Delegated and Implementing Acts Cohesion policy Evaluation Partnership meeting Brussels, 12 November 2013

Overview of the presentation I. Delegated (DA)/Implementing act (IA) II. Preparation DA/IA before/after entry into force Common Provisions Regulation III. Some delegated and implementing acts relevant for monitoring and evaluation

I. Delegated v. implementing act (1) Delegated act: Art. 290 TFEU Non-legislative acts of general application to supplement or amend certain non-essential elements of the legislative act The objectives, content, scope and duration of the delegation of power to be explicitly defined in the legislative acts. Council and EP can object within a period set in the legislative act Implementing act: Art. 291 TFEU: Where uniform conditions for implementing legally binding Union acts are needed, those acts shall confer implementing powers on the Commission Article 290 A legislative act may delegate to the Commission the power to adopt non-legislative acts of general application to supplement or amend certain non-essential elements of the legislative act. The objectives, content, scope and duration of the delegation of power shall be explicitly defined in the legislative acts. The essential elements of an area shall be reserved for the legislative act and accordingly shall not be the subject of a delegation of power. 2. Legislative acts shall explicitly lay down the conditions to which the delegation is subject; these conditions may be as follows: the European Parliament or the Council may decide to revoke the delegation; the delegated act may enter into force only if no objection has been expressed by the European Parliament or the Council within a period set by the legislative act. For the purposes of (a) and (b), the European Parliament shall act by a majority of its component members, and the Council by a qualified majority. 3. The adjective ‘delegated’ shall be inserted in the title of delegated acts. Article 291 1. Member States shall adopt all measures of national law necessary to implement legally binding Union acts. 2. Where uniform conditions for implementing legally binding Union acts are needed, those acts shall confer implementing powers on the Commission, or, in duly justified specific cases and in the cases provided for in Articles 24 and 26 of the Treaty on European Union, on the Council. 3. For the purposes of paragraph 2, the European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall lay down in advance the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers. 4. The word ‘implementing’ shall be inserted in the title of implementing acts.

I. Delegated v. implementing act (2) Implementing act: Art. 291 TFEU - Subject to comitilogy – Regulation n° 182/2011 Examination procedure : qualified majority Examination procedure – no opinion, no action Advisory procedure: opinion, if vote: simple majority component members Coordination Committee for the ESI Funds (COESIF committee – former COCOF) - competent for: Common Provisions Regulation (CPR) European Social Fund (ESF) European Regional Development Fund (ERDF) Cohesion Fund European Territorial Cooperation

II. Preparation of DA and IA (1) – Before entry into force CPR Expert group meetings on: Delegated acts Implementing acts Guidance documents All documents and presentations are available on: http://ec.europa.eu/regional_policy/what/future/experts_documents_en.cfm#3

II. Preparation of DA and IA (2) – After entry into force CPR Depending on the urgency for adoption of the act : 1st, 2nd and 3rd priority acts: see list of empowerments for cohesion policy (mainly CPR) For ESF: DA on simplified cost options

III. Some DA and IA relevant for monitoring and evaluation Model for the OP (IA) Performance framework: arrangements to ensure a consistent approach for determining milestones and targets and for assessing the attainment of the milestones and targets (IA) Performance framework: criteria for financial corrections (DA) Data to be recorded and stored in computerised form (DA) Model for the annual and final implementation report (IA) Model for the progress report (IA)

1. Model for the Operational Programme (OP) (IA – advisory procedure) (1) Description of the priority axis: By investment priority (IP) Specific objectives and expected results Type and examples of actions Result and output indicators for ESF – broken down by category of region: common indicators with target (broken down by gender or total) and programme specific indicators

1. Model for the Operational Programme (OP) (IA – advisory procedure) (2) Performance framework for the priority axis Broken down by Fund Broken down by category of region Key implementation steps, financial indicators, output indicators and where appropriate result indicators Indicators are set at IP level, but the indicators for the performance framework have to be aggregated Indicators and implementation steps must be representative for the priority axis Milestones for 2018 and targets for 2023

