Structural Funds : Guidelines on the principles, criteria and indicative scales to be applied by Commission departments in determining financial corrections

The purpose of financial corrections is to restore a situation where 100% of the expenditure declared for cofinancing from the Structural Funds is in line with the applicable national and EU rules and regulations.

Where irregularities are found, corrections must be made by cancelling the part of the funding that was ineligible and, if necessary, recovering any undue payment with interest. The main responsibility for financial corrections lies with the Member States. They make the financial corrections required by cancelling all or part of the Community contribution. The Commission is, however, kept directly informed of all the irregularities noted and of the progress in the administrative and financial proceedings undertaken. Where the Member
States fail to comply with their obligations, the Commission may take action.

Corrections by the Commission are possible where the State does not make the necessary corrections and where there are serious deficiencies in the management and control systems. When the Commission makes corrections, the part of the Funds' contribution to the assistance concerned is withdrawn, and may not be reused for other operations in the programme. The financial correction may be limited to the irregularity detected, or extended by extrapolation or at flat rate if the irregularity results from a more general weakness in the management or control system. Financial corrections may also be imposed for irregularities which do not have an exact financial value, for example in the event of non-compliance with a particular provision of Community law.

(2001) : C(2001) 476: (45 KB) PDF files

(2002) Guidelines on the principles, criteria and indicative scales to be applied by Commission departments in determining financial corrections under Article H(2) of Annex II to Regulation (EC) No 1164/94 establishing a Cohesion Fund

(2007) : Guidelines for determining financial corrections to be made to expenditure cofinanced by the structural funds or the cohesion fund for non-compliance with the rules on public procurement