1995R1663 — EN — 24.10.2001 — 003.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No1663/95
of7July1995
layingdowndetailedrulesfortheapplicationofCouncilRegulation(EEC)No729/70regardingthe
procedurefortheclearance oftheaccountsoftheEAGGFGuaranteeSection
(OJ L 158, 8.7.1995, p. 6)
Amended by:
Official Journal
No page date
►M1 Commission Regulation (EC) No 896/97 of 20 May 1997 L 128 8 21.5.1997
►M2 Commission Regulation (EC) No 2245/1999 of 22 October 1999 L 273 5 23.10.1999
►M3 Commission Regulation (EC) No 2025/2001 of 16 October 2001 L 274 3 17.10.2001
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COMMISSIONREGULATION(EC)No1663/95
of7July1995
layingdowndetailedrulesfortheapplicationofCouncilRegulation
(EEC) No 729/70 regarding the procedure for the clearance of the
accountsoftheEAGGFGuaranteeSection
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970
on the financing of the common agricultural policy (1), as last amended
by Regulation (EC) No 1287/95 (2), and in particular Articles 4 (6) and 5
(3) thereof,
Whereas the reform of the procedure for the clearance of the accounts,
put into effect by Council Regulation (EC) No 1287/95, provides for theestablishment of detailed rules regarding the certification and clearanceof the annual accounts of accredited paying agencies;
Whereas changes in the number and nature of measures financed by the
EAGGF Guarantee Section, together with changes in techniques for
recording and transmitting information, are such as to require a revision
of the nature and content of the information to be provided to theCommission for the purpose of the clearance of accounts;
Whereas Commission Regulation (EEC) No 1723/72 (
3), as last amended
by Regulation (EEC) No 295/88 (4), should therefore be repealed;
Whereas the EAGGF Committee has not delivered an opinion within the
time limit set by the chairman,
HAS ADOPTED THIS REGULATION:
Article 1
1. The limit to the number of paying agencies accredited by each
Member State, pursuant to Article 4 (2) of Regulation (EEC) No 729/70,
shall be set by the Member State after consulting the Commission. TheCommission may in particular make known any obstacle which thisnumber presents to compliance with the time limit laid down in Article 5(2) (b) of that Regulation, and to the transparency of checks on theoperation of the Fund. The Commission shall inform the Fund
Committee of the paying agencies accredited in all Member States.
2. For each paying agency, the Member State shall inform the
Commission of the authorities (‘the competent authority’) which issueand withdraw accreditation, and which set the period allowed for anynecessary adjustments within the meaning of Article 4 (4) of Regulation
(EEC) No 729/70.
3. Before accrediting any paying agency, the competent authority
shall be satisfied that the administrative and accounting arrangements ofthe body concerned offer the guarantees referred to in Article 4 (1) (a) ofRegulation (EEC) No 729/70. The criteria shall be established by theMember State and applied by the competent authority for the purpose of
accreditation, taking account of the Commission's guidelines for those
criteria as set out in the Annex. Failure to meet any criteria of significantrelevance to the paying agency's operations shall lead to the applicationof Article 4 (4) of the abovementioned Regulation.
The decision on accreditation shall be taken on the basis of an
examination covering the administrative and accounting conditions,
including those adopted to protect the Community's interests regardingadvances paid, guarantees obtained, intervention stocks and amounts to1995R1663 — EN — 24.10.2001 — 003.001 — 2
(1) OJ No L 94, 28. 4. 1970, p. 13.
(2) OJ No L 125, 8. 6. 1995, p. 1.
(3) OJ No L 186, 16. 8. 1972, p. 1.
(4) OJ No L 30, 2. 2. 1988, p. 7.
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be collected. The examination shall include, in particular, the
arrangements regarding the execution of payments, the safeguardingof the treasury, the security of computer systems, the maintenance of
accounting records, the division of duties and the adequacy of internal
and external controls, in respect of transactions financed by theGuarantee Section of the EAGGF.
4. If the competent authority is satisfied that the paying agency
examined complies with all relevant requirements, it shall proceed withits accreditation. Otherwise, it shall address to the paying agencyinstructions relating to the administrative and accounting arrangements,and in particular to any conditions the paying agency is required to fulfilbefore accreditation may be granted. Accreditation may be provisionally
granted for a period to be fixed in relation to the seriousness of the
problem pending the implementation of any requisite changes to theadministrative and accounting arrangements.
