Conditions for entrusting an IPA II beneficiary with budget implementation tasks
1. The Commission entrusts budget implementation tasks to an IPA II beneficiary by concluding a financing agreement in accordance with the provisions of Articles 60(1) and (2), 61 and point (b) of Article 184(2) of Regulation (EU, Euratom) No 966/2012.
2. The IPA II beneficiary shall guarantee a level of protection of the financial interests of the Union equivalent to that required under Regulation (EU, Euratom) No 966/2012 and Delegated Regulation (EU) No 1268/2012 and shall set up the necessary structures ensuring the effective functioning of internal control systems.
3. The management, control, supervision and audit systems set up in the IPA II beneficiary shall provide for an effective internal control system which includes at least the following five areas:
(a)
control environment;
(b)
risk management;
(c)
control activities;
(d)
information and communication;
(e)
monitoring activities.
Entrusting budget implementation tasks
1. The NAO, on behalf of the IPA II beneficiary, shall be responsible for submitting to the Commission a request for being entrusted with budget implementation tasks in accordance with Article 13.
2. Before submitting the request referred to in paragraph 1, the NAO shall ensure that the management structure and relevant operating structure(s) satisfy the requirements in points (a), (b) and (d) of the first subparagraph of Article 60(2) of Regulation (EU, Euratom) No 966/2012 and those of Article 13(3) of this Regulation.
3. Before the Commission entrusts budget implementation tasks of IPA II assistance, it shall review the request referred to in paragraph 1 and the established structures and authorities referred to in Article 7 and shall, for the purposes of the ex ante assessment pursuant to Article 61(1) of Regulation (EU, Euratom) No 966/2012, obtain evidence that the requirements set out in points (a) to (d) of the first subparagraph of Article 60(2) of Regulation (EU, Euratom) No 966/2012 and those of Article 13(3) of this Regulation are fulfilled.
For entrusting budget implementation tasks of IPA II assistance, the Commission may rely on an ex ante assessment carried out with regard to an earlier financing agreement with the IPA II beneficiary or an ex ante assessment carried out with regard to the conferral of management powers decided under Council Regulation (EC) No 1085/2006 ( 7 ) . The Commission shall request additional evidence if those assessments do not address all the requirements.
4. The NAO shall monitor the continued fulfilment by the management structure and operating structure(s) of the requirements referred to in paragraph 2. In case of failure to satisfy these requirements, the NAO shall inform the Commission without delay, and take any appropriate safeguard measures regarding payments made or contracts signed.
5. The Commission shall monitor the compliance with Article 60(2) and (3) of Regulation (EU, Euratom) No 966/2012 and may take appropriate remedial measures, including suspension or termination of parts of the financing agreement at any time if the requirements are no longer fulfilled.
