Delegated Regulation (EU) 2022/127 is amended as follows:
1.
in Article 13, in paragraph 2, the following second subparagraph is added:
‘By way of derogation from the first subparagraph, Member States are not required to provide justifications for the purpose of the annual performance clearance for deviations of realised unit amounts from planned unit amounts where the total expenditure corresponding to these deviations does not exceed 2 % of the total expenditure declared in the annual performance report in accordance with Article 134(5), point (b), of Regulation (EU) 2021/2115 for the financial year concerned. For the calculation towards this threshold only deviations resulting in excess expenditure shall be taken into account.
However, Member States shall provide justifications for the purposes of the annual performance clearance for all excesses of realised unit amounts from maximum planned unit amounts.’;
2.
in Article 14, paragraph 8 is replaced by the following:
‘8. Where a Member State submits objective elements, which do not fulfil the requirements laid down in paragraphs 2 and 3 of this Article, but which demonstrate that the maximum loss for the funds is lower than or equal to the loss that would derive from the application of a flat rate lower than the one proposed, the Commission shall use that lower flat rate to determine the amounts to be excluded from Union financing pursuant to Article 55 of Regulation (EU) 2021/2116.’
;
3.
in Article 15, paragraph 4 is replaced by the following:
‘4. Where a Member State demonstrates that the maximum loss for the EAGF and the EAFRD is lower than or equal to the loss that would derive from the application of a flat rate lower than the one proposed, the Commission may use that lower flat rate or the certification body’s assessment of the governance systems in the context of its audit referred to in Article 12 of Regulation (EU) 2021/2116 to determine the amounts to be excluded from Union financing during the conformity procedure referred to in Article 55 of that Regulation.’
.