### if the continuity of action by the union and management needs so require , the council , acting by a qualified majority on a proposal of the commission , may authorise two or more provisional twelfths both for commitments and for payments over and above those automatically made available pursuant to paragraphs 1 and 2 . it shall forward the decision on authorisation without delay to the european parliament . the decision shall enter into force thirty days following its adoption unless the european parliament , acting by a majority of its members , decides to reduce that expenditure within those thirty days . if the european parliament decides to reduce that expenditure , the council shall review the decision on authorisation taking into account the amount approved by the european parliament . the additional twelfths shall be authorised in full and shall not be divisible . ### if the continuity of action by the union and management needs so require , the council , acting by a qualified majority on a proposal of the commission , may authorise expenditure in excess of one provisional twelfth but not exceeding the total of two provisional twelfths both for commitments and for payments over and above those automatically made available in accordance with paragraphs 1 and 2 . it shall forward the decision on authorisation without delay to the european parliament . the decision shall enter into force thirty days following its adoption unless the european parliament , acting by a majority of its component members , decides to reduce that expenditure within that time limit . if the european parliament decides to reduce that expenditure , that reduced amount shall apply . if , for a given chapter , the amount of the two provisional twelfths granted in accordance with paragraph 3 is not sufficient to cover the expenditure necessary to avoid a break in continuity of the union ' s activity in the area covered by the chapter in question , authorisation may exceptionally be given to exceed the amount of the appropriations entered in the relevant chapter of the budget of the preceding financial year . the budgetary authority shall act under the procedures provided for in paragraph 3 . however , the available overall total of the appropriations in the budget of the preceding financial year may in no circumstances be exceeded .


### the multiannual financial framework and the budget shall be drawn up and implemented in euro and the accounts shall be presented in euro . however , for the cash - flow purposes referred to in article 65 , the accounting officer and , in the case of imprest accounts , the imprest administrators , and , for the needs of the administrative management of the commission and the european external action service , the authorising officer responsible shall be authorised to carry out operations in national currencies as laid down in the delegated regulation referred to in article 199 . ### the multiannual financial framework and the budget shall be drawn up and implemented in euro and the accounts shall be presented in euro . however , for the cash - flow purposes referred to in article 65 , the accounting officer and , in the case of imprest accounts , the imprest administrators , and , for the needs of the administrative management of the commission and the european external action service , the authorising officer responsible shall be authorised to carry out operations in national currencies as laid down in the delegated regulation . the results of such currency operations shall be shown under a separate heading in the respective institution ' s accounts ; this shall apply mutatis mutandis to bodies referred to in article 200 . the commission shall assure by appropriate means that currency fluctuations in the remuneration and for reimbursements of union staff are being equalised at least at monthly intervals in order to ensure equal treatment of euro - based operations and salaries necessarily carried out in other currencies . its calculation shall be based on the infor€uro rate .


### the following shall constitute internal assigned revenue : revenue from third parties in respect of goods , services or work supplied at their request ; proceeds from the sale of vehicles , equipment , installations , materials , and scientific and technical apparatus which are being replaced or scrapped when the book value is fully depreciated ; revenue arising from the repayment of amounts wrongly paid ; proceeds from the supply of goods , services and works for other departments , institutions or bodies , including refunds by other institutions or bodies of mission allowances paid on their behalf ; insurance payments received ; revenue from the sale , letting or any other contract concerning rights connected with real estate ; revenue from the sale of publications and films , including those on an electronic medium . ### the following shall constitute internal assigned revenue : revenue from third parties in respect of goods , services or work supplied at their request ; proceeds from the sale of vehicles , equipment , installations , materials , and scientific and technical apparatus which are being replaced or scrapped when the book value is fully depreciated ; revenue arising from the repayment of amounts wrongly paid subject to article 77 ; revenue arising from interest on pre - financing subject to article 5 ; proceeds from the supply of goods , services and works for other departments , institutions or bodies , including refunds by other institutions or bodies of mission allowances paid on their behalf ; insurance payments received ; revenue from the sale , letting , reimbursement or any other contract concerning rights connected with real estate ; revenue from the sale of publications and films , including those on an electronic medium .


### the delegated regulation referred to in article 199 may specify the cases where certain revenue may be deducted from requests for payment , which shall then be passed for payment of the net amount . ### the following deductions may be made from payment requests which shall then be passed for payment of the net amount : penalties imposed on parties to procurement contracts or beneficiaries of a grant ; discounts , refunds and rebates on individual invoices and cost statements ; interest generated by pre - financing payments ; adjustments for amounts unduly paid . adjustments referred to in point of the first subparagraph may be made , by means of direct deduction , against a new payment of the same type to the same payee under the chapter , article and financial year in respect of which the excess payment was made , and which give rise to interim payments or payments of balances . to the items referred to in points and of the first subparagraph the union accounting rules shall apply .


### appropriations shall be earmarked for specific purposes by title and chapter ; the chapters shall be further subdivided into articles and items . ### appropriations shall be earmarked for specific purposes by title and chapter ; the chapters shall be further subdivided into articles and items . operating appropriations and investments shall be presented separately .


### the commission may , within its own section of the budget , transfer appropriations autonomously as detailed in article 23 or shall request the budgetary authority ' s approval for the transfer of appropriations in the cases detailed in article 24 . ### the commission may , within its own section of the budget , transfer appropriations as detailed in article 23 ; alternatively the commission or the other institutions shall request the budgetary authority ' s approval for the transfer of appropriations in the cases detailed in article 24 .


### the commission may , within its own section of the budget , autonomously : transfer commitment appropriations within each chapter ; transfer payment appropriations within each title ; as regards expenditure on staff and administration which is common to several titles , transfer appropriations from one title to another ; as regards operational expenditure , transfer appropriations between chapters within the same title , up to a maximum total of 10 % of the appropriations for the year shown on the line from which the transfer is made . ### the commission may , within its own section of the budget : transfer appropriations within articles and between articles if within the same chapter ; as regards expenditure on staff and administration , transfer appropriations from one title to another up to a maximum of 15 % of the appropriations for the year shown on the line from which the transfer is made , and up to a maximum of 35 % of the appropriations for the year shown on the line to which the transfer is made ; as regards operational expenditure , transfer appropriations between chapters within the same title , as regards the related support expenditures , between titles , chapters and articles if used for the purpose to which they have been assigned , up to a maximum total of 15 % of the appropriations for the year shown on the line from which the transfer is made ; transfer appropriations , as soon as the basic act is adopted pursuant to the procedure laid down in article 294 of the treaty on the functioning of the european union , from the ‘ provisions’ title referred to in article 43 for the cases where no basic act existed for the action concerned when the budget was established . three weeks before making the transfers referred to in points and of the first subparagraph , the commission shall inform the budgetary authority of its decision . in the event of duly substantiated reasons being raised within that three - week period by either branch of the budgetary authority , the procedure laid down in article 24 shall apply . however , during the last two months of the financial year , the commission may autonomously transfer appropriations concerning expenditure on staff , external staff and other agents from one title to another within the total limit of 5 % of the appropriations of the financial year . the commission shall inform the budgetary authority within two weeks after its decision on those transfers . the commission shall inform the budgetary authority within two weeks after its decision on transfers referred to in point of the first subparagraph . the expenditure referred to in point of the first subparagraph shall cover , for each policy area , the items referred to in article 41 .


### the commission may , within its own section of the budget , decide on the following transfer appropriations from one title to another , provided it informs immediately the budgetary authority of its decision : transfer appropriations from the ' provisions ' title referred to in article 43 , where the only condition to lift the reserve lies in the adoption of a basic act in accordance with the ordinary legislative procedure foreseen in article 294 tfeu ; in duly substantiated exceptional cases of international humanitarian disasters and crises , occurring after 1 december of the budgetary year , the commission may transfer unused budgetary appropriations for the current budgetary year still available in the budget titles falling under heading 4 of the multiannual financial framework to the budget titles concerning the crisis management aid and humanitarian aid operations . ### in duly reasoned exceptional cases of international humanitarian disasters and crises , occurring after 1 december of the budgetary year , the commission may transfer unused budgetary appropriations for the current budgetary year still available in the budget titles falling under heading 4 of the multiannual financial framework to the budget titles concerning the crisis management aid and humanitarian aid operations . in case no budgetary appropriations can be identified , the commission may make use of the budgetary appropriations for the following budgetary year in the budget titles concerning the crisis management aid and humanitarian aid operations in accordance with the principle set out in article 194 ; the commission shall inform the two branches of the budgetary authority immediately after making such transfers or such use .


