2008/456/EC: Commission Decision of 5 March 2008 laying down rules for the implementation of Decision No 574/2007/EC of the European Parliament and of the Council establishing the External Borders Fund for the period 2007 to 2013 as part of the General programme Solidarity and Management of Migration Flows as regards Member States' management and control systems, the rules for administrative and financial management and the eligibility of expenditure on projects co-financed by the Fund (notified under document number C(2008) 789)
Date: 2008-03-05
Institutions: European Commission
Subjects: EU programme, border control, cooperation policy, eligibility criteria, exchange of information, external border of the EU, financial management, fund (EU), migratory movement

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II

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

DECISIONS

COMMISSION

COMMISSION DECISION

of 5 March 2008

laying down rules for the implementation of Decision No 574/2007/EC of the European Parliament
and of the Council establishing the External Borders Fund for the period 2007 to 2013 as part of the
General programme ‘Solidarity and Management of Migration Flows’ as regards Member States'
management and control systems, the rules for administrative and financial management and the
eligibility of expenditure on projects co-financed by the Fund

(notified under document number C(2008) 789)

(Only the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian,
Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish texts are
authentic)

(2008/456/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Commu-
nity,

Having regard to Decision No 574/2007/EC of the European
Parliament and of the Council of 23 May 2007 establishing the
External Borders Fund for the period 2007 to 2013 as part of the
General programme ‘Solidarity and Management of Migration
Flows’ (1),
in particular Articles 25, 33(5), 35(6) and 37(4)
thereof,

Whereas:

(1)

(2)

It is necessary to lay down the conditions under which
Member States should implement the action under the
Fund, in particular to identify under which circumstances
the responsible authority may implement projects directly.
Further provisions should also be laid down for delegated
authorities.

It
is necessary to identify a list of procedures and/or
practical arrangements that the different designated author-
ities should lay down and follow for implementation of the
Fund.

(3)

It is necessary to lay down the obligations which the
responsible authorities should have with regard to final

(1) OJ L 144, 6.6.2007, p. 22.

(4)

(5)

(6)

beneficiaries in the phase leading to selection and approval
of the projects to be funded and with regard to the aspects
which should be covered by the verifications of
the
expenditure declared by the final beneficiary and/or by
the partners
including administrative
verifications of the applications for reimbursement and
on-the-spot verifications of individual projects.

in the project,

that

to ensure

annual
In order
programmes can be properly audited,
it is necessary to
set out the criteria with which audit trails should comply in
order to be considered adequate.

expenditure under

The audits of projects and of systems are carried out under
the responsibility of the audit authority. To ensure that the
audits offer adequate scope and effectiveness and are carried
out in accordance with the same standards in all Member
States, it is necessary to set out the conditions which the
audits should fulfil, including the basis for sampling.

The Member States must submit
to the Commission,
together with their multiannual programme, a description
of
their management and control systems. Since this
document is one of the principal bases on which the
Commission relies, in the context of shared management of

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the Community budget, to determine whether the financial
assistance concerned is used by the Member States in
accordance with the applicable rules and principles for
protecting the Community's
is
necessary to set out in detail the information that this
document should contain.

interests,

financial

it

(12) Use of electronic means to exchange information and
financial data between the Member States and the
Commission leads to simplification,
increased efficiency,
transparency and time savings. In order to capitalise fully
on these advantages while preserving the security of
exchanges, a common computer system may be established
by the Commission.

(7)

(8)

(9)

(10)

(11)

standards

to harmonise

In order
for programming,
following up the implementation of the Fund, auditing
and certifying expenditure, it is necessary to clearly define
the contents of the multiannual programme, the annual
programme,
the
applications for payments as well as the audit strategy, the
annual audit report, the declaration of validity and the
certification of expenditure.

the progress report,

the final report,

Since Member States are required to report and monitor
irregularities and to recover
sums wrongly paid in
connection with the financing from the Fund, it is necessary
to define requirements for the data sent to the Commission.

insufficiently aware of

Experience has shown that citizens of the European Union
role played by the
are
Community in funding programmes.
therefore
is
appropriate to define in detail the information and publicity
measures necessary to bridge this communication and
information gap.

the

It

In order to guarantee that information on possible funding
opportunities is disseminated widely to all interested parties
and for the sake of transparency, the minimum measures
needed to inform potential final beneficiaries about the
financing opportunities offered jointly by the Community
and the Member States through the Fund should be set out.
In order to enhance transparency about use of the Fund, the
list of final beneficiaries, the names of the projects and the
amount of public funding allocated to projects should be
published.

In the light of Directive 95/46/EC of
the European
Parliament and of the Council of 24 October 1995 on
the protection of individuals with regard to the processing
of personal data and on the free movement of such data (1)
and Regulation (EC) No 45/2001 of
the European
Parliament 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 (2), it is necessary to
provide,
in relation to the information and publicity
measures and audit work under this Decision, 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.

(1) 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).

(2) OJ L 8, 12.1.2001, p. 1.

(13) To ensure efficient implementation of the Fund in the
Member States, in accordance with the principles of sound
financial management, a series of common rules should be
adopted on the eligibility of expenditure from the Fund. In
to reduce the administrative burden on final
order
beneficiaries and designated authorities,
for
indirect costs should be eligible under certain conditions.

rates

flat

(14)

(15)

is necessary to lay down detailed rules
the support

the
It
implementation of
to the Special Transit
Scheme established by Council Regulation (EC) No 693/
2003 (3) and Council Regulation (EC) No 694/2003 (4).

for

In accordance with Articles 1 and 2 of the Protocol on the
position of Denmark, annexed to the Treaty on European
Union and the Treaty establishing the European Commu-
nity, Denmark is not bound by the present Decision or
subject to its application. Given that Decision No 574/
2007/EC builds upon the Schengen acquis under
the
the Treaty
provisions of Title IV of Part Three of
establishing the European Community, Denmark shall, in
accordance with Article 5 of the said Protocol, decide
within a period of six months after the date of adoption of
that Decision whether it will implement it in its national
law.

(16) This Decision constitutes a development of the provisions
of the Schengen acquis in which the United Kingdom does
not take part, in accordance with Council Decision 2000/
365/EC of 29 May 2000 concerning the request of the
United Kingdom of Great Britain and Northern Ireland to
the Schengen
take part
acquis (5) and the subsequent Council Decision 2004/926/
EC of 22 December 2004 on the putting into effect of parts
of the Schengen acquis by the United Kingdom of Great
Britain and Northern Ireland (6). The United Kingdom is
therefore not bound by it or subject to its application.

the provisions of

in some of

(17) This Decision constitutes a development of the provisions
of the Schengen acquis in which Ireland does not take part,
in accordance with Council Decision 2002/192/EC of
28 February 2002 concerning Ireland's request to take part
in some of the provisions of the Schengen acquis (7). Ireland
is therefore not bound by it or subject to its application.

(3) OJ L 99, 17.4.2003, p. 8.
(4) OJ L 99, 17.4.2003, p. 15.
(5) OJ L 131, 1.6.2000, p. 43.
(6) OJ L 395, 31.12.2004, p. 70.
(7) OJ L 64, 7.3.2002, p. 20.

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(18) As regards Iceland and Norway, Decision No 574/2007/EC
constitutes a development of provisions of the Schengen
acquis within the meaning of the Agreement concluded by
the Council of the European Union and the Republic of
Iceland and the Kingdom of Norway concerning the
association of those two States with the implementation,
application and development of the Schengen acquis (1),
which fall within the areas referred to in Article 1, points A
and B of Council Decision 1999/437/EC of 17 May 1999
on certain arrangements
the
for
the European
Agreement concluded by the Council of
Union and the Republic of Iceland and the Kingdom of
Norway concerning the association of those two States with
the implementation, application and development of the
Schengen acquis (2).

the application of

(19) As regards Switzerland, Decision No 574/2007/EC con-
stitutes a development of the provisions of the Schengen
aquis within the meaning of the Agreement signed by the
European Union, the European Community and the Swiss
Confederation on the latter's association with the imple-
mentation, application and development of the Schengen
acquis which fall within the areas referred to in Article 4(1)
of the Council decision (3) on the signing, on behalf of the
European Community, and on the provisional application
of certain provisions of this Agreement.

(20) The measures provided for

in this Decision are in
accordance with the opinion of the Management Commit-
tee of the Fund,

HAS ADOPTED THIS DECISION:

(1) OJ L 176, 10.7.1999, p. 36.
(2) OJ L 176, 10.7.1999, p. 31.
(3) OJ L 370, 17.12.2004, p. 78.

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TABLE OF CONTENTS

Part I

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter I

Subject and definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 1

Subject matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 2 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II

Provisions common to the four Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 1

Designated authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 3

Common authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 4 Delegated authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 5 Outsourcing of tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 2

Management and control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 6

Manual of procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 7

Implementation of the Fund by the responsible authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 8

Conditions under which the responsible authority acts as executing body . . . . . . . . . . . . . . . . . . . . .

Article 9

Selection and award procedure when the responsible authority acts as awarding body . . . . . . . . .

Article 10 Grant agreements with final beneficiaries when the responsible authority acts as awarding body

6

6

6

6

7

7

7

7

7

7

7

8

8

8

9

Article 11

Implementation contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

Article 12 Determination of the final Community contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 13

Technical assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 14

Technical assistance expenditure in the case of a common authority . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

10

10

Article 15 Verifications by the responsible authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

Article 16 Audit trail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 17 Audits of systems and audits of projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 18 Verifications by the certifying authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

11

12

Chapter 3

Information to be provided regarding use of the Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

Article 19

Principle of proportionality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 20 Description of management and control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 21

Revision of the description of management and control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

12

12

Article 22

Programming documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Article 23

Revision of financial breakdown in annual programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 24

Progress and final reports on implementation of annual programmes . . . . . . . . . . . . . . . . . . . . . . . . .

13

13

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Article 25 Documents established by the audit authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 26 Documents established by the certifying authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 4

Reporting irregularities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 27

Initial reporting — derogations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 28

Reporting of follow-up — non-recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 29

Contacts with Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 30 Use of information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 5

Information and publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 31

Information for potential final beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 32

Information for final beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 33

Responsibilities of the responsible authority relating to information and publicity for the general
public . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 34

Responsibilities of final beneficiaries relating to information and publicity for the general public

Article 35

Technical characteristics of information and publicity for the operation . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 6

Personal data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 36

Protection of personal data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 7

Electronic exchange of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 37

Electronic exchange of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 38

Computer system for the exchange of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

Provisions specific to the External Borders Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 1

Eligibility rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 39

Eligibility rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 2

Special Transit Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 40

Support for the implementation of the Special Transit Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV

Final provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 41 Addressees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

14

14

14

14

15

15

15

15

15

15

16

16

16

16

16

16

16

17

17

17

17

17

17

17

ANNEXES

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

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PART I

INTRODUCTION

CHAPTER I

Subject and definitions

Article 1

Subject matter

1. This Decision lays down rules for implementation of the
Fund as regards:

(a)

designated authorities;

(b) management and control systems;

third-country nationals, as
Fund for the Integration of
established by Decision No 573/2007/EC (2), Decision
No 574/2007/EC and Decision No 575/2007/EC (3) of
the European Parliament and of the Council and Council
Decision 2007/435/EC (4) as part of
the General pro-
gramme ‘Solidarity and Management of Migration Flows’,

— ‘responsible authority’: the body designated by a Member

State under Article 27(1)(a) of the basic act,

— ‘certifying authority’: the body designated by a Member

State under Article 27(1)(b) of the basic act,

— ‘audit authority’: the body designated by a Member State

under Article 27(1)(c) of the basic act,

— ‘delegated authority’: the body designated by a Member

State under Article 27(1)(d) of the basic act,

— ‘designated authorities’: all the authorities designated by a

Member State under Article 27 of the basic act,

(c)

information to be provided by the Member States to the
Commission regarding use of the Fund;

— ‘action’: action under the Fund, as those being listed under
the specific objectives defined in Article 4 and as defined in
Article 6 of the basic act,

(d)

reporting of irregularities;

(e)

information and publicity;

(f)

personal data;

(g)

electronic exchange of documents.

2. The provisions set out below shall apply without prejudice
to Council Regulation (Euratom, EC) No 2185/96 of 11 Novem-
ber 1996 concerning on-the-spot checks and inspections carried
the European
out by the Commission in order to protect
Communities'
fraud and other
irregularities (1).

financial

interests

against

Article 2

Definitions

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

— ‘basic act’: Decision No 574/2007/EC,

— ‘Fund’: the External Borders Fund, as established by the

basic act,

— ‘project’: specific, practical means deployed to implement all
or part of an action by the final beneficiaries of grants,

— ‘final beneficiary’: the legal entity responsible for imple-
menting projects such as NGOs, federal, national, regional
or local authorities, other non-profit organisations, private
or public-law companies or international organisations,

— ‘partner in the project’: any legal entity which implements a
project in cooperation with a final beneficiary by providing
the project with resources and by receiving part of the
Community contribution through the final beneficiary,

— ‘strategic guidelines’: the framework for intervention by the
Fund, as adopted by Commission Decision 2007/599/
EC (5),

— ‘priority’: set of actions defined as a priority in the strategic

guidelines,

— ‘specific priority’: set of actions defined as a specific priority
in the strategic guidelines, allowing co-financing at a higher
rate, in accordance with Article 16(4) of the basic act,

— ‘primary administrative or judicial finding’: 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,

— ‘four Funds’:

the External
the European Refugee Fund,
Borders Fund, the European Return Fund and the European

(1) OJ L 292, 15.11.1996, p. 2.

(2) OJ L 144, 6.6.2007, p. 1.
(3) OJ L 144, 6.6.2007, p. 45.
(4) OJ L 168, 28.6.2007, p. 18.
(5) OJ L 233, 5.9.2007, p. 3.

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— ‘irregularity’: any infringement of a provision of Commu-
nity law resulting from an act or omission by an economic
operator which has, or would have, the effect of prejudicing
the general budget of the European Union by charging an
unjustified item of expenditure to the general budget,

— ‘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 referred to in point (a) of Article 1(1) of
the Convention drawn up on the basis of Article K.3 of the
Treaty on European Union, on the protection of
the
European Communities' financial interests (1),

— ‘bankruptcy’: insolvency proceedings, as defined in Arti-
cle 2(a) of Council Regulation (EC) No 1346/2000 (2),

— ‘grant agreement’: an agreement or an equivalent form of
instrument on the basis of which Member States
legal
provide grants to the final beneficiary for the purpose of
implementing the project under the Fund.

PART II

PROVISIONS COMMON TO THE FOUR FUNDS

CHAPTER 1

Designated authorities

Article 3

Common authorities

Member States may designate the same responsible authority,
audit authority or certifying authority for two or more of the
four Funds.

Article 4

Delegated authority

1. Any delegation of tasks shall comply with the principle of
sound financial management, which requires effective and
efficient internal control, and shall ensure compliance with the
principle of non-discrimination and the visibility of Community
funding. No implementing tasks delegated may give rise to
conflicts of interest.

