1. Timing
June : Negotiations with Council and EP: modification of the Financial Regulation subject to ordinary legislative procedure
End 2011: Planned adoption of FR
January 2012 : Planned entry into force of FR

2. Purposes of the changes affecting Cohesion policy (I)
Accountability of Member States will be reinforced in line with Art. 317 TFEU:
(…) Member States shall cooperate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management. (…)
The (F) regulations shall lay down the control and audit obligations of the Member States in the implementation of the budget and the resulting responsibilities. (…)

3. Purpose of the change affecting Cohesion policy (II)
The Commission’s assurance of the management of Structural Funds will be reinforced
The reliance that can be put on Member States’ systems will be strengthened

4. Purposes of the changes affecting Cohesion policy (III)
Alignment of shared management procedures in different policy areas
Choice of best practices from policy specific legislations
Introduction of a tolerable risk of error to have controls adjusted to the level of risks and costs

5. Responsibilities of Member States
Accreditation by MS of a body responsible for proper management and control of EU funds
Accreditation criteria set out in sector specific rules
Possibility for a supervisory role of the Commission

6. Accredited body
Responsibility for proper management and control of EU funds.
Before 1 February year ‘n’:
Submission of a management declaration subject to an independent audit opinion covering for the whole payments of year ‘n-1’
Regularity of accounts
Proper functioning of the internal control system
Legality and regularity of underlying transactions
Submission of summary of audits and controls
Submission of annual accounts

7. Responsibilities of the Commission
Timely clearance of accounts to check their completeness, accuracy and truth
Timely clearance of irregularity cases
Suspension (by the Commission) and interruption (by the AOD) of payments.

8. Tolerable risk of error
A tolerable risk of error will be established by the legislator for each policy, balancing the cost of controls and the risks entailed