Commission Regulation (EC) No 951/2007 of 9 August 2007 laying down implementing rules for cross-border cooperation programmes financed under Regulation (EC) No 1638/2006 of the European Parliament and of the Council laying down general provisions establishing a European Neighbourhood and Partnership Instrument
Date: 2007-08-09
Institutions: European Commission
Subjects: EU financing, EU programme, European neighbourhood policy, cross-border cooperation, project management

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COMMISSION REGULATION (EC) No 951/2007

of 9 August 2007

laying down implementing rules for cross-border cooperation programmes financed under
laying down
Regulation (EC) No 1638/2006 of the European Parliament and of the Council

general provisions establishing a European Neighbourhood and Partnership Instrument

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty
Community,

establishing the European

the
Having regard to Regulation (EC) No 1638/2006 of
European Parliament and of the Council of 24 October 2006
laying down general provisions establishing a European Neigh-
bourhood and Partnership Instrument (1), and in particular
Article 11(1) thereof,

Whereas:

(1)

(2)

One of the strands of Regulation (EC) No 1638/2006
involves cooperation between the Member States of the
European Union and partner
in regions
adjacent to their shared part of the external border of
the European Union for the development of an area of
prosperity and good neighbourliness (hereinafter ENPI
cross-border cooperation).

countries

Article 11 of Regulation (EC) No 1638/2006 requires
that the Commission adopt implementing rules laying
down specific provisions
the implementation of
for
Title III ‘Cross-border Cooperation’ and that the matters
covered by the implementing rules include issues such as
the rate of co-financing, preparation of joint operational
programmes, the designation and functions of the joint
authorities, the role and function of the joint monitoring
and selection committees and of the joint secretariat,
eligibility of expenditure,
the
preparatory phase, technical and financial management
of Community assistance,
financial control and audit,
monitoring and evaluation, visibility and information
activities for potential beneficiaries.

joint project

selection,

(3)

Article 21 of Regulation (EC) No 1638/2006 stipulates
that
should also lay down
procurement rules for ENPI cross-border cooperation.

the implementing rules

(1) OJ L 310, 9.11.2006, p. 1.

(5)

(6)

(7)

(8)

The strategy paper provided for in Article 7(3) of Regu-
the strategic
lation (EC) No 1628/2006 establishes
for ENPI cross-
framework for Commission support
border
indicative
contains
cooperation
programme for this cooperation.

and

the

Community assistance for ENPI cross-border cooperation
is implemented through joint operational programmes
defined in the strategy paper.

as

to the

It is necessary to draw up implementing rules which lay
down joint specific provisions for cross-border coop-
eration within the meaning of Regulation (EC) No
1638/2006 while allowing participating countries a
certain amount of
detailed
flexibility
arrangements regarding organisation and implementation
of specific programmes taking account of the particular
features of each programme. On the basis of
this
principle and in accordance with this Regulation, the
participating countries must propose, by
common
agreement, detailed arrangements for ENPI cross-border
for
cooperation in the joint operational programme,
adoption by the Commission in accordance with
Article 9(6) of Regulation (EC) No 1638/2006.

In view of the fact that all participating countries are to
be involved in the decision-making structures for the
programme while the task of implementation is to be
entrusted to a Joint Managing Authority based in one
of the participating countries there is a need for joint
rules on the distribution of
functions between the
various programme-management structures.

Since programmes are to be implemented through shared
management, programme management
and control
systems must comply with Community rules. Adoption
of the programme by the Commission must be taken as
an ex
systems. The
Commission must monitor
implementation of each
programme by possible involvement in the Joint Moni-
toring Committee and by means of the reports presented
to it by the Joint Managing Authority.

accreditation of

those

ante

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(9)

In order to ensure full and complete participation in the
programme by potential beneficiaries in partner countries
and to apply the same management arrangements for
those established in a Member State of the European
Union as for those established in a partner country,
and given that appropriations for ENPI cross-border
cooperation are managed as part of
the European
Union's
contractual procedures
the
applicable to external actions financed by the European
Commission must be used for all projects financed as
part of the cross-border cooperation established by Regu-
lation (EC) No 1638/2006.

foreign policy,

3.

(10)

to ensure effective implementation of

In order
the
programme, evaluation and monitoring arrangements
need to be laid down.

and financial responsibility for project implementation vis-à-
vis that authority; it receives the financial contribution from
the Joint Managing Authority and ensures it is managed and,
where appropriate, distributed in accordance with the
is
alone
agreements drawn up with its partners;
responsible to the Joint Managing Authority and it
is
directly accountable to the authority for the operational
and financial progress of activities;

it

‘contractor’ means a body which signs a service, works or
supply contract with the Joint Managing Authority and
legal and financial responsibility for
which assumes full
implementation
Joint
that
of
Managing Authority;

contract

vis-à-vis

the

(11)

These measures are in line with the opinion of
the
Committee established by Council Regulation (EC) No
1638/2006,

4.

‘strategy paper’ means the document which is referred to in
Article 7(3) of Regulation (EC) No 1638/2006 and which
establishes the list of the joint operational programmes, their
multiannual indicative envelope and territorial units eligible
within each programme;

HAS ADOPTED THIS REGULATION:

CHAPTER I

INTRODUCTION

Article 1

Subject and scope

This Regulation lays down rules for the implementation of
Regulation (EC) No 1638/2006 in relation to cross-border
cooperation programmes.

Article 2

Definitions

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

1.

‘technical assistance’ means preparatory work, management,
monitoring, evaluation, information, audit and control, and
any administrative capacity-building activities necessary for
implementation of the joint operational programmes;

2.

‘beneficiary’ means a body which signs a grant contract with
the Joint Managing Authority and which assumes full legal

5.

‘participating countries’ means all Member States and partner
countries taking part in the joint operational programme;

6.

‘partner countries’ means the countries and territories listed
in the Annex to Regulation (EC) No 1638/2006;

7.

‘large-scale projects’ means projects comprising a set of
works, activities or services intended to fulfil an indivisible
function of a precise nature pursuing clearly identified
objectives of common interest for the purposes of imple-
menting cross-border investments;

8.

9.

