CELEX: 32004D0804
Language: en
Date: 2004-04-21 00:00:00
Title: Decision No 804/2004/EC of the European Parliament and of the Council of 21 April 2004 establishing a Community action programme to promote activities in the field of the protection of the Community's financial interests (Hercule programme)

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