### transfers by the commission submitted to the budgetary authority ### transfers by the institutions submitted to the budgetary authority


### the commission shall submit its proposal of transfers simultaneously to the european parliament and the council . ### the institutions shall submit their proposals simultaneously to the two arms of the budgetary authority .


### the budgetary authority shall take decisions on transfers of appropriations as provided for in paragraphs 3 to 6 , save as otherwise provided in title i of part two . ### the budgetary authority shall take decisions on transfers of appropriations as provided for in paragraphs 3 , 4 and 6 , save as otherwise provided in title i of part two .


### save in urgent circumstances , the council , by a qualified majority , and the european parliament , shall deliberate upon the commission proposal within six weeks of the date on which the two institutions received the proposal for each transfer submitted to them . ### save in duly reasoned urgent circumstances , the council , by a qualified majority , and the european parliament , shall deliberate upon the institution’s proposal within six weeks of the date on which the two institutions received the proposal for each transfer submitted to them .


### the transfer proposal shall be approved , if within the six - week period in any of the following cases : european parliament and the council approve it ; either the european parliament or the council approves it and the other institution refrains from acting ; european parliament and the council refrain from acting or have not taken a decision contrary to the commission proposal . ### the transfer proposal shall be approved , if within the six - week period in any of the following cases : - both arms of the budgetary authority approve it ; - one of the two arms of the budgetary authority approves it and the other refrains from acting ; - both arms of the budgetary authority refrain from acting or have not taken a decision contrary to the commission proposal .


### if either the european parliament or the council has amended the transfer while the other institution has approved it or refrains from acting , or if european parliament and the council have amended the transfer , the smaller amount approved either by the european parliament or the council shall be deemed approved , unless the commission withdraws its proposal . ### if one of the two arms of the budgetary authority has amended the transfer while the other approved it or refrains from acting , or if both arms have amended the transfer , the smaller amount approved either by the european parliament or the council shall be deemed approved , unless the institution withdraws its proposal .


### specific , measurable , achievable , relevant and timed objectives shall be set for all sectors of activity covered by the budget . achievement of those objectives shall be monitored by performance indicators for each activity and information shall be provided by the spending authorities to the budgetary authority . such information shall be provided annually and at the latest in the documents accompanying the draft budget . ### specific , measurable , achievable , relevant and timed objectives shall be set for all sectors of activity covered by the budget . achievement of those objectives shall be monitored by performance indicators for each activity and information shall be provided by the spending authorities to the budgetary authority . such information , as referred to in article 34 , shall be provided annually and at the latest in the documents accompanying the draft budget .


### in order to reduce the risk of fraud and irregularities , the financial statement referred to in paragraph 1 shall provide information on the internal control system set up , an assessment of the risk involved , as well as existing and planned fraud prevention and protection measures . ### in order to reduce the risk of fraud and irregularities , the financial statement referred to in paragraph 1 shall provide information on the internal control system set up , an estimate of the costs and benefits of controls implied by such systems and an assessment of the risk involved , as well as existing and planned fraud prevention and protection measures .


### in order to reduce the risk of fraud and irregularities , the financial statement referred to in paragraph 1 shall provide information on the internal control system set up , an assessment of the risk involved , as well as existing and planned fraud prevention and protection measures . ### in order to reduce the risk of fraud and irregularities , the financial statement referred to in paragraph 1 shall provide and record information on the internal control system set up , an assessment of the risk involved , as well as existing and planned fraud prevention and protection measures .


### prevention , detection and correction of fraud and irregularities ; ### notwithstanding the responsibilities of the financial actors as defined in chapter 3 , prevention , detection and follow - up of correction of fraud and irregularities ;


### this information shall be made available with due observance of the requirements of confidentiality , in particular the protection of personal data as laid down in directive 95 / 46 / ec of the european parliament and of the council and regulation no 45 / 2001 of the european parliament and of the council , and of the requirements of security , taking into account the specificities of each management mode referred to in article 53 and where applicable in conformity with the relevant sector - specific rules . ### this information shall be made available with due observance of the requirements of confidentiality , in particular the protection of personal data as laid down in directive 95 / 46 / ec of the european parliament and of the council of 24 october 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data and regulation no 45 / 2001 of the european parliament and of the council of 18 december 2001 on the protection of individuals with regard to the processing of personal data by the community institutions and bodies and on the free movement of such data , and of the requirements of security , taking into account the specificities of each management mode referred to in article 53 and where applicable in conformity with the relevant sector - specific rules .


### the european parliament , the european council and the council , the court of justice of the european union , the court of auditors , the economic and social committee , the committee of the regions , the ombudsman , the european data - protection supervisor and the eeas shall draw up an estimate of their revenue and expenditure , which they shall send to the commission before 1 july each year . ### the european parliament , the european council and the council , the court of justice of the european union , the court of auditors , the economic and social committee , the committee of the regions , the ombudsman , the european data - protection supervisor and the eeas shall draw up an estimate of their revenue and expenditure , which they shall send to the commission and in parallel , for information , to the budgetary authority before 1 july each year .


### these estimates shall also be sent by these institutions to the budgetary authority for information by no later than 1 july each year . the commission shall draw up its own estimates , which it shall also send to the budgetary authority by the same date . ### the commission shall draw up its own estimates , which it shall also send to the budgetary authority directly after adoption .


### each body referred to in article 200 shall , in accordance with the instrument establishing it , send to the commission and the budgetary authority by 31 march each year an estimate of its revenue and expenditure , including the establishment plan , and its draft work programme . ### each body referred to in article 200 shall , in accordance with the instrument establishing it , send to the commission and the budgetary authority in parallel and no later than 31 march each year an estimate of its revenue and expenditure , including the establishment plan , and its draft work programme .


### until the conciliation committee referred to in article 314 of the tfeu is convened , the commission may , on its own initiative or if requested by the other institutions , each in respect of its own section , present simultaneously to the european parliament and the council letters of amendment to the draft budget on the basis of new information which was not available at the time the draft was established , including a letter of amendment updating expenditure estimates for agriculture . ### on the basis of new information which was not available at the time the draft budget was established , the commission may , on its own initiative or if requested by the other institutions , each in respect of its own section , present simultaneously to the european parliament and the council letters of amendment to the draft budget in due time before the conciliation committee referred to in article 314 of the tfeu is convened . this might include a letter of amendment updating expenditure estimates for agriculture .


### if there are unavoidable , exceptional or unforeseen circumstances , the commission may present draft amending budgets . ### the commission shall present one draft amending budget for each of the following purposes : surplus , revision of the forecast of traditional own resources and value added tax and gross national income bases , increase in the forecast of revenue and decrease in payment appropriations , as well as amending budgets for mobilising the european solidarity fund . if there are unavoidable , exceptional or unforeseen circumstances , the commission may present one additional draft amending budget per year .


