Common use of CONFORMITY CLEARANCE Clause in Contracts

CONFORMITY CLEARANCE. (1) If the Commission finds that expenditure under the IPARD II programme has been incurred in a way that has infringed applicable rules, it shall decide what amounts are to be excluded from Union financing. (2) The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature and the gravity of the non-conformity and of the financial damage caused to the Union. (3) When, as a result of any inquiry, the Commission considers that expenditure was not effected in compliance with the applicable rules, it shall communicate its findings to the NAO, and indicate the corrective measures needed to ensure future compliance with those rules. The communication shall make reference to this Article. The NAO shall reply within two months of receipt of the communication, with copy to the Audit Authority, and the Commission may modify its position in consequence. In justified cases, the Commission may agree to extend the period for reply. After expiry of the period for reply, the Commission may request additional information and, where necessary, convene a bilateral meeting. (4) Within two months from the date of the reception of the request for additional information or the minutes of the bilateral meeting referred to in the third subparagraph of paragraph (3), the NAO shall communicate any information requested during that meeting or any other information which it considers useful for the ongoing examination. In justified cases, the Commission may, upon reasoned request of the NAO, authorise an extension of the period referred to in the first subparagraph. The request shall be addressed to the Commission, with copy to the Audit Authority, before the expiry of that period. After the expiry of the period referred to in the first subparagraph, the Commission shall formally communicate its conclusions to the NAO, with copy to the Audit Authority, on the basis of the information received in the framework of the conformity clearance procedure. The communication shall evaluate the expenditure which the Commission envisages to exclude from Union financing. Where the Commission proposes a financial correction, the NAO shall be given the opportunity to provide its assessment of the actual financial impact of the irregularity. The communication of the assessment to the Commission shall take place within two months from the date of reception of the Commission's proposal for a financial correction. In justified cases the Commission may agree to extend the period for reply. (5) The NAO shall inform the Commission, copy to the Audit Authority, of the corrective measures it has undertaken to ensure compliance with the applicable rules and the effective date of their implementation. (6) The Commission may, at any stage, terminate the procedure, without financial consequences for Serbia, if it expects that the possible financial effects of non- compliance identified as a result of an inquiry referred to in paragraph (1) would not exceed EUR 10 000 and 2% of the relevant expenditure or the amounts to be recovered. (7) The deductions from the Union financing shall be made by the Commission from the following interim payment or the final payment. However, at Serbia's request and where warranted by the materiality of the deductions the Commission may set a different date for the deductions. (8) In accordance with Article 45(1) of the FWA the deductions made by the Commission shall not be reallocated to the IPARD II programme. (9) Article 84 of the FWA shall not apply to the conformity clearance.

CONFORMITY CLEARANCE. (1) If the Commission finds that expenditure under the IPARD II programme has been incurred in a way that has infringed applicable rules, it shall decide what amounts are to be excluded from Union financing. (2) The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature and the gravity of the non-conformity and of the financial damage caused to the Union. (3) When, as a result of any inquiry, the Commission considers that expenditure was not effected in compliance with the applicable rules, it shall communicate its findings to the NAO, and indicate the corrective measures needed to ensure future compliance with those rules. The communication shall make reference to this Article. The NAO shall reply within two months of receipt of the communication, with copy to the Audit Authority, and the Commission may modify its position in consequence. In justified cases, the Commission may agree to extend the period for reply. After expiry of the period for reply, the Commission may request additional information and, where necessary, convene a bilateral meeting. (4) Within two months from the date of the reception of the request for additional information or the minutes of the bilateral meeting referred to in the third subparagraph of paragraph (3), the NAO shall communicate any information requested during that meeting or any other information which it considers useful for the ongoing examination. In justified cases, the Commission may, upon reasoned request of the NAO, authorise an extension of the period referred to in the first subparagraph. The request shall be addressed to the Commission, with copy to the Audit Authority, before the expiry of that period. After the expiry of the period referred to in the first subparagraph, the Commission shall formally communicate its conclusions to the NAO, with copy to the Audit Authority, on the basis of the information received in the framework of the conformity clearance procedure. The communication shall evaluate the expenditure which the Commission envisages to exclude from Union financing. Where the Commission proposes a financial correction, the NAO shall be given the opportunity to provide its assessment of the actual financial impact of the irregularity. The communication of the assessment to the Commission shall take place within two months from the date of reception of the Commission's proposal for a financial correction. In justified cases the Commission may agree to extend the period for reply. (5) The NAO shall inform the Commission, copy to the Audit Authority, of the corrective measures it has undertaken to ensure compliance with the applicable rules and the effective date of their implementation. (6) The Commission may, at any stage, terminate the procedure, without financial consequences for Serbia[IPA II beneficiary], if it expects that the possible financial effects of non- non-compliance identified as a result of an inquiry referred to in paragraph (1) would not exceed EUR 10 000 and 2% of the relevant expenditure or the amounts to be recovered. (7) The deductions from the Union financing shall be made by the Commission from the following interim payment or the final payment. However, at Serbia[IPA II beneficiary]'s request and where warranted by the materiality of the deductions the Commission may set a different date for the deductions. (8) In accordance with Article 45(1) of the FWA the deductions made by the Commission shall not be reallocated to the IPARD II programme. (9) Article 84 of the FWA shall not apply to the conformity clearance.

