Commission Implementing Regulation (EU) 2022/128 of 21 December 2021 laying down rules for the application of Regulation (EU) 2021/2116 of the European Parliament and of the Council on paying agencies and other bodies, financial management, clearance of accounts, checks, securities and transparency
Modified by
  • Commission Implementing Regulation (EU) 2023/860of 25 April 2023amending and correcting Implementing Regulation (EU) 2022/128 as regards transparency, the management declaration, the coordinating body, the certification body, and certain provisions for EAGF and EAFRDCorrigendum to Commission Implementing Regulation (EU) 2023/860 of 25 April 2023 amending and correcting Implementing Regulation (EU) 2022/128 as regards transparency, the management declaration, the coordinating body, the certification body, and certain provisions for EAGF and EAFRD(Official Journal of the European Union L 111 of 26 April 2023), 32023R086032023R0860R(01), April 26, 2023
  • Commission Implementing Regulation (EU) 2023/2155of 17 October 2023amending Implementing Regulation (EU) 2022/128 as regards certain reporting requirements for communications on EAGF in an electronic form, 32023R2155, October 18, 2023
  • Commission Implementing Regulation (EU) 2023/2773of 13 December 2023correcting Implementing Regulation (EU) 2022/128 as regards certain provisions for EAGF and EAFRD for audit methods, the scrutiny of transactions and the management declaration, 32023R2773, December 14, 2023
Corrected by
  • Corrigendum to Commission Implementing Regulation (EU) 2022/128 of 21 December 2021 laying down rules for the application of Regulation (EU) 2021/2116 of the European Parliament and of the Council on paying agencies and other bodies, financial management, clearance of accounts, checks, securities and transparency, 32022R0128R(02), November 24, 2023
  • Corrigendum to Commission Implementing Regulation (EU) 2023/860 of 25 April 2023 amending and correcting Implementing Regulation (EU) 2022/128 as regards transparency, the management declaration, the coordinating body, the certification body, and certain provisions for EAGF and EAFRD, 32023R0860R(01), June 15, 2023
Commission Implementing Regulation (EU) 2022/128of 21 December 2021laying down rules for the application of Regulation (EU) 2021/2116 of the European Parliament and of the Council on paying agencies and other bodies, financial management, clearance of accounts, checks, securities and transparency CHAPTER IPaying agencies and other bodies
Article 1Procedure for the accreditation of paying agencies1.Member States shall designate an authority at ministerial level responsible for:(a)the issuing, reviewing and withdrawing of accreditation of paying agencies;(b)carrying out the tasks assigned to the competent authority pursuant to this Chapter.2.The competent authority shall, by way of a formal act, decide on the issuing or, after review, the withdrawal of the accreditation of the paying agency on the basis of an examination of the accreditation criteria referred to in Article 1(2) and (3) of Delegated Regulation (EU) 2022/127. The competent authority shall inform the Commission of accreditations and withdrawals of accreditations without delay.3.The competent authority shall appoint an audit body to carry out an examination before any accreditation is issued (pre-accreditation review). The audit body shall be an audit authority, or other public or private organisation or organisational unit of an authority with the requisite proficiency, skills and capacity to carry out audits. The audit body shall be independent from the paying agency to be accredited.4.The examination (pre-accreditation review) to be carried out by the audit body shall cover, in particular:(a)the procedures and systems in place for the authorisation and execution of payments and for the execution of the annual performance reporting;(b)the division of duties and the adequacy of internal and external control in respect of transactions financed by the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD), hereinafter together referred to as "the Funds";(c)the extent to which the procedures and systems put in place are apt to safeguard the Union budget including risk-based anti-fraud measures;(d)the security of information systems;(e)the maintenance of accounting records.The audit body shall prepare a report detailing the audit work carried out, the results of that work and its assessment as to whether the paying agency complies with the accreditation criteria. The report shall be provided to the competent authority which shall then assess the results and issue the accreditation act where it is satisfied that the paying agency complies with the accreditation criteria.5.Where the competent authority considers that the paying agency does not comply with the accreditation criteria, it shall inform the paying agency of the specific conditions it is required to fulfil before accreditation may be issued.Pending the implementation of any necessary changes in order to fulfil such specific conditions, accreditation may be issued provisionally for a period to be determined taking into account the severity of the problems identified, which shall not exceed 12 months. In duly justified cases, the Commission may, upon request of the Member State concerned, grant an extension of that period.6.The information provided for in Article 90(1), first subparagraph, point (a), of Regulation (EU) 2021/2116 shall be communicated immediately after the paying agency is first accredited and in any case before any expenditure effected by it is charged to the Funds. That information shall be accompanied by declarations and documents concerning:(a)the responsibilities vested in the paying agency;(b)the allocation of responsibilities between the departments of the paying agency;(c)the relationship of the paying agency with other bodies, public or private, which are responsible for implementing any measures under which the paying agency charges expenditure to the Funds;(d)the procedures by which claims by beneficiaries are received, verified, and validated, and by which expenditure is authorised, paid and accounted for;(e)the provisions concerning the security of information systems;(f)the report of the pre-accreditation review carried out by the audit body referred to in paragraph 3.7.The Commission shall inform the Committee on the Agricultural Funds of paying agencies accredited in each Member State.