### the budget shall show : in the general statement of revenue and expenditure : the estimated revenue of the union for the financial year concerned ; the estimated revenue for the preceding financial year and the revenue for year n - 2 ; the commitment and payment appropriations for the financial year concerned ; the commitment and payment appropriations for the preceding financial year ; the expenditure committed and the expenditure paid in year n – 2 ; appropriate remarks on each subdivision , as set out in article 41 ; in each section of the budget , the revenue and expenditure shall be shown in the same structure as in point ; as regards staff : or each section of the budget , an establishment plan setting the number of posts for each grade in each category and in each service and the number of permanent and temporary posts authorised within the limits of the budget appropriations ; an establishment plan for staff paid from the research and technological development appropriations for direct action and an establishment plan for staff paid from the same appropriations for indirect action ; the establishment plans shall be classified by category and grade and shall distinguish between permanent and temporary posts , authorised within the limits of the budget appropriations ; as regards scientific and technical staff , the classification may be based on groups of grades , in accordance with the conditions laid down in each budget ; the establishment plan must specify the number of highly qualified technical or scientific personnel who are accorded special advantages under the specific provisions of the staff regulations ; an establishment plan setting the number of posts by grade and by category for each body referred to in article 200 which receives a grant charged to the budget . the establishment plans shall show next to the number of posts authorised for the financial year the number authorised for the preceding year ; as regards borrowing - and - lending operations : in the general statement of revenue , the budget lines corresponding to the relevant operations and intended to record any reimbursements received from beneficiaries who initially defaulted , leading to activation of the performance guarantee . these lines shall carry a token entry ' pro memoria ' and be accompanied by appropriate remarks ; in the commission section : - the budget lines containing the union ' s performance guarantees in respect of the operations concerned . these lines shall carry a token entry ' pro memoria ' , so long as no effective charge which has to be covered by definitive resources has arisen ; - remarks giving the reference to the basic act and the volume of the operations envisaged , the duration and the financial guarantee given by the union in respect of these operations ; in a document annexed to the commission section , as an indication : - ongoing capital operations and debt management ; - the capital operations and debt management for the financial year concerned ; the total amount of cfsp expenditure shall be entered into one budget chapter , entitled cfsp , with specific budgetary articles . those articles shall cover cfsp expenditure and shall contain specific budget lines identifying at least the single major missions . ### the budget shall show : in the general statement of revenue and expenditure : the estimated revenue of the union for the financial year concerned ; the estimated revenue for the preceding financial year and the revenue for year n - 2 ; the commitment and payment appropriations for the financial year concerned ; he commitment and payment appropriations for the preceding financial year ; the expenditure committed and the expenditure paid in year n – 2 ; appropriate remarks on each subdivision , as set out in article 41 ; in each section of the budget , the revenue and expenditure shall be shown in the same structure as in point ; as regards staff : for each section of the budget , an establishment plan providing a comprehensive presentation of the entire human resources and setting the number of posts for each grade in each category and in each service and the number of permanent and temporary posts authorised within the limits of the budget appropriations , and including contract agents as well as local agents ; an establishment plan for staff paid from the research and technological development appropriations for direct action and an establishment plan for staff paid from the same appropriations for indirect action ; the establishment plans shall be classified by category and grade and shall distinguish between permanent and temporary posts , authorised within the limits of the budget appropriations ; as regards scientific and technical staff , the classification may be based on groups of grades , in accordance with the conditions laid down in each budget ; the establishment plan must specify the number of highly qualified technical or scientific personnel who are accorded special advantages under the specific provisions of the staff regulations ; an establishment plan setting the number of posts by grade and by category for each body referred to in article 200 which receives a grant charged to the budget . the establishment plans shall show next to the number of posts authorised for the financial year the number authorised for the preceding year ; as regards borrowing - and - lending operations : in the general statement of revenue , the budget lines corresponding to the relevant operations , in particular the implementation of financial instruments and intended to record any reimbursements received from beneficiaries who initially defaulted leading to activation of the performance guarantee as well as any revenue arising from the implementation of financial instruments . these lines shall carry a token entry ' pro memoria ' and be accompanied by appropriate remarks ; in the commission section : - the budget lines containing the union ' s performance guarantees and financial instruments in respect of the operations concerned . these lines shall carry a token entry ' pro memoria ' , so long as no effective charge which has to be covered by definitive resources has arisen ; - remarks giving the reference to the basic act and the volume of the operations envisaged , the duration and the financial guarantee given , or other financial instrument implemented by the union in respect of these operations ; - a comprehensive calculation of the rate of overall funds dedicated to financial instruments in relation to the union ' s budget ; in a document annexed to the commission section , as an indication : - all equity participations by means of financial instruments or ppp which shall be accompanied by specific remarks on their performance ; - ongoing capital operations and debt management ; - the capital operations and debt management for the financial year concerned ; the total amount of cfsp expenditure shall be entered into one budget chapter , entitled cfsp , with specific budgetary articles . those articles shall cover cfsp expenditure and shall contain specific budget lines identifying at least the single major missions ; all revenue and expenditure under the respective european development fund shall be entered under a special budget heading within the commission section .


### article 49 where by implementation of an act of the union the appropriations available in the budget or the allocations available in the multiannual financial framework would be exceeded , such act may be implemented in financial terms only after the budget has been amended and , if necessary , the financial framework has been appropriately revised . ### article 49 where by implementation of an act of the union the appropriations available in the budget or the allocations available in the multiannual financial framework would be exceeded , such act may be implemented in financial terms only after the budget has been amended and , if necessary , the financial framework has been appropriately revised . for the purposes of this article , and notwithstanding article 4 , an act of the union shall be deemed to exist where borrowing or lending operations affect the global mff margin ) of any present or future years to which the multiannual financial framework applies .


### where by implementation of an act of the union the appropriations available in the budget or the allocations available in the multiannual financial framework would be exceeded , such act may be implemented in financial terms only after the budget has been amended and , if necessary , the financial framework has been appropriately revised . ### where by implementation of an act of the union the appropriations available in the budget or the allocations available in the multiannual financial framework would be exceeded , such act may be implemented in financial terms only after the budget has been amended and , if necessary , the financial framework has been appropriately revised . for the purposes of this article , and notwithstanding article 4 , an act of the union shall be deemed to exist where borrowing or lending operations affect the margin of any present or future years to which the multiannual financial framework applies .


### the member states shall cooperate with the commission so that the appropriations are used in accordance with the principle of sound financial management . ### the member states shall cooperate with the commission so that the appropriations are used in accordance with the principle of sound financial management and shall perform their control and audit obligations in accordance with article 317 of the treaty on the functioning of the european union .


### a basic act is a legal act which provides a legal basis for the action and for the implementation of the corresponding expenditure entered in the budget . ### a basic act is a legal act which provides a legal basis for the action and for the implementation of the corresponding expenditure entered in the budget . article 2 applies .


### in application of title v of the treaty on european union , a basic act may take one of the forms specified in articles 26 , 28 , 29 , 31 , 33 and 37 of the treaty on european union . ### in application of title v of the treaty on european union , a basic act may take one of the following forms : - council decision necessary for defining and implementing the common foreign and security policy teu ) ; - council decision on operational action required by the international situation teu ) ; - council decision defining the union’s approach to a particular matter of geographical or thematic nature ; - council decisions defining a union action or position , or implementing such action or position 1st - 3rd indents teu ) or on the appointment of a special representative 4th indent , art . 33 teu ) ; - conclusion of agreements with one or more states or international organisations .


### appropriations for preparatory measures in the field of title v of the treaty on european union . these measures shall be limited to a short period of time and shall be designed to establish the conditions for union action in fulfilment of the objectives of the cfsp and for the adoption of the necessary legal instruments . for the purpose of union crisis management operations , preparatory measures are designed inter alia to assess the operational requirements , to provide for a rapid initial deployment of resources , or to establish the conditions on the ground for the launching of the operation . preparatory measures shall be agreed by the council , on a proposal by the high representative of the union for foreign affairs and security policy . in order to ensure the rapid implementation of preparatory measures , the high representative shall inform the commission as early as possible on the council ' s intention to launch a preparatory measure and in particular of the estimated resources required for this purpose . in conformity with this regulation , the commission shall take all the necessary measures to ensure a rapid disbursement of the funds . ### appropriations for preparatory measures in the field of title v of the treaty on european union . these measures shall be limited to a short period of time and shall be designed to establish the conditions for european union action in fulfilment of the objectives of the cfsp and for the adoption of the necessary legal instruments ; for the purpose of union crisis management operations , preparatory measures are designed inter alia to assess the operational requirements , to provide for a rapid initial deployment of resources , or to establish the conditions on the ground for the launching of the operation . preparatory measures shall be agreed by the council , in full association with the commission on a proposal by the high representative of the union for foreign affairs and security policy . in order to ensure the rapid implementation of preparatory measures , the high representative of the union for foreign affairs and security policy shall inform the european parliament and the commission as early as possible on the council ' s intention to launch a preparatory measure and in particular of the estimated resources required for this purpose . in conformity with the provisions of this regulation , the commission shall take all the necessary measures to ensure a rapid disbursement of the funds ;


### all financial actors and any other person involved in budget implementation , management , audit or control shall be prohibited from taking any action which may bring their own interests into conflict with those of the union . should such a case arise , the person concerned must refrain from such actions and refer the matter to the competent authority . ### all financial actors and any other person involved in budget implementation and management , including acts preparatory thereto , audit or control shall be prohibited from taking any action which may bring their own interests into conflict with those of the union . should such a case arise , the person in question must refrain from such actions and refer the matter to his hierarchical superior who shall confirm in writing whether a conflict of interests exists . where a conflict of interest is found to exist , the person subject to such interest shall cease all his / her activities in the pending matter . the hierarchical superior shall personally take any further appropriate action .


### there is a conflict of interests where the impartial and objective exercise of the functions of a financial actor or other person , as referred to in paragraph 1 , is compromised for reasons involving family , emotional life , political or national affinity , economic interest or any other shared interest with the beneficiary . ### there is a conflict of interests where the impartial and objective exercise of the functions of a financial actor or other person , as referred to in paragraph 1 , is or might in the public perception be compromised for reasons involving family , emotional life , political or national affinity , economic interest or any other shared interest with the beneficiary . acts likely to be vitiated by a conflict of interest may take inter alia one of the following forms : granting oneself or any third parties related by blood , kin or by any other specific properties unjustified direct or indirect advantages ; refusing to grant a potential beneficiary , recipient , candidate or tenderer the rights or advantages to which he is entitled or to grant these in excess ; committing undue or wrongful acts or failing to carry out acts that are mandatory . a conflict of interest shall be deemed to exist , where a potential beneficiary , applicant , candidate or tenderer is a member of staff covered by the staff regulations , a contract agent , local agent or seconded national expert .


