2000R2222—EN—04.02.2003—002.001—1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COMMISSIONREGULATION(EC)No2222/2000
of7June2000
laying down financial rules for the application of Council Regulation (EC) No 1268/1999 on
Community support for pre-accession measures for agriculture and rural development in the
applicantcountriesofcentral andeasternEuropeinthepre-accessionperiod
(OJL253,7.10.2000,p.5)
Amendedby:
OfficialJournal
No page date
►M1CommissionRegulation(EC)No2252/2001of20November2001 L304 8 21.11.2001
►M2CommissionRegulation(EC)No188/2003of31January2003 L27 14 1.2.2003
▼B
COMMISSIONREGULATION(EC)No2222/2000
of7June2000
laying down financial rules for the application of Council Regula-
tion (EC) No 1268/1999 on Community support for pre-accessionmeasures for agriculture and rural development in the applicantcountriesofcentralandeasternEuropeinthepre-accessionperiod
THECOMMISSIONOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishingtheEuropeanCommunity,
Having regard to Council Regulation (EC) No 1268/1999 of 21 June
1999onCommunitysupportforpre-accessionmeasuresforagricultureandruraldevelopmentintheapplicantcountriesofcentralandeasternEurope in the pre-accession period(
1), and in particular Articles 9(2)
and12(2)thereof,
Whereas:
(1)Article 11(1) of Council Regulation (EC) No 1266/1999(2)o n
co-ordinating aidtotheapplicant countries inthe frameworkof
the pre-accession strategy stipulates that the Commission shallimplement the Community aid in accordance with the rules oftheFinancial Regulation applicable tothegeneral budgetoftheEuropeanCommunities(
3),andinparticularArticle114thereof,
Article9(1)ofCouncilRegulation(EC)No1268/1999stipulates
that the financial support shall comply with the principles laid
down in Council Regulation (EC) No 1258/1999 of 17 May1999 on the financing of the common agricultural policy(
4).
That Regulation concerns both the Guarantee and Guidancesections of the European Agriculture Guarantee and Guidance
Fund but sets out, in particular specific provisions relating to
theGuaranteesectionwhichfallsunderTitleVIIIoftheFinan-cialRegulation,
(2)It is envisaged that implementation of Sapard should have aninstitution building effect in the countries concerned. TheSpecial Accession Programme forAgriculture and Rural Devel-opment (Sapard) will require, for each of the 10 applicantcountries referred to in Article 1(1) of Regulation (EC) No1268/1999, the follow up of numerous projects, each of which
is generally of limited financial dimension. Delegation of
management tasks to the applicant country is desirable andArticle12(2)ofRegulation(EC)No1266/1999providesforthepossibility to confer such management to the applicant country.Sapardmanagementshouldthereforebeorganisedthroughagen-cies in the applicant countries in accordance with that
decentralisedapproach.
(3)The minimum criteria and conditions for the application ofdecentralised management under Article 12(2) of Regulation
(EC)No1266/1999arelaiddownintheAnnextothatRegula-tion. Those criteria and conditions reflect those that payingagenciesmustfulfiltobeinconformitywiththeEAGGFGuar-antee rules laid down in the Annex to Commission Regulation(EC) No 1663/95(
5), as last amended by Regulation (EC) No
2245/1999(6), in the light of the above, the agency established
by each applicant country should be organised in conformitywithEAGGF-Guaranteeprovisions.
(4)EAGGFGuaranteeprovisionslaiddowninRegulation(EC)No1663/95 concern mainly the payment function. The agencies inthe applicant countries however will need to dispose of both2000R2222—EN—04.02.2003—002.001—2
(1) OJL161,26.6.1999,p.87.
(2) OJL161,26.6.1999,p.68.
(3) OJL356,31.12.1977,p.1.
(4) OJL160,26.6.1999,p.103.
(5) OJL158,8.7.1995,p.6.
(6) OJL273,23.10.1999,p.5.
▼B
that function plus an implementation function, appropriate
criterianecessaryalsoforthatfunctionthereforeneedtobelaiddown.
(5)It is appropriate that accreditation may also be provisionallygrantedsubjecttotherespectofessential/minimumcriteria.
(6)FortheCommissiontowaivethe ex anteapprovalstipulated in
Article 12(1) of Regulation (EC) No 1266/1999 and to confer
management of the aid on an applicant country, the nationalaccreditationoftheSapardagencyintheapplicantcountryneedstobeapproved.
(7)It is appropriate, where possible, to use existing structures in
applicant countries for certain financial operations in each of
these countries there is already a national fund through whichPHAREmoniesaretransferredandparagraph2(v)oftheAnnexto Regulation (EC) No 1266/1999 provides that the nationalauthorising officer shall bear the full financial responsibility
andliability forthefunds.Itistherefore appropriate forSapard
purposesthatthenational fundineach applicant countrybethecompetent authority which accredits the Sapard agency andsupervisessubsequentcompliancewiththeaccreditation criteria.The national authorising officer shall be the contact point forfinancialinformationbetweentheCommissionandtheapplicant
country.
(8)CouncilRegulationNo1260/1999of21June1999layingdown
general provisions on the Structural Funds(1) provides in its
Article 31(2)that the first commitment shall bemade whentheCommission lays down its decision approving the assistance.