2. Performance framework (PF): arrangements to ensure a consistent approach for determining milestones and targets and for assessing their attainment (IA – examination procedure: no opinion, no action) Main elements of the IA: Arrangements for documentation of the establishment of milestones and targets Basic requirements for different types of indicators Arrangements for determining milestones and targets Arrangements for the verification of the attainment of milestones and targets

2.1. Arrangements for documentation of the establishment of milestones and targets Methodologies and criteria to select indicators for the performance framework ensuring that milestones and targets comply with criteria of Annex II, § 3 CPR Data or evidence used to estimate the value of milestones and targets and the calculation method Rationale for the selection of output indicators, including an explanation of the share of the financial allocation represented by the operations, which will produce the outputs + method to calculate the share which must represent more than 50% of the financial allocation to the priority Info on how the methodology and mechanisms to ensure consistency in the PF has been applied in accordance with the provisions of the Partnership Agreement For result indicators and key implementation steps: rationale for their selection ANNEX II, point 3 Milestones and targets shall be – realistic, achievable, relevant, capturing essential information on the progress of a priority; – consistent with the nature and character of the specific objectives of the priority; – transparent, with objectively verifiable targets and the source data identified and, where possible, publicly available; – verifiable, without imposing a disproportionate administrative burden; – consistent across operational programmes, where appropriate. a) data or evidence (e.g. unit costs, benchmarks, standard or past rate of implementation, expert advice, conclusions of ex-ante evaluation) used to estimate the value of milestones and targets and the calculation method; b) rationale for selection of output indicators, including an explanation of the share of financial allocation represented by operations, which will produce the outputs, as well the method applied to calculate the share, which must exceed 50% of the financial allocation to the priority. In the case of priorities concerning more than one Fund (the ERDF, ESF and CF) or the YEI or more than one category of region, the rationale for the selection of output indicators has to be available by Fund or YEI and by category of region. The share represented by the operations has to exceed 50% of the financial allocation by Fund or YEI and by category of region; c) information on how the methodology and mechanisms to ensure consistency in the functioning of the performance framework have been applied in line with the provisions of the Partnership Agreement.

2.2. Requirements for indicators and key implementation steps Milestones and targets (M&T) are to be set at the level of the priority In case of multi-fund and/or multi-category of regions priority axes: breakdown by Fund and by category of region For financial indicators: M&T refer to the total amount of eligible expenditure entered into accounting system of the certifying authority and certified by the authority For ESF output indicators M&T refer to the achieved value for fully or partially implemented operations Key implementation steps refer to an important stage in the delivery of a priority, whose completion is verifiable and may be expressed as a number or a percentage. Result indicators are used where appropriate and are to be closely linked to the supported policy interventions. In case of YEI implemented as part of a priority axis: YEI is to be considered as a separate Fund (no need for a breakdown by category of region). A fully implemented operation is an operation, which has been completed, but for which not necessarily all the related payments have been made by the beneficiaries or the corresponding public has been paid to the beneficiaries. A partially implemented operation is an operation, for which the implementation has started, but which has not yet been fully implemented. The key implementation step shall refer to an important stage in the delivery of a priority, whose completion is verifiable and may be expressed by a number or percentage. A key implementation step shall be used as a milestone in a situation where no measurable output is expected by the end of 2018 and shall not be used as target. A key implementation step may be used if the outputs by the end of 2018 are expected to be insignificant, in which case it may refer to the number of selected operations that are to deliver such outputs by the end of programming period.

2.3. Arrangements for determining milestones and targets Financial indicators - milestones: Not lower than what is required to avoid de-commitment by end of 2018 + corresponding contribution MS and Not higher than the cumulative allocation 2014-2018 + corresponding contribution MS (without performance reserve) Financial indicators - targets: Not lower than the cumulative allocation 2014-2020 + corresponding contribution MS (including performance reserve) Any other indicator: M&T based on relevant financial allocation, timeframe of intervention, form of support, type of action, size and character of target group, and, where available, the historical data such as unit costs or benchmarks. Expert advice, including the result of the ex-ante evaluation, may be used to complement other sources of information. 3. The method for calculation of milestones and targets for any indicator other than the financial indicator, shall, take into account the relevant financial allocation, the timeframe of intervention, the form of support, the type of action, the size and character of target group, and, where available, the historical data such as unit costs or benchmarks. Expert advice, including the result of the ex-ante evaluation, may be used to complement other sources of information. The data used for the basis of this calculation and the process shall be documented by the managing authority. 4. The calculation method used to set the milestones shall not take into account the financial allocation set aside as the performance reserve. The setting of targets shall take into account the amount of performance reserve.

