# Commission Decision of 20 January 2006 laying down detailed rules for the implementation of Council Decision 2004/904/EC as regards procedures for making financial corrections in the context of actions co-financed by the European Refugee Fund (notified under document number C(2006) 51/2) (Only the Czech, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Swedish, Latvian, Lithuanian, Polish, Portuguese, Slovakian, Slovenian and Spanish texts are authentic) (2006/400/EC), Division 2.2.1: Key elements for ensuring eligibility for co-financing

Extent: E+W+S+N.I.

1.. Provision and application of procedures for grant applications, appraisal of applications, selection of projects for funding and selection of contractors/suppliers, appropriate publication of calls for grant applications according to the procedures for the programme concerned:
(a) compliance, where applicable, with rules on publicity, equality of opportunity and public procurement, and with Treaty rules and principles of equality of treatment and non-discrimination where EC public procurement directives are not applicable;
(b) appraisal of grant applications in accordance with programme criteria and procedures, including compliance with rules on environmental impact assessment, equality of opportunity legislation and policies;
(c) selection of projects for funding:
projects selected correspond to objectives and published criteria of programme,
reasons for acceptance or rejection of applications are clearly set out,
observance of State aid rules,
observance of eligibility rules,
inclusion of terms and conditions of funding in approval decision.
2.. Adequate verification of delivery of co-financed products and services and of eligibility of expenditure charged to programme by the responsible authority designated under Article 13 of Decision 2004/904/EC and the intermediary organisations between the grant recipient and the responsible authority:
(a) verification of the reality of ‘deliverables’ (services, works, supplies, etc.) against plans, invoices, acceptance documents, experts' reports, etc., and, where appropriate, on the spot;
(b) verification of observance of conditions of grant approval;
(c) verification of the eligibility of expenditure for which a claim is made;
(d) adequate follow-up of all outstanding questions before acceptance of claim;
(e) maintenance of an adequate and reliable accounting system;
(f) maintenance of the audit trail at all levels from grant recipient up through the system;
(g) taking reasonable measures to obtain assurance that the declarations of expenditure the responsible authority certifies to the Commission are correct insofar as:
expenditure was effected within the eligible period in projects selected for co-financing in accordance with normal procedures and all applicable terms and conditions,
the co-financed projects have actually been carried out.
3.. Sufficient quantity and quality of sample checks on projects and adequate follow-up:
(a) carrying out sample checks on at least 10 % of total eligible expenditure in accordance with Article 4 of this Decision, supported by a report on the work done by the auditor;
(b) the sample is representative and the risk analysis adequate;
(c) adequate separation of functions vis-à-vis line management to ensure independence;
(d) follow-up to checks, ensuring:
appropriate assessment of results and financial corrections where appropriate,
action at a general level to correct systemic irregularities.

---
Source: https://www.legislation.gov.uk/eudn/2006/400/annex/division/2/division/2.2/division/2.2.1 (the official version)
Page: https://openlegislation.uk/eu-decision-2006-400/annex/division-2/division-2.2/division-2.2.1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.