Glossaire

An agreement is a convention or promise between two or more parties, by deed in writing, signed, and delivered, by which either of the parties pledges himself to the other that something is either done, or shall be done, or shall not be done.

Pilot activity is a practical measure implemented in the context of a territorial cooperation project that aims to test or pilot strategies and tools in the partner regions.

State Aid means action by a (national, regional or local) public authority, using public resources, to favour certain undertakings or the production of certain goods. A business that benefits from such aid thus enjoys an advantage over its competitors. Control of State Aid thus reflects the need to maintain free and fair competition within the European Union. Aid which is granted selectively by Member States or through state resources and which may affect trade between Member States or distort competition is therefore prohibited (Article 107 of the Treaty on the Functioning of the European Union - TFEU). State Aid may nonetheless be permitted if justified by objectives of general economic interest, if it falls within the General Block Exemption (e.g. Article 19 - Cooperation costs of SMEs in ETC), if it falls within de minims, or if it has been notified to and approved by DG Competition.

Pro-rata allocation of costs means proportionate allocation of costs, revenue, shares, etc. to a project or project partner on the basis of a fair, equitable and verifiable calculation method.

Risk assessment aims to obtain better understanding of the project, its environment and/or the project partner, in order to identify and assess the risks of material misstatement due to fraud or error. Sampling methodologies often include risk assessments as a basis for planning the sampling methodology.

Calls for proposals is a mechanism whereby a selection process is launched to choose candidates/projects on a competitive basis. Actors are invited to submit project proposals. Calls for proposals are publicly announced. Information is provided on the type of projects that will be considered for funding and on specific conditions to be met in each Call for Proposals. Only part of the proposed projects will pass the selection test.

A conditional approval is a project selection decision that a project can be approved only if it meets a number of conditions (e.g., budget cuts, work plan modifications) before final approval. The conditions cannot fundamentally change the project, and must be met within a deadline. If not, the project could be rejected.

An audit is the process of verification that implementation of the programme is in line with EU regulations and programme rules. Audit is delivered yearly by an Audit Authority (see: audit authority) and it consist of two parts; one is audit of operations which is a verification of eligibility of expenditures claimed from and reimbursed by the EC. The second is a system audit, which is the verification that all the systems described in the description of management and control system function properly.

The Managing Authority (MA) is the operationally-responsible body of the programme. It ensures the effective and efficient implementation of the programme, and delivers the programme strategy in accordance with preset quality standards. The MA therefore takes the lead in establishing systems and procedures, and ensures that these are maintained. The MA usually handles the more formal communications ‘upwards’ to the Member States and the European Commission (EC).

An Opinion is an instrument that allows the institutions to make a statement in a non-binding fashion, in other words without imposing any legal obligation on those to whom it is addressed. An opinion is not binding. It can be issued by the main EU institutions (Commission, Council, Parliament), the Committee of the Regions, and the European Economic and Social Committee. While laws are being made, the committees give opinions from their specific regional or economic and social viewpoint.

Standard Scale of Unit Costs is one of the simplified cost options. A standard scale of unit costs comprises of pre-established standard prices that apply to pre-defined quantities related to an activity. The eligible expenditure is calculated by multiplying the standard cost by the units achieved (quantified activities, input, etc.). In general, standard scales of unit costs are process-based, aiming at covering through the best approximation the real costs of delivering a project. They can also be outcome-based or defined on both process and outcome. Standard scales of unit costs are established based on fair, equitable and verifiable calculation methods.

A benefit is a measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders.

A potential beneficiary is an entity that is eligible (in type, geographic location, etc) to apply for and receive funds from a programme financed by ESI funds.

Total eligible budget indicates the total budget of a project subject to programme co-financing. In the Application Form, it is calculated based on the total budget, excluding the potential net revenue of the project.

The performance framework is the basis which the European Commission will use to assess the performance of a programme. They use the framework as a tool for examining the performance of the programmes at the level of priorities against the milestones set for the end of 2018 and the end of the programming period. Where performance is unsatisfactory, the Commission may decide to issue a warning, propose reprogramming resources, or suspend funds.

see 'budget line'

Project closure is the last phase in the project implementation process. The focus is on the completion of all work packages and delivery of project results. If the work plan has been successfully completed within budget the project can be closed – once it has completed the final financial control. The financial aspects of the closure process involve making sure that all costs have been appropriately charged to the project, that a proper audit trail exists, and that all post revenue incomes have been accounted for. The project closure also refers to putting the relevant arrangements in place regarding post-project obligations towards such legal aspects as ownership and changes thereof, cessation of activities, reallocation of outputs, and Intellectual Property Rights of project outputs and results and free of charge access to them.

