1.   Each paying agency shall keep a set of accounts covering only the expenditure and revenue referred to in Article 5(1) and Articles 6 and 45 of Regulation (EU) 2021/2116 and the use of the funds made available to it to defray the corresponding expenditure. Those accounts shall enable the financial data for the Funds to be distinguished and provided separately.

Member States shall make available for the Commission the information of the expenditure effected and assigned revenue received on its request.

2.   The paying agencies of the Member States which have not adopted the euro shall keep accounts covering the amounts expressed in the currency in which the expenditure was incurred and the revenue received. However, to enable all their expenditure and revenue to be consolidated, they must be able to provide the corresponding data in national currency and in euro.

3.   As regards the EAFRD, each paying agency shall keep accounts enabling all the operations for each plan and each intervention to be identified. Such accounts shall include in particular:

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.

1.   In accordance with Article 90(1), point (c)(i) and (ii), of Regulation (EU) 2021/2116, Member States shall send to the Commission, electronically and by the seventh day of each month at the latest, the information and documents on expenditure and assigned revenue referred to in Articles 11 and 12 of this Regulation, and in particular the declaration of expenditure drawn up in accordance with paragraph 2 of this Article.

However, the communication on expenditure effected and assigned revenue received between 1 and 15 October shall be sent by 25 October at the latest.

All relevant information shall be provided on the basis of the model made available by the Commission to Member States through information systems.

2.   The declaration of expenditure referred to in paragraph 1 shall consist of at least:

3.   All the financial information required under this Article shall be communicated in euro.

1.   Without prejudice to the special provisions on declarations of expenditure and revenue relating to public storage referred to in Article 12, expenditure and assigned revenue declared by paying agencies in respect of a given month shall correspond to payments and receipts actually effected during that month.

That expenditure and assigned revenue shall be entered in the accounts of the EAGF budget in respect of the corresponding financial year.

However:

2.   Expenditure and assigned revenue shall be taken into consideration on the date on which the account of the paying agency was debited or credited. However, for payments, the date to be taken into consideration may be the date on which the agency concerned issued the payment document and sent it to a financial institution or to the beneficiary. Each paying agency shall use the same method throughout the financial year.

3.   Payment orders which are not executed and payments debited to the account, then re-credited, shall be shown in the accounts as deductions from expenditure in respect of the month during which the failure to execute or the cancellation is reported to the paying agency.

4.   Where payments due under the EAGF are encumbered by claims, they shall be deemed to have been effected in their entirety for the purpose of applying paragraph 1:

1.   The operations to be taken into consideration for drawing up declarations of expenditure relating to public storage shall be those entered at the end of a given month in the accounts of the paying agency, which have taken place from the beginning of the accounting year within the meaning of Article 3(3), first subparagraph, point (a) of Delegated Regulation (EU) 2022/127 up to the end of that month.

2.   Such declarations of expenditure shall comprise the values and amounts determined in accordance with Articles 17and 18 of this Regulation and Article 4 of Commission Delegated Regulation (EU) No 906/2014 (14) entered in the accounts by paying agencies during the month following that to which the operations relate.

However:

1.   On the basis of the data sent in accordance with Article 10(1) of this Regulation, the Commission shall decide to make the monthly payments pursuant to Article 21(3) of Regulation (EU) 2021/2116, without prejudice to the corrections which may be made by means of subsequent decisions in accordance with Articles 53, 54 and 55 of that Regulation, and taking into account the reductions and suspensions decided in accordance with Articles 39 to 42 of that Regulation.

2.   If the total expenditure declared by Member States for the following financial year exceeds three quarters of the EAGF total appropriations for the current financial year, the advance commitments referred to in Article 11(2), point (b), of Regulation (EU, Euratom) 2018/1046 and the corresponding monthly payments shall be granted in proportion to the declarations of expenditure, up to a maximum of 75 % of the appropriations for the current financial year. The Commission shall take the balance of amounts not reimbursed to Member States into account in decisions on subsequent reimbursements.

1.   Paying agencies shall transmit to the Commission:

2.   The relevant information systems referred to in Article 25 shall be used to perform the notifications and information exchanges and to draw up the documents relating to public intervention expenditure.

1.   The stock accounts provided for in Article 3(3), first subparagraph, point (a), of Delegated Regulation (EU) 2022/127 shall contain the following categories of elements, shown separately:

2.   The financial accounts provided for in Article 3(3), first subparagraph, point (a), of Delegated Regulation (EU) 2022/127 shall contain:

1.   The elements referred to in Article 16 shall be booked for the quantities, values, amounts and averages actually recorded by paying agencies or for the values and amounts calculated on the basis of the standard amounts established by the Commission.

2.   The records and calculations referred to in paragraph 1 shall be made subject to the application of the following rules:

3.   Corrections made by the Commission, as regards the elements referred to in Article 16 for the current accounting year, shall be notified to the Committee on the Agricultural Funds. They may be notified to the Member States on the occasion of a monthly payment decision or, failing that, at the time of the decision on the clearance of accounts. They shall be entered in the accounts by paying agencies under the terms of that decision.

1.   The various items of expenditure and revenue shall be entered in the accounts on the date on which the physical operation under the public intervention measure takes place and by using the exchange rate as referred to in Article 3(2) of Delegated Regulation (EU) No 906/2014.