Thatmodel may, underthese circumstances andwith respect to
thetriggeringoftheCommunitybudgetcommitment,beconsid-ered as an appropriate model to be applied mutatis mutandis to
Sapard.
(9)Article 12(2)ofRegulation (EC)No1266/1999 foreseesexecu-tion ofex postcontrols by the Commission.The EAGGF
clearance of accounts procedure is an efficient systemto auditpayments of the decentralised agencies and, if necessary, torecover irregular or undue payments from the applicant coun-tries.
(10)Sapard implementing rules should be fixed in bilateral agree-ments to be concluded between the Commission and eachapplicant country. The Commission and each applicant countryshould therefore draw up a multiannual financing agreement in
whichtheconditionsdeterminingtheuseoftheSapardcontribu-
tionwillbesetout.AnnualfinancingagreementsshouldsetoutthefinancialcontributionoftheCommunity.
(11)To protect the financial interests of the Community, applicantcountries should have similar obligations as Member States
withregardtocontrolscarriedoutbyCommunityagentsonthe
Sapardmonies.
(12)Themeasures provided forin thisRegulation are in accordancewith the opinion of the Committee of the European AgricultureGuaranteeandGuidanceFund(EAGGF),2000R2222—EN—04.02.2003—002.001—3
(1) OJL161,26.6.1999,p.1.
▼B
HASADOPTEDTHISREGULATION:
CHAPTER1
GENERALPROVISIONS
Article 1
ScopeofthepresentRegulation
1. This Regulation lays down the conditions under which manage-
ment of the aid provided under Regulation (EC) No 1268/1999 isconferredtoagenciesinthe10applicantcountriesreferredtoinArticle1(1)ofthatRegulation asprovidedforunderArticle12(2)ofRegula-
tion(EC)No1266/1999.
2. The Commission intends to require the applicant countries to
respect these conditions by including themin financing agreem entsnegotiatedwitheachcountry.
Article 2
Definitions
ForthepurposesofthisRegulation:
(a) ‘applicant countries’ means the countries listed in Article 1(1) of
Regulation(EC)No1268/1999;
(b) ‘nationalfund’meansthebodyappointedbytheapplicantcountry
and placed under the responsibility of the national authorisingofficer bearing the full financial responsibility andliability forthefunds,whichactsasthecompetent authority. Thenational author-ising officer is the contact point for financial information sentbetweentheCommissionandtheapplicantcountry;
(c) ‘competentauthority’meansthebody,intheapplicantcountry,
(i) issuing, monitoring and withdrawing accreditation of the
Sapard agency for the purposes of Article 1(2) of Regulation(EC)No1663/95;and
(ii) appointingacertifyingbody;
(d) ‘Sapard agency’ means the body established by the applicant
country and operating under its responsibility which discharges
two functions: an implementing function and a paying function.
Only one Sapard agency may be accredited at any time in eachapplicantcountry;
(e) ‘certifying Body’ means the body which is operationally indepen-
dent of the Sapard agency and establishes the attestation of theaccounts,reportsonthemanagementandcontrolsystemsandveri-fiestheco-financingelements;
(f) ‘multiannualfinancingagreement’meanstheagreementsettingout
therelevantprovisionstoberespectedforSapardco-financing;
(g) ‘annual financing agreement’ means the agreement setting out the
financial allocation for the year in question on the basis of the
appropriations entered in the Community budget and supple-mentingandamending,asappropriate, provisionslaiddowneitherinthe multiannual financing agreement orin aprior annual finan-cingagreement;
(h) ‘Sapard euro account’ means the account opened by the national
authorising officer under their responsibility in a financial ortreasury institution bearing interest under normal commercialconditions to receive payments referred to in Article 8 and usedexclusivelyforSapardtransactionsandmaintainedineuro;
(i) ‘financialyear’meansthecalendaryear1Januaryto31December;
(j) ‘exceptional natural disaster’ means a natural disaster on an
unusuallylargescaleandcausingintensedamageanddestruction.2000R2222—EN—04.02.2003—002.001—4
▼M1
▼B
▼M2
▼B
CHAPTER2
CONFERRALOFMANAGEMENT
Article 3
Conferralofmanagementofaid
1. The Commission shall verify compliance with the conditions of
Article 12(2) of Regulation (EC) No 1266/1999, hereinafter referred
toas‘theconditions’, andtheprovisionsofArticles4to6ofandtheAnnextothisRegulationpriortodecidingonconferralofmanagementofaidtotheapplicantcountries.
For the establishment of compliance with the conditions and with the
provisionsmentionedinthefirstsubparagraph,theCommissionshall:
— examine the national fund procedures and structures related to the
implementationoftheSapardprogrammeandSapardagencyproce-dures and structures and, where appropriate, procedures and
structures ofother bodies to which tasksmay have been delegated
inaccordancewithArticles4(4),5(3)and6(2),
— carryoutverificationson-the-spot.
2. The decision to confer management on an agency may be made
onaprovisionalbasis,providedthereiscompliancewiththeconditionsandwiththefunctionsandcriteriaoftheAnnextothisRegulationandtheprovisionsofArticles4to6.
