Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund

• CELEX: Regulation (EC) No 215/2008
• Articles: 159

Article 1

This Regulation lays down the rules for the establishment and financial implementation of the resources of the 10th European Development Fund (EDF), and the presentation and auditing of the accounts.

Article 2

1.   The Commission shall assume the responsibilities of the Community defined in Article 57 of the ACP-EC Agreement and in the Overseas Association Decision.

To that end, it shall undertake the financial implementation of operations carried out with EDF resources allocated in the form of non-repayable aid, excluding interest rate subsidies, and make payments in accordance with this Regulation.

2.   For the purposes of the application of this Regulation, the Commission shall act on its own responsibility and within the limits of the resources allocated.

Article 3

The European Investment Bank (EIB), acting on behalf of the Community, shall manage the Investment Facility, as well as interest rate subsidies, and shall conduct operations there under, in accordance with the rules set out in Part Two. In that context, the EIB shall act on behalf of and at the risk of the Community.

The EIB shall undertake the financial implementation of operations carried out by means of loans from its own resources, where applicable combined with interest rate subsidies drawn from the EDF's grant resources.

Article 4

The provisions of this Part and Part Three shall apply exclusively to the financial implementation of the EDF resources managed by the Commission. Those provisions may not be interpreted as giving rise to any obligations on the Commission's part in respect of the financial implementation of EDF resources managed by the EIB.

Article 5

1.   Unless otherwise specified, references in this Regulation to the ACP States shall be deemed to refer also to the bodies or representatives defined in Articles 13 and 14 of Annex IV to the ACP-AC Agreement, which they may duly mandate to exercise their responsibilities under that Agreement.

2.   The financial year shall begin on 1 January and end on 31 December.

Article 6

EDF resources shall be established and implemented in compliance with the following principles as set out in this Regulation:

(a)

financial accuracy;

(b)

unit of account;

(c)

specification;

(d)

sound financial management;

(e)

transparency.

Article 7

1.   No revenue shall be collected and no expenditure effected unless booked to an allocation of the EDF.

2.   No expenditure may be committed or authorised in excess of the allocations.

3.   Interest yielded by the funds which are the property of the EDF shall be entered as EDF revenue.

Article 8

1.   Interest generated by pre-financing payments shall be assigned to the programme or the action concerned and deducted from the payment of the balance of the amounts due to the beneficiary.

2.   Interest shall not be due to the Communities in the following cases:

(a)

pre-financing which does not represent a significant amount;

(b)

pre-financing paid under a procurement contract within the meaning of Article 91;

(c)

advances paid to members of the institutions and to staff in accordance with the Staff Regulations of officials of the European Communities and the Conditions of employment of other servants of the European Communities (the Staff Regulations);

(d)

pre-financing paid in the framework of joint management as referred to in Article 20(1)(c).

3.   Articles 3, 4 and 4a of Regulation (EC, Euratom) No 2342/2002 shall apply mutatis mutandis to the implementation of paragraphs 1 and 2.

Article 9

1.   EDF resources shall be drawn up and implemented in euro and the accounts shall be presented in euro.

However, for the treasury management purposes referred to in Article 39, the accounting officer may carry out operations in euro or in other currencies.

2.   Articles 7 and 8 of Regulation (EC, Euratom) No 2342/2002 shall apply mutatis mutandis to the implementation of paragraph 1.

Article 10

EDF resources shall be earmarked for specific purposes according to the main instruments of cooperation, as described in the Financial Protocol of the ACP-EC Agreement and in the Overseas Association Decision.

In respect of the ACP States, those instruments are laid down by the Financial Protocol set out in Annex Ib to the ACP-EC Agreement. Earmarking of resources shall also be based on the provisions of the Internal Agreement and shall take account of the resources reserved for support expenditure linked to programming and implementation under Article 6 thereof.

In respect of the OCTs, those instruments are laid down in Annex IIA bis to the Overseas Association Decision. Earmarking of those resources shall also take account of the non-allocated reserve provided for in Article 3(4) of that Annex and of the resources reserved for studies or technical assistance measures under Article 1(1)(c) thereof.

Article 11

1.   EDF resources shall be used in accordance with the principles of sound financial management, namely in accordance with the principles of economy, efficiency and effectiveness.

2.   The principle of economy requires that the resources used for the pursuit of activities shall be made available in due time, in appropriate quantity and quality and at the best price.