‘own resources of the countries participating in the joint
operational programme’ means financial resources from the
central,
the participating
countries;

local budget of

regional or

‘operational follow-up of the projects’ means follow-up of
the operations financed by the programme in accordance
with the method for the project-management cycle, from
programming to technical monitoring of
implementation
to evaluation.

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CHAPTER II

BASIC DOCUMENTS

SECTION 1

Joint operational programmes

Article 3

programme in accordance with Articles 14, 15, 16 and
17 of this Regulation. This description shall be detailed
enough to enable the Commission to be reasonably
confident
control
systems have been put in place, based on best international
practices;

and efficient

effective

internal

that

Preparation of joint operational programmes

Each joint operational programme shall be defined by common
agreement of all the participating countries, in accordance with
Regulation (EC) No 1638/2006, the strategy paper and this
Regulation.

(g)

include a financial table describing the provisional yearly
allocations of commitments and payments under
the
programme, established in accordance with the priorities
and specifying in particular
the amounts allocated to
technical assistance;

Article 4

(h) identify programme implementation methods, in accordance
with the contractual procedures referred to in Article 23 of
this Regulation;

Content of joint operational programmes

Each joint operational programme shall describe the objectives,
to be
priorities and measures concerning the operations
undertaken and shall explain how they fit
in with other
ongoing or planned bilateral and multilateral programmes in
the countries and regions concerned, in particular programmes
financed by the European Union.

(i)

specify a provisional indicative timetable for the launching
of procedures and the selection of projects to be financed;

In particular, each joint operational programme shall:

(j) describe any regulatory requirements regarding environ-
impact assessment studies and give a provisional

mental
indicative timetable for the carrying-out of these studies;

(a)

the territorial units eligible,

list
including the possible
adjacent regions, as locations for projects financed by the
programme, as defined in Regulation (EC) No 1638/2006
and the strategy paper;

(k) state the language(s) adopted by the programme;

(l)

include
accordance with Article 42.

an information and communication plan in

(b) lay down rules for participation in the programmes by
adjacent areas in third countries which are not covered by
Regulation (EC) No 1638/2006 but which are allowed to
take part in cooperation on the basis of the strategy paper;

(c)

lay down priorities and measures addressing the objectives
identified in the strategy paper;

(d) set out the composition of the Joint Monitoring Committee

in accordance with Article 11 of this Regulation;

(e)

identify the body appointed by the participating countries to
perform the role of Joint Managing Authority;

(f) describe the structure that will be set up by the Joint
the

Managing Authority

the management

for

of

amounts

indicative

The table referred to in point (g) of the second paragraph shall
indicate the European Community contribution and divide the
committed by the
provisional
Commission each year up to 2013 (the allocations for 2011-
2013 shall be confirmed in the Indicative Programme for 2011-
2013). The table shall also contain the provisional
indicative
amounts of co-financing from the own resources of partici-
pating countries.

to be

For the purposes of point (h) of the second paragraph, the
the programme shall generally be
projects financed under
selected following calls for proposals. Nevertheless, the partici-
pating countries may also,
in agreement with the European
Commission, jointly identify large-scale cross-border investment
projects which will not be selected through calls for proposals:
these projects shall be specifically mentioned in the programme
or be selected at a later
stage by the Joint Monitoring
Committee, referred to in Articles 11 to 13, provided that
they are
consistent with the programme's priorities and
measures and that there is a budget specifically for this purpose.

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Article 5

Adoption of joint operational programmes

1.
Each joint operational programme shall be submitted by
the Joint Managing Authority to the Commission after the
explicit agreement of all countries having participated in and
contributed to the preparation of the programme.

2.
The Commission shall examine the joint operational
programme in order to verify that it contains all the elements
referred to in Article 4, which shall involve in particular:

(a) assessing its conformity with the strategy paper;

(b) checking the quality of the analysis, its consistency with the
proposed priorities and measures, and its consistency with
the other bilateral and multilateral programmes ongoing or
planned in the regions concerned by the programme;

(c) verifying

that

the

programme

complies with

the

Community legislation applicable;

(d) checking that any environmental impact assessment studies
that may be required have been carried out or are planned
before the proposed projects are implemented;

(e) ensuring the consistency of

the
programme, particularly with regard to the amounts to be
committed by the Commission;

the financial

table for

planned

of
the
In particular,

(f) ensuring the management capacity of the Joint Managing
Authority is commensurate with the volume, content and
complexity
the
operations
programme.
the Commission shall check
that the Joint Managing Authority has sufficient properly
qualified
the
programme,
the requisite computerised management and
accountancy tools and financial circuits that comply with
the relevant Community legislation. These checks may be
carried out
if
considered necessary by the Commission;

through an ex ante on-the-spot audit,

dedicated

resources

human

under

fully

to

The adoption of each joint operational programme shall
4.
be taken as an ex ante accreditation by the Commission of the
management and control
set up by the Joint
Managing Authority.

structures

Each joint operational programme shall be adopted by a
the programme's

the whole of

5.
Commission decision for
duration.

Article 6

Monitoring and evaluation of joint operational programme

The aim of monitoring and evaluating each joint opera-
1.
tional programme shall be to improve the quality, effectiveness
and consistency of implementation. The findings of evaluations
shall be taken into account in future programming exercises.

A mid-term evaluation

2.
programme shall be carried out as part of
review in accordance with the strategy paper.

the

of

joint

operational
the programme

This evaluation shall be carried out by the Commission, and its
results, which shall be communicated to the Joint Monitoring
Committee and Joint Managing Authority for the indicative
programme may lead to adjustments in the programme.

3.
In addition to the mid-term evaluation, an evaluation of
the joint operational programme, or a part thereof, may be
carried out at any moment by the Commission.

4.
In the year following the end of the implementation phase
of the projects financed by the joint operational programme, an
ex post evaluation of the programme shall be carried out by the
Commission.

(g) ensuring that the Joint Managing Authority has planned for
and set up satisfactory internal control and audit systems,
based on international best practices.

3.
Following the review of the joint operational programme,
the Commission may ask the participating countries to provide
additional
information or, where necessary, to revise certain
parts.

