Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy

1. documentation that allows verification of the application of the selection criteria by the managing authority, as well as documentation relating to the overall selection procedure and the approval of operations;
2. document (grant agreement or equivalent) setting out the conditions for support signed between the beneficiary and the managing authority/intermediate body;
3. accounting records of payment claims submitted by the beneficiary, as recorded in the managing authority/intermediate body's electronic system;
4. documentation on verifications addressing the non-relocation and durability requirements as set out in Article 65, Article 66(2) and point (h) of Article 73(2);
5. proof of payment of the public contribution to the beneficiary and of the date the payment was made;
6. documentation evidencing the administrative and, where applicable, on-the-spot checks carried out by the managing authority/intermediate body;
7. information on audits carried out;
8. documentation relating to the follow-up by the managing authority/intermediate body for purposes of management verifications and audit findings;
9. documentation demonstrating verification of compliance with applicable law;
10. data in relation to output and result indicators enabling reconciliation with corresponding targets and reported milestones;
11. documentation related to financial corrections to and deductions from the expenditure declared to the Commission to ensure compliance with Article 98(6) made by the managing authority/intermediate body/the body to which the accounting function has been entrusted to;
12. for grants taking the form set out in point (a) of Article 53(1), the invoices (or documents of equivalent probative value) and proof of their payment by the beneficiary, as well as accounting records of the beneficiary relating to the expenditure declared to the Commission;
13. for grants taking the forms set out in points (b), (c) and (d) of Article 53(1), and as applicable, documents justifying the method of establishing unit costs, lump sums and flat rates; the categories of costs forming the basis for the calculation; documents evidencing costs declared under other categories of costs to which a flat rate applies; the explicit agreement by the managing authority on the draft budget on the document setting out the conditions for support; documentation on the gross employment costs and on calculation of the hourly rate; where simplified cost options are used based on existing methods, documentation confirming compliance with similar type of operations and with documentation required by the existing method, if any.

II.Obligatory elements for audit trail for financial instruments:

III.Obligatory elements of audit trail for reimbursement of the Union contribution by the Commission under Article 94 to be kept at the level of the managing authority/ intermediate body:

IV.Obligatory elements of audit trail for reimbursement of the Union contribution by the Commission under Article 95 to be kept at the level of the managing authority/ intermediate body:

ANNEX XIV

1.Responsibilities of programme authorities regarding the characteristics of electronic data exchange systems

1.1.Ensuring the data security, data integrity, data confidentiality, authentication of the sender in accordance with Articles 69(6), 69(8), point (e) of Article 72(1) and Article 82.

1.2.Ensuring availability and functioning during and outside standard office hours (except during technical maintenance).

1.3.Ensuring that the system aims to make use of logical, simple and intuitive functions and interface.

1.4.Use of functionalities in the system providing for:

(a) interactive forms and/or forms prefilled by the system on the basis of the data which are stored at consecutive steps of the procedures;

(b) automatic calculations, where applicable;

(c) automatic embedded controls which reduce repeated exchanges of documents or information;

(d) system-generated alerts to inform the beneficiary that certain actions can be performed;

(e) online status tracking allowing the beneficiary to monitor the current status of the project;

(f) all previously available data and documents processed by the electronic data exchange system.

1.5.Ensuring record-keeping and data storage in the system enabling both administrative verifications of payment claims submitted by beneficiaries in accordance with Article 74(2) and audits.

2.Responsibilities of programme authorities regarding the modalities for transmission of documents and data for all exchanges

2.1.Ensuring the use of electronic signature compatible with one of the three types of electronic signature defined by Regulation (EU) No 910/2014 of the European Parliament and of the Council (⁴⁷).

2.2.Providing for storing the date of transmission of documents and data by the beneficiary to the programme authorities and vice versa.

2.3.Ensuring accessibility directly through an interactive user interface (a web application) or via a technical interface that allows for automatic synchronisation and transmission of data between beneficiaries' and Member States' systems.

2.4.Ensuring the protection of privacy of personal data for individuals and commercial confidentiality for legal entities according to Directive 2002/58/EC of the European Parliament and of the Council (⁴⁸) and Regulation (EU) 2016/679.

ANNEX XV

1. Responsibilities of the Commission

1.1.Ensuring the operation of an electronic data exchange system (‘SFC2021’) for all official exchanges of information between the Member State and the Commission. SFC2021 shall contain at least the information specified in the templates established in accordance with this Regulation.

1.2.Ensuring the following characteristics of SFC2021:

(a) interactive forms or forms pre-filled by the system on the basis of the data already recorded in the system previously;

(b) automatic calculations, where they reduce the encoding effort of users;

(c) automatic embedded controls to verify internal consistency of transmitted data and consistency of this data with applicable rules;

(d) system generated alerts warning SFC2021 users that certain actions can or cannot be performed;

(e) online status tracking of the treatment of information entered into the system;

(f) availability of historical data in respect of all information entered for a programme;

(g) availability of a compulsory electronic signature within the meaning of Regulation (EU) No 910/2014 which will be recognised as evidence in legal proceedings.

1.3.Ensuring an information technology security policy for SFC2021 applicable to the personnel using the system in accordance with relevant Union rules, in particular Commission Decision (EU, Euratom) 2017/46 (⁴⁹) and its implementing rules.

1.4.Designating a person or persons responsible for defining, maintaining and ensuring the correct application of the security policy to SFC2021.

2. Responsibilities of Member States

2.1.Ensuring that the programme authorities of the Member State identified in accordance with Article 71(1) as well as the bodies identified to carry out certain tasks under the responsibility of the managing authority or the audit authority in accordance with Article 71(2) and (3) enter into SFC2021 the information for the transmission of which they are responsible and any updates thereto.

2.2.Ensuring the verification of information submitted by a person other than the person who entered the data for that transmission.

2.3.Providing arrangements for the separation of the above tasks through the Member State’s management and control information systems connected automatically with SFC2021.

2.4.Appointing a person or persons responsible for managing access rights to fulfil the following tasks:

(a) identifying users requesting access, making sure those users are employed by the organisation;

(b) informing users about their obligations to preserve the security of the system;

(c) verifying the entitlement of users to the required privilege level in relation to their tasks and their hierarchical position;

(d) requesting the termination of access rights when those access rights are no longer needed or justified;

(e) promptly reporting suspicious events that may bring prejudice to the security of the system;

(f) ensuring the continued accuracy of user identification data by reporting any changes;

(g) taking the necessary data protection and commercial confidentiality precautions in accordance with Union and national rules;

(h) informing the Commission of any changes affecting the capacity of the Member State authorities or users of SFC2021 to carry out the responsibilities referred to in point 2.1 or their personal capacity to carry out responsibilities referred to in points (a) to (g).

2.5.Providing arrangements for the respect of the protection of privacy and of personal data for individuals, and of commercial confidentiality for legal entities in accordance with Directive 2002/58/EC, Regulation (EU) 2016/679 and Regulation (EU) 2018/1725.

2.6.Adopting national, regional or local information security policies on access to SFC2021 based on a risk assessment applicable to all authorities using SFC2021 and addressing the following aspects:

(a) the IT security aspects of the work performed by the person or persons responsible for managing the access rights referred to in point 2.4 of section II in case of application of direct use;

(b) for national, regional or local computer systems connected to SFC2021, through a technical interface referred to in point 2.3 the security measures for those systems allowing to be aligned with SFC2021 security requirements and covering: (i) physical security; (ii) data media and access control; (iii) storage control; (iv) access and password control; (v) monitoring; (vi) interconnection with SFC2021; (vii) communication infrastructure; (viii) human resources management prior to employment, during employment and after employment; (ix) incident management.

