Council Regulation (EC) No 861/2006 (repealed)Show full title

CHAPTER VII CONTROL AND EVALUATION

Article 27 Protection of Community financial interests

1. The Commission shall ensure that, when actions financed under this Regulation are implemented, the financial interests of the Community are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and by the recovery of any amounts unduly paid and, if irregularities are detected, by effective, proportional and dissuasive penalties, in accordance with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests(1), Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities(2) and Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF)(3).

2. For the Community actions financed under this Regulation, Regulation (EC, Euratom) No 2988/95 and Regulation (Euratom, EC) No 2185/96 shall apply to any infringement of a provision of Community law, including infringements of a contractual obligation under the programme, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, on account of an unjustified item of expenditure.

3. The Commission shall reduce, suspend or recover the amount of financial assistance granted for an action if it finds irregularities, including non-compliance with the provisions of this Regulation or the individual decision or the contract or agreement granting the financial support in question, or if it transpires that, without Commission approval having being sought, the action has been subjected to change which conflicts with its nature or with its implementing conditions.

Article 28 Audits and financial corrections

1. Without prejudice to audits carried out by the Member States in accordance with national laws, regulations and administrative provisions, officials of the Commission and of the Court of Auditors, or their representatives, may carry out on-the-spot audits on actions financed by this Regulation at any time with a minimum of ten working days’ notice, except in urgent cases, for a period up to three years after the final payment made by the Commission.

Officials of the Commission and of the Court of Auditors, or their representatives, duly empowered to carry out on-the-spot audits, shall have access to the books and all other documents, including documents and metadata drawn-up or received and recorded on an electronic format relating to expenditure financed by this Regulation.

The aforementioned powers of audit shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation. Officials of the Commission and of the Court of Auditors, or their representatives, shall not take part, inter alia, in home visits or the formal questioning of persons within the framework of the national legislation of the Member State concerned. However, they shall have access to information thus obtained.

If any Community financial support granted under this Regulation is subsequently allocated to a third party as a final beneficiary, the initial beneficiary, being the recipient of the Community financial support, shall provide the Commission with all relevant information regarding the identity of that final beneficiary.

For this purpose, all related documents shall be kept available by the beneficiaries for a period up to three years after the final payment.

The Commission may also require the Member State concerned to carry out on-the-spot audits on actions financed under Articles 8 and 9. Officials of the Commission and of the Court Auditors, or their representatives, may take part in such audits.

2. If the Commission considers that Community funds have not been used in accordance with the conditions laid down in this Regulation or in any other applicable Community act, it shall notify the beneficiaries, including any final beneficiaries within the meaning of paragraph 1, who shall have one month from the date of such notification to send their observations to the Commission.

If the beneficiaries do not reply within that period or if their observations do not lead the Commission to modify its opinion, the Commission shall reduce or cancel the financial contribution granted or suspend payments.

Any amount unduly paid shall be repaid to the Commission. Interest shall be added to any sums not repaid in due time under the conditions laid down in Regulation (EC, Euratom) No 1605/2002.

3. The Commission shall ensure that suitable arrangements exist for the control and audit of the actions financed pursuant to Articles 53(7) and 165 of Regulation (EC, Euratom) No 1605/2002.

4. Under the principle of national sovereignty, only by agreement with the third country may the Commission carry out, or have carried out, financial audits of funds paid to third countries for measures financed under Article 13(a).

Article 29 Evaluation and reporting

1. The actions financed under this Regulation will be monitored regularly in order to follow their implementation.

2. The Commission shall ensure the regular, independent, external evaluation of the actions financed.

3. The Commission shall submit to the European Parliament and the Council:

(a) an interim evaluation report on the results obtained and the qualitative and quantitative aspects of the implementation of the actions financed under this Regulation no later than 31 March 2011;

(b) a Communication on the continuation of the actions financed under this Regulation no later than 30 August 2012;

(c) an ex-post evaluation report no later than 31 December 2014.

(1)

OJ L 312, 23.12.1995, p. 1.

(2)

OJ L 292, 15.11.1996, p. 2.

(3)

OJ L 136, 31.5.1999, p. 1.