Ó An Roinn Breisoideachais agus Ardoideachais, Taighde, Nuálaíochta agus Eolaíochta
Foilsithe
Éifeachtach ó
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
I am directed by the Minister for Further and Higher Education, Research, Innovation and Science to advise all bodies in the financial management and control cascade of the eligibility rules for expenditure concerning the European Social Fund Plus (ESF+) 2021-27. This applies to all expenditure co-financed through the ESF+ Employment, Inclusion, Skills and Training programme (EIST) 2021-27.
This Circular should be read in association with the Circular 09/2023 on Management and Control Procedures for the Cohesion Policy Funds (CPF) encompassed by the European Union Common Provision Regulation Programmes 2021-27 issued by the Department of Public Expenditure, National Development Plan Delivery and Reform (DPENDPDR). The Circular 09/2023 on Management and Control Procedures for the Cohesion Policy Funds encompassed by the European Union Common Provision Regulation Programmes 2021-27 issued by DPENDPDR indicates that the “eligibility rules’’ for the ERDF will be set out by DPENDPDR and DFHERIS will set out the ‘‘eligibility rules’’ for the ESF+. This requirement is met by the issuing of this Circular. The CPF Circular sets out the procedures to conform with the regulatory framework as laid down in the European Parliament and Council Regulation (EU) 2021/1060 (Common Provision Regulations (CPR)) and in particular Articles 63-68.
This Circular sets out the eligibility rules which have been developed in accordance with CPR 2021/1060 Article 63(1), which states “The eligibility of expenditure shall be determined on the basis of national rules, except where specific rules are laid down in, or on the basis of, this Regulation or the Fund-specific Regulations.”
DPENDPDR has responsibility for Cohesion Policy and coordinating responsibility for the CPF. The Department of Further and Higher Education, Research, Innovation and Science (DFHERIS) has primary responsibility for the ESF+. However, the day-to-day responsibility for the implementation of cofinanced operations rests with the appropriate statutory bodies e.g. Government Departments, Agencies and Authorities. These bodies are also accountable both to the Oireachtas and to the Comptroller & Auditor General and/or the Local Government Audit Service, as appropriate, for the National/Exchequer contribution to the co-financed Actions.
A separate National Eligibility Rules Circular for the 2021-27 European Regional Development Fund (ERDF) Programmes shall be issued by the DPENDPDR.
All bodies in the financial management and control cascade are required to comply with the requirements of this Circular as failure to do so may lead to the deferment or cancellation of ESF+ assistance by the European Commission and result in a loss to the Exchequer for which the relevant Bodies in the Financial Management cascade will have to account.
All expenditure declared for operations within the ESF+ co-financed 2021-27 EIST Programme shall be governed by the ESF+ national eligibility rules set out in this Circular, in line with Article 63(1) CPR 2021/1060, and in the other sources included in the following list:
These National and EU rules governing the eligibility of expenditure included in applications for ESF+ aid under the EIST 2021-27 shall be referred to as the ‘National eligibility rules documents’.
Any guidelines/instructions issued by the intermediate body and/or beneficiary for their specific Actions should be used in conjunction with the ‘National eligibility rules documents’. Any guidelines on the completion of ESF+ claims issued by intermediates bodies should be submitted to the ESF+ managing authority for approval. The purpose of these guidelines/instructions is not to introduce further eligibility rules, but to assist beneficiaries with the completion of the expenditure claims. This reduces the risk of expenditure being included in ESF+ claims that does not comply with the criteria set out in the ‘National eligibility rules documents’. It is acknowledged that this prudent approach may result in eligible expenditure being excluded from claims. In short, beneficiaries should follow the advice and guidance as set out in the intermediate body’s and/or beneficiary guidelines when completing an expenditure declaration, while decisions regarding the eligibility of expenditure shall be determined by reference to the ‘National eligibility rules documents’.
In instances where expenditure is eligible under the ‘National eligibility rules documents’ but is not in line with the guidelines/instructions issued by the intermediate body and/or the beneficiary, and has already been included in a claim to the European Commission, the inclusion of such expenditure in a claim is not then considered a financial irregularity/error and no financial correction is required. Consequently, the action to be taken shall be limited to preventing such types of risk-related expenditure (but not necessarily ineligible expenditure) being included in future ESF+ claims.
Expenditure shall be eligible for a contribution from the ESF+ if it has been incurred and paid between 1 January 2021 and 31 December 2029.
Expenditure shall be eligible for a contribution from the ESF+ where incurred for Actions approved by the managing authority of the programme concerned or under its responsibility, in accordance with criteria fixed by the monitoring committee and set out in the individual IPs. These approved Actions must be within the scope of the specific objectives set out under Article 4 of the ESF+ Regulation 2021/1057.
Proof of expenditure incurred and paid is required and, as a general rule, the expenditure must be supported by receipted invoices or accounting documents of equivalent probative value, which have a proven link with the operation. These supporting documents must be available upon request for the period set out under Article 82 CPR 2021/1060 and within the DPENDPDR CPF 2021-27 Circular.
Article 51 CPR 2021/1060 sets out the forms of union contribution to the EIST programme and Articles 52-62 CPR 2021/1060 provides the forms of support that Members States can provide to beneficiaries. Simplified Cost Options (SCOs) as a form of support (grant and repayable assistance) from Member States to beneficiaries are set out under Articles 53 to 57 CPR 2021/1060. These SCOs provide a derogation from the reimbursement of eligible costs incurred and paid that are set out under section 3.1 above. This means that certain grants and repayable assistance can be ESF+ cofinanced using:
The SCOs referred to above and, the costs actually incurred and paid option, may be combined where each option:
In addition, Article 53(1)(f) CPR 2021/1060 introduces a form of grant ‘financing not linked to costs’ which could be implemented in conjunction with Article 95 CPR 2021/1060. It is advisable that engagement with the managing authority is prioritised if an SCO option is being considered by an intermediate body.