However, the following dates shall apply in the cases set out below:

2.   The various elements relating to the physical movement of products and the management of stocks shall be entered in the accounts on the date on which the physical operation under the intervention measure takes place.

However, the following dates shall apply in the cases set out below:

1.   The amount to be financed under the intervention measures referred to in Article 2 of Delegated Regulation (EU) No 906/2014 shall be determined on the basis of the accounts drawn up and kept by paying agencies in accordance with Article 3(3), first subparagraph, point (a) of Delegated Regulation (EU) 2022/127, and to which the various items of expenditure and revenue referred to in Article 16 of this Regulation are debited and credited, respectively, taking account where necessary of amounts of expenditure fixed under the sectoral agricultural legislation.

2.   Paying agencies or coordinating bodies as appropriate shall transmit to the Commission, each month and each year, by electronic means, on the basis of the models made available by the Commission to Member States through information systems, the information needed for the financing of public storage expenditure and the accounts evidencing expenditure and revenue relating to public storage in the form of tables, by the day provided for in Article 10(1) and by the date provided for in Article 33(2).

1.   Financing by the EAGF under the intervention measures referred to in Article 2 of Delegated Regulation (EU) No 906/2014 shall be equal to the expenditure, calculated on the basis of the information notified by the paying agency, after deduction of any revenue accruing from the intervention measures, validated by the information system set up by the Commission and included by the paying agency in its declaration of expenditure drawn up in accordance with Article 12 of this Regulation.

2.   Sums recovered in accordance with Article 53 of Regulation (EU) 2021/2116 and amounts received or recovered from sellers, purchasers and storers, which meet the criteria laid down in Article 45 of that Regulation shall be declared to the EAGF budget in accordance with Article 10(2), point (a), of this Regulation.

1.   Paying agencies shall declare expenditure and recovered amount for each rural development type of intervention and technical assistance under the CAP Strategic Plan as referred to in Article 118 of Regulation (EU) 2021/2115 for each of the reference periods, referred to in paragraph 2 of this Article, on the basis of the model made available by the Commission to Member States through information systems.

For each CAP Strategic Plan, paying agencies shall specify in a declaration of expenditure at least the following:

The expenditure effected and to be declared to the EAFRD shall take account of penalties applied in the framework of Member States’ management and control system in case of non-compliance.

2.   Once the Commission has approved a CAP Strategic Plan, Member States shall send to the Commission, in accordance with Article 90(1), first subparagraph, point (c)(i), of Regulation (EU) 2021/2116, their declarations of expenditure by the following deadlines:

If in a Member State the CAP Strategic Plan is implemented by more than one paying agency, the coordinating body shall ensure that the declarations of expenditure are transmitted on the same day.

However, all expenditure paid by paying agencies to the beneficiaries in accordance with Article 86 of Regulation (EU) 2021/2115 until the end of the last period, as specified in the first subparagraph of this paragraph, prior to the approval of a CAP Strategic Plan as referred to in Article 118 of that Regulation, is made under the Member States’ responsibility and shall be declared to the Commission in the first declaration of expenditure following the approval of that plan. Recovered amounts for the corresponding period, as referred to in paragraph 1, second subparagraph, points (d) and (e), of this Article shall also be declared in that declaration. The same rule shall apply mutatis mutandis in case of amendment of a CAP Strategic Plan as referred to in Article 119 of Regulation (EU) 2021/2115, except for financing plan adjustments as referred to in Article 23 of this Regulation.

As regards financial instruments set up in accordance with Article 58 of Regulation (EU) 2021/1060 and Article 80 of Regulation (EU) 2021/2115, the expenditure shall be declared in the financial year when the conditions as referred to in Article 32(3) and (4) of Regulation (EU) 2021/2116 are met and it had been effected by the paying agency before the end of the financial year.

All the financial information required under this Article shall be communicated in euro.

1.   The Union contribution to be paid in respect of the eligible public expenditure, excluding additional national financing as referred to in Article 115(5) of Regulation (EU) 2021/2115, shall be mentioned in the financing plan in force on the first day of the reference period and calculated as regards the CAP Strategic Plans referred to in Article 118 of that Regulation as follows:

The calculation shall take account of the corrections to the Union contribution as declared in the declaration of expenditure for that period.

2.   Without prejudice to the ceiling provided for in Article 30(2) of Regulation (EU) 2021/2116, where the combined total of the Union contribution paid to the CAP Strategic Plan exceeds the contribution to a type of intervention, as regards the EAFRD, the amount to be paid shall be reduced to the amount programmed for that type of intervention. Any Union contribution excluded as a result may be paid later provided that an adjusted financing plan has been submitted by the Member State and approved by the Commission.

1.   The Commission shall define the information systems enabling electronic exchanges of documents and information between it and the Member States for the communications and consultation of information provided for in Article 90 of Regulation (EU) 2021/2116 and the necessary arrangements for their application. It shall inform the Member States of the general conditions for implementing those systems via the Committee on the Agricultural Funds.

2.   The information systems referred to in paragraph 1 shall be able to process in particular:

3.   The form and content of the documents referred to in Articles 10, 18, 19, 21, 22, 23 and 32 shall be made available by the Commission to Member States by way of models through information systems.

Those models shall be adapted and updated by the Commission, after having informed the Committee on the Agricultural Funds.

4.   The information systems referred to in paragraph 1 may contain the tools required for storing the data and for managing the accounts of the Funds by the Commission.

