the operation complies with applicable law, the relevant programme and the relevant funding agreement, both during the appraisal and selection process of the operation and during the set-up and implementation of the financial instrument;

funding agreements contain provisions on audit requirements and on the audit trail in accordance with point 1(e) of Annex IV to Regulation (EU) No 1303/2013;

management verifications are carried out throughout the programming period and during the set-up and implementation of the financial instruments in accordance with Article 125(4) of Regulation (EU) No 1303/2013 for F6the ERDF, the ESF, the Cohesion Fund and F7the EMFF F7support under Regulation 508/2014, and in accordance with Article 58(1) F8and (2) of Regulation (EU) No 1306/2013 for F9the EAFRD F9support for rural development;

supporting documents for expenditure declared as eligible are:

1. (i)

   F10kept for the operation by the managing authority, the financial intermediary, or the body that implements the fund of funds where the financial instrument is implemented through a fund of funds, in order to provide evidence of the use of the funds for the intended purposes, of compliance with applicable law and of compliance with the criteria and the conditions for funding under the relevant programmes;

2. (i)

   F10kept for the operation by the managing authority or the financial intermediary in order to provide evidence of the use of the funds for the intended purposes, of compliance with applicable law and of compliance with the criteria and the conditions for funding under the relevant programmes;

3. (ii)

   available to allow verification of the legality and regularity of expenditure F11declared to the Commission;

supporting documents allowing verification of compliance with F12Union and national law and with the conditions of funding include at least:

1. (i)

   documents on the establishment of the financial instrument;

2. (ii)

   F1documents identifying the amounts contributed by each programme and under each priority F13axis to the financial instrument, the expenditure that is eligible under the programmes and the interest and other gains generated by support from F14the ESI Funds and re-use of resources attributable to the ESI Funds F14, and re-use of resources attributable to, support for rural development F15and support under Regulation 508/2014 in accordance with Articles 43, 43a and 44 of Regulation (EU) No 1303/2013;

3. (iii)

   documents on the functioning of the financial instrument, including those related to monitoring, reporting and verifications;

4. (iv)

   F1documents demonstrating compliance with Articles 43, 43a, 44 and 45 of Regulation (EU) No 1303/2013;

5. (v)

   documents concerning exits of programme contributions and the winding-up of the financial instrument;

6. (vi)

   documents on the management costs and fees;

7. (vii)

   application forms, or equivalent, submitted by final recipients with supporting documents, including business plans and, when relevant, previous annual accounts;

8. (viii)

   checklists and reports from the bodies implementing the financial instrument, where available;

9. (ix)

   F16declarations made in connection with de minimis aid, if applicable;

10. (x)

    agreements signed in connection with the support provided by the financial instrument, including for equity, loans, guarantees or other forms of investment provided to final recipients;

11. (xi)

    evidence that the support provided through the financial instrument was used for its intended purpose;

12. (xii)

    records of the financial flows between the managing authority and the financial instrument, and within the financial instrument at all levels, down to the final recipients, and in the case of guarantees proof that underlying loans were disbursed;

13. (xiii)

    separate records or accounting codes for programme contribution paid or guarantee committed by the financial instrument for the benefit of the final recipient.