Article 7

Revision of joint operational programmes

1.
Adjustments to the joint operational programme financial
table which merely involve the transfer from one priority to
another of no more than 20 % of the Community funds initially
allocated to each priority may be made directly by the Joint
Managing Authority, with the prior approval of the Joint Moni-
toring Committee. The Joint Managing Authority shall inform
the Commission of any such changes.

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rule shall apply to technical assistance financed by
This
Community funds only with the written prior approval of the
Commission.

Interpreting and translation costs for all languages selected

3.
by the programme shall be met:

2.
Following a reasoned request from the Joint Monitoring
Committee or at the initiative of the Commission in agreement
with the
joint operational
programmes may be reviewed and, if necessary, revised in the
following cases:

Joint Monitoring Committee,

(a)

from the technical assistance budget at joint operational
programme level;

(b) from the budget of each individual project at project level.

(a)

to make allowance for major socio-economic
in order
changes or substantial changes in Community, national or
regional priorities in the area covered by the programme;

(b) following

implementation

difficulties

giving

rise

to

substantial delays;

(c) where there is a transfer of Community funds from one
priority to another going beyond the margin of flexibility
referred to in paragraph 1 of this Article;

(d) following the
and 6(3);

evaluations

referred to in Article 6(2)

(e) where the programme is terminated in accordance with

Article 44.

3.
Any revision of a joint operational programme in the
referred to in paragraph 2 shall be adopted by a
cases
decision of the Commission and shall require the signing of
an amendment
to the financing agreements referred to in
Article 10.

Article 8

Use of languages

The management

1.
operational
structures
programmes shall use one or more of the European Union's
official languages as their working language(s).

joint

for

Article 9

Starting phase of joint operational programmes

of

the

joint

adoption

Following

operational
1.
the
programme by Commission decision,
the programme shall
start immediately in the Member States with the allocation in
the European Neighbourhood and Partnership Instrument for
cross-border cooperation from heading 1B of
the Financial
Perspective (Interinstitutional Agreement 2006/C 139/01) (1).
Joint actions required to launch the programme may also be
undertaken, namely:

(a)

the establishment of the Joint Managing Authority and of
the Joint Technical Secretariat;

(b) the first meetings of

the Joint Monitoring Committee,
including representatives of partner countries that have
not yet signed a financing agreement;

(c)

the preparation and launching of tender procedures or calls
for proposals, if necessary with a suspension clause linked
to the signing of the financing agreements.

2.
Commission decisions referred to in paragraph 1 shall be
applicable in each partner country from the signing of a
financing agreement by the
country in accordance with
Article 10.

SECTION 2

Financing agreement

Article 10

2.
In order to take account of the partnership nature of the
programmes, the project beneficiaries may submit to the Joint
Managing Authority documents concerning their project in their
national
language, provided that this possibility is specifically
mentioned in the programme and that the Joint Monitoring
Committee makes provision,
through the Joint Managing
Authority, for any interpretation and translation that may be
necessary.

Signing of financing agreements

1.
A financing agreement shall be established between the
Commission and each partner country for each joint operation-
al programme. The Joint Managing Authority designated under
countersign the
each joint operational programme may
financing agreement.

(1) Interinstitutional Agreement between the European Parliament, the
Council and the Commission on budgetary discipline and sound
financial management, OJ C 139, 14.6.2006, p. 1.

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The

joint operational programme

the
2.
Commission shall be a technical annex to the financing
agreement.

adopted by

Article 12

Functioning of the Joint Monitoring Committee

The

1.
Committee shall adopt its rules of procedure unanimously.

appointed members of

Joint Monitoring

the

Each financing agreement shall be concluded at the latest
the
operational

the year which follows the year of
the

3.
before the end of
Commission
decision
programme (N+1 rule).

adopting

joint

If the financing agreement is not concluded within the
the joint operational

4.
time-limit,
programme with the partner country may not be launched.

the external component of

2.
The Joint Monitoring Committee shall take decisions by
it may put certain decisions to a vote,
consensus. However,
particularly those relating to the final selection of projects and
the grant amounts allocated to them. Within this voting
procedure, each country has only one vote whatever
the
number of its representatives.

Where a programme includes several partner countries, it may
be launched with each partner country as soon as that country
has signed its financing agreement.

The appointed representatives shall elect a chairperson.
3.
the
The committee may decide to elect a representative of
Joint Managing Authority or another outside person as chair-
person.

If no partner country signs a financing agreement within
5.
the set time limit, the external component of the joint opera-
tional programme shall become null and void and paragraphs 3
and 4 of Article 44 shall apply.

CHAPTER III

MANAGEMENT STRUCTURES FOR JOINT OPERATIONAL
PROGRAMMES

SECTION 1

Joint Monitoring Committee

Article 11

Composition of the Joint Monitoring Committee

competence of

The Joint Monitoring Committee shall comprise represen-
1.
tatives appointed by each participating country to take all
decisions concerning the joint operational programme within
the
shall be
appointed as representatives of their countries on a functional
basis and not on a personal basis. The committee shall also
include a chairperson and a secretary. The secretary shall be
chosen from the members of the Joint Managing Authority.

committee. Members

the

The chairperson of the Joint Monitoring Committee shall act as
arbitrator and lead discussions. The chairperson shall retain their
vote, unless the position of chairperson has been given to a
representative of
the Joint Managing Authority or another
outside person. In the latter case, the chairperson shall have
no vote.

4.
The Joint Monitoring Committee shall meet as often as
necessary and at least once a year. It shall be convened by its
chairperson at the request of the Joint Managing Authority or
following a duly justified request from one of its appointed
members or from the Commission. It may also take decisions
through written procedure at the initiative of its chairperson,
the Joint Managing Authority or one of
the participating
countries. In case of a disagreement, any member may request
that the decision be discussed at a meeting.

5. Minutes shall be drawn up after each meeting of the Joint
Monitoring Committee for signature by the chairperson and the
secretary. Minutes shall be given to each member of
the
committee and to the Commission.

2.
it is
In addition to the duly appointed representatives,
important that the participating countries ensure the adequate
participation of the civil society (local authorities, economic and
social partners, civil society) to ensure the close association of
different local stakeholders in the implementation of the joint
operational programme.