2.4. Arrangements for the verification of the attainment of milestones and targets To be assessed at the level of the priority axis In case of multi-fund and/or multi-category of regions priority axes: assessment by Fund and by category of region Achievement of milestone/target: all indicators of the performance framework of the priority axis have attained at least 85% of milestone (2018) or target (2023) value. Serious failure to achieve M&T: Max 2 indicators/priority axis: any of the output or financial indicators failed to attain at least 65% of the milestone/target value More than 2 indicators/priority: at least 2 of the output or financial indicators failed to attain at least 65% of the milestone/target value

3. Performance framework: criteria for financial corrections (DA) (1) 3.1. Conditions for applying financial corrections at the end of the programming period on the basis of the final implementation report: Serious failure to achieve targets liked to financial indicators or output indicators Max 2 indicators/priority: any of the indicators failed to attain at least 65% of target value More than 2 indicators/priority: at least 2 of the indicators failed to attain at least 65% of target value

3. PF: criteria for financial corrections (DA) (2) Serious failure is due to a clearly identified implementation weakness Commission has previously communicated to the Managing Authority the clearly identified implementation weakness MS failed to take the necessary corrective action No socio-economic or environmental factors, no significant changes in the economic or environmental conditions in a MS or no force majeure seriously affecting the implementation of the priorities concerned preventing the achievement of targets

3. PF: criteria for financial corrections (DA) (3) 3.2. Level of financial corrections: Flat rate dependent on the achievement / absorption coefficient Applied to all expenditure charged to the Funds after deduction of the amounts refused further to any prior financial correction Achievement/absorption coefficient Rate of financial corrections Not less than 65% Below 65% but no less than 60% 5% Below 60% but no less than 50% 10% Below 50% 25%

3. PF: criteria for financial corrections (DA) (4) Method for calculation of the achievement/absorption coefficient: Final achievement rate output indicator = achieved value output indicator/target value, but max 100% Calculation of average final achievement rate for all output indicators Final achievement rate financial indicator: idem as for output indicator Average of final achievement rate for all output indicators/final achievement rate financial indicator= achievement/absorption coefficient Other external factors contributing to failure: may justify a lower rate of correction, up to 50%

4. Data to be recorded and stored in computerised form (DA) (1) Art. 114(2)(d) CPR: MA to establish a system to record and store in computerised form data on each operation necessary for monitoring, evaluation, financial management, verification and audit, including data on individual participants in operations, where applicable Objective DA: determine the minimum data necessary to be maintained in computerised form Minimum requirements: up to MA/MS to record and store additional data (e.g. to facilitate electronic data exchange with beneficiaries)

4. Data to be recorded and stored in computerised form (DA) (2) Main elements of the DA Definition of data to be recorded and stored in computerised form within the monitoring system Minimum rules on the nature of data recorded and stored Rules on the protection of individuals with regard to the processing of personal data linked to individual participants There is also an empowerment for an IA: technical specifications of the system

4.1. Definition of data to be recorded and stored in computerised form Some of the data is relevant only for particular types of operations or individual Funds There are specific requirements for the recording and storage of data on individual participants In case an operation is supported by more than one OP, priority, Fund or under more than 1 category of region, some info has to be broken down by OP, priority, Fund or category of region (see fields 46-139) Some indicator data has to be broken down by investment priority and by gender (where applicable)- see fields 46-55 ANNEX VIa CPR Point 3(A)(iv): Procedures for a system to collect, record and store in computerised form data on each operation, including, where appropriate, data on individual participants and a breakdown of data on indicators by gender when required, and to ensure that systems security is in line with internationally accepted standards.

4.2. Minimum rules on the nature of data recorded and stored Nature and format of the data must: Allow for its aggregation where this is necessary (financial data, payment applications, accounts, annual and final implementation reports) Allow for aggregation cumulatively for the entire programming period For ESF the data is to be recorded and stored in a way that allows MA to perform the tasks related to M&E in conformity with the requirements set out in CPR and ESF Regulation.

