Home Europe European Commission Commission Implementing Decision (EU) 2019/265 of 12 Februar...
Date: 2019-02-15 Category: Not Applicable State: Union Government Country: Europe

Commission Implementing Decision (EU) 2019/265 of 12 February 2019 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (notified under document C(2019) 869)

Issued by European Commission · Directorate-General for Agriculture and Rural Development

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Executive Summary & Key Takeaways

Executive Summary: This Commission Implementing Decision (EU) 2019/265, dated 12 February 2019, excludes certain expenditures incurred by Member States from European Union financing under the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD). The decision is based on verifications, bilateral discussions, and conciliation procedures, addressing expenditure that has infringed Union law. It considers expenditure declared no more than twenty-four months before the Commission's written notification of verification results. Key Points / Main Content: General Provisions: * The Commission carries out verifications, communicates results to Member States, considers their comments, and initiates bilateral discussions. * Expenditure must comply with Union law to be financed. * Amounts not chargeable to EAGF and EAFRD are specified, relating to expenditure within twenty-four months of verification result notification. * Reductions or suspensions under Article 41 of Regulation EU No 1306/2013 are considered, without prejudice to decisions under Articles 51 or 52. * The assessment of excluded amounts due to non-compliance was notified to Member States in a summary report. * The decision does not prejudice financial conclusions from pending Court of Justice cases as of 15 November 2018. Specific Measures: * Amounts in the Annex related to expenditure by Member States' accredited paying agencies under EAGF or EAFRD are excluded from Union financing. Addressees: * The decision is addressed to Belgium, Czech Republic, Germany, Ireland, Greece, Spain, France, Italy, Netherlands, Austria, Portugal, Romania and Sweden. Impact Analysis: Member States: * Impact: Financial losses due to exclusion of certain expenditures from EU financing under EAGF and EAFRD. * Action Required: Review the Annex to identify excluded amounts and adjust financial reporting accordingly. Accredited Paying Agencies: * Impact: Exclusion of certain declared expenditures from Union financing, affecting their financial management. * Action Required: Adjust financial claims to reflect excluded amounts and improve compliance with Union law in future expenditure declarations. European Commission: * Impact: Enforcement of regulations regarding agricultural expenditure and management of related funds. * Action Required: Monitor the implementation of this decision by Member States and ensure compliance with EU law.

Key Entities Referenced

European Agricultural Guarantee Fund EAGF: A fund within the European Union's Common Agricultural Policy that provides direct payments and market-related expenditure. European Agricultural Fund for Rural Development EAFRD: A fund within the European Union's Common Agricultural Policy that supports rural development projects and initiatives. Regulation EU No 1306/2013: A European Union regulation on the financing, management and monitoring of the common agricultural policy. Kingdom of Belgium: One of the Member States to which the decision is addressed. Czech Republic: One of the Member States to which the decision is addressed. Federal Republic of Germany: One of the Member States to which the decision is addressed. Ireland: One of the Member States to which the decision is addressed. Kingdom of Spain: One of the Member States to which the decision is addressed.