2.7.Making the document referred to in point 2.6 available to the Commission upon request.

2.8.Appointing a person or persons responsible for maintaining and ensuring the application of the national, regional or local IT security policies and acting as a contact point with the person or persons designated by the Commission and referred to in point 1.4.

3. Joint responsibilities of the Commission and the Member States

3.1.Ensuring accessibility either directly through an interactive user-interface (i.e. a web-application) or via a technical interface using pre-defined protocols (i.e. web-services) that allows for automatic synchronisation and transmission of data between Member States information systems and SFC2021.

3.2.Providing for the date of electronic transmission of the information by the Member State to the Commission and vice-versa in electronic data exchange, which constitutes the date of submission of the document concerned.

3.3.Ensuring that official data is exchanged exclusively through SFC2021, except where force majeure occurs, and that information provided in the electronic forms embedded in SFC2021 (hereinafter referred to as ‘structured data’) is not replaced by non-structured data and, in the event of inconsistency, that structured data prevails over non-structured data.

In the event of force majeure, a malfunctioning of SFC2021 or a lack of a connection with SFC2021 exceeding one working day in the last week before a regulatory deadline for the submission of information or in the period from 18 to 26 December, or five working days at other times, the information exchange between the Member State and the Commission may take place in paper form using the templates set out in this Regulation in which case the date of submission of the document is the date stamped by the post. When the cause of the force majeure ceases, the party concerned enters in SFC2021 without delay the information already provided in paper form.

3.4.Ensuring compliance with the IT security terms and conditions published in the SFC2021 portal and the measures that are implemented in SFC2021 by the Commission to secure the transmission of data, in particular in relation to the use of the technical interface referred to in point 2.3.

3.5.Implementing and ensuring the effectiveness of the security measures adopted to protect the data stored and transmitted through SFC2021.

3.6.Updating and reviewing annually the SFC2021 IT security policy and the relevant national, regional and local IT security policies in the event of technological changes, the identification of new threats or other relevant developments.

ANNEX XVI

1. GENERAL

1.1.Information submitted by:

— Member State:

— Title of the programme(s) and CCI number(s): (all programmes covered by the managing authority where there is a common management and control system):

— Name and email of main contact point: (body responsible for the description):

1.2.The information provided describes the situation on: (dd/mm/yy).

1.3.System structure (general information and flowchart showing the organisational relationship between the authorities/bodies involved in the management and control system).

1.3.1.Managing authority (name, address and contact point in the managing authority).

1.3.2.Intermediate bodies (name, address and contact points in the intermediate bodies).

1.3.3.The body carrying out the accounting function (name, address and contact points in the managing authority or the programme authority carrying out the accounting function).

1.3.4.Indicate how the principle of separation of functions between and within the programme authorities is respected.

2. MANAGING AUTHORITY

2.1.Managing authority – description of the organisation and the procedures related to its functions and tasks as provided for in Articles 72 to 75.

2.1.1.The status of the managing authority (national, regional or local public body or private body) and the body of which it is part.

2.1.2.Specification of the functions and tasks carried out directly by the managing authority.

2.1.3.Where applicable, specification per intermediate body of each of the functions and tasks delegated by the managing authority, identification of the intermediate bodies and the form of the delegation. Reference should be made to relevant documents (written agreements).

2.1.4.Procedures for the supervision of the functions and tasks delegated by the managing authority, if any.

2.1.5.Framework to ensure that an appropriate risk management exercise is conducted when necessary, and in particular in the event of major modifications to the management and control system.

2.1.6Organisation chart of the managing authority and information on its relationship with any other bodies or divisions (internal or external) that carry out functions and tasks as provided for in Articles 72 to 75.

2.1.7.Indication of planned resources to be allocated in relation to the different functions of the managing authority (including information on any planned outsourcing and its scope, where appropriate).

3. BODY CARRYING OUT THE ACCOUNTING FUNCTION

3.1.Status and description of the organisation and the procedures related to the functions of the body carrying out the accounting function.

3.1.1.The status of the body carrying out the accounting function (national, regional or local public or private body) and the body of which it is part, where relevant.

3.1.2.Description of the functions and tasks carried out by the body carrying out the accounting function as set out in Article 76.

3.1.3.Description of how the work is organised (workflows, processes, internal divisions), what procedures apply and when, how these are supervised, etc.

3.1.4.Indication of planned resources to be allocated in relation to the different accounting tasks.

4. ELECTRONIC SYSTEM

4.1.Description of the electronic system or systems including a flowchart (central or common network system or decentralised system with links between the systems) for:

4.1.1.Recording and storing, in a computerised form data on each operation, including where appropriate data on individual participants and a breakdown of data on indicators when provided for in this Regulation;

4.1.2.Ensuring that accounting records or codes for each operation are recorded and stored, and that these records or codes support the data required for drawing up payment applications and the accounts;

4.1.3.Maintaining accounting records or keeping separate accounting codes of expenditure declared to the Commission and the corresponding public contribution paid to beneficiaries;

4.1.4.Recording all amounts withdrawn during the accounting year as set out in point (b) of Article 98(3) and deducted from the accounts as set out in Article 98(6) and the reasons for these withdrawals and deductions;

4.1.5.Indicating whether the systems are functioning effectively and can reliably record the data mentioned on the date where this description is compiled as set out in point 1.2;

4.1.6.Describing the procedures to ensure the electronic systems' security, integrity and confidentiality.

ANNEX XVII

This Annex establishes the data to be recorded without prescribing a specific structure for the electronic system (e.g. information included in a line for the purposes of this Annex may be broken down into multiple data fields in the electronic system concerned).

The data indicated in the first column of the table is required for operations supported by any of the Funds covered by this Regulation unless otherwise specified in the second column. Only data fields that are relevant to the operation in question should be completed. For financial instruments operations, information in sections that explicitly refer to financial instruments shall be also recorded and stored.

Where an operation is supported by more than one programme, priority, Fund, or under more than one category of region, the information referred to in fields 28-123 of this Annex shall be recorded in a manner that allows data to be retrieved broken down by programme, priority, Fund and category of region.

In addition, the information referred to in fields 46-152 of this Annex (data related to reporting requirements under Article 42 and Annex VII) shall be recorded in a manner that allows data to be retrieved broken down by specific objective.