5.   Data on financial transactions shall be communicated, entered and updated in the information systems referred to in paragraph 1 under the responsibility of paying agencies, by paying agencies themselves or by bodies to which that function has been delegated, where applicable via the coordinating bodies accredited in accordance with Article 9(4) and Article 10 of Regulation (EU) 2021/2116.

6.   Where a document sent pursuant to Article 90(1), point (c),(i) and (iii), of Regulation (EU) 2021/2116 or a procedure in the information systems require the signature or the approval of an authorised person at one or more of the stages of that procedure, that compulsory electronic signature or approval shall be done in compliance with Regulation (EU) No 910/2014.

7.   The electronic and digitised documents shall be kept for the whole of the period provided for in Article 3(3), first subparagraph, point (a), of Delegated Regulation (EU) 2022/127.

8.   Where there is a malfunction in an information system or no stable connection, the Member State may, with the prior approval of the Commission, send the documents in another form, under the conditions laid down by the Commission.

1.   Declarations of expenditure for the Funds shall be entered in the form of structured data by accredited paying agencies or the accredited coordinating body on the basis of the model made available by the Commission to Member States through information systems.

2.   EAGF and EAFRD expenditure and EAGF assigned revenue declared in respect of a period may contain corrections to data declared in respect of the preceding declaration periods of the same financial year.

3.   EAGF and EAFRD expenditure and assigned revenue to be charged to the financial year not introduced respectively in the monthly and interim declarations may be corrected only in the annual accounts to be sent to the Commission in accordance with Article 90(1), first subparagraph, point (c)(iii), of Regulation (EU) 2021/2116.

4.   The Union contribution shall be paid by the Commission, subject to resource availability, into the account(s) opened by each Member State.

5.   Each Member State shall notify the Commission of the name or number of the account(s) in accordance with the format made available to it by the Commission.

1.   Following the assessment of the justification submitted by the Member State in the context of the performance review referred to in Article 135 of Regulation (EU) 2021/2115, the Commission may ask the Member State concerned to submit an action plan as referred to in Article 41 of Regulation (EU) 2021/2116. The Member State shall submit an action plan within 2 months after receiving the Commission request. In that action plan the Member State shall propose concrete remedial actions to address the shortcomings and identify the interventions, which affect the performance of the CAP Strategic Plan, in particular as regards deviations from milestones set to achieve the specific objectives laid down in Article 6(1) of Regulation (EU) 2021/2115. The remedial actions shall be described in sufficient detail to enable the Commission assessing whether the action plan is appropriate to remedy these shortcomings, including, where relevant, the actions to improve the performance of the concerned interventions.

2.   For each of the actions the Member State shall set the planned implementation deadline which shall not be later than 2 years from the time the action plan is launched. In order to enable the review of the expected timeframe for execution of the action plan, Member State shall also set up progress indicators towards that deadline which shall be at least every 3 months throughout the duration of the action plan.

3.   Within a period of 2 months after receipt of the action plan from the Member State concerned, the Commission shall, where appropriate, inform that Member State in writing of its objections to the submitted action plan and request its modification. The Member State concerned shall provide further clarifications or submit an updated action plan within 2 months after receiving the Commission comments.

4.   Following the period referred to in paragraph 3, the Commission shall inform the Member State in writing within a period of 2 months, whether it considers that the action plan is sufficient to address the shortcomings affecting the performance of the CAP Strategic Plan. In case of a positive assessment, the receipt of that assessment by the Member State shall be considered as the date of launching the implementation of the action plan. The launching date is without prejudice to the possibility for the Member State concerned to start implementing remedial actions earlier. In case of a negative assessment, the Commission shall inform the Member State concerned of its intention concerning the suspension of payments, referred to in Article 41(2) of Regulation (EU) 2021/2116.

5.   Member States shall prepare the action plans and report on the progress in their implementation in line with the respective template provided by the Commission at the moment of the submission of the annual performance report, in accordance with Article 9(3), first subparagraph, point (b), of Regulation (EU) 2021/2116. The template shall be available and used in electronic form.

1.   Member State shall submit the action plan referred to in Article 42 of Regulation (EU) 2021/2116 within 2 months after receiving the Commission request. In its action plan, the Member State concerned shall propose concrete actions to address each of the serious deficiencies indicated by the Commission. The corrective actions shall be adequately described so as to enable the Commission to assess whether the action plan is sufficient to remedy the deficiencies.

2.   For each of the actions Member State shall set the planned implementation deadline which shall not be later than 2 years from the date of the launching of the action plan. In order to enable the review of progress indicators, Member State shall also set milestones towards that deadline which shall be at least every 3 months throughout the duration of the action plan.

3.   Within 2 months after receipt of the action plan from the Member State concerned, the Commission shall, where appropriate, inform that Member State in writing of its objections to the submitted action plan and request its modification. The Member State concerned shall provide further clarifications or submit an updated action plan within 2 months after receiving the Commission comments. In duly justified cases, this period may be extended.

4.   Following the exchanges referred to in paragraph 3, and not later than 2 months after receiving the latest communication from the Member State, the Commission shall inform the Member State in writing of its assessment. In case of a positive assessment, the receipt of that assessment by the Member State shall be considered as the date of launching the implementation of the action plan. The launching date is without prejudice to the possibility for the Member State concerned to start implementing remedial actions earlier. In case of a negative assessment due to a manifestly insufficient action plan, the Commission shall inform the Member State concerned of its intention concerning the suspension of payments, referred to in Article 42(2) of Regulation (EU) 2021/2116.

