Division 2.2.1 Key elements for ensuring eligibility for co-financing

Provision and application of procedures for grant applications, appraisal of applications, selection of projects for funding and selection of contractors/suppliers, appropriate publication of calls for grant applications according to the procedures for the programme concerned:

1. (a)

   compliance, where applicable, with rules on publicity, equality of opportunity and public procurement, and with Treaty rules and principles of equality of treatment and non-discrimination where EC public procurement directives are not applicable;

2. (b)

   appraisal of grant applications in accordance with programme criteria and procedures, including compliance with rules on environmental impact assessment, equality of opportunity legislation and policies;

3. (c)

   selection of projects for funding:

   • projects selected correspond to objectives and published criteria of programme,

   • reasons for acceptance or rejection of applications are clearly set out,

   • observance of State aid rules,

   • observance of eligibility rules,

   • inclusion of terms and conditions of funding in approval decision.

Adequate verification of delivery of co-financed products and services and of eligibility of expenditure charged to programme by the responsible authority designated under Article 13 of Decision 2004/904/EC and the intermediary organisations between the grant recipient and the responsible authority:

1. (a)

   verification of the reality of ‘deliverables’ (services, works, supplies, etc.) against plans, invoices, acceptance documents, experts' reports, etc., and, where appropriate, on the spot;

2. (b)

   verification of observance of conditions of grant approval;

3. (c)

   verification of the eligibility of expenditure for which a claim is made;

4. (d)

   adequate follow-up of all outstanding questions before acceptance of claim;

5. (e)

   maintenance of an adequate and reliable accounting system;

6. (f)

   maintenance of the audit trail at all levels from grant recipient up through the system;

7. (g)

   taking reasonable measures to obtain assurance that the declarations of expenditure the responsible authority certifies to the Commission are correct insofar as:

   • expenditure was effected within the eligible period in projects selected for co-financing in accordance with normal procedures and all applicable terms and conditions,

   • the co-financed projects have actually been carried out.

Sufficient quantity and quality of sample checks on projects and adequate follow-up:

1. (a)

   carrying out sample checks on at least 10 % of total eligible expenditure in accordance with Article 4 of this Decision, supported by a report on the work done by the auditor;

2. (b)

   the sample is representative and the risk analysis adequate;

3. (c)

   adequate separation of functions vis-à-vis line management to ensure independence;

4. (d)

   follow-up to checks, ensuring:

   • appropriate assessment of results and financial corrections where appropriate,

   • action at a general level to correct systemic irregularities.