5. If accreditation is withdrawn, the Member State shall designate
another paying agency in accordance with the conditions in Article 4 ofRegulation (EEC) No 729/70 and in paragraphs 3 and 4 of this Articleand ensures that payments to beneficiaries are not interrupted.
6. The act of accreditation shall consist of a written confirmation that
the body meets the criteria for accreditation, and when relevant shall setout the instructions as to changes and the period set. It shall becommunicated to the Commission.
7. The communication provided for under Article 4 (3) of Regulation
(EEC) No 729/70 shall be provided when the paying agency is firstaccredited, and shall be accompanied by the following information inrespect of each paying agency:
— the responsibilities vested in it,
— the allocation of responsibilities between its departments,
— its relationship with other bodies, public or private, which also hold
some of the responsibilities for executing the measures under whichit charges expenditure to the Fund,
— the procedures by which claims by beneficiaries are received,
verified, and validated, and by which expenditure is authorized andpaid and accounted for,
— the provisions for internal audits.
The information to be provided where Article 4 (4) of Regulation (EEC)
No 729/70 applies shall include all instructions relating to theadministrative and accounting arrangements, and to the adaptations thepaying agency is required to carry out in order to avoid withdrawal ofaccreditation, and the period allowed for implementation.
Article 2
1. The ‘coordinating body’ referred to in Article 4 (1) (b) of
Regulation (EEC) No 729/70 shall act as the sole representative of the
Member State before the Commission for all questions relating to theEAGGF Guarantee Section concerning:
— distributing Community texts and guidelines relating thereto to the
various paying agencies and to those bodies responsible for theirimplementation,
— promoting their harmonized application,
— communicating to the Commission the information stipulated in this
Regulation and in Regulation (EEC) No 729/70.
►M3 ◄A paying agency may fulfil the role of
coordinating body provided that the two responsibilities are kept apart.In performing its tasks, the coordinating body may, in accordance withnational procedures, call on other administrative bodies or departments,in particular those with accounting or technical expertise.1995R1663 — EN — 24.10.2001 — 003.001 — 3
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2. The Member State shall communicate to the Commission
information concerning the name and the written constitution of thecoordinating body, and the administrative, accounting and internal
control conditions relating to its operation.
3.►
M2The form and content of the accounting information
referred to in ►M3Article 4(1)c of this Regulation ◄shall be
established in accordance with the procedure provided for in Article 13of Regulation (EEC) No 729/70. ◄
Article 3
1. The certificate referred to in Article 5 (1) (b) of Regulation (EEC)
No 729/70 shall be established by a department or body which isoperationally independent of the paying and coordinating agencies andwhich has the technical vocation (certifying body).
The certificate shall be based on examination of procedures and of a
sample of transactions. It shall cover compliance of payments with
Community rules only as regards the capability of the paying agencies'
administrative structures to ensure that such compliance has beenchecked before a payment is made.
The certifying body shall conduct its examination according to
internationally accepted auditing standards. The checks shall be
undertaken both during and after the end of each financial year. Before
31 January of the following year, the certifying body shall draw up thecertificate and also a report of its findings which shall in particular statewhether it has gained reasonable assurance that the accounts to betransmitted to the Commission are true, complete and accurate, and thatthe internal control procedures have operated satisfactorily.
2. Where more than one paying agency is accredited, the Member
State may rely on the attestations issued by the departments or bodieswhich certified the accounts of the respective paying agencies, providedthat it receives assurances that the scope and the standards of the auditsperformed were equivalent to the requirements laid down in paragraph
1.
3. The report referred to in paragraph 1 shall state:
— whether the paying agencies' procedures, with particular regard to
the accreditation criteria, are such as to give reasonable assurance
that the operations charged to the Fund comply with Community
rules, and what recommendations have been made for theimprovement of systems,
— whether the annual accounts referred to in Article 4 (1) (a) of this
Regulation are in accordance with the books and records of thepaying agencies,
— whether the statements of expenditure and of intervention operations
provided for in Article 5 are a materially true, complete and accurate
record of the operations charged to the Fund,
— whether the financial interests of the Community are properly
protected as regards advances paid, guarantees obtained, interventionstocks and amounts to be collected,
— whether recommendations on the improvement of systems addressed
to the paying agency have been followed up.
