Monitoring of financial instruments and provision of monitoring information to the Commission under the Annual and Final implementation reports António Gonçalves Directorate General for Regional and Urban Policy

Relevant CPR provisions Provisional text based on the most recent Presidency compromise, without prejudice to the on-going negotiations and the proposed amendments on the draft model for the annual and final implementation reports. Empowerment: Article 40(3) of the CPR- implementing act setting out uniform conditions concerning the monitoring and provision of monitoring information to the Commission, including in respect of financial instruments referred to in Article 33(1)(a). Other relevant legal provisions: CPR, Article 40(2) specific detailed information for reporting on financial instruments; Article 44(2) information on implementation of the programme and its priorities; Article implementation report for the investment for growth and jobs goal.

Main objectives and scope of the implementing act -Set out uniform conditions for the monitoring of financial instruments by managing authorities and reporting of the monitoring information to the Commission. -Aim to provide complete and coherent monitoring information to the Commission, presented in a consistent way to allow comparison and aggregation of the information. -Simplify the reporting process: reporting templates included as an annex to the annual and final implementation reports combine financial instruments referred to in Article 33(1)(a) and (b). -Allows the Commission to fulfil reporting obligations towards Member States (Article 40(4)), budgetary and control authorities and to Citizens regarding delivery of ESI Funds budgetary resources through financial instruments

Main elements of the reporting template (1) The reporting template follows the requirements of Article 40(2) and is in line with similar reporting obligations imposed on the Commission by Article 140(8) of the Financial Regulation. Reference to the relevant article is made in each section. The reporting model is attached as an annex to the models of annual/final implementation reports of the ESI Funds programmes. The structure of the reporting template for will be similar to the reporting models used for ERDF and ESF programmes under the programming period The model may be adapted to EAFRD and EMFF, according to the specific regulations of those Funds.

Main elements of the reporting template (2) Following the logic of paragraphs (a) to (h) of Article 40(2), the model is divided into 11 sections: "Introductory" section and 10 sections numbered from I to X. Each field has specific technical characteristics, including the format of the data (text or number) and the input method (selection of one or several predefined inputs or filling in with input. Introductory section: refers to overall information on the number of financial instruments implemented under the respective programme, with a distinction for: −instruments set up at Union level and those, which are set up at national/ regional/ transnational or cross-border level and −off-the-shelf and tailor-made instruments.

Main elements of the reporting template (3) Section I: identification of the financial instrument (or fund of funds where applicable) – Article 40(2)(b) – justified as a first and separate section because each financial instrument may include contributions from more than one programme and more than one priority axis. Section II: identification of the programme(s) and of the priority axes/measures from which support to financial instruments is provided - Article 40(2)(a). Section III: description of the implementation - Article 40(2)(b). Section IV: identification of the bodies implementing financial instruments (and funds of funds where applicable) as well as the financial intermediaries - Article 40(2)(c).

Main elements of the reporting template (4) Section V: refers to the total amount of ESI Funds programme contributions actually paid to the financial instrument in relation to contributions committed in funding agreements - Article 40(2)(d). Section VI: refers to the total amount of programme support paid by the financial instrument to final recipients, or committed in guarantee contracts - Article 40(2)(e). Section VII: performance of the financial instrument namely, investments realised, ex-ante assessments completed, financial intermediaries selected and number of funding agreements already signed, investments realised, defaults, value of equity investments. This section complies with the requirements of Article 44 (2).

Main elements of the reporting template (5) Section VIII: information on repayments, revenues and other earnings generated by support from the ESI Funds to the financial instrument and amounts re-invested by the financial instrument - Article 40(2)(f). Section IX: progress in achieving the expected leverage effect, including other amounts than ESI Funds programme(s) contributions paid to the financial instruments - Article 40 (2) (g). Section X: -contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned - Article 40 (2) (h).

Main changes compared to The proposed monitoring and reporting template specific to financial instruments is transposed from the template already in use, with a number of improvements to make it more complete and technically robust. Information in paragraphs (g) and (h) are mandatory only for years 2017 and 2019, as well as in the final implementation report. The reporting information included in the template as required by Articles 40(2) and 44(2) of the CPR is consistent with the reporting obligations imposed upon the Commission by Article 140(8) of the Financial Regulation. Without this information the Commission would not be in a position to comply with its obligations under the CPR, the Financial Regulation and its general obligations regarding the sound and transparent use of the EU budget resources.

Written comments can be sent until 19 April to: REGIO-DELEGATED-AND-IMPLEMENTING-