4.3. Rules on the protection of individuals with regard to the processing of personal data MA (data controllers) are to ensure adequate safeguards for the protection of individuals with regard to the personal data Need to respect Directive 95/46/EC + nat. legislation: e.g. special categories of data considered sensitive (Art. 8) respect of the individual’s right to information (Art. 10-11), right to access (Art. 12) and right to object (Art. 14-15) notify national supervisory authority of the processing of sensitive data (Art. 18-19) need to ensure the respect of the principle of data quality (Art. 6): not to process data on individual participants for other purposes than compliance with Art. 114(2)(d) CPR. Managing authorities will be deemed as data controllers and therefore should ensure adequate safeguards for the protection of individuals with regard to the personal data recorded and stored. Managing authorities should, in particular: Ensure that national data protection laws regarding the processing of special categories of data considered sensitive data, as defined by Article 8 of Directive 95/46/EC and the national legislation implementing it, are respected; Ensure that data subjects’ rights are duly respected and in particular with reference to the right to information referred to in Articles 10 and 11 of Directive 95/46/EC, the right to access referred to in Article 12 of Directive 95/46/EC, the right to object referred to Articles 14 and 15 of Directive 95/46/EC, and national legislation implementing these provisions; Ensure the respect of the principle of data quality, as required under Article 6 of Directive 94/35/EC and national legislation implementing it. In particular the managing authorities should not process the data on individual participants for purposes other than complying with the requirements set out in Article 114 (2)(d) of the Common Provisions Regulation. Managing authorities shall take measures to ensure that the data are accurate and, where relevant, kept up to date and that maximum periods for the retention of personal data are set. Notify the national supervisory authority of the processing of sensitive data as required in Articles 18 and 19 of Directive 95/46/EC and national legislation implementing it. Implement appropriate technical and organizational measures to ensure confidentiality and protect personal data against accidental or unlawful destruction or accidental loss, alteration, unauthorized disclosure or access, in particular where the processing involves the transmission of data over a network, and against all other unlawful forms of processing as required under the provisions of Articles 16 and 17 of Directive 95/46/EC and national legislation implementing them. Apply other measures where required in national data protection legislation, seeking, where appropriate, advice from the national data protection authorities on how to ensure adequate respect of national data protection legislation implementing Directive 95/46/EC when processing personal data. Respective requirements will be included in the delegated act.

5. Annual and final implementation reports (IA) (1) Model for AIR and final report follows requirements of Art. 44 CPR, 101 CPR and Art. 15(iv) ESF Regulation Reports to be filled out in SFC : IA defines technical characteristics of each filed Model comprises 3 parts: Part A: light reports: to be provided in all years (May - 2016 to 2023) Part B:additional info to be provided in 2017, 2019 and final report (31.12.2024) Part C: additional info to be provided in 2019 and final report In case of max 1 OP/cohesion policy Fund: option to include info in Progress report (on Partnership Agreement)

5. Annual and final implementation reports (IA) (2) Part A – Every year Overview of the implementation of the OP Implementation of the priority axis: Result and output indicators: by investment priority, Fund and category of region Common result indicators for ESF (with and without target) – Table 2A Common result indicators for YEI – Table 2B (not by category of region) Programme specific result indicators for ESF – Table 2C Common output indicators for ESF – Table 4A Programme specific output indicators for ESF – Table 4B

5. Annual and final implementation reports (IA) (3) Implementation of the priority axis (continued): Performance framework: milestones and targets : from 2017 onwards Financial data: generated automatically by SFC based on info provided by MS in accordance with Art. 102 CPR Tables on the use of cross-financing and on operations implemented outside the programme area Synthesis of evaluations Information on Youth Employment Initiative (YEI) Issues affecting performance of OP + measures taken Citizen's summary Report on implementation of financial instruments Actions taken to fulfil ex-ante conditionalities (optional for 2016 – NA for other reports) Joint Action Plans: progress in implementation Art. 102 CPR 1. By 31 January, 31 July and 31 October, the Member State shall transmit electronically to the Commission for monitoring purposes, for each operational programme and by priority axis: (a) the total and public eligible cost of the operations and the number of operations selected for support; (c) the total eligible expenditure declared by beneficiaries to the managing authority. 2. In addition, the transmission made by 31 January shall contain the above data broken down by category of intervention. This transmission shall be considered to fulfil the requirement for the submission of financial data referred to in Article 44(2).