5.   Where there is insufficient progress in the implementation of the action plan or it has not been submitted in accordance with the written request of the Commission, the Commission shall inform the Member State concerned of its intention concerning the suspension of payments, referred to in Article 42(2) of Regulation (EU) 2021/2116.

6.   For recurrent serious deficiencies revealed in the quality assessment reports referred to in Articles 68(3), 69(6) and 70(2) of Regulation (EU) 2021/2116, the Commission shall request an action plan in accordance with Article 42 (1) of that Regulation, if the same deficiencies are detected without any improvement in the second consecutive year.

7.   Member States shall prepare the action plans and report on the progress in their implementation in accordance with the respective template provided by the Commission. The template shall be available and used in electronic form.

1.   For any undue payment following the occurrence of irregularity or negligence, Member States shall set up a system ensuring a recovery request from the beneficiaries within a reasonable time frame after where applicable, the paying agency or body responsible for the recovery received a control report or similar document, stating that an irregularity has taken place. The system shall ensure that the corresponding amounts are recorded at the time of the recovery request in the debtors' ledger of the paying agency.

2.   The Member States shall have a system in place to ensure that the recovery procedures, including calculation of interest in accordance with the applicable national laws, regulations and administrative provisions referred to in Article 59(1) of Regulation (EU) 2021/2116, off-setting and enforcement of unduly paid amounts, are launched and followed up in a timely manner. The follow up of a debt according to the applicable national recovery procedure shall be ensured and the recovered amounts shall be reimbursed to the Funds in due time.

3.   The correction of a debt towards the Funds shall only take place if the absence of any irregularity is recorded by an administrative or legal instrument of a final nature.

4.   The Member States shall properly justify the write-off of a debt and the decision not to pursue the recovery of a debt in accordance with the applicable national rules.

1.   The annual accounts referred to in Article 90(1), first subparagraph, point (c)(iii), of Regulation (EU) 2021/2116 shall include:

2.   The annual accounts shall be the basis for the Annual Performance Report to be submitted pursuant to Article 134 of Regulation (EU) 2021/2115.

1.   For the purpose of the clearance of accounts pursuant to Articles 53 and 54 of Regulation (EU) 2021/2116, each Member State shall send to the Commission:

Upon request by the Commission, the Member State shall provide the complete records of all the accounting information required for statistical and control purposes, related to expenditure as regards the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014.The form and content of the accounting information shall be specified by the Commission.

2.   The documents referred to in paragraph 1 shall be sent to the Commission by 15 February at the latest, of the year following the end of the financial year to which they relate. The documents shall be submitted electronically in accordance with the format and under the conditions established by the Commission pursuant to Article 25.

Those documents shall bear a compulsory electronic signature within the meaning of Regulation (EU) No 910/2014.

3.   At the request of the Commission or on the initiative of a Member State, further information concerning the clearance of accounts may be addressed to the Commission within a time period determined by the Commission, taking into account the amount of work required for providing that information. In the absence of such information, the Commission may clear the accounts on the basis of the information in its possession.

4.   In duly justified cases, the Commission may accept a request for late submission of information, if that request is addressed to it before the submission deadline.

1.   The supporting documents regarding the expenditure financed and the assigned revenues to be collected by the EAGF shall be kept at the Commission’s disposal for at 3 years following the year in which the Commission clears the accounts of the financial year concerned pursuant to Article 53 of Regulation (EU) 2021/2116.

2.   The supporting documents regarding the expenditure financed and the assigned revenues to be collected by the EAFRD shall be kept at the Commission’s disposal for at least 3 years following the year in which the final payment by the paying agency has taken place.

3.   In the case of irregularities or negligence, the supporting documents referred to in paragraphs 1 and 2 shall be kept at the Commission’s disposal for at least 3 years following the year in which the sums are entirely recovered from the beneficiary and credited to the Funds.

4.   The supporting documents regarding the outputs corresponding to the expenditure declared under the EAGF pursuant to Regulation (EU) 2021/2115 and under the EAFRD shall be kept at the Commission’s disposal for at least 3 years following the year in which the final expenditure under the CAP Strategic Plans pursuant to Regulation (EU) 2021/2115 is declared.

5.   In the case of a conformity procedure provided for in Article 55 of Regulation (EU) 2021/2116, the supporting documents referred to in paragraphs 1 and 2 of this Article shall be kept at the Commission’s disposal for at least 1 year following the year in which that procedure has been concluded or, if a conformity decision is the subject of legal proceedings before the Court of Justice of the European Union, for at least 1 year following the year in which those proceedings are concluded.

6.   The supporting documents referred to in paragraphs 1 to 5 shall be kept at the Commission’s disposal either in paper form, in electronic form and/or in both forms.

Documents may only be kept exclusively in electronic form if the national law of the Member State concerned permits the use of electronic documents as evidence of the underlying transactions in national court proceedings.

If the documents are kept in electronic form only, the system for doing so shall comply with Section 3.(B) of Annex I to Delegated Regulation (EU) 2022/127.