The principle of efficiency is concerned with the best relationship between resources employed and results achieved.

The principle of effectiveness is concerned with attaining the specific objectives set and achieving the intended results.

3.   Specific, measurable, achievable, relevant and timed objectives shall be set. The achievement of those objectives shall be monitored by performance indicators.

Article 12

In order to improve decision-making, in particular to justify and specify the determination of the contributions to be paid by Member States referred to in Article 57, the following evaluations are required:

(a)

the use of EDF resources shall be preceded by an ex ante evaluation of the operation to be undertaken;

(b)

the operation shall be submitted to an ex post evaluation with a view to ensuring that the intended results justify the means deployed.

Article 13

1.   The principle of sound financial management required that EDF resources shall be implemented in compliance with effective and efficient internal control as appropriate in each management mode.

2.   For the purposes of the implementation of EDF resources, internal control is defined as a process applicable at all levels of the management and designed to provide reasonable assurance on the achievement of the following objectives:

(a)

effectiveness, efficiency and economy of operations;

(b)

reliability of reporting;

(c)

safeguarding of assets and information;

(d)

prevention and detection of fraud and irregularities;

(e)

adequate management of the risks relating to the legality and regularity of the underlying transactions, taking into account the multiannual character of programmes as well as the nature of the payments concerned.

Article 14

1.   EDF resources shall be established and implemented and the accounts presented in compliance with the principle of transparency.

2.   The annual estimates of commitments and payments under Article 7 of the Internal Agreement, together with the EDF accounts referred to in Article 118 of this Regulation, shall be published in the Official Journal of the European Union .

3.   The Commission shall make available, in an appropriate manner, information on the beneficiaries of funds deriving from the EDF held by it when EDF resources are implemented on a centralised basis and directly by its departments, and information on the beneficiaries of funds as provided by the entities to which financial implementation tasks are delegated under other modes of management.

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  ( 12 ) and Regulation (EC) 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  ( 13 ) 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 20.

Article 15

The EDF resources shall consist of the amounts laid down in Article 1 of the Internal Agreement.

Article 16

1.   The Commission may manage financial contributions from Member States and other donor countries on their behalf, including in both cases their public and parastatal agencies, or from international organisations to certain projects or programmes financed by the EDF, in accordance with Article 9(1) and (2) of Regulation (EC) No 617/2007.

2.   The Commission may also manage voluntary financial contributions from Member States in accordance with Article 9(4) and (5) of Regulation (EC) No 617/2007 and any specific arrangements laid down in relevant bilateral contribution agreements.

3.   The additional resources as defined in paragraphs 1 and 2 shall be managed according to the same rules as the EDF resources.

Article 17

The Commission may, within its own departments, delegate its powers to implement EDF resources, in accordance with the conditions laid down by this Regulation and by its internal rules and within the limits set by the Commission in the instrument of delegation. Those so empowered may act only within the limits of the powers expressly conferred upon them.

Article 18

1.   All financial actors and any other person involved in the implementation, management, audit or control of EDF resources shall be prohibited from taking any action which may bring their own interests into conflict with those of the Community. Should a conflict of interests arise, the person in question shall refrain from such an action and refer the matter to the competent authority.

2.   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.

3.   Article 34 of Regulation (EC, Euratom) No 2342/2002 shall apply mutatis mutandis to the implementation of paragraphs 1 and 2.

Article 19

For the purposes of this Title, the term ‘staff’ refers to persons covered by the Staff Regulations.

Article 20

1.   The Commission shall implement EDF resources in accordance with the provisions set out in Articles 21 to 29 in any of the following ways:

(a)

by decentralised management;

(b)

by centralised management;

(c)

by joint management with international organisations.

2.   Chapter 2 ‘methods of implementation’ of Part I, Title IV of Regulation (EC, Euratom) No 2342/2002 shall apply mutatis mutandis to the implementation the present Chapter.

Article 21

As a general rule, the Commission shall undertake the financial implementation of EDF resources by one of the following:

(a)

by means of decentralised management with the ACP States in accordance with the conditions set out in the ACP-EC Agreement and applying the breakdown of responsibilities provided for in Article 57 of that Agreement and Articles 34, 35 and 36 of Annex IV thereto;

(b)

by means of decentralised management with the OCTs in accordance with the conditions set out in the Overseas Association Decision and in the measures implementing that Decision.