2. The scope of the tasks delegated by the responsible authority
to the delegated authority and the detailed procedures for
implementation of the delegated tasks shall be formally recorded
in writing.

The act of delegation shall mention at least:

(a)

the references of the relevant Community legislation;

(1) OJ C 316, 27.11.1995, p. 49.
(2) OJ L 160, 30.6.2000, p. 1. Regulation as last amended by Regulation

(EC) No 681/2007 (OJ L 159, 20.6.2007, p. 1).

(b)

the task entrusted to the delegated authority;

(c)

(d)

(e)

the rights and duties of the delegated authority and the
responsibilities it assumes;

the obligation for the delegated authority to put in place
and to maintain an organisational structure and a manage-
ment and control system adapted to performance of its
duties;

the assurance to be provided concerning sound financial
management and the legality and regularity of the delegated
tasks.

3. The handling of communication with the Commission
referred to in Article 27(1)(a) of the basic act shall not be
delegated. The delegated authority shall communicate with the
Commission via the responsible authority.

4.
If the delegated authority is not a public administration or a
body governed by the private law of the Member State which has
a public-service mission, the responsible authority may not
delegate to that authority any executive powers which involve a
large measure of discretion implying political choices.

5. Delegation of tasks to the delegated authorities shall not
affect
the responsible authority, which shall
remain answerable for the tasks it has delegated.

the liability of

6. Where the responsible authority has delegated tasks to the
delegated authority, all provisions of this Decision relating to the
responsible authority shall apply mutatis mutandis
to the
delegated authority.

Article 5

Outsourcing of tasks

Designated authorities may outsource some of their tasks but
they shall
the outsourced tasks in
accordance with the responsibilities defined in Articles 29, 31
and 32 of the basic act.

remain answerable for

CHAPTER 2

Management and control systems

Article 6

Manual of procedures

In accordance with Article 33(2) of the basic act and having
regard to the principle of proportionality, Member States shall
establish a manual
setting out procedures and practical
arrangements regarding:

(a)

functioning of the designated authorities;

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(b)

arrangements ensuring appropriate separation of functions;

and communicated to the Commission within the framework of
the annual programme concerned.

(c) where appropriate, monitoring of delegated authorities and

other outsourced tasks;

(d)

establishment of multiannual and annual programmes;

(e)

establishment of audit strategy and annual audit plans;

(f)

selection of projects, award of grants and monitoring and
financial management of the projects;

(g) management of
recoveries;

irregularities,

financial corrections and

(h)

preparation and implementation of audit missions;

(i)

(j)

preparation of audit reports and declarations;

certification of expenditure;

(k)

evaluation of the programme;

(l)

reporting to the Commission;

(m) audit trail.

Article 7

Implementation of the Fund by the responsible authority

2. When implementing the projects, the responsible authority
shall ensure the principle of value for money and prevent
conflicts of interest.

the projects
3. The responsible authority may implement
identified in accordance with Article 7(3) directly and/or in
association with any national authority competent on account of
its technical expertise,
its high degree of specialisation or its
administrative powers. The main national authorities involved in
implementation shall also be identified in the annual programme
concerned.

4. The administrative decision to co-finance a project under the
Fund shall contain the information necessary to monitor the co-
financed products and services and to check the expenditure
incurred. All relevant provisions laid down for a grant agreement
in Article 10(2) shall be specified in an equivalent form of legal
instrument.

final

report on implementation of

5. The
annual
include information on the procedures and
programme shall
practices applied to ensure adequate separation of functions,
effective control and satisfactory protection of the European
Communities' financial interests and shall provide explanations
on how conflicts of interest have been avoided.

the

For implementation of the Fund, the responsible authority

1.
may act as awarding body and/or as executing body.

6. When the responsible authority is expected to be executing
body on a regular basis for projects co-financed by the Fund:

2. The responsible authority acts as awarding body in cases
where it implements the projects, as a general rule, on the basis
of annual open calls for proposals.

Neither the responsible authority nor any delegated authority
may apply in response to these calls for proposals.

including continuation of multiannual
In duly justified cases,
projects in accordance with Article 16(6) of the basic act which
were selected after a previous call for proposals or in emergency
situations, grants may be awarded without a call for proposals.

3. The responsible authority acts as executing body in cases
where it decides to implement the projects directly because the
characteristics of
leave no other choice for
implementation, such as de jure monopoly situations or security
reasons. In these cases, the rules concerning the final beneficiary
shall apply mutatis mutandis to the responsible authority.

the projects

(a)

the audit authority shall not be part of the same body as the
responsible authority, except when its audit independence is
guaranteed and it also reports to another body outside the
body of which it and the responsible authority form part;

(b)

the responsible authority, as defined in
the tasks of
Article 29 of the basic act, shall not be affected when the
responsible authority also implements projects directly.

7. When a delegated authority is expected to be executing body
for projects co-financed by the Fund, this delegated authority
may not be the sole final beneficiary of the appropriations which
it was delegated to manage.

Article 8

Conditions under which the responsible authority acts as
executing body

Article 9

Selection and award procedure when the responsible
authority acts as awarding body

1. The reasons which led the responsible authority to act as
executing body for implementation of projects shall be identified

1. The calls for proposals defined in Article 7(2) shall be
published in a way that ensures maximum publicity among

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potential beneficiaries. Any change to the content of the calls for
proposals shall also be published under the same conditions.

The calls for proposals shall specify:

(a)

the objectives;

(b)

the selection criteria, which shall comply with Article 16(5)
of the basic act, and the relevant supporting documents;

(c)

the arrangements
national financing;

for Community and,

if applicable,

Article 10

Grant agreements with final beneficiaries when the
responsible authority acts as awarding body

1. The responsible authority shall lay down detailed project
management procedures covering, inter alia:

(a)

(b)

signature of grant agreements with selected final benefici-
aries;

follow-up of agreements and any amendment thereto by
establishing a system for administrative monitoring of
issuing and mon-
projects (exchange of correspondence,
itoring amendments and reminder letters,
receipt and
processing of reports, etc.).

(d)

the arrangements and final date for
proposals.

submission of

2. The grant agreements shall lay down, inter alia:

For the purposes of selection of projects and award of
2.
the responsible authority shall ensure that potential
grants,
beneficiaries are informed of the following specific conditions
concerning the projects to be implemented:

(a)

the eligibility rules for the expenditure;

(b)

the time-limit for implementation; and

(c)

the financial and other
communicated.

information to be kept and

Before the award decision is taken the responsible authority shall
satisfy itself that the final beneficiary and/or the partners in the
project have the capacity to fulfil these conditions.

3. The responsible authority shall ensure that projects awarded
grants have been subject to a formal, technical and budgetary
analysis and qualitative assessment applying the criteria laid
down in the call for proposals. The reasons for rejection of the
other projects shall be recorded.

4. Member States shall determine who shall have the power to
award projects and shall ensure that conflicts of interest are
avoided in all cases and, in particular, when the applicants are
national bodies.

5. The award decision shall indicate at least the name of the
final beneficiary and/or of
the
essential details of the project and its operational objectives, the
maximum amount of co-financing from the Fund and the
maximum rate of co-financing of the total eligible costs.

the partners in the project,

6. Written information shall be sent to each applicant on the
results of the selection process containing an explanation of the
selection decisions. If provided for in national legislation, the
relevant review procedure shall be mentioned.

(a)

the maximum amount of the grant;

(b)

(c)

(d)

(e)

(f)

the maximum percentage of the Community contribution
in accordance with Article 16(4) of the basic act;

a detailed description and timetable of
supported;

the project

if applicable, the part of the tasks and related costs that the
final beneficiary intends to subcontract to third parties;

the agreed forward budget and financing plan for the
project, including the fixed percentage of indirect costs as
defined in Annex XI regarding the rules on eligibility of
expenditure;

the timetable and provisions for implementation of the
agreement (reporting obligations, amendments and termi-
nation);

(g)

the operational objectives of the project and the indicators
to be used;

(h)

the definition of eligible costs;

(i)

the conditions relating to payment of
bookkeeping requirements;

the grant and

(j)

the conditions relating to audit trail;

(k)

the relevant provisions relating to data protection;

(l)

the relevant provisions relating to publicity.

3.
If appropriate, the final beneficiaries shall ensure that all
partners in the project are subject to the same obligations as
them. The partners shall engage their responsibility through the
final beneficiary which remains answerable, in last resort, for the
respect of the contractual conditions by itself and all partners in
the project.

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The final beneficiaries
accounting documents
incurred by the partners in relation to the project concerned.

the
shall keep certified copies of
justifying income and expenditure

Article 14

Technical assistance expenditure in the case of a common
authority

the
4 The grant agreements
Commission and the Court of Auditors to exercise their powers
of control, based on documents and on the premises, over all
final beneficiaries, partners in the project and subcontractors.

shall provide expressly for

Article 11

Implementation contracts

Without prejudice to the applicable Community and national
public procurement rules, the grant agreements shall lay down
that, when implementing the projects, the final beneficiaries and/
or the partners in the project shall award the procurement
contract, following a tendering procedure, to the tender offering
best value for money and that care be taken to avoid any conflict
of
interest. However, without prejudice to the applicable
Community and national public procurement rules, contracts
with a value of less than EUR 5 000 may be awarded on the basis
of a single offer without a call for tender.

Article 12

Determination of the final Community contribution

For calculation of the final payment to the final beneficiary, the
total Community contribution to each project shall be the lowest
of the following three amounts:

(a)

the maximum amount stated in the grant agreement;

(b)

the maximum co-financing resulting from multiplication of
the total eligible costs of the project concerned by the
percentage laid down in Article 16(4) of the basic act (i.e.
50 % or 75 %); and

1. When one or more designated authorities are common to
two or more of the four Funds, the appropriations for the
technical
annual
programmes concerned may be merged, partly or entirely.

expenditure on each of

assistance

the

2. The expenditure on technical assistance shall be allocated
between the Funds concerned, preferably on the basis of simple
and representative apportionment formulae. Application of the
formulae shall not lead to any increase in the maximum amount
of technical assistance expenditure on each annual programme
concerned.

Article 15

Verifications by the responsible authority

the
1. The verifications to be carried out by, or under
responsibility of,
authority under Arti-
responsible
cle 29(1)(g) of the basic act shall cover administrative, financial,
technical and physical aspects of projects, as appropriate.

the

The verifications shall ensure that the expenditure declared is real
and justified for the purpose of the project, that the projects
granted have been delivered in accordance with the grant
agreements, that the Community contribution complies with the
rules, in particular regarding the financing structure defined in
Article 16 of the basic act, that the applications for reimburse-
ment by the final beneficiary are correct and that the projects
and expenditure comply with Community and national rules and
avoid double-financing of expenditure with other Community or
national schemes and with other programming periods.

(c)

the amount resulting from application of the principle of
non-profit, as defined in point I.3.3 of Annex XI.

Moreover, the verifications shall include:

Article 13

Technical assistance

(a)

administrative and financial verifications of each applica-
tion for reimbursement sent by the final beneficiaries;

1. Technical assistance at the initiative of the Commission, as
defined in Article 17 of the basic act, may be financed up to
100 % by the Fund.

2. Technical assistance at the initiative of the Member States, as
defined in Article 18 of the basic act, may be financed up to
100 % by the Fund.

3. Technical assistance at the initiative of the Commission or
the Member States may take the form of procurement contracts,
expert fees and/or any administrative expenditure subject to the
eligibility rules defined in Part III, Chapter 1.

(b)

(c)

verifications, at least on a representative sample of the
supporting documents covering all headings of the budget
annexed to the grant agreement, of the relevance, accuracy
and eligibility of the expenses, income and costs covered by
assigned income declared by the final beneficiaries;

on-the-spot verifications of individual projects, at least on a
sample representing an appropriate mix of types and sizes
of projects and taking account of any risk factors already
identified, in order to achieve reasonable assurance as to the
the underlying transactions,
legality and regularity of
risk identified by the
having regard to the level of
responsible authority.

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The verifications indicated in points (a) and (b) do not have to be
carried out if an obligation is imposed on the final beneficiary to
provide an audit certificate from an independent auditor which
covers all the aspects mentioned in points (a) and (b).

Article 17

Audits of systems and audits of projects

2. Records shall be kept of each verification, stating the work
performed, the date, the results and the measures taken in
response to errors detected. The responsible authority shall
regarding the
the supporting documents
ensure that all
verifications performed are kept available for the Commission
and the Court of Auditors for a period of five years following
closure of the project. This period shall be interrupted in the
event of legal proceedings or at the duly substantiated request of
the Commission.

3. Where the responsible authority acts as executing body
under the annual programme, as defined in Article 7(3), the
verifications referred to in paragraph 1 shall be implemented in
accordance with the principle of adequate separation of
functions.

Article 16

Audit trail

For the purposes of Article 29(1)(k) of the basic act, an audit
it complies with the

1.
trail shall be considered adequate if
following criteria:

(a)

(b)

it permits reconciliation of the amounts certified to the
Commission with the detailed accounting records and
supporting documents held by the certifying authority,
responsible authority, delegated authorities and final
beneficiaries on projects co-financed under the Fund;

it permits verification of payment of the public contribu-
tion to the final beneficiary, of allocation and transfer of the
Community funding granted under the Fund and of the
sources of co-financing of the project;

(c)

it permits verification of application of the selection criteria
established for the annual programme;

(d)

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

1. The audits referred to in Article 32(1)(a) and (b) of the basic
act shall be carried out on the management and control systems
established by the Member States and on a sample of projects
selected by a method approved by the audit authority.

The sampling method shall:

(a)

include an appropriate mix of types and sizes of projects;

(b)

take account of any risk factors which have been identified
by national or Community controls and the cost-benefit
aspects of the verifications.

The sample shall also include projects implemented by the
responsible authority acting as executing body at least on a
proportional basis.

The method used to select the sample shall be documented.

2. The audit on the management and control systems shall
cover each of the following processes at least once before 2013:
programming, delegation of
selection and award,
monitoring of the projects, payment, certification of expenditure,
reporting to the Commission, detection and treatment of
potential irregularities and evaluation of the programmes.

tasks,

3. The audits of projects shall be carried out on the spot on the
basis of documentation and records held by the final beneficiary
and/or the partners in the project. The audits shall verify that:

(a)

(b)

(c)

the project meets the selection criteria for the annual
programme, has been implemented in accordance with the
grant agreement and fulfils any applicable conditions
concerning its functionality and use or the objectives to
be attained;

the expenditure declared corresponds to the accounting
records and supporting documents held by the final
beneficiary and/or by the partners in the project, and those
records correspond to the supporting documents kept by
the responsible authority or any delegated body;

the items of expenditure correspond to the eligibility
requirements set out in Annex XI, to the requirements
specified during the national selection procedure, to the
terms of the grant agreement and to the works actually
carried out and, where appropriate, to other Community
and national rules;

2. The responsible authority shall ensure that a record is kept
of the location of all documents relating to specific payments
made under the Fund.