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L 44/14 EN Official Journal of the European Union 15.2.2019 COMMISSION IMPLEMENTING DECISION (EU) 2019/265 of 12 February 2019 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (notified under document C(2019) 869) (Only the Czech, Dutch, English, French, German, Greek, Italian, Portuguese, Romanian, Spanish and Swedish texts are authentic) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (1), and in particular Article 52 thereof, After consulting the Committee on the Agricultural Funds, Whereas: (1) In accordance with Article 52 of Regulation (EU) No 1306/2013 the Commission is to carry out the necessary verifications, communicate to the Member States the results of those verifications, take note of the comments of the Member States, initiate a bilateral discussion so that an agreement may be reached with the Member States in question, and formally communicate its conclusions to them. (2) The Member States have had an opportunity to request the launch of a conciliation procedure. That opportunity has been used in some cases and the reports issued on the outcome have been examined by the Commission. (3) In accordance with Regulation (EU) No 1306/2013, only agricultural expenditure which has been incurred in a way that has not infringed Union law may be financed. (4) In the light of the verifications carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil this requirement and cannot, therefore, be financed under the EAGF and the EAFRD. (5) The amounts that are not recognised as being chargeable to the EAGF and the EAFRD should be indicated. Those amounts do not relate to expenditure incurred more than twenty-four months before the Commission's written notification of the results of the verifications to the Member States. (6) The amounts excluded from Union financing by the present Decision should also take into account any reductions or suspensions in accordance with Article 41 of Regulation (EU) No 1306/2013 due to the fact that such reductions or suspensions are of a provisional nature and without prejudice to decisions taken pursuant to Articles 51 or 52 of that Regulation. (7) As regards the cases covered by this decision, the assessment of the amounts to be excluded on grounds of non- compliance with Union law was notified by the Commission to the Member States in a summary report on the subject (2). (8) This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments of the Court of Justice of the European Union in cases pending on 15 November 2018, HAS ADOPTED THIS DECISION: Article 1 The amounts set out in the Annex and related to expenditure incurred by the Member States' accredited paying agencies and declared under the EAGF or the EAFRD shall be excluded from Union financing. (1) OJ L 347, 20.12.2013, p.549 (2) Ares(2019)40460515.2.2019 EN Official Journal of the European Union L 44/15 Article 2 This Decision is addressed to the Kingdom of Belgium, the Czech Republic, the Federal Republic of Germany, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, Romania and the Kingdom of Sweden. Done at Brussels, 12 February 2019. For the Commission Phil HOGAN Member of the CommissionANNEX Budget Item: 05070107 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State CZ Cross-compliance 2011 Reimbursement following judgment in FLAT RATE 2,00 % EUR 423 793,95 3,36 423 790,59 case T-627/16 Cross-compliance 2011 Reimbursement following judgment in FLAT RATE 10,00 % EUR 2 118 969,77 16,78 2 118 952,99 case T-627/16 Total CZ: EUR 2 542 763,72 20,14 2 542 743,58 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State SE Decoupled Direct Aids 2014 Reimbursement following judgment in FLAT RATE 2,00 % EUR 8 811 286,44 0,00 8 811 286,44 case T-260/16 Total SE: EUR 8 811 286,44 0,00 8 811 286,44 Currency Amount Deductions Financial Impact EUR 11 354 050,16 20,14 11 354 030,02 Budget Item: 6701 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State AT Decoupled Direct Aids 2016 Payment entitlements - Article 