3. The Commission shall monitor continued compliance with the
conditions and provisions of this Regulation including the Annex. If,atanystage,theyarefoundtobenolongerfulfilled, theCommission
shallimmediatelyrevokethedecisionandshall:
— ceasetoundertakeanynewfinancialobligationsonthepartofthe
Community,
— ceasetotransfermoniestotheapplicantcountryand
— if appropriate, make financial corrections against the applicant
country.
Article 4
Tasksofthecompetentauthority
1. Thetasksofthecompetentauthorityshallincludethosesetoutin
Article 1(3), (4), (6) and (7) of Regulation (EC) No 1663/95 mutatis
mutandis. Accreditation may be provisionally granted for a period to
be fixed in relation to the seriousness of the problempending theimplementation of any requisite changes to the administrative and
accountingarrangements.
2. The decision of the competent authority to accredit the Sapard
agency shall be taken on the basis of an examination covering the
administrative, payment, control and accounting procedures and struc-
tures, which includes the arrangements regarding the selection ofprojects, tendering, contracting and the respect of procurement rulestaking account of the criteria set out in the Annex. The examinationshallbeconducted according tointernationally accepted auditingstan-
dards.Ininstanceswhereaprovisionalaccreditationisenvisaged,there
must be satisfactory compliance with the provisions of the Annex, inparticular with the obligations for written procedures, segregation ofduties, pre-project approval and pre-payment checks, payment proce-dures, accounting procedures, computer security, internal audit andwhereappropriatepublicprocurementprovisions.
3. Thecompetentauthorityshallmonitoraccreditationandwithdraw
it,withoutdelay,iftheaccreditationcriteriaarenolongerfulfilledandshallinformimmediatelytheCommission.
4. The competent authority may delegate the examination task
referred to in paragraph 2 to other bodies. In all cases the nationalauthorisingofficerretainsoverallresponsibility.2000R2222—EN—04.02.2003—002.001—5
▼B
Article 5
TasksoftheSapardagency
1. TheimplementationtaskoftheSapardagencyshallcomprise:
— callforapplications,
— project selection, except where for the measure in question in the
approved Sapard agriculture and rural development programme(hereinafterreferredtoastheprogramme),thereisonlyonedesig-nated beneficiary or the task of project selection has been grantedtoadesignatedbodyorbodies,
— checking ofapplications forapprovalofprojectsagainsttermsand
conditions, eligibility and against the content of the programme,including,whereappropriate,publicprocurementprovisions,
— layingdowncontractualobligationsbetweentheagencyandpoten-
tialbeneficiariesandtheissueofapprovaltocommencework,
— executionofon-the-spotchecksbothpriortoandfollowingproject
approval,
— follow-upactiontoensureprogressofprojectsbeingimplemented,
— reporting of progress of measures being implemented against indi-
cators.
2. ThepaymenttaskoftheSapardagencyshallcomprise:
— checkingofpaymentclaims,
— executionofon-the-spotcheckstoestablisheligibilityforpayment,
— authorisationofpayment,
— executionofpayment,
— accountingofcommitmentandpayment,— where applicable, controls on beneficiaries after payment of aid to
establishwhetherthetermsandconditionsofthegrantscontinuetoberespected.
3. Where functions of implementation and payment are not
dischargedwithinasingleadministrativestructure,theymaybecarriedout by other parties provided the provisions of paragraph 2.3 of theAnnex are respected. However, in no case may the execution of
paymentandofaccounting ofcommitment andpaymentbedelegated.
Theprojectapproval,on-the-spotcontrolsandpaymentprocessesmustbebasedonanappropriatesegregationofduties.
4. Any proposed changes in the implementing and/or paying
arrangements of the Sapard agency after its accreditation shall besubmittedbythecompetentauthoritytotheCommission.
5. WheretheSapardagencydoesnotalsodischargethefunctionsof
themanagingauthorityprovidedforinArticle9ofCommissionRegu-lation(EC)No2759/1999(
1),itshallcommunicatetothatauthoritythe
informationnecessarytoperformitsfunctions.
Article 6
Tasksofthecertifying body
1. Thetasksofthecertifyingbodyshallinclude
— delivery of an attestation on the annual account of the Sapard
agencyaswellastheSapardeuroaccount,
— reporting on an annual basis on the adequacy of management and
control systemsoftheSapard agency asregards theircapability toensure conformity of expenditure with the provisions of Article
8(1),
— verification of the existence and correctness of the national co-
financingelementreferredtoinArticle9(1).2000R2222—EN—04.02.2003—002.001—6
(1) OJL331,23.12.1999,p.51.▼M2
▼B
▼B
2. In performing thosetasks, the certifying bodyshall act in accor-
dancewiththeprovisionsofArticle3ofRegulation(EC)No1663/95andguidelinessetbytheCommission.Wherethebodyappointedisthe
national audit office or equivalent, it may delegate some or all of the
examination tasks referred to in Article 3(1) of Regulation (EC) No1663/95tootherbodies,provided thetasksare discharged effectively.Thecertifyingbodyinallcasesretainsoverallresponsibility.
3. The attestation on the annual accounts and the audit report
referred toinArticle 3(1)ofRegulation (EC) No1663/95andArticle13(1) shall be drawn up before 15 April of the following year andcommunicatedtotheCommissionby30Aprilatthelatest.