(d)

the use or intended use of the project is consistent with the
objectives, action or measures set out in Articles 3, 4, 5, 6
and 18 of the basic act;

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(e)

the public or private contribution has been paid to the final
beneficiary in accordance with Article 16(2) of the basic
act;

CHAPTER 3

Information to be provided regarding use of the Fund

(f)

there is an adequate audit trail;

(g)

there are no conflicts of interest and good value for money
has been achieved,
in cases where the
in particular
responsible authority acts as executing body of the project.

4. Only expenditure within the scope of an audit carried out
under paragraph 3 shall be counted towards the amount of
expenditure audited for the purpose of Article 32(1)(b) of the
basic act. If the audit is performed before the project has been
closed, only the expenditure actually audited is taken into
account to calculate the coverage rate.

5. Where problems detected appear to be systemic in nature
and may therefore entail a risk to other projects, the audit
authority shall ensure that further examination is carried out,
including additional audits where necessary, to establish the scale
of such problems. The necessary preventive and corrective
measures shall be taken by the relevant authorities.

6. The audit authority shall draw conclusions on the basis of
the results of the audits relating to expenditure declared to the
Commission and shall communicate the conclusions to the
Commission in the annual audit report. In annual programmes
for which the error rate is above the materiality level of 2 % of
the Community contribution, the audit authority shall analyse
the significance of this error and take the necessary measures,
including making appropriate recommendations, which shall be
communicated at least in the annual audit report.

Article 18

Verifications by the certifying authority

In cases where the audit authority gives a qualified opinion
1.
or an adverse opinion on the functioning of the management
and control system, the certifying authority shall verify that this
information has been sent to the Commission. It shall also
ensure that an adequate action plan has been implemented by the
responsible authority to restore effectively functioning manage-
ment and control systems and to assess the impact of the
malfunctioning on the declaration of expenditure.

2.
If the request for payment or statement of reimbursement is
not validated by the audit authority for the final report on
implementation of
the certifying
authority shall ensure that a correct request for payment or
statement of reimbursement is established without delay.

the annual programme,

Article 19

Principle of proportionality

1.
Pursuant to Article 10(2) of the basic act, the extent to
which the information available to a Member State on use of the
Fund is transmitted to the Commission in the documents
referred to in this chapter may be proportionate to the amount
of the Community contribution allocated to the Member State
concerned and, where appropriate, this information may be
provided in summarised form.

2. However, upon a request from the Commission, the Member
State shall nevertheless provide more detailed information. The
Commission may request this information if it appears necessary
in order for the Commission to fulfil effectively its obligations
under the basic act and the Financial Regulation.

Article 20

Description of management and control systems

1. The description of the management and control systems
referred to in Articles 33(4) and 34(2) of the basic act shall be
submitted in accordance with the model in Annex I.

2. The responsible authority shall validate the description of
the systems implemented by any delegated authority. Each of the
designated authorities
the
description of
the management and control systems which
concerns it. In addition, the audit authority shall also confirm the
completeness of the description.

shall confirm the accuracy of

3. When examining the description, the Commission may
request clarifications and propose measures to comply with the
provisions defined in the basic act. If necessary, on-site visits may
be carried out by Commission officials or authorised Commis-
sion representatives.

If the responsible authority is the same for two or more of
4.
the four Funds or where common systems apply to two or more
of the Funds, a description of the common management and
control systems may be submitted highlighting, where appro-
priate, any specific features.

Article 21

Revision of the description of management and control
systems

1. The responsible authority shall:

(a) when submitting the draft annual programme, report
whether changes have been made to the management and
control systems;

(b)

notify the Commission of any substantial change at the
latest once any such change has taken effect;

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(c)

the request of

at
description in the event of multiple substantial changes.

the Commission, provide a revised

2.
Substantial changes are changes which are likely to have an
impact on the separation of functions, on the effectiveness of
selection, award, control and payment mechanisms and on
communication with the Commission. They shall
in
particular, changes in one of the designated authorities, in the
accounting system and in the payment and certification
processes.

include,

3. Revision of
follow the same procedure as laid down in Article 20.

the management and control systems shall

Article 24

Progress and final reports on implementation of annual
programmes

1. Member States shall submit to the Commission the progress
reports on implementation of
the annual programme and
payment requests, as referred to in Article 41(4) of the basic act,
in accordance with the model in Annex IV.

2. Member States shall submit to the Commission the final
reports on implementation of
the annual programme and
payment requests, as referred to in Article 42(1)(b) of the basic
act, in accordance with the model in Annex V.

Article 22

Programming documents

3. The financial tables linked to the progress reports and final
reports shall present a breakdown of the amounts both by
priority, as defined in the strategic guidelines, and by projects for
each category of action as defined in Article 3(1) of the basic act.

1. Member States shall submit to the Commission a multi-
annual programme, as referred to in Article 21 of the basic act,
in accordance with the model in Annex II.

2. Member States shall submit to the Commission the annual
programmes, as referred to in Article 23 of the basic act, in
accordance with the model in Annex III.

3. The financial plans linked to the multiannual programme
shall present a breakdown of the budgeted amounts by priority,
as defined in the strategic guidelines.

The financial plans linked to the annual programmes shall
present a breakdown of the budgeted amounts by category of
action, as defined in Article 3(1) of the basic act, with a reference
to the priorities.

Article 25

Documents established by the audit authority

1. The audit strategy referred to in Article 32(1)(c) of the basic
act shall be established in accordance with the model
in
Annex VI.

the last

Except when each of

two annual programmes
2.
to an annual
adopted by the Commission corresponds
the audit
Community contribution below 1 million euros,
authority shall submit an annual audit plan before 15 February
each year, as from 2009. The audit plan shall be established as an
annex to the audit strategy in accordance with the model in
Annex VI. In the case of a combined audit strategy, as provided
for in Article 32(2) of the basic act, a combined annual audit
plan may be submitted.

Article 23

Revision of financial breakdown in annual programmes

1.
In order to revise the annual programme approved by the
Commission pursuant to Article 23(4) of the basic act, the
Member State concerned shall submit a revised draft annual
programme to the Commission before 1 May of
the year
following the reference year. The Commission shall examine and,
as
soon as possible, approve the revised programme in
accordance with the procedure laid down in Article 23(4) of
the basic act.

3. The audit report and the opinion referred to in Articles 32
(3)(a) and 32(3)(b) of the basic act shall be based on the systems
audits and audits of projects carried out in accordance with the
audit strategy and shall be drawn up in accordance with the
models in Annexes VII.A and VII.B.

4. The validity declaration referred to in Article 32(3)(c) of the
basic act shall be based on all the audit work carried out by the
audit authority and on additional checks,
if necessary. The
validity declaration shall be drawn up in accordance with the
model in Annex VII.C.

2. Changes to the financial breakdown without revision of the
annual programme pursuant to paragraph 1 shall not exceed
10 % of the total contribution from the Fund and shall be
allowed only in circumstances justified by causes beyond the
control of the responsible authority. An adequate explanation of
any such changes shall be provided in the progress report and/or
the annual
report on the implementation of
in the final
programme.

If there is any limitation on the scope of the examination or
5.
if the level of irregular expenditure detected does not allow
provision of an unqualified opinion for the annual opinion
referred to in Article 32(3)(b) of
the basic act or in the
declaration referred to in point (c) of the same Article, the audit
authority shall give the reasons and estimate the scale of the
problem and its financial impact.

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Article 26

Documents established by the certifying authority

1. The certified declaration of expenditure relating to the
for a second pre-financing payment referred to in
request
Article 41(4) of the basic act shall be drawn up and transmitted
to the Commission in the format in Annex VIII.

2. The certified declaration of expenditure relating to the
request for a final payment referred to in Article 42(1)(a) of the
basic act shall be drawn up and transmitted to the Commission
in the format in Annex IX.

CHAPTER 4

Reporting irregularities

Article 27

Initial reporting — derogations

1.
In accordance with the models in Annexes IV and V,
Member States shall report to the Commission any irregularity
which has been the subject of a primary administrative or judicial
finding in the progress or final reports on implementation of the
annual programmes.

The report shall indicate:

(a)

the Fund,
concerned;

the

annual programme

and the project

(b)

the provision which has been infringed;

(c)

the date and the source of the first information leading to
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

suspicion of fraud;

the responsible authority, whether before or after payment
of the public contribution;

(d)

cases detected and corrected by the responsible authority
before any payment of the public contribution to the final
the expenditure
beneficiary and before inclusion of
concerned in a declaration of expenditure submitted to
the Commission.

2. At the request of the Commission, Member States shall in all
cases give further details concerning:

(a) where appropriate, the other Member States and third

countries involved;

(b)

(c)

(d)

(e)

(f)

(g)

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

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;

the date on which the primary administrative or judicial
finding on the irregularity was established;

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

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

the amount of the public contribution affected by the
irregularity and the corresponding Community contribu-
tion at risk;

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

(f)

the manner in which the irregularity was discovered;

(i)

the suspension of payments, where applicable, and the
possibilities of recovery;

(g)

the amount of the Community contribution concerned.

However, the following cases need not be reported, except in
cases of suspected fraud:

(a)

(b)

cases where the irregularities relate to amounts of less than
10 000 euros chargeable to the general budget of
the
European Communities;

cases where the irregularity consists solely of failure to
implement, in whole or in part, a project included in the
annual programme owing to the bankruptcy of the final
beneficiary;

(j)

the nature of the irregular expenditure.

3. Where some of the information referred to in paragraph 2,
in particular on the practices employed in committing the
irregularity and on the manner in which the irregularity was
discovered, is not available, Member States shall as far as possible
supply the missing information when forwarding subsequent
reports of irregularities to the Commission.

Article 28

Reporting of follow-up — Non-recovery

(c)

cases brought to the attention of the responsible authority
by the final beneficiary voluntarily and before detection by

1. Member States shall inform the Commission, with reference
to any previous report made under Article 27, of the procedures

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instituted with respect to all irregularities previously notified and
of significant changes resulting from them. This information
shall be given in the progress reports or final reports on
implementation of the annual programmes in accordance with
the models in Annexes IV and V.

CHAPTER 5

Information and publicity

Article 31

The report shall indicate the amounts which have been, or are
expected to be, recovered.

Information for potential final beneficiaries

2. At the request of the Commission, Member States shall in all
cases give further details concerning:

(a)

any interim measures taken by Member States to safeguard
recovery of sums unduly paid;

(b)

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

responsible authority shall ensure

the key
1. The
indications regarding the multiannual and annual programmes
are disseminated widely, with details of the financial contribu-
tions concerned, and that they are made available to all interested
parties.

that

the

responsible authority may decide

However,
to keep
confidential the internal management arrangements laid down
in the multiannual programme or in the annual programmes and
any other information relating to implementation of the Fund on
grounds of public security.

(c)

the reasons for any abandonment of recovery procedures;

2. The responsible authority shall provide potential
beneficiaries with at least the following information:

final

(d)

the reasons for any abandonment of criminal prosecutions.

Member States shall report to the Commission all administrative
or judicial decisions terminating such procedures, or the main
points thereof, and shall state, in particular, whether or not the
findings are such that fraud is suspected.

Article 29

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 27 and on the procedures referred to in Article 28 on the
possibility of recovery.

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

Article 30

Use of information

(a)

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

(b)

a description of the procedures for examining applications
for funding and of the time periods involved;

(c)

the criteria for selecting the projects to be financed;

(d)

the contacts who can provide information on the annual
programmes.

In addition, the responsible authority shall inform potential final
beneficiaries of the publication provided for in Article 33(2)(b).

Article 32

Information for final beneficiaries

The responsible authority shall inform final beneficiaries that
acceptance of funding also implies acceptance of their inclusion
on the list of final beneficiaries published in accordance with
Article 33(2)(b).

1. The Commission may use any information of a general or
operational nature communicated by Member States under this
Decision 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.

2. The Commission shall regularly inform the Member States
concerned of the use made of information under paragraph 1.

Article 33

Responsibilities of the responsible authority relating to
information and publicity for the general public

1. The responsible authority shall ensure that information and
publicity measures are implemented with the aim of the widest
possible media coverage using various forms and methods of
communication at the appropriate territorial level.

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2. The responsible authority shall organise at
following information and publicity measures:

least

the

3.

a statement chosen by the responsible authority, high-
lighting the added value of
the contribution from the
Community.

(a)

(b)

at least one information activity a year, presenting, as of
2008, the launch of the multiannual programme or the
achievements of the annual programme(s);

For small promotional items or for promotional items linked to
two or more of the four Funds, points 1 and 3 shall not apply.

annual publication, at least on a website, of the list of final
beneficiaries, the names of the projects and the amount of
public and Community funding allocated to them. The
address of
the website shall be communicated to the
Commission.

CHAPTER 6

Personal data

Article 36

Article 34

Protection of personal data

Responsibilities of final beneficiaries relating to
information and publicity for the general public

1. The final beneficiary shall be responsible for informing the
public, by means of the measures laid down in paragraphs 2, 3
and 4, about the assistance obtained from the Fund.

2. The final beneficiary shall put up a permanent prominent
plaque of significant size no later than three months after
completion of any project that fulfils the following conditions:

the total Community contribution to the project exceeds
EUR 100 000; and

(a)

(b)

1. Member States and the Commission shall take all necessary
to prevent any unauthorised disclosure of, or
measures
illegitimate access to,
the information referred to in Arti-
cle 29(1)(h) of the basic act, information collected by the Com-
mission in the course of
its on-the-spot checks and the
information referred to in Chapter 4.

2. The information referred to in Chapter 4 may 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 information
has expressly agreed so.

the operation consists of purchasing a physical object or of
financing infrastructure or construction projects.

CHAPTER 7

Electronic exchange of documents

The plaque shall state the type and name of the project. In
addition, the information referred to in Article 35 shall take up at
least 25 % of the plaque.

receives

a project

3. Where
an annual
programme co-financed by the Fund, the final beneficiary shall
ensure that those taking part in the project have been informed
of that funding.

funding under

4. Any document, including any attendance or other certificate,
concerning such projects shall include a statement indicating that
the project is co-financed by the Fund.

Article 35

Technical characteristics of information and publicity for
the operation

All
information and publicity measures aimed at final bene-
ficiaries, potential final beneficiaries and the general public shall
include:

1.

the emblem of the European Union, in accordance with the
graphic standards indicated in Annex X, and a reference to
the European Union;

2.

a reference to the Fund;

Article 37

Electronic exchange of documents

In addition to the duly signed paper versions of the documents
referred to in Chapter 3, the information shall also be sent,
whenever possible, by electronic means.

Article 38

Computer system for the exchange of documents

If the Commission develops a computer system for secure
1.
data exchange between the Commission and each Member State
for implementation of the Fund, the Member States shall be
informed of and, at their request, involved in development of any
such computer system.

2. The Commission and the designated authorities, along with
the bodies to which the tasks have been delegated, shall record
the documents referred to in Chapter 3 in the computer system
mentioned in paragraph 1.

