmental matters, and the use of production protocols that pre-
vent the wastage of resources and avoidable pollution.

Article 12

Animal health measures

Support provided for in Article 32 of the basic Regulation,

1.
may cover:

If the value of the eligible costs in the action approved by
4.
the Commission in accordance with Article 24 of Decision
90/424/EC is less than the sum committed by the management
authority, the difference released in this way may be reused by
the Member State for its operational programme.

5.
Support provided for in Article 32 of the basic Regulation,
shall not cover surveillance activities intended to demonstrate
freedom from a disease in order to obtain the recognition of the
officially disease-free status or fixed costs such as the costs of
official veterinary services.

Article 13

Inland fishing

1.
For the purpose of Article 33 of the basic Regulation, ‘ves-
sels operating exclusively in inland waters’ shall mean vessels
engaged in commercial fishing in inland waters and not included
in the Community fishing fleet register.

For the investments provided for in the second subpara-
2.
graph of Article 33(2) and Article 25 of the basic Regulation,
vessels of less than 12 metres, not using towed gear and operat-
ing in inland fishing, may be supported with the same aid inten-
sity as provided for small-scale coastal vessels referred to in
Article 26 of that Regulation.

3. Member States shall determine in their operational pro-
grammes how they will ensure that the investments supported
under Article 33 of the basic Regulation do not jeopardise the
equilibrium between the fleet size and the corresponding fish
resources available.

(a)

(b)

for exotic diseases in aquaculture as listed in Article 3 of
Council Decision 90/424/EEC (2),
the control measures
applied pursuant to Section 3 of Chapter V of Directive
2006/88/EC;

Article 14

Investments in processing and marketing

for non-exotic diseases in aquaculture as listed in the Annex
of Decision 90/424/EEC, eradication programmes drawn up
and approved pursuant
to Article 44(2) of Directive
2006/88/EC.

1.
Investments for the extractions from fishmeal or fish oil of
dioxin or other substances harmful to human health may be sup-
ported by the EFF under Article 34 of the basic Regulation even
where the final products are intended to be used and processed
for purposes other than human consumption.

2.
The managing authority of the operational programme
shall decide whether it will contribute to the financing of con-
trol measures referred to in paragraph 1(a), or an eradication pro-
gramme referred to in paragraph 1(b), and adopt the detailed
arrangements for its financial participation before submitting the
measures or the programme, respectively, in accordance with the
provisions of Decision 90/424/EEC.

3.
If the Commission does not approve, in accordance with
Article 24 of Decision 90/424/EC, the control measures or the
eradication programme referred to in paragraph 1 of this Article,
the committed contribution shall be immediately returned to the
budget of the operational programme.

2.
For the measures provided for in Article 35 of the basic
Regulation, Member States shall describe in their operational pro-
grammes how aid will be prioritised to small and micro
enterprises.

SECTION 3

Priority axis 3: Measures of common interest

Article 15

Collective actions

(1) OJ L 198, 22.7.1991, p. 1.
(2) OJ L 224, 18.8.1990, p. 19.

Support provided for in Article 37 of the basic Regulation

1.
shall not cover costs related to exploratory fishing.

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Support provided for in point (n) of the first paragraph of

2.
Article 37 of the basic Regulation may be granted for:

(a)

(b)

the creation of producer organisations in order to facilitate
the setting up and administrative operation of producer’s
organisation recognised under Council Regulation (EC)
No 104/2000 (1) after 1 January 2007;

the implementation of plans of producer organisations that
have been specifically recognised under Article 12 of Regu-
lation (EC) No 104/2000 in order to facilitate the implemen-
tation of their plans to improve the quality of their products;

Article 17

Landing sites

Where support is given for investments to restructure landing
sites and to improve the conditions for fish landed by coastal
fishers in existing landing sites, as provided for in the second
subparagraph of Article 39(1) of the basic Regulation, Member
States shall ensure compliance with the relevant sanitary rules
and the enforcement of control measures in those landing sites.

Article 18

or

Development of new markets and promotional campaigns

(c)

the restructuring of producers’ organisations in order to
increase their efficiency in line with market requirements.

1.
Support provided for promotional measures, as provided
for in Article 40(3)(a), (d), (e) and (g) of the basic Regulation, may
cover in particular:

3.
The support referred to in paragraph 2(b) of this Article
shall be degressive over three years following the date of the spe-
cific
recognition under Article 12 of Regulation (EC)
No 104/2000.

Article 16

Measures intended to protect and develop aquatic fauna
and flora

1.
Support provided for in point (a) of the first subparagraph
of Article 38(2) of the basic Regulation shall concern measures
for the construction and installation of artificial reefs or other
facilities made up of long lasting elements.

Support may cover work preliminary to installation, including
studies, components, signalling, transport and the assembly of
the facilities and scientific monitoring.

Support provided for in Article 38(2) of the basic Regula-

2.
tion shall not cover fish aggregating devices.

3.
Support provided for in point (c) of the first subparagraph
of Article 38(2) of the basic Regulation may cover the expendi-
ture on the necessary conservation measures for sites belonging
to the Nature 2000 European Ecological Network. Support may
cover the preparation of management plans, strategies and
schemes, infrastructure including depreciation and equipment for
reserves, training and education for the employees of reserves as
well as relevant studies.

4.
Support provided for in point (c) of the first subparagraph
of Article 38(2) of the basic Regulation shall not cover compen-
sation for rights foregone,
income and salaries of
employees.

loss of

(a)

(b)

the costs of advertising agencies and other service providers
involved in the preparation and implementation of promo-
tional campaigns;

the purchase or hire of advertising space and the creation of
the duration of promotional
slogans and labels
campaigns;

for

(c)

expenditure on publishing and external staff, required for the
campaigns;

(d)

the organisation of and participation in trade fairs and
exhibitions.

2.
As regards products protected under Council Regulation
(EC) No 510/2006 (2), support may be granted for their promo-
tion only from the date on which the name has been entered in
the register as provided for in Article 7 of that Regulation.

Article 19

Pilot projects

No support shall be granted under Article 41 of the basic

1.
Regulation for exploratory fishing.

2. Where support is given for a pilot project, as provided for
in Article 41 of the basic Regulation, the managing authority
shall ensure that the pilot project includes adequate scientific fol-
low up and that an adequate qualitative assessment of the tech-
nical reports referred to in Article 41(3) of that Regulation is
made.

For the purposes of second subparagraph of Article 38(2)
5.
of the basic Regulation, ‘direct restocking’ shall mean the activity
of releasing live aquatic organisms, whether the animals are pro-
duced in hatcheries or fished elsewhere.

3.
Pilot projects shall not be of a directly commercial nature.
Any profit generated during the implementation of a pilot project
shall be deducted from the public aid granted to the operation.

(1) OJ L 17, 21.1.2000, p. 22.

(2) OJ L 93, 31.3.2006, p. 12.

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4. Where the total costs of a pilot project exceed EUR 1 mil-
lion, the managing authority shall, prior to its approval, require
an assessment by an independent scientific body.

Article 23

Procedures and criteria for selecting the groups

Article 20

Modification for reassignment of fishing vessels

Support, as provided for in Article 42 of the basic Regulation,
may be granted for the modification of a fishing vessel after its
reassignment only if that vessel has been deleted permanently
from the fishing fleet register and, where appropriate, the fishing
licence associated with it has been permanently cancelled.

SECTION 4

Priority axis 4: Sustainable development of fisheries areas

Article 21

Objectives and measures

A group, as referred to in Article 45(1) of the basic Regu-
1.
lation, shall be composed in such a way that it is able to draw
up and implement a development strategy in the area concerned.

The relevance and effectiveness of the partnership shall be
assessed on the basis its composition, as well as its transparency
and clarity in the allocation of tasks and responsibilities.

The capacity of the partners to carry out the tasks assigned to
them and the effectiveness and decision-making shall be
guaranteed.

The partnership shall comprise, including at the decision-making
level, representatives of the fisheries sector and of other relevant
local socio-economic sectors.

The administrative capacity of the group shall be consid-

2.
ered adequate where the group:

(a)

either selects from the partnership, one partner as the admin-
istrative leader who will guarantee the satisfactory opera-
tion of the partnership;

The support granted under Article 43 of the basic Regulation
shall be for:

or

(a)

(b)

implementing local development strategies as referred to in
Article 45(2) of the basic Regulation and Article 24 of this
Regulation with a view to achieving the objectives referred
to in Article 43(2)(a), (b) and (c) of the basic Regulation and
through the eligible measures provided for in Article 44(1)(a)
to (g), (i) and (j) and Article 44(2) and (3) of that Regulation;

(b) comes together in a legally constituted common structure,
the formal constitution of which guarantees the satisfactory
operation of the partnership.

If the group is entrusted with the administration of public

3.
funds, its financial capacity shall be assessed:

implementing inter-regional and trans-national cooperation
among the groups in fisheries areas as referred to in
Article 44(1)(h) of the basic Regulation, mainly through net-
working and disseminating best practices with a view to
achieving the objective referred to in Article 43(2)(d) of that
Regulation.

(a) with regard to paragraph 2(a), in terms of the ability of the

administrative leader to administer the funds;

(b) with regard to paragraph 2(b), in terms of the ability of the

common structure to administer the funds.

Article 22

Geographical application of Priority axis 4

1.
The operational programme shall specify the procedures
and the criteria for selecting the fisheries areas. Member States
shall decide how they will apply Articles 43(3) and (4) of the
basic Regulation.

2.
The fisheries areas selected do not necessarily have to coin-
cide with a national administrative area or with zones established
for the purposes of eligibility under the objectives of the Struc-
tural Funds.

4.
The groups for the implementation of local development
strategies shall be selected no later than four years from the date
of the approval of the operational programme. Longer time lim-
its may be granted where the managing authority organises more
than one selection procedure for the groups.

5.

The operational programme shall specify:

(a)

the procedures and the criteria for selecting the groups, as
well as the number of groups that the Member State intends
to select; the selection criteria referred to in Article 45 of
the basic Regulation and in this Article shall constitute a
minimum and may be supplemented by specific national cri-
teria; the procedures shall be transparent, provide adequate
publicity and ensure competition where applicable, between
the groups putting forward local development strategies;

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(b)

the management arrangements and the procedures for the
mobilisation and circulation of financial flows as far as the
beneficiary; it shall describe in particular how the groups are
integrated into the management, monitoring and control
systems.

(b)

the part of the cost of vehicles not directly linked to the
operation concerned.

CHAPTER IV

EVALUATION OF THE OPERATIONAL PROGRAMMES

Article 24

Local development strategy

Article 27

Interim evaluations

The local development strategy proposed by the group in accor-
dance with Article 45(2) of the basic Regulation shall:

(a) be integrated and be based on interaction between actors,
sectors and operations and go beyond a mere collection of
operations or a juxtaposition of sectoral measures;

Member States shall forward the interim evaluations referred to
in Article 49 of the basic Regulation by 30 June 2011 at the lat-
est. The Commission may decide to interrupt the payment dead-
line, in accordance with Article 88 of the basic Regulation, where
a Member State has not complied with that obligation.

(b) be consistent with the needs of the fisheries area particu-

CHAPTER V

larly in socio-economic terms;

(c) prove its sustainability;

INFORMATION AND PUBLICITY

Article 28

(d) be complementary to other interventions made in the area

concerned.

Description of the information and publicity measures in
the operational programme and in the annual and final
reports on implementation

Article 25

Implementing local development Strategy

For the purpose of Article 20(1)(g)(v) of the basic Regula-
1.
tion, the operational programme shall include at least the follow-
ing elements:

Notwithstanding Article 45(2) of the basic Regulation, the
1.
group shall choose the operations to be financed under the local
development strategy.

(a)

the content of the information and publicity measures to be
taken by the Member State or the managing authority aimed
at potential beneficiaries and beneficiaries and their indica-
tive budget;

If the group is entrusted with the administration of public
2.
funds, it shall create a separate account for the implementation
of the local development strategy.

(b)

the content of the information and publicity measures to be
taken by the Member State or the Managing authority for
the public and their indicative budget;

SECTION 5

Common provisions for several measures

(c)

the administrative departments or bodies responsible for the
implementation of information and publicity measures;

Article 26

Common provisions for priority axes 1 to 4

(d) an indication of how the information and publicity mea-
sures are to be evaluated in terms of visibility and aware-
ness of the operational programme and of the role played
by the Community.

The following expenditure shall not be eligible for a contribu-
tion from EFF:

For the operational programmes referred to in Article 2,

2.
paragraphs 1(c) and (d) of this Article shall not apply.

(a)

for the purposes of the Articles 28(3) and 34(3), point (i) of
the first paragraph of Article 37 and Article 44(2) of the
basic Regulation, the purchase of infrastructure used for life-
long learning for an amount exceeding 10 % of total eligible
expenditure of the operation concerned;

3.
The annual reports and final report on implementation of
an operational programme, referred to in Article 67 of the basic
Regulation, shall include:

(a)

information and publicity measures carried out;

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(b)

the arrangements for the information and publicity mea-
sures referred to in point (d) of the second paragraph of
Article 31 of this Regulation including, where applicable, the
electronic address where such data may be found.

(c)

economic and social partners;

(d) non-governmental organisations;

The annual report on implementation covering the year 2010
and the final report on implementation referred to in Article 67
of the basic Regulation shall contain a chapter assessing the
results of the information and publicity measures in terms of vis-
ibility and awareness of the operational programme and of the
role played by the Community, as provided for in paragraph 1(d)
of this Article.

(e) organisations representing business;

(f)

information centres on the European Union as well as Com-
mission representatives in the Member States;

(g) educational institutions.

Article 29

Information measures for potential beneficiaries

Article 30

Information measures for beneficiaries

1.
For the purposes of Article 51(2)(a) of the basic Regula-
tion, the managing authority shall ensure that the operational
programme is disseminated widely with details of the financial
contribution from the EFF and that it is made available to all
interested parties. The managing authority shall ensure, in addi-
tion, that information on the financing opportunities offered by
joint assistance from the Community and the Member State
through the operational programme is disseminated as widely as
possible.

2.
The managing authority shall provide potential beneficia-
ries with clear and detailed information, on at least the following:

(a)

the conditions of eligibility to be met in order to qualify for
financing under the operational programme;

The managing authority shall inform beneficiaries that accep-
tance of funding is also an acceptance of their inclusion in the
list of beneficiaries published in accordance with point (d) of the
second paragraph of Article 31.

Article 31

Responsibilities of the managing authority relating to
information and publicity measures for the public

For the purposes of Article 51(2)(c) of the basic Regulation, the
managing authority shall ensure that the information and pub-
licity measures for the public are implemented and that they aim
at the widest possible media coverage using various forms and
methods of communication at the appropriate territorial level.

(b) a description of the procedures for examining applications

for funding and of the time periods involved;

The managing authority shall be responsible for organising at
least the following information and publicity measures:

(c)

the criteria for selecting the operations to be financed;

(d)

the contacts at national, regional or local level who can pro-
vide information on the operational programme.

The managing authority shall inform potential beneficia-
3.
ries of the publication provided for in point (d) of the second
paragraph of Article 31.

The managing authority shall involve in information and
4.
publicity measures, in accordance with national laws and prac-
tices, at least one of the following bodies that can widely dissemi-
nate the information listed in paragraph 2:

(a) national, regional and local authorities and development

agencies;

(b)

trade and professional associations;

(a) a major information activity publicising the launch of the

operational programme;

(b) at least one major information activity a year, presenting the

achievements of the operational programme;

(c)

(d)

flying the flag of the European Union during one week start-
ing 9 may,
in front of the premises of the managing
authority;

the publication, electronically or otherwise, of the list of ben-
eficiaries, the names of the operations and the amount of
public funding allocated to the operations.

Participants in operations supported by EFF and aimed at improv-
ing professional skills and training as well as beneficiaries receiv-
ing support for early departure from the fishing sector, including
early retirement, as provided for under Article 27(1)(d) of the
basic Regulation, shall not be named.

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Article 32

(b) a reference to the EFF: ‘European Fisheries Fund’;

Responsibilities of beneficiaries relating to information
and publicity measures for the public

For the purposes of Article 51 of the basic Regulation, the
1.
beneficiary shall be responsible for informing the public, by
means of the measures laid down in paragraphs 2, 3 and 4 of
this Article, about the assistance obtained from the EFF.

2. Where the total eligible cost of an operation co-financed
by the EFF, exceeds EUR 500 000 and consists in the financing
of infrastructure or of construction operations the beneficiary
shall put up a billboard at the site of the operation during its
implementation. The information referred to in Article 33 shall
take up at least 25 % of the billboard.

When the operation is completed the billboard shall be replaced
by the permanent explanatory plaque referred to in paragraph 3.

3. Where the total eligible cost of the operation exceeds
EUR 500 000 and consists in the purchase of a physical object
or the financing of infrastructure or of construction operations,
the beneficiary shall put up a permanent explanatory plaque that
is visible and of significant size no later than six months from
the date of completion of the operation.