### by its departments , by union delegations in accordance with the second paragraph of article 53 , or through executive agencies referred to in article 59 ; ### by its departments , by its staff in the union delegations under the supervision of the respective head of delegation , in accordance with the second paragraph of article 53 , or through executive agencies referred to in article 59 ;


### indirectly , in shared management with member states or by entrusting budget implementation tasks to : third countries or the bodies they have designated ; international organisations and their agencies ; financial institutions entrusted with the implementation of financial instruments pursuant to title viii ; the european investment bank and the european investment fund or any other subsidiary of the bank ; bodies referred to in articles 200 and 201 ; public law bodies or bodies governed by private law with a public service mission as far as these latter provide adequate financial guarantees ; bodies governed by private law of a member state , entrusted with the implementation of a public and private partnership and providing adequate financial guarantees ; persons entrusted with the implementation of specific actions pursuant to title v of the treaty on the european union , and identified in the relevant basic act within the meaning of article 51 of this regulation . ### indirectly , in shared management with member states or , subject to a specific provision in the basic act which shall also set out , other than in the cases of and , the type of implementing partners and types of operations , by entrusting certain specified budget implementation tasks to : third countries or the bodies they have designated ; international organisations and their agencies ; the european investment bank and the european investment fund ; bodies referred to in articles 196b and 196c ; public law bodies or bodies governed by private law with a public service mission as far as these latter provide adequate financial guarantees ; persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to title v of the treaty on the european union , and identified in the relevant basic act within the meaning of article 51 of this regulation . the commission remains responsible for the implementation of the budget and shall inform the european parliament on the operations carried out by the entities under points to . the financial statement shall provide a full justification for the choice of a particular entity under points to .


### indirectly , in shared management with member states or by entrusting budget implementation tasks to : third countries or the bodies they have designated ; international organisations and their agencies ; financial institutions entrusted with the implementation of financial instruments pursuant to title viii ; the european investment bank and the european investment fund or any other subsidiary of the bank ; bodies referred to in articles 200 and 201 ; public law bodies or bodies governed by private law with a public service mission as far as these latter provide adequate financial guarantees ; bodies governed by private law of a member state , entrusted with the implementation of a public and private partnership and providing adequate financial guarantees ; persons entrusted with the implementation of specific actions pursuant to title v of the treaty on the european union , and identified in the relevant basic act within the meaning of article 51 of this regulation . ### indirectly , in shared management with member states or , subject to a specific provision in the basic act which shall also set out the specific implementing partners and types of operations , by entrusting certain specified budget implementation tasks to : third countries or the bodies they have designated ; international organisations and their agencies ; the european investment bank and the european investment fund ; public law bodies or bodies governed by private law with a public service mission as far as these latter provide adequate financial guarantees ; persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to title v of the treaty on the european union , and identified in the relevant basic act within the meaning of article 51 of this regulation . the commission remains responsible for the implementation of the budget and shall inform the european parliament on the operations carried out by the entities under points to . the financial statement of this regulation shall provide a full justification for the choice of a particular entity under points to .


### bodies accredited pursuant to paragraph 3 of this article shall provide the commission by 1 february of the following financial year with : their accounts drawn up for the expenditure made in the execution of the tasks entrusted ; a summary of the results of all available audits and controls carried out , including an analysis of systematic or recurrent weaknesses as well as corrective actions taken or planned ; a management declaration of assurance as to the completeness , accuracy and veracity of the accounts , the proper functioning of the internal control systems as well as to the legality and regularity of the underlying transactions and the respect of the principle of sound financial management ; the opinion of an independent audit body on the management declaration of assurance mentioned in point of this paragraph , covering all its elements . if a member state has accredited more than one body per policy area , it shall by 15 february of the following financial year provide the commission with a synthesis report consisting of an overview at national level of all management declarations of assurance and the independent audit opinions thereon , prepared for the policy area concerned . ### content , timing and audit of data reported by the accredited bodies member states at the appropriate level , by means of bodies accredited pursuant to paragraph 3 , shall provide the commission by 1st march with accounting information at the level of the accredited bodies on the expenditure made in the execution of the tasks entrusted and presented to the commission for reimbursement including the balance received from the commission for which reimbursement has not yet been requested , and sums disbursed for which recovery procedures are underway . this information shall be accompanied by a statement of management responsibilities confirming that , in the opinion of those in charge of the management of the funds : - this information is properly presented , complete and accurate ; - the expenditure has been used for its intended purpose , as defined in the sector - specific rules ; - the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions ; an annex to the declaration shall present the error rate per funds and an analysis of the errors as well as reservations , if the error rate exceeds 2% ; a summary of the results of the available final audit reports and checks carried out , including an analysis of recurrent or systemic weaknesses , as well as corrective actions taken or planned and their results . these documents shall be accompanied by an opinion of an independent audit body , drawn up in accordance with internationally accepted audit standards , on whether the accounting information gives a true and fair view , and expenditure for which reimbursement has been requested from the commission is legal and regular as well as on the proper functioning of the control procedures put in place . this opinion shall state if the examination puts in doubt the assertions made in the statement of management responsibilities . an annex to the opinion shall present the error rate per funds and an analysis of the errors as well as reservations . the member states shall indicate replacements of the person providing the management declaration to the commission ' s competent authorising officer by delegation who shall display these changes in his annual activity report . if a member state has accredited more than one body with responsibility for ex ante and ex post verifications per policy area , it shall by 15 march of the following financial year provide the commission with a synthesis report consisting of an overview at national level of all management declarations of assurance and the corresponding independent audit opinions , prepared for the policy area concerned . member states shall , at the appropriate level , publish this information no later than 6 months after having provided the commission with these documents .


### the commission shall : apply procedures for a timely financial clearance of the accounts of the accredited bodies , ensuring that the accounts are complete , accurate and true and allowing for a timely clearance of irregularity cases ; exclude from union financing expenditure the disbursements which have been made in breach of union law . sector - specific rules shall govern the conditions under which payments to member states may be suspended by the commission or interrupted by the authorising officer by delegation . ### the commission shall : supervise that member states fulfil their responsibilities , in particular by carrying out audits during the programme implementation ; apply procedures for a timely clearance of the accounts of the accredited bodies , establishing whether the accounts are complete , accurate and true ; exclude from union financing expenditure for which disbursements have been made in breach of union law ; interrupt payment deadlines or suspend payments in case of significant deficiencies in the supervision by a member state or in the functioning of a body accredited in accordance with paragraph 3 . the commission may decide to lift all or part of the interruption or suspension on payments after a member state has presented its observations . the decision to lift the interruption or suspension shall be annexed to the commission ' s summary of the annual reports referred to in article 63 .


### entities and persons entrusted with budget implementation tasks pursuant to point of article 55 shall respect the principles of sound financial management , transparency and non - discrimination and ensure the visibility of union action when they manage union funds . they shall guarantee a level of protection of the financial interests of the union equivalent to that required under this regulation when they manage union funds , with due consideration : the nature of the tasks entrusted and the amounts involved ; the financial risks involved ; the level of assurance stemming from their systems , rules and procedures together with the measures taken by the commission to supervise and support the implementation of the tasks entrusted . ### entities and persons other than the member states entrusted with budget implementation tasks pursuant to point of article 55 shall respect the principles of sound financial management , transparency and non - discrimination and ensure the visibility of union action when they manage union funds . they shall guarantee a level of protection of the financial interests of the union equivalent to that required under this regulation when they manage union funds , with due consideration for : the nature of the tasks entrusted and the amounts involved ; the financial risks involved ; the level of assurance stemming from their systems , rules and procedures together with the measures taken by the commission to supervise and support the implementation of the tasks entrusted .