The report shall be accompanied by the information on the number and
qualifications of staff undertaking the audit, on the work done, on the
number of transactions examined, on the level of materiality and
confidence obtained, on the weakness found and recommendations madefor improvement, and on the operations of both the certifying body andother audit bodies, internal and external to the paying agencies, fromwhich all or part of the certifying body's assurance on the mattersreported was gained.1995R1663 — EN — 24.10.2001 — 003.001 — 4
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Article 4
1. For the purpose of the clearance of the accounts pursuant to Article
5 (2) (b) of Regulation (EEC) No 729/70, the Member States shall send
to the Commission:
(a) the annual accounts of the expenditure charged to the Guarantee
Section of the Fund and reports established pursuant to Article 5 (1)of that Regulation by each department or body;
(b) the certificates and reports established by the certifying body or
bodies;
(c) a full record of all accounting information required for statistical and
control purposes in the form and of the content established on the
basis of Article 2(3) of this Regulation.
2. The documents and the accounting information referred to in
paragraph 1 shall be sent to the Commission by 10 February of the yearfollowing the end of the financial year which it concerns. Thedocuments referred to in points (a) and (b) of paragraph 1 shall be
sent in four copies or, alternatively, in one copy together with an
electronic copy.
3. At the request of the Commission, or on the initiative of the
Member State, further information relating to the clearance of the
accounts concerned may be sent to the Commission up to a deadlinewhich the Commission shall set, taking account of the amount of workrequired to provide that information. In the absence of this information,the Commission may clear accounts on the basis of such information as
is in its possession at that deadline.
4. The Commission may accept a request for a delay in sending
information in justified cases, if it is addressed to it before the deadline.
Article 5
1. The accounts referred to in Article 4(1)(a) shall include:
(a) the expenditure summarised by item and subitem of the Community
budget;
(b) a table of differences, by item and subitem, between the expenditure
declared in the annual declaration and that declared in the monthlydeclaration for the same period in the document referred to inArticle 3(5) of Regulation (EC) No 296/96. This must be
accompanied by an explanation for each difference by subitem;
(c) the table, for the end of the financial year, referred to in Article
3(6a)(a) of Regulation (EC) No 296/96;
(d) a summary of intervention operations and a statement of the quantity
and location of stocks at the end of the financial year;
(e) confirmation that the details of each movement of intervention
storage is held on the paying agency's files;
(f) the tables, for the end of the financial year, referred to in Article
3(6a)(b) of Regulation (EC) No 296/96.
2. The reports referred to in Article 4 (1) (a) of this Regulation shall
contain the following information concerning the coordinating body andeach paying agency:
— any exceptional transactions or technical difficulties experienced
regarding the financial year concerned,
— any significant modification since the previous report of the
information in Article 1 (7).
Article 6
The supporting documents regarding the expenditure financed and the
amounts to be recovered by the EAGGF Guarantee Section, shall be1995R1663 — EN — 24.10.2001 — 003.001 — 5
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kept at the disposal of the Commission for at least three years following
that in which the Commission clears the accounts of the financial yearconcerned and, in the case where the clearance of accounts decision is
the subject of proceedings before the Court of Justice of the European
Communities, up to one year after the conclusion of those proceedings.
Article 7
1. Accounts clearance decisions as provided for in Article 5 (2) (b) of
Regulation (EEC) No 729/70 shall, without prejudice to decisions taken
subsequently in accordance with paragraph 2 (c) of that Article,
determine the amount of expenditure effected in each Member Stateduring the financial year in question which shall be recognized as beingchargeable to the EAGGF on the basis of the accounts referred to inArticle 5 (1) (b) of that Regulation and the reductions in and suspensions
of advances in respect of the financial year concerned, including
reductions as referred to in the second subparagraph of Article 4 (3) ofCommission Regulation (EC) No 296/96 (
1).
Amounts that, in accordance with accounts clearance decisions as
referred to in the first subparagraph, are recoverable from, or payable to,each Member State shall be determined by deducting advances paid
during the financial year in question from expenditure recognized for
that year in accordance with the first subparagraph. Such amounts shallbe deducted from, or added to, advances against expenditure from thesecond month following that in which the accounts clearance decision istaken.
2. The Commission shall communicate to the Member State
concerned the results of its verifications of the information supplied,together with any amendments it proposes, before 31 March followingthe end of the financial year.
3. If, for reasons attributable to the Member State concerned, the
Commission is unable to clear the accounts of a Member State before 30
April of the following year, the Commission shall notify the MemberState of those further enquiries it proposes to undertake pursuant toArticle 9 of Regulation (EEC) No 729/70.
Article 8
1. If, as a result of an enquiry, the Commission considers that
expenditure has not been effected according to Community rules, it shallnotify the Member State concerned of the results of its checks andindicate the corrective measures to be taken to ensure future compliance.