Data fields	Indication of Funds for which data is not required
Data on the beneficiary (1) (2)
1. Name and unique identifier, where relevant, of each beneficiary
2. Information whether the beneficiary is a public or private law body, or an entity with or without legal personality, or a natural person. If a natural person, date of birth and national ID number. If public or private law body, or an entity with or without legal personality, VAT or tax identification number
3. Information on all beneficial owners of the beneficiary, if any, as defined in Article 3(6) of Directive (EU) 2015/849, namely first name(s) and last names(s), dates(s) of birth and VAT registration number(s) or tax identification number(s) Member States may comply with this requirement by using the data stored in the registers as referred to in Article 30 of Directive (EU) 2015/849, provided a unique identification number is included.
4. Information on whether the beneficiary is the body receiving the aid (in the context of State aid) or granting the aid (in the context of de minimis aid)
5. Only for PPP operations, information whether the beneficiary is the public body initiating the PPP or the private partner selected for its implementation
6. Only for small projects funds (Interreg), information whether the beneficiary of a small project fund is a cross-border legal body, a European grouping of territorial cooperation or a body which has legal personality	Not applicable to ERDF under the Investment for jobs and growth goal, ESF+, the Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
7. Contact details of the beneficiary
Data on the beneficiary in the context of financial instruments
8. Information whether the beneficiary is: (a) the body that implements a holding fund or, (b) where there is no holding fund structure, the body that implements a specific fund, or (c) where the managing authority implements financial instrument directly, information on the managing authority
Data on the operation
9. Name and unique identifier of the operation
10. Short description of the operation. Information on what is being financed and key objectives
11. Information whether the operation falls under the provisions of Article 94 or 95
12. Information whether the operation is an operation of strategic importance
13. Information whether the operation is pursuant to Article 12(1) of the BMVI Regulation, Article 12(1) of the ISF Regulation, and Article 15(1) of the AMIF Regulation, or a specific action, or an action listed in Annex IV to those Regulations, or operating support or emergency assistance	Not applicable to ERDF, ESF+, Cohesion Fund, JTF or EMFAF
14. Date of submission of the application for the operation
15. Starting date as indicated in the document setting out the conditions for support
16. End date as indicated in the document setting out the conditions for support
17. Actual date when the operation is physically completed or fully implemented
18. Body issuing the document setting out the conditions for support
19. Date of the document setting out the conditions for support and date of its amendments, if any
20. Information whether the public support for the operation will constitute State aid
21. Information whether the public support for the operation will constitute de minimis aid
22. Information whether the operation is a PPP operation
23. Information whether the beneficiary or other entities implementing the operation in accordance with Union procurement rules use contractors and if so, once the corresponding contracts are signed, information on: (a) all contractors, including name and VAT registration or tax identification number of the contractor(s), (b) and beneficial owners of the contractor, as defined in Article 3(6) of Directive (EU) 2015/849, namely first name(s) and last names(s), dates(s) of birth and VAT registration number(s) or tax identification number(s) of these beneficial owners and (c) contracts (date of the contract, name, reference and contract amount)
Member States may comply with the requirement under point (b) by using the data stored in the registers as referred to in Article 30 of Directive (EU) 2015/849, provided a unique identification number is included. Information under this field is only required where public procurement procedures above the Union thresholds are concerned.
24. Information (3) on whether the contractor, as referred to in the field 23, uses sub-contractors and if so, once the corresponding sub-contracts are signed, information on all sub-contractors listed in the procurement documents (of the contractor), namely name and VAT registration or tax identification number and information on sub-contracts (date of the contract, name, reference and contract amount) The requirement to record the information under this field shall apply from one year after the entry into force of this regulation.
25. Information on whether for the implementation of the operation, the beneficiary further cascades the grant to other entities. If so, information on their name, VAT registration or tax identification number and information on agreements between them and the beneficiary (date of agreement, reference and agreement amount)
26. Only where the total cost of the operation (including VAT) exceeds 5 million EUR, information whether VAT on expenditure incurred by the beneficiary is non-recoverable under national VAT legislation (point (c) of Article 64(1)),
27. Currency of the operation (as set out in the document setting out the condition for support)
28. CCI of the programme(s) under which the operation is supported
29. Priority or priorities of the programme(s) under which the operation is supported
30. Fund(s) from which the operation is supported. If there are several funds or other Union instruments from which the operation is supported, information on the split, on the pro-rata amounts, etc.
31. Information on whether the operation is with the participation of a third country, or takes place in a third country. If so, identification of that third country	Not applicable to the ERDF, ESF+, Cohesion Fund or JTF
32. Only for ESF+ support provided under the specific objective set out in point (m) of Article 4(1), quantity of food: (a) purchased by the beneficiary; (b) obtained in accordance with Article 17(2) of the ESF+ Regulation; (c) delivered to the bodies distributing the food to end recipients; and (d) distributed to end recipients	Not applicable to the ERDF, Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
33. Only for ESF+ support provided under the specific objective set out in point (m) of Article 4(1), quantity of basic material assistance: (a) purchased by the beneficiary; (b) delivered to bodies distributing the assistance to end recipients; and (c) distributed to end recipients	Not applicable to the ERDF, Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
34. Only for ESF+ support provided under specific objective set out in point (m) of Article 4(1), number of vouchers or cards (or other instruments of indirect delivery) issued, and delivered to end recipients, and used by end recipients, as well as information on the total amount of expenditure loaded in vouchers or cards (or other instruments of indirect delivery) delivered to end recipients, and used by end recipients	Not applicable to the ERDF, Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
35. Category(ies) of region concerned by the operation	Not applicable to the Cohesion Fund, EMFAF, AMIF, ISF or BMVI
Data specific to financial instruments operations
36. Information on whether the financial instrument is combined with programme support in the form of grants within the meaning of Article 58(5)
37. Information on whether the financial instrument operation is implemented directly by the managing authority, or is implemented under the responsibility of the managing authority, within the meaning of Article 59(1) and (2)
38. Information on whether the financial instrument operation is implemented across consecutive periods, and if so, identification of the periods concerned below: (a) 2014-2020 and 2021-2027 (b) 2021-2027 and post-2027
39. Where the financial instrument is organised through a holding fund, information about the body implementing a specific fund under the holding fund
40. Procedure for selecting the body implementing the financial instrument
41. Legal status of the financial instrument, either: (a) an investment of programme resources into the capital of a legal entity; or (b) separate blocks of finance or fiduciary accounts
42. Contact details of the beneficiary, and, where the financial instrument is set up with a holding fund, contact details of the body implementing a specific fund under the holding fund
43. Date of signature of the funding agreement between the managing authority and the body implementing a holding fund, or a specific fund without a holding fund
44. Date of signature of the funding agreement between the body implementing a holding fund and the body implementing a specific fund
45. Date of completion of the ex-ante assessment referred to in Article 58(3)
Data on types of intervention
46. Codes for intervention field dimension, for form of support dimension, for territorial delivery mechanism and territorial focus dimension, for economic activity dimension, for location dimension, for gender tracking and for macro-regional and sea basin strategies, where applicable, pursuant to Annex I to this Regulation and Annex VII to the ERDF and CF Regulation, as well as Annex VI to the AMIF, ISF and BMVI Regulations	Not applicable to EMFAF
47. Code(s) for ESF+ secondary theme dimension, pursuant to Annex I to this Regulation	Not applicable to the ERDF, the Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
48. Codes for the type of action, implementation and particular themes dimensions, pursuant to Annex VI to the AMIF, ISF and BMVI Regulations	Not applicable to the ERDF, ESF+ , Cohesion Fund, JTF or EMFAF
Data on indicators for all operations (including financial instruments operations)
49. Unique identifier and indicator name for each of the common and/or programme specific output indicators relevant for the operation
50. For each output indicator: (a) measurement unit, (b) target value for the operation, where applicable, broken down by gender where applicable, (c) cumulative values achieved to date, where applicable, broken down by gender, where applicable, (d) achievement ratio (achieved value/target value), where applicable	Not applicable to EMFAF
51. Milestone value for each output indicator, where applicable and broken down by gender, where applicable	Not applicable to the ESF+ support provided under specific objective set out in point (m) of Article 4(1) of the ESF+ Regulation, or to EMFAF, AMIF, ISF or BMVI
52. Unique identifier and indicator name for each of the common and/or programme specific result indicators relevant for the operation
53. Indicator breakdown, where specifically required in the Fund specific Regulations	Not applicable to ERDF, ESF+, Cohesion Fund, JTF or EMFAF
54. Measurement unit for each result indicator, where relevant	Not applicable to ERDF, Cohesion Fund, JTF or EMFAF
55. Baseline and target value for each result indicator for the operation, where applicable and broken down by gender, where applicable, as well as values achieved to date and result indicator achievement ratio (achieved value/target value)	Not applicable to EMFAF Baseline value not applicable to ESF+, AMIF, ISF or BMVI
Financial data specific to operations (in the currency applicable to the operation)
56. Amount of the total eligible cost of the operation approved in the latest version of the document setting out the conditions for support
57. Amount of the total eligible costs for which public contribution is provided
58. Amount of support from the Funds paid or to be paid
Financial data specific to financial instruments operations (in the currency applicable to the operation)
59. Amount of programme contribution, committed to a financial instrument and approved in a document setting out the conditions for support (funding agreement), out of which: (a) amount of public contribution; (b) amount of Funds contribution, broken down by Fund
60. Amount of private and public resources mobilised in addition to the Funds, by product: loans; guarantees; equity or quasi-equity; grants within a financial instrument operation
61. Interest and other gains generated by support from the Funds to financial instruments
62. Amount of interests and other gains attributable to the Funds used until the end of eligibility period used for capital investments, as well as payments of management fees and reimbursement management costs
63. Amounts of interests and other gains attributable to the Funds not used until the end of eligibility period
64. Support from the Funds used for differentiated treatment of investors operating under the market economy principle through an appropriate sharing of risks and profits
65. Resources returned attributable to support from the Funds, out of which capital repayments, or gains, or other earnings and yields
66. Information on re-use of resources returned attributable to the support from the Funds within the eligibility period, providing separate records for the amounts: (a) re-used in the same or other financial instruments for further investments in final recipients, (b) to cover the losses in the nominal amount of the Funds contribution to the financial instrument resulting from negative interest, and/or (c) for any management costs and fees associated to such further investments
67. Re-use of resources returned which are attributable to the support from the Funds within a period of 8 years after the end of the eligibility period
68. Total value of loans, equity or quasi-equity investments in final recipients guaranteed with programme resources and actually disbursed to final recipients
69. Information on: (a) the final recipient of support from the Funds, name(s) and ID number, (b) beneficial owners of the final recipient, if any, as defined in Article 3(6) of Directive (EU) 2015/849, namely first name(s) and last names(s), dates(s) of birth and VAT registration number(s) or tax identification number(s), (c) amount of support received (grant, loan, guaranteed loan, equity) Member States may comply with the requirement under point (b) by using the data stored in the registers as referred to in Article 30 of Directive (EU) 2015/849, provided a unique identification number is included therein.
Data on payment claims by the beneficiary
70. Date of receipt of each payment claim by the beneficiary
71. Date of the last payment to the beneficiary (for the purposes of the start date for the document retention period)
