Council Regulation (EC) No 861/2006 (repealed)Show full title

Article 28 Audits and financial corrections

1. Without prejudice to audits carried out by the Member States in accordance with national laws, regulations and administrative provisions, officials of the Commission and of the Court of Auditors, or their representatives, may carry out on-the-spot audits on actions financed by this Regulation at any time with a minimum of ten working days’ notice, except in urgent cases, for a period up to three years after the final payment made by the Commission.

Officials of the Commission and of the Court of Auditors, or their representatives, duly empowered to carry out on-the-spot audits, shall have access to the books and all other documents, including documents and metadata drawn-up or received and recorded on an electronic format relating to expenditure financed by this Regulation.

The aforementioned powers of audit shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation. Officials of the Commission and of the Court of Auditors, or their representatives, shall not take part, inter alia, in home visits or the formal questioning of persons within the framework of the national legislation of the Member State concerned. However, they shall have access to information thus obtained.

If any Community financial support granted under this Regulation is subsequently allocated to a third party as a final beneficiary, the initial beneficiary, being the recipient of the Community financial support, shall provide the Commission with all relevant information regarding the identity of that final beneficiary.

For this purpose, all related documents shall be kept available by the beneficiaries for a period up to three years after the final payment.

The Commission may also require the Member State concerned to carry out on-the-spot audits on actions financed under Articles 8 and 9. Officials of the Commission and of the Court Auditors, or their representatives, may take part in such audits.

2. If the Commission considers that Community funds have not been used in accordance with the conditions laid down in this Regulation or in any other applicable Community act, it shall notify the beneficiaries, including any final beneficiaries within the meaning of paragraph 1, who shall have one month from the date of such notification to send their observations to the Commission.

If the beneficiaries do not reply within that period or if their observations do not lead the Commission to modify its opinion, the Commission shall reduce or cancel the financial contribution granted or suspend payments.

Any amount unduly paid shall be repaid to the Commission. Interest shall be added to any sums not repaid in due time under the conditions laid down in Regulation (EC, Euratom) No 1605/2002.

3. The Commission shall ensure that suitable arrangements exist for the control and audit of the actions financed pursuant to Articles 53(7) and 165 of Regulation (EC, Euratom) No 1605/2002.

4. Under the principle of national sovereignty, only by agreement with the third country may the Commission carry out, or have carried out, financial audits of funds paid to third countries for measures financed under Article 13(a).