The communication shall refer to this Regulation. The Member State
shall reply within two months and the Commission may modify its
position in consequence. In justified cases, the Commission may extend
the period allowed for reply.
After expiry of the period allowed for reply, the Commission shall invite
the Member State to a bilateral discussion and the parties shallendeavour to reach agreement on the measures to be taken and on an
evaluation of the gravity of the infringement and the financial loss to the
Community. Following that discussion and any deadline after thediscussion fixed by the Commission, after consultation of the MemberStates, for the provision of further information or, where the MemberState does not accept the invitation to a meeting before the deadline setby the Commission, after that deadline has passed, the Commission shall
formally communicate its conclusions to the Member State, referring to
Commission Decision 94/442/EC (
2). Without prejudice to the fourth
subparagraph of this paragraph, that communication shall include an1995R1663 — EN — 24.10.2001 — 003.001 — 6
(1) OJ No L 39, 17. 2. 1996, p. 5.
(2) OJ L 182, 16.7.1994, p. 45.▼M1
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evaluation of any expenditure the Commission intends to exclude under
Article 5(2)(c) of Regulation (EEC) No 729/70.
The Member State shall inform the Commission as soon as possible of
the corrective measures adopted to ensure compliance with Community
rules and the date of their entry into force. The Commission shall, asappropriate, adopt one or more Decisions under Article 5(2)(c) ofRegulation (EEC) No 729/70 to exclude expenditure affected by non-compliance with Community rules up to the date of entry into force ofthe corrective measures.
2. The decisions referred to in Article 5 (2) (c) of Regulation (EEC)
No 729/70 shall be taken after an examination of any report drawn up bythe Conciliation body according to the provisions laid down in Directive94/442/EC.
3. The deductions from the Community financing as referred to in
Article 5 (2) (c) of Regulation (EEC) No 729/70 shall be made from the
advances relating to the expenditure of the second month following the
decision pursuant to that Article. However, at the Member State'srequest and where warranted by the materiality of the deductions, andafter consulting the Fund Committee, the Commission may appointsome other date.
Article 9
Regulation (EEC) No 1723/72 is hereby repealed with effect from 16
October 1995.
However, it shall remain applicable to the clearance of the accounts of
the Guarantee Fund up to those of its financial year 1995.
Article 10
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities.
It shall apply from the financial year beginning 16 October 1995.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1995R1663 — EN — 24.10.2001 — 003.001 — 7
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ANNEX
Guidelinesforcriteria foraccreditation asapayingagency
The criteria for accreditation are such that the paying agency provides sufficient
assurance concerning the proper functioning of its administrative organization
and of the system of internal control, and the maintenance of documents pursuant
to Article 4 of Regulation (EEC) No 729/70. Only the small scale of operations of
a paying agency can justify the application of simplified criteria. The non-respect
of any criteria of significant relevance to the paying agency's operations shall lead
to the application of Article 4 (4) of that Regulation.
1. The establishment of a paying agency (‘agency’) shall take the form of a
formal act which lays down the agency's powers, obligations and
responsibilities, particularly in relation to EAGGF-Guarantee expenditure,
as defined in Article 2 and 3 of Regulation (EEC) No 729/70, and which sets
out the agency's administrative structure.
2. The agency shall execute three principal functions in respect of EAGGF-
Guarantee expenditure:
(i) Authorization of payments: the objective of this function is the
establishment of the amount that shall be paid to a claimant in
conformity with Community rules.
(ii) Execution of payments: the objective of this function is the issuing of an
instruction to the agency's bankers, or, in appropriate cases, a
governmental payments office, to pay the authorized amount to the
claimant (or his assignee).
(iii) Accounting for payment: the objective of this function is the recording
of the payment in the agency's separate books of account of EAGGF
expenditure, which will normally be in the form of an electronic data
processing system, and the preparation of periodic summaries of
expenditure, including the monthly and annual declarations to the
European Commission. The books of account also record the assets
financed by the Fund, in particular concerning intervention stocks,
uncleared advances and debtors.
3. Without prejudice to the delegations provided for in point 4, the agency shall
normally dispose of two services:
(i) The internal audit service: the objective of this service or equivalent
procedure is to ensure that the agency's system of internal control
operates effectively; the internal audit service shall be independent of the
agency's other departments and shall report directly to the agency's top
management.
(ii) The technical service: the objective of this service is to verify the facts
on which payments to claimants are based; for example the facts on such
matters as the quality and characteristics of products, livestock, land etc.,
the date of delivery, the transformation into another product and other
checks of a technical nature.