Reconciliation means checking whether a figure included in one document is identical with the same figure included in another document (e.g., comparing figures in the bank account statement with the list of expenditure).

Local governemnt is an administrative body or system in which political direction and control is exercised over the community of a city, town or small district.

The Steering Committee for projects is a board made up of representatives of the project partners or external stakeholders who provide guidance and take decisions on the implementation of the project.

The European Commission is the executive arm of the European Union. It initiates European Union policy and implements programmes and policies established by the EU legislative and budgetary authorities.

Communication is defined as the imparting or exchanging of information by speaking, writing, or using some other medium. Communication is one of the crucial elements in programme and project management. It is used to refer to general information, publicity and visibility operations (activities, materials) carried out by the programme or by the project.

Thematic concentration is one of the leading principles of cohesion policy for the period 2014-2020, and as such it applies to all Interreg Programmes. There are 11 Thematic Objectives, ranging from low carbon economy to social inclusion, covering the Europe 2020 priorities (smart growth, sustainable growth, inclusive growth). Interreg programmes are obliged to choose up to 4 Objectives from this list which address the common needs, challenges and opportunities of the Programme area. The themes also take into account national, regional and local level priorities which have been laid out by the respective Member States in their different strategies and policy documents.

A subsidiary contract is a grant agreement between the contracting authority (managing authority) and the lead partner.

Public contribution refers to the amount secured by the partners from sources having a public legal status.The programme funds meet only a proportion of the project expenditure. The remainder has to be covered from other sources, which can be the partner's own resources or it can come from external sources, but not from another EU fund.

Private contribution refers to the amount of funds secured by the partners from sources with a private legal status.The programme funds meet only a proportion of the project expenditure. The remainder has to be covered from other sources, which can be the partner's own resources or it can come from external sources, but not from another EU fund.

Control means any measure taken to provide reasonable assurance regarding the effectiveness, efficiency and economy of operations, the reliability of reporting, the safeguarding of assets and information, the prevention, detection and correction of fraud and irregularities and their follow-up. Control also includes the adequate management of risks related to the legality and regularity of the underlying transactions, taking into account the multiannual character of programmes, as well as the nature of the payments concerned. Controls may involve various checks.

A plausibility check is a standard verification by controllers to verify that a project-related expenditure is credible and probable. Plausibility checks are based on the professional judgement of the controller.

A controller reviewer is a second controller who verifies checks undertaken by the primary controller (4-eyes principle). Often done on a sample basis. The controller reviewer can be a peer or a superior.

Controller is an abbreviated term for first level controller.

Interregional cooperation is aimed at enhancing EU regional development through transfers of know-how and exchanges of experiences between regions.

Cross-Border Collaboration is the name given to collaboration between adjacent areas across borders. The main aim is to reduce the negative effects of borders as administrative, legal and physical barriers, tackle common problems, and exploit untapped potential. Through joint management of programmes and projects, mutual trust and understanding are strengthened, and the cooperation process is enhanced.

Financial corrections are withdrawals of funding that take place when payments to EU-backed projects have been made in error due to irregularities.

Preparation Costs are costs borne by project partners when carrying out activities directly linked to preparation of the project (e.g., development of the project idea, meetings with project partners/ programme bodies (Contact Points, JS), preparation of the application, etc.).

Costs incurred are costs accumulated in relation to the preparation and/or implementation of the project that are recorded as liabilities on the balance sheet of the partner organisation until they are discharged or paid. Incurred costs may include both direct and indirect costs.

Shared costs of a project are costs common to at least two project partners, thus shared between them according to a transparent, fair and equitable method. Shared costs derive from a joint implementation of the project, and link to activities that benefit a number of project partners, or the whole partnership (e.g., activities related to project management, project communication).

Leasing is when the owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a second party (the lessee) the right to its exclusive possession and use for a specific period and under specified conditions, in return for specified periodic rental or lease payments.

(Quality) assesment criteria is a group of related assessment questions that form the basis for judging or deciding whether or not to fund a project. Used once the project is declared compliant during the administrative and eligibility check.

