1. Draft Delegated Act Financial corrections linked to the performance framework (Art. 20 of CPR) As amended after expert meeting on October 24, 2013
Veronica Gaffey & Jan Marek Ziółkowski
Evaluation & European Semester Unit
DG for Regional and Urban Policy
Cohesion Policy

2. We have received comments from 16 Member States.
20% of comments concerned the draft Delegated Act.
Main issues of concern were application of financial correction to complex priorities, criteria to apply financial correction and application of corrections.

3. Complex priorities (EE and CZ)
Priority
Assessment of serious failure
Coefficient calculation
Financial correction
'Simple' (one Fund, one category of region)
All indicators, except result, included in the performance framework at the level of Priority
All expenditure charged to the Funds under the priority concerned
'Complex' (more than one Fund)
All indicators, except result, included in the performance framework for each Fund independently
All expenditure charged to the particular Fund under the priority concerned
'Complex' (more than one category of region)
All indicators, except result, included in the performance framework for each category of region independently
All expenditure charged to the particular category of region under the priority concerned

4. Criteria to apply correction (HU and LT)
Comment
Reply
Overachievement up to 35% for output indicator should be still taken into account.
Disagree, targets can be adjusted
For the purpose of coefficient calculation the final achievement rate of financial indicator in excess of 100% shall be counted as 100%.
Agree, included in the draft
The financial indicator included in the performance framework should not be taken into account.
Disagree, art. 20(4) of CPR
What is the difference between factors that exclude financial correction and other external factors?
To be expanded in the guidance

5. Application of correction (CZ, DE, GR, HU and LT)
Comment
Reply
Who will assess if there have been some factors that prevented achievement?
Commission, taking into account information provided by MS (cf. art. 137 of CPR)
The necessary corrective actions with no positive outcome
Assessment will be made on case by case basis.
Reduction of future reimbursements or recovery of previous reimbursements?
Decision on case by case basis
Will the corrections be considered as net corrections or the funds could be reused by a Member State?
Correction intervenes at the end of programming period and is launched at the initiative of the Commission, so no option to re-use.
Do the flat rate refer to all EU expenditures included in payment requests submitted until the final implementation report is due or to all expenditures at closure of the programme?
The flat rate applies to all expenditure charged to the Funds under the priority concerned (minus the amounts refused further to any prior financial correction.
Below 50% flat rate should be split in two.
Disagree

6. Reference documents FICHE NO 24 B - DELEGATED ACT ON THE CRITERIA
FOR FINANCIAL CORRECTIONS
LINKED TO THE PERFORMANCE FRAMEWORK
CohesionPolicy