Article 22

1.   In the context of decentralised management, the Commission shall undertake the financial implementation of EDF resources in accordance with the detailed rules laid down in paragraphs 2, 3 and 4. As provided for in the case of centralised management, the Commission may delegate residual tasks to bodies referred to in Article 25(2) to (5).

2.   The beneficiary ACP States or OCTs shall:

(a)

conduct regular checks to ensure that the actions to be financed by EDF resources have been implemented correctly;

(b)

take appropriate measures to prevent irregularities and fraud and, if necessary, bring legal proceedings to recover funds wrongly paid.

3.   In order to ensure that funds are used in accordance with the applicable rules and within the limits of powers thereby conferred upon it, the Commission shall apply clearance-of-accounts procedures or financial correction mechanisms which enable it to discharge its obligations under the ACP-EC Agreement, in particular under Article 34(1) of Annex IV thereto, and under the Overseas Association Decision, in particular under Articles 20 and 32 thereof.

4.   Partner countries and territories to which implementation tasks are delegated shall ensure, in conformity with Article 14(3), adequate annual ex post publication of beneficiaries of funds deriving from the EDF.

Article 23

The implementation by ACP States and OCTs of operations financed from EDF resources shall be subject to Commission scrutiny.

That scrutiny may be exercised by prior approval, by ex post checks or by a combined procedure, in accordance with the provisions of the ACP-EC Agreement, the Overseas Association Decision and the measures implementing that Decision.

Article 24

Depending on the degree of decentralisation provided for in the ACP-EC Agreement, the Overseas Association Decision and the measures implementing that Decision, the Commission shall strive to encourage the beneficiary ACP States and the OCTs to adhere, when exercising the powers entrusted to them under the ACP-EC Agreement and under the Overseas Association Decision, to the principle of sound financial management set out in Article 11, in particular the progressive application of the following criteria:

(a)

transparent procurement and grant-awarded procedures, which are non-discriminatory and exclude any conflict of interests;

(b)

an effective and efficient internal control system for the management of operations, which includes effective segregation of the duties of authorising officer and accounting officer or of the equivalent functions;

(c)

an accounting system that enables the correct use of EDF resources to be verified and the use of funds to be reflected in the EDF accounts;

(d)

an independent external audit exercised by a national institution for independent external auditing;

(e)

in the case of the direct-labour operations referred to in Article 101(1), adequate provisions for the management and scrutiny of local imprest accounts and for the definition of the responsibilities of the local imprest manager and the local accounting officer.

For the purposes of applying the first subparagraph, the Commission shall, in agreement with the beneficiary ACP States and OCTs, incorporate appropriate provisions in the financing agreements referred to in Article 70(3).

Article 25

1.   Where the Commission implements EDF resources on a centralised basis, implementation tasks shall be performed either directly by its departments or indirectly, in accordance with paragraphs 2 to 4 of this Article and with Articles 26 to 29.

Indirect implementation, in accordance with paragraphs 2 to 4 of this Article and with Article 27 to 29 also applies in the case of delegation of residual tasks to bodies referred to in paragraph 3 of this Article in the case of decentralised management.

2.   The Commission may not delegate to third parties the executive powers it enjoys under the ACP-EC Agreement or the Overseas Association Decision where those powers involve a large measure of discretion implying political choices. The implementing tasks delegated shall be clearly defined and fully supervised as to the use made of them.

The delegation of financial implementation tasks shall comply with the principle of sound financial management and shall ensure compliance with the visibility of Community action. No implementation tasks delegated in this way may give rise to conflicts of interests.

3.   Within the limits laid down in paragraph 2, the Commission may delegate tasks of public authority, and in particular financial implementation tasks, to the following:

(a)

the executive agencies established in accordance with Council Regulation (EC) No 58/2003  ( 14 ) ;

(b)

national public-sector bodies or bodies governed by private law with a public-service mission and providing adequate financial guarantees for the implementation of the tasks assigned to them.

The Commission may draw on the EDF resources in order to pay financial compensation to these bodies for the administrative costs incurred.

The Commission shall inform annually the Council of the cases, agencies and bodies concerned. It shall provide commensurate motivation of the use of national agencies.

4.   Implementation of the corresponding EDF resources by an agency referred to in paragraph 3(a) shall be carried out by the director of that agency.

5.   Where the agencies and bodies referred to in paragraph 3 perform implementation tasks, they shall conduct regular checks to ensure that the actions to be financed from EDF resources have been implemented correctly.