24(6) of ONE OFF EUR – 2 762 784,00 0,00 – 2 762 784,00 R. 1307/2013 Decoupled Direct Aids 2017 Payment entitlements - Article 24(6) of ONE OFF EUR – 5 268 498,00 0,00 – 5 268 498,00 R. 1307/2013 Decoupled Direct Aids 2016 Quality of LPIS - pro rata - 10 % ONE OFF EUR – 95 167,00 0,00 – 95 167,00 threshold L 44/16 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Decoupled Direct Aids 2017 Quality of LPIS - pro rata - 10 % ONE OFF EUR – 95 167,00 0,00 – 95 167,00 threshold Decoupled Direct Aids 2017 Quality of LPIS - pro rata factors ONE OFF EUR – 639 853,00 0,00 – 639 853,00 Decoupled Direct Aids 2016 Quality of the LPIS - pro rata factors ONE OFF EUR – 538 452,00 0,00 – 538 452,00 Total AT: EUR – 9 399 921,00 0,00 – 9 399 921,00 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State DE Certification 2017 CEB/2018/020/DE - errors in EAGF ONE OFF EUR – 162,53 0,00 – 162,53 and EAFRD Total DE: EUR – 162,53 0,00 – 162,53 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State ES Other Direct 2015 Area paid for production of tomato ONE OFF EUR – 617 823,18 0,00 – 617 823,18 Aid - POSEI (2014+) not exported Other Direct 2016 Area paid for production of tomato ONE OFF EUR – 433 756,91 0,00 – 433 756,91 Aid - POSEI (2014+) not exported Other Direct 2017 Area paid for production of tomato ONE OFF EUR – 424 985,80 0,00 – 424 985,80 Aid - POSEI (2014+) not exported Certification 2016 Known errors - EAGF ONE OFF EUR – 374 098,28 – 363 476,73 – 10 621,55 15.2.2019 EN Official Journal of the European Union L 44/17Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Certification 2016 Known errors- EAGF Non IACS ONE OFF EUR – 861 340,55 – 412 107,97 – 449 232,58 Other Direct 2015 non-compliance in determining the ONE OFF EUR – 4 472,38 0,00 – 4 472,38 Aid - POSEI (2014+) area for payment in the administrative checks: unauthorised tolerance of 1 % is used Other Direct 2016 non-compliance in determining the ONE OFF EUR – 901,63 0,00 – 901,63 Aid - POSEI (2014+) area for payment in the administrative checks: unauthorised tolerance of 1 % is used POSEI (2014+) 2015 SSA-Regional trade: non respect of ONE OFF EUR – 12 501,12 0,00 – 12 501,12 the maximum quantities of pro­ cessed products which can be exported annually from the Canary Islands in the context of regional trade, Annex V Regulation 180/2014, CN code 1901 90 Total ES: EUR – 2 729 879,85 – 775 584,70 – 1 954 295,15 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State FR Certification 2015 Ponctuelle: erreur connue ONE OFF EUR – 3 008,88 0,00 – 3 008,88 Certification 2015 Ponctuelle: gestion des irregularites ONE OFF EUR – 1 450 566,69 0,00 – 1 450 566,69 Certification 2015 Ponctuelle: tests de validation ONE OFF EUR – 76 266,65 – 88,75 – 76 177,90 Total FR: EUR – 1 529 842,22 – 88,75 – 1 529 753,47 L 44/18 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State GR Fruit and Vegetables - 2015 Deficiencies identified in 2 key controls FLAT RATE 5,00 % EUR – 515 238,30 – 344,73 – 514 893,57 Operational programmes incl withdrawals Fruit and Vegetables - 2016 Deficiencies identified in 2 key controls FLAT RATE 5,00 % EUR – 525 168,09 0,00 – 525 168,09 Operational programmes incl withdrawals Fruit and Vegetables - 2017 Deficiencies identified in 2 key controls FLAT RATE 5,00 % EUR – 501 093,03 0,00 – 501 093,03 Operational programmes incl withdrawals Apiculture 2015 deficiencies in the on-the-spot checks FLAT RATE 5,00 % EUR – 2 543,94 0,00 – 2 543,94 and no penalties were applied. Apiculture 2016 deficiencies in the on-the-spot checks FLAT RATE 5,00 % EUR – 2 887,86 0,00 – 2 887,86 and no penalties were applied. Apiculture 2017 deficiencies in the on-the-spot checks FLAT RATE 5,00 % EUR – 3 614,40 0,00 – 3 614,40 and no penalties were applied. Fruit and Vegetables - 2018 FY 2018 until February - weakness in FLAT RATE 5,00 % EUR – 16 468,70 0,00 – 16 468,70 Operational 2 key controls programmes incl withdrawals Other Direct 2015 weakness on the spot checks and no FLAT RATE 5,00 % EUR – 56 942,35 0,00 – 56 942,35 Aid - POSEI (2014+) penalties applied in the SAI Other Direct 2016 weakness on the spot checks and no FLAT RATE 5,00 % EUR – 57 827,79 0,00 – 57 827,79 Aid - POSEI (2014+) penalties applied in the SAI Other Direct 2017 weakness on the spot checks and no FLAT RATE 5,00 % EUR – 56 383,70 0,00 – 56 383,70 Aid - POSEI (2014+) penalties applied in the SAI Total GR: EUR – 1 738 168,16 – 344,73 – 1 737 823,43 15.2.2019 EN Official Journal of the European Union L 44/19Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State IE Irregularities 2015 Deficiencies in debt management ONE OFF EUR – 324 716,97 0,00 – 324 716,97 Irregularities 2015 Deficiencies in key controls FLAT RATE 5,00 % EUR – 309 730,38 – 2 610,77 – 307 119,61 Total IE: EUR – 634 447,35 – 2 610,77 – 631 836,58 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State IT Certification 2016 pre-2008 debts ONE OFF EUR – 7 544 556,82 0,00 – 7 544 556,82 Clearance of 2007 reissue of payments to the beneficiaries ONE OFF 0,00 % EUR – 31 246,05 0,00 – 31 246,05 accounts - Conformity in 2008 after being declared to the Clearance Fund in 2007 Total IT: EUR – 7 575 802,87 0,00 – 7 575 802,87 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State RO Decoupled Direct Aids 2010 LPIS - Cross-checks and OTSC weak­ ESTIMATED BY EUR – 23 154 676,68 – 46 309,35 – 23 108 367,33 ness CY 2009 - SAPS AMOUNT Decoupled Direct Aids 2011 LPIS - Cross-chekcs and OTSC weak­ ESTIMATED BY EUR – 20 574 656,79 0,00 – 20 574 656,79 ness CY 2010 - SAPS AMOUNT Total RO: EUR – 43 729 333,47 – 46 309,35 – 43 683 024,12 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State SE Decoupled Direct Aids 2016 Accuracy of scales of LPIS & ESPG ONE OFF EUR – 4 038,74 0,00 – 4 038,74 L 44/20 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Decoupled Direct Aids 2017 Accuracy of scales of LPIS & ESPG ONE OFF EUR – 4 124,26 0,00 – 4 124,26 Decoupled Direct Aids 2016 Distinction LLF with grass and TG FLAT RATE 5,00 % EUR – 7 116 696,66 – 157 127,27 – 6 959 569,39 Decoupled Direct Aids 2017 Distinction LLF with grass and TG FLAT RATE 5,00 % EUR – 7 517 150,74 – 390 044,95 – 7 127 105,79 Decoupled Direct Aids 2016 OTSC to sufficient number & quality FLAT RATE 2,00 % EUR – 562 860,06 – 2 557,41 – 560 302,65 Decoupled Direct Aids 2017 OTSC to sufficient number & quality FLAT RATE 2,00 % EUR – 903,80 – 3,90 – 899,90 Decoupled Direct Aids 2017 OTSC to sufficient number & quality FLAT RATE 5,00 % EUR – 1 427 157,53 – 2 462,89 – 1 424 694,64 Decoupled Direct Aids 2016 Pro-rata not appropriately applied ONE OFF EUR – 48 691,52 0,00 – 48 691,52 Decoupled Direct Aids 2017 Pro-rata not appropriately applied ONE OFF EUR – 45 214,48 0,00 – 45 214,48 Total SE: EUR – 16 726 837,79 – 552 196,42 – 16 174 641,37 Currency Amount Deductions Financial Impact EUR – 84 064 395,24 – 1 377 134,72 – 82 687 260,52 15.2.2019 EN Official Journal of the European Union L 44/21Budget Item: 6711 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State AT Rural Development 2016 Absence of audit trail regarding the FLAT RATE 2,00 % EUR – 21 082,63 0,00 – 21 082,63 EAFRD Knowledge evaluation of reasonableness of costs - and innovation M16 - FY2016 Rural Development 2017 Absence of audit trail regarding the FLAT RATE 2,00 % EUR – 15 936,07 0,00 – 15 936,07 EAFRD Knowledge evaluation of reasonableness of costs - and innovation M16 - FY2017 Rural Development 2016 Absence of audit trail regarding the FLAT RATE 2,00 % EUR – 14 491,20 0,00 – 14 491,20 EAFRD Knowledge evaluation of reasonableness of costs - and innovation M1 - FY2016 Rural Development 2017 Absence of audit trail regarding the FLAT RATE 2,00 % EUR – 16 281,84 0,00 – 16 281,84 EAFRD Knowledge evaluation of reasonableness of costs - and innovation M1 - FY2017 Rural Development 2016 Absence of audit trail regarding the FLAT RATE 2,00 % EUR – 9 485,57 0,00 – 9 485,57 EAFRD Knowledge evaluation of reasonableness of costs - and innovation M3 - FY2016 Rural Development 2017 Absence of audit trail regarding the FLAT RATE 2,00 % EUR – 