Commission Delegated Regulation (EU) 2016/1986 of 30 June 2016 supplementing Regulation (EU) No 223/2014 of the European Parliament and of the Council with regard to the conditions and procedures to determine whether amounts which are irrecoverable shall be reimbursed by Member States concerning the Fund for European Aid to the Most Deprived
Submission of information on irrecoverable amounts
1. Where a Member State considers that an amount unduly paid to a beneficiary, previously included in certified accounts submitted to the Commission, is irrecoverable, and where it has concluded that this amount should not be reimbursed to the Union budget, the certifying authority shall submit a request to the Commission to confirm that conclusion.
2. The certifying authority shall submit a request referred to in paragraph 1, at the level of each operation, in the form set out in the Annex to this Regulation by way of the electronic data exchange system referred to in Article 30(4) of Regulation (EU) No 223/2014.
3. The Member State shall submit a request established in accordance with paragraphs 1 and 2 each year from 2017 until and including 2025 by 15 February with regard to the previous accounting years. The Commission may exceptionally extend the deadline to 1 March, upon request by the Member State concerned.
Conditions for determining fault or negligence on the part of the Member States
The following criteria are indicative of fault or negligence on the part of the Member State:
(a)
the Member State did not submit any description of the administrative and legal measures, with dates, taken by the Member State to recover the relevant amount (or to reduce or cancel the level of support or withdraw the document setting out the conditions for support referred to in Article 32(3)(c) of Regulation (EU) No 223/2014, where such a withdrawal is subject to a separate procedure);
(b)
the Member State did not provide a copy of the first and any subsequent recovery order (and of any copy of the document reducing or cancelling the level of support or withdrawing the document setting out the conditions for support referred to in Article 32(3)(c) of Regulation (EU) No 223/2014, where such withdrawal is subject to a separate procedure);
(c)
the Member State did not provide the date of the last payment of the public contribution to the beneficiary of the given operation and a copy of proof of this payment;
(d)
the Member State, after detection of the irregularity, made one or more undue payments to the beneficiary in relation to the part of the operation that was affected by the irregularity;
(e)
the Member State did not send the document reducing the level of support or withdrawing the document setting out the conditions for support referred to in Article 32(3)(c) of Regulation (EU) No 223/2014, where such withdrawal is subject to a separate procedure, or take any equivalent decision within 12 months of the detection of the irregularity;
(f)
the Member State did not initiate the recovery procedure within 12 months of the support being definitively reduced or cancelled (either after an administrative or judicial procedure or by agreement of the beneficiary);
(g)
the Member State did not exhaust all recovery possibilities available under its institutional and legal framework;
(h)
the Member State did not provide documents relating to insolvency and bankruptcy procedures, where applicable;
(i)
the Member State did not reply to the Commission's request for further information in accordance with Article 3.
Procedure to determine whether an irrecoverable amount shall be reimbursed by Member States
1. Based on the information submitted by the Member State in accordance with Article 1, the Commission shall assess each case in order to determine whether the failure to recover an amount is a result of fault or negligence on the part of the Member State, taking due account of specific circumstances and the institutional and legal framework of the Member State. Where one or more of the criteria listed in Article 2 is fulfilled, the Commission may still conclude that the Member State has not been at fault or negligent.
2. By 31 May of the year in which the accounts are submitted, the Commission may:
(a)
request the Member State in writing to submit further information on the administrative and legal measures taken to recover any Union contribution unduly paid to beneficiaries; or
(b)
request the Member State in writing to continue its recovery procedure.
Where the Commission has taken the option referred to in point (a) of the first subparagraph, paragraphs 5 to 8 shall apply.
3. The deadline set in paragraph 2(a) and (b) shall not apply to irregularities preceding a bankruptcy or to cases of suspected fraud.
4. If the Commission does not act pursuant to and by the deadline set in paragraph 2, the Union contribution shall not be reimbursed by the Member State.
5. The Member State shall reply within three months to the Commission's request for information sent pursuant to paragraph 2.
6. If the Member State does not submit further information as requested pursuant to paragraph 2, the Commission shall continue its assessment based on the information available.
7. Within three months of receiving the reply from the Member State, or, in the absence of a reply by the deadline, the Commission shall inform the Member State where it concludes that the Union contribution should be reimbursed by the Member State setting out the basis for its conclusion, and requesting the Member State to provide its observations within two months. If the Commission does not act pursuant to and by the deadline set in the preceding sentence, the Union contribution shall not be reimbursed by the Member State.
8. Within six months following the deadline for observations by the Member State set out in paragraph 7, the Commission shall conclude its assessment based on the information available and, when it maintains its conclusion that the Union contribution shall be reimbursed by the Member State, shall adopt a decision. If the Commission does not act pursuant to and by the deadline set in the preceding sentence, the Union contribution shall not be reimbursed by the Member State.
For the purpose of calculating the Union contribution to be reimbursed by the Member State, the co-financing rate at the level of the operational programme, as laid down in the financing plan in force at the time of the request, shall apply.
Provision of information on amounts not recovered that do not exceed EUR 250 in contribution from the Fund
Where a Member State decides not to recover from a beneficiary an amount unduly paid at the level of an operation in the accounting year concerned that does not exceed EUR 250, not including interest, in contribution from the Fund, no information needs to be provided to the Commission under this Regulation.
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union .
