Common use of Recovery of Funds in Case of Irregularity or Fraud Clause in Contracts

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 or fraud26 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 or fraud26 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to:: 22 Commission Regulation (EC) 1681/94 of 11. July 1994; 12.7.94; p. 43 23 Fraud shall mean any intentional act or omission relating to: the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities; non disclosure of information in violation of a specific obligation with the same effect; the misapplication of such funds for purposes other than those for which they are originally granted. 24 Irregularity shall mean any infringement of a provision of national or Community law, this Financing Memorandum or ensuing contracts, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, by an unjustified item of expenditure. The term “Community law” in this context shall be defined as the entirety of Community rules applicable between the Parties of the Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the National Fund etc.) 25 see definition above 26 see definition above (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 1. The NAO shall recover the Community contribution paid to the final beneficiaries from those who committed the irregularity, fraud or fraud26 discovered at any time during the implementation corruption or benefited from it, in accordance with Article 29(2) of the programme Framework Agreement. 2. The NAO shall make financial adjustments where irregularities or as negligence are detected in operations of the result of an audit will lead IPARD Programme by totally or partially cancelling the Community contribution to the recovery operations concerned. The NAO shall take into consideration the nature and gravity of the irregularities detected and the financial loss to the Community contribution. 3. The Community contribution recovered pursuant to paragraph 1 and cancelled pursuant to paragraph 2 may be reused in accordance with paragraph 4(c). 4. The financial adjustments and reuse of funds shall be undertaken by the Commission. If, after completing NAO and shall be subject to the necessary verifications, the Commission concludes thatfollowing conditions: (a) where irregularities are detected, the Beneficiary Country has not complied with the obligations NAO shall extend its inquiries to prevent, detect, and correct irregularities orcover all operations liable to be affected by such irregularities; (b) the implementation of a project appears not NAO shall notify the corresponding adjustments to justify either part or the whole of Commission, with copy to the assistance allocated orCAO and the Audit Authority; (c) there amounts of the Community contribution which are serious failings in cancelled and amounts recovered, as well as the management or control systems which could lead interest thereon, shall be reallocated to irregularitiesthe IPARD Programme concerned. However, the Commission cancelled or recovered Community contribution may suspend further financing of be reused only for an operation under the programme in question, and, stating its reasons, request that same IPARD Programme and provided the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement contribution is reached by the end of the period set by the Commission and if the required corrections reallocated to operations which have not been madethe subject of a financial adjustment. 5. When the annual accounts are sent, as provided for in Article 51, the Commission may – taking into account any comments made by NAO shall provide the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for Commission, with copy to the programme CAO and the Audit Authority, with a summary report on the recovery procedures undertaken in question, or (b) make the financial corrections required by cancelling all or part response to irregularities. This shall give a breakdown of the assistance granted to the programme concerned. The Commission shallamounts not yet recovered, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity by administrative and/or judicial procedure and the extent and financial implications by year of the shortcomings found primary administrative or judicial finding of the irregularity. 6. After the procedure laid down in Article 54(3) and in the management and control system first three subparagraphs of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.Article 54

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 irregularity13 or fraud26 fraud14 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence Communities; non disclosure of information in violation of a decision to do either (a) specific obligation with the same effect; the misapplication of such funds for purposes other than those for which they are originally granted. 12 Irregularity shall mean any infringement of a provision of national or (b)Community law, further financing this Financing Memorandum or ensuing contracts, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the programme shall immediately resumeCommunities or budgets managed by them, by an unjustified item of expenditure. The National Authorising Officer will ensure term “Community law” in this context shall be defined as the reimbursement entirety of any unused funds or any sum wrongly paid within sixty calendar days Community rules applicable between the Parties of the date Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial RegulationNational Fund etc.)