### to this effect , the entities and persons referred to in paragraph 1 shall : set up and ensure the functioning of an effective and efficient internal control system ; use an annual accounting system providing accurate , complete and reliable information in a timely manner ; be subject to an independent external audit , performed in accordance with internationally accepted auditing standards by an audit service functionally independent of the entity or person concerned ; apply appropriate rules and procedures for providing financing from union funds through grants , procurement and financial instruments ; ensure , in conformity with article 31 , annual ex post publication of recipients of union funds ; ensure a reasonable protection of personal data . persons referred to in point of article 55 may satisfy these requirements progressively . they shall adopt their financial rules with the commission ' s prior consent . they shall adopt their financial rules with the commission ' s prior consent . ### to this effect , the entities and persons referred to in paragraph 1 shall , in accordance with standards equivalent to the union’s standards or , where such do not exist , internationally accepted standards and defined in the agreement entrusting the certain specified implementation tasks : set up and ensure the functioning of an effective and efficient internal control system ; use an annual accounting system providing accurate , complete and reliable information in a timely manner ; be subject to an independent external audit , performed in accordance with internationally accepted auditing standards by an audit service functionally independent of the entity or person concerned ; apply appropriate rules and procedures for providing financing from union funds through grants , procurement and financial instruments ; ensure ex post publication of recipients of union funds in conformity with article 31 and the protection of personal data which satisfies the principles laid down in directive 95 / 46 / ec ; ensure a reasonable protection of personal data as laid down in directive 95 / 46 / ec and regulation no 45 / 2001 . notwithstanding articles 196b and 196c , they shall adopt their financial rules with the commission ' s prior consent .


### the authorising officer by delegation may interrupt payments to such entities or persons fully or partially for the purpose of further verifications when information comes to his notice indicating a significant deficiency in the functioning of the internal control system or that the expenditure certified by the entity or person concerned is linked to a serious irregularity and has not been corrected , provided the interruption is necessary to prevent significant damage to the financial interests of the union . ### notwithstanding article 89 , the authorising officer by delegation may interrupt payments to such entities or persons fully or partially for the purpose of further verifications when information comes to his notice indicating a significant deficiency in the functioning of the internal control system or that the expenditure certified by the entity or person concerned is linked to a serious irregularity and has not been corrected , provided the interruption is necessary to prevent significant damage to the financial interests of the union .


### the entities and persons referred to in paragraph 1 shall provide the commission with : a report on the implementation of the tasks entrusted ; their accounts drawn up for the expenditure made in the execution of the tasks entrusted ; a summary of the results of all available audits and controls carried out , including an analysis of systematic or recurrent weaknesses as well as corrective actions taken or planned ; a management declaration of assurance as to the completeness , accuracy and veracity of the accounts , the proper functioning of the internal control systems as well as to the legality and regularity of the underlying transactions and the respect of the principle of sound financial management ; the opinion of an independent audit body on the management declaration of assurance mentioned in point of this paragraph , covering all its elements . these elements shall be provided to the commission by 1 february of the following financial year with the exception of the audit opinion referred to in point . the latter shall be provided at the latest by 15 march . these obligations shall be without prejudice to the provisions made in agreements concluded with international organisations and third countries . these provisions shall include at least the obligation of such entities to provide the commission annually with a statement that , during the financial year concerned , the union contribution has been used and accounted for in compliance with the requirements set out in paragraph 2 of this article and the obligations laid down in the agreement concluded with the relevant international organisations or third country . ### the entities and persons referred to in paragraph 1 shall provide the commission with : a report on the implementation of the tasks entrusted ; their accounts drawn up for the expenditure made in the execution of the tasks entrusted ; a summary of the results of all available audits and controls carried out , including an analysis of systematic or recurrent weaknesses as well as corrective actions taken or planned ; a management declaration providing reasonable assurance that : the information contained in the accounts presents a true and fair view ; the expenditure referred in the accounts has been used for its intended purpose and in accordance with the principle of sound financial management ; the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions . these documents shall be accompanied by an opinion of an independent audit body , drawn up in accordance with the internationally accepted audit standards , on the completeness , accuracy and veracity of the accounts , on the proper functioning of the control procedures put in place as well as on the legality and regularity of the underlying transactions . the audit body shall report if the examination puts in doubt the assertions made in the management declaration . these elements shall be provided to the commission by 1 february of the following financial year with the exception of the audit opinion referred to in point . the latter shall be provided at the latest by 15 march . these obligations shall be without prejudice to the provisions made in agreements concluded with international organisations and third countries . these provisions shall include at least the obligation of such entities to provide the commission annually with a statement that , during the financial year concerned , the union contribution has been used and accounted for in compliance with the requirements set out in paragraph 2 of this article and the obligations laid down in the agreement concluded with the relevant international organisations or third country , audited by the competent supreme audit institution . the results of the audits shall be made available to the discharge authority . this shall not preclude the european court of auditors ' as well as the olaf ' s powers of investigation .


### the commission shall : ensure supervision and evaluation of the implementation of the tasks entrusted ; apply procedures for a timely financial clearance of the accounts of the entrusted entities and persons , ensuring that the accounts are complete , accurate and true and allowing for a timely clearance of irregularity cases ; exclude from union financing expenditure the disbursements which have been made in breach of the applicable rules . ### the commission shall : supervise that these entities fulfil their responsibilities , in particular by carrying out audits and evaluations during the programme implementation ; apply procedures for a timely clearance of the accounts of the entities , establishing whether the accounts are complete , accurate and true and allowing for a timely clearance of irregularity cases ; exclude from union financing expenditure for which disbursements have been made in breach of union law .


### the ex ante controls shall be carried by the members of staff other than those responsible for the ex post controls . the members of staff responsible for the ex post controls shall not be subordinate to the members of staff responsible for the ex ante controls . ### the ex ante controls shall be carried by the members of staff other than those responsible for the ex post controls . the members of staff responsible for the ex post controls shall not be subordinate to the members of staff responsible for the ex ante controls , and vice versa .


### any member of staff , involved in the financial management and control of transactions who considers that a decision he is required by his superior to apply or to agree to is irregular or contrary to the principles of sound financial management or the professional rules he is required to observe , shall inform the authorising officer by delegation in writing and , if that officer fails to take action , the panel referred to in article 70 . in the event of any illegal activity , fraud or corruption which may harm the interests of the union , he shall inform the authorities and bodies designated by the applicable legislation . ### any member of staff , involved in the financial management and control of transactions who considers that a decision he is required by his superior to apply or to agree to is irregular or contrary to the principles of sound financial management or the professional rules he is required to observe , shall inform the authorising officer by delegation in writing and , if that officer fails to take action , the panel referred to in article 70 . in the event of any illegal activity , fraud or corruption which may harm the interests of the union , he shall inform the authorities and bodies designated by the applicable legislation . that obligation shall also apply , in cases where fraud is detected , to the independent auditors who carry out procedures in connection with the financial management of the union . in making such a disclosure they shall not incur liability .


### each authorising officer , accounting officer or imprest administrator shall be liable to disciplinary action and payment of compensation as laid down in the staff regulations , without prejudice to articles 70 , 71 and 72 . in the event of illegal activity , fraud or corruption which may harm the interests of the union , the matter shall be submitted to the authorities and bodies designated by the applicable legislation . ### each authorising officer , accounting officer or imprest administrator shall be liable to disciplinary action and payment of compensation as laid down in the staff regulations , without prejudice to articles 70 , 71 and 72 . in the event of illegal activity , fraud or corruption which may harm the interests of the union , the matter shall be submitted to the authorities and bodies designated by the applicable legislation , in particular to the european anti - fraud office .


### authorisation of recovery ### recovery and financial corrections


### where the responsible authorising officer by delegation is planning to waive or partially waive recovery of an established amount receivable , he shall ensure that the waiver is in order and complies with the principle of sound financial management and proportionality in accordance with the procedures and the criteria laid down in the delegated regulation referred to in article 199 . the waiver decision must be substantiated . the authorising officer may delegate the decision only as laid down in the delegated regulation referred to in article 199 . the responsible authorising officer may cancel an established amount receivable in full or in part in accordance with the conditions set out in the delegated regulation referred to in article 199 . the partial cancellation of an established amount receivable does not imply a waiver of a union ' s established entitlement . ### where the competent authorising officer by delegation is planning to waive or partially waive recovery of an established amount receivable , he / she shall ensure that the waiver is in order and complies with the principle of sound financial management and proportionality . the waiver decision must be substantiated and shall be presented in the annual activity reports referred to in article 63 . the authorising officer may delegate the decision . the competent authorising officer may cancel an established amount receivable in full or in part . the partial cancellation of an established amount receivable does not imply a waiver of a union ' s established entitlement . the rules for the procedures and criteria of a waiver decision as well as the delegation thereof by the authorising officer and the cancellation of an established amount shall be laid down in the delegated regulations .