Cooperation criteria are the four joint criteria used to measure to what extent projects cooperate. Project partners must cooperate in the development and implementation of projects. In addition, they must cooperate in the staffing or the financing of projects, or in both. For projects in programmes between outermost regions and third countries or territories, the project partners are required to cooperate only in two fields: joint development and joint implementation.

A decision (EU law) is an EU legislative act binding on those to whom it is addressed (e.g., an EU country or an individual company), and is directly applicable.

De-commitment is a mechanism that aims to improve both the speed of programme development and the monitoring of flows of programme funding. The yearly allocations of a programme budget are defined in the Cooperation Programme. These funds have to be spent within three years (by the end of n+3). If they have not been spent they are returned to the European Commission and ‘de-committed’ from the programme.

Total expenditure is all expenditure incurred and paid (or calculated based on simplified cost options) by project partners in relation to implementation of the project activities.

Expenditure is payment of cash or cash-equivalent for goods or services as evidenced by an invoice or receipt.

Public expenditure refers to any public contribution to the financing of operations the source of which is the budget of national, regional or local public authorities, the budget of the Union related to the ESI Funds, the budget of public law bodies or the budget of associations of public authorities or of public law bodies and, for the purpose of determining the co-financing rate for ESF programmes or priorities, may include any financial resources collectively contributed by employers and workers.

The description of management and control system contains details of all the systems needed for adequate management of a programme.

Deviation is any departure from the original plan presented in the application form. Deviations are minor changes from the workplan (can be positive or negative in the sense of a delay) which (according to programme rules) don't require an official change procedure, as opposed to changes which require a change procedure (according to programme rules).

A Directorate-General (DG) is the term given to the individual departments/services The European Commission is divided into.

An application package consists of all documents required when applying for funding. The essential part of the package is the application form, which is often accompanied by different annexes (depending on programme rules).

Double financing/funding is what happens when the same item (expenditure) is submitted for reimbursement to several donors in order to obtain payment for that item from all of them.

e-Cohesion is the computerised exchange of data. Managing Authorities must ensure that all the data exchange between programme authorities and beneficiaries (i.e., after signature of the Subsidy Contract) can be done via an electronic data exchange platform. This requirement aims at decreasing paper flow in the programmes.

An outcome is an intended situation, which is a combination of project results, outputs and deliverables, at the end of the project or soon thereafter.

An interview is a documented discussion, for example between a project partner and FLC. Interviews can be rather short and relate to a specific open question, or quite extensive; e.g., in order to obtain a good understanding of accounting processes, procurement, transfer of funds to partners, etc.

A systematic irregularity/error is any irregularity, which may be of a recurring nature and has a high probability of occurrence in similar types of operations, which results from a serious deficiency in the effective functioning of a management and control system, including a failure to establish appropriate procedures in accordance with regulations and the fund-specific rules.

A feasibility study is an analysis of the ability to complete an operation successfully, taking into account legal, economic, technological, scheduling and other factors. It evaluates the project's potential for success. The two criteria to judge feasibility are cost required and value to be attained.

An impact evaluation provides information about the impacts produced by an intervention - positive and negative, intended and unintended, direct and indirect. This means that an impact evaluation must establish what has been the cause of observed changes (in this case ‘impacts’) referred to as causal attribution (also referred to as causal inference).

Ex-post evaluation is the responsibility of the European Commission in close cooperation with Member States and Managing Authorities. The ex-post evaluation is carried out after the programme implementation period in order to obtain a view of the programming period as a whole. The purpose of the ex-post evaluation is to assess the effectiveness, efficiency and impact of EU funds.

External Expertise and Services is the budget line that covers expenditures of contracting experts, not staff of beneficiaries, and external services - for example, hiring a venue for an event.

Since 1994, the Cohesion Fund has been used to provide support for the poorer regions of Europe and stabilise their economies with a view to promoting growth, employment and sustainable development. The Fund contributes to financing environmental measures and trans-European transport networks - particularly high-priority projects of European interest - in the 13 Member States that have joined the EU since 2004, as well as in Greece and Portugal. The Cohesion Fund may also be used to finance the priorities of the EU's environmental protection policy. Member States with a Gross National Income (GNI) per inhabitant below 90 % of the EU average are eligible for funding from the Cohesion Fund. The ceiling for the Cohesion Fund's contribution to public expenditure in the Member States is set at 85 %. The budget for the Cohesion Fund is worth around EUR 75 billion (2014 prices) for the period 2014-2020.