72. Amount of eligible expenditure in each payment claim as paid out to the beneficiary, as well as the date of payment to the beneficiary
73. Total amount of eligible expenditure entered into the accounting system(s) that has been included in the final payment application for the accounting year and total amount of the corresponding public contribution made or to be made
74. Only for operations with expenditure related to operations covering more than one category of region, pro-rata allocation of expenditure to the categories of region	Not applicable to the ESF+, EMFAF, AMIF, ISF or BMVI
75. Only for operations with expenditure related to operations receiving support from one or more Funds or one or more programmes and from other Union instruments, pro-rata allocation of expenditure to each Fund and for the programme or programmes
76. Dates and short description of the results of management verifications of the operation
77. Dates and short description of the results of on-the-spot audits of the operation
78. Body carrying out audit work or verifications
Data on expenditure in payment claim from beneficiary – only for expenditure based on real costs
79. Eligible expenditure declared to the Commission established on the basis of costs actually incurred and paid, together with in-kind contributions and depreciation, where applicable
80. Public contribution corresponding to the eligible expenditure declared to the Commission established on the basis of costs actually reimbursed and paid, together with in-kind contributions and depreciation, where applicable
81. Contract type and contract amount if the contract award is subject to the provisions of Directive 2014/23/EU (4), 2014/24/EU (5) or 2014/25/EU (6) of the European Parliament and of the Council
82. Eligible expenditure incurred and paid based on a contract if the contract award is subject to the provisions of Directive 2014/23/EU, 2014/24/EU or 2014/25/EU
83. The procurement procedure used if the contract award is subject to the provisions of Directive 2014/23/EU, 2014/24/EU or 2014/25/EU
84. Name and VAT registration or tax identification number of the contractor(s) and sub-contractor(s) if the contract award is subject to the provisions of Directive 2014/23/EU, 2014/24/EU or 2014/25/EU or national provisions on public procurement (7)
85 The procurement procedure used, contract amount and eligible expenditure incurred and paid based on a contract if the contract award is subject to the provisions of Directive 2009/81/EC of the European Parliament and of the Council (8)	Not applicable to ERDF, ESF+, Cohesion Fund, JTF or EMFAF
Data on expenditure in each payment claim from beneficiary – only for expenditure based on unit costs
86. Amount of eligible expenditure declared to the Commission on the basis of unit costs
87. Public contribution corresponding to the eligible expenditure declared to the Commission established on the basis of unit costs
88. Definition of a unit to be used for each unit cost
89. Number of units delivered as indicated in the payment claim for each unit item for each unit cost
90. Unit cost for a single unit
Data on expenditure in each payment claim from beneficiary – only for expenditure based on lump sums
91. Amount of eligible expenditure declared to the Commission on the basis of lump sums
92. Public contribution corresponding to eligible expenditure declared to the Commission established on the basis of lump sums
93. For each lump sum, deliverables (outputs or results) in accordance with the document setting out the conditions for support as the basis for disbursement of lump sum payments
94. For each lump sum, the corresponding amount in accordance with the document setting out the conditions for support
Data on expenditure in payment claim from beneficiary – only for expenditure based on flat rates
95. Amount of eligible expenditure declared to the Commission, as well as the flat rate in the document setting out the conditions for support
96. Public contribution corresponding to eligible expenditure declared to the Commission established on the basis of flat rates
Data on expenditure of financial instruments in payment claims by beneficiaries
97. Total amount of programme contribution paid to final recipients in the case of loans, equity and quasi-equity, by product: (a) out of which total amount of Funds contribution, broken down by Fund (b) out of which total amount of national public co-financing (c) out of which total amount of national private co-financing
98. Total amount of programme contributions set aside for guarantee contracts, in accordance with point (b) of Article 68(1): (a) out of which total amount of Funds contribution, broken down by Fund (b) out of which total amount of national public co-financing
99. Total amount of programme contribution corresponding to payments to, or for the benefit of, final recipients where financial instruments are combined with other Union contribution in a single financial instrument operation: (a) out of which total amount of Funds contribution, broken down by Fund (b) out of which total amount of national public co-financing (c) out of which total amount of national private co-financing
100. Information on amount of management costs and fees where bodies implementing a holding fund and/or specific funds are selected through a direct award, distinguishing between: (a) in relation to a holding fund: by financial product operating within the holding fund structure (b) in relation to specific funds (set up either with or without the holding fund structure): by financial product
101. Amount of management costs and fees where bodies implementing a holding fund and/or specific funds are selected through a competitive tender
Data on deductions from the accounts
102. Date and reason for each deduction made in accordance with Article 98(6), as well as information on the type of deduction
103. Amounts of total eligible expenditure affected by each deduction (out of which, amount corrected as a result of audit)
104. Amounts of public contribution affected by each deduction (out of which, amount corrected as a result of audit)
Data on payment applications to the Commission (in EUR)
105. Date of submission of each payment application including eligible expenditure from the operation
106. Total amount of eligible expenditure incurred by the beneficiary and paid in implementing the operation included in each payment application
107. Total amount of public contribution of the operation included in each payment application
108. Only for cases of State aid where advances are paid in accordance with Article 91(5), the amount paid to the beneficiary under the operation as an advance and included in a payment application (date and amount)
109. Only for cases of State aid where advances are paid in accordance with Article 91(5), the amount of the advance included in a payment application which has been covered by expenditure paid by the beneficiary within three years of the payment of the advance
110. Only for cases of State aid where advances are paid in accordance with Article 91(5), the amount paid to the beneficiary under the operation as an advance included in a payment application which has not been covered by expenditure paid by the beneficiary and for which the three-year period has not yet elapsed
111. Only for aid schemes under Article 107 TFEU, amount of public contribution paid to the beneficiary in case of aid schemes, pursuant to Article 91(6) of this Regulation
Data on expenditure in each payment application from the Member State – only for expenditure for which Union contribution under Article 94 is provided
112. For each type of expenditure in a payment application date on which it was paid and type of reimbursement by the Member State to the beneficiary
113. Date and short description of the audits and management verifications carried out by the Member State aiming at verifying that the conditions for reimbursement by the Commission have been fulfilled
114. Only for reimbursement of eligible expenditure under Article 94, amount of eligible expenditure in accordance with the decision referred to in Article 94(2) or the delegated act referred to in Article 94(4), included in each payment application
Data on expenditure in each payment application from the Member State - only for expenditure for which Union contribution under Article 95 is provided
115. Information on the type of reimbursement by the Member State to the beneficiary and what kind of support it takes, as well as the date of reimbursement
116. Date and short description of the audits and management verifications carried out by the Member State aiming at exclusively verifying that the conditions for reimbursement by the Commission have been fulfilled
117. Only for reimbursement of eligible expenditure under Article 95, amount of eligible expenditure in accordance with the decision referred to in Article 95(2) or the delegated act referred to in Article 95(4), included in each payment application
Specific data on payment applications to the Commission (in EUR) for financial instruments
118. Total amount of programme contributions effectively paid, or, in case of guarantees, set aside for guarantee contracts, as eligible expenditure in accordance with Article 92(1)
119. Amount of public contribution effectively paid or, in case of guarantees, set aside for guarantee contracts, as eligible expenditure in accordance with Article 92(1)
120. Total amount of programme contributions paid to financial instrument included in the first payment application
121. Amount of public contribution paid to the financial instrument included in the first payment application
122. Total amount of programme contributions effectively paid or, in the case of guarantees, set aside for guarantee contracts as eligible expenditure, and included in payment applications in accordance with point (b) of Article 92(2)
123. The amount of corresponding public contribution, effectively paid or, in the case of guarantees, set aside for guarantee contracts as eligible expenditure, and included in payment applications in accordance with point (b) of Article 92(2)
Data on accounts submitted to the Commission under point (a) of Article 98(1) (in EUR)
124. The date of submission of each set of accounts, including expenditure linked to an operation
125. Total amount of eligible expenditure of the operation entered into the accounting systems of the body carrying out the accounting function, which has been included in the accounts
126. Total amount of public contribution made or to be made in implementing the operation corresponding to the total amount of eligible expenditure entered into the accounting systems of the body carrying out the accounting function, which has been included in the accounts
127. Total amount of payments paid to the beneficiary corresponding to the total amount of eligible expenditure entered into the accounting systems of the body carrying out the accounting function which has been included in the accounts
128. Total eligible expenditure of the operation withdrawn during the accounting year included in the accounts
129. Total amount of public contribution made or to be made in implementing the operation corresponding to total eligible expenditure of the operation withdrawn during the accounting year included in the accounts
130. Total expenditure of the operation deducted from the accounts under points (a), (b) and (c) of Article 98(6) during the accounting year reflected in the accounts (out of which amounts corrected as a results of audits)
Specific data for financial instruments on accounts submitted to the Commission under point (a) of Article 98(1) (in EUR)
131. Total amount of programme contributions paid to financial instruments included in the first payment application
132. The amount of public contribution paid to financial instrument included in the first payment application
133. Total amount of programme contributions effectively paid or, in the case of guarantees, set aside for guarantee contracts, as eligible expenditure included in the accounts
134. The amount of corresponding public contribution effectively paid or, in the case of guarantees, set aside for guarantee contracts as eligible expenditure included in the accounts
Data on specific types of expenditure
135. Amount of ERDF-type expenditure co-financed by the ESF+ under Article 20(2) paid or to be paid	Not applicable to the ERDF, the Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
136. Amount of ESF+-type expenditure co-financed by the ERDF under Article 20(2) paid or to be paid	Not applicable to the ESF+, the Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
137. Amount of incurred and paid expenditure for land purchase under point (b) of Article 64(1) and the amount linked to land purchase pursuant to 64(1) and, where applicable, the reasons for exceeding the ceilings
138. Amount of in-kind contributions to the operation
139. Amount of depreciation costs for which no payment supported by invoices has been made to the operation
140. Amount of the contribution from the ERDF or, where applicable, an external financing instrument of the Union to a small project Fund within an Interreg programme	Not applicable to the ESF+, the Cohesion Fund, JTF, EMFAF, AMIF, ISF or BMVI
141. Amount of incurred and paid expenditure for operating support under Article 16(1) of the BMVI Regulation (and Article 17(3) of the BMVI Regulation for LT only), Article 16(1) of the ISF Regulation, or Article 21(1) of the AMIF Regulation.	Not applicable to the ERDF, ESF+, the Cohesion Fund, JTF or EMFAF
142. Amount of incurred and paid expenditure for equipment, means of transport or the construction of security-relevant facilities pursuant to Article 13(7) of the ISF Regulation	Not applicable to the ERDF, ESF+, the Cohesion Fund, JTF, EMFAF, AMIF or BMVI
(1) In case of the European territorial cooperation goal (Interreg), beneficiaries shall include the lead beneficiary and other beneficiaries. (2) Beneficiary includes, where applicable, other bodies incurring expenditure under the operation which is treated as expenditure incurred by the beneficiary. (3) Information under this field is only required at the first level of sub-contracting, only where information is recorded on a contractor under field 23, and only for sub-contracts above EUR 50 000 total value. (4) Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1.). (5) Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). (6) Directive 2014/25/EU of the European Parliament and the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243). (7) Information under this field is only required where information is recorded under fields 23 or 24. (8) Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (OJ L 216, 20.8.2009, p. 76).