CHAPTER3
PAYMENTANDCONTROL
Article 7
Budgetcommitments
1. The Commission decision authorising signature of each annual
financing agreement shall give rise to commitment of the appropria-tionsintheCommunitybudget.
2. The first annual financing agreement may only be signed on
behalf of the Commission when the following conditions have beenmet:
— theprogrammehasbeenapprovedbytheCommission,and,
— the multiannual financing agreement has been signed by both
parties.
3. Taking account of the requirements of Article 10, the Commis-
sion shall decommit any part of a commitment which has not beensettled bythepayment onaccount orforwhichithasnotreceived anacceptablepaymentapplicationbythefollowingdates:
(a) forappropriations corresponding to the 2000annual allocation: 31
December2004;
(b) forappropriationscorrespondingtotheannualallocationfor2001:
31December2005;
(c) forappropriationscorrespondingtotheannualallocationsfor2002
and2003:31December2006;
(d) for appropriations corresponding to the annual allocations for any
year after 2003: 31 December of the second year following theyearofthefinancialcommitmentconcerned.
Article 8
PaymentsfromtheCommission
1. OnlySapardassistancegrantedinaccordancewiththeprovisions
oftheProgrammeapprovedbytheCommission,ofthemultiannualand
annual financing agreements and in accordance with the Commission
decision referred to Article 3(1), shall be subject to co-financing bytheCommunity.
2. Paymentsshall bemade ineurotothe Sapard euroaccount, and
inaccordance withthe provisionsofArticle 32(1),thsecondsubpara-graph of Article 32(2), Article 32(3) with the exception ofsubparagraphs (a), (d) and the second and third last subparagraphs,and in accordance with Article 32(4)(a) and (b) of Regulation (EC)No.1260/1999.2000R2222—EN—04.02.2003—002.001—7
▼M2
▼B
▼B
3. The Commission shall make an initial payment, on account, to
the Sapard euro account. This payment, which may be made in morethan one instalment, shall not exceed 49 % of the first annual alloca-
tion to the applicant country concerned, set out in the Annex to
CommissionDecision(EC)No1999/595/EC(
1).Thepaymentshallbe
made on condition that the Sapard agency accreditation has beensubjecttothedecisionreferredtoinArticle3(1),andafterconclusionof the multiannual financing agreement and first annual financing
agreement. The payment shall be repaid if no payment application in
accordance with Article 10 is received by the Commission within 18monthsofthedateofthatpayment.
4. Subsequentpaymentsshallbemadeinaccordance withtherules
providedforinArticle10.
5. Conversioncosts,bank charges andexchange lossesshall notbe
subjecttoCommunityco-financing.
Article 9
PaymentsfromtheSapardagency
1. PaymentsfromtheSapardagencytothebeneficiaryshall:
— bemadeinnationalcurrencyanddebitedasappropriateagainstthe
Sapard euro account. The payable order(s) to the beneficiary(ies)shallasageneralrulebeissuedwithinfivedaysofthisdebit,
— bebasedondeclarationsofexpenditureincurredbythebeneficiary.
Suchdeclarations shallincludeonlyprojectsselected andexpendi-ture paid from the date of the Commission decision referred to inArticle 3(1), except for feasibility and related studies concerningthe selected projects and for technical assistance. However, where
theCommissiondeterminesthatanexceptionalnaturaldisasterhas
occurred, payments to beneficiaries for projects related to thatdisaster may benefit from a derogation replacing the requirementconcerning declarations of expenditure by the possibility ofpaymentofadvances.
The Community contribution shall be made simultaneously with the
national contribution. However, in the case of beneficiaries in thepublic sector, the national contribution may precede that of theCommunity.
2. Thetotalpubliccontributiontotheindividualmeasuresandtothe
grants at project level shall be readily identifiable at the level of theSapardagency.
3. TheSapardagencyshallmaintainrecordsofeachpaymentwhich
shallincludeatleastthefollowinginformation:
— amountinnationalcurrency,
— thecorrespondingamountineuro.
4. Any overpayment, namely amounts in excess of the sum due,
noted by the Sapard agency, shall be recorded without delay in the
Sapardeuroaccount andsubtracted fromtheapplications forpayment
totheCommissionreferredtoinArticle10.
5. The final balance of the assistance shall be paid in accordance
with Article 32(4)(a) and (b) of Regulation (EC) No 1260/1999 andafterthedecisionsreferredtoinArticles13and14havebeenadopted.
6. The Sapard agency shall ensure timely treatment of payment
requests by beneficiaries. In cases where the interval between receiptofthecompletesupportingdocumentsandissuingofthepaymentorderexceeds three months, Community co-financing may be reduced in2000R2222—EN—04.02.2003—002.001—8
(1) OJL226,27.8.1999,p.23.▼M2
▼B
▼B
accordance with the provisions of Article 4(2) of Regulation (EC) No
296/96(1).
