# Commission Decision of 18 December 2012 on the adoption of the Rules to ensure consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under the Seventh Framework Programme of the European Community for research, technological development and demonstration activities and under the Seventh Framework Programme of the European Atomic Energy Community for nuclear research and training activities (Text with EEA relevance) (2012/838/EU, Euratom) (revoked), Division 4.1: Assessment of the results of the concise analysis

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Status: repealed

The concise financial assessment results in an overall score for the financial capacity of an applicant in the range of ‘good’, ‘acceptable’ or ‘weak’ on the basis of the above mentioned ratios.
As a general rule, any legal entity subject to a verification of its financial capacity which obtains under a concise analysis a minimum of 3 points as a result of its financial viability check will be considered to have a ‘positive’ financial capacity, unless it is subject to one (or several) of the situations mentioned hereafter.
Despite of the abovementioned results, the financial capacity of a legal entity will in any case be considered as ‘weak’, and therefore be subject to a more in-depth analysis, if:
an audit report (cf. section 3.4) of the accounts has been issued with serious qualification (not only on co-financing capacity);
the result(s) obtained through Equity Flag (section 3.5.2) and/or Co-financing capacity check and/or Financial Exposure Flag (section 3.6) (if relevant) is(are) ‘weak’;
the legal entity has been subject to substantial financial findings relating to its financial capacity following a financial audit carried out by the Commission (including OLAF, the Court of Auditors or their duly authorised representatives within the last 2 years (cf. section 3.3).
If the legal entity obtained a ‘positive’ result under a concise financial analysis but there are findings of serious administrative errors or fraud involving the entity; or the entity is subject to pending legal procedures or judicial proceedings for serious administrative errors or fraud; or the entity is subject to an attachment order or significant recovery order for an outstanding amount issued by the Commission on which the payment is significantly overdue, it will be considered as having a ‘weak’ financial capacity but will not be subject to a more in-depth financial analysis. For this kind of entity, the authorising officer in charge will have to consider protection measures as defined under section 4.2.2.

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Source: https://www.legislation.gov.uk/eudn/2012/838/annex/division/2/division/4/division/4.1 (the official version)
Page: https://openlegislation.uk/eu-decision-2012-838/annex/division-2/division-4/division-4.1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.