5. Annual and final implementation reports (IA) (4) Part B – 2017, 2019 and final report Assessment of the implementation of the OP including assessment of the info in Part A and progress towards achieving the objectives of the OP, assessment of the implementation of actions to take into account the role of partners, the specific actions to promote equality between men and women and prevent discrimination, … Progress in the implementation of the evaluation plan and follow-up given to the findings of evaluations Results of the information and publicity measures of the Funds (communication strategy) Actions taken to fulfil ex-ante conditionalities (2017) (option: progress report) Additional info depending on content of OP 14.1 Progress in implementation of the integrated approach to territorial development, including development of regions facing demographic challenges and permanent or natural handicaps, sustainable urban development, and community led local development under the operational programme (option progress report) 14.2 Progress in implementation of actions to reinforce the capacity of Member State authorities and beneficiaries to administer and use the Funds 14.3 Progress in implementation of any interregional and transnational actions 14.4 Where appropriate, an overview of the contribution to macro-regional and sea basin strategies. 14.5 Progress in the implementation of actions in the field of social innovation, where appropriate 14.6 Progress in the implementation of measures to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of poverty discrimination or social exclusion, with special regard to marginalised communities and persons with disabilities, long term unemployment and young people not in employment including, where appropriate, the financial resources used Reference point: Section 5 of OP model

5. Annual and final implementation reports (IA) (5) Part C – 2019 and final report Information on and assessment of OP contribution to achieving the Europe 2020 Strategy Issues affecting the performance of the OP and measures taken – performance framework Youth Employment Initiative: main findings of evaluations assessing the effectiveness, efficiency and impact of the support and implementation of the Youth Guarantee 15. SMART, SUSTAINABLE AND INCLUSIVE GROWTH Information on and assessment of the programme contribution to achieving the Union strategy for smart, sustainable and inclusive growth. 16. ISSUES AFFECTING THE PERFORMANCE OF THE PROGRAMME AND MEASURES TAKEN – PERFORMANCE FRAMEWORK (Article 44(2) CPR) Where the assessment of progress made with regard to the milestones and targets set out in the performance framework demonstrates that certain milestones and targets have not been achieved, Member States should outline the underlying reasons for failure to achieve these milestones in the report of 2019 (for milestones) and in the final implementation report (for targets). 17. YOUTH EMPLOYMENT INITIATIVE (ESF Regulation Art. 15(iv)(4) (where applicable) The main findings of evaluations assessing the effectiveness, efficiency and impact of support from the European Social Fund and the specific allocation for YEI and implementation of the Youth Guarantee.

6. Progress report (IA) (1) Implementation of Partnership Agreement – all 5 ESI Funds Due by 31 August 2017 and 31 August 2019 Model follows requirements of Art. 46 CPR, 101 CPR and Art. 15(iv) ESF Regulation Reports to be filled out in SFC : IA defines technical characteristics of each filed Model comprises 5 parts: Part I: for all ESI Funds Part II: YEI Part III: cohesion policy Part IV: YEI (only in 2019) Part V: cohesion policy (only in 2019) Parts III to V : only in case use is made of option in Art. 101(3) CPR

6. Progress report (IA) (2) Part I: for all ESI Funds : inter alia Changes in the development needs in MS since the adoption of the Partnership Agreement Progress towards achievement of Europe 2020 Strategy, of fund-specific missions, of milestones set out in the performance framework (in 2019 : tables by programme and by thematic objective) Fulfilment of ex-ante conditionalities (only for 2017) Implementation of mechanisms to ensure coordination Role of partners in PA implementation

6. Progress report (IA) (3) Part II: for YEI General description on the implementation of YEI, including how YEI has contributed to the implementation of the Youth Guarantee Description of any problems and measures taken Assessment of the implementation of YEI with regards to objectives and targets set and contribution to implement the Youth Guarantee Part IV: for YEI Description of main findings of the evaluation ex Art. 15(iv)(6) ESF Regulation

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