Progetto

(5) The instrument for financial support for external borders and visa, as part of he

Internal Security Fund ('the ISF-Borders and Visa') constitutes a specific instrument in the context of the Schengen acquis designed to provide for burden sharing and financial support in the field of external borders and visa policy in Member States and associated States.

(6) Article 60 of Regulation (EU, Euratom) No 966/2012 of the European Parliament

and of the Council⁴ provides for rules on indirect management that are applicable where third countries, including associated States, are entrusted with budget implementation tasks.

(7) Article 17(4) of Regulation (EU) No 514/2014 provides for the eligibility of

expenditure incurred in 2014 by a Responsible Authority not yet formally designated, thereby ensuring a smooth transition between the External Borders Fund and the Internal Security Fund. Similarly it is important that the same concern be reflected in this Agreement. Given that this Agreement did not come into force before the end of 2014, it is essential to ensure the eligibility of expenditure incurred before and until the formal designation of the Responsible Authority, provided that the management and control systems applied before are essentially the same as the ones in force after the formal designation of the Responsible Authority.

(8 ) To facilitate the calculation and use of the annual contributions due by Switzerland

to the ISF-Borders and Visa, its contributions for the period 2014-2020 will be paid in five annual instalments from 2016 to 2020. From 2016 to 2018, the annual contributions are set in fixed amounts while the contribution due for the years 2019 and 2020 will be determined in 2019 on the basis of the gross domestic product of all States participating in the ISF-Borders and Visa taking into account the payments effectively made,

HAVE AGREED AS FOLLOWS:

Article 1

Scope

This Agreement sets out the supplementary rules necessary for the participation of Switzerland in the ISF- Borders and Visa in accordance with Regulation (EU) No 515/2014.

Article 2

Financial management and control

1. Switzerland shall take the necessary measures to ensure compliance with the

provisions relevant for the financial management and control which are laid down in the Treaty on the Functioning of the European Union ('TFEU') and in Union law based on the TFEU.