If projects do not reach their spending targets, the Programme faces the risk of losing funding, according to the European Commission’s N+2 Rule. This means that less funding will be available for project applicants in the future, but under spending could also/alternatively lead to cuts in the budgets of projects already approved. 

Projects not meeting their spending targets may be requested to submit an interim claim up to the 30th of June 2010 including Certificates of Expenditure for Member State partners and an activity report. Costs for the additional certification have to be covered by the existing project budget. Further instructions will be given by the 31st of March 2010. 

All projects are expected to meet the following conditions for the next reporting period up to 31st of March 2010:

a) Ensure that at least 60% of total budgeted ERDF project expenditure up to the end of 2009 has been certified. In addition, ensure that 100% of the 2008 and 100% of the 2007 ERDF project budget has been spent and certified. Remember: The share of match funding has to be received and certified by the First Level Controllers so payment can be issued.

b) Submit your Statement of Expenditure with correct supporting documentation to your First Level Controller (FLC) no later than 1st of May 2010. All projects should ensure as a precautionary measure that they receive a Certificate of Expenditures from their FLC no later than 30th  of June 2009 and

c) Present a complete project Progress Report, including a Project Claim no later than the 16th of August deadline to your Desk Officer.

If your project is in danger of not meeting these targets, please stay in contact with your desk officer at the Programme Secretariat to discuss an action plan.

This information was communicated to all Lead Partners in a letter.