10 215,31 0,00 – 10 215,31 EAFRD Knowledge evaluation of reasonableness of costs - and innovation M3 - FY2017 Total AT: EUR – 87 492,62 0,00 – 87 492,62 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State BE Rural Development 2015 Absence et déficiences de contrôles clés FLAT RATE 7,00 % EUR – 65 667,11 0,00 – 65 667,11 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2015 Absence et déficiences de contrôles clés FLAT RATE 10,00 % EUR – 663 989,13 0,00 – 663 989,13 EAFRD investment - Absence d'un contrôle auxiliaire private beneficiaries L 44/22 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Rural Development 2015 Absence et déficiences de contrôles clés FLAT RATE 10,00 % EUR – 224 305,01 – 21 670,95 – 202 634,06 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2016 Absence et déficiences de contrôles clés FLAT RATE 7,00 % EUR – 128 715,39 0,00 – 128 715,39 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2016 Absence et déficiences de contrôles clés FLAT RATE 10,00 % EUR – 871 916,33 0,00 – 871 916,33 EAFRD investment - Absence d'un contrôle auxiliaire private beneficiaries Rural Development 2016 Absence et déficiences de contrôles clés FLAT RATE 10,00 % EUR – 132 163,98 0,00 – 132 163,98 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2016 Absence et déficiences de contrôles clés ONE OFF EUR – 34 362,79 0,00 – 34 362,79 EAFRD investment - Absence d'un contrôle auxiliaire private beneficiaries Rural Development 2016 Absence et déficiences de contrôles clés ONE OFF EUR – 621 040,86 – 621 040,86 0,00 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2017 Absence et déficiences de contrôles clés FLAT RATE 7,00 % EUR – 3 391,35 0,00 – 3 391,35 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support 15.2.2019 EN Official Journal of the European Union L 44/23Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Rural Development 2017 Absence et déficiences de contrôles clés FLAT RATE 10,00 % EUR – 164 804,35 0,00 – 164 804,35 EAFRD investment - Absence d'un contrôle auxiliaire private beneficiaries Rural Development 2017 Absence et déficiences de contrôles clés FLAT RATE 10,00 % EUR – 6 070,22 0,00 – 6 070,22 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2017 Absence et déficiences de contrôles clés ONE OFF EUR – 34 690,79 0,00 – 34 690,79 EAFRD Measures with Absence d'un contrôle auxiliaire flat-rate support Rural Development 2016 Déficiences de contrôles clés. ONE OFF EUR – 23 742,86 0,00 – 23 742,86 EAFRD forestry measures Total BE: EUR – 2 974 860,17 – 642 711,81 – 2 332 148,36 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State DE Certification 2017 CEB/2018/020/DE - errors in EAGF ONE OFF EUR – 97 411,09 0,00 – 97 411,09 and EAFRD Total DE: EUR – 97 411,09 0,00 – 97 411,09 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State FR Certification 2016 Erreur connue détectée lors du test de ONE OFF EUR – 6 125,06 0,00 – 6 125,06 validation HSIGC_20 L 44/24 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Certification 2016 Erreur connue détectée lors du test de ONE OFF EUR – 6 907,00 0,00 – 6 907,00 validation HSIGC_22 Certification 2016 Erreur connue détectée lors du test de ONE OFF EUR – 16 949,09 0,00 – 16 949,09 validation HSIGC_32 Certification 2016 Erreur connue détectée lors du test de ONE OFF EUR – 399,02 0,00 – 399,02 validation HSIGC_5 Certification 2015 Erreur connue Test de conformité n°8 ONE OFF EUR – 44,55 0,00 – 44,55 NSIGC Certification 2016 Erreur extrapolée sur le 5ème trimestre ESTIMATED BY EUR – 996 414,95 0,00 – 996 414,95 du programme de développement rural AMOUNT 2007-2013 Certification 2015 Erreur la plus probable détectée sur les ESTIMATED BY EUR – 430 526,99 0,00 – 430 526,99 4 premiers trimestres du dernier exer­ AMOUNT cice de développement rural Total FR: EUR – 1 457 366,66 0,00 – 1 457 366,66 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State IT Clearance of 2007 debt not recorded in Annex III ONE OFF 0,00 % EUR – 330 771,05 0,00 – 330 771,05 accounts - Conformity Clearance