Article 13

Functions of the Joint Monitoring Committee

As part of its functions with regard to the joint operational
programme, the committee shall:

The Commission shall be invited to each meeting of the
3.
Joint Monitoring Committee at the same time as the parti-
cipants and shall be informed of the results of its deliberations.
It may take part in all or part of each committee meeting on its
own initiative, as an observer and without any decision-making
power.

(a) approve the Joint Managing Authority's work programme;

(b) decide on the volume and allocation of the programme's
resources for technical assistance and human resources;

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(c) at each of its meetings, review the management decisions

taken by the Joint Managing Authority;

thereof,
2342/2002 in particular Articles 38, 39 and 41 thereof (2).

and Commission Regulation (EC, Euratom) No

(d) appoint the project-selection committees;

(e) decide on the selection criteria for the projects and take the
final decision on projects and on the amounts granted to
them;

shall

entrust

The participating

Joint
countries
2.
Managing Authority with the tasks involved in implementing
the joint operational programme which have been entrusted to
them as part of programme management. They shall be
for
responsible, within the
checking that funds are used in accordance with the rules and
principles governing programme management.

Joint Monitoring Committee,

the

(f) at each of its meetings and on the basis of the documents
submitted by the Joint Managing Authority, evaluate and
monitor progress towards the objectives of the joint oper-
ational programme;

The functioning of the Joint Managing Authority may be
technical
in particular from the

3.
financed from the Community contribution for
assistance and from the co financing,
contributions in kind provided for in Article 19(3).

(g) review all

reports

submitted by the

Joint Managing

Authority and, if necessary, take appropriate measures;

(h) examine any contentious cases of recovery brought to its

attention by the Joint Managing Authority.

the Joint Monitoring Committee decides not

If, when taking decisions referred to in point (e) of the first
paragraph,
to
follow all or part of the recommendations of the selection
explain its decision in writing. The
committee,
decision shall then be sent via the Joint managing authority
to the Commission for prior approval. Commission commu-
nicates its opinion to the Joint Managing Authority within 15
working days.

shall

it

Duties of the Joint Managing Authority shall be performed in
compliance with regulations and provisions in force. The Joint
Managing Authority is responsible for ensuring that decisions of
the Joint Monitoring Committee comply with these rules.

SECTION 2

Joint Managing Authority

Article 14

Organisation of the Joint Managing Authority

The Joint Managing Authority shall, normally, be a
1.
local public sector body. The Joint
national,
Managing Authority may also be a body governed by private
law with a public-service mission.

regional or

This body must satisfy appropriate financial requirements and
comply with the conditions provided for in Council Regulation
(EC, Euratom) No 1605/2002 (1),
in particular Article 54

4.
The accounts established by the Joint Managing Authority
shall be subject to an annual ex post external audit carried out
by an independent organisation as referred to in Article 31.

5.
The organisation of the Joint Managing Authority shall be
based on international best practice in management and internal
control and shall draw on management and internal control
systems suited to the carrying out of its tasks in such a way
as to ensure that its operations comply with laws, other rules
and the principle of sound financial management.

In particular, operational management functions and financial
management functions shall be organised separately within the
Joint Managing Authority. The functions of authorising officer
and accounting officer shall be separate and mutually incom-
patible.

The Joint Managing Authority shall have an internal audit
from the departments
and

6.
service which shall be independent
performing
management functions.

authorising-officer,

accounting-officer

The

to ensure

Joint Managing Authority

7.
in place
the
procedures
programme are genuine and legitimate and shall establish
reliable computerised accounting, monitoring and financial
information systems.

expenses declared under

shall put

that

8.
The Joint Managing Authority shall in particular respect
the conditions and payment deadlines for the grant agreements
and procurement contracts that it signs with third parties. Using
appropriate verification procedures,
the
funds paid under grant agreements or procurement contracts
are used only for the purposes for which they were granted.

it shall ensure that

(1) OJ L 248, 16.9.2002, p. 1.

(2) OJ L 357, 31.12.2002, p. 1.

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A general system shall be used for the management of accounts
and the administrative and financial monitoring of grants and
contracts
reminders,
receipt of reports, etc.).

follow-up letters or

(correspondence,

(e)

after

Joint Monitoring
launching,
Committee, calls for tenders and calls for proposals for
the selection of projects;

approval

the

by

9.
The Joint Managing Authority shall without delay notify
the Commission and the Joint Monitoring Committee of any
change in its procedures or its organisation, or any other
circumstance likely to affect programme implementation.

(f)

receiving project applications, organising, chairing and
acting as secretariat for selection committees, and sending
reports including selection committee recommendations to
the Joint Monitoring Committee and the Commission;

10.
The Joint Managing Authority, and the various benefi-
ciaries, contractors and partners with which it signs contracts
for the implementation of
to
controls by the Commission, the European Court of Auditors
and the European Anti-Fraud Office (OLAF).

the projects, shall be subject

Article 15

Functions of the Joint Managing Authority

1.
The Joint Managing Authority shall be responsible for
managing and implementing the joint operational programme,
including technical assistance,
in line with the principle of
sound financial management and the principles of economy,
efficiency and effectiveness, and shall carry out any controls
necessary in accordance with the
and procedures
provided for by the relevant regulations.

rules

(g) following up the selection of projects by the Joint Moni-
toring Committee, signing contracts for the various projects
with beneficiaries and contractors;

(h) carrying

operational
management of the projects;

out

follow-up

and

financial

(i)

immediately notifying the Joint Monitoring Committee of all
contentious cases of recovery;

(j) carrying out any environmental impact assessment studies

at programme level;

The various tasks of the Joint Managing Authority shall

2.
include:

(k)

implementing the
accordance with Article 42.

information and visibility plan in

(a) organising and acting as a secretariat for meetings of the
including drawing-up the

Joint Monitoring Committee,
minutes of the meetings;

(b) preparing detailed annual budgets for the programme and

payment requests for the Commission;

Article 16

Joint Technical Secretariat

Each Joint Managing Authority may, with the prior
1.
agreement of
the Joint Monitoring Committee, use a Joint
Technical Secretariat with the requisite resources to assist it
with the day-to-day management of the activities under the
joint operational programme.