1.   The Commission’s decision on the clearance of accounts referred to in Article 53 of Regulation (EU) 2021/2116 shall determine the amounts of expenditure effected in each Member State during the financial year concerned which shall be recognised as being chargeable to the Funds on the basis of the accounts referred to in Article 32 of this Regulation and any reductions and suspensions pursuant to Articles 39, 40 and 41 of Regulation (EU) 2021/2116.

For the EAFRD, the amount determined by the clearance of accounts decision shall include the funds which are re-usable by reallocation by the Member State concerned pursuant to Article 57 of Regulation (EU) 2021/2116.

2.   As regards the EAGF, the amount which, as a result of the clearance of accounts decision, is recoverable from or payable to each Member State shall be established by deducting the monthly payments in respect of the financial year concerned from the expenditure recognised for the same year in accordance with paragraph 1. The Commission shall deduct that amount from or add it to the monthly payment relating to the expenditure effected in the second month following the clearance of accounts decision.

As regards the EAFRD, the amount which, as a result of the clearance of accounts decision, is recoverable from or payable to each Member State shall be established by deducting the intermediate payments in respect of the financial year concerned from the expenditure recognised for the same year in accordance with paragraph 1.

The Commission shall deduct that amount from or add it to the first payment for which the declaration of expenditure is submitted by the Member State after the decision pursuant to Article 53 of Regulation (EU) 2021/2116 has been adopted.

3.   The Commission shall communicate to the Member State concerned the results of its verification of the information supplied, together with any amendments it proposes, by 30 April following the end of the financial year at the latest.

4.   If, for reasons attributable to the Member State concerned, the Commission is unable to clear the accounts of a Member State before 31 May of the following year, the Commission shall notify that Member State of the additional inquiries it proposes to undertake pursuant to Article 49 of Regulation (EU) 2021/2116.

5.   Paragraphs 1 to 4 shall apply, mutatis mutandis, to the assigned revenue referred to Article 45 of Regulation (EU) 2021/2116.

1.   When determining what amounts are to be reduced from Union financing, when finding that expenditure does not have a corresponding output as reported in the annual performance report referred to in Article 54(1) of Regulation (EU) 2021/2116 and in Article 134 of Regulation (EU) 2021/2115, the Commission shall use its own findings and the findings of the certification body, and shall take into account the information made available by Member States, provided that the latter information is provided within the time limits set by the Commission in the framework of the annual performance clearance procedure carried out in accordance with Article 54 of Regulation (EU) 2021/2116 and in conformity with this Article.

2.   When, as a result of the annual clearance documents submitted by the Member State and in the absence of sufficient justifications, the Commission considers that expenditure does not have a corresponding output, it shall communicate its findings to the Member State concerned, specifying the difference found. The communication shall make reference to this Article.

The Member State shall reply within a deadline to be fixed in the communication, which shall not be less than 30 calendar days of receipt of the communication. In its reply, the Member State shall have the opportunity, in particular, to:

The communication referred to in the first and second subparagraphs may be made via electronic means.

3.   The Commission, after having assessed the Member States’ justifications in accordance with paragraph 2 of this Article, shall adopt, where appropriate, a decision under Article 54 of Regulation (EU) 2021/2116 in order to reduce from Union financing expenditure which does not have a corresponding output for the financial year in question.

4.   As regards the EAGF, the reductions from the Union financing shall be made by the Commission from the monthly payments relating to the expenditure effected in the second month following the decision pursuant to Article 54 of Regulation (EU) 2021/2116.

5.   As regards the EAFRD, the reductions from Union financing shall be made by the Commission from the payment for which the declaration of expenditure is submitted by the Member State after the decision pursuant to Article 54 of Regulation (EU) 2021/2116 has been adopted.

6.   Paragraphs 1 to 5 shall apply, mutatis mutandis, to the assigned revenue referred to in Article 45 of Regulation (EU) 2021/2116.

1.   In order to determine what amounts are to be excluded from Union financing, when finding that expenditure has not been effected in conformity with Union rules, the Commission shall use its own findings and shall take into account the information made available by Member States, provided that the latter information is provided within the time limits set by the Commission in the framework of the conformity procedure carried out in accordance with Article 55 of Regulation (EU) 2021/2116 and in conformity with this Article. For interventions under the integrated administration and control system, referred to in Article 65 of that Regulation, the Commission shall also take into account the assessment reports on the quality of the identification system for agricultural parcels, of the geo-spatial application and of the area monitoring system.

2.   When, as a result of any inquiry, the Commission considers that expenditure was not effected in compliance with Union rules, it shall communicate its findings to the Member State concerned, specifying the corrective measures needed to ensure future compliance with those rules, and indicating the provisional level of financial correction which at that stage of the procedure it considers corresponds to its findings. That communication shall also schedule a bilateral meeting within 5 months after expiry of the period for reply by the Member State. The communication shall make reference to this Article.

The Member State shall reply within 2 months of receipt of the communication. In its reply the Member State shall have the opportunity, in particular, to:

In justified cases, the Commission may, upon reasoned request of the Member State, authorise an extension of the 2-month period by a maximum of 2 months. The justified reason may be the certification body’s assessment of the Member State’s calculation. The request shall be addressed to the Commission before the expiry of that period.

If the Member State considers that a bilateral meeting is not required, it shall inform the Commission accordingly in its reply to the communication.

3.   In the bilateral meeting both parties shall endeavour to come to an agreement as to the measures to be taken as well as to the evaluation of the gravity of the infringement and of the financial damage caused to the Union budget.