The plaque shall state the type and name of the operation in
addition to the information referred to in Article 33. The infor-
mation referred to in that Article shall take up at least 25 % of
the plaque.

An explanatory plaque shall also be installed at the locations of
the groups financed under priority axis 4 of the basic Regulation.

4.
In appropriate cases, the beneficiary shall ensure that those
taking part in an operation co-financed by the EFF have been
informed of that funding.

The beneficiary shall provide a clear notice to the effect that the
operation being implemented has been selected under an opera-
tional programme co-financed by the EFF.

Any document, including any attendance or other certificate,
concerning such an operation shall
include a statement to
the effect that the operational programme was co-financed by
the EFF.

Article 33

Technical characteristics of information and publicity
measures for the operation

(c) a statement chosen by the managing authority, highlighting
the added value of the intervention of the Community, and
preferably: ‘Investing in sustainable fisheries’.

For small promotional objects, paragraph 1(b) and (c) shall

2.
not apply.

CHAPTER VI

FINANCIAL ENGINEERING INSTRUMENTS

Article 34

General provisions applicable to all financial engineering
instruments

Pursuant to Article 55(8) of the basic Regulation, as part
1.
of an operational programme, the EFF may co-finance expendi-
ture in respect of an operation comprising contributions to sup-
port financial engineering instruments for enterprises, primarily
to small and medium-sized enterprises (SMEs), including micro
enterprises,
as defined in Commission Recommendation
2003/361/EC (1) as of 1 January 2005, such as venture capital
funds, guarantee funds and loan funds including through hold-
ing funds.

The financial engineering instruments shall be in the form of
actions which make repayable investments or provide guaran-
tees for repayable investments, or both. The conditions set out
in Articles 35, 36 and 37 shall apply to them.

2.
The statement of expenditure, as regards financial engineer-
ing instruments, shall include the total expenditure paid in estab-
lishing or contributing to such instruments. However, at the
partial or final closure of the operational programme, the eli-
gible expenditure shall be the total of any payments for invest-
ment in enterprises from each of the financial engineering
instruments referred to in paragraph 1 or any guarantees pro-
vided, including amounts committed as guarantees by guarantee
funds and eligible management costs. The corresponding state-
ment of expenditure shall be corrected accordingly.

3.
Interest generated by payments from the operational pro-
gramme to financial engineering instruments shall be used to
finance financial engineering instruments for small and medium-
sized enterprises, including micro enterprises.

All information and publicity measures aimed at beneficia-
include the

1.
ries, potential beneficiaries and the public shall
following:

(a)

the emblem of the European Union, in accordance with the
graphic standards set out in Annex II and reference to the
European Union;

4.
Resources returned to the operation from investments
undertaken by financial engineering instruments or left over after
all guarantees have been honoured shall be reused by the com-
petent authorities of the Member States concerned for the ben-
efit of small and medium-sized enterprises,
including micro
enterprises.

(1) OJ L 124, 20.5.2003, p. 36.

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Article 35

Conditions applicable to all financial engineering
instruments

1. When the EFF finances operations comprising financial
engineering instruments, including those organised through hold-
ing funds, a business plan shall be submitted by the co-financing
partners or
authorised
representative.

shareholders or by

their duly

That business plan shall be assessed and its implementation
monitored by or under the responsibility of the Member State or
the managing authority. The assessment of the economic viabil-
ity of the investment activities of the financial engineering instru-
ments shall take into account all sources of income of the
enterprises concerned.

The business plan provided for in paragraph 1 shall specify

2.
at least the following:

The Commission shall not become a co-financing partner or
shareholder in financial engineering instruments.

4. Management costs may not exceed, on a yearly average, for
the duration of the assistance any of the following thresholds,
unless a higher percentage proves necessary after a competitive
tender:

(a) 2 % of the capital contributed from the operational pro-
gramme to holding funds, or of the capital contributed from
the operational programme or holding fund to the guaran-
tee funds;

(b) 3 % of the capital contributed from the operational pro-
gramme or the holding fund to the financial engineering
instrument in all other cases, with the exception of micro
credit instruments directed at micro enterprises;

(a)

the targeted market of enterprises and the criteria, terms and
conditions of financing them;

(c) 4 % of the capital contributed from the operational pro-
gramme or the holding fund to instruments directed at micro
enterprises.

(b)

the operational budget of
instrument;

the

financial

engineering

(c)

the ownership of the financial engineering instrument;

(d)

the co-financing partners or shareholders;

(e)

the by-laws of the financial engineering instrument;

(f)

the provisions on professionalism, competence and indepen-
dence of the management;

(g)

the justification for and intended use of the contribution
from EFF;

(h)

the policy of the financial engineering instrument concern-
ing exits from investments in enterprises;

(i)

the winding-up provisions of
the financial engineering
instrument, including the reutilisation of resources returned
to the financial engineering instrument from investments or
left over after all guarantees have been honoured, attribut-
able to the contribution from the operational programme.

3.
Financial engineering instruments, including holding funds,
shall be set up as independent legal entities governed by agree-
ments between the co-financing partners or shareholders or as a
separate block of finance within an existing financial institution.

Where the financial engineering instrument is established within
a financial institution, it shall be set up as a separate block of
finance, subject to specific implementation rules within the finan-
cial institution, stipulating, in particular, that separate accounts
are kept, which distinguish the new resources invested in the
financial engineering instrument, including those contributed by
the operational programme, from those initially available in the
institution.

5.
The terms and conditions for contributions from the opera-
tional programme to financial engineering instruments shall be
set out in a funding agreement, to be concluded between the
duly mandated representative of the financial engineering instru-
ment and the Member State or the managing authority.

The funding agreement referred to in paragraph 5 shall

6.
include at least:

(a)

the investment strategy and planning;

(b) monitoring of implementation in accordance with appli-

cable rules;

(c) an exit policy for the contribution from the operational pro-

gramme out of the financial engineering instrument;

(d)

the winding-up provisions of
the financial engineering
instrument, including the reutilisation of resources returned
to the financial engineering instrument from investments or
left over after all guarantees have been honoured, that are
attributable to the contribution from the operational
programme.

7.
The managing authority shall take precautions to minimise
any distortions of competition in the venture capital or lending
markets. Returns from equity investments and loans, less a pro
rata share of the management costs and performance incentives,
may be allocated preferentially to investors operating under the
market economy investor principle up to the level of remunera-
tion laid down in the bylaws of the financial engineering instru-
ments and they shall then be allocated proportionally among all
co-financing partners or shareholders.

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Article 36

Specific conditions applicable to holding funds

(h)

the exit policy of the holding fund out of the venture capi-
tal funds, guarantee funds or loan funds;

1. When the EFF finances financial engineering instruments
organised through holding funds, that is, funds set up to invest
in several venture capital funds, guarantee funds and loan funds,
the Member State or managing authority shall implement them
through one or more of the following forms:

(a)

the award of a public contract in accordance with applicable
public procurement law;

(b)

in other cases, where the agreement is not a public service
contract within the meaning of public procurement law, the
award of a grant, defined for this purpose as a direct finan-
cial contribution by way of a donation to:

(i)

the European Investment Bank or to the European
Investment Fund;

or

(ii) a financial institution without a call for proposals, if this
is pursuant to a national law compatible with the Treaty.

2. When the EFF finances financial engineering instruments
organised through holding funds, the Member State or the man-
aging authority, shall conclude a funding agreement with the
holding fund setting out
the funding arrangements and
objectives.

The funding agreement shall, where appropriate, take account of
the conclusions of an evaluation of gaps between the supply of
such instruments to, and demand for such instruments by, SMEs.

The funding agreement, referred to in paragraph 2, shall in

3.
particular make provision for:

(a)

the terms and conditions for contributions from the opera-
tional programme to the holding fund;

(b) a call for expressions of interest addressed to financial

intermediaries;

(c)

the appraisal,
intermediaries;

selection and accreditation of

financial

(d)

the setting up and monitoring of the investment policy,
which shall comprise at least an indication of the targeted
enterprises and the financial engineering products to be
supported;

(e)

reporting by the holding fund to the Member State or man-
aging authority;

(f) monitoring the implementation of investments in accor-

dance with applicable rules;

(g) audit requirements;

(i)

the winding-up provisions of the holding fund, including the
reutilisation of resources returned to the financial engineer-
ing instrument from investments made or left over after all
guarantees have been honoured which are attributable to the
contribution from the operational programme.

The terms and conditions for contributions to venture capi-
4.
tal funds, guarantee funds, and loan funds from holding funds
supported by the operational programme shall be set out in a
funding agreement, to be concluded between the venture capital
funds, guarantee fund and loan fund, on one hand, and the hold-
ing fund, on the other. The funding agreement shall include at
least the elements listed in Article 35(6).

Article 37

Specific conditions applicable to venture capital funds,
guarantee funds and loan funds

Financial engineering instruments, other than holding funds, shall
invest in enterprises, primarily in SMEs. Such investments may
only be made at the establishment, in the early stages, including
seed capital, or on the expansion of those enterprises, and only
in activities which the managers of the financial engineering
instruments judge potentially economically viable.

CHAPTER VII

MANAGEMENT, MONITORING AND CONTROL

SECTION 1

General provisions

Article 38

Intermediate bodies

1. Where one or more of the tasks of a managing authority
or certifying authority are performed by an intermediate body,
the relevant arrangements shall be formally recorded in writing.

2.
The provisions of this Regulation concerning the manag-
ing authority and certifying authority shall apply to the interme-
diate body.

Article 39

Managing authority

1.
For the purposes of the selection and approval of opera-
tions, under Article 59(a) of the basic Regulation, the managing
authority shall ensure that beneficiaries are informed of the spe-
cific conditions concerning the products or services to be deliv-
ered under the operation, the financing plan, the time limit for
execution, and the financial and other information to be kept
and communicated. It shall satisfy itself that the beneficiary has
the capacity to fulfil those obligations before the approval deci-
sion is taken.

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The verifications to be carried out by the managing author-
2.
ity under Article 59(b) of the basic Regulation shall cover the
administrative, financial, technical and physical aspects of opera-
tions, as appropriate.

The managing, certifying and audit authorities and the bod-
2.
ies, referred to in Article 61(3) of the basic Regulation, shall have
access to the information referred to in paragraph 1 of this
Article.

Verifications shall ensure that the expenditure declared is real, the
products or services have been delivered in accordance with the
approval decision, the applications for reimbursement by the
beneficiary are correct and that expenditure complies with Com-
munity and national rules. They shall include procedures to avoid
double-financing of expenditure with other Community or
national schemes and with other programming periods.

The verifications shall include the following procedures:

3.
At the written request of the Commission, the Member
State shall provide the Commission with the appropriate infor-
mation referred to in paragraph 1 within fifteen working days of
receipt of the request or any other agreed period, for the pur-
pose of carrying out documentary and on-the-spot checks. The
Commission may require the information referred to in para-
graph 1 at the level of the operations, measures, priority axes or
of the operational programme.

(a) administrative verifications in respect of each application for

reimbursement by beneficiaries;

Article 41

Audit trail

(b) on-the-spot verifications of individual operations.

3. Where on-the-spot verifications under paragraph 2(b) are
carried out on a sample basis for the operational programme, the
managing authority shall keep records describing and justifying
the sampling method and identifying the operations or transac-
tions selected for verifications.

The managing authority shall determine the size of the sample
in order to achieve reasonable assurance as to the legality and
regularity of the underlying transactions having regard to the
level of risk identified by the managing authority for the type of
beneficiaries and operations concerned.

The managing authority shall review the sampling method each
year.

The managing authority shall establish written standards
4.
and procedures for the verifications carried out under para-
graph 2 and shall keep records for each verification, stating the
work performed, the date and the results of the verification and
the measures taken in respect of any irregularities detected.

5. Where the managing authority is also a beneficiary under
the operational programme, arrangements for the verifications
referred to in paragraphs 2, 3 and 4 of this Article shall ensure
the adequate separation of
functions in accordance with
Article 57(1)(b) of the basic Regulation.

For the purposes of Article 59(f) of the basic Regulation, an audit
trail shall be considered adequate where, it complies with the fol-
lowing criteria:

(a)

it permits the aggregate amounts certified to the Commis-
sion to be reconciled with the detailed accounting records
and supporting documents held by the certifying authority,
managing authority, intermediate bodies and beneficiaries as
regards operations co-financed under
the operational
programme;

(b)

it permits verification of payment of the public contribu-
tion to the beneficiary;

(c)

it permits verification of the application of the selection cri-
teria established by the monitoring committee for the opera-
tional programme;

(d)

it contains, in respect of each operation, as appropriate, the
technical specifications and financing plan, documents con-
cerning the grant approval, documents relating to public
procurement procedures, progress reports and reports on
verifications and audits carried out.

Article 42

Audits of operations

Article 40

Data on operations to be communicated on request to the
Commission

1.
The accounting records of operations and the data on
implementation, referred to in Article 59(c) of the basic Regula-
tion, shall include at least the information set out in Annex III to
this Regulation. That information shall be disaggregated where
relevant on the basis of age and gender of beneficiaries.

1.
The audits referred to in Article 61(1)(b) of the basic Regu-
lation shall be carried out each 12-month period from
1 July 2008 on a sample of operations selected by a method
established or approved by the audit authority in accordance with
Article 43 of this Regulation.

The audits shall be carried out on-the-spot on the basis of docu-
mentation and records held by the beneficiary.

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The audits shall verify that the following conditions are

2.
fulfilled:

(a)

the operation meets the selection criteria for the operational
programme, has been implemented in accordance with the
approval decision and fulfils any applicable conditions con-
cerning its functionality and use or the objectives to be
attained;

(b)

the expenditure declared corresponds with the accounting
records and supporting documents held by the beneficiary;

(c)

the expenditure declared by the beneficiary is in compliance
with Community and national rules;

(d)

the public contribution has been paid to the beneficiary in
accordance with Article 80 of the basic Regulation.

3. Where any problems detected appear to be systemic in
nature and therefore entail a risk for other operations under the
operational programme, the audit authority shall ensure that fur-
ther examinations are carried out, including additional audits
where necessary, to establish the scale of any such problems. The
necessary preventive and corrective action shall be taken by the
responsible authorities.

4.
Only expenditure falling within the scope of the audit in
accordance with paragraph 1 shall be counted towards the
amount of expenditure audited, for the purposes of reporting in
the tables in point 9 of Part A of Annex VI and point 9 of Part A
of Annex VII.

Article 43

Sampling

1.
The sample of operations to be audited each 12-month
period shall in the first instance be based on a random statistical
sampling method as set out in paragraphs 2, 3 and 4. Additional
operations may be selected as a complementary sample as set out
in paragraphs 5 and 6.

2.
The method used to select the sample and to draw conclu-
sions from the results shall take account of internationally
accepted audit standards and be documented. Having regard to
the amount of expenditure, the number and type of operations
and other relevant factors, the audit authority shall determine the
appropriate statistical sampling method to apply. The technical
parameters of the sample shall be determined in accordance with
Annex IV.

3.
The sample to be audited in each 12-month period shall
be selected from those operations for which expenditure has been
declared to the Commission for the operational programme dur-
ing the year preceding the year in which the annual control
report, provided for in Article 61(1)(e)(i) of the basic Regulation,
is communicated to the Commission. For the first twelve month
period, the audit authority may decide to group the operations
for which expenditure has been declared to the Commission in
2007 and 2008 as a basis for the selection of the operations to
be audited.

The audit authority shall draw conclusions on the basis of
4.
the results of the audits relating to expenditure declared to the
Commission during the period referred to in paragraph 3 and
communicate them to the Commission in the annual control
report. In operational programmes for which the projected error
rate is above the materiality level, the audit authority shall anal-
yse its significance and take the necessary actions, including mak-
ing appropriate recommendations which shall be communicated
in the annual control report.

5.
The audit authority shall regularly review the coverage pro-
vided by the random sample, having regard in particular to the
need to have sufficient audit assurance for the declarations to be
provided at partial and final closure of the operational pro-
gramme. It shall decide on the basis of its professional judgment
whether it is necessary to audit a complementary sample of addi-
tional operations in order to take account of specific risk factors
identified and to guarantee for the programme sufficient cover-
age of different types of operation, beneficiaries, intermediate
bodies and priority axes.

6.
The audit authority shall draw conclusions on the basis of
the results of the audits of the complementary sample and com-
municate them to the Commission in the annual control report.
Where the number of detected irregularities is high or where sys-
temic irregularities have been detected, the audit authority shall
analyse the significance thereof and take the necessary actions
including making recommendations which shall be communi-
cated in the annual control report. The results of the audits on
the complementary sample shall be analysed separately from
those of the random sample. In particular, irregularities detected
in the complementary sample shall not be taken into account
when the error rate of the random sample is calculated.

Article 44

Documents presented by the audit authority

1.
The audit strategy referred to in Article 61(1)(c) of the basic
Regulation shall be established in accordance with the model set
out in Annex V to this Regulation. It shall be updated and
reviewed annually and, if necessary, during the course of the year.

