Guidance for Member States on Article 42(1)(d) CPR– Eligible management costs and fees
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Financial instruments (FIs) are a form of support whose success hinges on the performance of bodies implementing them. One of the decisive parameters to align the interests of the managing authorities (MA) and the bodies implementing FIs is the remuneration paid to the latter in the form of performance-based management costs and fees.
In 2007-2013 management costs and fees paid to bodies implementing FIs were calculated on the basis of the amounts contributed to the FIs and were, in many cases, decoupled from their performance (e.g. from the disbursements to final recipients). The legislation also set rather high limits for management costs and fees considered as eligible expenditure.
Article 42(1)(d), (2), (5) and (6) CPR provide for a new approach to eligible management costs and fees, introducing a requirement for their performance orientation and a new calculation method of thresholds as further stipulated in Articles 12, 13 and 14 CDR.