3.
In addition, Member States may be invited voluntarily to
provide information referred to in Articles 27 and 28 using the
existing specific system managed by the Commission for
collecting the irregularities detected under the Structural Funds.

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4. Any costs of an interface between the common computer
system and national, regional and local computer systems and
any costs of adapting national, regional and local systems to the
technical requirements of the common system shall be eligible
under Article 18 of the basic act.

PART III

PROVISIONS SPECIFIC TO THE EXTERNAL BORDERS FUND

CHAPTER 1

Eligibility rules

Article 39

Eligibility rules

1. The rules set out in Annex XI shall be used to determine the
eligibility of expenditure of actions financed under the annual
programmes referred to in Article 37(4) of the basic act.

incurred in implementing the specific provision of the acquis
covering such transit.

2.
For each annual programme the amount to be allocated to
this support shall be set in accordance with Article 6 of the basic
in
act and within the limits of
Article 14(12) of the basic act.

the appropriations set out

3. With regard to the foregone fees, the action shall run from
1 January of the year referred to in the financing decision
approving the annual programme until 31 December of that
year.

With regard to the additional costs, the action shall run from
1 January of the year referred to in the financing decision
approving the annual programme:

(a)

(b)

for salaries of the staff specifically implementing the Special
Transit Scheme until 31 December of that year;

for all other additional costs, until 31 December of the
following year.

2. These rules are applicable to the final beneficiaries and shall
apply mutatis mutandis to the project partners.

4. The amount to be allocated to this support under each
annual programme shall not be used for other action.

3. Member States may apply national eligibility rules that are
more rigorous than those laid down in this decision.

It shall be for the Commission to evaluate whether the applicable
national eligibility rules comply with this condition.

CHAPTER 2

Special Transit Scheme

Article 40

Support for the implementation of the Special Transit
Scheme

1. The support for the implementation of the Special Transit
Scheme referred to in Article 6 of
the basic act shall be
established in the framework of the multiannual programme of
the Republic of Lithuania and be implemented on the basis of the
annual programmes of the Republic of Lithuania.

Consequently,
the rules in the basic act and this Decision
regarding the implementation of annual programmes shall apply
mutatis mutandis to the support for the implementation of the
Special Transit Scheme. The fund shall bear any additional cost

PART IV

FINAL PROVISIONS

Article 41

Addressees

This Decision is addressed to the Kingdom of Belgium, the
Republic of Bulgaria, the Czech Republic, the Federal Republic of
Germany, the Republic of Estonia, the Hellenic Republic, the
Kingdom of Spain, the French Republic, the Italian Republic, the
Republic of Cyprus, the Republic of Latvia, the Republic of
Lithuania, the Grand Duchy of Luxembourg, the Republic of
Hungary, the Republic of Malta, the Kingdom of the Netherlands,
the Republic of Austria, the Republic of Poland, the Portuguese
Republic, Romania,
the Slovak
Republic, the Republic of Finland and the Kingdom of Sweden.

the Republic of Slovenia,

Done at Brussels, 5 March 2008.

For the Commission

Franco FRATTINI

Vice-President

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ANNEXES

ANNEX I

Model description of management and control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX II

Model multiannual programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX III

Model annual programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX IV

Model progress report on implementation of the annual programme . . . . . . . . . . . . . . . . . . .

A.

B.

Technical report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Request for the second pre-financing payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX V

Model final report on implementation of the annual programme . . . . . . . . . . . . . . . . . . . . . . . .

A.

B.

Technical report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Request for payment of the balance/Statement of reimbursement . . . . . . . . . . . . . . . . . . . . . . .

ANNEX VI

Model audit strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annex(es) to the audit strategy: Annual plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX VII

Model report by the audit authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A.

B.

C.

Annual audit report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Opinion on the functioning of the management and control systems . . . . . . . . . . . . . . . . . . .

Validation of the payment request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX VIII

Model declaration of expenditure for the second pre-financing . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX IX

Model declaration of expenditure for payment of the balance . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX X

Instructions concerning the emblem and definition of the standard colours . . . . . . . . . . . .

ANNEX XI

Rules on the eligibility of expenditure — External Borders Fund . . . . . . . . . . . . . . . . . . . . . . . .

19

35

37

39

39

41

43

43

48

49

50

51

51

52

54

56

57

58

60

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ANNEX I

MODEL DESCRIPTION OF MANAGEMENT AND CONTROL SYSTEMS







initial version

revised version (number, date dd/mm/year) following dialogue with the Commission

version revised for other reasons

MEMBER STATE:

FUND(S):

MAIN CONTACT POINT:

THE INFORMATION PROVIDED DESCRIBES THE SITUATION ON:

1.

IDENTIFICATION OF THE DESIGNATED AUTHORITIES

1.1.

General information on the designated authorities

1.1.1.

Short description of the choices made on the designation of the different authorities

1.1.2.

Indication of whether these management and control systems are operational

If not, indication of the date when they will be operational

1.1.3.

Indication of whether these management and control systems have been accredited by the Commission for other
Community financial instruments (if applicable)

1.2.

Organisation chart(s) of the entire body(-ies) within which the designated authorities are functioning

1.3.

Responsible authority

1.3.1.

The date and form of the formal designation of the responsible authority

1.3.2.

Legal status of the responsible authority

1.3.3.

Specification of the functions carried out directly by the responsible authority and (if applicable and/or foreseen)
by other bodies under the responsibility of the responsible authority (outsourcing of tasks, excluding the tasks
entrusted to the delegated authority(ies) under point 1.4)

1.3.4.

Organisation chart and specification of the functions of the units (including the indicative number of posts
allocated)

1.3.5.

Information whether the responsible authority can also act as executing body for the projects co-financed by the
Fund

1.3.6.

If the responsible authority is the same for more than one of the four Funds, a description of the common
functions and systems

1.4.

The delegated authority(ies)

1.4.1.

The reasons for establishing any delegated authority

1.4.2.

The date and form of the formal designation of the delegated authority(ies)

1.4.3.

Legal status of the delegated authority(ies)

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1.4.4.

Specification of the functions carried out directly by the delegated authority(ies) and (if applicable and/or foreseen)
by other bodies under the responsibility of the delegated authority(ies) (outsourcing of tasks)

1.4.5.

Organisation chart and specification of the functions of the units (including indicative number of posts allocated)

1.4.6.

Information whether delegated authority(ies) can also act as executing body for the projects co-financed by the
Fund

1.4.7.

If the delegated authority(ies) is (are) the same for more than one of the four Funds, a description of the common
functions and systems

1.5.

Certifying authority

1.5.1.

The date and form of the formal designation of the certifying authority

1.5.2.

Legal status of the certifying authority

1.5.3.

Specification of the functions carried out directly by the certifying authority and (if applicable and/or foreseen) by
other bodies under the responsibility of the certifying authority (outsourcing of tasks)

1.5.4.

Organisation chart and specification of the functions of the units (including indicative number of posts allocated)

1.5.5.

If the certifying authority is the same for more than one of the four Funds, a description of the common functions
and systems

1.6.

Audit authority

1.6.1.

The date and form of the formal designation of the audit authority

1.6.2.

Legal status of the audit authority

1.6.3.

Specification of the functions carried out directly by the audit authority and (if applicable and/or foreseen) by other
bodies under the responsibility of the audit authority (outsourcing of tasks)

1.6.4.

Organisation chart and specification of the functions of the units (including indicative number of posts allocated)

1.6.5.

Staff qualifications for the audit authority and (if applicable and/or foreseen) of the other bodies expected to carry
out audit work (outsourcing of tasks)

1.6.6.

If the audit authority is the same for more than one of the four Funds, a description of the common functions and
systems

1.6.7.

If a responsible authority can also act as executing body for the projects co-financed by the Fund, a description of
arrangements ensuring the independent position of the audit authority in accordance with article 8

Guidance for sections 2-4

First part of each table

The description of the processes should include the tasks to be carried out by each of the designated authorities (or
bodies under their responsibility) and the interaction between them. The description should be concise but
nevertheless allow a clear understanding of how the processes would work in practice.

Second part of each table

The checklist should be completed by indicating whether each target has been achieved or not and providing any
relevant information. If the target has not been achieved, please provide an explanation and, if relevant, indicate the
expected date for completion.

If procedures are formalised, a reference to the document should be included.

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2.

FUNCTIONING OF DESIGNATED AUTHORITIES

2.1.

Designation and supervision of the designated authorities

Short description of the process of setting up each of the designated authorities
[The description should include all authorities]

Key targets

Achieved?

Comments

1

2

3

4

Rules governing the relations of the Member State with the designated
authorities identify the respective responsibilities

Member State have provided guidance to the designated authorities to
ensure sound financial management (through training and/or manuals)

Each authority will inform their staff of the mission statement of the
organisation as well as their job description and expected results

Steps have been taken to ensure that
the different authorities are
adequately staffed in terms of numbers, seniority and experience in order
to carry out their functions

Y/N

Y/N

Y/N

Y/N

2.2.

Separation of functions

Short description of the arrangements defined to ensure a proper separation of functions
[The description should include all authorities]

Key targets

Achieved?

Comments

1

2

3

4

Rules are defined to ensure a proper separation of functions between
actors within the responsible authority for the signature of contracts/
grant agreements

Rules are defined to ensure a proper separation of functions between
actors within the responsible authority for the initiation, verification and
approval of financial transactions

The audit authority will be functionally independent of the responsible
authority and the certifying authority.

The certifying authority will not be involved in the selection,
implementation and financial
related to Community
resources

transactions

Y/N

Y/N

Y/N

Y/N

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2.3.

Monitoring of delegated authority(ies) — if applicable

Short description of the process
[This description should include the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

The tasks to be delegated are clearly defined

Procedures are established concerning the delegated tasks and their
compliance with the rules defined in the basic act/implementing rules has
been checked

Supervisory controls will take place to ensure that the tasks are carried
out according to established procedures

Y/N

Y/N

Y/N

2.4.

Monitoring of other tasks not carried out by the authorities themselves — if applicable

Short description of the process
[This description should include all authorities]

Key targets

Achieved?

Comments

1

2

3

4

In case of bodies acting under the responsibility of the responsible
authority (and not considered as delegated authorities), supervisory
mechanisms are in place to ensure sound financial management

In case of outsourcing of audit activities and in case of bodies acting
under the responsibility of the audit authority, supervisory mechanisms
are in place to ensure a common audit methodology and consistency of
the audit work

In case of outsourcing of certifying activities and in case of bodies acting
under
supervisory
mechanisms are in place to ensure a common approach to certification

certifying authority,

responsibility of

the

the

In case of outsourcing to private bodies without a public-service mission,
mechanisms are defined to ensure that the tasks which may be entrusted
do not include the exercise of public authority or require the use of
discretionary powers of judgment

Y/N

Y/N

Y/N

Y/N

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3.

OPERATIONAL AND FINANCIAL PROCESSES

3.1.

Establishing multiannual programmes

Short description of the process
[This description should include the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

Arrangements are foreseen to ensure the implementation of the principle
of partnership in accordance with current national rules and practices

Procedures are defined to check that the multiannual programme is
consistent with the strategic guidelines and complies with Community
in particular with Community law aiming at ensuring the free
law,
movement of persons in conjunction with the directly related flanking
measures with respect
to external border controls, asylum and
immigration

Y/N

Y/N

The multiannual programme will be approved by a duly authorised
person

Y/N

3.2.

Establishing annual programmes

Short description of the process
[This description should include the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

4

5.

Procedures are established to ensure:
— consistency between the annual programmes and the multiannual

programme

— the eligibility of the actions envisaged in the annual programmes
— consistency and complementarity of
national and Community instruments

these actions with other

— the compliance with the rules concerning co-financing percentage
— consistency with the priorities/specific priorities stated in the

strategic guidelines

Procedures are established to enable the revision of an annual
programme in case of duly substantiated emergency situations as
described in the basic act, if applicable

Procedures are established to enable the submission of a revision of an
annual programme when required under Article 23(1) of this decision

Any modification to the financial breakdown of an annual programme
and the reasons for it is documented

Any modification in the implementation of the annual programme not
relating to the financial breakdown (e.g. on nature and timing of the calls
for proposals or the scope of technical assistance) and the reason for it is
documented

Y/N

Y/N

Y/N

Y/N

Y/N

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3.3.

Establishing the audit strategy and the annual audit plans

Short description of the process
[This description concerns the audit authority]

Key targets

Achieved?

Comments

1

2

3

Rules are defined to ensure a transparent and appropriate communica-
tion from the responsible authority to the audit authority on manage-
ment procedures implemented and on projects prior to and throughout
the programming period

Procedures are established to define annual audit plans (to be annexed
each year to the audit strategy) and to send them to the Commission in
time (if applicable)

The audit strategy and the annual audit plans are approved by a duly
authorised person

Y/N

Y/N

Y/N

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3.4.

Responsible authority acting as an executing body — if applicable

Short description of the reasons leading the responsible authority to implement projects directly and the specific
arrangements foreseen to strengthen the management and control systems
[This description should include all authorities]

1

2

3

4

5

6

7

8

Key targets

Achieved?

Comments

The justification of the need for the responsible authority to implement
projects will be documented and endorsed at the appropriate level

Y/N

Specific arrangements are put in place to ensure that the nature and the
objectives of the projects comply with the provisions defined for the
Fund

Specific arrangements are put in place in order to prevent conflict of
interest for the projects implemented by the responsible authority

Specific arrangements are put in place to ensure the principle of value for
money is respected in the implementation of projects by the responsible
authority

Procedures are defined to ensure that the contractual terms governing
these projects are clear and complete in particular with regard to the
financing conditions, the payment terms, the eligibility rules and the
obligations regarding operational and financial reporting

Specific arrangements are put in place in order to ensure that the main
functions of the responsible authority as provided for in the basic act are
not affected in relation to the projects implemented by the responsible
authority

When the responsible authority acts as an executing body, the audit
authority is located in another body than the responsible authority (if
not, please describe the additional guarantees put in place to ensure the
proper independence of the audit authority)

The audit strategy will cover the specific risks which may be related to the
implementation of projects by the responsible authority

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

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3.5.

Selection and implementation of the projects (Responsible authority acting as an awarding body)

Short description of the process
[This description should include the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

4

5

6

7

In the case of call for proposals (or tenders), rules are defined to ensure
open competition and adequate publicity

Selection criteria will comply with the minimum criteria defined in the
basic act

Procedures are defined for the receipt of proposals (or tenders)

Procedures are defined to ensure that the proposals (or tenders) are
assessed against the predefined rules and criteria in a transparent and
non-discriminatory manner

The award decisions and the contracts/grant agreements will be approved
by a duly authorised person

Procedures are defined to ensure adequate ex-post information on the
results of the selection process to the applicants

Procedures are defined to ensure the monitoring of the implementation
of grant agreements/contracts according to the contractual terms

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

3.6.