The annual control report and the opinion referred to in
2.
Article 61(1)(e)(i) of the basic Regulation shall be based on the
systems audits and audits of operations carried out under
Article 61(1)(a) and (b) of that Regulation in accordance with the
audit strategy for the operational programme and shall be drawn
up in accordance with the models set out in Annex VI to this
Regulation.

3.
The closure declaration referred to in Article 61(1)(f) of the
basic Regulation shall be based on all the audit work carried out
by or under the responsibility of the audit authority in accor-
dance with the audit strategy. The closure declaration and final
control report shall be drawn up in accordance with the model
set out in Annex VII to this Regulation.

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If there is limitation in the scope of examination or if the
4.
level of irregular expenditure detected does not allow the provi-
sion of a unqualified opinion for the annual opinion referred to
in Article 61(1)(e) of the basic Regulation or in the closure dec-
laration referred to in Article 61(1)(f) of that Regulation, the audit
authority shall give the reasons and estimate the scale of the
problem and its financial impact.

In the event of partial closure of an operational pro-
5.
gramme, the declaration relating to the legality and regularity of
the transactions covered by the statement of expenditure referred
to in Article 85 of the basic Regulation shall be drawn up by the
audit authority in accordance with the model set out
in
Annex VIII to this Regulation and submitted with the opinion
referred to in Article 61(1)(e)(iii) of the basic Regulation

The procedure for certification of conformity of documents
5.
held on commonly accepted data carriers with the original docu-
ment shall be laid down by the national authorities and shall
ensure that the versions held comply with national legal require-
ments and can be relied on for audit purposes.

6. Where documents exist in electronic version only, the com-
puter systems used must meet accepted security standards that
legal
ensure that the documents held comply with national
requirements and may be relied on for audit purposes.

Article 46

Documents submitted by the certifying authority

Article 45

Availability of documents

Certified statements of expenditure and applications for
1.
payment, as referred to in Article 60(a) of the basic Regulation,
shall be drawn up in the format set out in Annex IX to this Regu-
lation and transmitted to the Commission.

1.
For the purposes of Article 87 of the basic Regulation, the
managing authority shall ensure that a record is available of the
identity and location of bodies holding the supporting docu-
ments relating to expenditure and audits, which includes all docu-
ments required for an adequate audit trail.

2.
By 31 March each year, as from 2008, the certifying
authority shall submit to the Commission a statement in accor-
dance with the model set out in Annex X identifying for each
priority axis of the operational programme:

2.
The managing authority shall ensure that the documents
referred to in paragraph 1 of this Article are made available for
inspection by, and extracts or copies thereof are supplied to, per-
sons and bodies entitled thereto, including at least authorised
staff of the managing authority, certifying authority, intermedi-
ate bodies, audit authority and the bodies referred to in
Article 61(3) of the basic Regulation and authorised officials of
the Community and their authorised representatives.

3.
The managing authority shall keep the information neces-
sary for the purposes of evaluation and reporting, including the
information referred to in Article 40, in relation to operations
referred to in Article 87(2) of the basic Regulation for the whole
of the period referred to in paragraph (1)(a) of that Article.

4.
The following at least shall be considered as commonly
accepted data carriers, as referred to in Article 87 of the basic
Regulation:

(a) photocopies of original documents;

(b) microfiches of original documents;

(c)

electronic versions of original documents;

(a)

the amounts withdrawn from statements of expenditure sub-
mitted during the preceding year following cancellation of
all or part of the public contribution for an operation;

(b)

the amounts recovered which have been deducted from
those statements of expenditure;

(c) a statement of amounts to be recovered as at 31 December
of the preceding year, classified by the year in which recov-
ery orders were issued.

3.
In order to proceed to the partial closure of the operational
programme, the certifying authority shall submit to the Commis-
sion a statement of expenditure referred to in Article 85 of the
basic Regulation in the format set out in Annex xI to this
Regulation.

Article 47

Description of management and control systems

The description of the management and control systems for the
operational programme referred to in Article 71(1) of the basic
Regulation shall contain information on the points referred to in
Article 57 of that Regulation, and the information set out in
Articles 48 and 49 of the present Regulation.

(d) documents existing in electronic version only.

That information shall be submitted in accordance with the
model set out in Part A of Annex XII to this Regulation.

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Article 48

Information concerning the managing authority, the
certifying authority and intermediate bodies

(d)

the procedures, where appropriate, for the supervision by
the audit authority of the work of the bodies involved in car-
rying out audits concerning the operational programme;

As regards the managing authority, the certifying authority and
each intermediate body, the Member State shall provide the Com-
mission with the following information:

(a) a description of the tasks entrusted to them;

(b) an organisation chart of each of them, a description of the
allocation of tasks between or within their departments, and
the indicative number of posts allocated;

(c)

the procedures for selecting and approving operations;

(d)

the procedures by which beneficiaries’ applications for reim-
bursement are received, verified and validated, and in par-
ticular the rules and procedures laid down for verification
purposes in Article 39, and the procedures by which pay-
ments to beneficiaries are authorised, executed and entered
in the accounts;

(e)

the procedures by which statements of expenditure are
drawn up, certified and submitted to the Commission;

(f)

a reference to the written procedures established for the pro-
cedures referred to in points (c), (d) and (e);

(g)

the eligibility rules laid down by the Member State and appli-
cable to the operational programme;

(h)

the system for keeping the detailed accounting records of
operations and data on implementation referred to in
Article 40(1) under the operational programme.

(e)

the procedures for the preparation of the annual control
report and the closure declaration.

Article 50

Assessment of the management and control systems

The report, referred to in Article 71(2) of the basic Regula-
1.
tion, shall be based on an examination of the systems descrip-
tion, of relevant documents concerning the systems and of the
system for keeping accounting records and data on the imple-
mentation of operations and on interviews with the staff in the
main bodies considered important by the audit authority, or
other body responsible for the report, in order to complete,
clarify or verify the information.

The opinion on the compliance of the systems, referred to
2.
in Article 71(2) of the basic Regulation, shall be drawn up in
accordance with the model set out in Part B of Annex XII to this
Regulation.

3. Where the management and control system concerned is
essentially the same as that in place for assistance approved under
Council Regulation (EC) No 1083/2006 (1), account may be taken
of the results of audits carried out by national and Community
auditors in relation to that system for the purposes of establish-
ing the report and opinion under Article 71(2) of the basic
Regulation.

SECTION 2

Derogations with regard to the control of operational
programmes referred to in Article 2

Article 49

Information concerning the audit authority and the bodies
referred to in Article 61(3) of the basic Regulation

Article 51

General derogations

As regards the audit authority and the bodies, referred to in
Article 61(3) of the basic Regulation, the Member State shall pro-
vide the Commission with the following information:

1.
For the operational programmes referred to in Article 2 of
this Regulation, the audit authority shall not be required to
present to the Commission an audit strategy as provided for in
Article 61(1)(c) of the basic Regulation.

(a) a

description of
inter-relationships;

their

respective

tasks

and

their

(b)

the organisation chart of the audit authority and of each of
the bodies involved in carrying out audits concerning the
operational programme, describing how their independence
is ensured, the indicative number of posts allocated and the
qualifications or experience required;

(c)

the procedures for monitoring the implementation of rec-
ommendations and corrective measures resulting from audit
reports;

2.
For the operational programmes referred to in Article 2 of
this Regulation, where the opinion on the compliance of the sys-
tem referred to in Article 71(2) of the basic Regulation is with-
out reservations, or where reservations have been withdrawn
following corrective measures, the Commission may conclude:

(a)

that it may rely principally on the opinion referred to in
Article 61(1)(e)(ii) of the basic Regulation with regard to the
effective functioning of the systems;

(1) OJ L 210, 31.7.2006, p. 25.

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(b)

that it will carry out its own on-the-spot audits only if there
is evidence to suggest shortcomings in the system affecting
expenditure certified to the Commission in a year for which
an opinion under Article 61(1)(e)(ii) of the basic Regulation
has been provided which contains no reservation in respect
of such shortcomings.

3. Where the Commission reaches the conclusion referred to
in paragraph 2 of this Article, it shall inform the Member State
concerned accordingly.

Where there is evidence to suggest shortcomings, it may require
the Member State concerned to carry out audits in accordance
with Article 72(3) of the basic Regulation or it may carry out its
own audits under Article 72(2) of that Regulation

Article 52

Establishment of bodies and procedures under national
law

1.
For the operational programmes referred to in Article 2, a
Member State may in addition to the general derogations pro-
vided for in Article 51, exercise the option of establishing, in
accordance with national rules, the bodies and procedures for
carrying out:

(a)

the functions of the managing authority in relation to the
verification of the co-financed products and services and
the basic
expenditure declared under Article 59(b) of
Regulation;

(b)

the functions of the certifying authority under Article 60 of
the basic Regulation;

(c)

the functions of the audit authority under Article 61 of the
basic Regulation.

2. Where a Member State exercises the option referred to in
paragraph 1 of this Article, it shall not be required to designate
a certifying authority and an audit authority, as provided for in
Article 58(1)(b) and (c) of the basic Regulation.

3. Where a Member State exercises the option referred to in
paragraph 1 of this Article, the provisions of Article 71 of the
basic Regulation shall apply mutatis mutandis.

The audits of operations referred to in Article 61(1)(b) of
3.
the basic Regulation shall be carried out in accordance with
national procedures. Articles 42 and 43 of this Regulation shall
not apply.

4.
Article 44 (2) to (5) shall apply mutatis mutandis to the
preparation of the documents issued by the national bodies
referred to in Article 52(1).

The annual control report and the annual opinion shall be drawn
up following, as appropriate, the models set out in Annex VI.

The obligations laid down in Article 46(2), shall be carried

5.
out by the national bodies referred to in Article 52(1).

The statement of expenditure shall be drawn up following the
models set out in Annexes IX and XI.

6.
The information to be included in the description of the
management and control systems referred to in Articles 47, 48
and 49 shall, where applicable, include the information concern-
ing the national bodies referred to in Article 52(1).

CHAPTER VIII

IRREGULARITIES

Article 54

Definitions

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

(a)

(b)

‘economic operator’: any natural or legal person or other
entity taking part in the implementation of assistance from
the EFF, with the exception of a Member States exercising
its prerogatives as a public authority;

‘primary administrative or judicial finding’: a first written
assessment by a competent authority, either administrative
or judicial, concluding on the basis of specific facts that an
irregularity has been committed, without prejudice to the
possibility that this conclusion may subsequently have to be
revised or withdrawn as a result of developments in the
course of the administrative or judicial procedure;

‘suspected fraud’: an irregularity giving rise to the initiation
of administrative or judicial proceedings at national level in
order to establish the presence of intentional behaviour, in
particular fraud, as defined in Article 1(1)(a) of the Conven-
tion drawn up on the basis of Article K.3 of the Treaty of
the European Union, on the protection of the European
Communities’ financial interests (1);

Article 53

Specific provisions for bodies and procedures established
under national law

(c)

This Article shall apply to operational programmes in
1.
respect of which a Member State has exercised the option pro-
vided for in Article 52(1).

The verifications referred to in Article 39(2) shall be car-

2.
ried out by the national bodies referred to in Article 52(1).

(1) OJ C 316, 27.11.1995, p. 49.

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(d)

‘bankruptcy’: insolvency proceedings as defined in Article 2
(a) of Council Regulation (EC) No 1346/2000 (1).

(l)

the total budget and the public contribution approved for
the operation and the distribution of
its co-financing
between Community and the national contribution;

Article 55

Initial reporting — derogations

(m) the amount of the public contribution affected by the irregu-
larity and the corresponding Community contribution at
risk;

1. Without prejudice to the obligations under Article 70 of
basic Regulation, within two months following the end of each
quarter, Member States shall report to the Commission any
irregularities which have been the subject of a primary adminis-
trative or judicial finding.

(n) where no payment of the public contribution has been made
to the persons or other entities identified under point (k),
the amounts which would have been unduly paid had the
irregularity not been identified;

In that report, Member States shall in all cases give details con-
cerning the following:

(o)

the suspension of payments, where applicable, and the pos-
sibilities of recovery;

(a)

the EFF, the objective, the operational programme, the pri-
ority axis and the operation concerned and the Common
Identification Code (CCI) number;

(b)

the provision which has been infringed;

(c)

the date and source of the first information which led to a
suspicion that an irregularity has been committed;

(d)

the practices employed in committing the irregularity;

(e) where appropriate, whether the practice gives rise to a sus-

picion of fraud;

(f)

the manner in which the irregularity was discovered;

(g) where appropriate, the Member States and third countries

involved;

(p)

the nature of the irregular expenditure.

By way of derogation from the paragraph 1, the following

2.
cases need not be reported:

(a)

cases where the irregularity consists solely in the failure to
execute an operation, in whole or in part, included in the
co-financed operational programme owing to the bank-
ruptcy of the beneficiary;

(b) cases brought to the attention of the managing or certifying
authority by the beneficiary voluntarily and before detec-
tion by either of them, whether before or after the payment
of the public contribution;

(c)

cases which are detected and corrected by the managing or
certifying authority before any payment to the beneficiary
of the public contribution and before the inclusion of the
expenditure concerned in a statement of expenditure sub-
mitted to the Commission.

(h)

the period during which, or the moment at which, the
irregularity was committed;

However, irregularities preceding a bankruptcy and cases of sus-
pected fraud must be reported.

(i)

the national authorities or bodies which drew up the official
report on the irregularity and the authorities responsible for
the administrative or judicial follow-up;

(j)

the date on which the primary administrative or judicial find-
ing on the irregularity was established;

(k)

the identity of the natural and legal persons involved or of
any other participating entities, except where such informa-
tion is irrelevant for the purposes of combating irregulari-
ties, given the nature of the irregularity concerned;

(1) OJ L 160, 30.6.2000, p. 1.

3. Where some of the information referred to in paragraph 1,
and in particular information concerning the practices employed
in committing the irregularity and the manner in which it was
discovered, is not available, Member States shall as far as pos-
sible supply the missing information when submitting subse-
quent quarterly reports of irregularities to the Commission.

4.
If national provisions provide for the confidentiality of
investigations, the communication of the information shall be
subject to the authorisation of the competent court or tribunal.

5. Where a Member State has no irregularities to report under
paragraph 1, it shall inform the Commission of that fact within
the time limit set out in that paragraph.

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Article 56

Urgent cases

That information shall be sufficiently detailed so as to allow the
Commission to take such decision as soon as possible, after con-
sulting the authorities of the Member States concerned.

Each Member State shall immediately report to the Commission
and, where necessary, to the other Member States concerned, any
irregularities discovered or supposed to have occurred, where it
is feared that:

It shall include at least:

(a) a copy of the award decision;

(a)

they may very quickly have repercussions outside its
territory;

(c) a copy of the recovery order;

(b)

the date of the last payment made to the beneficiary;

or

(b)

they show that a new malpractice has been employed.

Article 57

Reporting of follow-up and non-recovery

1. Within two months following the end of each quarter,
Member States shall inform the Commission, with a reference
back to any previous reports made under Article 55, of the pro-
cedures instituted with respect to all irregularities previously noti-
fied and of any important changes resulting from them.

(d)

in the case of bankruptcies subject to the reporting under
Article 55(2), a copy of the document attesting the benefi-
ciary’s insolvency;

(e) an outline description of the measures taken by the Mem-
ber State, with an indication of their dates, to recover the
relevant amount.

In the case referred to in paragraph 2, the Commission may
3.
expressly request the Member State to continue the recovery
procedure.

Article 58

Electronic transmission

That information shall include at least the following:

(a)

the amounts which have been, or are expected to be,
recovered;

The information referred to in Articles 55 and 56 and
Article 57(1) shall be submitted, whenever it is possible to do
so, by electronic means, using the module provided by the Com-
mission for this purpose via a secure connection

(b) any interim measures taken by Member States to safeguard

the recovery of any sums unduly paid;

Article 59

Reimbursement of judicial costs

(c) any judicial and administrative procedures instituted with a
view to recovering any sums unduly paid and to imposing
sanctions;

(d)

the reasons for any abandonment of recovery procedures;

Where the competent authorities of a Member State decide, at
the express request of the Commission, to initiate or continue
judicial proceedings with a view to recovering amounts unduly
paid, the Commission may undertake to reimburse the Member
State all or part of the judicial costs and costs arising directly
from the proceedings, on presentation of documentary evidence,
even where the proceedings are unsuccessful.

(e) any abandonment of criminal prosecutions.

Member States shall report to the Commission administrative or
judicial decisions, or the main points thereof, concerning the ter-
mination of such procedures and shall state in particular whether
or not the findings are such that fraud is suspected. In the case
referred to in point (d), Member States shall, as far as possible,
notify the Commission before a decision is taken.

Article 60

Contacts with Member States

1.
The Commission shall maintain appropriate contacts with
the Member States concerned for the purpose of supplementing
the information supplied on the irregularities referred to in
Article 55, on the procedures referred to in Article 57, and, in
particular, on the possibility of recovery.

