http://www.legislation.gov.uk/eur/2014/447/article/17Commission Implementing Regulation (EU) No 447/2014 of 2 May 2014 on the specific rules for implementing Regulation (EU) No 231/2014 of the European Parliament and of the Council establishing an Instrument for Pre-accession assistance (IPA II)Commission Implementing Regulation (EU) No 447/2014Commission Implementing Regulation (EU) No 447/2014 of 2 May 2014 on the specific rules for implementing Regulation (EU) No 231/2014 of the European Parliament and of the Council establishing an Instrument for Pre-accession assistance (IPA II)2020-12-11King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02014R0447-20200701texttext/xmlen2020-07-01 TITLE III <Strong>FINANCIAL MANAGEMENT</Strong> CHAPTER II <Strong> <Emphasis>Rules relating to indirect management by the IPA II beneficiary</Emphasis> </Strong> Financial corrections Article 17 1 In order to ensure that the IPA II funds have been used in accordance with the applicable rules, the Commission shall apply financial correction mechanisms. 2 A financial correction may arise from the following: a identification of a specific error, irregularity or fraud; b identification of a weakness or deficiency in the management and control systems of the IPA II beneficiary. 3 The Commission shall apply the financial corrections on the basis of identification of amounts unduly spent and on the basis of financial implications for the budget. Where such amounts cannot be identified precisely in order to apply individual corrections, the Commission may apply flat-rate corrections or corrections based on an extrapolation of the findings. 4 Financial corrections shall be made as appropriate by compensation. 5 When deciding the amount of a correction, the Commission shall take into account the nature and gravity of the specific error or irregularity and/or the extent and financial implications of the weaknesses or the deficiencies found in the management and control system in the programme concerned.