### article 89 the validation , authorisation and payment of expenditure must be completed within the time limits laid down in the delegated regulation referred to in article 199 , which shall also specify the circumstances in which creditors paid late are entitled to receive default interest charged to the line from which the principal was paid . ### article 89 the time allowed for making payments shall be : 90 calendar days for contracts , grant agreements and decisions involving technical services or actions which are particularly complex to evaluate and for which payment depends on the approval of a report or a certificate ; 60 calendar days for all other contracts , grant agreements and decisions for which payment depends on the approval of a report or a certificate ; 30 calendar days in all other cases . these time limits shall not apply to payments under shared management . 2 . the competent authorising officer by delegation or subdelegation may suspend the time limit for payment by informing creditors , at any time that the payment request cannot be met , either because the amount is not due or because the appropriate supporting documents have not been produced . if information comes to the notice of the competent authorising officer which puts in doubt the eligibility of expenditure appearing in a payment request , the authorising officer may suspend the time limit for payment for the purpose of further verification , including on the spot checks , in order to ascertain , prior to payment , that the expenditure has been indeed eligible . the creditors concerned shall be informed in writing of the reasons for suspension . where the suspension exceeds two months , the competent clearing committee shall take a decision on the continuity of the suspension upon an application by the creditor . on expiry of the time limits laid down in paragraph 1 , the creditor shall be entitled to interest .


### it systems ### it systems and e - government


### each year the institution shall forward a report to the discharge authority containing a summary of the number and type of internal audits carried out , the recommendations made and the action taken on those recommendations . ### all audit reports shall be made available to the discharge authority immediately after they are issued . each year the institution shall forward a report to the discharge authority containing a summary of the number and type of internal audits carried out , the recommendations made and the action taken on those recommendations . in the summary report , the discharge authority shall be made aware of any review that recommends changes to any major acquisition project or grant or that recommends significant budgetary savings . where an audit progress committee exists , this shall report in a separate statement on the impact of actions taken on the recommendations for the institution as well as further possible improvements .


### this title does not apply to grants , without prejudice to articles 100 to 103 , or to service contracts concluded between the commission , on the one hand , and the european investment bank , the european investment fund or any other subsidiary of the european investment bank , on the other hand . ### this title does not apply to grants , without prejudice to articles 100 to 103 .


### a central database shall be set up and operated by the commission in compliance with union rules on the protection of personal data . the database shall contain details of candidates and tenderers which is in one of the situations referred to in article 100 , point of article 103 and point of article 103 . it shall be common to the institutions , executive agencies and the bodies referred to in article 200 . ### a central database shall be set up and operated by the commission in compliance with union rules on the protection of personal data . the database shall contain details of candidates and tenderers which are in one of the situations referred to in article 100 , 101 , point of article 103 and point of article 103 . it shall be common to the institutions , executive agencies and the bodies referred to in article 200 , as well as publicly accessible . the discharge authority shall be informed of the number of cases reported for entry and , where this differs , actually entered into the database .


### the contracting authority shall notify all candidates or tenderers whose applications or tenders are rejected of the grounds on which the decision was taken , and all tenderers who meet the exclusion and the selection criteria and who make a request in writing of the characteristics and relative advantages of the successful tender and the name of the tenderer to whom the contract is awarded . however , certain details need not be disclosed where disclosure would hinder application of the law , would be contrary to the public interest or would harm the legitimate business interests of public or private undertakings or could distort fair competition between those undertakings . ### the contracting authority shall notify all candidates or tenderers whose applications or tenders are rejected of the grounds on which the decision was taken as well as the date on which the standstill period referred to in article 112 lapses , and all tenderers who meet the exclusion and the selection criteria and who make a request in writing of the characteristics and relative advantages of the successful tender and the name of the tenderer to whom the contract is awarded . however , certain details need not be disclosed where disclosure would hinder application of the law , would be contrary to the public interest or would harm the legitimate business interests of public or private undertakings or could distort fair competition between those undertakings .


### the contracting authority may , if it deems it appropriate and proportionate , require contractors to lodge such a guarantee in order to : ensure full performance of the contract or limit the financial risks connected with payment of pre - financing . ### other than in the case of very low value contracts , the contracting authority may , if it deems it appropriate and proportionate on a case - by - case basis and subject to a risk - analysis , require contractors to lodge such a guarantee in order to : ensure full performance of the contract or limit the financial risks connected with payment of pre - financing . the commission may define criteria for the risk analysis in delegated regulations .


### the functioning of a body which pursues an aim of general european interest or has an objective forming part of a union policy . ### the functioning of a body which pursues an aim of general european interest or has an objective forming part of , and acts in support of , a union policy .


### financial instruments as referred to in title viii of part one , as well as shareholdings or equity participations in international financial institutions such as the european bank for reconstruction and development or specialised union bodies such as the european investment fund ; ### financial instruments as referred to in title viii of part one , loans , risk - sharing instruments of the union or the union’s financial contributions to such instruments , equity instruments on the basis of the private investor’s principle and quasi equity financing , as well as shareholdings or equity participations in international financial institutions such as the european bank for reconstruction and development or specialised union bodies such as the european investment fund ;


### grants may take any of the following forms : reimbursement of a specified proportion of the eligible costs actually incurred ; lump sums ; standard scale of unit costs ; flat - rate financing ; a combination of the forms referred to in points to . ### grants may take any of the following forms : reimbursement of a specified proportion of the eligible part of the total costs actually incurred ; reimbursement of a specified proportion of standard scale of unit costs ; lump sums ; flat - rate financing ; a combination of the forms referred to in points to . when determining the appropriate form of a grant , the potential beneficiaries’ interests and accounting methods shall be taken into account to the greatest possible extent , if they correspond to international standards . for the purposes of this regulation , ‘ very low value grants’ shall be grants not exceeding eur 5 000 and ‘ low value grants’ shall be grants not exceeding eur 50 000 .


### grants must involve co - financing without prejudice to the specific rules laid down in title iv of part two . grants shall not exceed an overall ceiling expressed in terms of an absolute value which is established on the basis of estimated eligible costs . the grant shall not exceed the eligible costs . ### grants must involve co - financing without prejudice to the specific rules laid down in title iv of part two . the beneficiary may substitute other sources of funding from third parties to its own financial resources , provided that the co - financing principle is respected .


### grants may not have the purpose or effect of producing a profit within the framework of the action or the work programme of the beneficiary . the first subparagraph shall not apply to : actions the objective of which is the reinforcement of the financial capacity of a beneficiary or the generation of an income ; study , research or training scholarships paid to natural persons ; ### grants may not have the purpose or effect of producing a profit within the framework of the action or the work programme of the beneficiary . the first subparagraph shall not apply to : actions the objective of which is the reinforcement of the financial capacity of a beneficiary or actions which generate an income to ensure their sustainability after the period of union financing provided for in the grant decision or agreement ; study , research or training scholarships paid to natural persons and other direct support paid to natural persons in most need , such as refugees and unemployed persons ; grants based on flat rates and / or lump sums and / or unit costs where these comply with with the conditions set out in article 116a ; low value grants . where a profit is made , the commission shall be entitled to recover the percentage of the profit corresponding to the union contribution to the eligible costs actually incurred by the beneficiary to carry out the action or work programme .


### the first subparagraph shall not apply to crisis management aid , civil protection operations and humanitarian aid operations . ### the first subparagraph shall not apply to crisis management aid , in particular civil protection operations carried out in this context and humanitarian aid operations .


### grant applications shall be submitted in writing . ### grant applications shall be submitted in writing or , where appropriate , in a secure electronic format . the commission shall provide , where it deems it feasible , the possibility for online applications .


### articles 100 to 103 shall also apply to grant applicants . applicants must certify that they are not in one of the situations referred to in articles 100 to 103 . however , the authorising officer may refrain from requiring such certification , as specified in the delegated regulation referred to in article 199 , for any of the following : very low valued grants ; when such certification has recently been provided in another award procedure ; when there is a material impossibility to provide such certification . ### articles 100 to 103 shall also apply to grant applicants . applicants must certify that they are not in one of the situations referred to in articles 100 to 103 . however , the authorising officer shall not require such certification , for any of the following : low valued grants ; when such certification has recently been provided in another award procedure ;


### articles 100 to 103 shall also apply to grant applicants . applicants must certify that they are not in one of the situations referred to in articles 100 to 103 . however , the authorising officer may refrain from requiring such certification , as specified in the delegated regulation referred to in article 199 , for any of the following : very low valued grants ; when such certification has recently been provided in another award procedure ; when there is a material impossibility to provide such certification . ### articles 100 to 103 shall also apply to grant applicants . applicants must certify that they are not in one of the situations referred to in articles 100 to 103 . however , the authorising officer may refrain from requiring such certification , for any of the following : very low valued grants ; when such certification has recently been provided in another award procedure .