(c) drawing up annual operational and financial reports and
sending them to the Joint Monitoring Committee and the
Commission;

The operation of
financed from the technical assistance budget.

the Joint Technical Secretariat

shall be

(d)

implementing, through its internal audit service, an audit
programme to check internal circuits and to ensure that
procedures are properly applied within the Joint Managing
Authority; annual internal audit reports shall be sent to the
Joint Monitoring Committee and the Commission;

2.
The Joint Technical Secretariat may, if necessary, establish
small branch offices in participating countries for the purpose
of
in those countries of
informing potential beneficiaries
activities planned under the programme.

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Article 17

Principle of continuity

Article 20

Co-financing rate

Where an existing Joint Managing Authority with Commission-
approved systems for the management of previous or ongoing
programmes is reappointed to manage a joint operational
programme,
it shall not be necessary to modify the Joint
Managing Authority's organisational arrangements, provided
the systems used meet the requirements of this Regulation.

Co-financing shall amount

1.
the
Community contribution to the joint operational programme,
minus the amount of technical assistance financed from the
Community contribution.

least 10 % of

to at

CHAPTER IV

FINANCIAL MANAGEMENT OF THE JOINT OPERATIONAL
PROGRAMMES

2. Where possible, co-financing shall be distributed in a
balanced way throughout the duration of the programme in
such a way that the minimum objective of 10 % is achieved
by the end of the programme.

SECTION 1

Financing

Article 18

Technical assistance financed by the Community
contribution

No more than 10 % of the Community's total contribution to a
joint operational programme may be allocated to technical
assistance.

However, on a case-by-case basis and if warranted by the level
of expenditure incurred during previous years of implemen-
legitimate programme requirements, an
tation and forecast
the technical assistance initially
increase in the amount of
allocated to the programme may be considered.

Article 19

Co-financing sources

1.
Co-financing shall come from the own resources of the
countries or bodies participating in each joint operational
programme.

2. Within each joint operational programme the participating
countries shall be free to determine the source, amount and
distribution of co-financing between objectives and priorities.

3.
Contributions in kind from the Joint Managing Authority
may be considered as co-financing, subject to the prior approval
of
In this case they shall be explicitly
mentioned in the programme document.

the Commission.

Article 21

Bank account of the joint operational programme and
interest on pre-financing

1.
A single bank account in euro, specifically dedicated to
the programme, shall be opened and managed by the service
Joint Managing
acting as
Authority. The account shall be set up in such a way that the
transactions require signatures of both the authorising officer
and the accounting officer.

accounting officer within the

If the bank account bears interest, any interest generated
2.
by the pre-financing payments shall be assigned to the joint
operational
to the
and
Commission in the final report referred to in Article 32.

programme

declared

shall

be

Article 22

Accounts for the joint operational programme

Accounts for the joint operational programme shall be drawn
up by the
service within the Joint Managing Authority
responsible for financial transactions. These accounts shall be
independent and separate and shall
include only transactions
relating to the joint operational programme. They shall be
kept in such a way as to enable analytical monitoring of the
programme by objective, priority and measure.

The Joint Managing Authority shall present the Joint Monitoring
Committee with reports reconciling these accounts with the
balance
to
account
accompany the annual report and any request for additional
pre-financing.

the programme

in the bank

for

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Article 23

Contractual procedures

1.
The contractual procedures for procurement contracts and
grants necessary for implementation of the joint operational
programme by the Joint Managing Authority shall be those
applicable to external actions as defined in Articles 162 to
170 of Council Regulation (EC, Euratom) No 1605/2002 and
Articles 231 to 256 of
the Commission Regulation (EC,
Euratom) No 2342/2002.

The procedures and related standard documents and contract
templates to be used shall be those included in the Practical
Guide to contract procedures for EC external actions with
annexes in force at the time of the launching of procurement
procedures or calls for proposals.

The eligibility rules for participation in the calls for
2.
tenders and calls for proposals shall be those referred to in
Article 14 of Regulation (EC) No 1638/2006 in conformity
with Articles 40 and 41 of this Regulation.

3.
These provisions shall be applicable to the entire geogra-
phical area of the programme, both on the territory of the
Member States and on the territory of the partner countries.

SECTION 2

Payments

Article 24

Annual commitments by the Commission

Further to the initial commitment accompanying the decision
the Commission
adopting the joint operational programme,
shall each year make the corresponding commitment no later
than 31 March of the year concerned. The amount of this
shall be determined in accordance with the
commitment
financial
table detailing the provisional yearly allocations in
the joint operational programme, and shall also depend on
the programme's progress and the availability of funds. The
Commission shall inform the Joint Managing Authority of the
exact date on which the annual commitment is made.

Article 25

Common rules for payments

The Commission shall make each payment

1.
from the
Community contribution, subject to the availability of funds.
The Commission shall automatically deduct any payment to
annual
the

Joint Managing Authority

from the oldest

tranche until

this
commitment
commitment has been spent. When the oldest
annual
commitment tranche has been entirely spent, the next annual
commitment tranche may be used.

amount of

entire

the

Payments shall be made in euro to the bank account of

2.
the joint operational programme.

Payments may take the form of pre-financing or the final

3.
balance.

Article 26

Pre-financing

Each year, once the Joint Managing Authority has been
1.
notified of the budgetary commitment, it may request, as pre-
financing, the transfer of up to 80 % of the Community contri-
bution to the budget for the year in question.

From the second year of
the joint operational programme,
requests for pre-financing shall be accompanied by the provi-
sional annual
financial report covering all expenditure and
revenue from the previous year not yet certified in the annual
external audit report, and by the provisional budget detailing
the Joint Managing Authority's commitments and payments for
the following year.

After reviewing this report, assessing actual financing needs for
the programme and verifying the availability of
the
Commission shall proceed with the payment of all or part of
the requested pre-financing.

funds,

2.
In the course of the year, the Joint Managing Authority
may ask for the transfer of all or part of the balance of the
annual Community contribution, as additional pre-financing.

In support of its request, the Joint Managing Authority shall
submit an interim financial report showing that the expenditure
actually incurred or likely to be incurred before the end of the
year exceeds the amount of pre-financing already granted.