European Structural and Investment Funds (ESIF) finance cohesion policy for the period 2014-20. The ESIF consist of five different funds, which are all covered by Regulation (EU) No 1303/2013 of the European Parliament and of the Council, the so-called ‘Common Provisions Regulation’. The Structural Funds have two components: the European Regional Development Fund (ERDF), providing financial support since 1975 for the development and structural adjustment of regional economies, economic change, enhanced competitiveness as well as territorial cooperation throughout the EU; and the European Social Fund (ESF), set up in 1958 and seeking to contribute to the adaptability of workers and enterprises, access to employment and participation in the labour market, social inclusion of disadvantaged people, combating all forms of discrimination, and creating partnerships to manage reforms in employment. The other three funds constituting the ESIF are the Cohesion Fund, which supports exclusively less-developed Member States; the European Agricultural Fund for Rural Development; and the European Maritime and Fisheries Fund.

An application form is a binding document which describes the project (objectives, results, outputs, partnership) and gives detailed information on the work plan and financial figures. The appplication form has to be submitted during the selection process and is assessed by the programme bodies, in order to select the projects to be funded by the programme. Once the project is approved, the application form becomes the reference document for the whole implementation of the project until its closure. The content of it may change to a certain extent during the implementation, but only according to the programme's project modifications rules and procedures. (HIT)

Travel and Accommodation is the budget line that covers travel costs, accommodation costs, costs of meals, visa costs, and/or daily allowances. It applies only to staff of the partner organisation and relates to delivery of the project.

A bak guarantee is a type of guarantee in which a bank or other lending organisation promises to repay the liabilities of a debtor in the event that the debtor is unable to.

A target group is a collection of individuals and/or organisations directly and positively affected by the project outputs. Not necessarily receiving a financial grant and even not directly involved in the project, the target groups may exploit project outputs for their own benefit.

The Guide for Applicants is a document that sets out the rules for the call for proposals, including the purpose of the call, the target groups, costs which may be financed, and the selection criteria. It also provides practical information on how to complete the application form, what documents must be annexed, and rules and procedures for applying.

A context indicator measures the original situation in a country, population or a category of the population, and then records the subsequent change in that situation.

Infrastructure and works is a budget line that covers costs related to investments in infrastructure that do not fall into the scope of other budget lines. This includes costs for site preparation, delivery, handling, installation, renovation, and purchase of land, when applicable.

Project Evaluation is the process of determining the merit or worth or value of something; or the product of that process. The special features of evaluation include a characteristic concern with cost, comparisons, needs, ethics, and its own political, ethical and cost dimensions; and with the supporting and making of sound value judgements, rather than hypothesis-testing. Evaluation of the project happens during and/or after its implementation and aims at obtaining an impartial judgement on project's achievements (scope and quality of outputs and results) and impact.

The European Neighbourhood Instrument (ENI) finances the European Neighbourhood Policy. ENI support focuses mainly on: promoting human rights and the rule of law; establishing deep and sustainable democracy and developing a thriving civil society; sustainable and inclusive growth and economic, social and territorial development; including progressive integration in the EU internal market; mobility and people-to-people contacts; including student exchanges, civil society; regional integration; including Cross-Border Cooperation.

An irregularity is an amount of expenditure found ineligible after it was reimbursed to a programme by EC. Consequently, it must be paid back to the Commission.

Programme language is the language used in all communication between the applicants/beneficiaries and the programme bodies. In some cases it could be more than one language.

A budget line is a set of cost centres that facilitates reporting on expenditure and revenue. Each cost item can be allocated to one budget line only, according to the nature of the cost. HIT budget lines integrate the five categories of costs defined in Article 18 ETC Regulation (EU) 1299/2013.NOTE: HIT uses the term budget line; it is equivalent to the term category of expenditure used in the regulations.

The List of Expenditure is part of the Partner Progress Report. It lists expenditure borne by a project partner in relation to activities carried out during the period covered by the Progress Report. It includes information on the amounts on the invoice description that are declared by the project partner, amounts verified by the first level controller, amounts approved by relevant programme bodies, etc.

A deliverable is a side-product or service of the project that contributes to the development of a project's main output.