Monitoring of the projects implemented by the final beneficiaries

Short description of the process
[This description should include the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

4

Key operational and financial indicators will be established, monitored
and communicated to the responsible authority for each project

On-the-spot verifications by the responsible authority are foreseen to
allow monitoring (of both the operational and financial aspects) of the
projects

The responsible authority will ensure that final beneficiaries make use of
an appropriate accounting system in computerised form

The responsible authority will ensure that final beneficiaries implement
the provisions on the visibility of the EU funding

Y/N

Y/N

Y/N

Y/N

27.6.2008

EN

Official Journal of the European Union

L 167/27

3.7.

Financial management of the project

Short description of the process
[involves the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

4

5

Financial transactions will be approved by duly authorised persons

Prior to making any payments/recoveries, verifications will be carried out
in particular in order to monitor:
— the accuracy and the regularity of the payment request, with regard

to the eligibility rules for the Fund(s)

— that products and/or services co-financed by the project have actually

been delivered

— the accuracy, completeness and effective payment of other contribu-

tions received from public or private resources

— that the results of any audit activity have been taken into account

Verifications will be carried out in order to have a reasonable assurance
of the legality and regularity of the underlying transactions

Supervisory controls will be carried out throughout the programming
period to ensure that the established financial procedures are respected

Verifications will be performed on the complementarity with other
Community financial programmes in order to avoid double funding

Y/N

Y/N

Y/N

Y/N

Y/N

L 167/28

EN

Official Journal of the European Union

27.6.2008

3.8.

Irregularities, corrections and recoveries

Short description of the process
[This description should include the responsible authority, the delegated authority(ies) and the certifying authority]

Key targets

Achieved?

Comments

1

2

3

4

5

Definitions of
Community requirements

irregularities are established and comply with the

Mechanisms are in place to ensure that irregularities can be detected in
due time and immediate corrective measure are taken

Procedures are in place to ensure that the Commission is kept informed
of irregularities detected, and if appropriate, of any corrective measures
taken in accordance with the obligations set out in this decision

Procedures are in place to ensure a proper follow-up of recovery orders
issued and, if applicable, of default interest

In case recovery orders cannot be cashed in, causes will be identified to
evaluate whether Member States should reimburse the funds to the
Community Budget or not

Y/N

Y/N

Y/N

Y/N

Y/N

27.6.2008

EN

Official Journal of the European Union

L 167/29

3.9.

Preparation and implementation of audit missions

Short description of the process
[This description should include the audit authority and, as potential auditees, the responsible authority and the delegated authori-
ty(ies) and, as recipient of the conclusions, the certifying authority]

Key targets

Achieved?

Comments

1

2

3

4

5

6

7

The audit practice is in line with internationally accepted standards

An audit manual is established for use by the auditors on the basis of the
requirements defined in the basic act

Audits will be carried out to verify the effective functioning of the
management and control systems

The checks to be carried on the eligible expenditure will be based on an
appropriate sample, and will consist of at least 10 % of eligible expenses

The verifications on eligible expenses will verify at least the compliance,
effectiveness and efficiency of
selection
the
procedure, objectives of the project, reality of the achievements, eligibility
of the expenses, valid supporting documents for the expenses, national
co-financing, audit trail

following elements:

A follow-up of earlier recommendations will take place on a regular basis

The projects implemented by the responsible authority will be subject to
robust scrutiny

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

3.10.

Audit report on annual programmes and related declarations

Short description of the process
[This description should involved the audit authority]

Key targets

Achieved?

Comments

1

2

3

4

Procedures are established to consolidate the conclusions of the systems
audit and the audit of projects for each annual programme

Checks will be performed to assess the validity of the requests for
payment

Further examination will be launched in case of systemic errors or errors
over the materiality threshold are detected

The report and the related declarations will be approved by a duly
authorised person

Y/N

Y/N

Y/N

Y/N

L 167/30

EN

Official Journal of the European Union

27.6.2008

3.11.

Certification of expenditure

Short description of the process
[involves primarily the certifying authority but also the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

4

5

Procedures are established to ensure that the necessary information is
received from the responsible authority for the purpose of certification

Procedures are established to ensure that the audit report on each annual
programme and the related declarations are received from the audit
authority

Procedures are established to ensure that recoveries are taken into
account for the final declaration of expenditure and to follow on-going
legal proceedings or administrative appeals with suspensive effect
regarding recoveries

Verifications will be performed to ensure the accuracy and completeness
of the declaration of expenditure (in particular, on any interest generated
by the pre-financing received from the Commission as well as its effective
use as national contribution)

In case of local currency, the methods used for the calculation in Euro
comply with the rules defined by the Commission

Y/N

Y/N

Y/N

Y/N

Y/N

3.12.

Evaluation of the programme

Short description of the process
[involves the responsible authority and the delegated authority(ies)]

Key targets

Achieved?

Comments

1

2

3

4

The guidance documents from the Commission on evaluations are
disseminated widely and made available to all potential final beneficiaries
and other interested parties

The key operational and financial
indicators provided by the final
beneficiaries to measure the achievements of the project will be recorded

The responsible authority (and/or delegated authorities) will ensure that
the indicators provided are appropriate to measure the outcome and
results of each project

Procedures are in place to ensure that the necessary evaluation will be
carried out as required by the basic act

Y/N

Y/N

Y/N

Y/N

27.6.2008

EN

Official Journal of the European Union

L 167/31

4.

INFORMATION MANAGEMENT

4.1.

Documentation on the procedures

Short description of the process
[involves all authorities]

Key targets

Achieved?

Comments

1

2

3

4

5

6

The authorities will ensure that the established procedures referred to in
Article 7 of this decision comply with national and Community law (e.g.
public procurement, accounting rules, etc.)

The procedures are approved by a duly authorised person

The established procedures set out clear instructions concerning each of
the main operations and explain the decision-making circuits concerning
the performance of functions

Arrangements are in place to ensure that all relevant staff is informed of
the established procedures

Where appropriate,
summarising the key controls to be performed

these procedures include the use of check-lists

Arrangements are in place to ensure the protection of personal data

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

L 167/32

EN

Official Journal of the European Union

27.6.2008

4.2.

Accounting and book keeping

Short description of the process
[involves the responsible authority, the delegated authority(ies) and the certifying authority]

Key targets

Achieved?

Comments

1

2

3

4

5

Arrangements are in place to ensure that accounting data is complete,
reliable and correct. In particular, the accounting system will allow:
— a full traceability of the Community resources at the level of the final

Y/N

beneficiaries and projects

— the identification of any interest generated by the pre-financing

received from the Commission

— the identification of recovery orders issued and if applicable, whether

they have been cashed

The accounting and financial
national data protection legislation

reporting system complies with the

The accounting and financial reporting system to be used will be in
computerised form

A back-up system exists to guarantee the continuity of operations should
the need arise

In case of local currency, the methods used for the calculation in Euro
comply with the rules defined by the Commission

Y/N

Y/N

Y/N

Y/N

4.3.

Reporting to the Commission

Short description of the process
[involves all authorities]

Key targets

Achieved?

Comments

1

2

3

Reporting obligations have been identified as well as the implications for
resources

The established procedures allow proper, timely and complete input by
the designated authorities

Reports are approved by a duly authorised person

Y/N

Y/N

Y/N

27.6.2008

EN

Official Journal of the European Union

L 167/33

4.4.

Audit trail

Short description of the process
[involves all authorities]

Where are the following documents kept?

Body/Unit in
charge

How long for?

Description of the management and control systems including manual(s) of
procedures

Audit strategy

National multiannual programme and possible revisions

National annual programmes and possible revisions

European Commission Decisions on multiannual and annual programmes

Calls for proposals/Calls for tender

Applicant files/Contract files

Administrative, technical and financial analysis of proposals/tenders received
(evaluation grids) and evaluation committee reports

Funding decisions or rejections

Project funding agreements

Financial commitment decisions for each of the projects

Progress reports and final reports submitted by funding recipients

Financial reports and payment applications submitted by funded Project

Supporting documents for expenditure and revenue for funded Project

Payments/recovery authorisations for funding (proof of verifications performed)

Payments/recovery orders for funding

Proof of payments/recovery of funding

Documentation related to the sampling methodology for the audit activity

Reports on audits carried out on projects

Reports on audits carried out at national
systems

level on management and control

Audit reports on annual programmes

Audit opinions on the management and control systems

Audit declarations on the validity of the requests for payment

Requests for payment sent to the European Commission

Certification of expenditure sent to the European Commission

Progress implementation reports sent to the European Commission

Final implementation reports sent to the European Commission

Proof of payment received from the European Commission

Evaluation reports sent to the European Commission

L 167/34

EN

Official Journal of the European Union

27.6.2008

5.

APPROVAL OF THE DESCRIPTION OF THE MANAGEMENT AND CONTROL SYSTEMS

Authorit

Responsible authority

Certifying authority

Audit authority

Declaration

Date and signature

I certify the accuracy and complete-
ness of
the information about the
identification and internal control
systems of the responsible authority

I certify the accuracy and complete-
ness of
the information about the
identification and internal control
systems of the certifying authority

I certify the accuracy and complete-
ness of
the information about the
identification and internal control
systems of the audit authority
and
I can confirm that what has been
described provides a reliable picture
of all the management and control
systems

Name:

Function:

Date:

Name:

Function:

Date:

Name:

Function:

Date:

signature

signature

signature

27.6.2008

EN

Official Journal of the European Union

L 167/35

ANNEX II

MODEL MULTIANNUAL PROGRAMME









Initial version

Revised version (number, date dd/mm/year) following dialogue with the Commission

Version revised in the light of evaluations and/or following implementation difficulties

Version revised following the revision of the strategic guidelines

MEMBER STATE:

FUND:

RESPONSIBLE AUTHORITY:

PERIOD COVERED:

1.

SITUATION IN THE MEMBER STATE

A description of the baseline situation in the Member State in the policy field covered by the Fund's objectives

1.1.

1.2.

1.3.

2.

2.1.

2.2.

The national situation and the migratory flows affecting it

The measures undertaken by the Member State so far

The total national resources allocated

ANALYSIS OF REQUIREMENTS IN THE MEMBER STATE

The requirements in the Member State in relation to the baseline situation

The operational objectives of the Member State designed to meet its requirements

3.

STRATEGY TO ACHIEVE THE OBJECTIVES

A description of how the Fund contributes to meeting the requirements, which priorities have been chosen and
why

3.1.

3.2.

3.3.

Priority 1

Priority 2

Etc.

Breakdown when presenting the information on the priorities chosen

(a)

The objective(s) of the strategy and examples of key actions

(b) Description of target(s) concerned and the indicator(s) used

(c)

If appropriate, an indication of which key actions are considered as implementing specific priorities under
the chosen priority

4.

COMPATIBILITY WITH OTHER INSTRUMENTS

An indication of how this strategy is compatible with other regional, national and Community instruments

4.1.

4.2.

4.3.

Priority 1

Priority 2

Etc.

L 167/36

EN

Official Journal of the European Union

27.6.2008

5.

5.1.

5.2.

6.

6.1

FRAMEWORK FOR IMPLEMENTATION OF THE STRATEGY

The publication of the programme

The approach chosen to implement the principle of partnership

INDICATIVE FINANCING PLAN

Community Contribution

6.1.1.

Table

Member State: […]

Fund: […]

(in EUR 1 000 — cur-
rent prices)

Priority 1: […]

Priority 2: […]

Priority 3: […]

Priority …: […]

a

Multiannual programme — draft financial plan

Table 1

Community contribution

2007

2008

2009

2010

2011

2012

2013

TOTAL

0

0

0

0

0

0

Total

0

0

0

0

0

0

0

6.1.2.

Comments on the figures/trends

6.2

Overall financing plan

6.2.1.

Table

Multiannual programme — Draft financial plan

Table 2

Overall financing plan

Member State: […]

Fund: […]

(in EUR 1 000 — cur-
rent prices)

Community contri-
bution

Public cofinancing

Private cofinancing

Total

% Community con-
tribution

2007

2008

2009

2010

2011

2012

2013

TOTAL

0

%

0

%

0

%

0

%

0

%

0

%

0

%

0

%

6.2.2.

Comments on the figures/trends

[signature of the responsible person]

27.6.2008

EN

Official Journal of the European Union

L 167/37

ANNEX III

MODEL ANNUAL PROGRAMME

Initial version

Revised version (number, date dd/mm/year) following dialogue with the Commission

Version revised for other reasons

MEMBER STATE:

FUND:

RESPONSIBLE AUTHORITY:

YEAR COVERED:

GENERAL RULES FOR SELECTION OF PROJECTS TO BE FINANCED UNDER THE PROGRAMME

CHANGES IN THE MANAGEMENT AND CONTROL SYSTEMS (if appropriate)







1.

2.

3.

ACTIONS TO BE SUPPORTED BY THE PROGRAMME UNDER THE PRIORITIES CHOSEN

3.1. Actions implementing priority 1

3.2. Actions implementing priority 2

3.3. Etc.

When presenting the actions under points 3.1. to etc, where relevant, provide a breakdown according to the description of
categories of actions in the basic act

Aspects of the action presented when describing each action under points 3.1 to etc

1.

2.

Purpose and scope of the action

Expected grant recipients

3. Where appropriate, justification regarding project(s) implemented directly by the responsible authority acting

as an executing body

Expected quantified results and indicators to be used

Visibility of EC funding

Complementarity with similar actions financed by other EC instruments, if appropriate

Financial information

4.

5.

6.

7.

4.

TECHNICAL ASSISTANCE

4.1 Purpose of the technical assistance

4.2 Expected quantified results

4.3 Visibility of EC funding

L 167/38

EN

Official Journal of the European Union

27.6.2008

5.

DRAFT FINANCING PLAN

Member State: […]
Annual programme concerned: […]
Fund: […]

Annual programme — draft financial plan

Table 1

Overview table

Ref.
priority

Ref.
specific
priority (1)

Commu-
nity Con-
tribution

Public
Allocation

Private
Allocation

Total

% EC

Share of
total

(all figures in EUR)

(a)

(b)

(c)

(d = a + b
+ c)

(e = a/d)

(d/total d)

Action 1: […]

Action 2: […]

Action 3: […]

Action 4: […]

Action 5: […]

Action …: […]

Action N: […]

Technical assistance

Other operations (2)

Total

0

0

0

(1)
(2)

If applicable.
If applicable.

[signature of the responsible person]

0

0

0

0

0

0

0

0

0

0

%

100 %

27.6.2008

EN

Official Journal of the European Union

L 167/39

MODEL PROGRESS REPORT ON IMPLEMENTATION OF THE ANNUAL PROGRAMME

ANNEX IV

MEMBER STATE:

FUND:

RESPONSIBLE AUTHORITY:

YEAR COVERED:

A.

Technical report

1.

OPERATIONAL IMPLEMENTATION

1.1.

Time table for the implementation of the programme

1.2.

Description of the organisation of the selection of projects and tenders and their outcomes

1.3.

Progress made in implementing the actions of the programme under the priorities chosen

1.3.1

Actions implementing Priority 1

1.3.2

Actions implementing Priority 2

Etc.

1.4.

Use of technical assistance

1.5.

Problems encountered and measures taken

2.