ANNEX XVIII

I/We, the undersigned (name(s), first name(s), title(s) or function(s)), Head of the managing authority for the programme (name of the programme, CCI)

based on the implementation of the (name of programme) during the accounting year ended 30 June (year), based on my/our own judgment and on all information available to me/us at the date of the accounts submitted to the Commission, including the results from management verifications carried out in accordance with Article 74 of Regulation (EU) 2021/1060 of the European Parliament and of the Council (⁵⁰) and from audits in relation to the expenditure included in the payment applications submitted to the Commission in respect of the accounting year ended 30 June … (year),

and taking into account my/our obligations under Regulation (EU) 2021/1060

hereby declare that:

(a) the information in the accounts is properly presented, complete and accurate in accordance with Article 98 of Regulation (EU) 2021/1060,

(b) the expenditure entered in the accounts complies with applicable law and was used for its intended purpose,

I/We confirm that irregularities identified in the final audit and control reports in relation to the accounting year have been appropriately treated in the accounts, in particular to comply with Article 98 for submitting accounts. I/We also confirm that expenditure which is subject to an ongoing assessment of its legality and regularity has been excluded from the accounts pending conclusion of the assessment, for possible inclusion in a payment application in a subsequent accounting year.

Furthermore, I/we confirm the reliability of data relating to indicators, milestones and the progress of the programme.

I/we also confirm that effective and proportionate anti-fraud measures are in place and that these take account of the risks identified in that respect.

