Commission Regulation (EC) No 718/2007Dangos y teitl llawn

Article 107 Audits of operations

1. The audits referred to in Article 105(1)(b) shall be carried out each twelve-month period from 1 July of the year following the adoption of the cross-border programme on a sample of operations selected by a method established or approved by the audit authority in agreement with the Commission.

The audits shall be carried out on the spot on the basis of documentation and records held by the final beneficiary.

The participating countries shall ensure the appropriate repartition of those audits over the implementation period.

2. The audits shall verify that the following conditions are fulfilled:

(a) the operation meets the selection criteria for the cross-border programme and has been implemented in accordance with the approval decision and fulfils any applicable conditions concerning its functionality and use or the objectives to be attained;

(b) the expenditure declared corresponds to the accounting records and supporting documents held by the final beneficiary;

(c) the expenditure declared by the final beneficiary is in compliance with Community and national rules;

(d) the public contribution has been paid to the final beneficiary in accordance with Article 40(9).

3. Where problems detected appear to be systemic in nature and therefore entail a risk for other operations under the cross-border programme, the audit authority shall ensure that further examination is carried out, including additional audits where necessary, to establish the scale of such problems. The necessary preventive and corrective action shall be taken by the relevant authorities.

4. No less than 5 % of the total expenditure declared by lead beneficiaries and certified to the Commission in the final statement of expenditure shall be audited in accordance with paragraph 2 before the closure of a cross-border programme.