Article 10
ApplicationforpaymentfromtheCommunity
1. The Commission shall take into consideration only payment
applications drawn up by the Sapard agency on a quarterly basis,presented in accordance with a form established by the Commissionand transmitted by the national authorizing officer to the Commission
withinonemonthoftheendofeachquarter.However,supplementary
applicationsmaybesubmittedifjustifiedonthebasisoftheriskof:
— the net balance inthe Sapard euroaccount being exhausted before
thenextquarterlyapplicationhasbeenprocessed,or
— decommitmentbeinginvokedassetoutinArticle7(3).
2. Theapplicationsshallincludeatleastthefollowinginformation:
— the amount of expenditure paid by the Sapard agency to benefici-
aries in the previous quarter, broken down in both nationalcurrency and euro by measure and the national and Communitycontribution,
— the balance of Community funds in the Sapard euro account
followingthemostrecentdebit,
— detailsofdebtstobecollected.
3. The Commission shall verify the payment applications taking
accountoftheconditionssetoutinArticle32(3)(b),(c),(e)and(f)ofRegulation(EC)No1260/1999.
4. Expenditure declared in the payment applications shall be reim-
bursed by the Commission within, in principle, two months of anacceptable payment application being received by it, subject to the
verificationsreferredtoinparagraph(3).
Article 11
Exchangerateandinterest
1. Theconversion rate between euroandnational currency shall be
theexchangeratepublishedbytheEuropeanCentralBank:
— forpaymentsbytheSapardagency,onthelastbutoneworkingday
attheCommissioninthemonthprecedingthemonthduringwhichtheexpenditurewasrecordedintheaccountsoftheSapardagency.Thedatethepaymentorderisissuedtothebeneficiaryshallbethedateshownintheaccounts,
— foroverpaymentsbytheSapardagency,onthelastbutoneworking
day at the Commission in the month preceding the month duringwhichtheoverpaymentwasfirstnoted,
— for amounts fixed by the clearance of accounts and conformity
clearance decisions, on the last but one working day at the
Commission in the month preceding the month during which thedecisionwastaken.
2. WherethetimelimitsinArticle13(5)and14(4)arenotrespected,
any outstanding amount shall generate interest at a rate equal to theEuribor rate for three month deposits published by the EuropeanCentralBankplus1,5%points.Thatrateshallbethemonthlyaverageof the month in which the decision referred to in these articles was
notified.
3. Interest earned on the Sapard euro account shall be used exclu-
sively for the programme. Such interest shall not be subject toreductionduetoanycharges.2000R2222—EN—04.02.2003—002.001—9
(1) OJL39,17.2.1996,p.5.▼M2
▼B
▼M1
▼B
Article 12
Commissioninitiative measures
IncaseswheretheCommissiondoesnotallocatealltheannualalloca-
tion provided for in Article 7(4) of Regulation (EC) No1268/1999 tothe applicant country, use of the amount not so allocated shall bedecidedbytheCommissiononthebasisofad-hocdecisions.
Article 13
Clearance ofaccountsdecision
1. Without prejudice todecisionsreferred toinArticle 14,foreach
financial year an annual declaration presented in accordance with a
formestablishedbytheCommissiontogetherwithacertificate andan
auditreportasrequiredbyArticle6(1)(b)ofRegulation(EC)No1258/1999, Article 4 and Article 5(1)(a), (c) and (e), and Article 5(2) ofRegulation (EC) No 1663/95 shall be drawn up by the applicantcountryandtransmittedtotheCommissionbythenationalauthorisingofficer.
2. TheCommissionshallreceivethedocumentsreferredtoinpara-
graph1by30Apriloftheyearfollowingthefinancialyearconcerned.
The provisions fixed in the first and second last sentence of Article
7(1), Article 7(2)(c), and Article 7(3) and (4) of Regulation (EC) No
296/96 are applicable. For the financial year ‘n’, all transactions
recorded in the accounts of the Sapard agency in the financial year‘n’aretakenintoconsideration.
3. The Commission shall, before the 30 September of the year
followingthefinancialyearconcerned,cleartheaccountoftheSapard
agencyinaccordancewiththeprovisionsofArticle7(3)ofRegulation(EC)No1258/1999andArticle7ofRegulation(EC)No1663/95here-inafter referred to as ‘the clearance of accounts decision’. Theclearance of accounts decision shall also cover the clearance of theSapard euro account. It shall also clear the amounts to be credited to
the Sapard euro account in accordance with Article 9(4) and Article
11(3).
4. The Commission shall communicate to the applicant country
concerned the results of its verifications of the information supplied,before 31 July following the end of the financial year. If, for reasons
attributable to the applicant country concerned, the Commission is
unable to clear the accounts of an applicant country before 30September, the Commission shall notify the applicant country offurtherenquiriesitproposestoundertake.
5. The amount fixed by the clearance of accounts decision shall
normallybeaddedtoordeductedfromoneofthesubsequentpaymentsfromtheCommissiontotheapplicantcountry.Howeverincaseswheretheamounttodededucted,fixedbythisdecision,exceedsthelevelofpossible subsequent payments, the amount not covered bythe balanceshallbecreditedtotheCommissionineurowithintwomonthsofnoti-
fication of the decision. The Commission may however, on a case by
case basis, decide that any amount to be credited to it shall be offsetagainst payments due to be made by the Commission to the applicantcountryunderanyCommunityinstrument.