Procurement procedure is a structured procedure designed to consult the market for the purchase of the goods and services. A procurement procedure leads to the conclusion of a public contract. The purpose of a procurement procedure is threefold: (1) to guarantee the widest possible participation of economic operators, (2) to ensure the transparency of operations, and (3) to obtain the desired quality of services, supplies and works at the best possible price.

A fair calculation method is a method of determining flat rates, standard scales of unit costs or lump sums that is reasonable; i.e., based on reality, not excessive or extreme. When establishing simplified cost options, they must be done in advance, and be fair, equitable and verifiable.

Implementation means carrying out the activities described in the work plan with the purpose of achieving objectives and delivering results.

Project modifictaion is a change in the agreed-upon project scope as defined by the approved application form.

An amount is the sum total of two or more quantities or sums.

The amount declared is the amount of expenditure incurred and paid (or calculated, based on simplified cost options) by a project partner in relation to preparation, and/or implementation of the project. The amount may include in-kind contribution and depreciation, where applicable, and is subject to verification by the first level controller and the relevant programme bodies.

Lump Sum is one of the simplified cost options. It is a total allocation of the grant (calculated ex-ante), paid to the project upon completion of pre-defined terms of agreement on activities and/or outputs. Lump sums involve approximations of costs established based on fair, equitable and verifiable calculation methods.

Withdrawal is the process of taking back the irregular expenditure from the programme immidiately when it has been detected, by deducting it from the next interim payment application, therby releasing EU funding from commitment to other project.

An index number is the number put on documents to allow for future easy reference; e.g., index numbers are often used by first level controllers to refer to documents checked.

Abbreviated as NUTS, The Nomenclature of Territorial Units for Statistics has been created by Eurostat in order to provide a standard classification of the EU territory. It is a geographical nomenclature subdividing the territory of the European Union into regions at three different levels. (HIT)

The project specific objective is a concrete statement describing what the project is trying to achieve. It refers to the project main outputs. It can be evaluated at the conclusion of a project, to see whether it was achieved or not.

Observations involve watching people while they execute project-related activities such as an event or an internal process. Observations can thus be conducted in the office of the project partner or at any other site of project activities.

Simplified Cost Options (SCO), contrary to real costs, modify the concept of expenditure paid by project partners. They involve approximations of costs, and are calculated according to a pre-defined method (e.g., established by the programme on the basis of a fair, equitable and verifiable calculation, or defined by the Fund specific regulations) based on outputs, results, or some other costs. The application of simplified cost options is a departure from the approach of tracing every euro of co-financed expenditure to individual supporting documents. (See also Flat rate, Lump sum, Standard scale of unit costs).

A body governed by public law is any legal body governed by public or private law: – established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character , and – having legal personality, and – either financed, for the most part, by the State, regional or local authorities, or other bodies governed by public law, or subject to management supervision by those bodies, or having an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities or by other bodies governed by public law.

With the new design of the European Cohesion Policy 2014-2020 and the targets set out in Europe 2020, Interreg programmes have significantly been reshaped to achieve greater impact and an even more effective use of the investments. In order to achieve this impact programmes are required to finance projects that generate tangible and lasting results; in other words, projects that have a demonstrable impact on the performance of cities, regions and territories. In order to maximise the impact, Interreg Programme results should ensure effectiveness, lead to a change of the initial situation and be achieved in a measurable and relevant way. Results and related changes are then measured through results indicators linked to each programmes specific objective to allow the change achieved in the whole programme during the Programming period to be measured. Projects need to be able to address specific challenges not only during projects duration but also throughout ambitious handover strategies able to guarantee the continuation, share and replication of activities and associated results.

An assimilated project partner is a project partner located outside (the Union part of) the programme area which is competent in its scope of action for certain parts of the eligible area (e.g., ministries). Given the partner's competence in (the Union part of) the programme area, assimilated partners are treated as partners located inside the area.

A project partner is a partner organisation involved in the project implementation.

Public private partnerships' (PPPs) are forms of cooperation between public bodies and the private sector. Their aim is to improve the delivery of investments in infrastructure projects or other types of operations, delivering public services through risk sharing, pooling of private sector expertise or additional sources of capital.

A stakeholder is anyone, internal or external to an organisation, who has an interest in a project or will be affected by its outputs and results.

The eligibility period is the timeframe during which project expenditure must be incurred and paid (unless simplified cost options are used) in order to qualify for reimbursement from the programme funds.

