CHAPTER IDETAILED ARRANGEMENTS FOR THE TRANSFER AND MANAGEMENT OF PROGRAMME CONTRIBUTIONS AND REPORTING ON FINANCIAL INSTRUMENTS

F1Article A1Interpretation

In this Regulation, a reference to Regulation (EU) No 1303/2013 or any provision of that Regulation is a reference to that Regulation as it applies for the purpose of support for rural development F2and support under Regulation 508/2014.

Article 1Transfer and management of programme contributions(Article 38(10) of Regulation (EU) No 1303/2013)

1.

Where contributions from more than one programme or from more than one priority F3axis or measure of the same programme are made to a financial instrument, the body implementing that financial instrument shall keep a separate account or maintain an adequate accounting code for the contribution from each programme, from each priority F3axis or measure for reporting and audit purposes.

2.

Where national public and private contributions to financial instruments are made at the level of final recipients, in accordance with the F4Fund-specific rules, the bodies implementing those financial instruments shall manage national public or private contributions F5constituting national co-financing and made at the level of final recipients in accordance with paragraphs 3 to 6.

3.

The bodies implementing financial instruments shall keep documentary evidence of the following:

(a)

legal agreements concluded with the private or public entities concerning national public or private contributions F6constituting national co-financing to be provided by these entities at the level of final recipients;

(b)

effective transfer of resources F6constituting national co-financing by private or public entities to final recipients;

(c)

national public or private contributions F6constituting national co-financing and made by private or public entities, reported to the body implementing financial instrument.

4.

The bodies implementing financial instruments shall retain overall responsibility for the investment in final recipients including subsequent monitoring of the F7contributions from programmesF7contribution from the programme in accordance with funding agreements.

5.

The bodies implementing financial instruments shall ensure that expenditure covered by the national public or private contributions F8constituting national co-financing is eligible before declaring it to the managing authority.

6.

The bodies implementing financial instruments shall maintain the audit trail for the national public or private contributions F9constituting national co-financing down to the level of the final recipient.

F10Article 2Model for reporting on financial instruments(Article 46(3) of Regulation (EU) No 1303/2013)

For the specific report referred to in Article 46(1) of Regulation (EU) No 1303/2013, the managing authorities shall use the model set out in Annex I to this Regulation.