2. Where a Member State considers that an amount cannot
be recovered or is not expected to be recovered, it shall inform
the Commission, in a special report, of the amount not recov-
ered and the facts relevant to the decision on apportionment of
the loss under Article 70(2) of basic Regulation.

2.
Independently of the contacts referred to in paragraph 1
the Commission shall inform Member States where the nature
of the irregularity is such as to suggest that identical or similar
practices could occur in other Member States.

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The Commission shall organise information meetings at
3.
Community level for representatives of the Member States in
order to examine with them the information obtained pursuant
to Articles 55, 56 and 57, and paragraph 1 of this Article. The
examination shall focus on the lessons to be learned from the
information in connection with irregularities, preventive mea-
sures and legal proceedings.

4.
At the request of a Member State or the Commission, the
Member State and the Commission shall consult with one
another for the purpose of closing any loopholes prejudicial to
Community interests which become apparent in the course of
the enforcement of provisions in force.

The third subparagraph of this paragraph shall also apply to cases
of bankruptcy exempted from the reporting obligation provided
for in Article 55(1).

2. Member States which have not adopted the euro as their
currency by the date the irregularity is established shall convert
expenditure paid in national currency into euro, in accordance
with Article 95 of the basic Regulation. Where the expenditure
has not been registered in the accounts of the certifying author-
ity, the most recent accounting exchange rate published electroni-
cally by the Commission shall be used.

Article 61

Use of information

The Commission may use any information of a general or opera-
tional nature communicated by Member States under this Regu-
lation to perform risk analyses, and may, on the basis of the
information obtained, produce reports and develop early-
warning systems serving to identify risks more effectively.

CHAPTER IX

ELECTRONIC EXCHANGE OF DATA

Article 64

Computer system for data exchange

Article 62

The provision of information to Committees

For the purpose of Articles 65 and 75 of the basic Regulation, a
computer system for exchange of data shall be established as a
tool for the exchange of all data relating to the operational
programme.

The Commission shall regularly inform the Member States, in the
framework of the advisory committee for the coordination of
fraud prevention set up by Commission Decision 94/140/EC (1),
of the order of magnitude of the funds involved in the irregulari-
ties which have been discovered and of the various categories of
irregularity, broken down by type and number. The committee
referred to in Article 101 of the basic Regulation shall also be
informed.

The exchange of data between each Member State and the Com-
mission shall be carried out using that computer system, estab-
lished by the Commission, which permits the secure exchange
of data between the Commission and each Member State.

The Member States shall be involved in the further development
of the computer system for data exchange.

Article 63

Irregularities under the reporting threshold

Article 65

1. Where the irregularities relate to amounts of less than
EUR 10 000 chargeable to the general budget of the European
Communities, Member States shall not submit to the Commis-
sion the information provided for in Articles 55 and 57 unless
the latter expressly requests it.

However, in accordance with Article 60(f) of the basic Regula-
tion, Member States shall keep accounts of amounts below that
threshold that are recoverable and of amounts recovered or with-
drawn following cancellation of the contribution to an opera-
tion and shall repay the recovered amounts to the general budget
of the European Communities.

Without prejudice to the obligations arising directly out of
Article 70(1)(b) of the basic Regulation, the Member State and
the Community shall share any losses arising from amounts
below the threshold that cannot be recovered in accordance with
the co-financing rate applicable to the operation concerned. The
procedure set out in Article 57(2) of this Regulation shall not
apply unless the Commission decides otherwise.

The content of computer system for data exchange

1.
The computer system for data exchange shall contain infor-
mation of common interest to the Commission and the Member
States, and at least the following data necessary for financial
transactions:

(a)

the financing plan for operational programmes in accor-
dance with the model set out in Part B of Annex I;

(b)

statements of expenditure and applications for payment in
accordance with the model set out in Annex IX;

(c)

the annual statement on withdrawn and recovered amounts
and pending recoveries in accordance with the model set out
in Annex X;

(1) OJ L 61, 4.3.1994, p. 27.

(d) annual forecasts of likely applications for payment in accor-

dance with the model set out in Annex XIII;

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(e)

the financial section of the annual and final reports on imple-
mentation in accordance with the model set out in point 3.3
of Annex XIV.

In addition to paragraph 1, the computer system for data
2.
exchange shall contain at least the following documents and data
of common interest enabling monitoring to be carried out:

(a)

the national strategic plan referred to in Article 15 of the
basic Regulation;

(b)

the operational programme, including any revisions of it in
accordance with the model set out in Part A of Annex I;

(c)

the Commission decision concerning the contribution of the
EFF;

Exchanges of data and transactions shall bear an electronic
3.
signature as defined in Article 2(1) of Directive 1999/93/EC. The
Member States and the Commission shall recognise the legal
effectiveness and admissibility of the electronic signature used in
the computer system for data exchange as evidence in legal
proceedings.

4.
The cost of developing the computer system shall be
financed by the general budget of the European Communities
under Article 46(1) of the basic Regulation. Any costs of an inter-
face between the common computer system for data exchange
and national, regional and local computer systems and any costs
of adapting national regional and local systems to requirements
under the basic Regulation shall be eligible under Article 46(2)
of that Regulation.

Article 67

(d)

the annual and final reports on implementation in accor-
dance with the model set out in Annex XIV;

Transmission of data through the computer system for
data exchange

(e)

the audit strategy in accordance with the model set out in
Annex V;

(f)

the description of management and control system in accor-
dance with the model set out in Part A of Annex XII;

(g)

the reports and opinions of audits in accordance with the
models set out in Annexes VI, VII, VIII and Part B of
Annex XII and correspondence between the Commission
and each Member State;

(h)

the statements of expenditure concerning partial closure in
accordance with the model set out in Annex XI;

(i)

the annual statement on withdrawn and recovered amounts
and pending recoveries in accordance with the model set out
in Annex X.

The data referred to in paragraphs 1 and 2 shall, where

3.
applicable, be transmitted in the format given in the Annexes.

1.
The computer system for data exchange shall be accessible
to the Member States and the Commission either directly or via
an interface for automatic synchronisation and recording of data
with national, regional and local computer management systems.

2.
The date taken into account for the forwarding of docu-
ments to the Commission shall be the date on which the Mem-
ber State records the documents into the computer system for
data exchange.

In cases of force majeure, and in particular of malfunction-
3.
ing of the computer system for data exchange or a lack of a last-
ing connection, the Member State concerned may forward to the
Commission the documents required by the basic Regulation in
hard copy, in accordance with the model forms set out in Annex I
and Annexes V to XIV to this Regulation. As soon as the cause
of force majeure ceases, the Member State shall record the corre-
sponding documents into the computer system for data exchange
without delay. By way of derogation from paragraph 2, the date
to be taken into account for submission shall be deemed to be
the date of submission of the documents in hard copy.

Article 66

Functioning of the computer system for data exchange

CHAPTER X

PERSONAL DATA

The Commission and the authorities designated by the
1.
Member State pursuant to the basic Regulation as well as the
bodies to which that task has been delegated shall record into
the computer system for data exchange the documents for which
they are responsible and any update thereto, in the required
format.

2. Member States shall centralise and submit to the Commis-
sion requests for access rights to the computer system for data
exchange.

Article 68

Protection of personal data

1. Member States and the Commission shall take all neces-
sary measures to prevent any unauthorised disclosure of, or
access to, the information referred to in Article 40(1), informa-
tion collected by the Commission in the course of its audits, and
the information referred to in Chapter VIII.

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The information referred to in Article 40(1), of this Regu-
2.
lation together with information collected by the Commission in
the course of its audits, shall be used by the Commission for the
sole purpose of fulfilling its responsibilities provided for in
Article 72 of the basic Regulation.

CHAPTER XI

FINAL PROVISIONS

Article 69

Repeal

The European Court of Auditors and the European Anti-Fraud
Office shall have access to that information.

Regulations (EC) No 2722/2000, (EC) No 908/2000 and (EC)
No 366/2001 are repealed. References to the repealed Regula-
tions shall be construed as references to this Regulation.

3.
The information referred to in Chapter VIII shall not be
sent to persons, other than those in the Member States or within
the Community institutions whose duties require that they have
access to it, unless the Member State supplying such informa-
tion has expressly so agreed.

4.
Any personal data included in the information referred to
in point (d) of the second paragraph of Article 31 shall only be
processed for the purposes specified in that Article.

The provisions of the Regulations repealed shall continue to
apply
(EC)
No 2792/1999.

under Regulation

assistance

approved

to

Article 70

Entry into force

This Regulation shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

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

Done at Brussels, 26 March 2007.

For the Commission
Joe BORG
Member of the Commission

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ANNEX I

OPERATIONAL PROGRAMME

PART A

Content of an operational programme

Information referred to in points 3 and 4 shall be provided in a summary form where it is included in the national stra-
tegic plan.

1. TITLE OF THE OPERATIONAL PROGRAMME, MEMBER STATE

2. GEOGRAPHICAL ELIGIBILITY

Identify:

(1)

‘convergence objective’ regions (if relevant);

(2)

‘Non-convergence objective’ regions (if relevant).

3. ANALYSIS

(a) General description of the fishing sector in the Member State including:

(1)

an analysis of national and/or local circumstances;

(2)

an analysis of convergence regions and non-convergence regions;

(3) main lessons learned from the previous programming period or from similar experience in other Regions or

Member State as well as the findings of the ex ante evaluation when available;

(4)

context indicators and where relevant, national or regional statistics collected by Eurostat as well as in other
sources of statistical data. Where relevant, the indicators listed in the National Strategic Plan for the descrip-
tion of the fisheries sector shall be used.

(b) Driving forces and development tendencies, including the sectoral and regional dimension of the socio-economic
development of the fisheries sector. The description of the strengths and weaknesses, opportunities and threats in
the form of a SWOT (strengths, weaknesses, opportunities and threats) analysis aiming to identify the strategic
choices made by the Member State for the operational programme and the priority axes.

(c) Description of:

(1)

the environmental situation including, where relevant, the results of the Strategic Environmental Assessment;

(2)

the situation in terms of equality between men and women with regard to labour market opportunities,
including constraints on specific groups, where appropriate;

(d) Main outcomes of the analysis.

4. STRATEGY AT OPERATIONAL PROGRAMME LEVEL

Strategy chosen to meet strengths and weaknesses including:

(1) overall objective(s) of the operational programme using impact indicators (1);

(2)

specific objectives which the operational programme’s priorities aim to achieve, using result indicators (2);

(3)

calendar and intermediary objectives.

(1) The impact indicators refer to the consequences of the operational programme beyond the immediate effects.
(2) The result indicators relate to the direct and immediate effects on beneficiaries brought about by the operational programme.

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5. SUMMARY OF THE EX ANTE EVALUATION

Include a summary of the ex ante evaluation that will identify and appraise the elements referred to in Article 48 of
Regulation (EC) No 1198/2006.

The ex ante evaluation shall address also the requirements of the environmental assessment provided for by Directive
2001/42/EC of the European Parliament and of the Council (1) (the ‘Strategic Environmental Assessment Directive’).

The complete ex ante evaluation shall be presented as an annex to the operational programme.

6. PROGRAMME’S PRIORITY AXES

(a) Coherence and justification of the priority axes chosen, having regard to:

(1) The relevant part of the national strategic plan;

(2)

guiding principles of the operational programme (Article 19 of Regulation (EC) No 1198/2006);

(3) outcomes of the ex ante evaluation referred to in Article 48 of Regulation (EC) No 1198/2006.

(b) Description of each priority axis including:

(1) main objectives of the priority axis;

(2) baseline and quantified targets using the indicators referred to in Point 4.2;

(3)

justification of the average rate of co-financing (if relevant), target groups/sectors/areas and/or beneficiaries
for the overall operational programme and for each priority axis;

(4)

a description of the main measures proposed for each priority axis resulting of the strategy proposed;

(5)

information on demarcation with similar activities financed by the European Agricultural Fund for Rural
Development, the Structural Funds and by the Cohesion Fund, as well as measures taken to ensure comple-
mentarity with these funds and other existing financial instruments, where appropriate.

(c)

Specific information required for the priority axes and measures (if relevant).

— Priority axis 1: Measures for the adaptation of the Community fishing fleet

— Public aid for permanent cessation of fishing activities

Description of priority given to the financing of recovery plans

Description of the methods for the calculation of premiums for the permanent cessation of fishing
activities

— Public aid for temporary cessation of fishing activities

Description of the methods for the calculation of premiums for temporary cessation of fishing activities

— Investment on board fishing vessels and selectivity

Description of the conditions applied where Member States choose the option to allow that the reduc-
tion of engine power is achieved by a group of vessels and a description of the mechanism put in place
for the supervision of compliance with these conditions.

Description of the objective criteria used for the establishment of the maximum amount for the total
eligible expenditure to be supported per fishing vessel over the entire programming period for invest-
ment on board vessels and selectivity under Article 25 of Regulation (EC) No 1198/2006 and in accor-
dance with Article 6(2) of this Regulation.

(1) OJ L 197, 21.7.2001, p. 30.

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— Small scale coastal fishing

Description of the methods for the calculation of socio economic compensations provided for under
Article 26(3) of Regulation (EC) No 1198/2006 in favour of small scale coastal fishing.

Description of the methods for the calculation of premiums for fishers and owners of fishing vessels
provided for under Article 26(4) of Regulation (EC) No 1198/2006 in favour of small scale coastal
fishing.

— Socio-economic compensation for the management of the Community fishing fleet

Description of the methods for the calculation of socio-economic compensations provided for under
Article 27 of Regulation (EC) No 1198/2006.

— Priority axis 2: aquaculture, inland fishing, processing and marketing of fishery and aquaculture

products:

— Measures for productive investments in aquaculture

Description of how priority to micro and small enterprises is ensured.

— Inland fishing

Description of the mechanisms put in place to ensure that the investments supported under Article 33
of Regulation (EC) No 1198/2006 shall not jeopardise the equilibrium between the fleet size and the
corresponding fish resources available.

Description of the measures to be taken in order to ensure that the vessels receiving assistance under
Article 33 of Regulation (EC) No 1198/2006 shall continue to operate exclusively in inland waters.

Description of the objective criteria used for the establishment of the maximum amount for the total
eligible expenditure to be supported per vessel operating in inland vessel over the entire programming
period for investment on board vessels and selectivity under Article 33 of Regulation (EC) No 1198/2006
and in accordance with Article 6(2) of this Regulation.

Description of the methods for the calculation of premiums for the reassignment of vessels operating
in inland fishing to activities outside fishing and the measures to be taken in order to ensure that the
vessels receiving assistance from EFF shall not return to operate in inland fishing.

Description of the methods for the calculation of premiums for temporary cessation of fishing activi-
ties under Article 33(4) of Regulation (EC) No 1198/2006.

— Investments in processing and marketing

Description of how priority to micro and small enterprises is ensured.

— Priority axis 4: sustainable development of fisheries areas

Procedures and criteria for selecting the fisheries areas. Justification for the selection of fisheries areas whose
size falls outside the limits set out in Article 43(3) of Regulation (EC) No 1198/2006

Procedures, criteria and timetable for selecting the groups, including indicative number of groups and planned
percentage of fisheries areas to be covered by the local development strategies

Description of the management arrangements and financial circuits as far as the beneficiary, including descrip-
tion of the procedure for the selection of the operations and the role and tasks of the groups with regard the
management, monitoring and control systems

Justification for the running costs whose cost exceeds the ceiling fixed under Article 44(5) of Regulation
(EC) No 1198/2006.

Identification of the measures eligible for support by more than one Community support instrument and
justification of the option chosen

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— Priority axis 5: Technical assistance

Justification of actions relating to the preparation, monitoring, evaluation, publicity, control and audit as
well as networking whose cost exceed the ceiling fixed under Article 46(2) of Regulation (EC) No 1198/2006.

7. FINANCIAL PROVISIONS

To be drawn up in accordance with this Annex, Part B: Financing plans for the operational programme.

8.

IMPLEMENTING PROVISIONS

(a) Designation by the Member State of the entities provided for in Article 58 of Regulation (EC) No 1198/2006 or
where the Member State exercises the option provided for in Article 52 of this Regulation the designation of the
bodies and procedures in accordance with the rules laid down in Article 53 of this Regulation.

(b) The body responsible for receiving payments made by the Commission and the body or bodies responsible for

making payments to the beneficiaries.

(c) Description of procedures for mobilisation and circulation of financial flows in order to ensure their transparency.

(d) Description of the monitoring and evaluation system as well as the composition of the Monitoring Committee.

(e) The arrangements (to be) agreed between the Commission and the Member State for the computerised exchange

of data needed to fulfil the management, monitoring and evaluation requirements.

(f)

The designation of the partners referred to in Article 8 of Regulation (EC) No 1198/2006 and the results of their
cooperation. List of the consulted partners and supply of a summary of the results of the consultations. For the
purposes of Article 8(2) of Regulation (EC) No 1198/2006, Member States shall, taking into account the need to
promote equality between men and women and sustainable development through integration of environmental
protection and enhancement, consider the involvement of relevant stakeholders, including non governmental
organisations.

