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Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy (repealed)
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1.Member States shall:
(a)within the framework of the common agricultural policy, adopt all legislative, regulatory and administrative provisions and take any other measures necessary to ensure effective protection of the financial interests of the Community, and particularly in order to:
check the genuineness and compliance of operations financed by the EAGF and the EAFRD;
prevent and pursue irregularities;
recover sums lost as a result of irregularities or negligence,
(b)set up an efficient management and control system comprising the certification of accounts and a declaration of assurance based on the signature of the person in charge of the accredited paying agency.
2.The Commission shall ensure that Member States check the legality and compliance of the expenditure referred to in Articles 3(1) and 4, and that they observe the principles of sound financial management; it shall carry out the following measures and checks in this connection:
(a)it shall check that management and control systems exist and function properly in the Member States;
(b)it shall reduce or suspend intermediate payments in full or in part and apply the requisite financial corrections, particularly where the management and control systems fail;
(c)it shall check that prefinancing is reimbursed and shall, if necessary, automatically decommit budget commitments.
3.Member States shall inform the Commission of the provisions adopted and measures taken under paragraph 1 and, with regard to rural development programmes, the measures taken for management and control in compliance with Community legislation concerning support for rural development by the EAFRD in order to protect the financial interests of the Community.
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