The Commission shall within 30 working days of the bilateral meeting draw up the minutes and send them to the Member State. The Member State may send its observations to the Commission within 15 working days after receipt of the minutes.

The Commission shall within 6 months after sending the minutes of the bilateral meeting formally communicate its conclusions to the Member State on the basis of the information received in the framework of the conformity procedure. That communication shall evaluate the expenditure to be excluded from Union financing under Article 55 of Regulation (EU) 2021/2116 and Articles 14 and 15 of Delegated Regulation (EU) 2022/127. The communication shall make reference to Article 43(1) of this Regulation.

If a Member State notifies the Commission that a bilateral meeting is not required, the 6-month period starts from the date of receipt by the Commission of the notification.

4.   Where the Member State has made use of the conciliation procedure referred to in Article 43, the Commission shall communicate its conclusions to the Member State no later than 6 months after:

5.   In order to apply paragraphs 3 and 4 within the respective time periods, the Commission shall have available all information relevant at that particular step of the procedure. Where the Commission deems it lacks information, it may at any time within the time periods set out in those paragraphs:

In that case, the time periods referred to in paragraphs 3 and 4 shall start again either on the receipt by the Commission of the requested additional information or from the last day of the additional audit mission.

Where the time periods referred to in paragraphs 2, 3 and 4 and in this paragraph include fully or partially the month of August, the running of those time periods will be suspended during that month.

6.   When evaluating the expenditure to be excluded from Union financing, the information communicated by the Member State after the Commission’s formal communication referred to in paragraph 3, third subparagraph, may only be taken into account:

7.   The Commission, after having communicated its conclusions to the Member States in accordance with paragraph 3 or 4 of this Article, shall adopt, where appropriate, one or more decisions under Article 55 of Regulation (EU) 2021/2116 in order to exclude from Union financing expenditure affected by the non-compliance with Union rules. The Commission may pursue consecutive conformity procedures until the Member State has actually implemented the corrective measures.

8.   As regards the EAGF, the deductions from the Union financing shall be made by the Commission from the monthly payments relating to the expenditure effected in the second month following the decision pursuant to Article 55 of Regulation (EU) 2021/2116.

As regards the EAFRD, the deductions from Union financing shall be made by the Commission from the payment for which the declaration of expenditure is submitted by the Member State after the decision pursuant to Article 55 of Regulation (EU) 2021/2116 has been adopted.

However, at the Member State’s request and after consultation of the Committee on the Agricultural Funds, the Commission may adopt an implementing decision setting a different date for the deductions or authorising their reimbursement in not more than three instalments where this is warranted by the materiality of the deductions included in an implementing act adopted on the basis of Article 55 of Regulation (EU) 2021/2116. This request for instalments shall be submitted by the Member State to the Commission not later than 5 days after the consultation of the Committee on the Agricultural Funds on the decision pursuant to Article 55 of that Regulation.

9.   For Member States which are subject to financial assistance under Council Regulation (EC) No 332/2002 (22), Council Regulation (EU) No 407/2010 (23) and the Treaty establishing the European Stability Mechanism, the Commission may, at the Member State's request and after consultation of the Committee on the Agricultural Funds, adopt an implementing decision deferring, for a period not exceeding 24 months from the date of its adoption, the execution of decisions adopted after 1 May 2025 pursuant to Article 55 of Regulation (EU) 2021/2116 (‘deferral decision’).

The deferral decision shall authorise the deductions to be made after the end of the deferral period in three annual instalments. Where the total amount subject to the deferral decision represents more than 0,02 % of the Member State's gross domestic product, the Commission may authorise the reimbursement in maximum five annual instalments.

The Commission may decide, at the Member State's request and after consultation of the Committee on the Agricultural Funds, to extend once, for a period not exceeding 12 months, the time period of deferral referred to in the first subparagraph.

The Member State benefitting from a deferral decision shall ensure that the deficiencies which have been the reasons for the deductions and which persist at the time of adoption of the deferral decision are being remedied on the basis of an action plan, established in consultation with the Commission, including deadlines and clear progress indicators. The Commission shall amend or repeal the deferral decision, taking into account the principle of proportionality, in one of the following cases:

10.   The implementing decisions referred to in paragraphs 8 and 9 shall be adopted in accordance with the advisory procedure referred to in Article 102(2) of Regulation (EU) 2021/2116.

11.   In duly justified cases to be notified to the Member State concerned, the Commission may extend the time periods set out in paragraphs 2 to 5.

12.   The communications referred to in this Article may be made via electronic means.

13.   Paragraphs 1 to 11 shall apply, mutatis mutandis, to the assigned revenue referred to in Article 45 of Regulation (EU) 2021/2116.

1.   The Commission may decide not to start or pursue a conformity inquiry in accordance with Article 55 of Regulation (EU) 2021/2116 where it expects that the possible financial correction, for the non-compliance identified as a result of an inquiry referred to in Article 37(2) of this Regulation, would not exceed EUR 50 000 and 2 % of the relevant expenditure or the amounts to be recovered.

2.   Where the Commission reduces the monthly payments in accordance with Article 39(1) and (2) of Regulation (EU) 2021/2116, it may decide not to start or pursue a conformity inquiry in accordance with Article 55 of that Regulation, provided that the Member State concerned has not expressed its objection to the application of this paragraph in the framework of the procedure provided for in Article 39(1) and (2) of that Regulation.