(g) The elements aiming at ensuring the information and publicity of the operational programme in accordance with

the rules laid down in Article 28 of this Regulation.

PART B

Financing plan for the operational programme

Table I: Financing plan of the operational programme giving the annual commitment of the EFF in the
operational programme separately, where appropriate, for the regions eligible under the convergence objective
and the non-convergence objective

Commitments shall be made on an annual basis according to the following plan:

Operational programme reference (CCI number):

Year by source for the programme, in EUR:

Convergence objective regions

Year

EFF

2007

2008

2009

2010

2011

2012

2013

Total EFF

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Non-convergence objective regions

Year

EFF

2007

2008

2009

2010

2011

2012

2013

Total EFF

Table II: Financing plan of the operational programme giving, separately for the whole programming period,
and for each priority axis, and separately, where appropriate, for regions eligible under the convergence
objective and the non-convergence objective, the amount of the total financial allocation of the EFF in the
operational programme, the national public contribution and the rate of reimbursement by priority axis

Operational programme reference (CCI number):

Priority axes in EUR

Table II: Financial table for operational programme by priority axis

Convergence objective regions

Priority

Total public
a = (b + c)

EFF contribution
(b)

National contribu-
tion
(c)

EFF co-financing
rate (1)
(d) = (b) / (a) × 100

Priority axis 1

Priority axis 2

Priority axis 3

Priority axis 4

Priority axis 5 (2)

Total

(1) The EFF co-financing rate may be rounded-off in the table. The precise rate used to reimburse payments is the percentage (d).
(2)

In the case of operational programmes covering a mix of regions eligible under the convergence objective and the non-convergence
objective, the total public contribution for priority axis 5 may be allocated to the predominant type of regions which have the highest
total amount of public contribution in the operational programme.

Non-convergence objective regions

Priority

Total public
a = (b + c)

EFF contribution
(b)

National contribu-
tion
(c)

EFF co-financing
rate (1)
(d) = (b) / (a) × 100

Priority axis 1

Priority axis 2

Priority axis 3

Priority axis 4

Priority axis 5 (2)

Total

(1) The EFF co-financing rate may be rounded-off in the table. The precise rate used to reimburse payments is the percentage (d).
(2)

In the case of operational programmes covering a mix of regions eligible under the convergence objective and the non-convergence
objective, the total public contribution for priority axis 5 may be allocated to the predominant type of regions which have the highest
total amount of public contribution in the operational programme.

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INSTRUCTIONS FOR CREATING THE EMBLEM AND A DEFINITION OF THE STANDARD COLOURS

ANNEX II

Symbolic description

Against a background of blue sky, 12 golden stars form a circle representing the union of the peoples of Europe. The
number of stars is fixed, 12 being the symbol of perfection and unity.

Heraldic description

On an azure field a circle of twelve golden mullets, their points not touching.

Geometric description

The emblem has the form of a blue rectangular flag of which the fly is one and a half times the length of the hoist. Twelve
gold stars situated at equal intervals form an invisible circle whose centre is the point of intersection of the diagonals of
the rectangle. The radius of the circle is equal to one third of the height of the hoist. Each of the stars has five points
which are situated on the circumference of an invisible circle whose radius is equal to 18th of the height of the hoist. All
the stars are upright, i.e. with one point vertical and two points in a straight line at right angles to the mast. The circle is
arranged so that the stars appear in the position of the hours on the face of a clock. Their number is invariable.

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Regulation colours

The emblem is in the following colours:

PANTONE REFLEX BLUE for the surface of the rectangle;

PANTONE YELLOW for the stars.

Four-colour process

If the four-colour process is used, recreate the two standard colours by using the
four colours of the four-colour process.

PANTONE YELLOW is obtained by using 100 % ‘Process Yellow’.

PANTONE REFLEX BLUE is obtained by mixing 100 % ‘Process Cyan’ and 80 %
‘Process Magenta’.

Internet

In the web-palette PANTONE REFLEX BLUE corresponds to colour RGB:0/0/153
(hexadecimal: 000099) and PANTONE YELLOW to colour RGB:255/204/0 (hexa-
decimal: FFCC00).

Monochrome reproduction process

Using black, outline the rectangle in black and print the stars in black on
white.

Using blue (Reflex Blue), use 100 % with the stars reproduced in negative
white.

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Reproduction on a coloured background

If there is no alternative to a coloured background, put a white
border around the rectangle, the width of the border being
1/25th of the height of the rectangle.

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ANNEX III

LIST OF DATA TO BE COMMUNICATED ON REQUEST TO THE COMMISSION UNDER ARTICLE 40

The data on operations that the Commission may request at any time under Article 40 of this Regulation comprises the
following information, without prejudice to other information required for financial management, monitoring, control or
evaluation and specified in Regulation (EC) No 1198/2006.

At the written request of the Commission, the Member State shall provide the Commission with the appropriate informa-
tion within 15 working days of receipt of the request or other agreed period for the purpose of carrying out documentary
and on-the-spot checks. The Commission may require the information at the level of the operations, measures, priority
axes or of the operational programme.

Member State

Details of the operation

— Convergence objective

— Non-convergence objective

(delete as appropriate)

Short description of the operation using data listed here after, where appropriate

C.C.I. (common identification code) for programme:

Commission Decision approving the Operational programme … No … of ../../200..

Information on individual operations

Financial data expressed in EUR

Wording of columns: see hereafter.

(1)

(2)

(3)

…

…

…

…

…

…

(16)

(17)

(18)

Name, status and signature of representative of competent authority:

Date: ../../20..

Wording of table columns

(Information to be provided for each operation)

Columns 1 to 5: administrative details of operation

(1) Operation identification number (number allocated by the managing authority when an administrative decision grant-

ing public aid is taken — 20 characters maximum).

(2)

(To be completed only where the operation comes under Priority axis 1: Community Fleet Register number (CFR) (do
not give registration number); an operation shall concern only one vessel.

(3) The place where the operation is carried out (commune).

(4) NUTS III code for the place where the operation is carried out.

(5) Beneficiary (business name).

(6) Gender (male, female).

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Columns 7 to 10: expenditure forecasts under the operation in accordance with the administrative decision
granting public aid taken by managing authority

(7)

Total cost taken into account in the decision granting public aid (EUR).

(8)

Total public cost taken into account in the decision granting public aid (EUR).

(9)

EFF aid granted to the operation (EUR).

(10) Date of the administrative decision granting public aid (dd/mm/yyyy).

Columns 11 to 15: physical data concerning the operation (classification and physical implementation)

(11) Measure (2 digits) in accordance with nomenclature (individual operation may concern one measure only)

(12) Action (1 digit) in accordance with nomenclature (individual operation may consist of more than one action; in that

case, give one action per line and use several lines).

(13)

Implementation data (1 or 2 digits) in accordance with nomenclature (an action forming part of an operation may
feature more than one implementation data; in that case, give one implementation data only per line and use several
lines).

(14) Physical quantity achieved (one quantity for each implementation data).

(15) State of implementation of operation (1 digit): code 0 (operation covered by a decision granting aid but for which no
expenditure has yet been declared to the managing authority)/code 1 (operation under way)/code 2 (operation inter-
rupted following partial implementation)/code 3 (operation abandoned following partial implementation)/code 4
(operation completed).

Columns 16 to 18: information concerning financial implementation of operation — statement of eligible
expenditure and corresponding public aid

(16) Eligible expenditure certified and actually paid by beneficiaries (EUR) whose accuracy has been checked in accor-

dance with Article 39(2) of this Regulation.

(17) National contribution (EUR): aids paid to beneficiaries by the Member State, including subsidies and other public
aids, at national, regional or local level, within the limits set by Annex II to Regulation (EC) No 1198/2006.

(18) EFF aid paid to beneficiaries (EUR).

NOMENCLATURE OF PRIORITY AXES, MEASURES, ACTIONS AND IMPLEMENTATION DATA

Priority axis 1: Measures for the adaptation of the Community fishing fleet

Measure 1.1: Permanent cessation of fishing activities

— A c t i o n 1 : S c r a p p i n g

— Data 1: GT

— Data 2: kW

— A c t i o n 2 : R e a s s i g n m e n t

f o r a c t i v i t i e s o u t s i d e f i s h i n g

— Data 1: GT

— Data 2: kW

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— A c t i o n 3 : R e a s s i g n m e n t

f o r t h e c r e a t i o n o f a r t i f i c i a l r e e f s

— Data 1: GT

— Data 2: kW

Measure 1.2: Temporary cessation of fishing activities

— A c t i o n 1 : T e m p o r a r y c e s s a t i o n o f a c t i v i t i e s

— Data 1: Number of fishers/day

— Data 2: Vessels concerned if appropriate

Measure 1.3: Investments on board fishing vessels and selectivity

— A c t i o n 1 :

I m p r o v e m e n t o f s a f e t y o n b o a r d

— Data 1: Vessel concerned

— A c t i o n 2 :

I m p r o v e m e n t o f w o r k i n g c o n d i t i o n s

— Data 1: Vessel concerned

— A c t i o n 3 :

I m p r o v e m e n t o f h y g i e n e

— Data 1: Vessel concerned

— A c t i o n 4 :

I m p r o v e m e n t o f p r o d u c t q u a l i t y

— Data 1: Vessel concerned

— A c t i o n 5 :

I m p r o v e m e n t o f e n e r g y e f f i c i e n c y

— Data 1: Vessel concerned

— A c t i o n 6 :

I m p r o v e m e n t o f s e l e c t i v i t y

— Data 1: Vessel concerned

— A c t i o n 7 : R e p l a c e m e n t o f e n g i n e

— Data 1: Power of engine (after modernisation) (kW)

— Data 2: Decrease of power related to engines replaced (-kW)

— Data 3: Vessel concerned

— A c t i o n 8 : R e p l a c e m e n t o f g e a r

— Data 1: Number of fishing gear replaced

— Data 2: Vessel concerned

— A c t i o n 9 : O t h e r s i n v e s t m e n t s o n b o a r d f i s h i n g v e s s e l s a n d s e l e c t i v i t y

— Data 1: Vessel concerned

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Measure 1.4: Small-scale coastal fishing

— A c t i o n 1 : S m a l l - s c a l e c o a s t a l

f i s h i n g

— Data 1: Number of fishers/owners of fishing vessels that have received premiums in order to improve manage-

ment and control of access conditions to certain fishing areas.

— Data 2: Number of fishers/owners of fishing vessels that have received premiums in order to promote the organi-

sation of the production, processing and marketing chain of fisheries products.

— Data 3: Number of fishers/owners of fishing vessels that have received premiums in order to encourage volun-

tary steps to reduce fishing effort for the conservation of resources.

— Data 4: Number of fishers/owners of fishing vessels that have received premiums in order to encourage the use

of technological innovations that do not increase fishing effort.

— Data 5: Total number of fishers/owners of fishing vessels that have received premiums in order to improve

safety training.

— Data 6: Number of female fishers/owners of fishing vessels that have received premiums in order to improve

safety training.

— Data 7: Total number of fishers/owners of fishing vessels that have received premiums in order to improve

professional skills.

— Data 8: Number of female fishers/owners of fishing vessels that have received premiums in order to improve

professional skills.

Measure 1.5: Socio-economic compensations for the management of the fleet

— A c t i o n 1 : S o c i o - e c o n o m i c c o m p e n s a t i o n s

— Data 1: Total number of fishers concerned by the diversification of activities, if appropriate.

— Data 2: Number of female fishers concerned by the diversification of activities, if appropriate.

— Data 3: Total number of fishers concerned by early departure from the fishing sector.

— Data 4: Number of female fishers concerned by early departure from the fishing sector.

— Data 5: Total number of individual premiums to fishers younger than 40 years

— Data 6: Number of individual premiums to female fishers younger than 40 years

— Data 7: Total number of fishers concerned by the upgrading professional skills.

— Data 8: Number of female fishers concerned by the upgrading professional skills

— Data 9: Total number of fishers benefiting of schemes for retraining outside fishing sector.

— Data 10: Number of female fishers benefiting of schemes for retraining outside fishing sector.

— Data 11: Number of training days received.

— Data 12: Total number of fishers benefiting from the non-renewable compensations, if appropriate.

— Data 13: Number of female fishers benefiting from the non-renewable compensations, if appropriate.

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Priority axis 2: Aquaculture, inland fishing, processing and marketing of fishing and aquaculture products

Measure 2.1: Aquaculture

— A c t i o n 1 :

I n c r e a s e i n p r o d u c t i o n c a p a c i t y d u e t o c o n s t r u c t i o n o f n e w f a r m s

— Data 1: Tonnes/year of mussels

— Data 2: Tonnes/year of clams

— Data 3: Tonnes/year of oysters

— Data 4: Tonnes/year of bass

— Data 5: Tonnes/year of sea bream

— Data 6: Tonnes/year of turbot

— Data 7: Tonnes/year of salmon

— Data 8: Tonnes/year of seawater farmed trout

— Data 9: Tonnes/year of eel

— Data 10: Tonnes/year of carp

— Data 11: Tonnes/year of freshwater farmed trout

— Data 12: Tonnes/year of tuna

— Data 13: Tonnes/year of other species

— Data 14: Size of enterprise (Micro, Small, Medium, Large)

— A c t i o n 2 : V a r i a t i o n i n p r o d u c t i o n d u e t o t h e e x t e n s i o n o r m o d e r n i s a t i o n o f e x i s t i n g

f a r m s

— Data 1: Tonnes/year of mussels

— Data 2: Tonnes/year of clams

— Data 3: Tonnes/year of oysters

— Data 4: Tonnes/year of bass

— Data 5: Tonnes/year of sea bream

— Data 6: Tonnes/year of turbot

— Data 7: Tonnes/year of salmon

— Data 8: Tonnes/year of seawater farmed trout

— Data 9: Tonnes/year of eel

— Data 10: Tonnes/year of carp

— Data 11: Tonnes/year of freshwater farmed trout

— Data 12: Tonnes/year of tuna

— Data 13: Tonnes/year of other species

— Data 14: Size of enterprise (Micro, Small, Medium, Large)

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— A c t i o n 3 :

I n c r e a s e i n n u m b e r o f h a t c h e r y - p r o d u c e d f r y

— Data 1: Number/year of mussels

— Data 2: Number/year of clams

— Data 3: Number/year of oysters

— Data 4: Number/year of bass

— Data 5: Number/year of sea bream

— Data 6: Number/year of turbot

— Data 7: Number/year of salmon

— Data 8: Number/year of seawater farmed trout

— Data 9: Number/year of eel

— Data 10: Number/year of carp

— Data 11: Number/year of freshwater farmed trout

— Data 12: Number/year of tuna

— Data 13: Number/year of other species

— Data 14: Size of enterprise (Micro, Small, Medium, Large)

— A c t i o n 4 : A q u a - e n v i r o n m e n t a l m e a s u r e s

— Data 1: Unit that has implemented aqua-environmental measures as provided for in Article 30(2)(a) of Regula-

tion (EC) No 1198/2006.

— Data 2: Unit that has adhered to the Community eco-management and audit scheme (EMAS).

— Data 3: Unit that has put in place organic production.

— A c t i o n 5 : P u b l i c h e a l t h m e a s u r e s

— Data 1: Mollusc farmer that has benefited from compensation.

— A c t i o n 6 : A n i m a l h e a l t h m e a s u r e s

— Data 1: Farmer that has benefited from compensation.

Measure 2.2. Inland fishing

— A c t i o n 1 :

I n l a n d f i s h i n g v e s s e l s

— Data 1: Tonnage of vessel modernised (GT).

— Data 2: Power of vessel modernised (kW).

— Data 3: Tonnage of vessel re-assigned (GT).

— Data 4: Power of vessel re-assigned (kW).

— Data 5: Vessel concerned.

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— A c t i o n 2 :

I n v e s t m e n t s f o r t h e c o n s t r u c t i o n o f

i n l a n d f i s h i n g f a c i l i t i e s

— Data 1: Unit that has benefited.

— A c t i o n 3 :
f a c i l i t i e s

I n v e s t m e n t s f o r e x t e n s i o n , e q u i p m e n t a n d m o d e r n i s a t i o n o f

i n l a n d f i s h i n g

— Data 1: Unit that has benefited.

Measure 2.3. Fish processing and marketing

— A c t i o n 1 :

I n c r e a s e i n p r o c e s s i n g c a p a c i t y ( c o n s t r u c t i o n o f n e w u n i t s a n d / o r e x t e n -

s i o n o f e x i s t i n g u n i t s )

— Data 1: Tonnes/year of fresh or chilled products.

— Data 2: Tonnes/year of preserved or semi-preserved products.

— Data 3: Tonnes/year of frozen or deep-frozen products.

— Data 4: Tonnes/year of other processed products (prepared meals, smoked, salted, dried products).

— Data 5: size of enterprise (Micro, Small, Medium, Large).