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 irregularity13 or fraud26 fraud14 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission Commmission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, 10 Commission Regulation (EC) 1681/94 of 11. July 1994; 12.7.94; p. 43 11 Fraud shall mean any intentional act or omission relating to: the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities; non disclosure of information in violation of a specific obligation with the same effect; the misapplication of such funds for purposes other than those for which they are originally granted. 12 Irregularity shall mean any infringement of a provision of national or Community law, this Financing Memorandum or ensuing contracts, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, by an unjustified item of expenditure. The term “Community law” in this context shall be defined as the entirety of Community rules applicable between the Parties of the Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the National Fund etc.) 13 see definition above 14 see definition above the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 irregularity20 or fraud26 fraud21 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the The Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the The implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there There are serious failings in the management or control systems which could lead to irregularities, the The Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce Reduce or cancel any payment for the programme in question, or (b) make Make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 or fraud26 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, oror 23 Fraud shall mean any intentional act or omission relating to: the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities; non disclosure of information in violation of a specific obligation with the same effect; the misapplication of such funds for purposes other than those for which they are originally granted. 24 Irregularity shall mean any infringement of a provision of national or Community law, this Financing Memorandum or ensuing contracts, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, by an unjustified item of expenditure. The term “Community law” in this context shall be defined as the entirety of Community rules applicable between the Parties of the Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the National Fund etc.) 25 see definition above 26 see definition above (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 or fraud26 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. 25 see definition above 26 see definition above Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 irregularity26 or fraud26 fraud27 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 irregularity41 or fraud26 fraud42 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.. 41 see definition above 42 see definition above

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 or fraud26 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. by an unjustified item of expenditure. The term “Community law” in this context shall be defined as the entirety of Community rules applicable between the Parties of the Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the National Fund etc.) 25 see definition above 26 see definition above The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 irregularity26 or fraud26 fraud27 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, oror 23 Commission Regulation (EC) 1681/94 of 11. July 1994; 12.7.94; p. 43 24 Fraud shall mean any intentional act or omission relating to: the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities; non disclosure of information in violation of a specific obligation with the same effect; the misapplication of such funds for purposes other than those for which they are originally granted. 25 Irregularity shall mean any infringement of a provision of national or Community law, this Financing Memorandum or ensuing contracts, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, by an unjustified item of expenditure. The term “Community law” in this context shall be defined as the entirety of Community rules applicable between the Parties of the Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the National Fund etc.) 26 see definition above 27 see definition above (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.

Recovery of Funds in Case of Irregularity or Fraud. Any proven irregularity25 or fraud26 discovered at any time during the implementation of the programme or as the result of an audit will lead to the recovery of funds by the Commission. If, after completing the necessary verifications, the Commission concludes that: (a) the Beneficiary Country has not complied with the obligations to prevent, detect, and correct irregularities or (b) the implementation of a project appears not to justify either part or the whole of the assistance allocated or (c) there are serious failings in the management or control systems which could lead to irregularities, the Commission may suspend further financing of the programme in question, and, stating its reasons, request that the Beneficiary Country submit comments and, where appropriate, carry out any corrections within a specified period of time. If no agreement is reached by the end of the period set by the Commission and if the required corrections have not been made, the Commission may – taking into account any comments made by the Beneficiary Country – decide within three months to: (a) reduce or cancel any payment for the programme in question, or (b) make the financial corrections required by cancelling all or part of the assistance granted to the programme concerned. 23 Fraud shall mean any intentional act or omission relating to: the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities; non disclosure of information in violation of a specific obligation with the same effect; the misapplication of such funds for purposes other than those for which they are originally granted. 24 Irregularity shall mean any infringement of a provision of national or Community law, this Financing Memorandum or ensuing contracts, resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, by an unjustified item of expenditure. The term “Community law” in this context shall be defined as the entirety of Community rules applicable between the Parties of the Financing Memorandum (e.g. the Europe Agreements, Framework Agreements, the MoU on the Establishment of the National Fund etc.) 25 see definition above 26 see definition above The Commission shall, when deciding on the amount of a correction, take into account the principle of proportionality, the type of irregularity and the extent and financial implications of the shortcomings found in the management and control system of the Beneficiary Country. In the absence of a decision to do either (a) or (b), further financing of the programme shall immediately resume. The National Authorising Officer will ensure the reimbursement of any unused funds or any sum wrongly paid within sixty calendar days of the date of the notification. If the NAO does not repay the amount due to the Community, the Beneficiary Country shall refund this amount to the Commission. Interest on account of late payment shall be charged on sums not repaid by applying the rules specified in the Financial Regulation.