CONFORMITY CLEARANCE. (1) If the Commission finds that expenditure under the IPARD II programme has been incurred in a way that has infringed applicable rules, it shall decide what amounts are to be excluded from Union financing. (2) The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature and the gravity of the non-conformity and of the financial damage caused to the Union. (3) When, as a result of any inquiry, the Commission considers that expenditure was not effected in compliance with the applicable rules, it shall communicate its findings to the NAO, and indicate the corrective measures needed to ensure future compliance with those rules. The communication shall make reference to this Article. The NAO shall reply within two months of receipt of the communication, with copy to the Audit Authority, and the Commission may modify its position in consequence. In justified cases, the Commission may agree to extend the period for reply. After expiry of the period for reply, the Commission may request additional information and, where necessary, convene a bilateral meeting. (4) Within two months from the date of the reception of the request for additional information or the minutes of the bilateral meeting referred to in the third subparagraph of paragraph (3), the NAO shall communicate any information requested during that meeting or any other information which it considers useful for the ongoing examination. In justified cases, the Commission may, upon reasoned request of the NAO, authorise an extension of the period referred to in the first subparagraph. The request shall be addressed to the Commission, with copy to the Audit Authority, before the expiry of that period. After the expiry of the period referred to in the first subparagraph, the Commission shall formally communicate its conclusions to the NAO, with copy to the Audit Authority, on the basis of the information received in the framework of the conformity clearance procedure. The communication shall evaluate the expenditure which the Commission envisages to exclude from Union financing. Where the Commission proposes a financial correction, the NAO shall be given the opportunity to provide its assessment of the actual financial impact of the irregularity. The communication of the assessment to the Commission shall take place within two months from the date of reception of the Commission's proposal for a financial correction. In justified cases the Commission may agree to extend the period for reply. (5) The NAO shall inform the Commission, copy to the Audit Authority, of the corrective measures it has undertaken to ensure compliance with the applicable rules and the effective date of their implementation. (6) The Commission may, at any stage, terminate the procedure, without financial consequences for Serbiathe former Yugoslav Republic of Macedonia, if it expects that the possible financial effects of non- non-compliance identified as a result of an inquiry referred to in paragraph (1) would not exceed EUR 10 000 and 2% of the relevant expenditure or the amounts to be recovered. (7) The deductions from the Union financing shall be made by the Commission from the following interim payment or the final payment. However, at Serbiathe former Yugoslav Republic of Macedonia's request and where warranted by the materiality of the deductions the Commission may set a different date for the deductions. (8) In accordance with Article 45(1) of the FWA the deductions made by the Commission shall not be reallocated to the IPARD II programme. (9) Article 84 of the FWA shall not apply to the conformity clearance.

CONFORMITY CLEARANCE. (1) If the Commission finds that expenditure under the IPARD II programme has been incurred in a way that has infringed applicable rules, it shall decide what amounts are to be excluded from Union financing. (2) The Commission shall assess the amounts to be excluded on the basis of the gravity of the non-conformity recorded. It shall take due account of the nature and the gravity of the non-conformity and of the financial damage caused to the Union. (3) When, as a result of any inquiry, the Commission considers that expenditure was not effected in compliance with the applicable rules, it shall communicate its findings to the NAO, and indicate the corrective measures needed to ensure future compliance with those rules. The communication shall make reference to this Article. The NAO shall reply within two months of receipt of the communication, with copy to the Audit Authority, and the Commission may modify its position in consequence. In justified cases, the Commission may agree to extend the period for reply. After expiry of the period for reply, the Commission may request additional information and, where necessary, convene a bilateral meeting. (4) Within two months from the date of the reception of the request for additional information or the minutes of the bilateral meeting referred to in the third subparagraph of paragraph (3), the NAO shall communicate any information requested during that meeting or any other information which it considers useful for the ongoing examination. In justified cases, the Commission may, upon reasoned request of the NAO, authorise an extension of the period referred to in the first subparagraph. The request shall be addressed to the Commission, with copy to the Audit Authority, before the expiry of that period. After the expiry of the period referred to in the first subparagraph, the Commission shall formally communicate its conclusions to the NAO, with copy to the Audit Authority, on the basis of the information received in the framework of the conformity clearance procedure. The communication shall evaluate the expenditure which the Commission envisages to exclude from Union financing. Where the Commission proposes a financial correction, the NAO shall be given the opportunity to provide its assessment of the actual financial impact of the irregularity. The communication of the assessment to the Commission shall take place within two months from the date of reception of the Commission's proposal for a financial correction. In justified cases the Commission may agree to extend the period for reply. (5) The NAO shall inform the Commission, copy to the Audit Authority, of the corrective measures it has undertaken to ensure compliance with the applicable rules and the effective date of their implementation. (6) The Commission may, at any stage, terminate the procedure, without financial consequences for SerbiaAlbania, if it expects that the possible financial effects of non- compliance identified as a result of an inquiry referred to in paragraph (1) would not exceed EUR 10 000 and 2% of the relevant expenditure or the amounts to be recovered. (7) The deductions from the Union financing shall be made by the Commission from the following interim payment or the final payment. However, at SerbiaAlbania's request and where warranted by the materiality of the deductions the Commission may set a different date for the deductions. (8) In accordance with Article 45(1) of the FWA the deductions made by the Commission shall not be reallocated to the IPARD II programme. (9) Article 84 of the FWA shall not apply to the conformity clearance.