Establishment of the declaration of expenditure
Article 9
1. The amount of the payment to be granted to a beneficiary under the EAGF shall be determined by the Member States in the framework of the control systems as referred to in Title IV of Regulation (EU) 2021/2116. 2. The expenditure effected and to be declared to the EAGF shall take account of penalties applied in the framework of Member States’ control systems in case of non-compliances. 3. The amount resulting from the application of paragraph 2 shall serve for types of intervention in the form of direct payments referred to in Article 16 of Regulation (EU) 2021/2115 and the programmes for the outermost regions of the Union and the smaller Aegean islands as laid down in Regulation (EU) No 228/2013 and Regulation (EU) No 229/2013, respectively, as a basis for the reduction of payments referred to in Article 17 of Regulation (EU) 2021/2115 and for the application of financial discipline referred to in Article 17 of Regulation (EU) 2021/2116. 4. The amount resulting from the application of paragraph 2 and in the specific case of direct payments and the programmes referred to in paragraph 3, the amount resulting from the application of paragraphs 2 and 3 shall constitute the amount to be declared to the Commission. 5. The expenditure declared to the EAGF shall serve as a basis for the verification of the financial ceilings set by Union law. 6. The amount resulting from the application of paragraphs 2 and 3 shall serve as a basis for the calculation of administrative penalties in relation to conditionality as referred to in Title IV, Chapters IV and V, of Regulation (EU) 2021/2116. 7. By way of derogation from paragraph 3, Member States may pay advances for direct payments without applying the adjustment rate for financial discipline referred to in Article 17 of Regulation (EU) 2021/2116 to beneficiaries in respect of the aid applications for a given year. The balance payment to be granted to beneficiaries as from 1 December shall take into account the adjustment rate for financial discipline applicable at that time for the total amount of direct payments in the corresponding calendar year.