Article 14
Conformityclearance decision
1. The Commission shall decide on the expenditure to be excluded
from Community cofinancing where it finds that expenditure has notbeen effected in compliance with the rules referred to in Article 8(1)
hereinafterreferredtoasthe‘conformityclearancedecision’.
2. The conformity clearance procedures shall be executed in accor-
dancewiththemechanismsandproceduresinforcefortheapplicationof Article 7(4) of Regulation (EC) No 1258/1999 and Article 8 ofRegulation(EC)No1663/95.2000R2222—EN—04.02.2003—002.001—10
▼B
3. Afinancialcorrectionmayincludeapplicationofflatratecorrec-
tions in cases where controls have not correctly been established orexecutedbytheSapardagencyandrefusalofcompensationofthefore-
seenfinancialcorrectionwithexpenditureforotherprojects.
4. The amount to be recovered in accordance with the conformity
clearance decision under paragraph 1, shall be communicated to thenational authorisingofficer whoensuresthattheamountiscredited totheCommissionineurowithintwomonthsofnotificationofthedeci-sion.TheamountinthedecisionshallnotbereallocatedtotheSapard
programme. The Commission may however, on a case-by-case basis,
decide that any amount to be credited to it shall be offset againstpaymentsduetobemadebytheCommissiontotheapplicant countryunderanyCommunityinstrument.
Article 15
Recordingandcontrolprovision
1. Documents shall be kept by the Sapard agency and the national
fundatthedisposaloftheCommissionforaperiodoffiveyearsafterthedateoffinalpaymenttothebeneficiaryhasbeenmade.
2. WhencontrolsarecarriedoutunderArticle9ofRegulation(EC)
No 1268/1999, the provisions of Regulation (Euratom, EC) No 2185/
96(
1)andofArticle 8(1)and(2),andArticle 9(1)and(2)ofRegula-
tion(EC)No1258/1999,shallapply mutatismutandis fortheexecution
oftheSapardprogramme.
3. Applicant countries will be required to apply the rules contained
in Commission Regulation (EC) No 1681/94(2) concerning irregulari-
tiesandtheorganisationofaninformationsysteminthisfield.
ThisRegulation shallbebindinginitsentirety anddirectly applicable
inallMemberStates.2000R2222—EN—04.02.2003—002.001—11
(1) OJL292,15.11.1996,p.2.
(2) OJL178,12.7.1994,p.43.
▼B
ANNEX
FUNCTIONS AND CRITERIA FOR ACCREDITATION AS A SAPARD
AGENCY
1. FUNCTIONS
The Sapard agency shall execute the following principal functions in
respectofSapardexpenditure:
1.1. authorisation of commitments and payments: the objective of this func-
tion is the establishment of the amount that shall be paid to a claimant
orsupplierinconformitywiththefinancingagreementrules,inparticular
those concerning the eligibility of applications for approval and claims
for payment, compliance with commitments entered into concerning
project approvals, tendering and contracting procedures, and verification
oftheworkcarriedoutorservicessupplied;
1.2. executionofpayments:theobjectiveofthisfunctionistheissuingofan
instruction to the agency's bankers, or, in appropriate cases, a govern-
mentalpaymentsoffice,topaytheauthorisedamounttotheclaimant or
supplier(ortheirassignee);
1.3. accountingforcommitmentsandpayments:theobjectiveofthisfunction
istherecordingofthecommitmentandpaymentintheagency'sseparate
books of accounts of Sapard expenditure, which will normally be in the
formofanelectronicdataprocessingsystem,andthepreparationofperi-
odic summaries of expenditure, including the periodic and annual
declarations to the Commission. The books of account shall also record
detailsofdebtstoberecovered;
1.4. control: the objective of this function is to verify the facts on which
applications and claims are based in order to review their compliance
with the financing agreement rules and the terms and conditions of the
commitment. this control shall, where appropriate, include pre-project
selectionchecks,remeasurement,checksonquantityandqualityofgoods
orservicesdelivered,ananalysisorasamplecontrol,pre-paymentchecks
andanyspecialprovisionsmentionedinthefinancingagreementrulesas
to the eligibility of the expenditure etc. In order to establish eligibility,
these controls shall require, where appropriate, examinations of a tech-
nical nature, which can involve economic financial assessments and
checksofaspecificagricultural,technicalorscientificnature;
1.5. reporting: the objective of this function is to ensure that progressof the
individual projects and measures is reported in a way which ensure the
effectiveandefficientimplementationofthemeasure.
2. CRITERIA
2.1. TheSapardagency'sadministrativestructureshallprovideforthesepara-
tion of the three functions of authorisation, execution and accounting,
each of which shall be the responsibility of a separate administrative
sub-unit, the responsibilities of which are defined in an organisation
chart.
2.2. TheSapardagencyshalladoptthefollowingproceduresorthoseoffering
equivalentguarantees:
2.2.1. the Sapard agency shall lay down detailed written procedures for the
receipt, recording and processing of applications for project approval,
claims, invoices and supporting documents and control reports inclusive
ofadescriptionofalldocumentstobeused.