Such subsequent
constitute additional pre-
shall
financing in so far as they are not certified by an external
audit report.

transfers

3.
In the second half of each year of the programme's imple-
mentation, the Commission shall clear previous pre-financing
actually
payments on the basis of
incurred, as certified by the annual external audit
report
referred to in Article 31.

expenditure

eligible

On the basis of the results of this clearance, the Commission
may proceed with the necessary financial adjustments.

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Article 27

Recovery

remain responsible for the recovery after the one year period
has elapsed and the amounts due shall be declared ineligible for
Community financing.

1.
The Joint Managing Authority shall be responsible for the
recovery of any unjustified or ineligible expenditure and for the
reimbursement
its share or amounts
recovered, in proportion to its contribution to the programme.

to the Commission of

Where ineligible expenditure already covered by a payment is
identified on receipt of
for a contract or
following a control or an audit, the Joint Managing Authority
to the beneficiaries or
shall make out
contractors concerned.

the final report

recovery orders

2. Where the recovery relates to a claim against a beneficiary,
contractor or partner established in a Member State and the
Joint Managing Authority is unable to recover the debt within
one year of issuing the recovery order, the Member State in
which the beneficiary, contractor or partner is established shall
pay the amount owing to the Joint Managing Authority and
claim it back from the beneficiary, contractor or partner.

the issuing of

3. Where the recovery relates to a claim against a beneficiary,
contractor or partner established in a partner country and the
Joint Managing Authority is unable to recover the debt within
one year of
the Joint
Managing Authority shall refer the case to the Commission,
which, on the basis of a complete file, shall take over the
task of recovering the amounts owing from the beneficiary,
contractor or partner established in the partner country or
directly from the national authorities of that country.

the recovery order,

4.
Files transferred to a Member State or to the Commission
shall contain all the documents needed for recovery as well as
proof of steps taken by the Joint Managing Authority to the
beneficiary or contractor with a view to recovering the amounts
owed.

a

fixed amount

5.
The Joint Managing Authority shall exercise due diligence
to ensure reimbursement within one year of the issuing of the
recovery order. In particular it shall ensure that the claim is
certain, of
Joint
Managing Authority is planning to waive recovery of an estab-
lished debt,
it shall ensure that the waiver is in order and
complies with the principles of sound financial management
and proportionality. The waiver decision must be substantiated
and submitted to the Commission and the Joint Monitoring
Committee for prior approval.

and due. Where

the

7.
Pursuant to paragraphs 2 and 3, the contracts concluded
by the Joint Managing Authority as part of the programme shall
contain a clause allowing the Commission or the Member State
concerned to carry out recovery from a beneficiary, contractor
or partner where the claim is still open one year after the issue
of the recovery order by the Joint Managing Authority.

SECTION 3

Reports

Article 28

Annual reports of the Joint Managing Authority

1.
Each year, by 30 June at the latest, the Joint Managing
Authority shall submit to the Commission an annual report,
approved by the Joint Monitoring Committee and certified by
the audit report referred to in Article 31, on implementation of
the joint operational programme from 1 January to 31
December of the previous year. The first annual report shall
be submitted by 30 June of the second year of the programme.

2.

Each annual report shall contain:

(a) a technical part describing:

— the progress achieved in implementing the programme

and its priorities,

— the detailed list of

the signed contracts as well as

possible difficulties encountered,

— the technical assistance activities carried out during the

previous year,

— the measures undertaken to monitor, evaluate and audit
projects, their results and actions undertaken to remedy
to the problems identified,

— the information and communication activities,

6. When the debt has not been recovered or a complete file,
as referred to in paragraph 4, has not been transferred to the
Member State or the Commission, due to the negligence of the
Joint Managing Authority, the Joint Managing Authority shall

— the programme of activities to be implemented the

following year.

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(b) a financial part giving, in euro, for each priority:

— the amounts allocated to the Joint Managing Authority
by the Commission as the Community contribution and
by the participating countries as co-financing, as well as
any other possible revenue for the programme,

in detail

the methodology used by

for the projects, referred to in Article 37. The report shall
describe
Joint
Managing Authority for selecting a representative sample of
projects, as well as the controls carried out, the recommen-
Joint
dations made
Managing Authority in relation to the financial management
of the projects concerned.

conclusions drawn by the

and the

the

— the payments made and amounts recovered by the Joint
Managing Authority for technical assistance and for the
projects, as well as the report reconciling these with the
bank account for the programme,

The Joint Managing Authority shall

2.
send the report
referred to in paragraph 1 to the Commission and to the
Joint Monitoring Committee as an annex to the annual report
referred to in Article 28.

— the amount of eligible expenditure incurred by the
in their

projects as presented by the beneficiaries
reports and payment requests,

— the provisional budget (commitments and expenditure)
of the Joint Managing Authority for the following year.

and

giving

control

(c) a declaration signed by the representative of

an
systems

assurance
set

the Joint
the
that
Managing Authority
management
the
by
programme in the course of the previous year continue to
comply with the model approved by the Commission and
that they have operated in such a way as to warrant a
reasonable degree of confidence in the correctness of the
financial report and in the legality and regularity of the
transactions to which it relates.

up

Article 31

External audit report

Independently of the external audits of the Joint Managing
1.
Authority undertaken by the administration of the country in
which the Joint Managing Authority is established, the Joint
Managing Authority shall call upon an independent public
body or contract an independent approved auditor who is a
member of an internationally recognised supervisory body for
statutory auditing to carry out each year an ex post verification
of the revenue and expenditure presented by the Joint Managing
Authority in its annual financial report, in accordance with the
Federation of
the
standards
Accountants (IFAC).

and ethics of

International

Article 29

Annual report of the internal audit service

1.
The internal audit service of the Joint Managing Authority
shall each year implement a control programme to check the
internal circuits and ensure procedures have been correctly
applied within the Joint Managing Authority. It shall draw up
an annual report and send it to the representative of the Joint
Managing Authority.

The Joint Managing Authority shall

2.
send the report
referred to in paragraph 1 to the Commission and to the
Joint Monitoring Committee as an annex to the annual report
referred to in Article 28.