Finally, I/we confirm that I/we am/are not aware of any undisclosed reputational matter related to the implementation of the programme.

ANNEX XIX

To the European Commission, Directorate-General [name of the concerned Directorate(s)-General]

1. INTRODUCTION

I, the undersigned, representing the [name of the audit authority], independent in the sense of Article 71(2) of Regulation (EU) 2021/1060 of the European Parliament and of the Council (⁵¹), have audited

(i) the accounts for the accounting year started on 1 July … [year] and ended 30 June … [year+1]and dated … [date of the accounts submitted to the Commission] (hereafter ‘the accounts’),

(ii) the legality and regularity of the expenditure for which reimbursement has been requested from the Commission in reference to the accounting year (and included in the accounts), and

(iii) the functioning of the management and control system, and verified the management declaration in relation to the programme [name of programme, CCI number] (hereafter ‘the programme’), in order to issue an audit opinion in accordance with point (a) of Article 77(3).

2. RESPONSIBILITIES OF THE MANAGING AUTHORITY

[Name of the managing authority], identified as the managing authority of the programme, is responsible to ensure proper functioning of the management and control system in regard to the functions and tasks provided for in Articles 72 to 75.

In addition, the [name of the managing authority or of the body carrying out the accounting function where relevant], is responsible to confirm the completeness, accuracy and veracity of the accounts, as required in Article 76 of Regulation (EU) 2021/1060 (and Article 46 of Regulation (EU) 2021/1059 of the European Parliament and of the Council (⁵²) ^, (⁵³).

Moreover, in accordance with Article 74 of Regulation (EU) 2021/1060 it is the responsibility of the managing authority to confirm that the expenditure entered in the accounts is legal and regular and complies with applicable law.

3. RESPONSIBILITIES OF THE AUDIT AUTHORITY

As established by Article 77 of Regulation (EU) 2021/1060, my responsibility is to independently express an opinion on the completeness, accuracy and veracity of the accounts, whether expenditure for which reimbursement has been requested from the Commission and which is included in the accounts is legal and regular, and whether the management and control system put in place functions properly.

My responsibility is also to include in the opinion a statement as to whether the audit work puts in doubt the assertions made in the management declaration.

The audits in respect of the programme were carried out in accordance with the audit strategy and complied with internationally accepted audit standards. Those standards require that the audit authority complies with ethical requirements, plans and performs the audit work in order to obtain reasonable assurance for the purpose of the audit opinion.

An audit involves performing procedures to obtain sufficient and appropriate evidence to support the opinion set out below. The procedures performed depend on the auditor's professional judgement, including assessing the risk of material non-compliance, whether due to fraud or error. The audit procedures performed are those that I believe to be appropriate in the circumstances and comply with the requirements of Regulation (EU) 2021/1060.

I believe that the audit evidence gathered is sufficient and appropriate to provide the basis for my opinion, [in case there is any scope limitation:] except those which are mentioned in point 4 ‘Scope limitation’.

The summary of the main findings drawn from the audits in respect of the programme are reported in the attached annual control report in accordance with point (b) of Article 77(3) of Regulation (EU) 2021/1060.

4. SCOPE LIMITATION

Either

There were no limitations on the audit scope.

Or

The audit scope was limited by the following factors:

(a)	…
(b)	…
(c)	…

[N.B. Indicate any limitation on the audit scope, for example any lack of supporting documentation, cases under legal proceedings, and estimate under ‘Qualified opinion’ below, the amounts of expenditure and contribution the support from the Funds affected and the impact of the scope limitation on the audit opinion. Further explanations in this regard shall be provided in the annual control report, as appropriate.]

5. OPINION

Either

(Unqualified opinion)

In my opinion, and based on the audit work performed:

(1) Accounts — the accounts give a true and fair view;

(2) Legality and regularity of the expenditure included in the accounts — expenditure included in the accounts is legal and regular (⁵⁴),

(3) The management and control system in place as at the date of this audit opinion — the management and control system functions properly

The audit work carried out does not put in doubt the assertions made in the management declaration.

Or

(Qualified opinion)

In my opinion, and based on the audit work performed,

(1) Accounts — the accounts give a true and fair view [where the qualification applies to the accounts, the following text is added:] except in the following material aspects: …

(2) Legality and regularity of the expenditure included in the accounts — the expenditure included in the accounts is legal and regular [where the qualification applies to the accounts, the following text is added:] except for the following aspects: … The impact of the qualification is limited [or significant] and corresponds to … (amount in EUR of the total amount of expenditure included in the accounts)

(3) The management and control system in place as at the date of this audit opinion — the management and control system put in place functions properly [where the qualification applies to the management and control system, the following text is added:] except for the following aspects (⁵⁵): …

The impact of the qualification is limited [or significant] and corresponds to … (amount in EUR of the total amount of expenditure included in the accounts).

The audit work carried out does not put/puts [delete as appropriate] in doubt the assertions made in the management declaration.

[Where the audit work carried out puts in doubt the assertions made in the management declaration, the audit authority shall disclose in this paragraph the aspects leading to this conclusion.]

Or

(Adverse opinion)

In my opinion, and based on the audit work performed:

(i) the accounts give/do not give [delete as appropriate] a true and fair view; and/or

(ii) the expenditure included in the accounts for which reimbursement has been requested from the Commission is/is not [delete as appropriate] legal and regular; and/or

(iii) the management and control system put in place functions/does not function [delete as appropriate] properly.

This adverse opinion is based on the following aspects:

— in relation to material matters related to the accounts: and/or [delete as appropriate]

— in relation to material matters related to the legality and regularity of the expenditure included in the accounts for which reimbursement has been requested from the Commission: and/or [delete as appropriate]

— in relation to material matters related to the functioning of the management and control system (⁵⁶):

The audit work carried out puts in doubt the assertions made in the management declaration for the following aspects:

[The audit authority may also include emphasis of matter, not affecting its opinion, as established by internationally accepted auditing standards. A disclaimer of opinion can be envisaged in exceptional cases (⁵⁷).]

Date:

Signature:

---

ANNEX XX

1. Introduction

1.1.Identification of the audit authority and other bodies that have been involved in the preparation of the report.

1.2.Reference period (i.e. the accounting year).

1.3.Audit period (during which the audit work took place).

1.4.Identification of the programme(s) covered by the report and of its/their managing authority/ies. Where the report covers more than one programme or Fund, the information shall be broken down by programme and by Fund, identifying in each Section the information that is specific for the programme and/or the Fund.

1.5.A description of the steps taken to prepare the report and to draw up the corresponding audit opinion.

Section 1.5 is to be adapted for Interreg programmes in order to describe the steps taken to prepare the report based on the specific rules on audits on operations applicable to Interreg programmes as set out in Article 49 of Regulation (EU) 2021/1059 of the European Parliament and of the Council (⁵⁸) (the ‘Interreg Regulation’).

2. Significant changes in management and control system(s)

2.1.Details of any major changes in the management and control systems related to the managing authority's responsibilities, in particular with respect to the delegation of functions to intermediate bodies, to the body to which the accounting function has been entrusted and confirmation of their compliance with Articles 72 to 76 and 81 based on the audit work carried out by the audit authority.

2.2.Information on the application of enhanced proportionate arrangements pursuant to Articles 83, 84 and 85.

3. Changes to the audit strategy

3.1.Details of any changes made to the audit strategy and related explanations. In particular, indicate any change to the sampling method used for the audit of operations (see Section 5) and whether the strategy was subject to changes due to the application of enhanced proportionate arrangements pursuant to Articles 83, 84 and 85.

