32 nd meeting of the Expert Group on DA and IA for the ESI Funds Fiche No 37B Article 14(1) ESF Reg. Brussels, 15 January 2016

Structure of the intervention 1. Overview of Article 14(1) ESF mechanism 2. The empowerment and the delegated act (DA) 3. The Czech Republic 4. Belgium

Part 1: Overview of Article 14(1) ESF mechanism

Article 14(1) ESF Regulation – Why? 14.1 a way to pre-approve Simplified Cost Options SCOs lead to reduced errors, less admin. burden, more focus on results. But – MS/Regions are wary of getting methodology wrong 14.1 gives legal certainty to the MS/region The possibility to apply different accounting practices to the beneficiary Greater scope to focus on results

Article 14(1) ESF Regulation Is relevant for all types of ESF operations (no minimum/maximum value). But: No cross-financing is allowed The COM will only consider assessing data set when the scheme is expected to cover more than EUR 1 million over the programming period.

Two main options for the coverage of costs with 14(1) ESF: All the eligible costs of the operation are covered and declared on the basis of Article 14(1) ESF (example 1) Part of the eligible costs are covered by Article 14(1) ESF (example 2)

Example 1 — an operation where all eligible costs are covered by Article 14(1) of the ESF Regulation Commission  Managing Authority Delegated act: EUR 700 / student who completes a training The expenditure included in a payment application sent to the Commission will be based on the justified indicator included in the DA. Managing Authority  Beneficiary The Managing Authority has four options for reimbursing the beneficiary: Option 1: the standard scale of unit costs (Article 14(1) of the ESF Regulation) is applied to the beneficiary Option 2: real costs are applied to the beneficiary Option 3: another SCO system is applied to the beneficiary Option 4: a combination of real costs and SCOs is applied to the beneficiary

Example 2– Basis for reimbursement linked to an operation where eligible costs are partly covered by a standard scale of unit costs under Article 14(1) of the ESF Regulation Commission  Managing Authority The payment application sent to the Commission includes: the operation’s direct staff costs, based on the justified indicator (delegated act: EUR 20/hour); the operation’s other direct costs, declared based on real costs; the indirect costs, declared based on a flat rate. Managing Authority  Beneficiary The Managing Authority should apply the same methodology: the operation’s direct staff costs should be based on the justified indicator (delegated act: EUR 20 / hour); the operation’s other direct costs should be declared based on real costs; the indirect costs should be declared based on a flat rate.

Part 2: The empowerment and the delegated act (DA)

Article 14(1) ESF Reg. The Commission may reimburse expenditure paid by MS on the basis of standard scales of unit costs and lump sums define by the Commission. The Commission shall be empowered to adopt DA (…) concerning the types of operations covered, the definitions of the standard scales of unit costs and lump sums and their maximum amounts, which may be adjusted according to the applicable commonly agreed methods, taking due account of experience gained during the previous programming period.

The empowerment means… While there is no obligation to act for the Commission… there is a strong political commitment from the Commission to support MS in implementing SCOs. Unit costs and lump sums included in the DA could be Designed by the Commission Based on data from the MS

Delegated Regulation 2015/2195 Made of two parts: 1. The main part applicable to all MS 2. The annexes (one per MS) 1.Sweden 2.France The DA will be amended when deemed necessary. The Czech Republic Belgium

The main part of the DA Articles 1 to 4 cover: Subject matter and scope Types of operations Definitions of standard scales of unit costs and lump sums and their amounts Adjustment of amounts

The Annex of the DA Is made of two parts: 1. Definition of standard scales of unit costs/lump sums 2. Adjustment of amounts

Part 3: The Czech Republic

Indicator 1: Created Places in Childcare Facility – PA 1

Indicator 2: Transformed Place in a children's group – PA 1

Indicator 3: Operating costs based on occupied places – PA 1

Indicator 4: Qualification of caregivers in a childcare facility – PA1

Indicator 5: Rent for facility

Part 4: Belgium (Flanders region)

Indicator 1: Individual Vocational Training with IBO – PA 1 and 3

Indicator 2: Vocational Training – PA 1 and 3

Please send your comments on the Fiche No 37b to By Thursday 21/01 cob at the latest. Thank you!