Article 2Review and withdrawal of accreditation of paying agencies1.The competent authority shall keep the paying agencies for which it is responsible under constant supervision, on the basis of, in particular, the certificates and reports drawn up by the certification body referred to in Article 12 of Regulation (EU) 2021/2116, and shall follow-up on any deficiencies identified.Every 3 years, the competent authority shall report in writing to the Commission on its supervision of paying agencies and monitoring of their activities. The report shall include a review of the paying agencies’ continuous compliance with the accreditation criteria, together with a summary of the actions taken to remedy the deficiencies. The competent authority shall confirm whether a paying agency for which it is responsible continues to comply with the accreditation criteria.2.Member States shall establish a system that ensures that any information suggesting that a paying agency does not comply with the accreditation criteria is communicated to the competent authority without delay.3.Where the competent authority has determined that an accredited paying agency no longer respects one or more of the accreditation criteria in a manner that is liable to hinder the fulfilment of the tasks set out in Article 1(1) of Delegated Regulation (EU) 2022/127, the competent authority shall put the paying agency’s accreditation under probation without delay. It shall draw up a plan including actions and deadlines to remedy the deficiencies found within a period to be determined according to the severity of the problem, which shall not exceed 12 months from the date on which the accreditation is put under probation. In duly justified cases, the Commission may, upon request of the Member State concerned, grant an extension of that period.4.The competent authority shall inform the Commission of its decision to place a paying agency’s accreditation under probation, of the plan drawn up pursuant to paragraph 3 and, subsequently, of the progress in the implementation of such plans.5.If the accreditation is withdrawn, the competent authority shall without delay accredit another paying agency which fulfils the conditions laid down in Article 9(2) of Regulation (EU) 2021/2116 to ensure that payments to beneficiaries are not interrupted.6.Where the Commission finds that the competent authority has not complied with its obligation to draw up a remedial plan pursuant to paragraph 3 or that the paying agency continues to be accredited without having fully implemented such a plan within the determined period, it shall request the competent authority to withdraw the accreditation of that paying agency unless the necessary changes are made within a period to be determined by the Commission according to the severity of the problem. In such a situation, the Commission may decide to pursue the deficiencies through the conformity procedure in accordance with Article 55 of Regulation (EU) 2021/2116.
Article 3Procedure for issuing, reviewing and withdrawing the accreditation of the coordinating body1.Member States shall designate an authority at ministerial level responsible for the issuing, reviewing and withdrawing of the accreditation of the coordinating body referred to in Article 10 of Regulation (EU) 2021/2116 (hereinafter "the competent authority").2.The competent authority shall, by way of a formal act, designate and decide on the issuing or, after review, the withdrawal of the accreditation of the coordinating body on the basis of an examination of the accreditation criteria referred to in Article 2 of Delegated Regulation (EU) 2022/127. This examination on the compliance with the accreditation criteria shall be carried out by the competent authority and it may rely on an examination performed by an audit body. The competent authority shall inform the Commission of issuing and withdrawing the accreditation of the coordinating body without delay.3.The coordinating body referred to in Article 10 of Regulation (EU) 2021/2116 shall act as the Commission’s sole interlocutor for the Member State concerned for all questions relating to the Funds as regards its tasks.4.A paying agency may act as a coordinating body provided that the two functions are kept separate.5.In performing its tasks, the coordinating body may, in accordance with national procedures, call on other administrative bodies or departments, particularly on those with accounting or technical expertise.6.The confidentiality, integrity and availability of all computer data held by the coordinating body shall be ensured by measures adapted to the administrative structure, staffing and technological environment of each coordinating body. The financial and technological effort shall be proportionate to the actual risks incurred.7.The communication of information provided for in Article 90, first subparagraph, point (a), of Regulation (EU) 2021/2116 shall be made immediately after the coordinating body is first accredited and, in any case, before any expenditure for which it is responsible is charged to the Funds. That information shall be accompanied by declarations and documents concerning:(a)the responsibilities vested in the coordinating body;(b)the allocation of responsibilities within the coordinating body;(c)the relationship of the coordinating body with other bodies, public or private, which are responsible to collaborate with it on the performance of its tasks;(d)the procedures and systems in place in place to ensure the performance of its tasks;(e)the provisions concerning the security of information systems;(f)the result of the examination on the compliance with the accreditation criteria referred to in paragraph 2.8.Where the competent authority considers that the coordinating body does not comply with the accreditation criteria, it shall inform the coordinating body of the requirements to be complied with.Pending the implementation of any necessary changes in order to meet the accreditation criteria, accreditation may be:(a)issued provisionally for a new coordinating body;(b)put under probation for an existing coordinating body provided that an action plan is followed to remedy the situation.The accreditation shall be withdrawn if the accreditation criteria have not been fulfilled and the competent authority considers that the coordinating body cannot fulfil its tasks.