Small and medium-sized enterprises (SMEs) are defined in the EU recommendation 2003/361. The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises with fewer than 250 employees and an annual turnover of no more than EUR 50 million, and/or an annual balance sheet totalling no more than EUR 43 million. Within the SME category, a small enterprise is defined as an enterprise with less than 50 employees and an annual turnover and/or annual balance sheet totalling no more than EUR 10 million. Within the SME category, a microenterprise is defined as an enterprise with fewer than 10 employees and an annual turnover and/or annual balance sheet total of no more than EUR 2 million.

The project preparation phase is the period when project partners develop the project proposal and prepare the application form.

An adequate audit trail ensures that the accounting records maintained and the supporting documents held at the level of the certifying authority, managing authority, intermediate bodies and beneficiaries are adequate for tracing expenditures.

De Minimis Ceiling is the maximum amount of public funding given to a single beneficiary (up to €200,000 over a 3-year fiscal period) that has a negligible impact on trade and competition, and does not require notification.

A commemorative plaque is a plaque displayed in visible places on or at structures built with EU funding or co-funding. As part of the opening ceremony of permanent structures, contractors and partners should place a permanent plaque in the most visible part of the building, such as the main entrance or in front of the building. When appropriate, the plaque could contain the following sentence: “This [name of the structure] was funded by the European Union”, with the EU flag placed underneath it. Commemorative plaques must be placed in the entrance of Infrastructures such as houses, clinics, factories, institutions, training centres, roads, bridges, etc. built under the Project. For editable EU template for plaques: https://ec.europa.eu/europeaid/node/44415

An applicant is an organisation which is applying for funding.

Proof of Payment referes to a document that shows the actual defrayal of expenditure; e.g., bank account statement, bank transfer confirmation, cash receipt, etc. (HIT)

Horizontal principles, in the context of EU funded work, are core principles of importance that cut across and are relevant to all areas of the work of EU funded projects.

Written procedure is a method used by programme management bodies to make a decision. They arrive at the decision by discussing in writing and sharing documents physically at meetings.

Programming refers to the administrative mechanism used to pursue the objectives of the European Structural and Investment Funds. Multi-annual programmes – known as operational programmes – ensure consistency and continuity over a seven-year period. Programmes relate to specific geographical areas at international, national or sub-national level, depending on the governance arrangements in place. Programme aims include identifying strategic priorities and indicative actions, outlining financial allocations, and summarising management and control systems.

An Operational Programme is a detailed plan in which Member States set out how money from the European Structural and Investment Funds (ESIF) will be spent during the programming period. They can be drawn up for a specific region or a country-wide thematic goal (e.g., Environment). For the European Territorial Cooperation goal, cross-border or interregional operational programmes are drawn up. Member States submit their operational programmes on the basis of their Partnership Agreements. Each Operational Programme specifies which of the 11 thematic objectives that guide cohesion policy in the 2014-20 programming period will be addressed through the funding available under the Operational Programmes.

Proportionality regulates how the European Union exercises its powers. The proportionality principle means that, to achieve its aims, the EU will only take the action it needs to and no more. The principle is enshrined in the Treaty on European Union under Article 5, which states: ‘the content and form of Union action shall not exceed what is necessary to achieve the objectives of the Treaties’.

Assessment questions are specific questions used for assessing if the project is suitable for funding under the respective programme.

The term Value for Money refers to judgement on whether sufficient impact is being achieved for the money spent.

A control report summarises first level controls, findings and remarks undertaken for a given reporting period. It also summarises results of the control.

The Finance Report is part of the Progress Report. It is a periodical report on the financial progress of the project in relation to the activities carried out and accomplished achievements (deliverables, outputs). It includes information on the expenditure borne by the project partners and revenue received by them.

The project (main) output is the outcome of the activities funded, telling us what has actually been produced for the money given to the project. It can be captured by a programme output indicator, and directly contributes to the achievement of the project result.

Net revenue is cash in-flows directly paid by users for the goods or services provided by the project, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. (HIT)

A "recommendation" is not binding. A recommendation allows the institutions to make their views known and to suggest a line of action without imposing any legal obligation on those to whom it is addressed. For example when the Commission issued a recommendation that EU countries' law authorities improve their use of videoconferencing to help judicial services work better across borders, this did not have any legal consequences.

