CHAPTER IITHE RESPONSIBLE AUTHORITY

SECTION IIIObligations of the Responsible Authority as regards public intervention

Article 8Conditions under which the Responsible Authority acts as executing body

1.

The Responsible Authority may decide to implement projects directly, either alone or in association with any other national authority, because of administrative powers, technical expertise, or because the characteristics of the project leaves no other choice for the implementation, such as a de jure monopoly or security requirements. In such cases, the Responsible Authority shall be the beneficiary of the grant.

2.

The Responsible Authority's reasons for acting as executing body and selecting any associated national authorities as described in paragraph 1 shall be reported to the Commission in the annual implementation report referred to in Article 54 of Regulation (EU) No 514/2014.

3.

When implementing projects as an executing body, the Responsible Authority shall observe the principle of value for money and prevent conflicts of interest.

4.

The administrative decision to co-finance a project under the national programme shall include any information necessary to monitor the implementation of co-financed products and services and to check the expenditure incurred.

5.

If the Responsible Authority is likely to act as executing body on a regular basis:

(a)

the Responsible Authority and the Audit Authority shall not be part of the same body, unless the Audit Authority reports to an outside body and its audit independence is guaranteed; and

(b)

the tasks of the Responsible Authority as set out in Article 4 shall not be affected.