Article 4Management declarations1.The management declarations referred to in Article 9(3), first subparagraph, point (d), and Article 10(3) of Regulation (EU) 2021/2116 shall be drawn up in due time for the certification body to issue the opinion referred to in Article 12(1) of that Regulation.The management declarations shall be in the forms set out in Annexes I and II respectively to this Regulation and may be qualified by reservations quantifying the potential financial impact. In the event that reservations are expressed, the declaration shall include a remedial action plan and a precise a time frame for its implementation.2.The management declarations shall be based on an effective supervision of the management and control system in place throughout the year.
Article 5Certification1.The competent authority shall designate the certification body provided for in Article 12 of Regulation (EU) 2021/2116.Where there is more than one certification body in a Member State, that Member State may designate a public certification body at the national level to be responsible for coordination.2.The certification body shall organise its work in an effective and efficient manner, and carry out its checks within an appropriate time frame, taking into account the nature and the timing of the transactions for the financial year concerned.3.The opinion to be provided by the certification body in accordance with Article 12(2) of Regulation (EU) 2021/2116 shall be drawn up annually.That opinion shall be based on the audit work to be carried out in accordance with Articles 6 and 7 of this Regulation.4.The certification body shall draw up a report of its findings. The report shall also cover the delegated functions of the paying agency in accordance with Section 1.(D) of Annex I to Delegated Regulation (EU) 2022/127. The report shall state whether, for the period covered by the report:(a)the paying agency complied with the accreditation criteria;(b)the paying agency’s procedures were such as to give reasonable assurance that the expenditure charged to the Funds was effected in compliance with Union rules, thus ensuring that:(i)as regards the types of intervention referred to in Regulation (EU) 2021/2115, the expenditure has corresponding reported output and that it has been effected in accordance with the applicable governance systems, and that recommendations for improvements, if any, have been followed up;(ii)the underlying transactions were legal and regular, as regards the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and Regulation (EU) No 1144/2014 of the European Parliament and of the CouncilRegulation (EU) No 1144/2014 of the European Parliament and of the Council of 22 October 2014 on information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries and repealing Council Regulation (EC) No 3/2008 (OJ L 317, 4.11.2014, p. 56)., as well as for the crop-specific payment for cotton and support for early retirement under Title III, Chapter II, Section 3, Subsection 2, and Article 155(2), respectively, of Regulation (EU) 2021/2115, and that recommendations for improvements, if any, have been followed up;(c)the performance reporting on output indicators for the purpose of the annual performance clearance referred to in Article 54 of Regulation (EU) 2021/2116 and the performance reporting on result indicators for the multiannual performance monitoring referred to in Article 134 of Regulation (EU) 2021/2115, demonstrating that Article 37 of Regulation (EU) 2021/2116 is complied with, was correct;(d)the annual accounts referred to in Article 33 of this Regulation were kept in accordance with the books and records of the paying agency;(e)the statements of expenditure and of public intervention operations were a materially true, complete and accurate record of the operations charged to the Funds;(f)the financial interests of the Union were properly protected as regards advances paid, guarantees obtained, intervention stocks and amounts to be collected.The report shall include information on the number and qualifications of staff conducting the audit, the work done, the systems examined, the level of materiality and confidence obtained where applicable, any weaknesses found and recommendations made for improvement and the operations of both the certification body and other audit bodies, internal and external to the paying agency, from which all or part of the certification body’s assurance on the matters reported was gained.