— A c t i o n 2 : C o n s t r u c t i o n , e x t e n s i o n , e q u i p m e n t a n d m o d e r n i s a t i o n o f p r o c e s s i n g u n i t s

— Data 1: Unit that has benefited from improved hygiene/working conditions.

— Data 2: Unit that has benefited from improved environmental conditions.

— Data 3: Unit that has put in place improved production systems (quality, technological innovations).

— Data 4: Size of enterprise (Micro, Small, Medium, Large).

— A c t i o n 3 : C o n s t r u c t i o n o f n e w m a r k e t i n g e s t a b l i s h m e n t

— Data 1: m2 of effective surface area.

— Data 2: Size of enterprise (Micro, Small, Medium, Large).

— A c t i o n 4 : M o d e r n i s a t i o n o f e x i s t i n g m a r k e t i n g e s t a b l i s h m e n t s

— Data 1: Unit that has benefited from improved hygiene/working conditions.

— Data 2: Unit that has benefited from improved environmental conditions.

— Data 3: Unit that has put in place improved systems (quality, technological innovations).

— Data 4: Unit that has put in place the treatment, processing and marketing of fisheries and aquaculture products

wastes.

— Data 5: Unit benefiting from this action broken down by size of enterprise (Micro, Small, Medium, Large).

Priority axis 3: Measures of common interest

Measure 3.1: Collective actions

— Data 1: Producers’ organisations created.

— Data 2: Producers’ organisations restructured.

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— Data 3: Operation that upgrades professional skills, or develops new training methods and tools.

— Data 4: Operation that promotes partnership between scientists and operators in the fisheries sector.

— Data 5: Operation on networking and exchange of experience and best practice among organisations promoting equal

opportunities between men and women and other stakeholders.

— Data 6: Other operation(s).

Measure 3.2: Protection and development of aquatic fauna and flora

— Data 1: Marine area (km2) protected by the installation of static or movable facilities.

— Data 2: Operation concerning rehabilitation of inland waters.

— Data 3: Operation concerning Nature 2000 areas.

— Data 4: Operation concerning spawning grounds and migration routes rehabilitated.

Measure 3.3: Fishing ports landing sites and shelters

— A c t i o n 1 :

I n v e s t m e n t s i n e x i s t i n g f i s h i n g p o r t s

— Data 1: m3 of cold storage created.

— Data 2: m3 of storage other than cold stores.

— Data 3: Operation of handling installations.

— Data 4: Operation of ice machines.

— Data 5: Operation to supply installations (electricity, water, fuel)

— Data 6: Operation regarding other facilities.

— Data 7: m2 of quays restructured.

— Data 8: Linear metres of quays restructured.

— Data 9: m2 of surface usable for first sale.

— A c t i o n 2 :

I n v e s t m e n t s i n r e s t r u c t u r i n g a n d i m p r o v e m e n t o f

l a n d i n g s i t e s

— Data 1: Landing site that has benefited.

— A c t i o n 3 : S a f e t y r e l a t e d i n v e s t m e n t s f o r t h e c o n s t r u c t i o n o r m o d e r n i s a t i o n o f s m a l l

f i s h i n g s h e l t e r s

— Data 1: Fishing shelter that has benefited.

— A c t i o n 4 : S a f e t y r e l a t e d i n v e s t m e n t s f o r t h e m o d e r n i s a t i o n o f s m a l l

f i s h i n g s h e l t e r s

— Data 1: Fishing shelter that has benefited.

Measure 3.4: Development of new markets and promotion campaigns

— Data 1: Campaign for fisheries and aquaculture products.

— Data 2: Campaign to improve the image of fisheries.

— Data 3: Operation to promote products obtained using methods with low impact on the environment.

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— Data 4: Operation to promote products recognised under the terms of Council Regulation (EEC) No 2081/92 (1).

— Data 5: Operation to implement a quality policy for fisheries and aquaculture products.

— Data 6: Operation to promote quality certification.

— Data 7: Operation to promote the supply of the market of surplus or underexploited species.

— Data 8: Operation to implement market surveys.

Measure 3.5: Pilot operations

— Data 1: Test on innovative technology.

— Data 2: Test on management plans and fishing effort allocation plans.

— Data 3: Operation to develop and test methods to improve gear selectivity/reduce by-catches and discards.

— Data 4: Operation to test alternative types of fishing management techniques.

Measure 3.6: Modification for reassignment of fishing vessels

— Data 1: Vessel modified for historical heritage.

— Data 2: Vessel modified for fisheries research (FR).

— Data 3: Vessel modified for training activities (TA).

— Data 4: Vessel modified for control (C).

Priority axis 4: Sustainable development of fisheries areas

Measure 4.1: Development of fisheries areas

— Data 1: Operation for strengthening the competitiveness of the fisheries areas.

— Data 2: Operation for restructuring and redirecting economic activities.

— Data 3: Operation for diversifying activities.

— Data 4: Operation for adding value to fisheries products.

— Data 5: Operation for supporting small fisheries communities and tourism related infrastructure.

— Data 6: Operation for protecting the environment in fisheries areas.

— Data 7: Operation for re-establishing the production potential in fisheries areas.

— Data 8: Operation for promoting inter-regional and trans-national cooperation.

— Data 9: Operation for acquiring skills and facilitating the preparation and implementation of the local development

strategy.

— Data 10: Operation for the contribution to the running cost of the groups.

— Data 11: Operation on communication actions by the groups.

— Data 12: Other operation(s).

(1) OJ L 208, 24.7.1992, p. 1.

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Priority axis 5: Technical assistance

Measure 5.1: Technical assistance

— A c t i o n 1 : M a n a g e m e n t a n d i m p l e m e n t a t i o n o f p r o g r a m m e s

— Data 1: Operation for technical assistance for the implementation of the operational programme.

— Data 2: Operation for improving administrative capacity.

— Data 3: Operation on communications actions.

— Data 4: Operation for facilitating networking.

— Data 5: Operations for evaluation.

— A c t i o n 2 : S t u d i e s ( e x c l u d i n g e v a l u a t i o n )

— Data 1: studies.

— A c t i o n 3 : P u b l i c i t y a n d i n f o r m a t i o n

— Data 1: Operation for publicity.

— Data 2: Operation for information to stakeholders.

— A c t i o n 4 : O t h e r t e c h n i c a l a s s i s t a n c e m e a s u r e s

— Data 1: Operation of other kind of technical assistance.

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ANNEX IV

TECHNICAL PARAMETERS FOR RANDOM STATISTICAL SAMPLING UNDER ARTICLE 43 (SAMPLING)

1. A random statistical sampling method allows conclusions to be drawn from the results of audits of the sample on
the overall expenditure from which the sample was taken, and hence provides evidence to obtain assurance on the
functioning of the management and control systems

2.

The assurance provided on the functioning of the systems is determined by the degree of confidence resulting from
the conclusions of the system audits and from the audits of operations in the sample selected by a random statistical
sampling method. In order to obtain a high level of assurance, that is, a reduced audit risk, the audit authority shall
combine the results of system audits and audits of operations. The audit authority first evaluates the reliability of the
systems (high, average or low), taking into account the results of the system audits, so as to determine the technical
parameters of the sampling, in particular the confidence level and the expected error rate. Member States may also
use the results of the report on the compliance assessment under Article 71(2) of Regulation (EC) No 1198/2006.
The combined level of assurance obtained from the system audits and the audits of operations must be high. The
confidence level used for sampling operations must not be less than 60 % with a maximum materiality level of 2 %.
For a system evaluated as having low reliability, the confidence level used for sampling operations must not be below
90 %. The audit authority shall describe in the annual control report the way assurance has been obtained.

3.

The reliability of management and control systems shall be determined using criteria established by the audit author-
ity for systems audits, including a quantified assessment of all key elements of the systems and encompassing the
main authorities and intermediate bodies participating in the management and control of the operational programme.
A record of the assessments carried out shall be kept in the audit file.

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MODEL AUDIT STRATEGY AS PROVIDED FOR IN ARTICLE 61(1)(C) OF REGULATION (EC) No 1198/2006

ANNEX V

1.

INTRODUCTION

— Identification of the audit authority responsible for drawing up the audit strategy and of any other bodies which

have contributed. Explanation of the procedure followed for drawing up the audit strategy.

— Specification of the overall objectives of the audit strategy.

— Explanation of the functions and responsibility of the audit authority and other bodies carrying out audits under

its responsibility.

— Indication of the independence of the audit authority from the managing authority and certifying authority.

— Confirmation by the audit authority that the bodies that carry out the audits pursuant to Article 61(3) of Regu-

lation (EC) No 1198/2006 have the requisite functional independence.

2. LEGAL BASIS AND SCOPE

— Indication of any national regulatory framework that affects the audit authority, and its functions.

— Indication of the period covered by the strategy.

3. METHODOLOGY

— Indicate the audit methodology to be followed taking account of internationally accepted audit standards (includ-

ing but not limited to, INTOSAI, IFAC and IIA), audit manuals and any other specific documents.

4. AUDIT APPROACH AND PRIORITIES

— Materiality thresholds for planning purposes and for reporting deficiencies.

— Indication of the types of audits to be carried out (system audits, audits of operations).

— For system audits:

(a)

Specification of the body or bodies responsible for the audit work;

(b)

Specification of the bodies to be audited;

(c)

Indication of any horizontal issues to be covered by the system audits, such as public procurement, state
aid, environmental requirements, equal opportunities and IT systems.

— For audits of operations:

(a)

specification of the responsible body or bodies responsible for the audit work;

(b)

specification of the criteria for determining the assurance level gained from system audits and reference to
the documentation used for applying the sampling methodology set out in Article 43;

(c)

specification of the procedure for determining steps to be taken where material errors are detected.

— Indication and justification of the priorities and audit objectives established for the whole programming period.

— Explanation of the linkage of the risk assessment results to the audit work planned.

— An indicative audit schedule of audit assignments for the forthcoming year provided in a table format.

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5. RISK ASSESSMENT

— Indication of the procedures followed, including the extent to which the results of previous audits of the bodies
and systems have been taken into account (such as audits from the 2000 to 2006 period, audit work for the
compliance assessment).

— Indication of the managing authority, certifying authority and intermediate bodies covered.

— Indication of the risk factors taken into account, including any horizontal issues identified as risk areas.

— Indication of the results through identification and prioritisation of the key bodies, processes, controls and prior-

ity axes to audit.

6. RELIANCE ON THE WORK OF OTHERS

— Indication of the extent to which certain components are audited by other auditors and the extent of potential

reliance on such work.

— Explanation of how the audit authority will ensure the quality of the work carried out by the other bodies, taking

account of internationally accepted auditing standards.

7. RESOURCES

— Indication of planned resources to be allocated, at least for the forthcoming year.

8. REPORTING

— Indication of internal procedures for reporting, such as provisional and final audit reports, and of the right of the

body audited to be heard and to provide an explanation before a final position is taken.

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ANNEX VI

MODEL ANNUAL CONTROL REPORT AND OPINION

PART A

Model annual control report under Article 61(1)(e)(i) of Regulation (EC) No 1198/2006 and Article 44(2) of the
present Regulation

1.

INTRODUCTION

— Indication of the responsible audit authority and other bodies that have been involved in preparing the report.

— Indication of the 12-month (reference) period from which the random sample was drawn.

— Identification of the operational programme covered by the report (CCI number) and of its managing and certi-

fying authority.

— Description of the steps taken to prepare the report.

2. CHANGES IN MANAGEMENT AND CONTROL SYSTEMS

— Indication of any significant changes in the management and control systems notified to the audit authority as
compared with the description provided under Article 71(1) of Regulation (EC) No 1198/2006 and of the dates
from which the changes apply.

3. CHANGES TO AUDIT STRATEGY

— Indication of any changes that have been made to the audit strategy or are proposed, and of the reasons behind

them.

4. SYSTEMS AUDITS

— Indication of the bodies that have carried out systems audits, including the audit authority itself.

— Summary list of the audits carried out (bodies audited).

— Description of the basis for selection of the audits in the context of the audit strategy.

— Description of the principal findings and conclusions drawn from the audit work for the management and con-
trol systems, and their functioning, including the sufficiency of management checks, certification procedures and
the audit trail, adequate separation of functions and compliance with Community requirements and policies.

— Indication of whether any problems identified were considered to be of a systemic character, and the measures

taken, including a quantification of the irregular expenditure and any related financial corrections.

5. AUDITS OF SAMPLE OF OPERATIONS

— Indication of the bodies that have carried out the sample audits, including the audit authority.

— Description of the basis for the selection of the sample(s).

— Indication of the materiality level and, in the case of statistical sampling, the confidence level applied and the

interval, if applicable.

— Summary table (see point 9) indicating the eligible expenditure declared to the Commission during the calendar
(reference) year (ending in the audit period), the amount of expenditure audited, and the percentage of expendi-
ture audited in relation to total eligible expenditure declared to the Commission (both for the last calendar year
and cumulatively). Information relating to the random sample must be distinguished from that related to other
samples.

— Description of the principal results of the audits, indicating in particular the amount of irregular expenditure and

the error rate resulting from the random sample audited.

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— Indication of the conclusions drawn from the results of the audits with regard to the effectiveness of the manage-

ment and control system.

— Information on the follow-up of irregularities including revision of previously reported error rates.

— Indication of whether any problems identified were considered to be systemic in nature, and the measures taken,

including a quantification of the irregular expenditure and any related financial corrections.

6. COORDINATION BETWEEN AUDIT BODIES AND SUPERVISION WORK OF THE AUDIT AUTHORITY

— Description of the procedure for supervision applied by the audit authority to other bodies carrying out the audits

pursuant to Article 61(3) of Regulation (EC) No 1198/2006 (if applicable).

7. FOLLOW-UP OF PREVIOUS YEARS’ AUDIT ACTIVITY

— Information on the follow-up of outstanding audit recommendations and on the follow up of systems audits and

audits of operations from earlier years.

8. OTHER INFORMATION (IF APPLICABLE)

9. TABLE FOR DECLARED EXPENDITURE AND SAMPLE AUDITS

Convergence objective regions

Reference
(CCI no)

Expendi-
ture
declared
in refer-
ence year

Expenditure in refer-
ence year audited for
the random sample

Amount and percent-
age (error rate) of
irregular expenditure in
random sample

Other
expendi-
ture
audited (1)

(2)

(3)

Amount

%

Amount
of irregu-
lar expen-
diture in
other
expendi-
ture
sample

Total
expendi-
ture
declared
cumula-
tively

Total
expenditure
audited
cumula-
tively as a
percentage
of total
expenditure
declared
cumula-
tively

(1) Expenditure for complementary sample and expenditure for random sample not in the reference year.
(2) Amount of expenditure audited.
(3) Percentage of expenditure audited in relation to eligible expenditure declared to the Commission in the reference year.

Non-convergence objective regions

Reference
(CCI no)

Expendi-
ture
declared
in refer-
ence year

Expenditure in refer-
ence year audited for
the random sample

Amount and percent-
age (error rate) of
irregular expenditure in
random sample

Other
expendi-
ture
audited (1)

(2)

(3)

Amount

%

Amount
of irregu-
lar expen-
diture in
other
expendi-
ture
sample

Total
expendi-
ture
declared
cumula-
tively

Total
expenditure
audited
cumula-
tively as a
percentage
of total
expenditure
declared
cumula-
tively

(1) Expenditure for complementary sample and expenditure for random sample not in the reference year.
(2) Amount of expenditure audited.
(3) Percentage of expenditure audited in relation to eligible expenditure declared to the Commission in the reference year.

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Model annual opinion under Article 61(1)(e)(ii) of Regulation (EC) No 1198/2006 and Article 44(2) of the
present Regulation

PART B

To the European Commission, Directorate-General […]

1.

INTRODUCTION

I, the undersigned, representing the (name of body designated by Member State), have examined the functioning of the
management and control systems in the operational programme (name of operational programme, CCI code number,
period), in order to issue an opinion on whether the systems functioned effectively so as to provide reasonable assur-
ance that the statements of expenditure presented to the Commission are correct and as a consequence reasonable
assurance that the underlying transactions are legal and regular.

2. SCOPE OF THE EXAMINATION

The examination was carried out in accordance with the audit strategy in respect of this programme during the period
1 July to 30 June (year) and reported in the attached annual control report under Article 61(1)(e)(i) of Regulation (EC)
No 1198/2006.

Either

There were no limitations on the scope of the examination

Or

The scope of the examination was limited by the following factors:

(a)

(b)

(c) etc.

(Indicate any limitation on the scope of the examination, for example any systemic problems, weaknesses in the man-
agement and control system, lack of supporting documentation, cases under legal proceedings, etc and estimate the
amounts of the expenditure and the Community contribution affected. If the audit authority does not consider that
the limitations have an impact on the final expenditure declared, this must be stated.)