### the authorising officer responsible may , if he deems it appropriate and proportionate , require the beneficiary to lodge a guarantee in advance in order to limit the financial risks connected with the payment of pre - financing . ### the authorising officer responsible may , if he deems it appropriate and proportionate on a case - by - case basis and subject to risk analysis , require the beneficiary to lodge a guarantee in advance in order to limit the financial risks connected with the payment of pre - financing . guarantees shall not be required in the case of very low value grants .


### where substantial errors , irregularities or fraud are committed during the award procedure or the implementation of the grant and after the beneficiary has been given the opportunity to make his observations , the responsible authorising officer may take any of the measures referred to in article 110 . ### where the award procedure proves to have been subject to substantial errors , irregularities or fraud , the authorising officer responsible shall suspend the procedure and may take whatever measures are necessary , including the cancellation of the procedure . he shall inform olaf immediately of suspected cases of fraud .


### where controls or audits demonstrate that recurrent errors exist for one beneficiary which also have an impact on non - audited projects in which that beneficiary participates or has participated , the authorising officer may extend the findings to those non audited projects which may still be audited in accordance with the grant agreement and request the reimbursement of the related amount . the beneficiary may , within an adversarial procedure , challenge the correction applied by demonstrating that the calculation of corrections is erroneous and submitting new calculation . ### in case of systemic or recurrent errors or irregularities attributable to the beneficiary , exceeding the materiality threshold and having an impact on a number of grants awarded to him under similar conditions , the authorising officer responsible may suspend implementation of all the grants concerned or , where appropriate , terminate the concerned grant agreements or decisions with this beneficiary , in proportion to the seriousness of the errors , irregularities or fraud , after the beneficiary has been given the opportunity to make his observations . the authorising officer responsible may in addition proceed to financial corrections for all the grants concerned by the systemic or recurrent errors or irregularities referred to above that may be audited in accordance with the grant agreements or decisions by either reducing the grants or recovering amounts unduly paid under the grant agreements or decisions . the amount of financial corrections to be made shall be determined wherever possible and practicable on the basis of costs unduly declared as eligible for each grant concerned . where it is not possible or practicable to quantify the amount of ineligible costs precisely , financial corrections may be based on extrapolation or a flat rate , having regard to the principle of proportionality . 3a . the beneficiary may , within an adversarial procedure before the competent clearing committee , challenge decisions taken under paragraphs 2a to 3 . the beneficiary may in particular challenge the correction applied by demonstrating on the balance of probabilities that no recurrent or systemic error exists or that the calculation of corrections is erroneous and submit a new calculation . the beneficiary shall be entitled to the reimbursement of the cost of legal representation to the extent to which he succeeds .


### for the purposes of this regulation , ' prizes ' shall mean financial contributions awarded following contests . ### prizes are financial contributions given as rewards following contests .


### prizes are subject to the principles of transparency and equal treatment . ### prizes are subject to the principles of transparency and equal treatment and must promote the achievement of european added value . prizes in excess of an amount of eur 1 000 000 may only be awarded subject to a basic act , to which articles 288 and 289 tfeu apply , expressly laying down the conditions for participation , the award criteria , the amount of the price as well as the procedure for the selection of the evaluating experts . prizes shall lapse automatically at the lapse of the regulation laying down the multiannual financial framework in which their implementation started or five years following their publication , whichever is the later . revenue arising from the lapse of a prize shall be treated as internal revenue


### prizes shall be awarded by the responsible authorising officer or by a jury . they shall be free to decide whether or not to award prizes depending on their appraisal of the quality of the entries by reference to the rules of the contest . ### entries in a contest shall be evaluated by a panel of experts on the basis of the published rules of the contest . prizes shall then be awarded by the authorising officer responsible , on the basis of the evaluation provided by the panel of experts , who are free to decide whether or not to recommend the award of prizes , depending on their appraisal of the quality of the entries . the competent authorising officer by delegation shall annex the award decision together with a list of the experts participating in the evaluation and a justification of their selection to his annual activity report .


### the commission may implement financial instruments in direct management mode , or in indirect management mode by entrusting tasks to the entities referred to in points and of article 55 . ### unless expressly provided for otherwise in the basic act which also defines the statute and nature of any operator to which the management is entrusted , the commission must not implement financial instruments in indirect management mode by entrusting tasks to the entities referred to in points , and of article 55 . the commission shall remain responsible for the operations and operational decisions taken in the management of the financial instruments .


### each agreement between an entity referred to in point and of article 55 and a financial intermediary referred to in paragraph 3 shall provide expressly for the commission and the court of auditors to exercise their powers of control , on documents and on the premises and on information , even stored on electronic media , over all third parties who have received union funds . ### each agreement between an entity referred to in point and of article 55 and a financial intermediary referred to in paragraph 3 shall provide expressly for the access of the commission and the court of auditors and olaf to exercise their powers of control , to documents and to the premises and on information , even stored on electronic media , of all third parties who have received and / or are involved in the management of union funds .


### the financial statements referred to in article 132 shall comply with the union accounting rules as adopted by the accounting officer of the commission and shall present a true and fair view of the assets and liabilities , charges , income and cash flow . ### the financial statements referred to in article 132 shall comply with the international accounting standards applicable to the public sector and shall present a true and fair view of the assets and liabilities , charges , income and cash flow .


### article 135 the financial statements referred to in article 132 shall present information , including accounting policies , in a manner that provides relevant , reliable , comparable and understandable information . they shall be drawn up in compliance with the generally accepted accounting principles as outlined in the union ' s accounting rules . ### article 135 the financial statements referred to in article 132 shall present information , including accounting policies , in a manner that provides relevant , reliable , comparable and understandable information . they shall be drawn up in compliance with the generally accepted accounting principles as outlined in the union ' s accounting rules , and in keeping with international accounting standards applicable to the public sector .


### the notes to the financial statements shall supplement and comment on the information presented in the statements referred to in paragraph 1 and shall supply all the additional information prescribed by the relevant accounting rules adopted by the accounting officer of the commission . ### the notes to the financial statements shall supplement and comment on the information presented in the statements referred to in paragraph 1 and shall supply all the requisite additional information .


### the accounting officer of the commission shall consolidate these provisional accounts with the commission ' s provisional accounts and shall send to the court of auditors , by 31 march of the following year at the latest , the commission ' s and the consolidated union provisional accounts . ### the accounting officer of the commission shall consolidate these provisional accounts with the commission ' s provisional accounts and shall send to the court of auditors and the european parliament , by 31 march of the following year at the latest , the commission ' s and the consolidated union provisional accounts .


### the court of auditors shall , by the 1st of june at the latest , make its observations on the provisional accounts of other institutions and each body referred to in article 132 , and by 15 june at the latest , make its observations on the provisional accounts of the commission and the consolidated union provisional accounts . ### the court of auditors shall , by the 1st of june at the latest , make its observations on the provisional accounts of other institutions and each body referred to in article 132 , and make its observations on the provisional accounts of the commission and the consolidated union provisional accounts .


### the examination by the court of auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner shall have regard to the provisions of the treaties , the budget , this regulation , the delegated regulation referred to in article 199 and all other acts adopted pursuant to the treaties . ### the examination by the court of auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner shall have regard to the provisions of the treaties , the budget , this regulation , the delegated regulation referred to in article 199 and all other acts adopted pursuant to the treaties . the court of auditors shall carry out its audit task on a permanent basis .


### in the performance of its task , the court of auditors shall be entitled to consult , in the manner provided for in article 152 , all documents and information relating to the financial management of departments or bodies with regard to operations financed or co - financed by the union . it shall have the power to make enquiries of any official responsible for a revenue or expenditure operation and to use any of the auditing procedures appropriate to the aforementioned departments or bodies . the audit in the member states shall be carried out in conjunction with the national audit institutions or , where they do not have the necessary powers , with the national departments responsible . the court of auditors and the national audit bodies of the member states shall cooperate in a spirit of trust while maintaining their independence . ### in the performance of its task , the court of auditors shall be entitled to consult , in the manner provided for in article 152 , all documents and information relating to the financial management of departments or bodies with regard to operations financed or co - financed by the union . it shall have the power to make enquiries of any official responsible for a revenue or expenditure operation and to use any of the auditing procedures appropriate to the aforementioned departments or bodies . the audit in the member states shall be carried out in conjunction with the national audit institutions or , where they do not have the necessary powers , with the national departments responsible . the court of auditors and the national audit bodies of the member states shall cooperate in a spirit of trust while maintaining their independence . pursuant to the second subparagraph of article 287 , the european court of auditors shall call on the national audit institutions to issue an audit certificate concerning shared management measures which shall form part of the discharge procedure . that certificate shall be drawn up in accordance with international audit standards applicable to the public sector .