Such agencies and bodies shall take appropriate measures to prevent irregularities and fraud and if necessary bring legal proceedings to recover funds wrongly paid or incorrectly used.

Article 26

Where the Commission implements EDF resources by indirect centralised management, it shall first obtain evidence of the existence and proper operation within the entities to which it entrusts implementation of the following:

(a)

transparent procurement and grant-awarded procedures which are non-discriminatory and exclude any conflict of interest and which are in accordance with Titles V and VII;

(b)

an effective and efficient internal control system for the management of operations, which includes effective segregation of the duties of authorising officer and accounting officer or of the equivalent functions;

(c)

an accounting system that enables the correct use of EDF resources to be verified and the use of funds to be reflected in the EDF accounts;

(d)

an independent external audit;

(e)

public access to information at the level provided for in Community Regulations;

(f)

adequate annual ex post publication of beneficiaries of funds deriving from the EDF in conformity with Article 14(3).

The Commission may accept that the audit, accounting, procurement and grant-awarded systems of the agencies and bodies referred to in Article 25(3) are equivalent to its own, with due account for internationally accepted standards.

Article 27

1.   The Commission shall ensure supervision, evaluation and control of the implementation of the tasks entrusted. It shall take the equivalence of control systems into account when it carries out controls using its own control systems.

2.   The European Anti-Fraud Office (OLAF) shall enjoy the same powers with regard to bodies to which tasks are delegated as it does with regard to Commission departments. The bodies in question shall adopt the necessary measures to help OLAF carry out internal investigations. Any act undertaken by such bodies for the implementation of EDF resources, and in particular any decision or any contract concluded by them, must specifically provide for the same controls as those provided for in Article 70(4).

Article 28

The Commission may not entrust measures of implementation of funds deriving from EDF resources, such as payment and recovery, to external private-sector entities or bodies except to those referred to in point (b) of the first subparagraph of Article 25(3) or in specific cases where the payments involved are to be made to beneficiaries determined by the Commission, are subject to conditions and amounts fixed by the Commission and do not involve the exercise of discretion by the entity or body making the payments.

The tasks which may be entrusted by contract to external private-sector entities or bodies other than those referred to in point (b) of the first subparagraph of Article 25(3) are technical expertise tasks and administrative, preparatory or ancillary tasks involving neither the exercise of public authority nor the use of discretionary powers of judgment.

Article 29

1.   Where the Commission implements EDF resources by joint management, certain implementation tasks shall be delegated to international organisations in the following cases:

(a)

wherever the Commission and the international organisation are bound by a long-term framework agreement laying down the administrative and financial arrangements for their cooperation;

(b)

wherever the Commission and the international organisation elaborate a joint project or programme;

(c)

where the funds of several donors are pooled and are not earmarked for specific items or categories of expenditure, that is to say, in the case of multi-donor actions.

These organisations shall, in their accounting, audit, internal control and procurement procedures, apply standards which offer guarantees equivalent to internationally accepted standards.

2.   The implementation by international organisations of operations financed from EDF resources shall be subject to scrutiny by the Commission. Such scrutiny shall be exercised by prior approval, by ex post checks or by a combined procedure.

3.   Individual agreements concluded with international organisations for the award of financing shall contain detailed provisions for the implementation of the tasks entrusted to such international organisations.

4.   International organisations to which implementation tasks are delegated shall ensure, in conformity with Article 14(3), adequate annual ex post publication of beneficiaries of funds deriving from the EDF.

Article 30

The Commission shall provide each financial actor with the resources required to perform his duties and a charter describing in detail his tasks, rights and obligations.

Article 31

The duties of authorising officer and accounting officer shall be segregated and mutually incompatible.

Article 32

1.   In the context of the financial implementation of the operations referred to in Article 2, the Commission shall perform the duties of authorising officer.

2.   The Commission shall determine the staff of an appropriate level to whom it delegates the duties of authorising officer, the scope of the powers delegated and the possibility for the persons to whom these powers are delegated to sub-delegate them.

3.   The powers of authorising officer shall be delegated or sub-delegated only to staff.

4.   Authorising officers by delegation or sub-delegation may act only within the limits set by the instrument of delegation or sub-delegation. The responsible authorising officer by delegation or sub-delegation may be assisted in his task by one or more members of staff entrusted, under his responsibility, to carry out certain operations necessary for the implementation of EDF resources and presentation of the accounts.