3.2.Section 1 is to be adapted for Interreg programmes in order to describe changes to the audit strategy based on the specific rules on audits of operations applicable to Interreg programmes as set out in Article 49 of the Interreg Regulation .

4. System audits (where applicable (⁵⁹)

4.1.Details of the bodies (including the audit authority) that have carried out audits on the proper functioning of the management and control system of the programme (‘system audits’).

4.2.A description of the basis for the audits carried out, including a reference to the audit strategy applicable and more particularly to the risk assessment methodology and the results that led to establishing the audit plan for system audits. If the risk assessment has been updated, this should be described in Section 3 covering the changes in the audit strategy.

4.3.In relation to the table in Section 9.1, a description of the main findings and conclusions drawn from system audits, including the audits targeted at specific thematic areas.

4.4.Indications as to whether any irregularities identified were considered to be of a systemic character, details of the measures taken, including a quantification of the irregular expenditure and any related financial corrections made, in accordance with point (b) of Article 77(3) and Article 103.

4.5.Information on the follow up of audit recommendations from system audits from previous accounting years.

4.6.A description of irregularities or deficiencies specific to financial instruments or other types of expenditure or costs covered by particular rules (e.g. State aid, public procurement, simplified cost options, financing not linked to costs), detected during system audits and of the follow up given by the managing authority to remedy these irregularities or deficiencies.

4.7.Level of assurance obtained following the system audits (low/average/high) and a justification.

5. Audits of operations

Sections 5.1 to 5.10 are to be adapted for Interreg programmes in order to describe the steps taken to prepare the report based on the specific rules on audits on operations applicable to Interreg programmes as set out in Article 49 of the Interreg Regulation.

5.1.Identification of the bodies (including the audit authority) that carried out the audits of operations (as envisaged in Article 79).

5.2.A description of the sampling methodology applied and information as to whether the methodology is in accordance with the audit strategy.

5.3.An indication of the sampling parameters and other information for statistical or non-statistical sampling procedures, as well as an explanation of the underlying calculations and professional judgement applied. The information should include: materiality level, confidence level, sampling unit, expected error rate, sampling interval, standard deviation, population value, population size, sample size and information on stratification. The underlying calculations for sample selection, total error rate and residual error rate in Section 9.3, in a format permitting an understanding of the basic steps taken, in accordance with the specific sampling method used.

5.4.A reconciliation between the amounts included in the accounts, as well as the amounts declared in payment applications during the accounting year and the population from which the random sample was drawn (column ‘A’ of table in Section 9.2). Reconciling items include negative sampling units where financial corrections have been made.

5.5.Where there are negative sampling units, confirmation that they have been treated as a separate population. Analysis of the principal results of the audits of these units, namely focusing on verifying whether the decisions to apply financial corrections (taken by the Member State or by the Commission) have been registered in the accounts as withdrawals.

5.6.Where a non-statistical sampling method is used, specify the reasons for using the method, the percentage of sampling units covered by audits, the steps taken to ensure randomness of the sample bearing in mind that the sample has to be representative.

In addition, define the steps taken to ensure a sufficient size of the sample, enabling the audit authority to draw up a valid audit opinion. A total (projected) error rate is also calculated where non-statistical sampling method has been used.

5.7.Analysis of the main findings of the audits of operations, describing:

(a) the number of sampling units audited, the respective amount;

(b) the type of error by sampling unit (⁶⁰);

(c) the nature of errors found (⁶¹);

(d) the stratum (⁶²) error rate and corresponding serious deficiencies or irregularities the upper limit of the error rate, root causes, corrective measures proposed (including those intending to improve the management and control systems) and the impact on the audit opinion.

Further explanations on the data presented in Sections 9.2 and 9.3 shall be provided, in particular concerning the total error rate.

5.8.Details of any financial corrections relating to the accounting year and implemented by the managing authority before submitting the accounts to the Commission, and as a consequence of the audits of operations, including flat rate or extrapolated corrections leading to a reduction to 2 % of the residual error rate of the expenditure included in the accounts pursuant to Article 98.

5.9.Comparison of the total error rate and the residual error rate (as shown in Section 9.2) with the materiality level of 2 %, in order to ascertain if the population is materially misstated and the impact on the audit opinion.

5.10.Details of whether any irregularities identified were considered to be systemic in nature, and the measures taken, including a quantification of the irregular expenditure and any related financial corrections.

5.11.Information on the follow-up of audits of operations carried out in respect of the common sample for Interreg programmes based on the specific rules on audits on operations applicable to Interreg programmes as set out in Article 49 of the Interreg Regulation.

5.12.Information on the follow-up of audits of operations carried out for previous accounting years, in particular on serious deficiencies of systemic nature.

5.13.A table categorising errors identified by type.

5.14.Conclusions drawn from the main findings of the audits of operations with regard to the proper functioning of the management and control system.

Section 5.14 is to be adapted for Interreg programmes in order to describe the steps taken to draw the conclusions based on the specific rules on audits on operations applicable to Interreg programmes as set out in Article 49 of the Interreg Regulation.

6. Audits of accounts

6.1.Identification of the authorities/bodies that have carried out audits of accounts.

6.2.Description of audit approach used to verify that the accounts are complete, accurate and true. This shall include a reference to the audit work carried out in the context of system audits, audits of operations with relevance for the assurance on the accounts and additional verifications to be carried out on the draft accounts before these are sent to the Commission.

6.3.Conclusions drawn from the audits in relation to the completeness, accuracy and veracity of the accounts, including an indication on the corresponding financial corrections made and reflected in the accounts as a follow-up to these conclusions.

6.4.Indication of whether any irregularities identified were considered to be systemic in nature, and of the measures taken.

7. Other information

7.1.Audit authority’s assessment of the cases of suspicions of fraud detected in the context of their audits (and of the cases reported by other national or Union bodies and related to operations audited by the audit authority), together with the measures taken. Information on number of cases, gravity, and the amounts affected, if known.

7.2.Subsequent events occurred after the end of the accounting year and before the transmission of the annual control report to the Commission and considered when establishing the level of assurance and opinion by the audit authority.

8. Overall level of assurance

8.1.Indication of the overall level of assurance on the proper functioning of the management and control system, and an explanation of how the level was obtained from the combination of the results of the system audits and audits of operations. Where relevant, the audit authority shall take also account of the results of other national or Union audit work carried out.

8.2.Assessment of any mitigating actions not linked to financial corrections that were implemented, financial corrections implemented and an assessment of the need for any additional corrective measures, both from the perspective of improvements of the management and control systems and of the impact on the Union budget.

9. ANNEXES TO THE ANNUAL CONTROL REPORT

9.1.Results of system audits.

Audited Entity	Fund (Multi-funds programme)	Title of the audit	Date of the final audit report	Programme: [CCI and name of Programme]	Overall assessment (category 1, 2, 3, 4) [as defined in Table 2 of Annex XI to the Regulation	Comments
Key requirements (as applicable) [as defined in Table 1 of Annex XI
				KR 1	KR 2	KR 3	KR 4	KR 5	KR 6	KR 7	KR 8	KR 9	KR 10
MA
IB(s)
Accounting function (if not performed by the MA)
Note: The blank parts in the table above refer to key requirements that are not applicable to the audited entity.