Certification 2017 MLE for EAFRD population ESTIMATED BY EUR – 766 522,66 – 70 653,34 – 695 869,32 AMOUNT Total IT: EUR – 1 097 293,71 – 70 653,34 – 1 026 640,37 15.2.2019 EN Official Journal of the European Union L 44/25Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State NL Certification 2015 Clearance of accounts EAFRD closure ESTIMATED BY EUR – 323 284,12 – 30 599,35 – 292 684,77 exercise 2007-2013. Financial correc­ AMOUNT tion is composed of the sum of the MLE for Q1-Q4 (EUR 323 284,12). Certification 2016 Clearance of accounts EAFRD closure ESTIMATED BY EUR – 666 290,00 0,00 – 666 290,00 exercise 2007-2013. Financial correc­ AMOUNT tion is composed of the sum of the MLE Q5 (EUR 666 290,00). Total NL: EUR – 989 574,12 – 30 599,35 – 958 974,77 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State PT Rural Development 2010 Deficient checks on the SME status ONE OFF EUR – 986 742,27 – 19 734,85 – 967 007,42 EAFRD Axis 1+3 - Investment orientated measures (2007-2013) Rural Development 2011 Deficient checks on the SME status ONE OFF EUR – 661 912,45 – 13 238,25 – 648 674,20 EAFRD Axis 1+3 - Investment orientated measures (2007-2013) Rural Development 2012 Deficient checks on the SME status ONE OFF EUR – 383 755,22 – 7 675,10 – 376 080,12 EAFRD Axis 1+3 - Investment orientated measures (2007-2013) Rural Development 2013 Deficient checks on the SME status ONE OFF EUR – 2 742 818,76 – 54 856,38 – 2 687 962,38 EAFRD Axis 1+3 - Investment orientated measures (2007-2013) L 44/26 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Rural Development 2014 Deficient checks on the SME status ONE OFF EUR – 1 090 453,19 – 11 739,23 – 1 078 713,96 EAFRD Investment - private beneficiaries Rural Development 2015 Deficient checks on the SME status ONE OFF EUR – 1 631 769,52 – 6 527,08 – 1 625 242,44 EAFRD investment - private beneficiaries Rural Development 2016 Deficient checks on the SME status ONE OFF EUR – 593 335,15 0,00 – 593 335,15 EAFRD investment - private beneficiaries Total PT: EUR – 8 090 786,56 – 113 770,89 – 7 977 015,67 Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State RO Rural Development 2015 Creation of artificial conditions for re­ ONE OFF EUR – 112 285,43 0,00 – 112 285,43 EAFRD Measures with ceiving a financial support higher than flat-rate support the regulatory ceiling Rural Development 2016 Creation of artificial conditions for re­ ONE OFF EUR – 299 457,90 0,00 – 299 457,90 EAFRD Measures with ceiving a financial support higher than flat-rate support the regulatory ceiling Rural Development 2010 Deduction of RD2/2011/010/RO - ESTIMATED BY EUR 2 731 178,66 5 486,46 2 725 692,20 EAFRD Axis 2 CY 2010 AMOUNT (2007-2013, area related measures) Rural Development 2014 Insufficient checks on the eligibility cri­ FLAT RATE 5,00 % EUR – 35 915,55 – 18 124,26 – 17 791,29 EAFRD Investment - teria for the projects (Agro-tourism or public beneficiaries Accommodation for tourists in rural areas) Rural Development 2015 Insufficient checks on the eligibility cri­ FLAT RATE 5,00 % EUR – 847 408,37 0,00 – 847 408,37 EAFRD Measures with teria for the projects (Agro-tourism or flat-rate support Accommodation for tourists in rural areas) 15.2.2019 EN Official Journal of the European Union L 44/27Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Rural Development 2016 Insufficient checks on the eligibility cri­ FLAT RATE 5,00 % EUR – 718 001,23 0,00 – 718 001,23 EAFRD Measures with teria for the projects (Agro-tourism or flat-rate support Accommodation for tourists in rural areas) Certification 2015 Known error (advances) + reconcilia­ ONE OFF EUR – 343 392,94 – 10 564,52 – 332 828,42 tion error Certification 2015 Known error (non-IACS) ONE OFF EUR – 7 479,27 – 7 479,27 0,00 Rural Development 2010 LPIS - Cross-checks and OTSC weak­ ESTIMATED BY EUR – 3 702 778,52 0,00 – 3 702 778,52 EAFRD Complement ness CY 2009 - CNDP AMOUNT to direct payment (2007-2013) Rural Development 2009 LPIS - Cross-checks and OTSC weak­ ESTIMATED BY EUR – 11 640 416,05 – 0,17 – 11 640 