Scrutiny of expenditure under the European Agricultural Guarantee Fund (EAGF)

This Regulation organises the scrutiny of expenditure by Member States benefiting from the European Agricultural Guarantee Fund (EAGF). It defines the privileges of the departments of Member States and the procedure for the scrutiny of the commercial documents of undertakings. This Regulation also aims at facilitating the cooperation between Member States and the Commission during monitoring operations.

ACT

Council Regulation (EC) No 485/2008 of 26 May 2008 on scrutiny by Member States of transactions forming part of the system of financing by the European Agricultural Guarantee Fund (Codified version).

SUMMARY

The European Agricultural Guarantee Fund (EAGF) is the financial instrument of the Common Agricultural Policy which is intended to support agricultural markets. This Regulation therefore aims at ensuring the legitimacy of aid granted under the EAGF and monitoring the use thereof.

Scrutiny programmes

Each year, Member States shall establish a programme for scrutinies which have been planned, and send it to the Commission. These programmes are to be prepared on the basis of risk analysis. They should give details of the number of enterprises to be scrutinised, the breakdown by sector and the criteria adopted for drawing up the programme. When making a selection, Member States should take into account the amount of aid allocated to such and such a company under the EAGF.

Monitoring officials

Member States should set up a special department which shall be responsible for the application of this Regulation. This department shall be directly responsible for the performance or coordination of scrutinies carried out by officials. The Regulation states that this should be a specific department, totally independent of other departments responsible for granting EAGF aid. Furthermore, officials of the Commission may participate in these scrutinies. They shall have access to all documents prepared for scrutiny, but may under no circumstances themselves exercise the powers accorded to national officials.

Scrutiny of undertakings’ documents

The scrutiny of commercial documents constitutes one of the most effective ways of monitoring financial transactions relating to EAGF aid. These documents include for example all of the undertakings’ registers, supporting documents and correspondence files. Undertakings shall keep these documents for at least three years, starting from the end of the year in which they were drawn up.

Member States should ensure that the officials responsible for scrutiny have access to the commercial documents of undertakings, in compliance with national rules relating to the criminal procedure for the seizure of documents.

Mutual assistance

The Commission may coordinate joint actions involving mutual assistance between two or more Member States. This type of cooperation is necessary when an undertaking or a third party involved in transactions under scrutiny is established in a Member State:

• other than that in which payment of the amount in question has been made;
• other than that in which the documents required for scrutiny are to be found.

Context

This Regulation codifies and repeals Regulation (EEC) No 4045/89. References to the repealed Regulation shall be construed as references to this Regulation.

RELATED ACTS

Commission Regulation (EC) No 1276/2008 of 17 December 2008 on the monitoring by physical checks of exports of agricultural products receiving refunds or other amounts [Official Journal L 339 of 18.12.2008].

Commission Regulation (EC) No 4/2004 of 23 December 2003 laying down detailed rules for the application of Council Regulation (EEC) No 4045/89 on scrutiny by Member States of transactions forming part of the system of financing by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund [Official Journal L 2 of 6.1.2004].

Commission Regulation (EC) No 2311/2000 of 18 October 2000 establishing the list of measures to which Council Regulation (EEC) No 4045/89 does not apply and repealing Decision 96/284/EC [Official Journal L 265 of 19.10.2000].

Last updated: 02.12.2009