The verification of these facts is assured through the operation of a control
and inspection system. A major role of the technical service is the monitoring
of this control system.
4. Part or all of the authorization function and/or the technical service may be
delegated to other bodies provided that the following conditions are fulfilled;
(i) The responsibilities and obligations of these other bodies, notably
concerning the control and verification of the compliance with
Community rules, are clearly defined.
(ii) The bodies dispose of effective systems for ensuring that they fulfil their
responsibilities in a satisfactory manner.
(iii) The bodies explicitly confirm to the agency that they in fact fulfil their
responsibilities and describe the means employed.
(iv) The agency is informed on a regular and timely basis of the results of
controls effected, so that the sufficiency of these controls may always be
taken into account before a claim is settled. The work performed shall
be described in detail in a report accompanying each claim, batch of
claims or, when appropriate, in a report covering one marketing year.
The report, shall be accompanied by an attestation of the eligibility of
the approved claims and of the nature, scope and limits of the work
done. If any physical or administrative checks are not exhaustive, but
performed on a sample of claims, the claims selected shall be identified,
the sampling method described, the results of all inspections and the
measures taken in respect of discrepancies and irregularities reported
upon. The supporting documents submitted to the agency shall be1995R1663 — EN — 24.10.2001 — 003.001 — 8
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sufficient to provide assurance that all the required checks on the
eligibility of the authorized claims have been performed.
(v) Where documents relating to the claims authorized and controls effected
are retained by the other bodies, both these bodies and the agency shall
set up procedures to ensure that the location of all such documents that
are relevant to specific payments made by the agency is recorded, and
that these documents may be made available for inspection at the
agency's offices at the request of the persons and bodies who would
normally have the right to inspect such documents, which include:
— the agency's staff who deal with the claim,
— the agency's internal audit service,— the body that attests the agency's annual declaration,— mandated officials of the European Union.
4a. With the prior agreement of the Commission and in the case of co-financed
measures only, where a large number of small payments must be made,
payments to applicants for aid may be delegated to other bodies. A written
agreement must be concluded between the paying agency and that body
specifying the nature of the information and the supporting documents to be
submitted to the paying agency and the time limit within which they must be
submitted; they must as a minimum permit the paying agency to comply with
the accreditation criteria and to meet the deadlines laid down for the
submission of monthly and annual accounts. The paying agency shall remain
responsible for the efficient management of the funds concerned and for
updating accounting records. The authorised agents of the paying agency, the
certifying body and the European Union shall have the right to examine any
evidence held by the abovementioned body and to carry out checks on
applicants for aid.
5. The agency's administrative structure shall provide for separation of the three
functions of authorization, execution and accounting for payments, each of
which shall be the responsibility of a separate administrative subunit, the
responsibilities of which are defined in an organization chart. The
administrative structure may provide for the function of the technical service
to be performed by the authorization department in appropriate cases.
The administrative subunit responsible for the execution of the payments, or
else a unit responsible for supervising it, shall have available documentaryevidence of the authorisation of claims, and of the administrative and
physical checks prescribed. The information and the evidence may be in a
summary form equivalent to that described in point 4(iv) of this Annex, and it
may be provided through a computerised system.
6. The agency shall adopt the following procedures or those offering equivalent
guarantees:
(i) The agency shall lay down detailed written procedures for the receipt,
recording and processing of claims inclusive of a description of all
documents to be used.
(ii) The division of duties shall be such that no official has responsibility
for more than one of the responsibilities for authorizing, paying or
accounting for sums charged to EAGGF, and that no official performs
one of those tasks without his work coming under the supervision of a
second official.
The responsibilities of each official shall be defined in writing,
including the setting of financial limits to his authority. Staff training
shall be appropriate, and there shall be a policy for rotating staff in
sensitive positions, or alternatively for increased supervision.
►
M2Appropriate measures must be taken to avoid a conflict of
interests where a person occupying a position of responsibility or a
sensitive position with regard to the verification, authorisation and
payment of claims on the Fund also fulfils other functions outside the
paying agency. ◄
(iii) Each official responsible for authorization shall have at his disposal a
detailed check-list of the verifications he is required to undertake, and
shall include in the supporting documents of the claim his attestation
that these checks have been performed. This attestation may be made by
electronic means subject to the conditions referred to in subparagraph
(vi). There shall be evidence of review of the work by more senior
member of staff.
(iv) A claim shall be authorized for payment only after sufficient checks
have been made to verify that it complies with Community regulations.