FINANCIAL IMPLEMENTATION

Member State: […]
Annual programme concerned: […]
Situation at: [day/month/year]
Pre-financing payment(s) received from EC: [amount]

(all figures in EUR)

Ref. priority

Ref. specific
priority (1)

Action 1: […]

Action 2: […]

Action 3: […]

Action 4: […]

Action 5: […]

Action N: […]

Technical assis-
tance

Other opera-
tions (1)

TOTAL

(1) If applicable.
(2) If applicable.

Progress report on the implementation of the annual programme

Table 1

Financial report

Programmed MS

Committed at the level of the MS

Total pro-
grammed costs

EC contribution

% EC contribu-
tion

Total eligible
costs

EC contribution

(a)

(b)

(c = b/a)

(d)

(e)

% EC contribu-
tion

(f = e/d)

EC contribution paid
by MS to final bene-
ficiaries

Total eligible costs
incurred to date by
final beneficiaries

0

0

0

0

0

0

0

0

↓

↓

> 60 % of pre-financing payment(s)
received?

Yes/No

Yes/No

L

1
6
7
/
4
0

E
N

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

.

.

2
7
6
2
0
0
8

27.6.2008

EN

Official Journal of the European Union

L 167/41

3.

REPORTING ON IRREGULARITIES

Notification of new irregularities (1)?

No

Yes (if Yes, fill in table 2)

Progress report on the implementation of the annual programme

Table 2

Initial reporting on irregularity

Member State: […]

Situation at: [day/month/year]

Fund: […]

Reference

Annual pro-
gramme

Project

Provision
infringed

Type of irre-
gularity

Date/source
of first infor-
mation

Method of
detection

Possibility of
fraud (Y/N)

Amount
concerned in
EUR(Com-
munity con-
tribution)

Follow-up of previous irregularities?

No

Yes (if Yes, fill in table 3)

Progress report on the implementation of the annual programme

Table 3

Reporting of follow-up of irregularities

Member State: […]

Situation at: [day/month/year]

Fund: […]

Reference

Annual
Pro-
gramme

Project

Provision
infringed

Amount
concerned
(EC con-
tribution.)
in EUR

Follow-up
actions

Recovery order (amounts in EUR)

Issued

Paid

Default
interest

Waived

Cancella-
tion of EC
contribu-
tion

B.

Request for the second pre-financing payment

I, the undersigned [name in capitals of the person in charge],

representing the responsible authority for managing and implementing the [name of the Fund] request payment of the
following amount as the second pre-financing payment.

Euro (2)

[exact figure to two decimal places]

(1) Since the last progress/final report sent to the Commission.
(2) Total amount requested to complement the first pre-financing.

L 167/42

EN

Official Journal of the European Union

27.6.2008

This request for payment is admissible because:

(a)

a progress report on implementation of the annual programme has been submitted to the Commission or is attached;

(b)

(c)

(d)

a certified declaration of expenditure drawn up accounting for at least 60 % of the amount of the first pre-financing
has been submitted or is attached;

the annual programme has been implemented according to the principle of sound financial management and there is
a reasonable assurance that the underlying transactions are legal and regular;

there is no reasoned opinion by the Commission in respect of an infringement under Article 226 of the Treaty, as
regards the actions for which the expenditure is declared in the request.

Payment should be made by the Commission to:

Authority responsible for receiving payments

Bank

Bank account No

Account holder (if not the same as the authority responsible
for receiving payments)

Date

Name in capital letters, stamp, position and
signature of competent authority

27.6.2008

EN

Official Journal of the European Union

L 167/43

MODEL FINAL REPORT ON IMPLEMENTATION OF THE ANNUAL PROGRAMME

ANNEX V

MEMBER STATE:

FUND:

RESPONSIBLE AUTHORITY:

YEAR COVERED:

A.

Technical report

1.

OPERATIONAL IMPLEMENTATION

1.1.

Time table on the implementation of the programme

1.2.

Update from the progress report on the description of the organisation of the selection of projects and tenders and
their outcomes, if appropriate

1.3.

The achievements in implementing the actions of the programme under the priorities chosen

1.3.1.

Actions implementing priority 1

1.3.2.

Actions implementing priority 2

1.3.3.

Etc.

Aspects of the action presented when describing each action under point 1.3 to etc.

1.

2.

3.

4.

5.

Purpose and scope of the action

Changes from the programme as approved by the Commission (if appropriate)

Monitoring activities undertaken during and after the implementation

Actual results

Assessment of the actual results in comparison to the targets and indicators set in the programme

1.4.

The results of the technical assistance

1.5.

Problems encountered and measures taken on the implementation of the programme

1.6.

Procedures applied when the responsible authority implemented project(s) directly acting as an executing body (if
appropriate)

1.7.

Coherence and complementarity with other instruments

2.

3.

ASSESSMENT OF THE PROGRESS MADE IN IMPLEMENTING THE MULTIANNUAL PROGRAMME

MEASURES TAKEN TO PROVIDE INFORMATION ON THE PROGRAMME

3.1.

Measures taken to make the multiannual (1) and annual programme public

3.2.

Implementation of the visibility principle

(1) Applicable only for the final report on implementation of the first annual programme.

4.

FINANCIAL IMPLEMENTATION

Member State: […]
Annual programme concerned: […]
Priority/other actions: […]
Situation at: [day/month/year]

Final report on the implementation of the annual programme

Table 1

Detailed financial report

(all figures in EUR)

Programmed by MS

Committed at the level of the MS

Actual figures accepted by the responsible authority
(costs incurred by the beneficiaries and final EC contribution)

Actions

Projects

Ref. priority

Ref. specific
priori-
ty (1)

Total pro-
grammed
costs

EC contri-
bution

% EC con-
tribution

Total eligible
costs

EC contri-
bution

%EC contri-
bution

Total eligible
costs

EC contri-
bution due

% EC con-
tribution

EC contri-
bution paid

(a)

(b)

(c = b/a)

(d)

(e)

(f = e/d)

(g)

(h)

(i = h/g)

(j)

EC still to
pay/to
recover by
the RA

(k = h - j)

Action 1: […]

project 1: […]

project N: […]

Total Action 1

Action ...: […]

project 1: […]

project N: […]

Total Action...: […]

Action N: […]

project 1: […]

project N: […]

Total Action N

Technical assistance

Other operations (2)

(1)
(2)

If applicable.
If applicable.

Total

0

0

0 %

0

0

0 %

0

0

0 %

0

0

L

1
6
7
/
4
4

E
N

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

.

.

2
7
6
2
0
0
8

27.6.2008

EN

Official Journal of the European Union

L 167/45

4.1.

List of all pending recoveries at 30 June of the year N + 2 (N = year of this annual programme)

Final report on the implementation of the annual programme

Table 2

List of pending recovery orders

Member State: […]

Fund: […]

Situation at: [day/month/year]

Reference

Annual Pro-
gramme

Project

Total amount to
be recovered

EC contribution
to be recovered

Deduced from
the related
financial report
(Y/N)

Reasons for
recovery

4.2.

List of recovery orders not included in the financial reports of the previous annual programmes (if appropriate)

Final report on the implementation of the annual programme

Table 3

List of recovery orders not already deducted from previous declarations of expenditure

Member State: […]

Fund: […]

Situation at: [day/month/year]

Reference

Annual pro-
gramme

Project

Total amount
recovered

EC contribution
recovered

Date of recov-
ery

Reasons for
recovery

L 167/46

EN

Official Journal of the European Union

27.6.2008

5.

REPORTING ON IRREGULARITIES

Notification of new irregularities (1)?

No

Yes (if Yes, fill in table 4)

Final report on the implementation of the annual programme

Table 4

Initial reporting on irregularity

Member State: […]

Situation at: [day/month/year]

Fund: […]

Reference

Annual pro-
gramme

Project

Provision
infringed

Type of irre-
gularity

Date/Source
of first infor-
mation

Method of
detection

Possibility of
fraud
(Y/N)

Amount
concerned in
EUR (Com-
munity con-
tribution)

Follow-up of previous irregularities?

No

Yes (if Yes, fill in table 5)

Final report on the implementation of the annual programme

Table 5

Reporting of follow-up of irregularities

Member State: […]

Situation at: [day/month/year]

Fund: […]

Reference

Annual
pro-
gramme

Project

Provision
infringed

Amount
con-
cerned

(EC con-
tribution)
in EUR

Follow-up
actions

Recovery order (amounts in EUR)

Issued

Paid

Default
interest

Waived

Cancella-
tion of EC
contribu-
tion

(1) Since the last progress/final report sent to the Commission.

6.

ANNEXES

Summary description of individual projects (one page per project) presenting objectives, achievements, relevant indicators, financial table.

Final report on the implementation of the annual programme

Project reference and title: […]
Final beneficiary: […]
Situation at: [day/month/year]

TECHNICAL SUMMARY
Objectives/achievements:
Relevant indicators:
Justification (in case of a specific priority):

FINANCIAL SUMMARY

(all figures in EUR)

a: Direct Costs

b: Indirect Costs

c: Costs covered by assigned income (if applicable)

a + b + c: Total Eligible Costs

d: EC contribution

e: Contribution from final beneficiary and partners (public bodies)

of which assigned income

f: Contribution from final beneficiary and partners (non public
bodies)

g: Contribution from third parties

h: Receipts generated by the project

d + e + f + g + h: Total Income

% EC Contribution/Total costs (d/(a + b + c))

Table 6

Report per project

Priority: […]
Specific priority: […]
Action: […]

Committed by the
responsible authority

Requested by the final
beneficiary

Accepted by the
responsible authority

EC Contribution paid by the responsible authority

First pre-financing payment

Second pre-financing payment

Final payment

0

0

0

Recovery order

0

%

0

%

0

%

EC contribution due

EC contribution still to pay/to recover

.

.

2
7
6
2
0
0
8

E
N

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

L

1
6
7
/
4
7

L 167/48

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27.6.2008

B.

Request for payment of the balance/Statement of reimbursement

I, the undersigned [name in capitals of the person in charge],

representing the responsible authority for the [name of the Fund]

— request payment of the following amount:

EUR (1)

+

[exact figure to two decimal places]

OR

— declare for reimbursement the following amount:

EUR (2)

—

[exact figure to two decimal places]

This amount results from the balance between the total amount of pre-financing payment(s) received for this annual
programme and the actual expenditure declared.

This request for payment is admissible because:

(a)

a final report on implementation of the annual programme has been submitted to the Commission or is attached;

(b)

a certified declaration of expenditure has been submitted or is attached;

(c)

(d)

(e)

(f)

an annual audit report, an opinion on the functioning of the management and control system and a declaration on the
validity of the payment request prepared by the audit authority have been submitted or are attached;

any interest generated by the pre-financing payments has been posted to the annual programme, being regarded as
national contribution and has been taken into account in the declaration of expenditure;

the annual programme has been implemented according to the principle of sound financial management and there is
a reasonable assurance that the underlying transactions are legal and regular;

there is no reasoned opinion by the Commission in respect of an infringement under Article 226 of the Treaty, as
regards the actions for which the expenditure is declared in the request.

Payment should be made by the Commission to:

Authority responsible for receiving payments

Bank

Bank account No

Account holder (if not the same as the authority responsible
for receiving payments)

Date

Name in capital letters, stamp, position and
signature of competent authority

(1) Total amount requested to complement the pre-financing payment(s).
(2) Total amount to be reimbursed after the clearing of the pre-financing payment(s).

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Official Journal of the European Union

L 167/49

ANNEX VI

MODEL AUDIT STRATEGY

MEMBER STATE:

FUND(S):

RESPONSIBLE AUTHORITY:

1.

THE AUDIT UNIVERSE

1.1.

Scope of the strategy (Funds covered)

1.2.

Period covered by the strategy

1.3.

Audit standards applied

2.

RISK ASSESSMENT

2.1.

Risk identification and assessment

2.2.

Risk response and residual risk

3.

OBJECTIVES AND PRIORITIES

3.1.

Objectives of the audits

3.2.

Priorities for the audits

4.

AUDIT APPROACH

4.1.

System audits

4.1.1.

The responsible body/-ies for the audit work

4.1.2.

The authorities to be audited

4.1.3.

Horizontal issues to be covered by the system audits

4.1.4.

Indicative multiannual plan for system audits (if possible)

4.2.

Audits of projects

4.2.1.

The responsible body/ies for the audit work

4.2.2.

Description of the sampling methodology

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27.6.2008

5.

AUDIT PLANS COVERING CALENDAR YEARS 2007 AND 2008

5.1.

Year 2007 (1)

Year 2007

System audits

Funds

Authorities
concerned

Processes con-
cerned

Scope of the audit

Man-days

Planning

Audits of projects

Funds

Programme
Year

Priority

Project

Final benefi-
ciary

Total eligible
costs of the
project

Costs to be
audited

Man-days

Planning

5.2.

Year 2008

Insert data using the model table defined for year 2007

Annex(es) to the audit strategy (2): Annual plans

MEMBER STATE:

FUND:

RESPONSIBLE AUTHORITY:

CALENDAR YEAR COVERED:

1.

2.

3.

CHANGES TO THE AUDIT STRATEGY, WHERE APPLICABLE

MAIN RESULTS OF AUDITS OF THE PREVIOUS YEAR

AUDIT PLAN YEAR 20XX

Insert data using the model table defined for year 2007

If applicable.

(1)
(2) To be submitted after the audit strategy, in accordance with Article 25(2).

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L 167/51

ANNEX VII

MODEL REPORT BY THE AUDIT AUTHORITY

MEMBER STATE:

FUND:

RESPONSIBLE AUTHORITY:

ANNUAL PROGRAMME COVERED BY THE REPORT:

A.

Annual audit report

1.

GENERAL INFORMATION

1.1. The bodies that have been involved in preparing the report

1.2.

Identification and justification of major changes in the implementation of the audit plans related to the annual
programme concerned

1.3. Summary table of the results of the audits

Audit report

Member State: […]

Annual programme concerned: […]

Situation at: [day/month/year]

SYSTEM AUDITS CLOSED SINCE LAST REPORT

Fund(s)

Authorities
concerned

Processes con-
cerned

Scope of the audit

Man-days spent

Date of final report

AUDITS OF PROJECTS LINKED TO ANNUAL PROGRAMME 20xx

Fund(s)

Project

Final beneficiary

Total eligible
costs

Eligible costs
audited

Financial correc-
tion

(a)

(b)

(c)

Error rate

(d = c/b)

Total

0

0

0

%

Total annual programme

(e)

(f)

Coverage rate: (= f/e)

L 167/52

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Official Journal of the European Union

27.6.2008

2.

SYSTEMS AUDITS

2.1. The bodies that carried out audits

2.2. A summary list of the audits carried out

2.3. The principal findings, recommendations and the conclusions drawn from the audit work for the management and

control systems

2.4. Financial impact of the audit findings

2.5. Additional work, where appropriate

2.6.

Indication whether any problems identified were considered to be systemic in nature and the measures taken,
including a quantification of any financial corrections

2.7.

Information on the follow-up of the audit recommendations

3.