As stated earlier, these SCOs can be used in the cases of grants and repayable assistance. SCOs shall be the form of support where the total cost of an operation does not exceed €200,000, consistent with the requirements set out in Article 53(2) CPR 2021/1060. The use of SCO is not mandatory where the total cost of the operation exceeds €200,000.
Any SCOs being availed of by operations must be stipulated in the IPs agreed between the managing authority and relevant intermediate body, or beneficiary where there is no intermediate body. This will establish the specific SCO(s), if any, being applied when claiming any element of the operation’s expenditure. Once the initial IP is agreed, no retrospective introduction of alternative SCOs will be permitted. The IP will also indicate the relevant rules that set out the conditions for this type of support.
Expenditure that becomes eligible as a result of an amendment to a programme shall only be eligible from the date of submission to the Commission of the request for amendment (CPR 2021/1060 Article 63(7)). Where a programme is amended in order to provide a response to natural disasters, the programme may provide that the eligibility of expenditure relating to such amendment starts from the date when the natural disaster occurred.
The eligible expenditure of the operation to be co-financed from the ESF+ shall be reduced by the net revenue not taken into account at the time of approval of the operation, and which is directly generated only during its implementation. The reduction shall be implemented no later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.
Direct staff costs shall be eligible for a contribution from general support from the ESF+ strand under shared management if they are in line with the beneficiary’s usual remuneration practice for the category of function concerned or in line with applicable national law, collective agreements or official statistics.
An operation may receive support from one or more Funds, or from one or more programmes and from other European Union instruments, provided that the expenditure declared in a payment application for reimbursement by one of the Funds shall not be declared for either support from another Fund or European Union instrument, or support from the same Fund under another programme. The amount of expenditure to be entered into a payment application of a Fund may be calculated for each Fund and for the programme or programmes concerned on a pro rata basis, in accordance with the document setting out the conditions for support.
By way of derogation from section 3.1 above, depreciation costs may be eligible where the following conditions are fulfilled:
By way of derogation from section 3.1 above, contributions-in-kind in the form of allowances or salaries disbursed by a third party for the benefit of the participants in an operation may be eligible for a contribution from general support from the ESF+ strand under shared management provided the contributions-in-kind are:
The following costs shall not be eligible for a contribution from the ESF+ under the shared management strand, consistent with Article 64 CPR 2021/1060 and Article 16 ESF+ Regulation 2021/1057:
Furniture, equipment and vehicles must meet all of the following conditions to be considered for the purposes of 2021-27 ESF+ co-financed Actions in Ireland:
The following costs shall not be eligible for a contribution from the ESF+ under the support for addressing material deprivation (specific objective (m)), consistent with Article 64 CPR 2021/1060 and Article 22 ESF+ Regulation 2021/1057:
The ESF+, in a complementary manner and subject to a limit of 15 % of funding for each priority of a programme, may finance all or part of an operation for which the costs are eligible for support from the ERDF on the basis of eligibility rules applied to that Fund, provided that such costs are necessary for the implementation, in accordance with CPR 2021/1060 Article 25.
The technical assistance allocation for ESF+ may support actions, necessary for the effective administration and use of ESF+ funds, such as:
The actions referred to in the above paragraph may concern previous and subsequent programming periods. In addition, the ESF+ technical assistance allocation may support technical assistance actions eligible under any of the other EU funds.
The data required to confirm that the participant or entity is eligible to partake in the specific ESF+ co-financed operation must be captured and available.
This is separate from a participant’s complete data that is still required to be collected and reported for compliance with Article 23 and Annex III for addressing material deprivation (specific objective (m)) or Article 17 and Annex I (for other co-financed Actions) of ESF+ Regulation 2021/1057. Such compliance is needed to avoid potential suspension or financial corrections of ESF+ monies but is considered independent from compliance with the National ESF+ Eligibility Rules.
The Financial Management and Control system for ESF+ co-financed operations in Ireland is based on the principle of shared responsibilities by way of delegation and administrative agreements. Each level of the cascade must therefore take responsibility for ensuring that the requirements of the Management and Control systems are adhered to at their own level and that ESF+ and national eligibility rules are complied with.
The DPENDPDR Circular 09/2023 sets out the Management and Control Procedures required for 2021-27 CPF Programmes. This Circular includes procedures for State aid, public procurement, information and publicity, irregularities, audit trail and retention of records that are required to safeguard the eligibility of expenditure for EU co-financing.
Conformity with this ESF+ Circular and the other National eligibility rule documents listed in section 2 above is obligatory for all operations within the ESF+ co-financed 2021-27 EIST Programme. Failure to abide by the ESF+ eligibility rules may lead to the deferment or cancellation of ESF+ assistance to Ireland and a loss to the National Exchequer. Therefore, these rules must be adhered to and introduced into the procedures of all organisations involved in implementing and administrating ESF+ co-financed operations.
Finally, where the eligibility of expenditure is considered uncertain, clarification should, in the first instance, be sought by contacting the ESF+ 2021-27 EIST Managing Authority, DFHERIS. Any additional clarifications required can be sought from the ESF+ Accounting Function, DFHERIS. The 9 contact details for the ESF+ Managing Authority and Accounting Function can be located at eufunds.ie .
Cathal Quaid
ESF+ Accounting Function,
ESF/EGF Policy and Operations Unit,
Department of Further and Higher Education, Research, Innovation and Science.
28th June 2023