Theseproceduresshouldensurethatonlyclaimsforpaymentorprojects
selectedwhichcomplywiththecriteriaareprocessed;
2.2.2. the division of duties shall be such that no official has responsibility at
any time, for any project, for more than one of the responsibilities for
approving projects, authorising payment, paying or accounting for sums,
and that no official performs one of those tasks without their work
coming under the supervision of a second official. The responsibilities
ofeachofficialshallbedefinedinwriting,includingthesettingoffinan-
cial limits to his authority. Staff training shall be appropriate, and there
shall be a policy for rotating staff in sensitive positions, or alternatively
forincreasedsupervision;
2.2.3. each official responsible for authorisation shall have at their disposal a
detailed check-list of the verifications required to be undertaken, and
shall include in the supporting documents of the claim their attestation
thatthesecheckshavebeenperformed.Thisattestationmaybemadeby2000R2222—EN—04.02.2003—002.001—12
▼B
electronic means subject to the conditions referred to in subparagraph
2.2.6.
Thereshallbeevidenceofreviewoftheworkbyamoreseniormember
ofstaff.Theanalysis,theappraisal andapproval oftheprojectsistobe
evidencedinwriting.Theanalysisoftheprojectshouldbeguidedbythe
principlesofsoundefficientmanagement;
2.2.4. anapplication/claimshallbeauthorisedonlyaftersufficientcheckshave
beenmadetoverifiythatitcomplieswithfinancingagreementrulesand
the content of the Sapard programme. These checks shall include those
required by the rules governing the specific measure under which aid is
claimed, and those required to prevent and detect fraud and irregularity
withparticularregardtotheriskspresented.
As part of the authorisation function, applications shall be subject to
checks which establish adherence to terms and conditions, eligibility,
completeness of documents, correctness of supporting documents, date
ofreceipt,etc.
All checks to be undertaken shall be specified in a checklist, and their
performanceshallbeattestedforeachapplication/claim,orforeachbatch
ofapplications/claims.
Asregardstheservices/thegoodsdeliveredthecontrolshouldconsistof:
— documentarycontrol:toensurethatdataonquantity,qualityandprice
ofthegoodsorservicesontheinvoicereconcilewiththoseordered,
— physical control: toensurethatthequantity andquality ofthegoods
orservicesmatchthosementionedintheinvoice/claimform.
This control can also be performed on a continuous basis during the
deliveryoftheservices,i.e.wheninitialorinterimpaymentsaremade;
2.2.5. procedures should ensure that payment is made only to the claimant, to
their bank account or to their 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
chargetotheSapardbankaccount.Proceduresshallbeadoptedtoensure
that all payments for which transfers are not executed, or cheques not
cashed,arecreditedtoSapardeuroaccount.Nopaymentsshallbemade
in cash. The approval of the authorising official and/or their supervisor
may be made by electronic means, provided an appropriate level of
securityoverthesemeansisensured,andtheidentityofthesignatoryis
enteredintheelectronicrecords;
2.2.6. where applications, claims or invoices are processed using a computer
system, access to the computer system shall be protected and controlled
insuchawaythat:
— all information entered, modified, or validated, except by authorised
officialstowhomindividualpasswordsareattributed,
— nodatamaybeentered,modified, orvalidated, exceptbyauthorised
officialstowhomindividualpasswordsareattributed,
— the identity of each official entering, or modifying, data or
programmes is recorded in an operations log. Passwords shall be
changed regularly to avoid misuse. Computer systems shall be
protectedfromunauthorisedaccessbyphysicalcontrols,andthedata
shall be backed up by copies stored in a separate, safeguarded loca-
tion. Data entry shall be checked by logical checks aimed at
detectinginconsistentorextraordinarydata;
2.2.7. proceduresshouldensurethatchangesinratesofaidortermsandcondi-
tionsforthegrantofaidarerecordedandtheinstructions,databasesand
checklistsupdatedingoodtime.
2.3. partoralloftheauthorisationandthecontrolfunctionmaybedelegated
tootherbodiesprovidedthatthefollowingconditionsarefulfilled:
2.3.1. the responsibilities and obligations of these other bodies, notably
concerning thecontrolandverification ofthecompliance withfinancing
agreementrules,areclearlydefined;
2.3.2. thebodiesdisposeofeffective systemsforensuringthat theyfulfil their
responsibilitiesinasatisfactorymanner;
2.3.3. the bodies explicity confirmto the agency that they in fact fulfil their
responsibilitiesanddescribethemeansemployed;
2.3.4. theSapardagencyisinformedonaregularandtimelybasisoftheresults
ofcontrolseffected,sothatthesufficiencyofthesecontrolsmayalways
betakenintoaccountbeforeaclaimisauthorised,settledoraninvoiceis
paid.Theworkperformedshallbedescribedindetailinareportaccom-
panyingeachapplication andclaim, batchofapplications andclaimsor,
when appropriate, in a report covering one year. The report shall be2000R2222—EN—04.02.2003—002.001—13
▼B
accompanied by an attestation ofthe eligibility of the approved applica-
tions and claims and of the nature, scope and limits of the work done.