1.   The conciliation body shall be composed of at least five members selected among eminent persons offering every guarantee of independence and who are highly qualified in matters regarding the financing of the common agricultural policy, including rural development, or in the practice of financial audit.

They must be nationals of different Member States.

2.   The chairperson, the members and the substitute members shall be appointed by the Commission for an initial term of office of 3 years after consultation of the Committee on the Agricultural Funds.

The terms of office may be renewed for a year at a time only, the Committee on the Agricultural Funds having been informed. However, if the chairperson to be appointed is already a member of the Conciliation Body, the initial term of office as chairperson shall be three years.

The names of the chairperson, the members and the substitute members shall be published in the C series of the Official Journal of the European Union.

3.   The members of the conciliation body shall be remunerated having regard to the time which they are required to dedicate to the task. Costs shall be compensated in accordance with the rules in force for Commission staff.

4.   After expiry of the term of office, the chairperson and the members shall remain in office until they are replaced or their term of office is renewed.

5.   The term of office of members who no longer meet the conditions required for the accomplishment of their duties with the conciliation body or who, for whatever reason, are unavailable for an indeterminate period may be terminated by the Commission after consultation of the Committee on the Agricultural Funds.

In that case, the member concerned shall be replaced for the remainder of the period for which that member was appointed by a substitute member, the Committee on the Agricultural Funds being informed.

If the chairperson’s term of office is terminated, the member who is to perform the chairperson’s duties for the remainder of the period for which the chairperson was appointed shall be appointed by the Commission after consultation of the Committee on the Agricultural Funds.

1.   The members of the conciliation body shall carry out their duties independently, neither seeking nor accepting instructions from the Commission, any government or body.

The members shall not take part in the work of the conciliation body or sign a report if, in a previous office, they have been personally involved in the matter at issue.

2.   Without prejudice to Article 287 of the Treaty, the members shall not disclose any information acquired by them in the course of their work for the conciliation body. Such information shall be confidential and covered by the obligation of professional secrecy.

1.   The conciliation body shall meet at the headquarters of the Commission. The chairperson shall prepare and organise the work. In the chairperson’s absence, and without prejudice to Article 40(5), first subparagraph, the most senior member shall take the chair.

The secretariat of the conciliation body shall be provided by the Commission.

2.   Without prejudice to Article 41(1), second subparagraph, reports shall be adopted by an absolute majority of members present, the quorum for deliberations being three.

The reports shall be signed by the chairperson and members who have taken part in the deliberations. They shall be co-signed by the secretariat.

1.   A Member State may refer a matter to the conciliation body within 30 working days of receipt of the Commission’s formal communication referred to in Article 37(3), third subparagraph, by sending a reasoned request for conciliation to the secretariat of the conciliation body.

2.   The procedure to be followed and the address of the secretariat shall be notified to the Member States through the Committee on the Agricultural Funds.

3.   A request for conciliation shall only be admissible where the amount envisaged to be excluded from the Union financing according to the Commission’s communication either:

In addition, if during the preceding discussions the Member State claimed and demonstrated that the matter is one of principle relating to the application of Union rules, the chairperson of the conciliation body may declare a request for conciliation to be admissible. However, such a request shall not be admissible if it relates solely to a matter of legal interpretation.

4.   The conciliation body shall conduct its investigations as informally and promptly as possible, basing itself solely on the evidence available to the Commission at the time when formal conclusions are communicated in accordance with Article 37(3), third subparagraph, and giving the Commission and the national authorities concerned a fair hearing.

However, if the Member State considers it necessary to present in its request for conciliation information which has not yet been communicated to the Commission, the conciliation body may invite the Commission to assess that new information only if the conditions set out in Article 37(6) are met. The information shall be communicated to the Commission at the latest 2 months after the report referred to in Article 39, point (c), has been sent.

5.   Where, within 4 months of a case being referred to it, the conciliation body is not able to reconcile the positions of the Commission and the Member State, the conciliation procedure shall be deemed to have failed.

6.   The report referred to in of Article 39, point (c), shall state the reasons why the positions could not be reconciled. It shall indicate whether any partial agreement was reached during the proceedings and whether the conciliation body invites the Commission to assess new information in accordance with paragraph 4, second subparagraph.

7.   The report shall be sent to:

8.   Where the time periods referred to in paragraphs 1, 4, second subparagraph, and 5 include fully or partially the month of August, the running of those time periods will be suspended during that month.

1.   Member States shall ensure that beneficiaries provide in the aid applications and payment claims the information necessary for their identification, including, where applicable, the identification of the group, as defined in Article 2(11) of Directive 2013/34/EU of the European Parliament and of the Council (24) in which they participate as of a certain date to be set by the Member State. That information shall include at least:

The information referred to in the first subparagraph may be used when drawing up the check sample referred to in Article 60(1), second subparagraph, of Regulation (EU) 2021/2116. The information may, in particular, be used to carry out checks as regards circumvention as referred to in Article 62 of that Regulation.

2.   The information on the identification of groups as referred in paragraph 1, first subparagraph, points (a), (b) and (c), shall be published ex-post by the Member State, in accordance with Article 98 of Regulation (EU) 2021/2116.