### in the performance of its task , the court of auditors shall be entitled to consult , in the manner provided for in article 152 , all documents and information relating to the financial management of departments or bodies with regard to operations financed or co - financed by the union . it shall have the power to make enquiries of any official responsible for a revenue or expenditure operation and to use any of the auditing procedures appropriate to the aforementioned departments or bodies . the audit in the member states shall be carried out in conjunction with the national audit institutions or , where they do not have the necessary powers , with the national departments responsible . the court of auditors and the national audit bodies of the member states shall cooperate in a spirit of trust while maintaining their independence . ### in the performance of its task , the court of auditors shall be entitled to consult , in the manner provided for in article 152 , all documents and information relating to the financial management of departments or bodies with regard to operations financed or co - financed by the union . it shall have the power to make enquiries of any official responsible for a revenue or expenditure operation and to use any of the auditing procedures appropriate to the aforementioned departments or bodies . the audit in the member states shall be carried out in liaison with the national audit institutions or , where they do not have the necessary powers , with the competent national departments . the court of auditors and the national audit institutions of the member states shall cooperate in a spirit of trust while maintaining their independence .


### the court of auditors shall transmit to the commission by 15 june and to other institutions and bodies referred to in article 132 by 1st of june at the latest , any observations which are , in its opinion , such that they should appear in the annual report . these observations must remain confidential and are subject to a contradictory procedure . each institution shall address its reply to the court of auditors by 15 october at the latest . the replies of institutions other than the commission shall be sent to the commission at the same time . ### the court of auditors shall transmit to the commission by 15 june and to other institutions and bodies referred to in article 132 by 15 june at the latest , any observations which are , in its opinion , such that they should appear in the annual report or should be taken into account by the competent accounting officer when preparing the accounts . these observations must remain confidential and are subject to a contradictory procedure . each institution shall address its reply to the court of auditors by 30 september at the latest . the replies of institutions other than the commission shall be sent to the commission at the same time .


### the european parliament , upon a recommendation from the council acting by a qualified majority , shall , before 15 may of year n + &#160 ; 2 give a discharge to the commission in respect of the implementation of the budget for year n . ### the european parliament , upon a recommendation from the council acting by a qualified majority forwarded before 31 october of year n + 1 , shall , before 31 december of year n + 1 give a discharge to the commission in respect of the implementation of the budget for year n .


### the commission shall submit to the european parliament , at the latter ' s request , any information required for the smooth application of the discharge procedure for the financial year concerned , in accordance with article 319 of the tfeu . ### the institutions of the union as defined by article 1 shall submit to the european parliament , at the latter ' s request , any information required for the smooth application of the discharge procedure for the financial year concerned , in accordance with article 319 and the third sentence of article 335 of the tfeu .


### the treatment of repayments by the member states and the implications for the amount of contributions from the funds shall be governed by the regulations referred to in article 167 . ### in accordance with the regulations referred to in article 167 the repayment in full or in part of payments on account in respect of a given operation shall not have the effect of reducing the contribution from the funds to the operation concerned . amounts repaid shall constitute assigned revenue in accordance with article 18 . the treatment of repayments by the member states and the implications for the amount of contributions from the funds shall be governed by the regulations referred to in article 167 .


### shall be treated as assigned revenue within the meaning of article 18 the appropriations relating to : grant and procurement procedures in which the jrc participates or ; activities of the jrc on behalf of third parties or ; activities undertaken under an administrative agreement with other institutions or other commission ' s departments for the provision of technical - scientific services . ### appropriations relating to grant and procurement procedures in which the jrc participates or ; activities of the jrc on behalf of third parties or ; activities undertaken under an administrative agreement with other institutions or other commission ' s departments for the provision of technical - scientific services . shall be treated as assigned revenue within the meaning of article 18 .


### the institutions shall inform the budgetary authority as soon as possible of any building project likely to have significant financial implications for the budget . if either branch of the budgetary authority intends to issue an opinion , it shall within two weeks after receipt of the information on the building project notify the institution concerned of its intention to issue such an opinion . failing a reply , the institution concerned may proceed with the planned operation under its administrative autonomy , subject to article 335 of the tfeu and article 185 of the euratom treaty with regard to union representation . that opinion shall be forwarded to the institution concerned within two weeks of such notification . the institutions shall request the approval of the budgetary authority for the acquisition of real state assets or any other building project , financed through a loan . ### the institutions and bodies within the meaning of article 196b shall inform the budgetary authority as soon as possible of any building project likely to have significant financial implications for the budget . in particular , they shall inform the budgetary authority in connection with : construction and renovation projects , before invitations to tender are issued , about the specific planning arrangements and , once detailed cost plans have been drawn up but before contracts are concluded , about all aspects with a bearing on decision - taking and about project financing , as well as , after completion of the works , about the extent to which the works were carried out as planned and on budget ; other building contracts , before invitations to tender are issued or any prospecting of the local market takes place , about the specific building surface area required and , before contracts are concluded , about all aspects with a bearing on decision - taking and about project financing , as well as , after completion of projects , about budget compliance and project implementation . the approval of the budgetary authority shall be obtained before contracts are concluded . the budgetary authority shall take a decision on giving approval within eight weeks after receipt of the application and of all information with a bearing on decision - taking . in the remarks on expenditure as classified in accordance with article 41 , reference shall be made to each building project within the meaning of this article , together with the respective amounts entered in the budget .


### article 199 the commission shall adopt a delegated regulation on detailed rules for the application of this regulation in accordance with articles 202 , 203 and 204 . the delegated regulation shall include rules on the implementation of administrative expenditure relating to the appropriations provided in the budget for the euratom supply agency . ### article 199 the commission shall be empowered to adopt a delegated regulation in accordance with articles 202 , 203 and 204 concerning detailed rules to supplement or amend certain non - essential elements of the following articles : 5 , 8 , 9 , 16 , 18 , 19 , 20 , 22 , 23 , 25 , 26 , 27 , 30 , 31 , 34 , 38 , 41 , 46 , 50 , 51 , 55 , 56 , 57 , 58 , 61 , 63 , 65 , 66 , 67 , 69 , 70 , 71 , 72 , 75 , 76 , 77 , 77b , 78 , 80 , 81 , 82 , 83 , 84 , 85 , 86 , 87 , 89 , 90 , 92 , 93 , 94 , 95 , 97 , 98 , 99 , 100 , 101 , 102 , 103 , 104 , 105 , 106 , 107 , 108 , 109 , 110 , 111 , 112 , 113 , 114 , 115 , 116 , 117 , 117a , 118 , 119 , 120 , 122 , 123 , 124 , 125 , 126 , 126a , 126c , 127 , 133 , 135 , 136 , 137 , 139 , 142 , 145 , 147 , 148 , 173 , 175 , 176 , 178 , 179 , 180 , 181 , 182 , 183 , 184 , 187 , 188 , 191 , 193 , 195 , 196 , 197 . an annex to this regulation lists the objectives , content and scope of the delegation with reference to the aforementioned articles . the delegated regulation shall also include rules on the implementation of administrative expenditure relating to the appropriations provided in the budget for the euratom supply agency .


### the commission shall adopt a delegated regulation on detailed rules for the application of this regulation in accordance with articles 202 , 203 and 204 . the delegated regulation shall include rules on the implementation of administrative expenditure relating to the appropriations provided in the budget for the euratom supply agency . ### the commission shall be empowered to adopt a delegated regulation in accordance with articles 202 , 203 and 204 concerning detailed rules to supplement or amend certain non - essential elements of the following articles : 5 , 8 , 9 , 16 , 18 , 19 , 20 , 22 , 23 , 25 , 26 , 27 , 30 , 31 , 34 , 38 , 46 , 50 , 51 , 55 , 56 , 57 , 58 , 61 , 63 , 65 , 66 , 67 , 69 , 70 , 71 , 72 , 75 , 76 , 77 , 78 , 80 , 81 , 82 , 83 , 84 , 85 , 86 , 87 , 90 , 92 , 93 , 94 , 95 , 97 , 98 , 99 , 100 , 101 , 102 , 103 , 104 , 105 , 106 , 107 , 108 , 109 , 110 , 111 , 112 , 113 , 114 , 115 , 116 , 117 , 118 , 119 , 120 , 122 , 123 , 124 , 125 , 126 , 127 , 133 , 135 , 136 , 137 , 139 , 142 , 145 , 147 , 148 , 173 , 175 , 176 , 178 , 179 , 180 , 181 , 182 , 183 , 184 , 187 , 188 , 191 , 193 , 195 , 196 , 197 . the delegated regulation shall also include rules on the implementation of administrative expenditure relating to the appropriations provided in the budget for the euratom supply agency .