AUDITS ON PROJECTS

3.1. The bodies that carried out the audits

3.2. A summary list of audits carried out and the percentage of expenditure checked in relation to total eligible expenditure

declared to the Commission

3.3. The principal findings, recommendations and conclusions of the audits with regard to the projects implemented

3.4. The conclusions drawn from the results of the audits with regard to the effectiveness of the management and control

system

3.5. Financial impact of the audit findings

3.6. Additional work, where appropriate

3.7.

Information on the follow-up of audit recommendations

3.8.

Indication whether any problems identified were considered to be systemic in nature and the measures taken,
including a quantification of any financial corrections

4.

FOLLOW UP OF AUDIT ACTIVITY COVERED BY PREVIOUS REPORTS, IF APPROPRIATE

4.1.

Information on the follow-up to previous system audit recommendations

4.2.

Information on results of audits of actions of a systemic nature from previous annual programmes

[signature of the responsible person]

B.

Opinion on the functioning of the management and control systems

To the European Commission

1.

INTRODUCTION

I, the undersigned, representing the [name of audit authority designated by Member State], have examined the functioning
of the management and control systems in the [name of the Fund] regarding the actions implemented under the annual
programme for the year [20XX], in order to issue an opinion on whether the systems functioned effectively so as to provide
reasonable assurance that declarations of expenditure presented to the Commission are correct and, as a consequence,
reasonable assurance that the underlying transactions 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 Fund during the period [dd/mm/
year] to [dd/mm/year] and reported in the annual audit report under section A.

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
management 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 expenditure declared, this should be stated.)

3.

OPINION

Either (unqualified opinion)

Based on the examination referred to above, it is my opinion that, for the abovementioned annual programme, the
management and control systems established for the [name of the Fund] complied with the applicable requirements of the
basic act No 574/2007/EC [and Commission Decision (EC) No [2008/456/EC] and functioned effectively so as to provide
reasonable assurance that declarations 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 annual programme, the
management and control systems established for the [name of the Fund] complied with the applicable requirements of the
basic act No 574/2007/EC [and Commission Decision (EC) No 2008/456/EC] and functioned effectively so as to provide
reasonable assurance that declarations 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:

(a)

[…]

(b)

[…]

(c)

etc.

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 on the correctness of the declarations of expenditure presented to the
Commission are as follows:

(a)

[…]

(b)

[…]

(c)

etc.

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

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Official Journal of the European Union

27.6.2008

Or (adverse opinion)

Based on the examination referred to above, it is my opinion that, for the abovementioned annual programme, the
management and control system established for the [name of the Fund] did not comply with the requirements of Articles
[…] of the basic act No 574/2007/EC [and Commission Decision (EC) No 2008/456/EC] and did not function effectively so
as to provide reasonable assurance that declarations of expenditure presented to the Commission are correct and, as a
consequence, does not provide reasonable assurance that the underlying transactions are legal and regular.

This adverse opinion is based on:

(a)

[…]

(b)

[…]

(c)

etc.

Date

Signature

To the European Commission

1.

INTRODUCTION

[signature of the responsible person]

C.

Validation of the payment request

I, the undersigned, representing the (name of the audit authority designated by Member State), have, for the annual
programme [20xx] of the [name of the Fund], examined the results of the audit work carried out on this annual programme
[and have carried out the additional work I judged necessary as set out in the report].

I have planned and performed this work with a view to assessing whether the request for payment of the balance of the
Community contribution to the annual programme [20xx] is valid and the underlying transactions covered by the
declarations of expenditure regarding this annual programme are legal and regular.

2.

SCOPE OF THE EXAMINATION

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.

3.

OPINION

Either (unqualified opinion)

Based on the examination referred to above, it is my opinion that the declarations of expenditure present fairly, in all
material respects, the expenditure paid under the annual programme and that the request for payment of the balance of the
Community contribution to this annual programme is valid.

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Or (qualified opinion)

Based on the examination referred to above, it is my opinion that the declarations of expenditure present fairly, in all
material respects, the expenditure paid under the annual programme and that the request for payment of the balance of the
Community contribution to this annual programme is valid, except with regard to the following points:

(a)

[…]

(b)

[…]

(c)

etc.

I estimate the impact of these qualifications 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 the declarations of expenditure do not present fairly, in all
material respects, the expenditure paid under the annual programme and that, as a consequence, the request for payment of
the balance of the Community contribution to this annual programme is not valid.

Date

Signature

[signature of the responsible person]

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Official Journal of the European Union

27.6.2008

MODEL DECLARATION OF EXPENDITURE FOR THE SECOND PRE-FINANCING

ANNEX VIII

MEMBER STATE:

FUND:

CERTIFYING AUTHORITY:

ANNUAL PROGRAMME COVERED BY THE CERTIFICATION:

I, the undersigned, [name of the person in charge]

representing the certifying authority designated for the [name of the Fund]

hereby certify that all expenditure included in the progress report on the implementation of the annual programme amounts
to:

EUR (1)

[exact figure to two decimal places]

I also certify that actions are progressing in pursuance with the objectives laid down in the Commission Decision adopting
the annual programme and in accordance with the basic act and its implementing rules, and in particular, that:

1.

2.

3.

4.

the declaration of expenditure is accurate, results from reliable accounting systems and is based on verifiable
supporting documents;

the expenditure declared complies with the applicable Community and national rules and has been incurred in respect
of actions selected for funding in accordance with the criteria applicable to the annual programme and the applicable
Community and national rules, in particular with public procurement rules;

for the purpose of certification, I have received adequate information from the Responsible Authority on the
procedures and verifications carried out in relation to expenditure included in statements of expenditure;

the declaration of expenditure and the request for the second pre-financing payment take account, where applicable,
of any amounts recovered and of any interest received under the annual programme.

This declaration of expenditure is based on accounts provisionally closed on [dd/mm/20yy].

In accordance with Article 45 of the basic act, the supporting documents are and will continue to be available for at least
five years following the closure of the annual programme by the Commission.

Date

Name in capital letters, stamp, position and
signature of certifying authority

(1) Total amount of eligible expenditure paid by final beneficiaries or used for the technical assistance.

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MODEL DECLARATION OF EXPENDITURE FOR PAYMENT OF THE BALANCE

ANNEX IX

MEMBER STATE:

FUND:

CERTIFYING AUTHORITY:

ANNUAL PROGRAMME COVERED BY THE CERTIFICATION:

I, the undersigned, [name of the person in charge]

representing the certifying authority designated for the [name of the Fund]

hereby certify that all expenditure included in the final report on the implementation of the annual programme amounts to:

EUR (1)

[exact figure to two decimal places]

I also certify that actions are progressing in pursuance with the objectives laid down in the Commission Decision adopting
the annual programme and in accordance with the basic act, and in particular that:

1.

2.

3.

4.

5.

6.

the declaration of expenditure is accurate, results from reliable accounting systems and is based on verifiable
supporting documents;

the expenditure declared complies with the applicable Community and national rules and has been incurred in respect
of actions selected for funding in accordance with the criteria applicable to the annual programme and the applicable
Community and national rules, in particular with public procurement rules;

I have a reasonable assurance that the underlying transactions are legal and regular;

for the purpose of certification, I have received adequate information from the Responsible Authority on the
procedures and verifications carried out in relation to expenditure included in statements of expenditure;

the results of all audits carried out by or under the responsibility of the audit authority have been duly taken into
account;

the declaration of expenditure and the request for the balance payment take account, where applicable, of any
amounts recovered and of any interest received under the annual programme.

This declaration of expenditure is based on accounts closed on [dd/mm/20yy].

In accordance with Article 45 of the basic act, the supporting documents are and will continue to be available for at least
five years following the closure of the annual programme by the Commission.

Date

Name in capital letters, stamp, position and
signature of certifying authority

(1) Total amount of eligible expenditure paid by final beneficiaries or used for the technical assistance.

L 167/58

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Official Journal of the European Union

27.6.2008

INSTRUCTIONS CONCERNING THE EMBLEM AND DEFINITION OF THE STANDARD COLOURS

ANNEX X

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, twelve being the symbol of perfection and unity.

Heraldic description

On an azure field a circle of 12 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. 12 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 one eighteenth 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.

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’.

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Official Journal of the European Union

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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 (hexadecimal: 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.

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.

L 167/60

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Official Journal of the European Union

27.6.2008

ANNEX XI

RULES ON THE ELIGIBILITY OF EXPENDITURE — EXTERNAL BORDERS FUND

I.1.

Basic principles

I.

General principles

1.

In accordance with the basic act, for it to be eligible, expenditure must be:

(a)

within the scope of the Fund and within its objectives, as described in Articles 1 and 3 of the basic
act;

(b) within the eligible actions listed in Articles 4 and 6 of the basic act;

(c)

(d)

(e)

needed to carry out the activities covered by the project, forming part of the multiannual and annual
programmes, as approved by the Commission;

reasonable and comply with the principles of sound financial management, in particular, value for
money and cost-effectiveness;

incurred by the final beneficiary and/or the partners in the project, who shall be established and
registered in a Member State, except in the case of international governmental organisations that
pursue the same objectives laid down in the basic act. With regard to Article 39 of this Decision, the
rules applicable to the final beneficiary shall apply mutatis mutandis to the partners in the project;

(f)

incurred in accordance with the specific provisions in the grant agreement.

2.

3.

In the case of multiannual actions within the meaning of Article 16(6) of the basic act, only the part of the
action co-financed by an annual programme is considered to be a project for the application of these
eligibility rules.

Projects supported by the Fund shall not be financed by other sources covered by the Community budget.
Projects supported by the Fund shall be co-financed by public or private sources.

I.2.

Budget of a project

The budget of a project shall be presented as follows:

Expenditure

Income

+ Direct costs (DC)

+

Indirect costs (fixed percentage of DC, defined in the
grant agreement)

+ Costs covered by assigned income (if applicable)

+

+

+

+

contribution from the EC (defined as the lowest of
the three amounts indicated in Article 12 of this
Decision)

contribution from the final beneficiary and the
partners in the project (1)

contribution from third parties

receipts generated by the project

= Total eligible cost (TEC)

= Total income

The budget shall be balanced: total eligible cost shall be equal to total income.

I.3.

Income and non-profit principle

1.

Projects supported by the Fund must be of a non-profit-making nature. If, at the end of the project, the
sources of income, including receipts, exceed expenditure, the contribution to the project from the Fund
shall be reduced accordingly. All sources of income for the project must be recorded in the final
beneficiary's accounts or tax documents, and must be identifiable and controllable.

(1) Including assigned income as described in point IV.

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2.

3.

Project income shall come from all financial contributions granted to the project by the Fund, from public
or private sources, including the final beneficiary's own contribution, and from any receipts generated by
the project. ‘Receipts’ for the purpose of this rule covers revenue received by a project during the eligibility
period as described in point I.4, from sales, rentals, services, enrolment/fees or other equivalent income.

The Community contribution resulting from the application of the principle of non-profit, as referred to
under Article 12(c) of this Decision, will be the ‘total eligible cost’ minus the ‘contribution from third
parties’ and ‘receipts generated by the project’.

I.4.

Eligibility period

1.

Costs relating to a project must be incurred and the respective payments (except for depreciation) made
after 1 January of the year referred to in the financing decision approving the annual programmes of the
Member States. The eligibility period is until 31 December of the year N (1) +1, meaning that the costs
relating to a project must be incurred before this date.

2.

An exception to the abovementioned eligibility period is made for:

(a)

projects supported under the 2007 annual programme, in accordance with Article 37(3) of the basic
act;

(b)

technical assistance for Member States (refer to point V(3)).

I.5.

Record of expenditure

1.

2.

Expenditure shall correspond to payments made by the final beneficiary. These must be in the form of
financial (cash) transactions, with the exception of depreciation.

As a rule, expenditure shall be justified by official invoices. Where this cannot be done, expenditure shall be
supported by accounting documents or supporting documents of equivalent evidential value.

3.

Expenditure must be identifiable and verifiable. In particular,

(a)

it must be recorded in the accounting records of the final beneficiary;

(b)

it must be determined in accordance with the applicable accounting standards of the country where
the final beneficiary is established and with the usual cost accounting practices of the final beneficiary;
and

(c)

it must be declared in accordance with the requirements of applicable tax and social legislation.

4. Where applicable, the final beneficiaries are obliged to keep certified copies of the accounting documents

justifying income and expenditure incurred by the partners in relation to the project concerned.

5.

The storage and processing of such records must comply with the national data protection legislation.

I.6.

Territorial scope

1.

Expenditure for actions described in Articles 4 and 6 of the basic act must be incurred in the territory of the
Member States, by the final beneficiaries defined in point I.1(e), with the exception of:

— expenditure implementing actions relating to the general objective defined in Article 3(1)(d) of the
basic act. Expenditures for these actions may be incurred in the territory of the Member States and in
third countries,

— actions relating to the surveillance of external borders. These actions can take place both within and

beyond the territory of Member States.

(1) Where ‘N’ is the year referred to in the financing decision approving the annual programmes of Member States.

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2.

Official Journal of the European Union

27.6.2008

Partners in the project registered and established in third countries may participate in projects on a no-cost
basis, except in the case of international governmental organisations. Therefore, costs incurred by these
partners are ineligible.

II.

Categories of eligible costs (at project level)

II.1.

Direct eligible costs

The direct eligible costs of the project are costs that, with due regard to the general conditions of eligibility set out
in part I above, are identifiable as specific costs directly linked to the implementation of the project. Direct costs
shall be included in the estimated overall budget of the project.

The following direct costs are eligible:

II.1.1.

S t a f f c o s t s

II.1.1.1. General rules

1.

Direct costs for staff are eligible only for persons that have a key and direct role in the project, such as
project managers and other staff operationally involved in the project, for example planning project
activities, implementing (or monitoring) operational activities, delivering services to the final recipients of
the project, etc.

Costs for other members of staff in the final beneficiary organisation who only provide a supporting role
(such as the general manager, accountant, procurement support, human resources support, information
technology support, administrative assistant, receptionist, etc.) are not eligible as direct costs and are
considered to be indirect costs (see point II.2).

2.

Staff costs shall be detailed in the forward budget, indicating functions, number of staff and names.

If the names of the persons are not yet known or cannot be disclosed, indication shall be provided of the
professional and technical capacities of the persons set to implement the relevant functions/tasks within the
project.

3.

The cost of staff assigned to the project, i.e. salaries and social security contributions and other statutory
costs, shall be eligible, provided that this does not exceed the average rates as regards the final beneficiary's
usual policy on remuneration. Where applicable, this figure may include all the usual contributions paid by
the employer, but it must exclude any bonuses, incentive payments or profit-sharing schemes. Levies, taxes
or charges (in particular, direct taxes and social security contributions on wages) arising from projects co-
financed by the Fund amount to eligible costs only where they are actually borne by the final beneficiary of
the grant.

II.1.1.2.

Specific conditions for staff costs of public bodies

Staff costs for public bodies in charge of implementing the project are considered as eligible direct costs only in
the following situations:

1.