415,88 EAFRD Axis 2 ness CY 2009 - RD AMOUNT (2007-2013, area related measures) Rural Development 2010 LPIS - Cross-checks and OTSC weak­ ESTIMATED BY EUR – 12 554 382,97 – 25 219,59 – 12 529 163,38 EAFRD Axis 2 ness CY 2009 - RD AMOUNT (2007-2013, area related measures) Rural Development 2010 LPIS - Cross-checks and OTSC weak­ ESTIMATED BY EUR – 26 997 516,00 – 54 233,35 – 26 943 282,65 EAFRD Axis 2 ness CY 2010 - RD AMOUNT (2007-2013, area related measures) Certification 2015 Most likely error (IACS+non-IACS) ESTIMATED BY EUR – 34 194 181,65 – 7 411 850,18 – 26 782 331,47 FY2015 and FY2016 AMOUNT Certification 2016 Most likely error (IACS+non-IACS) ESTIMATED BY EUR – 9 947 831,00 – 2 719 256,79 – 7 228 574,21 FY2015 and FY2016 AMOUNT Total RO: EUR – 98 669 868,22 – 10 241 241,67 – 88 428 626,55 L 44/28 EN Official Journal of the European Union 15.2.2019Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State SE Rural Development 2017 Correction on transitionary period FLAT RATE 5,00 % EUR – 136,58 0,00 – 136,58 EAFRD investment - FY2016-2017-2018: M01 (prev. 111), private beneficiaries M04 (prev. 121) and M07 (prev. 321) Rural Development 2017 Correction on transitionary period FLAT RATE 5,00 % EUR – 254,37 0,00 – 254,37 EAFRD investment - FY2016-2017-2018: M01 (prev. 111), public beneficiaries M04 (prev. 121) and M07 (prev. 321) Rural Development 2017 Correction on transitionary period FLAT RATE 5,00 % EUR – 314,51 0,00 – 314,51 EAFRD Knowledge FY2016-2017-2018: M01 (prev. 111), and innovation M04 (prev. 121) and M07 (prev. 321) Rural Development 2018 Correction on transitionary period FLAT RATE 5,00 % EUR – 497,91 0,00 – 497,91 EAFRD investment - FY2016-2017-2018: M01 (prev. 111), public beneficiaries M04 (prev. 121) and M07 (prev. 321) Rural Development 2018 Correction on transitionary period FLAT RATE 5,00 % EUR – 36,65 0,00 – 36,65 EAFRD Knowledge FY2016-2017-2018: M01 (prev. 111), and innovation M04 (prev. 121) and M07 (prev. 321) Rural Development 2015 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 85 400,97 – 85 400,97 0,00 EAFRD Measures with praisal of projects; Evaluation of rea­ flat-rate support sonableness of costs - M312 Rural Development 2016 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 20 805,06 0,00 – 20 805,06 EAFRD Measures with praisal of projects; Evaluation of rea­ flat-rate support sonableness of costs - M312 Rural Development 2015 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 1 009 988,55 – 1 009 988,55 0,00 EAFRD investment - praisal of projects; Evaluation of rea­ public beneficiaries sonableness of costs - M321 15.2.2019 EN Official Journal of the European Union L 44/29Member Measure FY Reason Type Correction % Currency Amount Deductions Financial Impact State Rural Development 2016 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 10 921,32 0,00 – 10 921,32 EAFRD investment - praisal of projects; Evaluation of rea­ public beneficiaries sonableness of costs - M321 Rural Development 2015 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 780 486,39 – 1 632,52 – 778 853,87 EAFRD Knowledge praisal of projects (M111, M331); and innovation Adequate verification of all payment claims (M331) Rural Development 2016 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 226 592,89 0,00 – 226 592,89 EAFRD Knowledge praisal of projects (M111, M331); and innovation Adequate verification of all payment claims(M331) Rural Development 2015 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 115 476,12 – 115 476,12 0,00 EAFRD investment - praisal of projects - M121 private beneficiaries Rural Development 2016 Deficiencies in KC: Selection and ap­ FLAT RATE 5,00 % EUR – 349,35 0,00 – 349,35 EAFRD investment - praisal of projects - M121 private beneficiaries Total SE: EUR – 2 251 260,67 – 1 212 498,16 – 1 038 762,51 Currency Amount Deductions Financial Impact EUR – 115 715 913,82 – 12 311 475,22 – 103 404 438,60 L 44/30 EN Official Journal of the European Union 15.2.2019

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