The scope of

2.
the external audit shall cover the Joint
Managing Authority's direct expenditure on technical assistance
and project management (payments). The external audit report
shall certify the statement of revenue and expenditure presented
by the Joint Managing Authority in its annual financial report,
and in particular it shall certify that stated expenditure has
actually been incurred and is accurate and eligible.

The Joint Managing Authority shall send the external audit
3.
report
to the Commission and to the Joint Monitoring
Committee as an annex to the annual report referred to in
Article 28.

Article 30

Article 32

Final report

Annual report on implementation of the audit plan for the
projects

1.
Each year the Joint Managing Authority shall draw up a
report on the previous year's implementation of the audit plan

The final report on implementation of the joint operational
programme shall contain mutatis mutandis the same elements
as the annual reports,
including their annexes, for the entire
duration of the programme. It shall be submitted by 30 June
2016 at the latest.

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SECTION 4

(d) the cost of consumables;

Eligible expenditure of the joint operational programme

Article 33

Eligible costs at joint operational programme level

In order to be eligible for Community financing,

the
1.
the joint operational programme must be
expenditure of
incurred during the programme's period of execution, as
defined in Article 43.

To be considered eligible as technical assistance costs,
2.
costs relating to the implementation of the joint operational
programme by the Joint Managing Authority must:

(a) be necessary

for

in
implementing
compliance with the criteria defined by the programme
and by the Joint Monitoring Committee and comply with
the principles of sound financial management, in particular
value for money and cost-effectiveness;

programme

the

(b) be recorded in the accounts of the programme, be identi-
supporting

and backed by original

verifiable

fiable,
documents;

(e)

indirect costs to cover administrative overheads;

(f)

the subcontracting expenditure;

(g) costs deriving directly from requirements imposed by this
information
Regulation and the programme (for example,
and visibility operations, evaluations, external audits, trans-
lations etc.) including financial service costs (in particular
the cost of bank transfers).

Article 34

Non-eligible costs at joint operational programme level

The following costs relating to the implementation of the joint
operational programme by the Joint Managing Authority shall
not be considered eligible as technical assistance costs:

(a) debts and provisions for losses or debts;

(b) interest owed;

(c)

items already financed in another framework;

(d) purchases of land or buildings;

(c) have been incurred in compliance with the

relevant

procurement procedures.

(e) exchange-rate losses;

Subject to paragraphs 1 and 2, the following costs shall be

3.
eligible:

(f)

taxes, including VAT, unless the Joint Managing Authority
regulations
cannot
authorise coverage of taxes;

reclaim them and the

applicable

(a)

the cost of staff assigned to the programme, corresponding
to actual salaries plus social security charges and other
remuneration-related costs. Salaries and costs must not
exceed those normally borne by the structures hosting the
Joint Managing Authority or the Joint Technical Secretariat,
unless it is justified by showing that this is essential to
carrying out the joint operational programme;

(b) travel and subsistence costs for staff and other persons
taking part in the joint operational programme, provided
they do not exceed those normally borne by the authorities
appointed to manage the programme. Any flat-rate reim-
bursement of the subsistence costs must not exceed the
rates of the scales published by the European Commission
at
the joint operational
programme;

the adoption of

the time of

(g)

loans to third parties;

(h) fines.

Article 35

Contributions in kind at the joint operational programme
level

Any contributions in kind from the participating countries, or
any other source, shall be listed separately in the budget of the
joint operational programme and shall not be eligible.

They may not be considered part of the minimum 10 % co-
financing requirement for the participating countries referred to
in Article 20.

(c) purchase or rental costs for equipment and supplies (new or
used) specifically for the purposes of the Joint Managing
Authority or the Joint Technical Secretariat for implemen-
tation of
the joint operational programme and costs of
services, provided they correspond to market rates;

The cost of staff assigned by participating countries to technical
assistance for the programme shall not be considered a contri-
bution in kind and cannot be considered as co-financing in the
budget of the programme, with the exception of the initial in-
kind contribution by the Joint Managing Authority referred to
in Article 19(3) of this Regulation.

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Article 36

Eligible costs at projects level

Expenditure for each project shall be incurred during the

1.
period of execution of each relevant contract.

operations or parts of operations implemented on their terri-
tories, and the compliance of such expenditure and of related
operations, or parts of those operations, with Community rules
and their national rules.

2.
Eligible costs, non-eligible costs and the possibility of
contributions in kind at project level shall be described in the
contracts concluded with the beneficiaries or contractors.

SECTION 5

Control

Article 37

Annual audit plan for projects

From the end of the first year of the joint operational
the Joint Managing Authority shall each year

1.
programme,
draw up an audit plan for the projects that it finances.

internationally recognized audit

2.
The controls referred to in paragraph 1 shall be conducted
by examining the documents or conducting on-the-spot checks
of a sample of projects selected by the Joint Managing Authority
based on a random statistical sampling method taking account
of
in particular
having regard to risk factors related to the projects’ value,
relevant
type of operations,
elements. The sample shall be sufficiently representative to
warrant a satisfactory level of confidence in relation to the
direct controls carried out by the Joint Managing Authority
expenditure
on the
claimed by the projects.

existence, accuracy and eligibility of

type of beneficiary or other

standards,

Article 38

Community control

The Commission, OLAF, the European Court of Auditors and
any external auditor authorised by these institutions may verify,
by examining the documents or conducting on-the-spot checks,
the use of Community funds by the Joint Managing Authority
and the various project beneficiaries and partners.

supporting documents

These checks may take the form of a full audit on the basis of
the
accounting
for
documents and any other document relevant to the financing
of the joint operational programme (including, for the Joint
Managing Authority, all documents related to the selection
procedures and to contracts) and of the project.

accounts,

the

Article 39

National control system

Member States may set up a control system making it possible
the expenditure declared for
to verify the soundness of

CHAPTER V

PROJECTS FINANCED BY THE JOINT OPERATIONAL
PROGRAMMES

Article 40

Bodies participating in projects under the joint operational
programmes

1.
Projects shall be submitted by applicants representing
partnerships consisting of at least one partner from a Member
State participating in the programme and at least one partner
from a partner country participating in the programme.