These checks shall include those required by the regulation governing1995R1663 — EN — 24.10.2001 — 003.001 — 9
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the specific measure under which aid is claimed, and those required
pursuant to Article 8 of Regulation (EEC) No 729/70 to prevent and
detect fraud and irregularity with particular regard to the risks
presented. The checks to be undertaken shall be specified in a check-
list, and their performance shall be attested for each claim, or for each
batch of claims.
(v) Procedures should ensure that payment is made only to the claimant, to
his bank account or to his assignee. The payment shall be executed by
the agency's banker, or, as appropriate, a governmental payments office,
or the cheque mailed, within five working days of the date of charge to
the EAGGF. Procedures shall be adopted to ensure that all payments for
which transfers are not executed, or cheques not cashed, are recredited
to the Fund. No payments shall be made in cash. The approval of the
authorizing official and/or his supervisor may be made by electronic
means, provided an appropriate level of security over these means is
ensured, and the identity of the signatory is entered in the electronic
records.
(vi)►M3The confidentiality, integrity and availability of all computer
data should be assured by measures adapted to the administrative
structure, staffing and technological environment of each individual
paying agency. The financial and technological effort should be in
proportion to the actual risks incurred.
In any computer system used, adequate procedures should be in place
for:
(a) general organisation, management and audit,
(b) physical security,
(c) logical security,
(d) systems development, programming and maintenance,
(e) routine operations,
(f) telecommunications,
(g) microcomputers,(h) contingency planning,
(i) application controls. ◄
(vii) The agency's procedures shall ensure that every change in the
Community's regulations, and in particular the rates of aid applicable,
are recorded and the instructions, databases and checklists updated in
good time.
7. Payments of advances shall be identified in the accounting records, and
procedures adopted to ensure that:
(i) Guarantees are obtained only from financial institutions, which fulfill
the conditions of Regulation (EEC) No 2220/85 (
1) and which are
approved by appropriate authorities, and deliver guarantees which
remain valid until cleared or called upon, and are met on the simple
request of the agency.
(ii) The advances are cleared within the stipulated time limits, and that those
overdue for clearing are promptly identified and the guarantees
promptly called upon.
(iii) The clearing of advances is subject to the same controls by authorizing
officers as are payments.
8. The accounting for intervention storage shall ensure that the quantities, and
associated costs, are correctly and promptly processed and recorded per
identifiable lot and in the correct account at each stage from the acceptance
of an offer to the physical disposal of the product, in compliance with the
scheme regulations, and ensure that the quantity and nature of stocks at every
location may be determined at any time. Stocks shall be physically verified
on a regular basis by persons, bodies or departments independent of the
stockkeepers.
9. Accounting procedures shall ensure that monthly and annual declarations are
complete, accurate and timely, and that any errors or omissions are detected
and corrected, in particular through checks and reconciliations performed at
intervals not exceeding three months.
10. The internal audit service shall verify that procedures adopted by the agency
are adequate to ensure that compliance with Community regulations is
verified, and that accounts are accurate, complete and timely. Verifications
may be limited to selected measures and to samples of transactions provided1995R1663 — EN — 24.10.2001 — 003.001 — 10
(1) OJ No L 205, 3. 8. 1985, p. 5.
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that an audit plan ensures that all significant areas, including the departments
responsible for authorization, are covered over a period not exceeding five
years. The service's work shall be performed according to internationally
accepted standards, shall be recorded in working papers and shall result in
reports and recommendations addressed to the agency's top management. The
audit plans and reports shall be made available to the certifying body and to
officials of the European Union mandated to undertake financial audits and
for the sole purpose of appraising the effectiveness of the internal audit
function.
11. All the above paragraphs apply, mutatis mutandis, to ‘negative expenditure’
(levies, forfeited guarantees, reimbursed payments, etc.) that the agency is
required to collect on behalf of the Guarantee Section of the EAGGF. In
particular, the agency shall set up a system for the recognition of all amounts
due to the EAGGF and for the recording in a debtors ledger of all such debts
prior to their receipt. The debtors ledger shall be inspected at regular intervals
with the aim of taking action to collect debts that are overdue.
The agency may delegate the responsibility for collecting certain categories
of negative expenditure to other bodies, subject to the conditions set out in
point 4, adapted as appropriate, and to the additional condition that the other
body reports to the agency on a regular and timely basis, not less than
monthly, on all revenues recognized and monies received.
12. The agency shall ensure that all claims received are dealt with expeditiously.1995R1663 — EN — 24.10.2001 — 003.001 — 11