9.2.Results of audits of operations

Fund	Programme CCI number	Programme title	A	B	C	D	E	F	G	H
Amount in Euros corresponding to the population from which the sample was drawn ()	Expenditure in reference to the accounting year audited for the random sample	Amount of irregular expenditure in random sample	Total error rate ()	Corrections implemented as a result of the total error rate	Residual total error rate	Other expenditure audited ()	Amount of irregular expenditure in other expenditure audited
Amount ()	% ()
(1) Column ‘A’ shall refer to the positive population from which the random sample was drawn, i.e. total amount of eligible expenditure entered into the accounting system of the managing authority/body carrying out the accounting function which has been included in payment applications submitted to the Commission less negative sampling units if any. Where applicable, explanations shall be provided in Section 5.4. (2) The total error rate is calculated before any financial corrections are applied in relation to the audited sample or the population from which the random sample was drawn. Where the random sample covers more than one Fund or programme, the total error rate (calculated) presented in column ‘D’ concerns the whole population. Where stratification is used, further information by stratum shall be provided in Section 5.7. (3) Column ‘G’ shall refer to expenditure audited in the context of a complementary sample. (4) Amount of expenditure audited (in case sub-sampling is applied) only the amount of the expenditure items effectively audited, shall be included in this column). (5) Percentage of expenditure audited in relation to the population.

9.3.Calculations underlying the random sample selection, total error rate and total residual error rate.

ANNEX XXI

1. Introduction

1.1.Identification of the external audit firm that has been involved in preparing the report.

1.2.Reference period (e.g. 01 July N-1 to 30 June N).

1.3.Identification of the financial instrument(s)/mandate(s) and programme(s) covered by the audit report. Identification of the funding agreement to which the report relates to (the ‘Funding agreement’).

2. Audit of internal control systems applied by the EIB/EIF or other international financial institutions

Results of the external audit of the internal control system of the EIB or other international financial institutions (IFIs), in which a Member State is a shareholder, assessing the set-up and effectiveness of this internal control system and covering the following elements:

2.1.Mandate acceptance process.

2.2.Process for the appraisal and selection of financial intermediaries: formal and quality assessment.

2.3.Process for the approval of transactions with financial intermediaries and signature of relevant funding agreements.

2.4.Processes for the monitoring of financial intermediaries relating to:

2.4.1. reporting by financial intermediaries;

2.4.2. maintenance of records;

2.4.3. disbursements to final recipients;

2.4.4. eligibility of support to final recipients;

2.4.5. management fees and costs charged by the financial intermediaries;

2.4.6. visibility, transparency and communication requirements;

2.4.7. implementation of State aid requirements by the financial intermediaries;

2.4.8. differentiated treatment of investors, where relevant;

2.4.9. compliance with applicable Union law related to money laundering, terrorism financing, tax avoidance, tax fraud or tax evasion.

2.5.Systems for the processing of payments received from the managing authority.

2.6.Systems for the calculation and payment of amounts related to management costs and fees.

2.7.Systems for the processing of payments to financial intermediaries.

2.8.Systems for the processing of interest and other gains generated by support from the Funds to financial instruments.

For points 2.1, 2.2 and 2.3, following the submission of the first annual audit report information only on the updates or changes to the procedures or arrangements in place need to be provided.

2.9.For the annual audit report concerning the final accounting year information on the following elements shall be covered in addition to those of points 2.1 to 2.8:

2.9.1. Use of differentiated treatment of investors;

2.9.2. Achieved multiplier ratio compared to the agreed multiplier ratio in the guarantee agreements for financial instruments delivering guarantees;

2.9.3. Use of interest and other gains attributable to the support from the Funds paid to financial instruments in line with Article 60;

2.9.4. Use of resources paid back to financial instruments, which are attributable to the support from the Funds, until the end of the eligibility period and arrangements put in place for the use of those resources after the end of the eligibility period in line with Article 62.

3. Audit conclusions

3.1.Conclusion as to whether the external audit firm can provide reasonable assurance on the set-up and effectiveness of the internal control system put in place by the EIB or other IFIs, in which a Member State is a shareholder, in accordance with the applicable rules, as per the elements referred to in Section 2.

3.2.Findings and recommendations resulting from the audit work carried out.

Points 3.1 and 3.2 shall be based on the results of the audit work referred to in Section 2 and, where relevant, take account of the results of other national or Union audit work carried out in relation to the same body implementing financial instruments or to the same mandate for financial instruments.

ANNEX XXII

1. INTRODUCTION

(a) Identification of the programme(s) (title(s) and CCI(s) numbers (⁶³), Funds and period covered by the audit strategy.

(b) Identification of the audit authority responsible for drawing up, monitoring and updating the audit strategy and of any other bodies that have contributed to this document.

(c) Reference to the status of the audit authority (national, regional or local public body) and the body in which it is located.

(d) Reference to the mission statement, audit charter or national legislation (where applicable) setting out the functions and responsibilities of the audit authority and other bodies carrying out audits under its responsibility.

(e) Confirmation by the audit authority that the bodies carrying out audits have the requisite functional and organisational independence.

2. RISK ASSESSMENT

(a) explanation of the risk assessment method followed; and

(b) internal procedures for updating the risk assessment.

3. METHODOLOGY

3.1.   Overview

(a) Reference to the internationally accepted audit standards that the audit authority will apply for its audit work.

(b) Information on how the audit authority will obtain its assurance with regard to programmes in the standard management and control system and for programmes with enhanced proportionated arrangements (description of main building blocks - types of audits and their scope).

(c) Reference to the procedures in place for drawing up the annual control report and audit opinion to be submitted to the Commission in accordance with Article 77(3) of this Regulation, with the necessary exceptions for Interreg programmes based on the specific rules on audits on operations applicable to Interreg programmes as set out in Article 49 of the Interreg Regulation.

(d) Reference to audit manuals or procedures containing the description of the main steps of the audit work, including the classification treatment of the errors detected in the preparation of the annual control report to be submitted to the Commission in accordance with point (b) of Article 77(3).

(e) For Interreg programmes, reference to specific audit arrangements and explanation on how the audit authority intends to ensure cooperation with the Commission regarding the audits of operations under the common Interreg sample to be drawn by the Commission set out in Article 49 of the Interreg Regulation.

(f) For Interreg programmes, when additional audit work may be required as set out in Article 49 of Regulation the Interreg Regulation (reference to specific audit arrangements in that respect and to the follow up of that additional audit work).

3.2.   Audits on the proper functioning of management and control systems (system audits)

Identification of the bodies/structures to be audited, as well as the relevant key requirements in the context of system audits. The list shall include any bodies that have been appointed in the last twelve months.

Where applicable, reference to the audit body on which the audit authority relies to perform these audits.

Indication of any system audits targeted at specific thematic areas or bodies, such as:

(a) quality and quantity of the administrative and on-the-spot management verifications in respect of applicable law such as public procurement rules, State aid rules or environmental requirements;

(b) quality of project selection and of management verifications at the level of the managing authority or intermediate body;

(c) set-up and implementation of financial instruments at the level of the bodies implementing financial instruments;

(d) functioning and security of electronic systems, and their connection with the electronic data exchange system of the Commission;

(e) reliability of data related to targets and milestones and on the progress of the programme in achieving its objectives provided by the managing authority;

(f) financial corrections (and deductions from the accounts);

(g) implementation of effective and proportionate anti-fraud measures underpinned by a fraud risk assessment.

3.3.   Audits of operations

(a) Description of (or reference to internal document specifying) the sampling methodology to be used in line with Article 79 (and other specific procedures in place for audits of operations, namely related to the classification and treatment of the errors detected, including suspected fraud).

(b) A separate description shall be proposed for years when the Member States chooses to apply the enhanced proportionate system for one or more programmes as set out in Article 83.

(a) Description of (or reference to internal document specifying) the treatment of findings and errors to be used in line with Article 49(1) of the Interreg Regulation and other specific procedures in place for audits of operations, namely related to the common Interreg sample to be drawn up by the Commission each year.