The applicants and partners referred to in paragraph 1 are
2.
established in regions defined in Article 4(a) and (b) and comply
with the eligibility criteria defined in Article 23(2) of this Regu-
lation.

In cases where the projects’ objectives cannot be achieved
without
the participation of partners established in regions
other than those defined in the first subparagraph, participation
of these other partners can be accepted.

Article 41

Nature of projects

The nature of these projects may be of three kinds:

(a)

integrated projects, where each partner carries out a part of
the activities of the joint project on its own territory;

(b) symmetrical projects, where similar activities are carried out
in parallel in Member States and in partner countries;

(c) projects implemented mainly or entirely in a Member State
or a partner country but for the benefit of all or some of
the partners involved in the joint operational programme.

Projects take place in regions defined in Article 4(a) and (b) of
this Regulation.

if necessary for achieving projects’
In exceptional
objectives, projects can take place partially in regions other
than those defined in the second paragraph.

cases,

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Article 42

Article 44

Information and visibility of

the

joint operational

Early termination of the programme

programme

The Joint Managing Authority shall be responsible for
1.
information and visibility actions relating
implementation of
to the joint operational programme.
the Joint
Managing Authority shall take all necessary steps to ensure
the visibility of the Community financing or co-financing in
the
relation to its own activities and to the activities of
projects financed under the programme. Such measures shall
comply with the relevant rules on the visibility of external
actions laid down and published by the Commission.

In particular,

The responsibility of any branch offices of

2.
the Joint
Technical Secretariat which might be set up in participating
countries shall be to publicise activities under the joint opera-
tional programme and to provide anyone who may be
interested with information.

CHAPTER VI

CLOSURE OF JOINT OPERATIONAL PROGRAMMES

Article 43

Duration of the joint operational programmes

execution of

The period of

each joint operational
1.
the
the date of
programme shall
adoption of
the
by
the
Commission and end on 31 December 2016 at the latest.

the earliest at
joint operational programme

start at

This period of execution shall comprise the following

2.
phases:

for

the

(a) an implementation phase

joint operational
programme with a maximum duration of seven years
ending at 31 December 2013 at the latest. No call for
tenders or call
for proposals may be launched and no
contract may be signed after this date, with the exception
of audit and evaluation contracts;

(b) an implementation phase for projects financed by the joint
operational programme starting at the same time as the
implementation phase for the programme and ending on
31 December 2014 at the latest. All activities of projects
financed by the programme shall end by that date at the
latest;

1.
In the cases described in Article 9(10)(c) and (d) of Regu-
lation (EC) No 1638/2006 and in other duly justified cases, the
Commission may decide to terminate the joint operational
programme before the expiry date of the period of execution,
at the request of the Joint Monitoring Committee or on its own
initiative
Joint Monitoring
consulted
Committee.

having

after

the

In this case the Joint Managing Authority shall refer the
2.
request to the Commission and transmit the final report within
the deadline of three months following the decision of the
Commission. After
pre-financing
the Commission shall pay the final balance or,
payments,
issue the final recovery order vis-à-vis the
where appropriate,
Joint Managing Authority. The Commission shall also decommit
the balance of commitments.

previous

clearing

the

3. Where the programme is terminated because partner
countries do not
sign financing agreements within the
required deadlines, budgetary allocations already committed to
cross-border cooperation under the European Neighbourhood
and Partnership Instrument under heading 1B of the Financial
Perspective (Interinstitutional Agreement 2006/C 139/01) shall
remain available for their normal lifetime but may be used only
for activities which take place exclusively in the Member States
concerned. The European Neighbourhood and Partnership
Instrument allocations committed to the cross-border coop-
eration from heading 4 of the Financial Perspectives (Interinsti-
tutional Agreement 2006/C 139/01) shall be decommitted.

4.
If partner countries do not sign the financing agreement
or the Commission decides to terminate the joint operational
programme before the normal expiry date of the programme,
the following procedure shall apply:

(a)

the

and

European Neighbourhood

Partnership
for
Instrument allocations for cross-border cooperation from
heading 1B of the Financial Perspective (Interinstitutional
Agreement 2006/C 139/01), the amounts earmarked for
future
joint operational
programme concerned shall be used within the framework
of
in
the European Regional Development Fund (ERDF)
accordance with the procedures
referred to in Article
9(10) of Regulation (EC) No 1638/2006;

commitments of

annual

the

(c) a

for

the

financial

closure phase

joint operational
programme including the financial closure of all contracts
concluded as part of the programme, the ex post evaluation
of the programme, the submission of the final report and
the final payment or final recovery by the Commission. This
phase shall end on 31 December 2016 at the latest.

(b) for

the

and

European Neighbourhood

Partnership
Instrument allocations for cross-border cooperation from
heading 4 of the Financial Perspectives (Interinstitutional
Agreement 2006/C 139/01), the amounts earmarked for
future
joint operational
programme concerned shall be used to finance other
programmes or projects eligible under Regulation (EC) No
1638/2006.

commitments of

annual

the

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Article 45

Keeping of documents

The Joint Managing Authority and the various project benefi-
for seven years from the date of
ciaries and partners shall,
payment of the balance for the programme or for a project,
keep all documents related to the joint operational programme
or a project, in particular the reports and supporting documents
as well as accounts, accounting documents and any other
the joint operational
document relating to the financing of
programme (including, for the Joint Managing Authority, all
documents relating to the selection and to contracts) and of
the project.

Article 46

Closure of the programme

A joint operational programme shall be considered closed

1.
after:

(b) the final balance has been paid or reimbursed;

(c) remaining appropriations have been decommitted by the

Commission.

financial

2.
The closure of
the operational programme shall not
prejudice the Commission's
to undertake, at a later
Joint Managing
corrections
stage,
Authority or the project beneficiaries if the final amount of
the programme or the projects has to be readjusted as a
result of controls carried out after the closure date.

right
vis-à-vis

the

CHAPTER VII

FINAL PROVISIONS

Article 47

Entry into force

(a) all the contracts concluded under the programme have been

closed;

This Regulation shall enter into force on the seventh 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, 9 August 2007.

For the Commission

Benita FERRERO-WALDNER
Member of the Commission