In accordance with the tasks carried out in relation to the project as well as the duration of the project, costs
for staff of consular and other services of Member States in third countries competent in the management of
flows of third-country nationals into the territory of the Member States, such as consular officers, air liaison
officers and immigration liaison officers, are considered as direct eligible costs, provided that the purpose of
the project is to improve the co-operation between Member States and involves the sharing of tasks and
responsibilities for the benefit of more than two participating Member States.

2.

Costs for staff of other authorities and services of Member States concerned by the basic act, such as border
guards provided that:

(a)

the project does not predominantly concern the procurement of equipment or real estate as referred
to in points II.1.3 and II.1.4 below; and

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(b)

the project consists mainly of tasks which require the active and continuous input by staff such as the
organisation of meetings and management processes for exchange of information or best practices,
consultation and coordination mechanisms, training or education of staff and programmes for the
secondment and exchange of staff.

In such cases, the staff costs are considered as direct eligible costs for:

— a person contracted by the final beneficiary solely for the purpose of implementing the project,

— a person employed on a permanent basis by the final beneficiary who:

(i)

(ii)

fulfils tasks specifically linked to the implementation of the project on the basis of overtime
remuneration; or

is seconded by a duly documented decision of the organisation to tasks that are specifically
linked to the implementation of the project and which do not form part of his/her normal
routine and he/she is replaced for his/her usual tasks by another person recruited by the
organisation.

II.1.2.

T r a v e l a n d s u b s i s t e n c e c o s t s

1.

Travel and subsistence costs are only eligible as direct costs for:

(a)

staff of the final beneficiary whose costs are eligible as defined in point II.1.1;

(b)

(c)

in duly exceptional and justified cases, staff of the final beneficiary providing a supporting role as
defined in point II.1.1;

other persons outside the final beneficiary who participate in the activities of the project. In this case,
attendance lists should be kept as supporting evidence.

2.

3.

Travel costs shall be eligible on the basis of the actual costs incurred. Reimbursement rates shall be based on
the cheapest form of public transport and flights shall, as a rule, be permitted only for journeys over 800
km (return trip), or where the geographical destination justifies travelling by air. Boarding passes must be
kept. Where a private car is used, reimbursement is normally made either on the basis of the cost of public
transport, or on the basis of mileage rates in accordance with published official rules in the Member State
concerned or used by the final beneficiary.

Subsistence costs shall be eligible on the basis of real costs or a daily allowance. Where an organisation has
its own daily rates (subsistence allowances), they shall be applied within ceilings established by the Member
State in accordance with national legislation and practice. Subsistence allowances are normally understood
to cover local transport (including taxis), accommodation, meals, local telephone calls and sundries.

II.1.3.

E q u i p m e n t

II.1.3.1. General rules

1.

2.

Costs pertaining to the acquisition of equipment (based on any of the following: rental, leasing, purchase
based on the full or partial cost, or depreciation of purchased assets) are only eligible if they are essential to
the implementation of the project. Equipment shall have the technical properties needed for the project and
comply with applicable norms and standards.

Costs for day-to-day administrative equipment (such as printer, laptop, fax, copier, phone, cabling, etc.) are
not eligible as direct costs and are to be considered as indirect costs (see point II.2).

II.1.3.2. Renting and leasing

Expenditure in relation to renting and leasing operations is eligible for co-financing subject to the rules established
in the Member State, national legislation and practice and the duration of the rental or lease for the purpose of the
project.

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II.1.3.3.

Purchasing

1.

Costs pertaining to the acquisition of equipment (systems, operating equipment, means of transport, inter
alia, as referred to in Article 5(1)(c) to (f) of the basic act) are eligible in accordance with national rules. Such
costs are eligible for co-financing on the basis of the full or partial cost of the purchase if:

(a)

they are directly linked to the realisation of the project;

(b)

incurred in accordance with national procurement rules established in the Member State;

(c)

(d)

the equipment has the technical characteristics necessary for the project and complies with applicable
norms and standards;

the equipment will continue to be used for the same objectives pursued by the project, even after the
project has ended for the minimum duration of:

— three years or more for information and communication technology (ICT) equipment,

— five years or more for other types of equipment such as operating equipment and means of

transport, except for the ones indicated below,

— 10 years for helicopters, vessels and aircrafts.

2.

Costs for the abovementioned equipment may be eligible on the basis of depreciation in accordance with
national rules. In that case the above conditions (a), (b) and (c) shall apply. Furthermore, the following
conditions must also be satisfied:

(a)

(b)

(c)

where equipment is purchased before or during the lifetime of the project, the portion of equipment
depreciation is eligible on the basis of the duration of use for the project and the rate of actual use for
the project;

equipment that was purchased before the lifetime of the project, but which is used for the purpose of
the project, is eligible on the basis of depreciation. However these costs are ineligible if the equipment
was originally purchased through a Community grant;

purchase costs of equipment shall correspond to normal market costs and the value of the items
concerned is written off in accordance with the tax and accounting rules applicable to the final
beneficiary.

II.1.4.

R e a l e s t a t e

II.1.4.1. General rules

In the case of either purchase of real estate, construction or renovation of real estate, or rental of real estate, it
shall have the technical properties needed for the project and comply with the applicable norms and standards.

II.1.4.2.

Purchase, construction or renovation

1.

If the acquisition of real estate is essential for implementation of the project and is clearly linked with its
objectives, the purchase of real estate, i.e. buildings already constructed, or construction of real estate, is
eligible for co-financing on the basis of the full or partial cost, or on the basis of depreciation, under the
conditions set out below, without prejudice to the application of stricter national rules:

(a)

(b)

(c)

a certificate shall be obtained from an independent qualified valuer or duly authorised official body
establishing that the price does not exceed the market value, either attesting that the real estate is in
conformity with national regulations or specifying the points which are not in conformity that the
final beneficiary plans to rectify as part of the project;

the real estate has not been purchased through a Community grant at any time prior to the
implementation of the project;

the real estate is to be used solely for the purpose stated in the project for a period of at least 10 years
after the end date of the project unless the Commission specifically authorises otherwise in the case of
co-financing of the full or partial costs. In the case of co-financing on the basis of depreciation this
period is reduced to five years;

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(d)

(e)

the purchase of the real estate respects the principles of value for money and cost-effectiveness and is
being considered as proportionate to the aim to be achieved through the implementation of the
project;

in the case of co-financing on the basis of depreciation, only the portion of the depreciation of these
assets corresponding to the duration of use for the project and the rate of actual use for the project is
eligible. Depreciation shall be calculated according to national accounting rules.

2.

Expenses for renovation of real estate are eligible for co-financing on the basis of the full or partial cost or
on the basis of depreciation. In the case of renovation costs only conditions (c) and (e) above apply.

II.1.4.3. Rental

Rental of real estate is eligible for co-financing where there is a clear link between the rental and the objectives of
the project concerned, under the conditions set out below and without prejudice to the application of stricter
national rules:

(a)

the real estate shall not have been purchased through a Community grant.

(b)

the real estate should only be used for implementation of the project. If not, only the portion of the costs
corresponding to the use for the project is eligible.

II.1.4.4. Office space for the final beneficiary

Costs for the purchase, construction, renovation or rental of office space for the routine activities of the final
beneficiary are not eligible. Such costs are considered to be indirect costs (see point II.2).

II.1.5.

C o n s u m a b l e s , s u p p l i e s a n d g e n e r a l s e r v i c e s

1.

2.

The costs of consumables, supplies and general services are eligible provided that they are identifiable and
directly necessary for the implementation of the project.

However, office supplies as well as all kinds of small administrative consumables, supplies, hospitality costs
and general services (such as telephone, internet, postage, office cleaning, utilities, insurance, staff training,
recruitment, etc.) are not direct eligible costs; they are included in indirect costs, as referred to in point II.2.

II.1.6.

S u b c o n t r a c t i n g

1.

As a general rule, final beneficiaries must have the capacity to carry out the activities relating to the project
themselves. Therefore, subcontracting must be limited and shall not exceed 40 % of the direct eligible costs
of a project unless duly justified and approved in advance by the responsible authority.

2.

Expenditure relating to the following subcontracts is ineligible for co-financing by the Fund:

(a)

subcontracting of tasks relating to the overall management of the project;

(b)

subcontracting that adds to the cost of the project without adding proportionate value to it;

(c)

subcontracting with intermediaries or consultants where payment is defined as a percentage of the
total cost of the project, unless such payment is justified by the final beneficiary by reference to the
actual value of the work or services provided.

3.

For all subcontracts, subcontractors shall undertake to provide all audit and control bodies with all the
necessary information relating to subcontracted activities.

II.1.7.

C o s t s d e r i v i n g d i r e c t l y f r o m t h e r e q u i r e m e n t s l i n k e d t o E U c o - f i n a n c i n g

Costs needed to meet the requirements linked to EU co-financing, such as publicity, transparency, evaluation of
the project, external audit, bank guarantees, translation costs, etc., are eligible as direct costs.

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II.1.8.

E x p e r t

f e e s

Legal consultancy fees, notarial fees and costs of technical and financial experts are eligible.

II.2.

Indirect eligible costs

1.

Indirect costs relate to categories of expenditure that are not identifiable as specific costs directly linked to
the project. A fixed percentage of the total amount of direct eligible costs may be eligible as indirect costs,
provided that:

(a)

the indirect costs are kept to a minimum and the exact percentage of indirect costs is set by the
Member State in relation to needs;

(b)

the indirect costs are anticipated in the forward budget of the project;

(c)

the indirect costs do not include costs assigned to another heading of the budget for the project;

d)

(e)

the indirect costs are not financed from other sources. Organisations receiving an operating grant
received from the EU budget and/or from the Member States cannot include indirect costs in their
forward budget;

as a general rule, the fixed percentage of indirect costs in relation to the total amount of direct eligible
costs does not exceed 5 %. However, the fixed percentage of indirect costs shall not exceed 2,5 % in
any of the following situations:

— where the responsible authority acts as an executing body as defined in Article 7(3), or

— where the combined total of subcontracting (II.1.6) and procurement (points II.1.3 and II.1.4)

exceeds 40 % of the eligible direct costs.

2.

The percentage allocated to indirect costs shall cover the following costs in particular:

(a)

staff costs that are ineligible as direct costs as per point II.1.1.1 (1);

(b)

administration and management expenses, such as costs identified in II.1.5.2;

(c)

bank fees and charges (except bank guarantees as defined in section II.1.7);

(d)

costs for real estate and maintenance costs when linked to day-to-day administrative operations, such
as costs identified in II.1.4.4;

(e)

all costs linked to the project but excluded from section II.1 — ‘Direct eligible costs’.

The following costs are not eligible:

III.

Ineligible expenditure

(a)

VAT, except where the final beneficiary can show that he is unable to recover it;

(b)

return on capital, debt and debt service charges, debit interest, foreign exchange commissions and exchange losses,
provisions for losses or potential future liabilities, interest owed, doubtful debts, fines, financial penalties, litigation
costs, and excessive or reckless expenditure;

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(c)

(d)

entertainment costs exclusively for project staff. Reasonable hospitality costs at social events justified by the project,
such as an event at the end of the project or meetings of the project steering group, are permitted;

costs declared by the final beneficiary and covered by another project or work programme receiving a Community
grant;

(e)

purchase of land;

(f)

staff costs for officials who contribute to project implementation by accomplishing tasks that are part of their normal
routine;

(g)

contributions in kind.

IV.

Costs covered by assigned income

1.

2.

In duly substantiated cases, co-financing of the project as regards the contribution from the final beneficiary and the
partners in the project may be made up in part of contributions in terms of work carried out by permanent officials
employed by these bodies and involved in the project. In this case these costs are not eligible as direct or indirect staff
costs as defined under points II.1.1 and II.2 but as costs covered by assigned income.

Such contributions shall not exceed 50 % of the total contribution given by the final beneficiary. In this case, the
following rules shall apply:

(a)

(b)

(c)

tasks of public officials are specifically linked to implementation of the project and do not arise from the
statutory responsibilities of the public authority;

public officials entrusted with implementing a project are seconded by a duly documented decision of the
competent authority;

the value of the contributions can be audited and may not exceed the costs actually borne and duly supported
by accounting documents of the public authority.

V.

Technical assistance at the initiative of member states

1.

At the initiative of each Member State, the following technical assistance measures are eligible for each annual
programme, within the limits specified in Article 18 of the basic act:

(a)

expenditure relating to the preparation, selection, appraisal, management and monitoring of actions (including
computer equipment and consumables);

(b)

expenditure relating to audits and on-the-spot checks of actions or projects;

(c)

expenditure relating to evaluations of actions or projects;

(d)

expenditure relating to information, dissemination and transparency in relation to actions;

(e)

(f)

expenditure on the acquisition, installation and maintenance of computerised systems for the management,
monitoring and evaluation of the Funds;

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

(g)

expenditure on salaries, including social security contributions, although only in the following cases:

— civil servants or other public officials seconded by duly documented decision of the competent authority

to carry out tasks referred to in points (a) to (f),

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— other staff employed to carry out tasks referred to in points (a) to (f),

— the period of secondment or employment may not exceed the final date for the eligibility of expenditure

laid down in the decision approving the assistance.

2.

3.

4.

5.

Technical assistance may finance expenses incurred by any of the following bodies: responsible authority, delegated
authority, audit authority, certifying authority.

Activities linked to technical assistance must be performed and the corresponding payments made after 1 January of
the year referred to in the financing decision approving the annual programmes of Member States. The eligibility
period lasts until the end of June of the year N (1) + 2 or any later date compatible with the deadline for the
submission of the final report on implementation of the annual programme.

Any procurement must be carried out in accordance with national procurement rules established in the Member State.

Member States may implement technical assistance measures for this Fund together with technical assistance measures
for some or all of the four Funds. However, in that case only the portion of the costs used to implement the common
measure corresponding to this Fund shall be eligible for financing under this Fund, and Member States shall ensure
that:

(a)

the portion of costs for common measures is charged to the corresponding Fund in a reasonable and verifiable
manner; and

(b)

there is no double financing of costs.

The following specific rules shall apply in the case of the Special Transit Scheme:

VI.

Special transit scheme

(a)

the eligibility period for expenditure shall be in accordance with Article 40 (3) of this Decision;

(b)

(c)

by virtue of Article 6(2)(c) of the basic act, costs for staff specifically implementing the special transit scheme are
considered as eligible direct costs in accordance with the general rules described in point II.1.1.1, paragraphs 2 and 3;

by virtue of Article 6(2)(c) of the basic act, travel and subsistence costs for staff specifically implementing the special
transit scheme are considered as eligible direct costs;

(d)

point II.1.3.1 paragraph 2 shall not apply;

(e)

point II.1.4.4 shall not apply;

(f)

point II.1.5 paragraph 2 shall not apply;

(g)

indirect costs (Section II.2) shall be ineligible;

(h)

Section III, point (f) shall not apply.

(1) Where ‘N’ is the year referred to in the financing decision approving the annual programmes of Member States.