Article 33

The authorising officer shall be responsible for the following:

(a)

implementing revenue and expenditure in accordance with the principle of sound financial management;

(b)

ensuring that the requirements of legality and regularity are complied with.

Article 34

1.   To implement expenditure, the authorising officers by delegation and by sub-delegation shall make financial commitments and, where appropriate, legal commitments, shall validate expenditure and authorise payments and shall undertake the preliminaries for the implementation of EDF resources.

2.   Implementation of revenue shall comprise drawing up estimates of amounts receivable, establishing entitlements to be recovered and issuing recovery orders. It shall involve waiving established entitlements where appropriate.

Article 35

Save in cases where management is centralised or joint with international organisations, operations relating to the implementation of programmes or projects shall be carried out by the national or regional authorising officer, as defined in Article 35 of Annex IV to the ACP-EC Agreement and in the measures implementing the Overseas Association Decision, in close cooperation with the Commission in accordance with Articles 34, 35 and 36 of Annex IV to the ACP-EC Agreement.

Article 36

1.   Where the authorising officer by delegation becomes aware of problems in carrying out procedures relating to management of EDF resources, he shall, in conjunction with the national or regional authorising officer, make all contacts necessary to remedy the situation and take any steps that are necessary.

In cases where the national or regional authorising officer does not or is unable to perform the duties incumbent on him under the ACP-EC Agreement, the authorising officer by delegation may temporarily take his place, in which case, the Commission may receive, from the resources allocated to the ACP State in question, financial compensation for the extra administrative workload incurred.

2.   Any measure taken by the authorising officer by delegation pursuant to paragraph 1 shall be taken in the name of and on behalf of the national or regional authorising officer concerned.

Article 37

1.   The authorising officer by delegation shall put in place, in compliance with the minimum standards adopted by the Commission and having due regard to the risks associated with the management environment and the nature of the actions financed, the organisational structure and the internal management and control procedures suited to the performance of his duties, including where appropriate ex post verifications.

2.   Before an operation is authorised, the operational and financial aspects shall be verified by members of staff other than the one who initiated the operation. The initiation and the ex ante and ex post verification of that operation shall be separate functions.

3.   All staff responsible for controlling the management of financial operations shall have the necessary professional skills. They shall respect a specific code of professional standards established by the Commission.

4.   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 the latter fails to take action, the panel referred to in Article 54(3).

In the event of fraud, corruption or any other illegal activity which may harm the interests of the Community, he shall inform the authorities and bodies designated by the applicable legislation.

Article 38

The authorising officer by delegation shall report to the Commission on the performance of his duties in the form of an annual activity report together with financial and management information confirming that the information contained in the report presents a true and fair view except as otherwise specified in any reservations related to the defined areas of revenue and expenditure.

That report shall indicate the results of the operations by reference to the objectives set, the risks associated with these operations, the use made of the resources provided and the efficiency and effectiveness of the internal control system. The internal auditor shall take note of the annual report and any other pieces of information provided. No later than 15 June each year, the Commission shall send to the European Parliament and the Council a summary of the annual activity report for the previous year.

Article 39

1.   The Commission shall appoint an accounting officer who shall be responsible for:

(a)

proper implementation of payments, collection of revenue and recovery of amounts established as being receivable;

(b)

preparing and presenting the accounts in accordance with Title VIII;

(c)

keeping the accounts for:

(i)

the allocations referred to in Article 15, except those for the Investment Facility, and interest rate subsidies;

(ii)

the commitments referred to in Article 70;

(iii)

payments, revenue and debts;

(d)

laying down, in accordance with Title VIII, the accounting rules and methods and the chart of accounts;

(e)

laying down and validating the accounting systems and where appropriate validating systems laid down by the authorising officer by delegation to supply or justify accounting information;

(f)

treasury management.

The accounting officer shall be empowered to verify the respect of criteria for the validating referred to in point (e) of the first subparagraph.

2.   The accounting officer shall obtain from the authorising officer by delegation and from the EIB, who shall, each for their own part, guarantee its reliability, all the information necessary for the production of accounts giving a true image of the financial implementation of EDF resources.

Article 40

1.   Before the adoption of the accounts by the Commission, the accounting officer shall sign them off, thereby certifying that he has a reasonable assurance that the accounts present a true and fair view of the financial situation of the EDF.

