CHAPTER IIPROVISIONS SUPPLEMENTING PART TWO OF REGULATION (EU) No 1303/2013 APPLICABLE TO THE ESI FUNDS SUPPORT FOR RURAL DEVELOPMENT AND SUPPORT UNDER REGULATION 508/2014
F1SECTION ICriteria for determining the level of financial correction to be applied under the performance framework(Fourth subparagraph of Article 22(7) of Regulation (EU) No 1303/2013)
Article 2Determination of the level of financial correction(Fourth subparagraph of Article 22(7) of Regulation (EU) No 1303/2013)
1.
The level of financial correction to be applied by the Commission pursuant to Article 22(7) of Regulation (EU) No 1303/2013 shall be a flat rate determined on the basis of the ratio between the average of the final achievement rates for all output indicators and key implementation steps under a performance framework and the final achievement rate of the financial indicator under that performance framework (the ‘achievement/absorption coefficient’).
2.
The achievement/absorption coefficient shall be calculated in the following way:
(a)
the final value achieved for each output indicator and key implementation step selected for the performance framework under a given priority shall be divided by the respective target values in order to obtain their final achievement rate expressed as a percentage of the target;
(b)
the average of the final achievement rates for all the output indicators and key implementation steps selected for the performance framework under a given priority shall be determined. For that purpose, where a final achievement rate is calculated to be in excess of 100 %, it shall count as 100 %;
(c)
the final value achieved for the financial indicator selected for the performance framework under a given priority shall be divided by the respective target value in order to obtain its final achievement rate expressed as a percentage of the target. For that purpose, where a final achievement rate is calculated to be in excess of 100 %, it shall count as 100 %;
(d)
the average of the final achievement rates for all the output indicators and key implementation steps selected for the performance framework under a given priority shall be divided by the final achievement rate for the financial indicator selected for the performance framework under a given priority.
3.
If a priority relates to more than one ESI Fund or category of region, the achievement/absorption coefficient shall be calculated separately for each ESI Fund and/or category of region.
Article 3Level of financial correction(Fourth subparagraph of Article 22(7) of Regulation (EU) No 1303/2013)
1.
The level of financial correction is fixed as follows:
(a)
for an achievement/absorption coefficient below 65 % but not less than 60 %, a flat rate of 5 % shall be applied;
(b)
for an achievement/absorption coefficient below 60 % but not less than 50 %, a flat rate of 10 % shall be applied;
(c)
for an achievement/absorption coefficient below 50 %, a flat rate of 25 % shall be applied.
2.
The flat rate shall be applied to the contribution from the ESI Fund determined on the basis of the expenditure declared by the Member State under the priority that meets the conditions referred to in the first subparagraph of Article 22(7) of Regulation (EU) No 1303/2013, after the application of any other financial corrections.
For priorities concerning more than one ESI Fund or category of region, the flat rate shall be applied to each ESI Fund and/or category of region.
3.
External factors contributing to a serious failure to achieve the targets, other than those referred to in the third subparagraph of Article 22(7) of Regulation (EU) No 1303/2013, shall be considered on a case-by-case basis. The flat-rate correction set out in paragraph 1 may be reduced by up to 50 %, taking account of the extent to which the serious failure is attributed to these factors.
4.
Where the application of the flat rate fixed in accordance with paragraph 1 would be disproportionate, the level of correction shall be reduced.