3. OPINION

Either

(Unqualified opinion)

Based on the examination referred to above, it is my opinion that for the abovementioned period the management
and control system established for the programme … (name of operational programme, CCI code number, period)
complied with the applicable requirements of Articles 57 to 61 of Regulation (EC) No 1198/2006 and Chapter VII of
Commission Regulation (EC) No 498/2007 (1) and functioned effectively so as to provide reasonable assurance that
the statements of expenditure presented to the Commission are correct and as a consequence reasonable assurance
that the underlying transactions are legal and regular.

Or

(Qualified opinion)

Based on the examination referred to above, it is my opinion that for the abovementioned period the management
and control systems established for the programme … (name of operational programme, CCI code number, period)
complied with the applicable requirements of Articles 57 to 61 of Regulation (EC) No 1198/2006 and Chapter VII of
Commission Regulation (EC) No 498/2007 and functioned effectively so as to provide reasonable assurance that the
statements of expenditure presented to the Commission are correct and as a consequence reasonable assurance that
the underlying transactions are legal and regular, except in the following respects (2).

(1) OJ L 120, 10.5.2007, p. 1.
(2)

Indicate the body or bodies and the aspect(s) of their systems that did not comply with requirements and/or did not operate effectively.

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My reasons for considering that this (these) aspect(s) of the systems did not comply with the requirements and/or did
not operate in such a way as to give a reasonable assurance that the statements of expenditure presented to the Com-
mission are correct as follows … (1).

I estimate the impact of the qualification(s) to be … of the total expenditure declared. The Community contribution
affected is thus ….

Or

(Adverse opinion)

Based on the examination referred to above, it is my opinion that for the abovementioned period the management
and control system established for the programme … (name of operational programme, CCI code number, period) did
not comply with the requirements of Articles 57 to 61 of Regulation (EC) No 1198/2006 and Chapter VII of Com-
mission Regulation (EC) No 498/2007 and did not function effectively so as to provide reasonable assurance that the
statements of expenditure presented to the Commission are correct and, as a consequence, does not provide reason-
able assurance that the underlying transactions are legal and regular.

This adverse opinion is based on … (2)

Date:

Signature:

(1)
(2)

Indicate for each body and each aspect of the system the reasons for the qualification.
Indicate for each body and each aspect the reasons for the adverse opinion.

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ANNEX VII

MODEL FINAL CONTROL REPORT AND CLOSURE DECLARATION FOR THE OPERATIONAL
PROGRAMME UNDER ARTICLE 61(1)(f) OF REGULATION (EC) No 1198/2006 AND ARTICLE 44(3) OF THE
PRESENT REGULATION

PART A

Model final control report

1.

INTRODUCTION

— Indication of the responsible audit authority and other bodies that have been involved in preparing the report.

— Indication of the last reference period from which the random sample was drawn.

— Identification of the operational programme covered by the report and its managing and certifying authorities.

— Description of the steps taken to prepare the report.

2. CHANGES IN MANAGEMENT AND CONTROL SYSTEMS AND AUDIT STRATEGY (1)

— Indication of any significant changes in the management and control systems notified to the audit authority as
compared with the description provided under Article 71(1) of Regulation (EC) No 1198/2006, and of the dates
from which the changes apply.

— Indication of any changes that have been made to the audit strategy and reasons for such changes.

3. SUMMARY OF AUDITS CARRIED OUT UNDER ARTICLE 61(1)(a) AND (b) OF REGULATION (EC) No 1198/2006 AND

ARTICLE 43 OF THE PRESENT REGULATION

For systems audits:

— Indication of the bodies that have carried out systems audits, including the audit authority itself.

— Summary list of audits carried out: bodies audited and year of audit.

— Description of the basis for selection of audits in the context of the audit strategy (2).

— Description of the principal findings and the conclusions drawn from the audit work for the management and
control systems and their functioning, including the sufficiency of management checks, certification procedures
and the audit trail, adequate separation of functions and compliance with Community requirements and policies (2).

— Indication of whether any problems identified were considered to be of a systemic character, and the measures

taken, including a quantification of the irregular expenditure and any related financial corrections (2).

For audits of operations:

— Indication of the bodies that carried out the sample audits, including the audit authority itself.

— Description of the basis for selection of the sample(s).

— Indication of the materiality level and, in the case of statistical sampling, the confidence level applied and the

interval, if applicable.

(1) For changes not indicated in earlier annual control reports.
(2) For audits not covered by earlier annual control reports.

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— Description of the principal results of the audits, indicating in particular the amount of irregular expenditure and

the error rate resulting from the random sample audited (1).

— Indication of the conclusions drawn from the results of the audits with regard to the effectiveness of the manage-

ment and control system.

— Information on the follow-up of irregularities, including revision of previously reported error rates.

— Indication of whether any problems identified were considered to be systemic in nature, and the measures taken,

including a quantification of the irregular expenditure and any related financial corrections (1).

4. FOLLOW-UP OF AUDIT ACTIVITY

— Information on the follow-up of the results of systems audits and audits of operations.

5. ADDITIONAL WORK UNDERTAKEN BY AUDIT AUTHORITY IN PREPARING ITS CLOSURE DECLARATION

— Summary of audits of closure procedure of managing and certifying authorities and intermediate bodies.

— Summary of the results of the examination of the debtors’ ledger kept under Article 60(f) of Regulation (EC)

No 1198/2006.

— Summary of the results of re performance of controls on the accuracy of the amounts declared in relation to

supporting documents.

— Summary of the results of examination of reports of other national or Community audit bodies (specify by cat-

egory which reports have been received and examined).

— Summary of the results of the examination of information relating to follow-up of audit findings and dealing

with irregularities.

— Summary of the results of the examination of additional work carried out by managing and certifying authorities

to enable an unqualified opinion to be provided.

— Other.

6. LIMITATIONS ON THE SCOPE OF THE EXAMINATION BY THE AUDIT AUTHORITY

— Details of any factors that have limited the scope of the examination by the audit authority must be reported (2).

— Estimated amounts of expenditure and the Community contribution that are affected must be stated.

7. REPORTED IRREGULARITIES

— Confirmation that the procedure for reporting and following up irregularities, including the treatment of sys-

temic problems, has been carried out in accordance with regulatory requirements.

— Confirmation of the accuracy of the information given in final report on implementation on the irregularities

reported under Article 70(1)(b) of Regulation (EC) No 1198/2006.

— A list of cases of irregularity regarded as systemic and the amounts of expenditure affected.

8. OTHER INFORMATION (IF APPLICABLE)

(1) For audits not covered by earlier annual control reports.
(2) Examples of such matters include systemic problems, weaknesses in management and control systems, lack of supporting documents,

and cases under legal proceedings.

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9. TABLE FOR DECLARED EXPENDITURE AND SAMPLE AUDITS

Convergence objective regions

Reference
(CCI No)

Expendi-
ture
declared
in refer-
ence year

Expenditure in refer-
ence year audited for
the random sample

Amount and percent-
age (error rate) of
irregular expenditure in
random sample

Other
expendi-
ture
audited (1)

(2)

(3)

Amount.

%

Amount
of irregu-
lar expen-
diture in
other
expendi-
ture
sample

Total
expendi-
ture
declared
cumula-
tively

Total
expenditure
audited
cumula-
tively as a
percentage
of total
expenditure
declared
cumula-
tively

(1) Expenditure for complementary sample and expenditure for random sample not in the reference year.
(2) Amount of expenditure audited.
(3) Percentage of expenditure audited in relation to eligible expenditure declared to the Commission in the reference year.

Non-convergence objective regions

Reference
(CCI No)

Expendi-
ture
declared
in refer-
ence year

Expenditure in refer-
ence year audited for
the random sample

Amount and percent-
age (error rate) of
irregular expenditure in
random sample

Other
expendi-
ture
audited (1)

(2)

(3)

Amount

%

Amount
of irregu-
lar expen-
diture in
other
expendi-
ture
sample

Total
expendi-
ture
declared
cumula-
tively

Total
expenditure
audited
cumula-
tively as a
percentage
of total
expenditure
declared
cumula-
tively

(1) Expenditure for complementary sample and expenditure for random sample not in the reference year.
(2) Amount of expenditure audited.
(3) Percentage of expenditure audited in relation to eligible expenditure declared to the Commission in the reference year.

PART B

Closure declaration

To the European Commission, Directorate-General […]

1.

INTRODUCTION

I, the undersigned, … representing the (name of the body designated by Member State), have for the operational pro-
gramme … (name of the operational programme, CCI code number, period) examined the results of the audit work
carried out on this programme by or under the responsibility of the audit authority in accordance with the audit strat-
egy (and have carried out the additional work I judged necessary). The results of the examination and the additional
work I have performed are summarised in the attached final control report (which also contains the information
required by the annual control reports for the period 1 January 2015 to 31 December 2016). I have planned and
performed this work with a view to obtaining a reasonable assurance as to whether the payment application for the
balance of the Community contribution to the programme is correct and valid and the underlying transactions cov-
ered by the final statement of expenditure are legal and regular.

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2. SCOPE OF THE EXAMINATION

The examination was carried out in accordance with the audit strategy in respect of this programme and reported in
the attached final control report under Article 61(1)(f) of Regulation (EC) No 1198/2006.

Either

There were no limitations on the scope of the examination.

Or

The scope of the examination was limited by the following factors:

(a)

(b)

(c) etc.

(Indicate any limitation on the scope of the examination, for example any systemic problems, weaknesses in the man-
agement and control system, lack of supporting documentation, cases under legal proceedings, etc., and estimate the
amounts of expenditure and the Community contribution affected. If the audit authority does not consider that the
limitations have an impact on the final expenditure declared, this must be stated.)

3.

IRREGULARITIES AND ERROR RATES

Either

The cases of irregularity and error rates found in the audit work is not such as to preclude an unqualified opinion
given the satisfactory way they have been dealt with by the managing authority and the trend in the level of their
occurrence over time.

Or

The cases of irregularity and error rates found in the audit work and the way they have been dealt with by the man-
aging authority are such as to preclude an unqualified opinion. A list of these cases is provided in the final control
report, together with an indication of their possible systemic character and the scale of the problem. The amounts of
total declared expenditure and public contribution that could be affected are … respectively. As a consequence, the
corresponding Community contribution that could be affected is ….

4. OPINION

Either

(Unqualified opinion)

If there were no limitations on the scope of the examination and the cases of irregularity and error rates and the way they have been
dealt with by the managing authority do not preclude an unqualified opinion:

Based on the examination referred to above, it is my opinion that the final statement of expenditure presents fairly, in
all material respects, the expenditure paid under the operational programme, that the application for payment of the
balance of the Community contribution to this programme is valid and that the underlying transactions covered by
the final statement of expenditure are legal and regular.

Or

(Qualified opinion)

If there were limitations on the scope of the examination and/or cases of irregularity and error rates and the way they have been
dealt with by the managing authority call for a qualified opinion but do not justify an unfavourable opinion for all the expenditure
concerned:

Based on the examination referred to above, it is my opinion that the final statement of expenditure presents fairly, in
all material respects, the expenditure paid under the operational programme, that the application for payment of the
balance of the Community contribution to this programme is valid and that the underlying transactions covered by
the final statement of expenditure are legal and regular, except with regard to the matters referred to at point 2 above
and/or to the observations at point 3 regarding the error rates and cases of irregularity and the way they have been
dealt with by the managing authority, the impact of which is quantified above. I estimate the impact of these qualifi-
cations to be … of the total expenditure declared. The Community contribution affected is thus ….

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Or

(Adverse opinion)

If there were major limitations on the scope of the examination error rates and cases of irregularity and the way they have been
dealt with by the managing authority are such that no conclusion can be reached on the reliability of the final statement of expen-
diture without considerable further work:

Based on the examination referred to above, and in particular in view of the matters referred to at point 2 and/or the
error rates and cases of irregularity and the fact that they have not been dealt with satisfactorily by the managing
authority as reported at point 3, it is my opinion that that the final statement of expenditure does not present fairly, in
all material respects, the expenditure paid under the operational programme, that, as a consequence, the application
for payment of the balance of the Community contribution to this programme is not valid and that the underlying
transactions covered by the final statement of expenditure are not legal and regular.

Date:

Signature:

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Official Journal of the European Union

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MODEL DECLARATION FOR THE PARTIAL CLOSURE OF THE OPERATIONAL PROGRAMME UNDER
ARTICLE 44(5)

ANNEX VIII

To the European Commission, Directorate-General […]

The managing authority for the programme … (name of the operational programme, CCI code number, period) has sub-
mitted a statement of expenditure relating to operations [completed as at … (date up to which operations were
completed)/completed between … and … (dates between which operations were completed/and is applying for partial
closure of the programme under Article 85(2)(b) of Regulation (EC) No 1198/2006 for these operations.

I, the undersigned, representing the (name of the body designated by the Member State), have examined the results of the
audit work carried out on this programme as set out in the annual control reports and annual opinions issued under
Article 61(1)(e)(i) and (ii) of Regulation (EC) No 1198/2006 for the year/years …

I have planned and performed this work with a view to obtaining a reasonable assurance as to whether the statement of
expenditure concerned is correct and valid and the underlying transactions covered by the statement of expenditure are
legal and regular.

Opinion

Based on the examination referred to above, it is my opinion that the statement of expenditure on completed operations
submitted by the managing authority for the programme … (name of operational programme, CCI code number, period)
for the purpose of partial closure of the programme in respect of operations (completed as at …/completed between …
and …) presents fairly, in all material respects, the expenditure paid and that the underlying transactions are legal and
regular.

Date:

Signature:

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CERTIFICATE AND STATEMENT OF EXPENDITURE AND APPLICATION FOR PAYMENT

ANNEX IX

Certificate and statement of expenditure and application for interim payment

PART A

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Certificate and statement of expenditure and application for final payment

PART B

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Official Journal of the European Union

10.5.2007

ANNEX X

ANNUAL STATEMENT ON WITHDRAWN AND RECOVERED AMOUNTS AND PENDING RECOVERIES
UNDER ARTICLE 46(2)

Withdrawals and recoveries for the year 20.. deducted from statements of expenditure for regions eligible
under the convergence objective

Withdrawals

Recoveries

Priority axis

Total
expenditure
of beneficia-
ries

Public con-
tribution

Co-financing
rate (1)

EFF contri-
bution

Total
expenditure
of beneficia-
ries

Public con-
tribution

Co-financing
rate (1)

EFF contri-
bution

1

2

3

4

5

Total

(1) This co-financing rate is found in the financial table of the operational programme for the priority axis concerned.

Withdrawals and recoveries for the year 20.. deducted from statements of expenditure for regions eligible
under the non-convergence objective

Withdrawals

Recoveries

Priority axis

Total
expenditure
of beneficia-
ries

Public con-
tribution

Co-financing
rate (1)

EFF contri-
bution

Total
expenditure
of beneficia-
ries

Public con-
tribution

Co-financing
rate (1)

EFF contri-
bution

1

2

3

4

5

Total

(1) This co-financing rate is found in the financial table of the operational programme for the priority axis concerned.

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Pending recoveries as at 31.12.20.. for regions eligible under the convergence objective

Priority axis

Year of launch of
recovery proceedings

Public contribution
to be recovered

Co-financing rate (1)

EFF contribution to be
recovered

Priority axis 1

Priority axis 2

Priority axis 3

Priority axis 4

2007

2008

…

2007

2008

…

2007

2008

…

2007

2008

…

Subtotals

2007

2008

…

Grand total

(1) This co-financing rate is found in the financial table of the operational programme for the priority axis concerned.

Pending recoveries as at 31.12.20.. for regions eligible under the non-convergence objective

Priority axis

Year of launch of
recovery proceedings

Public contribution
to be recovered

Co-financing rate (1)

EFF contribution to be
recovered

Priority axis 1

Priority axis 2

Priority axis 3

Priority axis 4

2007

2008

…

2007

2008

…

2007

2008

…

2007

2008

…

Subtotals

2007

2008

…

Grand total

(1) This co-financing rate is found in the financial table of the operational programme for the priority axis concerned.

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Official Journal of the European Union

10.5.2007

MODEL STATEMENT OF EXPENDITURE FOR A PARTIAL CLOSURE UNDER ARTICLE 46(3)

ANNEX XI

Statement of expenditure by priority axis for a partial closure

Operational Programme reference (CCI No):

Member State:

Date of submission to the Commission:

Total certified eligible expenditure of operations completed between …/…/ and 31/12 [year] in the regions
eligible under the convergence objective:

Priority axis

Total expenditure certified

2007-2015

Public contribution

EFF contribution

National contribution

Priority axis 1: Total

Priority axis 2: Total

Priority axis 3: Total

Priority axis 4: Total

Priority axis 5: Total

Grand total

Total certified eligible expenditure of operations completed between …/…/ and 31/12 [year] in the regions
eligible under the non-convergence objective:

Priority axis

Total expenditure certified

2007-2015

Public contribution

EFF contribution

National contribution

Priority axis 1: Total

Priority axis 2: Total

Priority axis 3: Total

Priority axis 4: Total

Priority axis 5: Total

Grand total

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Official Journal of the European Union

L 120/71

DESCRIPTION OF MANAGEMENT AND CONTROL SYSTEMS UNDER ARTICLE 71 OF REGULATION (EC)
No 1198/2006 AND ARTICLE 47 OF THE PRESENT REGULATION

ANNEX XII

PART A

Model description of management and control systems

1.