Article 6Audit principles1.The certification audit shall be carried out in accordance with internationally accepted auditing standards.2.The certification body shall prepare an audit strategy that sets the scope, timing and direction of the certification audit, the audit methods and the sampling methodology, while distinguishing types of intervention referred to in Regulation (EU) 2021/2115 from measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014. An audit plan shall be developed in respect of each financial year audited based on the estimated audit risk. Upon request, the certification body shall provide the Commission with the audit strategy and the audit plan.3.The reasonable level of audit assurance to be achieved from auditing shall be obtained as to the proper functioning of the governance systems, the correctness of the performance reporting, the true and fair view of the annual accounts and the legality and regularity of the underlying transactions as regards the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014, as well as for the crop-specific payment for cotton and support for early retirement under Title III, Chapter II, Section 3, Subsection 2, and Article 155(2), respectively, of Regulation (EU) 2021/2115, for which reimbursement has been requested from the Commission.This shall be done through system audit and compliance testing as regards the functioning of governance system, completeness and accuracy testing and analytical procedures for the performance reporting system.As regards the audit of annual accounts substantive testing of expenditure shall be applied, including test of details. As regards the audit of the legality and regularity of the underlying transactions as referred to in the first subparagraph, the testing shall include verification on-the-spot.4.The Commission shall establish guidelines, which contain, in particular:(a)further clarification and guidance in respect of the certification audit to be performed;(b)the determination of the reasonable level of audit assurance to be achieved from auditing.
Article 7Audit methods1.The audit methods relevant to the certification audit shall be defined in the audit strategy provided for in Article 6(2).2.To achieve the audit objectives and to issue the opinion as laid down in Article 12(2) of Regulation (EU) 2021/2116, the audit steps shall include systems audits, substantive testing, where necessary, and the verification of reconciliations on financial and management declarations.3.As regards the auditing of governance systems, the certification body shall perform systems audits that may include compliance testing and also testing of IT general controls and application controls, for the purpose of verification of the system design and implementation.4.Substantive testing of expenditure shall cover the verification of legality and regularity of the underlying transactions at the level of the final beneficiaries as regards the measures laid down in Regulations (EU) No 228/2013, (EU) No 229/2013, (EU) No 1308/2013 and (EU) No 1144/2014, as well as for the crop-specific payment for cotton and support for early retirement under Title III, Chapter II, Section 3, Subsection 2, and Article 155(2), respectively, of Regulation (EU) 2021/2115. For those purposes, the certification body may accompany the paying agency when it carries out secondary level on-the-spot checks. The certification body shall not accompany the paying agency when it carries out initial on-the-spot checks, with the exception of those situations where it would be physically impossible to re-verify the initial check carried out by the paying agency.5.As regards auditing of the performance reporting system, the certification body shall apply testing of records, databases to verify if reported performance output and result indicators are correctly reported and match the expenditure financed by the Union or objectives of intervention, respectively. Justifications provided for the differences between the annual expenditure declared for an intervention and the amount corresponding to the relevant reported output indicator in accordance with Article 54(2) of Regulation (EU) 2021/2116 shall be verified and confirmed by the certification body. The certification body’s work shall also include the verification of the calculation of the indicators.6.The certification body may rely on the audit results of the external auditors of the bodies implementing financial instruments for the purpose of the overall assurance and on this basis, the certification body may decide to limit its own audit work.In the context of guarantee funds, the certification body may conduct audits of the bodies providing new underlying loans only when either one or both of the following situations occur:(a)supporting documents, providing evidence of the support from the financial instrument to final recipients, are not available at the level of the managing authority or at the level of the bodies implementing the financial instrument;(b)there is evidence that the documents available at the level of the managing authority or at the level of the bodies implementing the financial instrument do not represent a true and accurate record of the support provided.The Member State shall define the arrangements to ensure the audit trail for financial instruments in accordance with the template set out in Annex III, demonstrating the fulfilment of conditions or achievement of results.7.The European Investment Bank (EIB), or other international financial institutions in which a Member State is a shareholder implementing financial instruments, shall by the end of each calendar year provide the Member States with the annual audit report referred to in the third subparagraph of Article 12(2) of Regulation (EU) 2021/2116 prepared by their external auditors covering the elements included in Annex IV to this Regulation.8.The Commission shall provide further conditions and guidance on designing the audit procedures, sampling integration, planning and carrying out the on-the-spot re-verification of transactions, where necessary, through the guidelines as referred to in Article 6(4).
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