The term sparsely-populated regions refers to European areas of low population density. In the framework of the Green Paper on Territorial Cohesion, to judge whether a region is sparsely populated is based on a certain threshold (12.5 inh. /km2) of population density at the NUTS III level. The main objective of this delimitation is to provide a list of Sparsely-Populated Regions to European policymakers to assist them in the allocation of available support funds.

The term "outermost regions" refers to nine regions in the European Union: the five French overseas departments (Guadeloupe, French Guyana, Martinique, Réunion, Mayotte); the French overseas communities of Saint-Martin; the Spanish Autonomous Community of the Canary Islands; and the Portuguese autonomous regions of the Azores and Madeira. The outermost regions have to cope with a number of specific constraints such as remoteness, insularity, small size, difficult topography and climate, and economic dependence on only a few products. The combination of these factors over time severely hinders the regions' socio-economic development. The recognition of their special status in Article 349 of the Treaty on the Functioning of the European Union is based on the principles of equality and proportionality, which allow regions to be treated differently in order to take their specific circumstances into account.

Regulations are the strongest form of EU legislation. They are of general application, binding in their entirety, and directly enforceable in all Member States. Legislation relating to EU cohesion policy usually takes the form of regulations.

A legal representative is a person authorised to sign binding documents (e.g., application form, subsidy contract) on behalf of an organisation.

The programme result is the change sought (in the reference situation) in view of the specific objective to be achieved.

Risk is a potential source of error, usually understood in first level control as potential error source in the finance report of the project partner.

A Joint Secretariat is the body responsible for the day-to-day implementation of the programme. It is usually specialised in all communication ‘down’ to the project level and in processing the reporting information received from the projects.

Subcontracting is a process whereby an agreement is entered into to provide goods or services relating to tasks required for the project which cannot be carried out by the beneficiary itself, concluded between a beneficiary and one or more subcontractors for the specific needs of a project. Subcontracting comes from the principle that the beneficiaries must have the operational capacity to implement the project, and is limited to those parts of the work which cannot be carried out by the beneficiary itself. It must not concern "core" parts of the project work, and only a limited part of the project can be concluded by a subcontractor where this is necessary for the project implementation. Project management must always be considered to be a core element of the project and must not be the subject of a subcontract.

Macro-regional strategy is an integrated framework endorsed by the European Council to address common challenges faced by a defined geographical area. Single macro-regional strategy is developed for Member States and other countries located in the same geographical area benefiting from strengthened cooperation and coordination contributing to achievement of economic, social and territorial cohesion. Implementation of a macro-regioal strategy may be supported by any fund or programme operated at EU, national, regional or even local level.

A subsidy or a grant is a form of financial support extended to an economic sector or institution or individual generally with the aim of promoting economic and social policy.

Flat Rate is one of the simplified cost options, and these rates are calculated by applying a percentage fixed ex-ante to one or several other categories of eligible costs. Flat rates involve approximations of costs and are defined based on fair, equitable and verifiable calculation methods, or they are established by the Fund specific regulations. (HIT)

The Theory of Change is a programme theory approach concerned with going beyond input output descriptions and seeking to understand the theories of actors with regard to programme interventions and why they should work. As a planning tool Theory of Change helps to come up with the logic of the programme (to reconstruct the chain that links objectives of the programme, the interventions funded, the outputs achieved and the contribution of the interventions to these results): • Begin with a situation analysis (current situation) • Needs analsyis (intended situation) • Develop a theory how to get from the current situation to the intended situation • Clarify which aspect of the problem the intervention will address: define activities, outcomes, result and impact

Transparency implies that information is available in the public domain, and is accessible both in terms of its location and presentation – in a format and language that can be widely understood.

A tax is irrecoverable if you have to remit the full amount you've collected regardless of what you may have paid (in the same tax).

Project partner type refers to the classification of project partners according to their main purpose, not taking into account their legal status (which could be either public or private).

A taregt is a quantified objective expressed as a value to be reached by an indicator, usually within a given timeframe.

Budget breakdown is a process of dividing the cost of something into the different parts that make up the total amount, according to who is doing the work and to which budget lines the costs belong.

Verification means measures undertaken by FLC and the relevant programme bodies to ensure that co-financed products and services have been delivered and that expenditure declared has been paid, complies with applicable law, the Operational Programme and the conditions for support of the project.

An eligible area is the teritory defined in the Operational Programme where project activities co-financed by an Interreg programme should be implemented.