TITLE VCONTROL SYSTEMS AND PENALTIES

CHAPTER IGeneral rules

Article 59General principles of checks

1

Except where otherwise provided, the system set up by the F3relevant authority in accordance with Article 58(2) shall include systematic administrative checking of all aid applications and payment claims. That system shall be supplemented by on-the-spot checks.

2

As regards the on-the-spot checks, the authority responsible shall draw its check sample from the entire population of applicants comprising, where appropriate, a random part in order to obtain a representative error rate and a risk-based part, which shall target the areas where the risk of errors is the highest.

3

The authority responsible shall draw up a report on each on-the-spot check.

F44

Where appropriate, all on-the-spot checks provided for in F8F6retained direct EU legislation regarding agricultural aid and rural development supportF8sectoral agricultural legislation shall be carried out at the same time.

F44.

Where appropriate, all on-the-spot checks provided for in sectoral agricultural legislation shall be carried out at the same time.

5

F2The relevant authority shall ensure a minimum level of on-the-spot checks needed for an effective management of the risksF7, and shall increase that minimum level where necessary. F2The relevant authority may reduce that minimum level where the management and control systems function properly and the error rates remain at an acceptable level.

6

In cases F5... provided for F1... on the basis of point (h) of Article 62(2), aid applications and payment claims or any other communications, claims or requests may be corrected and adjusted after their submission in cases of obvious errors recognised by the competent authority.

7

An aid application or payment claim shall be rejected if the beneficiary or his representative prevents an on-the-spot check from being carried out, except in cases of force majeure or in exceptional circumstances.