1. Amending the Performance Framework
ESF Technical Working Group Brussels, 17 April 2018

2. Overview of the presentation
I. Amending the performance framework
The rules
Typology of justifications
Deadline and procedures for amending the PF
II. The performance review
What is it?
How does it work?
Application of the performance framework : suspension of interim payments following the performance review

3. I. Amending the Performance Framework

4. 1. The rules : Annex II CPR, point 5
Milestones and targets can be changed if:
there is a change in the allocation for a given priority
In duly justified cases: 2 examples in the regulations:
a significant change in the economic , environmental and labour market conditions (Annex II, point 5 CPR);
the assumptions of the method used to select indicators or set targets and milestones have been found to be incorrect (CIR 215/2014)
NOT justified is the request for revision if it only aims to align milestones and targets with actual performance.

5. 2. Typology of justifications
Change in policy: e.g. change of the target group, the type of actions, the sequence of actions
Wrong assumptions: e.g. unit costs, duration of the action, calculation of the N+3 target
Significant change in economic or labour market conditions
Low level of implementation is not a justification

6. 3. Deadline & procedure for amending PF (1)
No legal deadline
But MS are recommended to request an amendment of the PF not later than 30 June 2018
The OP amendment needs to be approved by the monitoring committee
MS needs to justify the amendment request (Art. 30 CPR)(a change in the allocation or a duly justified case and which one) and explain the changes of (the values for) the indicators.

7. 3. Deadline & procedure for amending PF (2)
COM may ask the MS to provide the information on the methodologies and criteria for selecting the indicators and fixing the milestones and targets which the bodies preparing programmes and their amendments have to record (Art. 4 CIR 215/2014):
data or evidence used to estimate the value of milestones and targets and the calculation method
information on the share of the financial allocation represented by operations, to which the output indicators and key implementation steps set out in the performance framework correspond, as well as the explanation of how that share has been calculated
an explanation of the selection of result indicators or key implementation steps, when included in the PF

8. II. Performance Review

9. Performance review
What ? Assessment of the achievement of milestones of the priorities of the programmes on the basis of the info + assessments in AIR
How many ? One performance review
When ? 2019 following receipt AIR ( )
Possible implications of the review:
Allocation/reallocation of the PR
Suspension of interim payments

10. Perform. Review – How does it work?(1)
MS submits AIR by
If MS does not provide the info: no allocation of PR to the programmes and priorities concerned
COM to assess whether a priority has achieved its milestones
In case of ‘complex’ priorities (more than 1 ESI Fund, more than one category of region): assessment to be broken down by ESI Fund and by category of region; YEI to be assessed separately

11. Perform. Review – How does it work?(2)
When has a priority achieved its milestones? (Art. 6(2) CIR 215/2014)
-> if 2 indicators in the PF: both indicators achieve at least 85% of the milestone value
-> if 3 or more indicators in the PF: all indicators except one achieve at least 85% of the milestone value and the other achieves at least 75% of the milestone value

12. Perform. Review – How does it work?(3)
Commission decision determining for each ESI Fund and MS the programmes and priorities that have achieved their milestones – deadline: 2 months following receipt AIR
Milestones achieved: amount of PR established for the priority= definitively allocated
Milestones not achieved: reallocation to priorities that have achieved milestones

13. Perform. Review – How does it work?(4)
Reallocation:
MS to propose reallocation of the corresponding amount PR to priorities having achieved their milestones (as set out in COM Decision) + other amendments resulting from reallocation – deadline: 3 months after COM decision
Need to respect thematic concentration requirements and minimum allocations, unless….(Art. 22(5) CPR)
COM to approve amendment (procedure for OP modification – Art. 30(2) and (4) CPR)

14. Application of the performance framework : suspension of interim payments following the performance review (1)
Serious failure to achieve milestone
Only for financial and output indicators and key implementation steps
Serious failure is due to clearly identified implementation weaknesses
COM has previously communicated implementation weaknesses to MS (ex Art. 50(8)CPR):
MS failed to take corrective action
Suspension cannot be earlier than 5 months after such communication

15. Application of the performance framework : suspension of interim payments following the performance review (2)
Serious failure - defined in CIR 215/2014 (Art. 6(3) and (4):
If 2 indicators in the PF : any of the output or financial indicators or key implementation steps failed to attain at least 65% of the milestone value
If more than 2 indicators in the PF: at least 2 of the output or financial indicators or key implementation steps failed to attain at least 65% of the milestone value
Lifting of suspension when MS has taken corrective action

16. THANK YOU FOR YOUR ATTENTION !