For that purpose the accounting officer shall satisfy himself that:

(a)

the accounts have been prepared in accordance with the accounting rules, methods and accounting systems established under his responsibility as laid down in this Regulation for the EDF accounts;

(b)

all revenue and expenditure is entered in the accounts.

The authorising officer by delegation shall forward all information that the accounting officer needs in order to fulfil his duties.

The authorising officer shall remain fully responsible for the proper use of the funds he/she manages as well as the legality and regularity of the expenditure under his control.

Article 41

The accounting officer shall be empowered to check the information received as well as to carry out any further checks he deems necessary in order to sign off the accounts. The accounting officer shall make reservations, if necessary, explaining exactly the nature and scope of such reservations.

Article 42

Save as otherwise provided in this Regulation, only the accounting officer is empowered to manage cash and cash equivalents. He shall be responsible for their safekeeping.

Article 43

Save as otherwise provided in this Regulation, only the accounting officer may, in the performance of his duties, delegate certain tasks to subordinate staff.

The instrument of delegation shall lay down the tasks entrusted to the delegates.

Article 44

1.   In order to make the payments provided for in Article 37(1) and (4) of Annex IV to the ACP-EC Agreement or in the measures implementing the Overseas Association Decision, the accounting officer shall open accounts, where appropriate, with financial institutions in the ACP States and the OCTs, for payments in the national currencies of the ACP States or in the local currencies of the OCTs, and with financial institutions in the Member States, for payments in euro and other currencies.

2.   These financial institutions, which act as paying agents, execute payments on the instructions of the accounting officer.

3.   In accordance with Article 37(2) of Annex IV to the ACP-EC Agreement, deposits in accounts with financial institutions in the ACP States and the OCTs shall bear no interest and the latter shall receive no remuneration for their services.

In accordance with Article 1(6) of the Internal Agreement, deposits in accounts with financial institutions in the Member States shall bear interest. Such interest shall be credited to the one of the accounts provided for in that Article.

Article 45

The relations between the Commission and the paying agents provided for in Article 37 of Annex IV to the ACP-EC Agreement or in the measures implementing the Overseas Association Decision shall be the subject of contracts. Once signed, copies of those contracts shall be sent to the Court of Auditors for information purposes.

Article 46

1.   The Commission shall transfer from the special accounts opened pursuant to Article 59(3) the amounts needed to replenish the accounts opened in its name in accordance with Article 44. Such transfers shall be made on the basis of the cash needs of the projects and programmes.

2.   The Commission shall endeavour to make any withdrawals from the special accounts referred to in the first subparagraph of Article 59(3) in such a way as to maintain a distribution of its assets in those accounts corresponding to the proportions in which the various Member States contribute to the EDF.

Article 47

The signatures of the Commission staff who are empowered to carry out operations on the EDF's accounts shall be lodged with the banks concerned when the accounts are opened or, in the case of staff who are authorised subsequently, when they are designated.

Article 48

1.   In order to make the payments provided for in Article 44, the accounting officer shall appoint a paying manager to execute local payments through the paying agent account.

2.   Paying managers shall be chosen from officials or, should the need arise and only in duly substantiated cases, from other members of staff.

Article 49

1.   The appointment of the paying manager shall be the subject of a decision by the accounting officer, on a duly substantiated proposal from the authorising officer responsible. That decision shall set out the respective responsibilities and obligations of the paying manager and the authorising officer.

It shall specify at least:

(a)

the frequency with which supporting documents are to be produced and the procedure for producing them;

(b)

the procedure to be followed for replenishing the paying agent account;

(c)

the period of validity of the authorisation given to the paying manager by the accounting officer;

(d)

the identity of the appointed paying manager.

The amendment of the decision referred to in the first subparagraph shall also be the subject of a decision by the accounting officer on a duly substantiated proposal from the authorising officer responsible.

2.   The paying manager may, after the instruction from the accounting officer, execute duly authorised payments to third parties within the limits of the positive residual balance of the paying agent account at the bank.

Article 50 Replenishment of local bank accounts

The accounting officer shall replenish paying agent accounts and shall monitor those accounts as regards the opening of bank accounts, the delegation of signatures and the controls on the spot and in the centralised accounts.

Paying agent accounts may be endowed directly by miscellaneous local revenue that arise from:

(a)

miscellaneous repayments;

(b)

recovery orders.