Main financial corrections
Under this latest decision, funds will be recovered from 14 Member States: Belgium, Denmark, Germany, Ireland, Greece, Spain, France, Italy, Latvia, Luxembourg, Hungary, Poland, Slovenia, Finland and the United Kingdom. The most significant individual corrections are:
-
€ 40.4 million charged to UK for weaknesses related to the Land Parcel Identification System – Geographical Information System (LPIS-GIS), to the on-the-spot checks and to the payments and sanctions in Scotland
-
€ 39.2 million (financial impact1 : €30.4 million) charged to Poland for weaknesses related to the LPIS-GIS, administrative cross-checks, payments, application of sanctions, retro-active recoveries and the lateness of on-the-spot checks
-
€ 18.6 million (financial impact2 : €16.6 million) charged to UK for deficiencies in the allocation of entitlements
-
€ 11.5 million charged to Denmark for deficiencies in the LPIS and in the on-the-spot controls.
Background
Member States are responsible for managing most CAP payments, mainly via their paying agencies. They are also in charge of controls, for example verifying the farmer's claims for direct payments. The Commission carries out over 100 audits every year, verifying that Member State controls and responses to shortcomings are sufficient, and has the power to claw back funds in arrears if the audits show that Member State management and control is not good enough to guarantee that EU funds have been spent properly.
For details on how the clearance of annual accounts system works, see MEMO/12/109 and the factsheet "Managing the agriculture budget wisely", available on the internet at: http://ec.europa.eu/agriculture/fin/clearance/factsheet_en.pdf.
Annex I : Conformity clearance of accounts of EAGF and EAFRD
Decision 42: Corrections by Member state (In Million €)
|
Sector and reason for correction
|
Amount of correction
|
Amount of financial impact of the correction3
|
|
Belgium
|
|
|
|
Fruit and Vegetables - correction proposed for non-compliance with recognition criteria for the Producer Organisation
|
4.108
|
4.108
|
|
Germany
|
|
|
|
Potato Starch - correction proposed for deficiencies in the payment mechanism in a potato starch company
|
6.193
|
6.193
|
|
Area Aid - correction proposed for weakness of on-the-spot checks and for ineligibility of landscape features
|
1.050
|
1.050
|
|
Denmark
|
|
|
|
Area Aid - correction proposed for deficiencies in the LPIS and in the on-the-spot controls
|
11.455
|
11.455
|
|
Spain
|
|
|
|
Cross-compliance – correction proposed for deficiencies in sanctioning system and 1 good agricultural and environmental condition (GAEC) missing
|
5.310
|
5.309
|
|
Rural Development - correction proposed for not correctly carried out verification of the respect of the selection criterion
|
0.271
|
0.271
|
|
Rural Development - correction proposed for weaknesses of the on-the-spot controls
|
1.176
|
1.176
|
|
Finland
|
|
|
|
Intervention Storage – correction proposed for mistakes in the management in case of in-situ movements in the store
|
0.715
|
0.715
|
|
Area Aid - correction proposed for non-application of sanctions, deficiencies in recalculation of entitlements, deficiencies in the quality of on-the-spot checks
|
3.980
|
3.980
|
|
Rural Development - correction proposed for weaknesses in verification of fulfilment of agri-environment commitments
|
0.286
|
0.286
|
|
Rural Development - correction proposed for lack of verification of annual veterinary certificates
|
0.333
|
0.333
|
|
France
|
|
|
|
Intervention Storage – correction proposed for deficiencies in control and reporting mechanism in public storage of alcohol
|
0.405
|
0.405
|
|
Intervention Storage – correction proposed for late payments for the public storage scheme for skimmed-milk powder
|
0.089
|
0.089
|
|
Livestock Premiums - correction proposed for deficiencies in the verification of eligibility criteria for sheep premiums
|
1.335
|
1.335
|
|
UK
|
|
|
|
|
Livestock premium - correction proposed for non-application of reductions and exclusions for irregularities detected by the administrative checks; undue payment made due to delays in updating the I&R database; payments to animals with both ear tags missing
|
0.777
|
0.777
|
|
|
Area Aid - correction proposed for weaknesses related to the Land Parcel Identification System – Geographical Information System (LPIS-GIS), to the on-the-spot checks and to the payments and sanctions in Scotland
|
40.454
|
40.437
|
|
|
Area Aid - correction proposed for errors in allocation of entitlements
|
18.565
|
16.611
|
