Reform history

#### Article 26a

##### Financial corrections by the Joint Managing Authority

1. The Joint Managing Authority shall in the first instance be responsible for preventing and investigating irregularities and for making the financial corrections required and pursuing recoveries.

The Joint Managing Authority shall make the financial corrections required in connection with individual irregularities detected in projects or technical assistance. Financial corrections shall consist of cancelling all or part of the Union contribution to a project or to technical assistance. The Joint Managing Authority shall take into account the nature and gravity of the irregularities and the financial loss and shall apply a proportionate financial correction. The criteria for establishing the level of financial correction to be applied and the criteria for applying flat rates or extrapolated financial correction may be those adopted in accordance with Regulation (EU) No 1303/2013 (⁵), in particular Article 144, as well as those contained in the Commission Decision of 19 December 2013 (⁶). Financial corrections shall be recorded in the annual accounts by the Joint Managing Authority for the accounting year in which the cancellation is decided.

2. The Union contribution cancelled in accordance with paragraph 1 may be reused within the concerned programme, subject to paragraph 3. The reallocation of these programme's resources shall comply, inter alia, with Articles 7, 13, 18 and 43.

3. The contribution cancelled in accordance with paragraph 1 may not be reused for the project that was the subject of a financial correction or for projects selected through calls for proposals.

The final report on implementation of the joint operational programme shall contain *mutatis mutandis* the same elements as the annual reports, including their annexes for the entire duration of the programme. It shall be submitted by 30 June 2017 at the latest for the programmes that have proceeded with the extension of the implementation phase from 31 December 2014 to 31 December 2015, and by 30 June 2016 at the latest for the programmes with implementation phase ending on 31 December 2014.

1. The period of execution of each joint operational programme shall start at the earliest at the date of the adoption of the joint operational programme by the Commission and end on 31 December 2017 at the latest.

(c)a financial closure phase for the joint operational programme including the financial closure of all contracts concluded as part of the programme, the *ex post* evaluation of the programme, the submission of the final report, and the final payment or final recovery by the Commission. This phase shall end on 31 December 2017 at the latest.

3. Notwithstanding paragraphs 1 and 2, in the event of unforeseen and duly justified needs or circumstances, following a reasoned request from the Joint Monitoring Committee, the Commission may agree on the extension of the execution period of a joint operational programme. In that case, the dates for submission of final report set out in Article 32 shall not apply.

(⁵) Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320).

(⁶) Commission Decision of 19 December 2013 on the setting out and approval of the guidelines for determining financial corrections to be made by the Commission to expenditure financed by the Union under shared management for non-compliance with the rules on public procurement (C(2013) 9527).