GENERAL

1.1.

Information submitted by:

— [Name of the] Member State:

— Title of the programme and CCI No:

— Name of main contact person, including e-mail and fax: (body responsible for coordination of descriptions)

1.2.

The information provided describes the situation on: (dd/mm/yyyy)

1.3.

System structure (general information and flowchart showing the organisational relationship between the
bodies involved in the management and control system)

1.3.1. Managing authority (Name, address and contact person of the managing authority)

1.3.2.

Intermediate bodies (Name, address and contact person of the intermediate bodies)

1.3.3. Certifying authority (Name, address and contact person of the certifying authority)

1.3.4. The audit authority and bodies carrying out audits under the responsibility of the audit authority (Name, address

and contact person of the audit authority and other audit bodies)

1.4.

Guidance provided to the managing and certifying authorities and intermediate bodies to ensure sound
financial management of EFF. (date and reference)

2.

MANAGING AUTHORITY

2.1.

Managing authority and its main functions

2.1.1. The date and form of the formal designation authorising the managing authority to carry out its functions

2.1.2.

Specification of the functions and tasks carried out directly by the managing authority

2.1.3.

Functions formally delegated by the managing authority (functions, intermediate bodies, form of delegation)

2.2.

Organisation of the managing authority

2.2.1. Organisation chart and specifications of the functions of the units (including indicative number of posts allocated)

2.2.2. Written procedures prepared for use by staff of the managing authority/intermediate bodies (date and reference)

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2.2.3. Description of procedures for selecting and approving operations and for ensuring their compliance, for their whole
implementing period, with applicable Community and national rules (Article 59(a) of Regulation (EC)
No 1198/2006)

2.2.4. Verification of operations (Article 59(b) of Regulation (EC) No 1198/2006)

— Description of the procedures for verification.

— Bodies carrying out such verifications.

— Written procedures(reference to manuals) issued for this work

2.2.5.

Processing of applications for reimbursement

— Description of the procedures by which applications for reimbursement are received, verified, and validated,
and by which payments to beneficiaries are authorised, executed and accounted for (including flowchart indi-
cating all bodies involved).

— Bodies carrying out each step in the processing of the application for reimbursement.

— Written procedures (reference to manuals) issued for this work

2.2.6. Description of how information will be transmitted to the certifying authority by the managing authority

2.2.7.

Eligibility rules laid down by the Member State and applicable to the operational programme

2.3.

In cases where the managing authority and the certifying authority are both designated in the same body
describe how separation of functions is ensured

2.4.

Public procurement, State aid, equal opportunities and environment rules

2.4.1.

Instructions and guidance issued on the applicable rules (date and reference)

2.4.2. Measures foreseen to ensure that applicable rules are complied with, for example management checks, controls,

audits

2.5.

Audit trail

2.5.1. Description of how the requirements under Article 41 of Regulation (EC) No 498/2007 will be implemented for

the programme and/or for individual priorities

2.5.2.

Instructions given on retention of supporting documents by beneficiaries (date and reference)

— Indication of the retention period

— Format in which the documents are to be held

2.6.

Irregularities and recoveries

2.6.1.

Instructions issued on reporting and correction of irregularities and recording of debt and recoveries of undue
payments (date and reference)

2.6.2. Description of the procedure (including flowchart) to comply with the obligation to report irregularities in accor-

dance with article 55 of Regulation (EC) No 498/2007

3.

INTERMEDIATE BODIES

NB: This section must be completed separately for each intermediate body. Indicate the authority which has delegated the func-

tion to the intermediate bodies.

3.1.

The intermediate body and its main functions

3.1.1.

Specification of the main functions/tasks of the intermediate bodies.

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3.2.

Organisation of each intermediate body

3.2.1. Organisation chart and specifications of the functions of the units (including indicative number of posts allocated.)

3.2.2. Written procedures prepared for use by staff of the intermediate body (date and reference).

3.2.3. Description of procedures for selecting and approving operations (if not described under 2.2.3).

3.2.4. Verification of operations (Article 59(b) of Regulation (EC) No 1198/2006) (if not described under 2.2.4).

3.2.5. Description of procedures for processing of applications for reimbursement (if not described under 2.2.5).

4.

CERTIFYING AUTHORITY

4.1.

Certifying authority and its main functions

4.1.1. The date and form of the formal designation authorising the certifying authority to carry out its functions.

4.1.2.

Specification of the functions carried out by the certifying authority.

4.1.3.

Functions formally delegated by the certifying authority (functions, intermediate bodies, form of delegation).

4.2.

Organisation of the certifying authority

4.2.1. Organisation chart and specification of the functions of the units (including indicative number of posts allocated).

4.2.2. Written procedures prepared for use by staff of the certifying authority (date and reference).

4.3.

Certification of statements of expenditure

4.3.1. Description of the procedure by which statements of expenditure are drawn up, certified and submitted to the

Commission.

4.3.2. Description of the steps performed by the certifying authority to ensure fulfilment of requirements under Article 60

of Regulation (EC) No 1198/2006).

4.3.3. Arrangements for access of the certifying authority to the detailed information on operations and verifications and

audits held by the managing authority, intermediate bodies and audit authority.

4.4.

Accounting system

4.4.1. Description of the accounting system to be set up and used as a basis for certification of expenditure to the

Commission.

— Arrangements for forwarding aggregated data to the certifying authority in the case of a decentralised system.

— The link between accounting system and the information system to be set up (point 6).

4.4.2.

Level of detail of the accounting system:

— Total expenditure by priority axis.

4.5.

Recoveries

4.5.1. Description of the system for ensuring the prompt recovery of Community assistance.

4.5.2. Arrangements made to maintain a debtors’ ledger and to deduct amounts recovered from expenditure to be declared.

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5.

AUDIT AUTHORITY AND AUDIT BODIES

5.1.

Description of the main tasks and interrelationships of the audit authority and bodies carrying out audits under
the responsibility of the audit authority

5.2.

Organisation of the audit authority and bodies under its responsibility

5.2.1. Organisation charts (including the number of posts attributed).

5.2.2. Arrangements for ensuring the independence.

5.2.3. Required qualification or experience.

5.2.4. Description of procedures for monitoring the implementation of recommendations and corrective measures from

audit reports.

5.2.5. Description of the procedures (where appropriate) for the supervision of the work of other bodies by the audit

authority.

5.3.

Annual control report, annual opinion and closure declaration

Description of the procedures for preparation of the annual control report, annual opinion and closure declaration.

6.

INFORMATION SYSTEM (ARTICLE 59(c) OF REGULATION (EC) No 1198/2006)

6.1.

6.2.

Description of the information system including flowchart (central or common network system or decen-
tralised system with links between the systems)

Indication as to whether the system is already operational to gather reliable financial and statistical infor-
mation on implementation of the 2007-2013 programmes

— If not, indication of the date when it will be operational.

Model opinion issued under Article 71(2) of Regulation (EC) No 1198/2006 and under Article 50 of the present
Regulation on the compliance of management and control system

PART B

To the European Commission, Directorate-General […]

Introduction

I, the undersigned representing (name of the audit authority or the operationally independent body designated by the
Member State under Article 71(3) of Regulation (EC) No 1198/2006, as the body responsible for drawing up a report
setting out the results of an assessment of the management and control systems established for the programme … (name
of operational programme, CCI code number, period) and for giving an opinion on their compliance with Articles 57
to 61 of Regulation (EC) No 1198/2006 have carried out an examination in accordance with Article 50 of Regulation (EC)
No 498/2007.

Scope of the examination

The examination was based on the description of the management and control systems received on dd/mm/yyyy from
(name of body/bodies submitting the description). In addition, we have examined further information concerning (sub-
jects) and interviewed staff of (bodies whose staff was interviewed).

The examination covered the managing, certifying and audit authorities, the body designated to receive the payments made
by the Commission and to make the payments to beneficiaries and the following intermediate bodies (list …).

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Opinion (1)

Either

(Unqualified opinion)

On the basis of the examination referred to above, it is my opinion that the management and control systems established
for the programme … (name of operational programme, CCI code number, period) comply with the requirements of
Articles 57 to 61 of Regulation (EC) No 1198/2006 and Chapter VII of Regulation (EC) No 498/2007.

Or

(Qualified opinion)

On the basis of the examination referred to above, it is my opinion that the management and control systems for the
programme … (name of operational programme, CCI code number, period) comply with the requirements of Articles 57
to 61 of Regulation (EC) No 1198/2006 and Chapter VII of Regulation (EC) No 498/2007, except in the following
respects … (2).

My reasons for considering that this/these aspect(s) of the systems do(es) not comply with the requirements and my assess-
ment of the seriousness is as follows (3):

Or

(Adverse opinion)

On the basis of the examination referred to above, it is my opinion that the management and control systems for the
programme (s) … (name of operational programme, CCI code number, period) do not comply with the requirements of
Articles 57 to 61 of Council Regulation (EC) No 1198/2006 and Chapter VII of Regulation (EC) No 498/2007.

This adverse opinion is based on … (4)

Date:

Signature:

(1) Where the opinion is issued by the audit authority, the latter must provide a separate ‘Declaration of Competence and Operational

Independence’ on its own functions under Article 65 of Regulation (EC) No 1198/2006.
Indicate the body or bodies and the aspects of their systems that appear not to comply with the requirements.
Indicate the reason(s) for the reservations entered for each body and on each aspect.
Indicate the reason(s) for the adverse opinion for each body and on each aspect.

(2)
(3)
(4)

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Official Journal of the European Union

10.5.2007

ANNEXE XIII

FORECASTS OF LIKELY APPLICATIONS FOR PAYMENT

Provisional forecasts of likely payment applications, for the current and subsequent financial year:

Community co-financing (1)

(current year)

(following year)

(in EUR)

OP (CCI number) total

Convergence objective regions

Non-convergence objective regions

(1) Only provisional forecasts of likely applications for payment in respect of the Community contribution, and not total expenditure fore-
cast, shall be stated in the table. In the provisional forecasts of likely applications for payment, the Community contribution must be
stated for the year in question, and must not be cumulated from the beginning of the programming period.

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ANNEX XIV

ANNUAL AND FINAL REPORTING

1.

IDENTIFICATION

Member State:

Operational programme

Programme number (CCI No):

Report on implementation

Reporting year:

Date of approval of the annual report by the monitoring committee:

2.

EXECUTIVE SUMMARY

3.

OVERVIEW OF THE IMPLEMENTATION OF THE OPERATIONAL PROGRAMME BY PRORITY AXIS

3.1.

Information on the physical progress of the priority axes

For each quantifiable result indicator mentioned in the operational programme related to the objectives and the
expected results, (for the year N, for the previous reporting years, as well as cumulatively).

Priority axis:

Indicators

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total

Indicator 1:

Achievement

Target (1)

Baseline

… etc

… etc

Indicator n:

Achievement

Target (1)

Baseline

…

… … …

… … …

… … …

(1) The target can be given annually or for the whole programming period.

In addition the information may be presented graphically. All indicators shall be broken down by gender where
possible. If the figures (data) are not yet available, information on when they will become available and how the
Managing Authority will provide it to the Commission shall be stated.

3.2.

Specific information for priority axes and measures

— Analysis of the results of in implementing the fishing effort adjustments plans using the indicators defined in

the operational programme in the form of table as provided for in point 3.1.

— Fisheries areas selected, groups selected, budget allocated to them, percentage of fisheries areas covered by the

local development strategies.

3.3.

Financial information (All financial data shall be expressed in Euro)

Regions eligible under the convergence objective

Expenditure paid by
the beneficiaries
included in payment
claims sent to the man-
aging authority

Corresponding public
contribution

Corresponding EFF
contribution

Expenditure paid out
by the body respon-
sible for making pay-
ments to the
beneficiaries

EFF committed by the
Managing authority

L

1
2
0
/
7
8

Total payment requested
from the Commission

Specify the basis for calcu-
lating the Community con-
tribution

(Article 76(1) or 76(2) of
Council Regulation (EC)
No 1198/2006)

Total payments received
from the Commission

E
N

Regions eligible under the non convergence objective

Expenditure paid by
the beneficiaries
included in payment
claims sent to the man-
aging authority

Corresponding public
contribution

Corresponding EFF
contribution

Expenditure paid out
by the body respon-
sible for making pay-
ments to the
beneficiaries

EFF committed by the
Managing authority

Total payment requested
from the Commission

Specify the basis for calcu-
lating the Community con-
tribution

(Article 76(1) or 76(2) of
Council Regulation (EC)
No1198/2006)

Total payments received
from the Commission

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

.

.

1
0
5
2
0
0
7

Priority axis 1

Priority axis 2

Priority axis 3

Priority axis 4

Priority axis 5

Priority axis 1

Priority axis 2

Priority axis 3

Priority axis 4

Priority axis 5

Grand total

Grand total

10.5.2007

EN

Official Journal of the European Union

L 120/79

In addition, financial information may be provided graphically.

3.4. Qualitative analysis

Analysis of the achievements as measured by physical and financial indicators, including qualitative analysis on the
progress achieved in relation to the targets set out initially.

Demonstration on the effects of the operational programme on the promotion of equal opportunities between
men and women as appropriate and description of the partnership agreements.

List of unfinished operations and the schedule for their completion (final report only).

3.5. Monitoring arrangements

Monitoring and evaluation measures taken by the Managing Authority or the Monitoring Committee, to ensure the
quality and effectiveness of implementation, in particular monitoring and evaluation measures, including mid-term
and ongoing evaluation activities, data collection arrangements, difficulties encountered and steps taken to solve
them.

3.6.

Significant problems encountered and measures taken to overcome them. (to be completed only if there
was significant modification since the previous report)

Any significant problems encountered in implementing the operational programme and by priority axis to the
extent of which any priority axis is affected, including a summary of serious problems identified under the proce-
dure in Article 61(1)(e)(i) of Regulation (EC) No 1198/2006 where appropriate, as well as any measures taken by
the managing authority or the monitoring committee to solve the problems.

3.7.

Recommendations from the Commission following annual examination of the Operational programme (to
be completed only if there was significant modification since the previous report)

Where appropriate, the report must provide the description of how the Member State has implemented the recom-
mendation from the Commission for the previous annual examination of the programme.

If any recommendation has not been implemented, the Managing Authority must provide reasons for not imple-
menting it.

3.8.

Assistance repaid or re-used (to be completed only if there was significant modification since the previous
report)

Information on the use made of assistance repaid or re-used following cancellation of assistance as referred to in
Article 56 and Article 96(2) of the Regulation (EC) No 1198/2006.

3.9.

Substantial modification within the meaning of Article 56 of Regulation (EC) No 1198/2006 (to be com-
pleted only if there was significant modification since the previous report)

Cases where a substantial modification within the meaning of Article 56 of Regulation (EC) No 1198/2006 has
been detected.

3.10. Changes in the context and general conditions to the implementation of the Operational programme (to

be completed only if there was significant modification since the previous report)

Description of any elements which, without stemming directly from the assistance of the operational programme,
have a direct impact on the programme’s implementation (such as legislative changes or unexpected socio-economic
developments).

4.

THE USE MADE OF TECHNICAL ASSISTANCE (TO BE COMPLETED ONLY IF THERE WAS SIGNIFICANT MODI-
FICATION SINCE THE PREVIOUS REPORT)

— Explanation of the use made of technical assistance.

— Percentage of the amount of the EFF’s contribution allocated to the operational programme spent under tech-

nical assistance.

L 120/80

EN

Official Journal of the European Union

10.5.2007

5.

INFORMATION AND PUBLICITY (TO BE COMPLETED ONLY IF THERE WAS SIGNIFICANT MODIFICATION
SINCE THE PREVIOUS REPORT)

— Measures taken to provide information and publicity on the Operational programme, including examples of
best practices and highlighting significant events and the arrangements for the information and publicity mea-
sures referred to in point (d) of the second paragraph of Article 31 of Regulation (EC) No 498/2007 as well as
the electronic address where such data may be found.

— Indicators in the form of tables as provided for in point 3.1.

— Evaluation of the results of the information and publicity measures in terms of visibility and awareness of the
operational programme and of the role played by the Community (only in the annual implementation report
covering the year 2010 and the final report on implementation).

6.

INFORMATION ABOUT COMPLIANCE WITH COMMUNITY LAW

Any significant problems relating to the Compliance with the Community law which have been encountered in the
implementation of the operational programme and the measures taken to deal with them.

7.

COMPLEMENTARITY WITH OTHER INSTRUMENTS

Summary of the implementation of the arrangements made ensuring demarcation and complementarity between
the assistance from the EFF, the Structural Funds, the Cohesion Fund, and other existing financial instruments
(Article 6(4) of Regulation (EC) No 1198/2006).