|
|
Rural Development - correction proposed for lack of traceability of on-the-spot-checks
|
0.134
|
0.120
|
|
|
Greece
|
|
|
|
Fruits and Vegetables - correction proposed for deficiencies in controls of records kept by Producer Organisations, in the administrative and accounting checks of the producers and Producer Organisations; unauthorised cash payments; absence of control of tally checks and of checks on stocks
|
3.018
|
3.018
|
|
POSEI - correction proposed for inadequate geographic information system (GIS) for olive cultivation
|
2.173
|
2.173
|
|
Hungary
|
|
|
|
|
Export Refunds - correction proposed for absence of tachograph checks at exit on live cattle exports
|
0.235
|
0.235
|
|
|
Area Aid - correction proposed for weaknesses in the LPIS-GIS
|
4.995
|
4.995
|
|
|
Rural development - correction proposed for deficiencies in verification of eligibility criterion, weakness in the key controls and in the calculation of the aid
|
3.170
|
3.170
|
|
|
Ireland
|
|
|
|
|
Intervention Storage - correction proposed for ineligible amounts compensated in the framework of the exceptional support measure for the pig meat and beef market
|
0.480
|
0.450
|
|
|
Area Aid - correction proposed for weaknesses in the LPIS-GIS, on the spot checks and in the registration and control procedure of Common land, application of undue tolerances during administrative cross-checks, incorrect penalty calculation
|
5.539
|
5.539
|
|
|
Italy
|
|
|
|
Fruits and Vegetables - correction proposed for recurrent weaknesses in the administrative, accounting and physical checks and for deficiencies in the application of sanctions for citrus processing scheme in Sicily
|
4.861
|
4.861
|
|
Fruits and Vegetables - correction proposed for recurrent weaknesses in the administrative, accounting and physical checks and for deficiencies in the application of sanctions for citrus processing scheme in Calabria
|
8.937
|
8.937
|
|
Intervention Storage - correction proposed for late payments in the private storage of cheese
|
0.976
|
0.976
|
|
Cross-compliance - corrigendum of Decision 2013/123/EU: reimbursement due to the overlapping corrections not taken into account in Decision 40
|
0
|
Reimbursement of 0.076
|
|
Luxembourg
|
|
|
|
Rural development - correction proposed for deficiencies in control of animals and in traceability of controls, lack of controls of the delegated on-the-spot controls and lack of comparison of the controls' results
|
0.279
|
0.279
|
|
Latvia
|
|
|
|
Rural development - correction proposed for insufficient control on the eligibility criterion in the semi-subsistence farming scheme
|
1.232
|
1.232
|
|
Poland
|
|
|
|
Intervention Storage - correction proposed for incorrect booking of the costs for 'removal costs' in public storage accounts on maize and butter
|
0.047
|
0.047
|
|
Intervention Storage - correction proposed for incorrect booking of the value of the products in the public storage accounts for cereals and sugar
|
0.011
|
0.011
|
|
Area Aid - correction proposed for weaknesses related to the LPIS-GIS, administrative cross-checks, payments, application of sanctions, retro-active recoveries and the lateness of on-the-spot checks
|
39.177
|
30.416
|
|
Slovenia
|
|
|
|
Area Aid - correction proposed for LPIS weaknesses including ineligible payments, incorrect calculation of sanctions and retro-active recoveries of undue payments
|
8.090
|
8.090
|
| |
|
|
|
TOTAL
|
179.830
|
169.005
|
Annex II : Clearance of accounts of EAGF and EAFRD
Decision 42: Corrections by Sector (In Million €)
|
Sector
|
Amount of correction
|
Amount of financial impact of the correction4
|
|
|
|
|
|
Export refunds
|
0.235
|
0.235
|
|
|
|
|
|
Fruit and Vegetables
|
20.925
|
20.925
|
|
|
|
|
|
Intervention Storage
|
2.693
|
2.693
|
|
|
|
|
|
Potato Starch
|
6.139
|
6.193
|
|
|
|
|
|
POSEI
|
2.173
|
2.173
|
|
|
|
|
|
Livestock premiums
|
2.111
|
2.111
|
| |
|
|
|
Area aid
|
133.307
|
122.574
|
| |
|
|
|
Cross-compliance
|
5.310
|
5.234
|
| |
|
|
|
Rural development
|
6.882
|
6.867
|
|
|
|
|
|
TOTAL
|
179.830
|
169.005
|
1 : The financial impact is lower due to amounts already recovered from or paid back by the Member State.
2 : The financial impact is lower due to amounts already recovered from or paid back by the Member State.
3 : Financial impact of the correction is taking into account the previous overlapping corrections and amounts already recovered by the European Commission
4 : Financial impact of the correction is taking into account the previous overlapping corrections and amounts already recovered by the European Commission