Physical and/or administrative checks performed shall be identified, the
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 be sufficient to
provide assurance that all the required checks on the eligibility of the
claimsorinvoicesauthorisedforpaymenthavebeenperformed;
2.3.5. the Sapard agency should be satisfied before the project approval and
before the payment of the expenditure, that the other bodies have
followedprocedureswhichcomplywiththecriteriasetoutinthisAnnex;
2.3.6. criteria for assessing applications and their order of priority shall be
clearlydefinedanddocumented;
2.3.7. where documents relating to the claims authorised, expenditure
committed 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
madebytheagencyisrecorded,andthatthesedocumentsmaybemade
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,whichinclude:
— theagency'sstaffwhodealwiththeclaim,
— theagency'sinternalauditservice,— thecertifyingbodythatatteststheagency'sannualdeclaration,— mandatedofficialsoftheEuropeanUnion;
2.3.8. written agreements must be concluded between the Sapard agency and
bodies to which functions of the Sapard agency have been delegated.
Such agreements should clearly identify the functions to be performed
bythedelegatedbodyandthetypeofsupportingdocumentsandreports
tobesenttotheSapardagencywithinspecifiedtimelimits.Theoverall
systemincluding the delegated functions perform ed by other bodiesshouldbesetoutinanorganisationchart.
TheagreementshouldprovideforaccessbyofficialsoftheCommission
andtheCourtofAuditorstoinformation heldbythesedelegated bodies
and for the investigation by such officials of applciations including the
carryingoutofchecksonprojectsandrecipientsofaid.
2.4. Accountingproceduresshallensurethatdeclarationsofexpendituretothe
Commission are complete, accurate (correct project or account heading)
and timely, and that any errors or omissions are detected and corrected,
in particular through cheks and reconciliation performed at intervals not
exceedingthreemonths.
The Sapard agency's accounting procedure shall ensure that the
accounting systemcan produce, in euro and national currency, for each
regional office, per project, contract or measure/sub-measure, the total
cost, the committed expenditure, part payments and balance payments.
Deadlines shall be set for the cancellation of commitments where work
has not been completed within an agreed timetable. These cancellations
shallbeappropriatelyrecordedintheaccountingsystem.
2.5. TheSapardagencyshalldisposeofaninternal auditservice.Theobjec-
tiveofthisserviceorequivalentprocedureistoensurethattheagency's
systemof internal control operates effectively; the internal audit service
shall be independent of the agency's other departments and shall report
directlytotheagency'stopmanagement. Theinternalauditserviceshall
verifythatproceduresadoptedbytheagencyareadequatetoensurethat
compliancewiththeprogrammeandfinancingagreementisverified,and
that accounts are accurate, complete and timely. Verifications may be
limitedtoselectedmeasures/sub-measuresandtosamplesoftransactions
providedthatanauditplanensuresthatallsignificantareas,includingthe
departments/bodiesresponsibleforauthorisationandthosedepartmentsto
which functions have been delegated, are covered over a period notexceeding three years. The service's work shall be performed according
to internationally accepted auditing 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 Unionmandated to undertake financial audits and for the sole
purposeofappraisingtheeffectivenessoftheinternalauditfunction.2000R2222—EN—04.02.2003—002.001—14
▼B
2.6. The rules for the procurement by public bodies of services, works and
supplies in the applicant country shall be in accordance with the rules
set out in the Commission annual(1) entitled ‘Service, supply and work
contracts concluded within the framework of Community cooperation
forthethirdcountries’withtheexceptionoftherequirementfor ex ante
approvalbytheCommission.
2.7. Services,works,machineryandsuppliesprocuredbyprivateundertakings
mustoriginateintheCommunityorinthecountriesreferredtoinArticle
1(1)of Regulation (EC) No1268/1999. The same goes for supplies and
equipmentpurchasedbyacontractorforworksorservicecontractsifthe
suppliesandequipmentaredestinedtobecomethepropertyoftheproject
oncethecontracthasbeencompleted.
2.8. As regards in particular forfeited guarantees, reimbursed payments, etc.,
the agency shall set up a systemfor the recognition of all am ounts due
to the Sapard euro acocunt and for the recording in a debtors ledger of
allsuchdebstpriortotheirreceipt.Thedebtorsledgershallbeinspected
atregularintervalswiththeaimoftakingactiontocollectdebtsthatare
overdue.
2.9. TheSapardagencyshallpublicisetheavailabilityofsupporttoallpoten-
tial project managers/operators so that they obtain as wide as possible
selection of potential project managers/operators. Standard application
forms with clear guidelines for completion and conditions for eligibity
shallbedrawnupinadvanceofthelaunchofthescheme.
2.10. Timelyprocessingofapplicationsfrombeneficiaries.2.11. TheSapardagencywillinstallanappropriatesystemtoreportprogressof
each project and measure towards pre-defined indicators. Where appro-
priate these indicators shall, with the approval of the monitoring
committee,berevised.
Action is to be taken in instances where delays in meeting pre-defined
targetsarise.Properrecordsshallbekeptofallactiontaken.
An appropriate management information system shall be used for the
speedy generation of appropriate reports on the projects and measures.
These reports shall be made available to the managing authority, the
monitoringcommitteeandtheCommissiononrequest.2000R2222—EN—04.02.2003—002.001—15
(1) SEC(1999)1801final‘Service,supplyandworkcontractsconcludedwithintheframe-
workofCommunitycooperationforthethirdcountries’.