Supplementary provisions
ANNEXSupplementary provisions
ANNEX
Submission of information on irrecoverable amounts — Food and/or basic material assistance operational programme (OP I)
a
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n
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Type of expenditure ( 1 )
Name of operation and IT identification number
Name of beneficiary
Date and proof of last payment of public contribution to the beneficiary for the operation concerned
Nature of irregularity (nature to be defined by Member State)
Body which detected the irregularity (indicate which: MA, CA or AA or other, or name of EU body)
Date of detection of irregularity ( 2 )
Total expenditure declared irrecoverable
Public expenditure corresponding to amounts declared irrecoverable
Amount of irrecoverable Union contribution ( 3 )
Accounting year(s) in which the expenditure corresponding to the irrecoverable Union contribution was declared
Date of launch of recovery proceedings
Copy of first and any subsequent recovery orders ( 4 )
Date of establishment of irrecoverability
Reason for irrecoverability ( 5 )
Documents related to bankruptcy procedures, when applicable
Indicate whether the Union contribution should be borne by the Union budget (Y/N) ( 6 )
<type="S" maxlength="500" input="S">
<type="S" maxlength="250" input="M">
( 7 )
<type="S" maxlength="250" input="M">
<type="D" input="M"> + <ATT>
<type="S" maxlength="250" input="M">
<type="S" maxlength="250" input="M">
<type="D" input="M">
<type="Cu" input="M">
<type="Cu" input="M">
<type="Cu" input="M">
<type="D" input="S">
<type="D" input="M">
<ATT>
<type="D" input="M">
<type="S" maxlength="500" input="M">
<ATT>
<type="B" input="M">
Technical Assistance
Op 1
Op 2
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Type of material assistance 1
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Type of material assistance 2
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Type of material assistance n
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Submission of information on irrecoverable amounts — Social inclusion of the most deprived persons operational programme (OP II)
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Type of expenditure ( 8 )
Name of operation and IT identification number
Name of beneficiary
Date and proof of last payment of public contribution to the beneficiary for the operation concerned
Nature of irregularity (nature to be defined by Member State)
Body which detected the irregularity (indicate which: MA, CA or AA or other, or name of EU body)
Date of detection of irregularity ( 9 )
Total expenditure declared irrecoverable
Public expenditure corresponding to amounts declared irrecoverable
Amount of irrecoverable Union contribution ( 10 )
Accounting year(s) in which the expenditure corresponding to the irrecoverable Union contribution was declared
Date of launch of recovery proceedings
Copy of first and any subsequent recovery orders ( 11 )
Date of establishment of irrecoverability
Reason for irrecoverability ( 12 )
Documents related to bankruptcy procedures, when applicable
Indicate whether the Union contribution should be borne by the Union budget (Y/N) ( 13 )
<type="S" maxlength="500" input="S">
<type="S" maxlength="250" input="M">
( 14 )
<type="S" maxlength="250" input="M">
<type="D" input="M"> + <ATT>
<type="S" maxlength="250" input="M">
<type="S" maxlength="250" input="M">
<type="D" input="M">
<type="Cu" input="M">
<type="Cu" input="M">
<type="Cu" input="M">
<type="D" input="S">
<type="D" input="M">
<ATT>
<type="D" input="M">
<type="S" maxlength="500" input="M">
<ATT>
<type="B" input="M">
Technical assistance
Op 1
Op 2
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Type of action 1
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Type of action 2
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Type of action n
Sub-total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
Total
<type="Cu" input="G">
<type="Cu" input="G">
<type="Cu" input="G">
( 1 ) Corresponding to the information provided in the accounts, in line with Appendix 4 of Annex V to Implementing Regulation (EU) 2015/341. The reporting shall be by type of material assistance and by operation.
( 2 ) The date on which the primary administrative or judicial finding on the irregularity was established.
( 3 ) Calculated in accordance with the co-financing rate at the level of the operational programme, as laid down in the financing plan in force at the time of the request.
( 4 ) In addition, when applicable, a copy of the document reducing/cancelling the level of support and /or withdrawing the document setting out the conditions for support referred to in Article 32(3)(c) of Regulation (EU) No 223/2014.
( 5 ) Indicate whether the reason for irrecoverability is bankruptcy of the beneficiary. If not, indicate the applicable reason.
( 6 ) When a request is made that the Union contribution should be borne by the Union budget, the Member State confirms it has exhausted all the recovery possibilities available through its institutional and legal framework.
( 7 ) Legend for the characteristics of fields: type: N=Number, D=Date, S=String, Cu=Currency. B = Boolean — input: M=Manual, S=Selection, G=Generated by system — ‘maxlength’ = Maximum number of characters including spaces — ATT: Attachments.
( 8 ) Corresponding to the information provided in the accounts, in line with Appendix 4 of Annex V to Implementing Regulation (EU) 2015/341. The reporting shall be by type of action and by operation.
( 9 ) The date on which the primary administrative or judicial finding on the irregularity was established.
( 10 ) Calculated in accordance with the co-financing rate at the level of the operational programme, as laid down in the financing plan in force at the time of the request.
( 11 ) In addition, when applicable, a copy of the document reducing/cancelling the level of support and /or withdrawing the document setting out the conditions for support referred to in Article 32(3)(c) of Regulation (EU) No 223/2014.
( 12 ) Indicate whether the reason for irrecoverability is bankruptcy of the beneficiary. If not, indicate the applicable reason.
( 13 ) When a request is made that the Union contribution should be borne by the Union budget, the Member State confirms it has exhausted all the recovery possibilities available through its institutional and legal framework.
( 14 ) Legend for the characteristics of fields: type: N=Number, D=Date, S=String, Cu=Currency. B = Boolean — input: M=Manual, S=Selection, G=Generated by system — ‘maxlength’ = Maximum number of characters including spaces — ATT: Attachments.
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