1.   In order to make use on a voluntary basis of the data-mining tool referred to in Article 59(2) of Regulation (EU) 2021/2116 to be made available by the Commission for the checks under Article 60 of that Regulation, Member States shall ensure that:

2.   Where the Member State decides to use the information collected under Article 44 of this Regulation when drawing up the check sample referred to in Article 60(1), second subparagraph, of Regulation (EU) 2021/2116, the information may be verified by means of that data-mining tool.

1.   The systematic scrutiny of the commercial documents of undertakings referred to in Article 77(1) of Regulation (EU) 2021/2116 shall apply, for each period of scrutiny referred to in paragraph 4 of this Article, to a number of undertakings which may not be less than half the undertakings whose receipts or payments, or the sum thereof, under the system of financing by the EAGF, exceeded EUR 150 000 for the EAGF financial year preceding the beginning of the period of scrutiny in question.

2.   In relation to each scrutiny period, Member States shall, without prejudice to their obligations laid down in Article 77(1) of Regulation (EU) 2021/2116, select the undertakings to be scrutinised on the basis of a risk analysis for all measures where it is practicable to do so. Member States shall communicate to the Commission the risk analysis as part of the control plan referred in Article 80(1) of that Regulation.

3.   For measures for which a Member State considers the use of a risk analysis not to be practicable, it shall be compulsory to scrutinise undertakings which receive payments exceeding EUR 350 000 within the system of financing by the EAGF and which were not scrutinised in accordance with this Regulation and Title IV, Chapter III, of Regulation (EU) 2021/2116 during either of the two preceding scrutiny periods.

4.   The scrutiny period shall run from 1 July to 30 June of the following year.

1.   The control plan for scrutiny and the report referred to in Article 80 of Regulation (EU) 2021/2116 shall be drawn up in accordance with the specimen form set out in Annexes VI and VII to this Regulation.

2.   The information to be submitted under this Article shall be communicated in electronic form.

3.   The Commission shall inform annually the Member States of the results of the scrutiny.

1.   This Article shall apply when a specific Regulation refers to it.

2.   A request for recognition of a case of force majeure shall not be admissible if it is received by the competent authority more than 30 calendar days after the date on which the operator was informed by the competent authority of the established non-fulfilment of the relevant obligation within the meaning of Article 24(2) of Delegated Regulation (EU) 2022/127, the expiry of the time limit for the fulfilment of the relevant obligation as referred to in Article 24(3) of that Regulation or the expiry of the time limit for the presentation of the proof for the fulfilment of the relevant obligation as referred to in Article 24(4) of that Regulation.

3.   Operators shall, to the competent authority’s satisfaction, provide proof of the circumstances which they consider to constitute force majeure within 181 calendar days of the expiry of the period in which the obligation had to be fulfilled completely. Operators may be granted further time if they are unable to produce proof within that time limit despite having acted with all due diligence.

4.   Member States shall notify the Commission of the cases of force majeure they have recognised, providing the relevant information of each case.

1.   A security may be given:

2.   At the discretion of the competent authority, a security may be given by:

3.   The competent authority may impose additional terms for accepting securities of the type listed in paragraph 2.

1.   Collateral pledged in accordance with Article 52(2), point (c), shall, at the time the security is given, have a disposable value of at least 115 % of the value of the security required.

2.   A competent authority may accept a security as referred to in Article 52(2), point (c), only if the party offering it undertakes, in writing, either to give an additional security or to replace the original security should the disposable value of the security in question have been for a period of 3 months below 105 % of the value of the security required. That written undertaking shall not be necessary where national law already so provides. The competent authority shall regularly review the value of such security.

3.   The disposable value of a security as referred to in Article 52(2), point (c), shall be assessed by the competent authority, taking into account any costs of disposal.

4.   The disposable value of securities shall be assessed using the last available quotation.

5.   The party giving the security shall, at the request of the competent authority, provide proof of its disposable value.

1.   Any form of security may be replaced by another.

However, the agreement of the competent authority shall be required in the following cases:

2.   A block security may be replaced by another block security on condition that the new block security covers at least that part of the original block security assigned at the time of replacement to ensure fulfilment of one or more obligations still outstanding.

3.   As soon as part of a block security is assigned to a particular obligation, the balance of the block security remaining shall be noted.

1.   Once the competent authority is aware of circumstances giving rise to forfeiture of the security, in whole or in part, it shall without delay demand the party required to meet the obligation to pay the sum forfeited, allowing up to 30 days from the day of receipt of demand for payment.

Where payment has not been made at the end of that period, the competent authority shall:

The competent authority may without delay clear any security of the type described in Article 52(1), point (a), to the appropriate account without first requiring the person concerned to effect payment.

2.   Without prejudice to paragraph 1:

3.   Where a security has been forfeited and the amount already credited to the Funds and, following the outcome of an appeal procedure, the sum forfeited in whole or in part, including interest at a rate in accordance with national law, is to be repaid, the sum to be repaid shall be borne by the Funds, unless the repayment of the security is attributable to the negligence or serious mistake of administrative authorities or other bodies of the Member State.

1.   Member States shall keep available for the Commission, for each year, the total number and sum of securities forfeited, whatever stage of the procedure set out in Article 56 has been reached, distinguishing in either case between those credited to the national budgets and those credited to the budget of the Union. That information shall be kept in relation to all securities forfeited for an amount greater than EUR 1 000 and each Union provision requiring that a security be given. The information shall cover both sums paid directly by the interested party and sums recovered by realising a security.

2.   Member States shall keep at the Commission’s disposal a list of: