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On The Multi-Annual Financial Agreement Between The Republic Of Latvia And The European Commission On Behalf Of The European Community

Original Language Title: Par Daudzgadējo finanšu līgumu starp Latvijas Republiku un Eiropas Komisiju Eiropas Kopienas vārdā

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The Saeima has adopted and the President promulgated the following laws: For the Multi-annual financing agreement between the Republic of Latvia and the European Commission, on behalf of the European Community, article 1. 25 January 2001 in Brussels signed the Multi-annual financing agreement between the Republic of Latvia and the European Commission on behalf of the European Community (hereinafter referred to as the Treaty) this law is adopted and approved.
2. article. Under the Treaty, the finance Deputy State Secretary, Ministry of fulfilling the national officers and the obligations of the competent institution.
3. article. The meaning of the Treaty, the Ministry of finance is responsible for the National Fund functions.
4. article. The meaning of the Treaty, the institution certifying the financial ministries is organized in connection with the selected institution.
5. article. In accordance with the agreement of the SAPARD programme on the SAPARD Agency, marketing functions after the completion of the accreditation procedure laid down in the Treaty, the field support service.
6. article. The meaning of the Treaty functions carried out by the Managing Authority Ministry of agriculture.
7. article. The Minister of agriculture is responsible for: 1) SAPARD programme implementation under the rural development plan and the contract;
2) ensure compliance with the procurement rules in accordance with the Treaty;
3) Field support services internal control and audit systems operating under contract;
4) inventory system and the provision of support services in the Field under contract;
5) submitted to the European Commission for payment requests included information on the implementation of the programme and the amount of accuracy and relevance to the actual situation;
6) compliance with the contractual information requirements and the actual situation, which included payment orders for the performance of transfers to beneficiaries.
8. article. National officers, the Ministry of Finance, Ministry of agriculture and rural support service cooperation Agreement within the framework of the implementation of the SAPARD regulation in each of those institutions.
9. article. The law shall enter into force on the date of its promulgation. To put the contract in law Latvian and English.
10. article. The agreement shall enter into force for the period specified in article 9 and in order, and the Ministry of Foreign Affairs shall notify the newspaper "journal".
The law adopted by the Parliament of 15 March 2001.
The President of the Parliament instead of the President j. stream in Riga, March 29, 2001 the law shall enter into force on the 29th March 2001.
The special accession programme lauksaimniecībaiun rural development in the Republic of Latvia in the Multiannual financing agreement between the Republic of Latvia and the European Commission, on behalf of the European Community, Commission of the European communities, hereinafter referred to as ' the Commission ', which works on behalf of the European Community, hereinafter referred to as ' the Community ', of the one part, and the Republic of Latvia, on the other hand, jointly referred to as the "Contracting Parties", considering that: (1) 21 June 1999 Council Regulation (EC) No 1268/1999 on community support for pre-accession measures for agriculture and rural development in the applicant countries of Central and Eastern Europe in the pre-accession period , has created a special pre-accession programme for agriculture and rural development (hereinafter "SAPARD"), which provides the community's financial ieguldījumu1;
(2) the Republic of Latvia is entitled to be a beneficiary of SAPARD funding;
(3) the Republic of Latvia has been approved by the agricultural and rural development plan and submitted it to the Commission for approval of a program;
(4) the plan has been approved as an agricultural and rural development program with a decision taken in accordance with Regulation (EC) No 1268/1999, article 4 (5) of 25 October. It is necessary to lay down the conditions for agriculture and rural development programmes and the implementation of the amendment in the Republic of Latvia;
(5) the programme should be implemented in a decentralised manner in accordance with the Commission decision adopted in accordance with the 21 June 1999 Council Regulation (EC) no 1266/1999, article 12 (2) on the coordination of assistance to the candidate countries in the framework of the pre-accession strategy, correcting Regulation (EEC) No 3906/89 (2) and the transfer of the administration of the aid agency of the Republic of Latvia;
Agree as follows: article 1 purpose 1. This contract shall lay down the technical, legal and administrative framework, under which the Republic of Latvia will be realized in the agricultural and rural development programme and its amendments (hereinafter referred to as "the programme"). Reference to the current contract also means compliance with the program, the annual financing agreement (contracts) and Commission decision referred to in section A of annex 3 (1).
2. The Republic of Latvia shall ensure the proper implementation of the decentralised Programme in the Republic of Latvia, in accordance with the provisions of the Treaty.
3. in cases of Conflict between the Agreement and the conditions of this Agreement shall prevail.
Article 2 the annual financial contract 1. after the Commission has approved the application and concluded the contract, given each year to the annual financial contracts closed.
2. the community's financial commitments are set out in the annual financial agreements. They are the only instruments that define the community's financial commitment to the Republic of Latvia. Each annual financing agreement: (a) only for the year concerned, the maximum amount of the community's financial commitment to the Republic of Latvia and the period to which these obligations are in place, (b) where appropriate, any amendments to the terms of this agreement.
3. Joining the European Union, the Republic of Latvia shall lose its entitlement to receive support under the programme.
Article 3 and 1 community audit and Auditor of the Court of the European Communities (hereinafter referred to as "the Court of Auditors") is entitled in connection with the implementation of the programme to send its own agents or duly authorised representatives to carry out: (a) the technical or financial or audits of the Mission in the Republic of Latvia;
(b) checks to detect discrepancies and fraud cases.
Such missions, audits or inspections specifically can include system and procedure audits, physical control: — in relation to the projects and beneficiaries, and – in relation to suppliers who supply goods and services to the beneficiaries of the programme, particularly in relation to the price quotation and invoice the real test.
For such missions and audits the community previously warned Latvia's authorities.
2. keep that adequately reflect the programs funded projects and, where appropriate, the services in accordance with the safe and proper accounting procedures, taking into account the requirements set out in this agreement.
It ensures that the agents referred to in paragraph 1 or representatives has the right to examine all the relevant documentation and records of the system, which applies to programs funded projects and, where applicable, the services.
The Republic of Latvia provides that all recipients will be notified no later than when the beneficiaries are selected for the project referred to in paragraph 1, that the agents and representatives shall be entitled to take physical control.
3. The Republic of Latvia after the agents referred to in paragraph 1 and request the representatives provide all documents and information relating to the commitment and expenditure, which are financed under the programme, including in electronic form, prepared or stored information. It shall take all necessary measures to facilitate the above community agents and representatives work under this agreement.
Article 4 of the dispute resolution procedures disputes between Contracting Parties relating to the implementation of the contract, are dealt with in accordance with Annex G, section.
Article 5 language 1. any communication between the Commission and the Republic of Latvia in connection with the agreement shall be English.
2. the Commission shall ensure that the inspection referred to in section A of annex 3 (1) in article, is available in the national legislation, the written procedure manuals, guidelines, standard control page, the corresponding administration orders, standard documents and forms in English. In cases where the documentation is required for any other purpose and not the above checks, but this documentation is available in English, the Republic of Latvia, at the request of the Commission, an urgent text provides the English translation.
Article 6 termination 1. the Commission and the Republic of Latvia, each in accordance with their respective specific obligations, monitor the implementation of the programme within the framework of the current Treaty. Without prejudice to the rights and obligations set forth elsewhere in this agreement, each Contracting Party may terminate this agreement if the other party fails to fulfil any of its obligations under this agreement. If one of the parties becomes such an infringement, it shall immediately inform the other party.
2. where the Commission finds that the breach of the contract, it shall notify: (a) the Republic of Latvia on its intentions, together with the reasons, and (b) in relation to the programme, on condition that is not limited to section A of the annex, article 11 and article 12 of these decisions, it has the right to: (i) make financial corrections against the Republic of Latvia, (ii) suspend transfers of funds to the Republic of Latvia, (iii) to refrain from any new financial commitment from the community and (iv) if applicable, terminate this agreement, starting from when the first reported failure.
Article 7 Detailed conditions

Detailed provisions relating to the implementation of this agreement are set out in the following sections: section A of the annex. (B) the financial management section. Programme management, monitoring and evaluation section (C). General conditions (D) section. Quarterly and annual declarations of expenditure E. Directions to the certifying body (F). Community legislative texts referred to in Regulation (EC) no 2222/2000 on SAPARD financial noteikumiem3 adopted the objectives of this agreement.
(G) section. Dispute resolution procedure for the annexes to this Agreement shall be considered an integral part of the current Contract.
Article 8 contact correspondence in connection with any matters within the framework of the current Treaties where needed, indicating the program number and name, is addressed to the following: Post to the community: Commission of the European Communities Directorate General agriculture, SAPARD unit rue de la Loi, 200 B-1049 Brussels telephone: 00 32 2 2967 337 Fax: 00 32 2 29 51746 E-MAIL: agri-sapard@cec.eu.int post in the Republic of Latvia: national officer Finance Ministry sand Street 1 LV-1919 Rīga, Latvia Tel: + 371 7095419 fax: + 371 7095503 9. Article the date of entry into force of this agreement, the agreement shall enter into force on the date on which the Contracting Parties have notified each other about all the necessary formalities to conclude it.
Article 10 the signature of the Agreement is drawn up in English and Latvian language in two copies. For authentic text only version of the agreement considered in English.
Signed at Brussels, 25 January 2001 of the Commission of the European Communities: Franz Fischler member of the Commission from the party of the Republic of Latvia: Inguna silver financial Ministry under-Secretary of State national officer OJ L 161, 26.6.1999, 1, p. 87.
OJ L 161, 26.6.1999, 2, p. 68.
OJ L 253, 7.10.2000, 3 p. 5. Annex A of the financial management section article 1 scope this Section sets out the financial execution of the programme. Program execution depends on a decision of the Commission, who shall refer the help of agency management, and the content of this decision.
Article 2 definitions for the purposes of the agreement the following definitions are used: (a) "National Fund" – represents the Republic of Latvia appointed body, under the responsibility of the National Executive;
(b) "competent institution" means an institution of the Republic of Latvia, which (i) assign, monitor and withdrawing accreditation of the SAPARD Agency;
(ii) the certifying authority means;
(c) "SAPARD agency" means the body established in Latvia, operating under its supervision, carrying out the implementation and payment function. In the Republic of Latvia simultaneously can have only one accredited SAPARD Agency;
(d) "Certifying body" means a body that is independent of the SAPARD Agency and reviewing inspection reports on the management and control systems and verifies the co-financing elements;
(e) "SAPARD euro account" means the account to a financial or Treasury institution on behalf of the Republic of Latvia to open national officer and within its remit, which brings interest in accordance with the generally accepted commercial terms and that the goal is to get this title referred to in article 7. This account is used exclusively for SAPARD transactions, it is maintained for the euro, and is not subject to any charges or taxes;
(f) "financial year" means the calendar year from 1 January to 31 December.
(g) "measure" means the feature is implemented with priority to projects eligible for co-financing; each event is defined by the community and the contribution of the Republic of Latvia, as well as a series of specific objectives;
(h) "project" means any final action taken by the beneficiary under the programme;
(i) "ultimate consignee" means the entity or public or private undertakings responsible for carrying out the project;
(j) "Community contribution" means the portion of the total Community co-financing levels for public expenditure made under the programme;
(k) "public expenditure" means community and other public expenditure incurred by public authorities in the Republic of Latvia.
Article 3 assistance funds transfer transmission 1. Before the Commission takes a decision on the aid the transfer of management of the Agency, the Republic of Latvia permits the Commission to establish the section (F) of paragraph 1 and the conditions of paragraph 3 (referred to in this section as "the conditions") and this section of article 4, article 5, article 6 and the provisions of article 14.
To verify compliance with the previous conditions laid down in paragraph and article, the Commission shall: (a) examine the national fund procedures and structures related to the implementation of the programme and SAPARD agency procedures and structures, as well as, where appropriate, the other institutions and bodies, in accordance with the articles of this section 4 (3), 5 (3) and 6 (5) can be delegated any tasks.
(b) use physical controls on the site.
2. The Republic of Latvia provides that Latvian National Officer always keep full financial responsibility for the resources of the Community contribution. National Officer is the contact person for financial information flows between the Commission and the Republic of Latvia.
3. the decision to transfer the administration of the assistance to the Agency of the Republic of Latvia may adopt provisionally, provided that (1) the conditions referred to in the first subparagraph and article.
Article 4 the competent institution tasks 1. ensure that, prior to the SAPARD agency accreditation is granted, the competent institution shall give assurance that the Agency's administrative, accounting, payment and internal control procedures guarantees the following: (a) before the approval of the payment of the claim is permissible and this agreement;
(b) the commitments and the payments effected are correctly and fully reflected in the accounts;
(c) timely and necessary form are submitted all the required documents;
(d) prior to the signing of contracts with beneficiaries and registration applications are examined general compliance and compliance with this agreement.
The SAPARD Agency shall store the payment justification documents and documents related to the activities defined administrative and physical controls. In cases where the relevant documents stored in the bodies responsible for the certification of expenditure, these institutions must be sent to the SAPARD agency reports on the number of checks made, their content and the measures taken, leaving the results.
2. The Republic of Latvia shall ensure that the competent authorities of the decision to grant the accreditation of the SAPARD Agency is adopted on the basis of the examination referred to in paragraph 1 which covers the procedures and structures. Check in particular includes mechanisms designed to protect the interests of the community in connection with the transactions financed, taking into account article 5 of this section and article 14, namely: (a) make payments, (b) Treasury security, (c) computer system security, (d) the accounting records, (e) responsibilities and internal and external controls, compliance, (f) the necessary guarantees, (g) the amounts to be collected, (h), project selection, tendering, Contracting, and (i) compliance with procurement rules.
3. the test referred to in paragraph 2 is carried out in accordance with internationally accepted audit standards.
The competent authority may delegate the examination of the other institutions. In all cases, the overall responsibility for the Government of the Republic of Latvia shall maintain a national officer.
4. Accreditation provisionally be granted for a specified period of time, depending on how serious the problem is, as long as you made all the necessary changes in the administrative and accounting arrangements. In cases where such is provided for provisional accreditation, there must be sufficient to comply with article 5 of this section and the provisions of article 14, in particular in relation to the following criteria: (a) written procedures, segregation of duties, (b), (c) before the project approval and before-in-payment checks, payment procedures (d), (e) accounting procedures, computer security, (f), (g) internal audit and, where appropriate, public procurement provisions.
5. the competent authority shall ensure the SAPARD Agency's accounting system compliance with internationally accepted accounting standards.
6. If the competent institution has gained confidence that tested the SAPARD Agency meets all the relevant requirements, the continuing accreditation process. Otherwise, it shall order the SAPARD Agency in relation to the administrative and accounting procedures, and in particular the conditions which must be met by the Agency before it is possible to grant accreditation.
7. The national competent authority shall communicate to the Commission the following information concerning the accredited SAPARD Agency referred to in article 5 tasks: (a) the name of the SAPARD Agency and Charter;
(b) the administrative, accounting and internal control conditions under which are made with the implementation of the related payments;
(c) the Act of accreditation, which contains written confirmation that the institution meets the accreditation criteria and, where appropriate, set out the necessary changes and deadlines given for taking them;

(d) information on the following: (i) the responsibilities entrusted to the Agency, (ii) the allocation of responsibilities between its departments, (iii) the relationship with other public or private institutions, which also has some responsibilities in activities where expenditure programme;
(iv) the order in which are received, verified, and validated the recipient requests and are approved, and listed expenses paid;
(v) internal audit arrangements.
National Officer in advance shall inform the Commission of any proposed changes to the information above, before the changes are made.
8. ensure that the competent authority carries out monitoring and accreditation immediately withdraw the accreditation of the SAPARD Agency shall, if not in paragraph 4 are met from (i) to (VII) criteria. The National Executive shall immediately inform the Commission thereof.
Article 5 implementation of the SAPARD Agency and the payment task of the SAPARD Agency 1 implementation tasks shall include: (a) the invitation to submit an application and the compliance of the terms and conditions, (b) selection of projects, including the prioritisation criteria, (c) upon approval of the project, in order to ensure compliance with the deadlines and eligibility criteria, as well as the fulfilment of the given agreement, including, where appropriate, the provisions of the public order (d) a written contract, maintained between the Agency and recipients of assistance, including information on possible sanctions that in case of default, and where necessary, work permit, (e) the physical checks carried out on the site, to determine compliance with both before and after project approval, (f) further control, in order to ensure the successful implementation of projects, (g) reporting on the implementation of measures in relation to relevant indicators (h) do help recipient unknown What is the contribution of the community to be given on the project.
2. the payment task of the SAPARD Agency shall comprise: (a) a request for payment verification, (b) the physical checks carried out on the spot, to verify the legality of the request for payment, (c) the approval of the payment, (d), (e) the commitment and payment records, (f) where it asks for the SAPARD Agency and contractual arrangements between the beneficiaries or the conditions of the programme, the beneficiary of the control after receipt of payment of the assistance, to determine whether they are still satisfied the conditions for obtaining grants and eligibility criteria.
3. where functions of implementation and payment are not carried out within the framework of a single administrative structure, the SAPARD agency may delegate them to other parties, unless compliance with this section of article 14 of the points 2.3.1 to 2.3.8. the conditions laid down. However, the payment function and commitment and payment tracking feature described in the given sections 14.1.2 and 14.1.3. the article. in no case may not be delegated to another body. Project approval, physical checks and the payment process should be based on the appropriate separation of duties.
4. The Republic of Latvia shall ensure that the competent institution shall be submitted to the Commission for review all changes to the implementation of the SAPARD Agency and payment arrangements, which is recommended by the granting of accreditation, before such changes are made.
5. The Republic of Latvia provides that where the SAPARD Agency does not also carry out functions of the managing authority, set out in section 2 (B) (c). in the article, the SAPARD Agency is transferred to that institution of all the information necessary for the performance of its functions.
6. In relation to the investment in such infrastructure projects that usually bring significant net income before contracts with potential beneficiaries of the SAPARD Agency shall conduct an assessment to determine whether it really is the kind of project. In cases where it is possible to adopt an affirmative conclusion, the Agency shall ensure that the public funds from all sources does not exceed 50% of the total eligible costs.
7. In relation to the investment projects, with the exception of infrastructure investment projects and projects of the kind that has no significant net income, the SAPARD Agency shall ensure that the public funds allocated to the programme in total from all sources does not exceed 50% of the total eligible costs of the project. Training activities in the context of this paragraph are considered to be human capital and not for investment.
Article 6 tasks of the Certifying body 1. ensure that the certifying authority's tasks include: (a) the issue of the certificate on the annual accounts of the SAPARD agency as well as the SAPARD euro account, confirming the completeness, accuracy and veracity of the accounts, (b) annual reports of the SAPARD Agency in the management and control system in compliance with the terms of their ability to ensure the eligibility of expenditure in this section 7 (1) article, (c) verification of this section 8 (2) the national co-financing referred to in article the existence and correctness of the element.
2. The certifying body is a Department or body which operates independently of the SAPARD Agency and which has the appropriate technical education.
3. the certificate referred to in paragraph 1 is issued, on the basis of the procedures and of the individual transactions. Check the compatibility of a given Contract payments in relation to the SAPARD Agency and the National Fund's administrative structure able to run to, before payment, this conformity is properly verified.
4. Paragraph 1 (b) the report confirms that: (a) the SAPARD agency procedures, especially in relation to article 4 of this section, article 5 and article 14 sets out criteria and functions, gives reasonable assurance that the operations that are required to finance the Program, meet the given agreement, as well as recommendations to improve the systems mentioned, (b) article 11 of this section of the annual report referred to in accordance with the SAPARD Agency's accounting data , (c) in article 9 of this section, and (D) the Declaration of expenditure referred to in section enough really, completely and accurately reflects the operation, which prompted the program's financing, (d) is adequately protected the financial interests of the community in relation to the amounts to be collected and, where necessary, guarantees issued (e) is introduced to the SAPARD Agency addressed recommendations on system enhancements, (f) the financial year has been any exceptional transactions or technical difficulties (g) since the last report there have been some significant modifications.
Together with a report being submitted information on the audit of the number and qualifications of staff, the work, the number of transactions examined, on the level of confidence gained on the established deficiencies and provide recommendations for improvement, and for Certifying authorities and SAPARD agencies of other internal and external audit bodies of the work carried out on the basis of which fully or partially reflected in the reports was gained in confidence.
5. The certifying authority shall perform testing in accordance with internationally accepted audit standards and guidelines set out in section E. In cases where the body is appointed by the national audit office or equivalent institution, it may delegate some or all of the checks referred to in paragraph 3 the tasks of other institutions, on condition that these tasks are carried out in full. In all cases, the overall responsibility for the performance of the tasks of the certifying body's stores.
6. Inspections are carried out both during the year and at the end of each financial year.
7. The National Executive shall ensure that the certifying authority annual report certificate and report on its findings to the audit referred to in paragraph 1, in particular, determine whether the institution has obtained reasonable assurance that the accounts to be submitted to the Commission are true, complete and accurate and internal control have worked satisfactorily. Certificate and report is drawn up at the latest to the following financial year in April 15, and the competent institution shall send them to the Commission at the latest by 30 April. (B) under article 7 that the Monitoring Committee receives a copy of the message.
Article 7 obligations and payments from the Commission side 1. Community co-financing is granted only SAPARD assistance granted in accordance with this agreement.
2. the Commission shall make contributions to the Community contribution to SAPARD euro account in accordance with the agreement referred to in article 2 of the annual financial agreements (contracts), provided that this section 9 checks referred to in article not found no problems. The National Executive shall report on the State of this account to the Commission in accordance with section D of form in the D3.
3. Payments are posted to the earlier commitment.
The Community budget commitments in respect of the Republic of Latvia are recorded in the accounts of the Commission, on the basis of a Commission decision which confirms each annual financial agreement.

The commitments usually are taken yearly. The first commitment to the Republic of Latvia are recorded in the accounts of the Commission, the adoption of a Commission decision, which confirms each annual financial agreement. Further commitments are taken each year by decision of the Commission, which shall approve each annual financial agreement. Each year is a fixed annual financial agreement.
4. the Commission shall automatically cancel the obligations: (a) in relation to the entire amount of any year, where until the end of the year is not signed annual financial contract;
(b) any part of the commitment for which no payment is made on account or for which the Commission has not received the payment request that contains all the items that it needs to make a payment in accordance with point 6 of the commitments to the year following the end of the second year.
5. If funds are available, the Commission shall make an initial payment to the SAPARD euro account. This payment, which can be done with more contributions, shall not exceed 49% of the amount of the grant laid down in the Republic of Latvia in the first annual Financing Agreement. The payment is made after the adoption of the programme, on condition that the SAPARD agency accreditation has taken place in accordance with this section 3 (1) the decision referred to in the article, and after the given contract and the first annual financial conclusion of the contract. If the Commission 18 months after the abovementioned date the initial payment is not received in accordance with article 9 of this section to determine the acceptable payment request, payment will be repaid in euros with the accrued interest.
In cases where the payment made in the account is less than 49%, the Commission may submit requests for additional payments on account, shall not exceed the overall limit, based on the amount of expenditure included in article 8 of this title (1) referred to in the second subparagraph of point in expenditure declarations, but not yet paid. If funds are available, the Commission shall make these payments account, reflecting the anticipated need.
During program execution, the National Executive uses the account contributions only cover the Community contribution to the expenditure incurred under the contract. Any interest which brings in contributions to the account are used only for Program purposes.
6. the Commission shall make the interim payments, other than payments on account to pay off in actual expenses incurred, certified by the National Executive in accordance with article 9 of this section. Such payments are calculated and made the program's financing plans reflect the level of the measures.
Payments are made under the following conditions: (a) the Commission has sent the last annual implementation report, which contains 8 of section B (5). the information referred to in article;
(b) the Commission has sent to the B section referred to in article 10, where the starpvērtējum message if the time has come;
(c) expenditure on measures conform to the programme, which it is appropriate to allow some flexibility between measures and within the limits of the Community contribution made under the annual financial agreement.
(d) the prescribed period has been taken B section 8 (3). the recommendations referred to in article marketing, or if these recommendations are for serious monitoring or management failures that undermine proper financial management of the programme, the Republic of Latvia has stated the reasons why such measures have not been taken; According to respond to all the Commission's requests to take remedial measures;
(e) account is taken of any under article 11 of this section and article 12 of the financial implications of the decisions taken;
(f) provide the information requested by the Commission, the need to clarify the essential elements of the payment request.
The Commission shall without delay inform the Republic of Latvia and the National Executive, that does not comply with any of these terms. Before the payment request is accepted, all necessary measures must be taken to remedy the situation.
7.5 and 6. payment referred to in paragraph 1, carried out under the programme, the total amount before in accordance with point 8 payments shall not exceed 95% of the Commission's commitment to the program.
8. the balance in the amount of the Aid shall be paid: (a) If the national competent authority within six months following the last annual financial agreement shall be submitted to the Commission in time to pay the actual, certified in accordance with article 9 of this section of the report the expenditure incurred;
(b) the Commission has submitted a final implementation report and the Commission has approved it;
(c) of this section have been adopted, article 11 and article 12 of these decisions.
Article 8 duties of the parties of the SAPARD Agency 1. Republic of Latvia provides that payments from the SAPARD Agency to the recipient: (a) are made in national currency and debited appropriately in the SAPARD euro account. The payment order to the beneficiary (beneficiaries) or its authorized representative (representatives) are usually issued within 3 business days of account debiting the amount, (b) based on the beneficiary's declared expenditure, which represents the original invoices or other supporting documentation, if, in accordance with the programme, assistance is not considered to be a function of expenditure. In these declarations must include only expenses that are made or, in the case when the help is not a function of expenditure, the events that had transpired at the earliest before the conclusion of the contract, under which the applicant became the beneficiaries of the project, excluding expenses related to the feasibility study and related studies, but they may under no circumstances be associated with the SAPARD Agency and the recipient or the name of the selected projects , contracted or costs that are paid before that section 3 (1) of Commission decision referred to in article. Where the SAPARD Agency does not bear upon receipt of the original invoice and other supporting documentation referred to in this subparagraph, the SAPARD Agency shall ensure that copies are removed and the appropriate arrangements that ensure the availability of the original audit and inspection.
2. the SAPARD Agency shall ensure that the Community contribution will occur simultaneously with any other public institution. However, in cases where the beneficiaries are from the public sector, the Community contribution may be made later than the public institutions of the Republic of Latvia.
3. the SAPARD Agency shall ensure that the total public expenditure of public institutions in the Republic of Latvia for each measure and project level is defined at the level of the SAPARD Agency.
4. the SAPARD Agency shall ensure each payment record, which includes at least the following information: (a) the amount in national currency, (b) the corresponding amount in euro.
Community contribution and the national public relations publications, as well as the total public expenditure of the overall eligible costs defined in national currency.
5. the SAPARD Agency shall ensure that any amount that, as it has been found to have inadvertently paid not in excess of the amount due, and which is included in the SAPARD euro account in statements of expenditure, 3 working days are recorded in the SAPARD euro account and subtracted from the next in this section mentioned in article 9 of the Commission requests for payment.
6. the SAPARD Agency shall ensure timely submission of the request for payment of the aid recipient. In cases where the time between the payment of the required source document receiving and discharge of the payment order exceeds three months, community co-financing may be reduced.
Article 9 the request for payment of the community 1. The SAPARD Agency on a quarterly basis, presented in accordance with the form contained in section D no D-1 completed payment request that national officer, approved and signed on behalf of the Republic of Latvia shall be transmitted to the Commission within one month after the end of each quarter. Additional requests may be submitted only if they are justified by the risk that the SAPARD euro account before the next quarterly application processing would expire.
2. The Commission shall verify the payment applications taking account of article 7 of this title, the provisions set out.
3. The Commission shall reimburse the expenditure declared the request for payment of two months after receipt of an acceptable payment request, provided that: (a) this section 7 (6) article and, where necessary, 7 (8) the checks referred to in article not discovered any problems;
(b) is not a decision on the suspension of payments measure (measures), referred to the given application;
(c) assigned funds are available.
Article 10 exchange rate and interest 1. ensure that the established exchange rate between the euro and the national currency of the Republic of Latvia is the European Central Bank's currency exchange rate, which it published on the internet at. 14.15 central European time after: (a) payments from the SAPARD Agency, the penultimate Commission working day of the month preceding the month in which the expenditure was taken to the SAPARD Agency's accounting. The date on which the payment order is issued to the beneficiary or its authorized representative is the registration date;
(b) the products made from the SAPARD agency overpayment rate is applied to the penultimate Commission working day of the month preceding the month in which the overpayment was first diagnosed;

(c) the amounts, which are recorded to the account balance as a result of the comparison, and in accordance with decision after screening — a course the penultimate Commission working day of the month preceding the month in which the decision was taken;
(d) receivables that were recovered in accordance with this section 14, article 2.8 exchange rate the penultimate Commission working day of the month preceding the month in which the debt was recovered;
(e) in accordance with article 13 of this section revealed discrepancies, a course the penultimate Commission working day of the month preceding the month in which a given amount had been recovered;
(f) the SAPARD Agency's account (account) for the interest rate earned on the date when the interest is credited to the account, which must take place at least once a month.
If the day is not a published rate is used in the last published work day rate.
2. In the cases in this section are not complied with article 11 and article 12 of that decision, the time limit laid down, any debt amount is accrued interest at a rate equal to the Euribor rate for three month deposits published by the European Central Bank, plus 1.5% points. This rate is considered the monthly average rate for the month in which the relevant decision is taken.
3. ensure that the SAPARD euro account, accrued interest are used exclusively for the purposes of the program. Accounts relating to the maintenance of the SAPARD the SAPARD Agency, brings interest in accordance with generally accepted commercial practice. Interest earned by the community's contribution to the related accounts are also used only to programme objectives, and not to any charges or taxes. Any interest attributable to the Community contribution is in addition to annual financial amounts laid down in the Treaty and considered the further community input.
The program changes are made in accordance with article 7 of section B.
Article 11 of the decision after the account balance comparison 1. ensure that the national competent authority no later than the year following the year to 30 April of the SAPARD Agency shall submit to the Commission the annual accounts together with article 6 of this section (1) the information on the SAPARD Agency and the National Fund, related to the transactions financed Programs.
2. the report referred to in paragraph 1 shall be submitted using the form contained in section D D2.
3. The relevant month expenditure declared must be linked to payments, net of any revenue.
The payment date will be the date on which the SAPARD Agency has sent payment order financial institutions or to the beneficiaries or their authorized representative. The corresponding revenue date is the date on which the amount is registered in the account.
Declared expenditure may be part of the same financial year preceding months adjustments data reported.
The financial year in question is to be taken into account in all the transactions in the current financial year are recorded in the accounts of the SAPARD Agency.
4. in cases where the programme will be difficult for claims payments, the first subparagraph of paragraph 3 means it is believed that they have been carried out in full: recipient of the entire amount, payment date, if the claim does not exceed the paid expenses — expenses payment date, if the expenses are less than or equal to the claim.
5. The pending payment orders and account debited payments which then is again credited to the account Form D2 appear as deductions from expenditure in the month in which the SAPARD Agency has reported on the payment order execution or not.
6. At the latest to the following financial year in September 30, the Commission shall, on the basis of the information referred to in paragraph 1, shall take a decision by the SAPARD agency account balance reconciliation (hereinafter "decision after comparing account balance").
The decision by the account balance includes the comparison of testing on the report submitted by you on the completeness, accuracy and veracity and without prejudice to further decisions after the screening in accordance with article 12 of this section.
Decision on the account balance comparison also includes balance in the SAPARD euro account, and in accordance with this section 13 (2). Article and 14 (2.8). article in the SAPARD euro account shall be credited the amount of the check.
7. The Commission shall notify the Republic of Latvia submitted the information the test results as well as its proposed amendments to the financial year at the latest, the following July 15. If the Republic of Latvia-related reasons, the Commission cannot take the balance of accounts of the Republic of Latvia, at the latest by comparing 31. septmebr, the Commission shall notify the Republic of Latvia on the research process, which it recommends.
8. Account balance comparison result not found in corresponding amounts typically are added to or subtracted from subsequent Commission payments in the Republic of Latvia. However, in cases where the account balance comparison results in a deductible amount exceeds the possible subsequent payments, national officer for the Republic of Latvia, shall ensure that the balance does not cover the amount to be credited to the Commission in euro within two months of notification of the decision in question. In some cases, however, the Commission may decide that it is possible to be credited the amount to deduct from payments which the Commission has taken in the Republic of Latvia of any financial instruments of the community.
Article 12 Decisions by screening 1. the Commission shall adopt a decision (the "decision after screening") on exclusion from Community co-financing where it finds that expenditure has not been made according to the given contract 2. in cases where research results, the Commission considers that expenditure has not been effected in accordance with the terms of this agreement before the adoption of the decision on adequacy so notified in writing to the national official responsible for the results of the inspections and corrective measures to be taken to ensure the fulfilment of the conditions in the future. Where it is appropriate, in the notice are given references to the relevant multi-annual financing agreement for this article, application, this section 3 (1) the decision referred to in article 1 and the annual financing agreements (contracts).
3. The National Executive shall respond in writing within two months, and these responses the Commission may modify its position in consequence. In justified cases the Commission may extend the response time.
After the submission of the reply given by the end of the period, the Commission shall invite the Republic of Latvia on bilateral negotiations, and both sides are trying to agree on the measures to be taken and the seriousness of the infringement and the financial loss to the community. After these conversations and the time-limits laid down by the Commission after a call for further information, or if Latvia does not accept the invitation to the talks before the deadline set by the Commission, after this period has elapsed, the Commission officially announces their conclusions to the Republic of Latvia.
If no agreement is reached, the national officer for the Government of the Republic of Latvia may ask to initiate the procedure laid down in paragraph 9 of section F, with the goal of four months to try to reconcile the positions with the help of mediators. The results of this process are set out in the report of the conciliation body shall be prepared in accordance with paragraph 9 of section F. The message is sent for review by the Commission before the decision is taken after the screening.
4. the Commission shall evaluate the amounts to be excluded from the financing, in particular paying attention to the degree of non-compliance found. The Commission shall take into account the nature and gravity of the infringement, as well as the financial loss suffered by the community.
5. a refusal to finance may not involve expenditure in the event that the final payment was made in the 24 months preceding the Commission's written notification referred to in paragraph 2 the results of the national officer. This is not true for the financial consequences in connection with article 13 of this title referred to discrepancies. In cases where the checks referred to in the required text is not available in English, the period is extended for the time elapsing between the moment when the Commission requires documentation in English, and their reception.
6. in cases where the SAPARD Agency does not correctly created or implemented controls can be made of the financial correction, which may include adjustments by the same fixed rate, which is proportional to the amount of financial risk of the community.
7. Amount repayable in accordance with the decision taken by the evaluation of conformity is notified to the national officer, which the Republic of Latvia provides the amount of lending to the SAPARD euro account within two months after the adoption of the decision and its deduction from the next payment requests to the Commission. In some cases, however, the Commission may decide that it is possible to be credited the amount to deduct from payments which the Commission has taken in the Republic of Latvia of any financial instruments of the community.
8. In accordance with decision after screening of the amounts refunded are not assigned to the new program.
Article 13 non-conformity and control conditions to 1. Without prejudice to the provisions of this agreement, the Republic of Latvia in accordance with the laws, regulations or administrative decisions laid down in the national provisions, take the necessary measures to:

(a) ensure that the operations financed under the programme has really taken place and properly executed;
(b) prevent and resolve discrepancies;
(c) recover or negligence on forfeited amounts.
The Republic of Latvia shall inform the Commission of the measures taken in this regard and, in particular, of the administrative and judicial procedures.
2. Paragraph 1 (c) the amounts recovered, concerning the Community contribution to SAPARD agency accredited the tenement, and agency and deducted by them from the expenditure financed under the programme.
3. The Republic of Latvia provides the Commission with access to all information necessary for the application to work properly, and take all necessary measures to facilitate the supervision which the Commission considers necessary for the administration of Community financing, including within the framework of physical control.
4. authorised representatives of the Commission, which would mean the checks, have access to and be deemed all other documents, including electronic form created or stored information related to expenditure financed by the programme.
These may in particular verify: (a) whether administrative practices comply with the provisions of this agreement;
(b) whether the required source document exists and whether they coincide with the transactions financed Programmes;
(c) the circumstances in which it is carried out and checked in transactions financed.
The Commission shall inform the Republic of Latvia before the tests. These checks may also participate in officials of the Republic of Latvia.
5. At the request of the Commission and with the consent of the Republic of Latvia in the given transaction referred to in the Treaty, inspections may be carried out in the institutions of the Republic of Latvia.
Such checks, Commission officials may participate.
6. Without prejudice to paragraphs 1 to 5, in connection with irregularities and the organisation of an information system in this field is used by the Republic of Latvia (F) under paragraph 4, 5, 6 and 7 of the rules.
Article 14 the SAPARD Agency and the accreditation criteria of the Republic of Latvia provides for the realization of the SAPARD Agency and the following criteria: 1. the facility 1.1. Commitments and payments: the objective of this function is to determine the amount payable by the applicant or his authorised representative (representatives) in accordance with the conditions of performance of the contract, in particular conditions applicable to the assessment of compliance with the request for approval of payments and requests for payment, compliance with commitments taken in the context of the approval of projects, tendering and contracting procedures, and perform the work and services provided.
1.2. Execution of payments: the objective of this function is the issuing of an instruction to the Agency's bankers, or, where appropriate, the payment of the Government authority, the approved amount to be paid to the applicant (or their authorised person (persons)).
1.3. accounting for commitments and payments: the objective of this function is the commitment and payment of accounts in separate cost accounting of the SAPARD Agency books, which are usually made using an electronic data processing system, as well as a summary of periodicals, including the periodic and annual get return preparation for submission to the Commission. Accounting books must also reflect the details of the debt to be collected.
1.4. Control: the objective of this function is to obtain assurance about the facts, which are based on the application and the request to verify their compliance with the conditions of performance of the contract and the conditions of the commitment between the SAPARD Agency and the beneficiary. The following controls, which may be included before-project selection, inspection, inspection of the revaluation of goods or services provided, the quantity and quality of analysis or random control before payment checks-and all the other special conditions in the execution of the contract given to the eligibility of expenditure. To determine compliance, control, which may include the inspection of technical nature relating to economic, financial assessment and specific agricultural, technical or scientific nature.
1.5. Reporting: the objective of this function is to ensure accountability to the individual projects and the implementation of the measures in a manner that helps to ensure the effective and rational implementation of the measure.
2. criteria 2.1. The SAPARD Agency's administrative structure shall provide three functions: approval, payment and accounting separation function. Each function must have a separate administrative unit, whose duties are defined in the organizational scheme.
2.2. the SAPARD Agency shall adopt the following procedures or procedures that provide equivalent guarantees: 2.2.1. The SAPARD Agency shall draw up a written procedure validation project applications, payment request, invoice and justification document and control messages, registration and processing, including a description of all documents to be used.
These procedures ensure that processes only the project selection criteria according to the payment request or selected projects, and ensure the existence of the case of the project, which will include all the project audit necessary documents.
2.2.2. the responsibilities are distributed so that no one person not at any time be liable for any project in more than one of the areas of responsibility — the project approval, payment, payment is made or the amount in the accounts. Each officer's work, performing any of these tasks, monitors the other officer. Each officer's responsibilities are defined in writing by the authority in determining their financial limits. Staff must be properly trained, and must have created a staff rotation policy in certain sensitive positions, or have increased surveillance.
2.2.3. for each officer, responsible for the approval, it shall be a detailed checklist that lists the checks to be carried out, as well as request justification documents reflect the assurance that these checks have been carried out. Such proof can be made in electronic form, subject to the provisions set out in subparagraph 2.2.6 control conditions.
Must be evidence that the work is verified by a higher rank officer. Project analysis, evaluation and approval must be evidenced in writing. Project analysis must be carried out according to the safe and effective management principles.
2.2.4. an application/request is confirmed only after sufficient checks have been made to make sure that it complies with the conditions of performance of the contract. Such inspections include checks required by the rules governing the specific measure under which aid is requested, as well as the checks necessary to prevent and detect fraud and irregularities, especially in relation to certain risks.
Approval of applications under the function is carried out tests that determine whether the conditions have been met, eligibility criteria, or completely submitted, check the accuracy of the source document, the date of receipt.
All checks to be carried out are laid down in detail in the checklist, and each application/request or application/request packet is authenticated it.
In connection with the services/goods supplied, the control should include: — the documentary control: to ensure that the data shown in the invoice for the goods or services of the quantity, quality and price corresponds to the order data.
— Physical control: to ensure that the quantity of goods or services, quality and price corresponds to the invoice/request form shows the data.
This control can also be performed several times during the performance of services, i.e. when the original payment or an interim payment.
2.2.5. Procedures should ensure that payment is made only to the requestor to its bank account or the person authorised by the applicant. Payment shall be made in servicing the bank or the Agency where it is appropriate, a governmental payments Office, or the cheque is sent by post, usually within 3 working days after debiting of the amounts in the SAPARD euro account.
All payments for which transfers are not made are credited back to the SAPARD euro account within 3 working days after notification of the failure.
Amounts relating to cheques that are not cashed until their expiry date are credited to the SAPARD euro account within 3 business days of notification about it.
Payments in no case take in cash. Officers and/or the approval of his superiors may be carried out electronically, provided that these electronic means is to ensure the appropriate level of security and the signer's identity is electronically registered.
2.2.6. If the application requests or invoices are processed using a computer system, access to the computer system shall be protected and controlled in such a way as to: (a) all the information entered in the system are properly validated to ensure that input detection and correction of errors, as well as to perform logical tests to detect inappropriate or unusual data,

(b) no one, except in duly authorized officials who have been granted individual passwords, can make data entry, modification or approval, (c) the identity of each official who enters or modifies data or programs recorded the operation log, (d) passwords should be changed regularly to avoid abuse, (e) before the changes are tested and approved by any hardware or software changes, i.e., they must be subjected to a change management procedure (f) computer systems with the help of physical checks must be secured against unauthorized access, and create backup copies of the data to be stored in a separate, secure location, (g) with the help of logical tests must be carried out data entry test to detect inappropriate or unusual data.
Based on the information and communication technology strategy, to develop a comprehensive information technology security policy to ensure that all the data confidentiality, integrity and availability.
2.2.7. Procedures should ensure that changes are recorded in the amount of assistance or help change conditions and the instructions, databases and the checklist is updated in a timely manner.
2.3. Part of approval and control functions may be delegated to other bodies provided that the following conditions are met: 2.3.1. obligations of these other bodies, in particular in relation to the control and approval of compliance with the conditions of performance of the contract are clearly defined.
2.3.2. the institution uses an effective system to ensure the satisfactory performance of his duties.
2.3.3. the institution clearly attests to the agency that they actually meet their obligations, and describes the means used.
2.3.4. the SAPARD Agency is informed on a regular and timely basis of the results of controls effected, so always, before approval of payments, or the invoice is paid, you can count on the adequacy of controls. The work is described in detail in the report, which is attached to each application and the request, application and request packet or, where appropriate, reflected in the annual report. The message is added to the receipt of the approved application and demand compliance with the criteria for receiving assistance, and a description of the nature of the work done, the scope and limitations. Shown are made physical and/or administrative controls, describe the methods, reported on the results of all inspections and the mismatch and results in non-compliance with the measures taken. The accompanying documents which are submitted to the Agency must be sufficient to ensure confidence that has made all the necessary checks on the increased demand for payment or invoice for the compliance with the conditions for receiving assistance.
2.3.5. before the project approval and before the grant of aid to the SAPARD Agency must be satisfied that the other institutions have followed the criteria set out in this article, the appropriate procedures.
2.3.6. Must be clearly defined and documented application evaluation criteria and their priority order.
2.3.7. where documents relating to requests made to the approved expenditure and the controls, as well as with selected projects not keep other bodies, both these bodies and the Agency shall set up procedures to ensure that the location of such documents that are relevant to specific payments made by the Agency, to be established and that these documents are available for viewing on the premises of the Agency at the request of individuals and institutions, which usually are given such documents to view including: (i) the staff of the Agency, which processes the request;
(ii) the Agency's internal audit service, (iii) the certifying body that checks the Agency's annual declaration, (iv) duly authorized agents or representatives of the community.
2.3.8. the SAPARD Agency and bodies, which are delegated to the SAPARD Agency functions, must be concluded in writing. Such contracts must clearly define the functions that the authority is delegated and the SAPARD Agency at certain times of the accompanying document and send messages. General system, including other bodies delegated functions, should reflect the organizational scheme.
The agreement is to ensure the community duly authorised agents or representatives access to information held by the institutions mentioned above and that these officials are required to make application testing, including project and the beneficiary.
2.4. Accounting procedures shall ensure that the declarations of expenditure presented to the Commission would be complete, accurate and timely and to all errors and discrepancies are detected and corrected, in particular time intervals, not exceeding three months, through periodic checks and comparisons. To provide a full audit evidence chain each accounting entry reflected.
The SAPARD Agency's accounting procedure shall ensure that the accounting system can provide information on the euro and the national currency, for each regional administration, project, contract or measure/sub of the assign total costs under expenditure sections and the remaining payments. You must define the deadlines for cancellation of obligations, if the work is not completed within the time limits previously agreed. Such cancellation must be adequately reflected in the accounting system.
2.5. the SAPARD Agency shall ensure the internal audit service or the equivalent service exists, in order to ensure an effective internal control system of the Agency. The internal audit department is independent of the other departments of the Agency and reports directly to senior management of the Agency. The internal audit service shall verify that the procedures adopted by the Agency are sufficient to ensure confidence in the compliance with the conditions of performance of the contract, and that the reports are accurate, complete, and timely. The test may be limited to certain measures/sub-measures and samples of transactions provided that an audit plan ensures that all critical areas, including the approval of the responsible Department/institution and the institution which is delegated some functions, check at least every three years. The internal audit service's work is carried out in accordance with internationally accepted audit standards, it was recorded in the working documents, and as a result are drawn up reports and recommendations to the senior management of the Agency. Audit plans and reports are available to the certifying institution and community agents or duly authorised representatives to carry out financial audits or simply assess the effectiveness of the internal audit function.
2.6. The national authorities in relation to the provision of services, the performance of the work and supply orders in Latvia are harmonised with the instructions laid down in the Commission manual "service, supply and works contracts that are concluded within the framework of Community cooperation with third countries ' 4, except the requirements in relation to the ex-ante (prior) approval from the Commission.
2.7. the following purchases that are not discussed in paragraph 2.6., to be community or section F, paragraph 8 national origin: (i) the services, works, machinery and supplies;
(ii) supplies and equipment, from work or service carried out in the frame of the agreement if the delivery and kontraktor hardware at the end of the performance of the contract becomes the property of the project.
2.8. In relation to the application, the Agency shall set up a system for the recognition of all amounts due and the amount of all such debt, including debtor, registration of the ledger before debt collection. The debtors Ledger is kept in check, to take steps late payment of debts, especially the issued guarantee and refund payment collection. Without prejudice to article 8 of this section (5) the conditions or the national rules relating to recovery of debts, the financial contribution that is required of the community in relation to these amounts, including the non-conformities are scrapped at the end of the second year following the registration of the debtors ledger of amounts and deducted from the next payment request, referred to in article 9 of this section. Any SAPARD agency recovered the interest applicable to the Community contribution in relation to recover debts, are being filed by the SAPARD agency account (accounts) and use only the objectives of the programme. The SAPARD Agency shall ensure that any amounts recovered are credited to the SAPARD euro account within 3 working days after recovery.
2.9. the SAPARD Agency shall communicate information about available assistance, with reference to the Community contribution, all potential project managers/performers to achieve the widest possible range of potential Manager/artist, the selection of the arc. Before the commencement of this scheme are standard application forms with instructions for completion and the eligibility criteria for candidature for assistance. For information, including the application form for the program, from the potential beneficiary or beneficiaries of the fee is not required. This does not in any way prevent national conventional fee request.

2.10. the SAPARD Agency shall ensure timely processing by the recipient application.
2.11. the SAPARD Agency shall establish an appropriate system to report on each project and measure progress in comparison with the previously set indicators. Where appropriate, these indicators, with the Monitoring Committee and the approval of the Commission, are recycled.
2.12 where delayed a predefined plan, to take certain steps, including, where appropriate, removing the project approval. All steps should be taken.
2.13 to quickly be able to draw up the relevant reports on projects and events, you must use the appropriate management information system. These reports must, upon request, be made available to the managing authority, the Monitoring Committee and the Commission.
Article 15 records the SAPARD Agency and the National Fund stores all documents, including documents related to the selected projects, ensuring their availability to the Commission by this section 12 (5). Article 24-month period referred to in the end. However, for 12 (5). Article and article 13 of the above discrepancies are provided access to documents the Commission up to the end of all further work.
The Agency and the National Fund shall ensure that, if they themselves do not store these documents, these documents are available in the period available to the Commission.
4 SEC 1999 http://europa.eu.int/comm/scr/tender/usedoc/index URen.htm 1801/2 on section B programme management, monitoring and evaluation article 1 scope This section of the programme management, monitoring and evaluation rules. The Republic of Latvia shall ensure compliance with these provisions.
Article 2 definitions for the purposes of this agreement (a) "priority" means one of the most important needs for which it is recognised that there is a need for help, in order to achieve the objectives of the strategy adopted in the programme;
(b) "Sub" means the measures making up the components, which can also have their specific objectives;
(c) "managing authority" means the Republic of Latvia would mean a public or private institution or agency, or unit, or Department which may either belong or not to belong to the SAPARD Agency, whose task is to gather information on the monitoring and evaluation of the programme, and provide the information to the Monitoring Committee and the Commission.
3. Article 1 of the Cooperation Programme is being implemented in close collaboration between the Commission and the Republic of Latvia, the Republic of Latvia, together with their appointed authorities and institutions, in particular: (a) any type of regional and local authorities and other competent national authorities;
(b) the economic and social partners;
(c) any other relevant competent bodies.
2. cooperation shall take place in full under the respective institutional, legal and financial powers, which are given in accordance with paragraph 1, their appointed authorities and institutions.
To achieve the broadest possible cooperation at national, regional, local or other level, the Republic of Latvia shall ensure broad and effective structure corresponding to all the institutions and participation in accordance with national legislation and established practice in the country, taking into account the need to promote equality between men and women and sustainable development through the integration of environmental protection requirements.
All the designated parties, hereinafter referred to as "partners", in respect of the objectives of the programme.
3. cooperation covers financing, implementation, monitoring and evaluation. The Republic of Latvia to ensure adequate participation by partners in progress program.
Article 4 eligible expenditure 1. expenditure complies with community support under SAPARD is only if parallel, that they comply with the provisions of this agreement, the SAPARD aid is used in accordance with the safe financial management principles and, in particular, the principles relating to the efficiency and cost effectiveness.
Conditions apply on eligible expenditure, which clearly defined for each measure a standard contract (contract) project, which issued the SAPARD Agency to beneficiaries. The Commission shall inform the Republic of Latvia, on whether or not it is accepted by the proposed rules within three months of their receipt, but no later than until the adoption of a Commission decision, which the Administration is entrusted to the Agency, as defined in section A of article 3, paragraph 1, and without prejudice to that decision.
2. Unless the Commission specifically and expressly provides otherwise, the following expenditure shall not be under the community co-financing of the programme: (a) land and existing buildings, the purchase, hiring or leasing, regardless of ownership or leasing results are passed on to the lessee;
(b) Tax, customs and import duties where: (i) is recoverable, be repaid or compensated in any way, (ii) do not belong to the Republic of Latvia, the overall tax system, (iii) the impact on the disproporcionāl one of the parts of the programme.
(c) operating costs, including maintenance and rental costs;
(d) lease, unless the lessee as a result of ownership are passed on to the lessee;
(e) any services, supplies and work costs, which exceed 5700 lats, for which the beneficiary has received quotes from at least three suppliers that offer original adding statements of expenditure referred to in article 8 (A) of section (b) above;
(f) bank charges, costs of guarantees and similar charges (g) Conversion costs, charges and exchange losses, related to the SAPARD euro account, (h) the costs incurred by public administration, including the SAPARD Agency and, in particular, the General costs, rent and employee salaries, which performs management, implementation, monitoring and control;
(i) that part of the costs associated with the architects ', engineers ' and consultants ' fees, legal services, technical economic justifications, the acquisition of patents and licences, project preparation and/or implementation, directly linked to the measure in excess of 12% of the total eligible project costs;
(j) expenditure related to the goods or services that do not comply with A section of article 14 of the 2.6 and 2.7. the conditions referred to in points;
(k) costs associated with the projects, as a result, before the completion of the project encountered a user or member fees and the amounts involved have not been deducted from eligible expenditure;
(l) the advertising costs that do not meet the common interest.
3. The following eligibility of expenses is possible only when the Commission has carried out case studies and made a decision that is taken within a period of three months from the date on which the Republic of Latvia submitted to the Commission full justified request: (a) payments in kind;
(b) expenses for the purchase of second-hand equipment;
(c) the infrastructure related expenses that are incurred by the recipient in cases where more than 25% of the capital owned by State institutions, or institutions.
4. in cases where this is specified in the program, the Republic of Latvia with regard to specific measures to ensure that the project continues to meet community co-financing only if a period of five years from the SAPARD Agency received the last payment, are not substantially modified. Any significant modification of the draft are the modifications that: (a) make an impression on its nature or its implementation conditions or gives any company or public institution of improper advantage; and (b) occurs either due to a change in the nature of ownership of infrastructure or the cessation of production activities co-financed or location.
When the Republic of Latvia found this modification, it shall immediately notify the Commission of them.
5. No project, which the authorities of the Republic of Latvia, including the SAPARD Agency, have taken some deductions, deductions or further specific to the SAPARD related deductions that reduce the amounts that have been paid or payable to the beneficiary, not as co-financing. However, the SAPARD agency may make such deductions from payments to: (a) the outstanding amount of the excess that they received under the programme beneficiaries;
(b) the amount that the beneficiaries of aid should be released due to the fact that they have not complied with the conditions relating to the payment of those previously carried out under the programme, the SAPARD Agency.
Article 5 the managing authority 1. meaning of the managing authority, which, without in any way limiting the provisions contained in section A, is responsible for the monitoring and evaluation of the programme coordination and reporting efficiency and accuracy. The managing authority shall advise the SAPARD Agency for the implementation of all related matters.
2. the managing authority shall, in accordance with this section 6 to article 11 establishes the financial system and the collection of statistical information on the program, if such a system assumes the SAPARD Agency, and provide the information to the Monitoring Committee in accordance with the procedure previously agreed to by the Republic of Latvia and the Commission, where possible, through a computer system that enables the exchange of data with the Commission.

3. the managing authority shall provide the Commission with proposals for corrections in after consultation with the SAPARD Agency in cases where it does not belong to the SAPARD Agency, and in agreement with the Supervisory Committee.
4. the managing authority shall prepare and, after consultation with the SAPARD Agency in cases where it does not belong to the SAPARD Agency and after approval by the Monitoring Committee to submit to the Commission the annual report on the progress of implementation;
5. the managing authority, in cooperation with the Commission and the Republic of Latvia to organize the starpnovērtējum referred to in article 10 of this section.
6. the managing authority is the institution which is responsible for ensuring that the appropriate authorities are aware of the need to make the corresponding changes to administrative cases, when such changes are necessary, in accordance with Commission decision on changes to the program.
7. the managing authority shall each year in accordance with the recommendations of the Monitoring Committee to advise and inform the Commission of the measures and initiatives provided related to the general public information on the implementation of the programme and its results has been the role of the community.
Article 6 monitoring and monitoring indicators 1. the SAPARD Agency and the managing authority, regardless of whether it includes or does not include the SAPARD Agency shall ensure effective monitoring of the implementation of the programme and shall report to the Monitoring Committee and of the measures, if any, of the implementation of the principle. The Commission shall examine these reports and, if necessary, prepare recommendations on necessary improvements.
2. Surveillance is carried out according to the physical, environmental and financial indicators, and include data that shows that the Community funds are not replaced in the Republic of Latvia of the available funding. These monitoring indicators relating to the investment in the program and the results achieved, are appropriate to the specific nature of the assistance concerned, its objectives and social economic, structural and environmental situation in the Republic of Latvia.
7. Article 1 of the Monitoring Committee the Monitoring Committee establishes the Republic of Latvia, in agreement with the managing authority and, if the managing authority not within the SAPARD Agency, on the SAPARD Agency, and after consultation with those referred to in article 3 in the section partners program to carry out supervision.
The Monitoring Committee is usually established within three months from the date of approval.
2. In the work of the Monitoring Committee in an advisory capacity, participate in Commission representative (or representatives).
3. The Monitoring Committee shall, in consultation with the managing authority, the SAPARD Agency and the Commission to prepare its rules of procedure. These rules of procedure are accepted by the Monitoring Committee's first meeting. If necessary, the Monitoring Committee can change them. Previously such changes should be notified to the Commission.
The Chairman of the Monitoring Committee "means the Republic of Latvia. The designated person shall occupy the post of the SAPARD Agency.
4. The Monitoring Committee shall ensure that the programme takes place in the effectiveness and quality of the programme is assured and that the specific objectives.
5. the Supervisory Committee shall examine and give their conclusions on the criteria for each event and the selection of projects for sequential marshalling. In those cases where the verdict is delivered in time to take it into account in article 3 (A) of section (1) above the Commission decision, this decision may be reviewed to take account of the conclusions of the Monitoring Committee, which must be given and notified to the Commission either within one month from the date of adoption of this decision or one month after the date of the establishment of the Committee, in the later of those two dates.
6. the Supervisory Committee shall review periodically the progress made in the achievement of the objectives set. To perform this task must ensure: (a) information about any sector that is experiencing difficulties finding outlets at Community level;
(b) information on the results of controls effected; and (c) approved and non-approved list and characteristics of the projects.
7. The Monitoring Committee shall examine the results of the programme, in particular, to what extent have the various activities objectives pursued, and what progress has been achieved and these measures, those measures within the financial allocation awarded to Sub-measure, in cases where a program includes the following financial appropriations. In this context, the managing authority shall ensure that all the relevant information about the event and, where applicable, the implementation of the principle of progress achieved would be transferred to the Supervisory Committee.
8. the Supervisory Committee shall check this section of the starpnovērtējum referred to in article 10.
9. the Supervisory Committee shall examine and approve the annual and final implementation reports before sending them to the Commission.
10. the Supervisory Committee shall examine and, where necessary, adopt any suggestions to the Commission to amend the program.
11. the Committee may, through the managing authority to propose to the Commission any corrections or revisions in the program, which could contribute to the achievement of the objectives of the programme.
12. The Monitoring Committee shall, after consultation with the managing authority, the SAPARD Agency, if it does not fit in the Agency and the competent authorities to improve the implementation of the programme, propose to the Commission any adjustments to the program or its revision.
13. when the program asks for opinions on an issue, the Monitoring Committee shall take appropriate action.
Article 8 annual reports and final reports 1. ensure that the managing authority after consultation with the SAPARD Agency in cases where it does not belong to this agency, and six months of implementation of each end of the calendar year to provide the Commission with annual reports on the progress of implementation.
Before sending the Commission annual report on the implementation of verified and validated by the Monitoring Committee.
2. when the Commission has received the annual report on the progress of implementation, the two months reported if the message is considered unsatisfactory, giving reasons; otherwise, it is considered that it has been accepted. The final report, the Commission gives an answer within five months from the date of receipt of the report.
3. Each year when the annual report is submitted on the progress of implementation, the Commission and the managing authority and, as appropriate, the SAPARD Agency, reviewed the main results achieved in the previous year. The Commission shall consult with the managing authority and, as appropriate, on the SAPARD agency procedures that you need to develop to be able to prepare such a report.
If the Commission for the Republic of Latvia your comments after you have reviewed the results of the previous year. It shall inform the Commission of the measures which have been taken in response to these comments. In cases where the Commission, without prejudice to the decisions adopted in accordance with (A) sections 11 and article 12, the Republic of Latvia expresses its recommendations for adjustment measures to be implemented to improve the monitoring of the programme or the effectiveness of management actions by the Republic of Latvia to inform the recommendations that have been made to improve the monitoring or management arrangements or explain why such steps are not taken.
4. the final report will be submitted to the Commission at the latest six months after the last date when the program has been justified.
5. All annual and final reports must include the following information: (a) any change in the General conditions which are associated with the implementation of the programme, in particular the main socio-economic trends, changes in national, regional or sectoral policies, and, where appropriate, the impact on the match between SAPARD assistance and help that comes from any of the other financial instruments;
(b) priorities and measures progress related to the implementation of the programme's objectives are achieved, the specific objectives of the programme, in terms of physical indicators and Program indicators that show the results achieved and the impression of numerical sizes when and where they are expressed in numerical sizes;
(c) the measures taken by the managing authority, in appropriate cases, the SAPARD Agency and the Monitoring Committee to help ensure the quality and effectiveness of implementation, in particular: (i) monitoring and surveillance measures, including data collection arrangements;
(ii) a summary of any significant problems encountered in the course of implementing the programme and any measures, including action taken in response to recommendations on adjustments in accordance with paragraph 3 of this article;
(iii) technical assistance;
(iv) measures taken to ensure publicity of the programme;
(d) the steps to take to ensure all C section referred to in article 1 of the Community pre-accession assistance coordination;
(e) financial tables that reflect the costs of the measures and, where appropriate, Sub-measure.
Article 9 evaluation principles to evaluate programs 1 effectiveness, be starpizvērtējum and ex post evaluation to assess its impact on program objectives and analyze its structural consequences.
2. the effectiveness of the measures be evaluated according to their overall impact on the following areas:

(a) to contribute to the implementation of the acquis communautaire concerning the common agricultural and related policies;
(b) the priority and specific problems in relation to the agricultural sector and rural areas sustainable adaptation in the Republic of Latvia;
(c) the objectives of the programme.
3. assemble the necessary resources and collect the data necessary to ensure that the evaluation exercise in the most effective manner. In this context, the course of the evaluation is used in different specific parts obtained by surveillance measures, where necessary, supplementing it with additional information in order to collect more information.
4. the evaluation carried out by independent evaluators.
5. Starpizvērtējum and ex-post evaluation is carried out by providing answers to common evaluation questions defined in the Commission, in consultation with the Republic of Latvia, and in addition to these answers usually used to achieve results focused on criteria and indicators. In addition, the evaluation can be carried out, in addition to answering specific questions related to the objectives of the programme concerned.
6. evaluation reports shall explain the methods used, including information and open assessment of data quality.
7. the quality of the Evaluation and shall assess the consequences of the managing authority, the Monitoring Committee and the Commission.
10. Article Starpnovērtējum 1. The Republic of Latvia, in the light of article 9 of this section, the rules ensure that the starpnovērtējum is carried out, which would verify the initial results of the programme, their consistency with the ex-ante evaluation, the importance of the objectives and the extent to which these objectives have been achieved. It should also assess the quality of monitoring and implementation.
2. the Starpnovērtējum should be taking responsibility for it to the managing authority, in cooperation with the Commission and the Republic of Latvia. It must be submitted to the Monitoring Committee in accordance with article 7 of this section (8) point and must be sent to the Commission three years after the date of approval of the application, but not later than 31 December 2003.
3. in addition to article 9 of this section (7) of the above assessment, the Commission assessed the findings stemming from the evaluation, with the aim to review the program.
4. Starpnovērtējum, if necessary, will be adjusted and submitted to the Commission no later than 31 December 2005.
5. the managing authority shall inform the Commission of the additional measures have been taken in connection with the recommendations contained in the evaluation report, including any possible corrections.
Article 11 Ex-post evaluation Ex-post evaluation, for which responsibility rests with the managing authority, the Republic of Latvia, in consultation with the Commission. The basis of the evaluation results obtained, and in view of this section, the provisions of article 9, as well as in related matters, ex-post evaluation covering the use of resources and the effectiveness and efficiency of the program, its impact and compliance with the ex-ante evaluation. It covers the factors that contributed to the successful or failed implementation, the programme's achievements and results, including their longevity.
Ex-post evaluation is carried out in the course of the conclusions relating to the program.
Ex-post evaluation shall be completed no later than the end of the fourth year from the annual financial agreement.
 
(C) section general rules article 1 coordination with other instruments, the Commission and the Republic of Latvia shall ensure coordination between the programme, the pre-accession structural instrument (ISPA), the PHARE programme and the European Investment Bank (EIB) and the other financial instruments of international assistance.
The Republic of Latvia shall ensure that, in particular cases where a SAPARD project by its nature is such that it could fully or partially eligible for assistance in some other instruments referred to in the first paragraph, you avoid the risk that assistance is provided to cover several times. In the case of any such project, regardless of any other steps taken by the Republic of Latvia, the competent official under article 8 (A) all (b) referred to in the invoices received must be clearly stamped with the inscription "SAPARD" before it pays the SAPARD Agency.
Article 2 General the privileges of the Republic of Latvia provides that citizens of other countries that the authorities of the Republic of Latvia employed in particular in the work of the programme's objectives and their closest family members are given no less favourable conditions, privileges and immunities as those which are usually awarded to foreign nationals and their closest family members who work in the Republic of Latvia under any other bilateral or multilateral agreements or agreements on economic assistance and technical cooperation programmes. The provisions of this article do not grant diplomatic status to such employees.
Article 3 arrival, accommodation, entry conditions in the Republic of Latvia shall ensure that where contracts are concluded for all jobs, the supply of goods or services by natural or legal persons who are eligible to participate in the tendering procedures and the technical staff required to perform preparatory measures, would be given the opportunity to attend at the time and settle in the country. The following rights are granted, starting from the moment when the invitation to tender is issued, until one month after the time when the contractor is established.
The Republic of Latvia permit personnel who participate in the work of the programme execution, supply or service contracts, and their closest family members to enter the Republic of Latvia, to settle in this country, work there and leave this State, as determined by the nature of the contract in question.
Article 4 equipment and repeated removal of the Republic of Latvia, on time and without discriminatory fees, assign permissions that are required to be imported and then exported for the implementation of the programme the necessary equipment. It does not in any way affect the physical or legal persons, importing equipment, in order to benefit from a temporary admission system in relation to the above equipment.
5. article Import and foreign exchange control 1. to ensure the implementation of the programme, the Republic of Latvia undertakes, without setting different rules for Member States and (F) of section 8 of the above countries, to grant an import permit and a permit to buy foreign currency, and to apply the national exchange control regulations.
2. the Republic of Latvia, on time and without discriminatory payment of grants the necessary permissions repatriate funds received in connection with the programme in accordance with the foreign exchange control regulations in force in the Republic of Latvia.
Article 6 Tax and customs 1. Republic of Latvia provides that all goods that are imported under the authority of the Republic of Latvia concluded and co-financed in the framework of the supply contracts, admitted the Republic of Latvia, shall not be subject to customs duties, import duties and other taxes or fiscal charges having equivalent effect.
The Republic of Latvia shall ensure that such imports are exempt from the point of entry in accordance with the relevant provisions of the contract and the contractor are available for immediate use as needed for normal execution of the contract without any delays or disputes related to the above duties, taxes or fees owed.
2. The Republic of Latvia provides for personal and household effects, which are imported for private use individuals (and their immediate family members), except in the country concerned on the site of the person hired, carried out technical assistance obligations laid down in the treaties, should be exempt from customs duties, import duties, taxes and other fiscal charges having equivalent effect. These personal and household accessories must be either re-exported or transferred to the State of the Republic of Latvia in accordance with the rules in force in the Republic of Latvia, by terminating the contract.
Article 7 national proceedings in cases where the suspect is there evidence that the beneficiary has not fulfilled its contractual obligations within the framework of the Programme, as well as the fact that there have been attempts to receive payments from the SAPARD agency which the beneficiary is not entitled to receive, the Republic of Latvia shall take appropriate action against any such breach and attempt to order the national proceedings not less stringent than in cases associated with national public funds.
(E) section quarterly and annual declarations of expenditure guidelines section E the certifying institution instructions for annual certification of the SAPARD agency subject: multiannual financial section A of the annex to the agreement article 6 (5) of those instructions, the SAPARD agency certification authority certificate of the analyst and report form, scope and content.
1. Enter this material will provide guidance as regards the multi-annual financial agreement section of the annex set out in article 6 of the account certification requirements.

2. certification and audit certificate and, respectively, the audit report, the subject is the SAPARD Agency and all authorised bodies decentralised and, that is, processes that take place from the moment of registration of the application up to the time and commitment from the payment request registration to payment.
3. certificate of audit the audit certificate should be short, clear and explicit finding on to the General conclusions reached under which the institution which appointed certification body. Examples of audit certificates provided in annex of this title.
4. Audit report audit report is wider than the audit certificate, and it includes additional findings on whether: I) certification authority has obtained reasonable assurance that internal control procedures are theoretically safe and that they will work satisfactorily in practice;
II) procedures, with special attention to the particularly important accreditation criteria (procedures, responsibilities of writing bin, before the draft and before the payment verification, purchasing, commitment and payment procedures, accounting procedures, computer security, internal audit), gives adequate assurance that projects are required for SAPARD financing, shall comply with the multiannual financial contract;
III) will continue all of particular importance to the accreditation criteria, in accordance with the multi-annual financing agreement, section A of the annex to article 3 (1), the requirements of points that must be met for the Commission to entrust the management of the assistance; and (IV)) the community's financial interests will be adequately protected.
The report should also include any recommendations and indicate to what extent and how they (the corresponding cases, the recommendations of the previous years) are filled.
5. The content of the message I) internal control procedures should be set out in the report, which obtained the certification authority that the whole period that was subject to audit, internal control has been in place for both practice and theory in that it covers all the proposed deals, and that it has been corrected the errors. Report should contain a description of the internal control procedures, which should pay attention to any serious shortcomings in the development of control measures or action, especially by focusing on factors that can reduce the effectiveness of the internal control procedures, such as: — the possibility that a designated officer may impede the control;
-incorrect application of control due to misinterpretation or negligence; and not a standard procedure.
The internal audit function is the most important element of the internal control environment. As such, it is dedicated to a specific section of the audit report. The report should address the internal audit independence, competence and effectiveness, and in particular the following: responsibilities, rights of access to the head of the SAPARD Agency and all documents, staff and premises (including decentralised and notified bodies); part of the internal audit staff involvement in the day-to-day operations, staff support (competence, training and experience), planning (needs assessment, risk-based approach, the audit inspection cycle); documentation (or accurately documented inspection and the reasons for its conclusions, or the required records are kept), audit evidence (or existing arrangements ensure that they will be sufficient, relevant and reliable), or have a decent quality of agenda, messages (whether they are appropriate and conceptually or procedures should ensure that they have timely) and conclusions as to the audit plan.
(II)), whose task is to ensure compliance with the multiannual financing agreement this section applies to the authorization. The SAPARD Agency is left in the regulation of complex business rules. The risk required to implement SAPARD agency compensatory controls, which includes the use of the written procedure, the control sheet and detailed checking again by another officer.
Report must include a description of the procedures of the Treaty, the multiannual financial compliance (through appropriate measures and sub-measures), indicating for each procedure, or the applicable control measures are sufficiently strong to be able to rely on the audit period. In cases where it is considered that a procedure does not give the necessary confidence, indicate lack of control activity of the most important elements.
III) important criteria the report must indicate the extent to which the SAPARD Agency and decentralised bodies of the Executive and the major accreditation criteria (procedures, responsibilities of writing bin, before the draft and before the payment verification, purchasing, commitment and payment procedures, accounting procedures, computer security, internal audit) in accordance with the multi-annual financing agreement, section A of the annex to article 3 (1), the requirements of points that must be met for the Commission to entrust the management of assistance and the action (and the time and duration), if any, to be made to the SAPARD agency or decentralised/notified body, in order to prevent such shortcomings.
IV) the protection of the community's financial interests, this section applies to amounts to (customers). The corresponding key control objectives include accurate and timely transfer of all customer transactions in a customer magazine, to prevent situations in which the debtor shall bear their debts from other payments UNDER SAPARD, and correct the amount received from the customer transfer.
General idea, the report must include a description of the protection of the community's financial interests, for each procedure, or the applicable control measures are considered sufficiently robust to be able to rely on them. In cases where it is considered that a procedure does not give the necessary confidence, indicate lack of control activity of the most important elements.
V) recommendations for improvements of any recommendations should be classified according to the level of importance by the Certification Body's opinion should be granted for each relevant situation. In order to facilitate the preparation of this information, you have the following classification: — very important: recommendations to the head of the SAPARD Agency to which immediate attention;
— Average important: recommendations that are of significance to the SAPARD Agency in the context of the control environment and having a higher level of management attention without delay;
Less important: recommendations, which must be fulfilled in order to ensure full compliance with the accreditation criteria.
Message to each recommendation must specify procedures and related policy issues that need to be addressed, and the SAPARD Agency's response.
6. structure of the report the Commission's work on the certification message processing help in the case of standard structures, provided below: Summary: it includes a summary of the findings for each of the above points I, II, III and IV and sections that contain the most important and relevant recommendations on average.
General introduction I) internal control procedures: the main control measures of assessment, internal audit function, internal control procedures, together with a description of the evidence.
(II) the multiannual financial) procedures to ensure compliance with the Treaty: the most important control measure, multi-annual financing agreement, the procedures for ensuring compliance with the description, together with the evidence.
III) important criteria: a determination of the extent of the implementation of the SAPARD agency all relevant accreditation criteria (procedures, responsibilities of writing bin, before the draft and before the payment verification, purchasing, commitment and payment procedures, accounting procedures, computer security, internal audit) as required by multi-annual financing agreement, section A of the annex to article 14.
IV) procedures for the protection of the community's financial interests: the most important control measures, a description of the procedures for the protection of the community's financial interests, together with the evidence.
Overall conclusions recommendations annexes for each measure/sub and aggregate function (e.g., accounting, internal audit, inspection, IT) should be described in the annex, which is done to achieve each of the control objectives, including a description of the control objectives, controls, file structure (to determine whether it is included in the primary evidence/documents required to substantiate the claim), findings, assessment, conclusions and recommendations in detail.
Prepare a list of recommendations, which contains at least the following information: reference/recommendation report/status/action.
 
Section e of the annex to the certification bodies audit certificates issued 5 opinions table: opposition limited negative there is no opposition to a conclusion is not without negative amount limit notes notes opinion (A) (B) (E) Amount to refusal, limitations notes give an opinion (D) (C) (A). the opinion without notes

We carried out the annual accounts for expenditure declared to the Commission as expenditure [SAPARD agency name and address] occurred In the 200 x. financial year. Our as a certification authority's obligation is to express the opinion on these annual accounts based on our audit.
We conducted our audit in accordance with internationally accepted audit standards and the multi-annual financing agreement, the sections of the annex article 6. We have planned and conducted the audit to obtain reasonable assurance as to whether the Commission released reports do not contain substantial distortions. In the course of performing the audit tests were verified evidence given as justification of annual accounts information, documentation, procedures, and made random checks of transactions. Payment compliance with the multiannual financial contract within our audit was tested only with regard to the SAPARD Agency's administrative structures able to run this test before the payment is made. Our audit provides a reasonable basis for our opinion of the.
In our opinion, the report for the Commission on the transfer of the 2000x. financial year (date DD/MM/YYYY) must be true, complete and accurate.
Our audit was conducted in the period from DD/MM/YYYY to DD/MM/YYYY. Report on our open facts are put on the same date when the certificate is issued.
[release date + signature, name and title of Certifying bodies + name and address]
 
B. opinion with notes — DISCOVERED discrepancies we've taken in the annual accounts for expenditure declared to the Commission as expenditure [SAPARD agency name and address] occurred In the 200 x. financial year. Our as a certification authority's obligation is to express the opinion on these annual accounts based on our audit.
We conducted our audit in accordance with internationally accepted audit standards and the multi-annual financing agreement, the sections of the annex article 6. We have planned and conducted the audit to obtain reasonable assurance as to whether the Commission released reports do not contain substantial distortions. In the course of performing the audit tests were verified evidence given as justification of annual accounts information, documentation, procedures, and made random checks of transactions. Payment compliance with the multiannual financial contract within our audit was tested only with regard to the SAPARD Agency's administrative structures able to run this test before the payment is made. Our audit provides a reasonable basis for our opinion of the.
In the course of the audit revealed differences between the annual report and accounts of the SAPARD agency books and documents the following measures/sub-measures (reference: L audit report page): [event/difference-in the national currency in euro under farms-WILLEM II 23 000/100 e] technique in our opinion, the report for the Commission on the transfer of the 2000x. financial year (date DD/MM/YYYY) other than described in the previous paragraph, the differences are true, complete and accurate.
Our audit was conducted in the period from DD/MM/YYYY to DD/MM/YYYY. Report on our open facts are put on the same date when the certificate is issued.
[release date + signature, name and title of Certifying bodies + name and address]
 
C. findings with notes — limit we carried out annual reviews of the expenditure declared to the Commission as expenditure [SAPARD agency name and address] occurred In the 200 x. financial year. Our as a certification authority's obligation is to express the opinion on these annual accounts based on our audit.
Except the next paragraph, we conducted our audit in accordance with internationally accepted audit standards and the multi-annual financing agreement, the sections of the annex article 6. We have planned and conducted the audit to obtain reasonable assurance as to whether the Commission released reports do not contain substantial distortions. In the course of performing the audit tests were verified evidence given as justification of annual accounts information, documentation, procedures, and made random checks of transactions. Payment compliance with the multiannual financial contract within our audit was tested only with regard to the SAPARD Agency's administrative structures able to run this test before the payment is made. Our audit provides a reasonable basis for our opinion of the.
[For example] in the context of SAPARD agency/institution authorized nature of the documentation, we could not ascertain [mention the name of issue] even using other audit procedures (reference: L audit report page): in our opinion, except for the effect of adjustments, if any, which we might need to be discovered, if we have to make sure of the [name of the mentioned problem], report, intended for transfer to the Commission of the 2000x. financial year (date DD/MM/YYYY) must be true, complete and accurate.
Our audit was conducted in the period from DD/MM/YYYY to DD/MM/YYYY. Report on our open facts are put on the same date when the certificate is issued.
[release date + signature, name and title of Certifying bodies + name and address]
 
D. refusal to give an opinion, the limit we have made annual accounts for expenditure declared to the Commission as expenditure [SAPARD agency name and address] occurred In the 200 x. financial year. Our as a certification authority's obligation is to express the opinion on these annual accounts based on our audit.
Except the next paragraph, we conducted our audit in accordance with internationally accepted audit standards and the multi-annual financing agreement, the sections of the annex article 6. We have planned and conducted the audit to obtain reasonable assurance as to whether the Commission released reports do not contain substantial distortions. In the course of performing the audit tests were verified evidence given as justification of annual accounts information, documentation, procedures, and made random checks of transactions. Payment compliance with the multiannual financial contract within our audit was tested only with regard to the SAPARD Agency's administrative structures able to run this test before the payment is made. Our audit provides a reasonable basis for our opinion of the.
We were unable to test procedures that are based on payments made by agencies with delegated responsibilities, due to the limit of our work to put the SAPARD Agency (reference: L audit report page).
Due to the previous paragraph, the importance we don't express our opinion on whether the report, intended for transfer to the Commission of the 2000x. financial year (date DD/MM/YYYY) must be true, complete and accurate.
Our audit was conducted in the period from DD/MM/YYYY to DD/MM/YYYY. Report on our open facts are put on the same date when the certificate is issued.
[release date + signature, name and title of Certifying bodies + name and address]
 
E. negative opinion we carried out annual reviews of the expenditure declared to the Commission as expenditure [SAPARD agency name and address] occurred In the 200 x. financial year. Our as a certification authority's obligation is to express the opinion on these annual accounts based on our audit.
We conducted our audit in accordance with internationally accepted audit standards and the multi-annual financing agreement, the sections of the annex article 6. We have planned and conducted the audit to obtain reasonable assurance as to whether the Commission released reports do not contain substantial distortions. In the course of performing the audit tests were verified evidence given as justification of annual accounts information, documentation, procedures, and made random checks of transactions. Payment compliance with the multiannual financial contract within our audit was tested only with regard to the SAPARD Agency's administrative structures able to run this test before the payment is made. Our audit provides a reasonable basis for our opinion of the.
Declared expenditure from the SAPARD Agency does not coincide with the payments and receipts for the period concerned (reference: L audit report page).
Our view is that, in the context described in the previous paragraph, the discrepancy report for transfer to the Commission of the 2000x. financial year (date DD/MM/YYYY) is not true, complete and accurate.
Our audit was conducted in the period from DD/MM/YYYY to DD/MM/YYYY. Report on our open facts are put on the same date when the certificate is issued.
[release date + signature, name and title of Certifying bodies + name and address] 5 Cf. international audit and related service standards No 13 (SR 13), issued by the International Federation of Accountants (IFAC) F section Community legislative text to which reference is made

in connection with this agreement (EC) provisions adopted 2222/2000 on financial rules for SAPARD, 6 (a) (b) (c) (d) (e) No.
SA-article (or sub-rules that must be applied to the Republic of Latvia in accordance with the Treaty of point no part.)
paragraph 1 (A) 3 1.
The Commission shall, on the basis of a case-made of national and sectoral programme/project management capacity, with the public funding of related financial control procedures and structures analysis, may decide to waive paragraph 2 ex-ante approval requirements and to entrust the implementation of decentralised agencies in the candidate countries to help control. A waiver of this requirement can occur if:-the 3 above minimum criteria used to assess candidate ability of implementing agencies to manage aid and minimum conditions to be fulfilled for these agencies;
 
 
 
 
and specific provisions regarding such matters as, inter alia, invitations to tender, scrutiny and evaluation of tenders, the award of the contract and the community public procurement directives, which strengthened financial agreements with each of the candidate countries concerned.
2 F 1 project selection, tendering and contracting organisation must receive prior to the ex-ante approval by the Commission.
3 (A) and article 3 1.
The minimum criteria and conditions for decentralising management to transfer it to the paragraph 1 1 implementing agencies in the candidate countries. The minimum criteria to assess the Implementation of the Agency in the applicant countries could manage.
 
 
 
 
The Commission uses the following criteria to assess which of the implementing agency of the country capable of cooperation decentralised management of assistance: (i) must have a clearly defined Program management system with a fully developed internal rules of procedure, clear institutional and personal responsibilities;
 
 
 
 
(ii) must be adhered to the principle of separation of powers, in order to avoid any risk of conflict of interest in procurement and payment;
 
 
 
 
(iii) to make available the appropriate personnel entrusted with the task of filling. These employees need to have the appropriate audit skills and experience, language skills and they must be fully trained in the implementation of Community programmes.
 
 
 
 
2. Minimum conditions for decentralising management to implementing agencies in the transfer to the applicant countries.
 
 
 
 
Decentralisation of management, taking it to the candidate countries, but the Commission through ex-post controls, may be considered when implementing the Agency complies with the following conditions: (i) there is effective internal controls including an independent audit function and an effective accounting and financial reporting system which meets internationally recognised audit standards;
 
 
 
 
(ii) a recent financial and operational audit proves effective and timely assistance to the community or national level in nature management measures;
 
 
 
 
(ii) there exists a reliable national financial control system for monitoring the implementation by the Agency;
 
 
 
 
(iv) procurement rules which the Commission has approved as appropriate financial provisions title IX requirements governing the general budget of the European Communities (see Annex A of this agreement, section 14.2.6);
 
 
 
 
(v) National Executive has pledged to bear the full financial responsibility and to assume the obligations of the program.
 
 
 
 
This approach is without prejudice to the Commission and the Court of Auditors the right to costs.
4. (A) article 13 6.
4. point the rules provides that in the Republic of Latvia should be applied to the rules relating to criminal proceedings or judicial cooperation between the bodies listed in point 8 of the candidate countries and Member States.
 
 
 
 
4.1) (in cases where the Commission decides to carry out on-the-spot checks and inspections in accordance with this paragraph, it shall ensure that, at the same time not be similar on-the-spot checks and inspections that focus on the same facts in relation to the physical persons involved (see. 6.) in addition, it takes into account the currently ongoing or already completed inspections that focus on the same facts with regard to the participating economic entities, which the Republic of Latvia, on the basis of its legislation.
 
 
 
 
4.2 the Commission shall prepare and carry out on-the-spot checks and inspections in close cooperation with the authorities of the Republic of Latvia, which is informed in due time of such examinations and inspections, the purpose and object of legal base so that they can provide all the necessary assistance. To achieve this, the Republic of Latvia may participate in the on-the-spot checks and inspections.
 
 
 
 
In addition, after the election of the Republic of Latvia on-the-spot checks and inspections may be carried out jointly by the Commission and the authorities of the Republic of Latvia.
 
 
 
 
4.3 subparagraph the Commission shall take their economic person on-the-spot checks and inspections, which may be applied to administrative measures and penalties in accordance with paragraph 6, in cases where there is reason to believe that there has been inconsistency.
 
 
 
 
In order to facilitate the Commission of such checks and inspections, physical persons should provide access to the premises, land, means of transport or other areas that are used in the business.
 
 
 
 
In cases where it is strictly necessary to establish whether there is non-compliance, the Commission may carry out on-the-spot checks and inspections on other economic entities involved to access this persons existing corresponding information on the facts, on which are focus on-the-spot checks and inspections.
 
 
 
 
4.4 4.4.1) (on-the-spot checks and inspections by the Commission's mandate and initiatives carried out its officers or other officials who have received the appropriate authorization, hereinafter referred to as ' Commission inspectors '. Persons who are temporarily working in the Commission as national experts, can help such checks and inspections.
 
 
 
 
Commission inspectors shall exercise their powers upon production of an authorization in writing, showing their identity and position, together with a document indicating the checks on the sites or in the test and inspection.
 
 
 
 
Under this contract, they must act in accordance with the rules of procedure established by the legislation of the Republic of Latvia.
 
 
 
 
4.4.2 this agreement within the Commission, with the consent of the Republic of Latvia may have recourse to officials from other candidate countries listed in point 8, it can invite to work with observer status and associate institutions from outside to provide technical assistance, the responsibility of the Commission.
 
 
 
 
The Commission shall ensure that all the abovementioned officials and institutions to provide all possible guarantees as regards technical competence, professional independence and observance of confidentiality.
 
 
 
 
4.5 point 4.5.1. Commission inspectors shall, without prejudice to the provisions of this agreement, and under the same conditions as national administrative inspectors and in accordance with national legislation, are provided access to all kinds of information and documentation associated with the test operations that are necessary for the proper conduct of the on-the-spot checks and inspections. They can use the same inspection as a means of carrying out the national administrative inspectors and in particular copy relevant documents to remove.
 
 
 
 
On-the-spot checks and inspections may concern in particular:-the professional registration books and documents, such as invoices, lists of terms and conditions, payment receipts, on the materials used and the works done and physical persons of the bank statement issued, computers stored data — manufacturing, packaging and dispatching systems and methods, — goods or completed operations and physical checks of quantity, sampling and testing, their work and the progress of the investment who has the money, and how it is used, the completed investment — documents relating to budget and accounting documents, financial and subsidised project the technical implementation.
 
 
 
 
4.5.2. If necessary, the Republic of Latvia, at the request of the Commission, shall take the appropriate precautionary measures under national law, without prejudice to the provisions of this agreement, in particular to protect the evidence.
 
 
 
 
4.6 On 4.6.1. any point under this paragraph in any way or the information provided is subject to professional confidentiality and be protected in the same way as similar information is protected by the national legislation of the country in which it is received, and using the appropriate provisions relating to the Commission.
 
 
 
 

Such information must not be disclosed to any other person, as only those individuals or the Community institutions in the Republic of Latvia the functions required to know this information, as well as the Community institutions must not be used for purposes other than to ensure effective protection of community interests in the candidate countries and the Member States. When the Republic of Latvia provides information for on-the-spot checks and inspections in the course got on behalf of officials, acting as observers in accordance with paragraph 4.4.2, used for other purposes, it must first receive the consent of the State in which that information was obtained.
 
 
 
 
4.6.2 the Commission as soon as possible, notify the State in whose territory an inspection has been carried out on the spot inspection, or to the institution responsible for any discrepancies associated with facts or suspicions, which have been spotted on-the-spot checks or inspections. In any event, the Commission must inform the aforementioned authority of such checks and inspections.
 
 
 
 
4.6.3. Commission inspectors shall ensure that, without prejudice to the terms of this agreement, the preparation of the report to take into account national legislation of the Republic of Latvia in the procedural requirements. These reports are added to the materials referred to in 4.5 and source document. In cases where the inspection is carried out jointly in accordance with the second paragraph of point 4.2, the Commission inspectors shall prepare a report are requested to sign the national inspectors who have participated in the inspection.
 
 
 
 
4.6.4. the Community shall ensure that, in implementing the provisions of this paragraph, its inspectors comply with community and national rules on the protection of personal data.
 
 
 
 
4.6.5 in cases referred to in point 4.3 of the person resists the economic inspection on site or inspection, the Republic of Latvia, acting in accordance with national law and without prejudice to the provisions of this agreement, shall give Commission inspectors for any kind of help that they need to be able to fulfil its task by performing on-the-spot checks or inspections.
 
 
 
 
The task of the Republic of Latvia is to take all the necessary measures in accordance with national legislation.
5 article 13 A 1. (b) ' non-compliance ' means any infringement of a provision of this agreement, the economic activities of the person as a result of an act or omission (see. 6.), the effect of which has been or may have been damage to the community or unjustified item of expenditure.
6 A 4 and 5 persons, it is Physical, every natural or legal person or any other entity, recognized in national legislation (individuals, companies, public organizations or national regional and local authorities), in cases where the operation of this agreement not corresponding application has led to harm or attempt to harm a Community contribution, as well as the natural or legal persons who were involved in the implementation of the non-compliance or whose job has been to prevent the emergence of such non-compliance You can apply administrative measures and penalties.
(A) article 13 6 7 7.1 7.1.1 above About discrepancies incurred in connection with Community funding is announced in accordance with the rules laid down in this paragraph.
 
 
 
 
These rules do not affect the criminal proceedings or judicial cooperation between the organs of criminal matters listed in paragraph 8 of the candidate countries and Member States the application of the provisions related to the Republic of Latvia.
 
 
 
 
7.2. point 7.2.1. within three months of the Multi-annual financing agreement shall notify to the Commission: the end — legislative, legal or administrative actions, in particular the rules on the implementation of the measures in accordance with section A of the annex to this agreement in article 13 (1);
 
 
 
 
the institutions and bodies responsible for the implementation of the measures under that section A of the annex to this agreement in article 13 (1);
 
 
 
 
— main regulations which apply to these institutions, and the role and functioning of the institutions and the procedures to be applied in their business they are responsible;
 
 
 
 
7.2.2. The Republic of Latvia shall immediately notify the Commission of any amendments to the information supplied in accordance with 7.2.1.
 
 
 
 
7.2.3. The Commission shall examine the information supplied by the Republic of Latvia and to inform it of the conclusions which it intends to do on this basis. It will continue to maintain contact with the Republic of Latvia, in so far as this is necessary for the application of the provisions of this paragraph.
 
 
 
 
7.3 point 7.3.1. during the two months following the end of each quarter, the Republic of Latvia shall report to the Commission any irregularities which have been the initial administrative or judicial investigations.
 
 
 
 
In this regard, its capabilities, provide detailed information on: – the ratio is violated;
 
 
 
 
-the nature and amount of the expenditure; in cases where the payment is not made, the amounts which would have been wrongly paid, in case of non-compliance had not been discovered, except where the error or negligence is detected before payment and it is not appropriate for an administrative or judicial penalty;
 
 
 
 
— the total amount and its distribution among the different funding sources;
 
 
 
 
— projects and activities, is the subject of non-compliance;
 
 
 
 
— the period during which, or the moment at which the non-compliance has occurred;
 
 
 
 
— non-compliance implementation, use;
 
 
 
 
— the way Yes the discrepancy was discovered;
 
 
 
 
— national institutions or authorities prepared a formal report on non-compliance;
 
 
 
 
-the financial consequences, the suspension of payments and any recovery;
 
 
 
 
the date you first became aware of the information that led to the suspicion that there is a mismatch, and the source of this information;
 
 
 
 
— the date when the official report was prepared for the non-compliance;
 
 
 
 
— where appropriate, the Republic of Latvia and the other participating countries;
 
 
 
 
— physical and involved the identity of legal entities, except where the nature of these discrepancies is that such information is irrelevant in the fight against non-compliance.
 
 
 
 
7.3.2 where part of the information referred to in 7.3.1, and especially in relation to activities carried out in the exercise of any non-compliance, and the manner in which it was discovered, is not available, the Republic of Latvia as possible supply the missing information when it submitted to the Commission for the next quarter's report on non-compliance.
 
 
 
 
7.4 the Republic of Latvia shall notify the Commission forthwith of any discrepancies that are open or are meant to be held, if there is concern that: (a) they can quickly cause repercussions outside its territory, and/or (b) it is shown that used a new type of fraudulent activity.
 
 
 
 
This message if necessary, at the same time shall also be sent to the other candidate countries and relevant institutions in the Member States.
 
 
 
 
7.5 point 7.5.1. during the two months following the end of each quarter, the Republic of Latvia shall report to the Commission, with reference to any earlier under point 7.3 provides reports on any procedures put in place after all the previously reported non-compliance and of any important changes that have occurred in connection with them, including: — amounts that are recovered or which are intended to be recovered;
 
 
 
 
— Interim precautionary measures taken by the Republic of Latvia, to ensure the amount unduly paid;
 
 
 
 
-judicial and administrative procedures in place to recover amounts wrongly paid or applied sanctions;
 
 
 
 
-reasons why you end of recovery procedures; wherever possible, the Commission is informed before the decision is taken;
 
 
 
 
— the suspension of any criminal cases.
 
 
 
 
The Republic of Latvia shall inform the Commission of administrative or judicial decisions, or the main related aspects with regard to this procedure.
 
 
 
 
7.5.2. Without prejudice to Annex A of this agreement, section 14.2.8 article, where the Republic of Latvia considers that an amount cannot be totally recovered, or cannot be expected that it could be fully recovered, it shall inform the Commission in the special report on the amount, which is not recoverable.
 
 
 
 
in the case referred to In 7.5.2 7.5.3, without coming into conflict with this agreement (A) of the annex to section 14.2.8 article, the Commission may in particular request that the Republic of Latvia to continue the recovery procedure.
 
 
 
 
7.5.4 when the Republic of Latvia at the request of the Commission the following specific decides to initiate or continue legal proceedings with a view to recovering amounts wrongly paid, the Commission may, without prejudice to this section of the annex to the Treaty article, commit to 14.2.8 fully or partially reimburse the Republic of Latvia court costs or the costs directly incurred as a result of this trial, the presentation of documentary evidence, even if this process is not successful.
 
 
 

 
7.6 point If the period there has been no discrepancies which would have to be notified to the Commission, the Republic of Latvia shall inform the Commission, in the same period, as defined in section 7.3.1.
 
 
 
 
7.7 7.7.1. The Commission shall maintain the necessary contacts with the Republic of Latvia, to supplement the information referred to in point 7.3 for discrepancies, about 7.5. the procedures referred to in subparagraph and, in particular, on the possibility of recovery.
 
 
 
 
7.7.1 7.7.2. Independently of the contacts mentioned in subparagraph shall inform the Commission of the Republic of Latvia in cases of non-conformity in nature point to the possibility that identical or similar practices could occur in other countries.
 
 
 
 
7.7.3. The Commission shall organize information meetings listed in paragraph 8 to the representatives of the candidate countries to jointly explore the information obtained in accordance with 7.3, 7.4 and 7.5, and in accordance with paragraph 7.7, especially on what of these cases may learn in connection with irregularities, preventive measures and legal proceedings.
 
 
 
 
7.7.4 After the Republic of Latvia or at the request of the Commission, the Republic of Latvia and the Commission shall provide each other, in consultation with the object of preventing all Community interest threatening that revealed in the course of implementing these rules.
 
 
 
 
7.8 point 7.8.1. The Republic of Latvia and the Commission shall take all necessary precautions to ensure that the information which they exchange remains confidential.
 
 
 
 
7.8.2. the information referred to in this paragraph should not be sent to persons other than those persons in the Republic of Latvia or the Community institutions whose duties required to ensure access to such information, except when the State which it is supplied, has specifically consented.
 
 
 
 
7.8.3. the names of natural persons or legal entities the names listed in paragraph 8 to the candidate countries, the Member States or Community institutions may disclose only where this is necessary to prevent or investigate or ascertain whether the non-conformity, on kuraspastāvēšan the suspect really is.
 
 
 
 
7.8.4. Any under this paragraph in any way or the information provided is subject to professional confidentiality and be protected in the same way as similar information is protected by the national legislation of the country in which it is received, and using the appropriate provisions relating to the Commission. In addition, this information may not be used for any other purpose than those set out in this paragraph, except when institutions have provided it have given their express consent, and provided that the State in which the requested authority is situated, the legislation in force does not prohibit the provision of such information or use.
 
 
 
 
7.8.5. Subparagraph 7.8.1.7.8.4 in no way hampered by this point the use of the information obtained in any court proceedings or proceedings at a later time, take place in conjunction with the provisions of this agreement. In accordance with its national authority, which has provided this information, is immediately notified of such use.
 
 
 
 
7.8.6. When the Republic of Latvia shall notify the Commission that further research has shown that a natural or legal person whose name has been communicated to the Commission in accordance with this paragraph, is not involved in any of the non-compliance, the Commission shall inform the people, for which this name is made according to the given point. Further, the following persons are no longer considered to be in non-compliance referred to involved parties, as it stemmed from a previous statement.
 
 
 
 
7.9 the amounts recovered shall be distributed by the Republic of Latvia and the community in proportion to the expenditure already incurred by them, provided that the debt has been written off in accordance with the annex to the agreement section 14.2.8. the conditions of article.
 
 
 
 
7.10 7.10.1. point where discrepancies related to amounts not exceeding 2280 lat and is requested by the Community budget, the Republic of Latvia does not send the Commission referred to in paragraphs 7.3 and 7.5, the requested information unless the Commission expressly requests it.
8 (A) article 14 2.6 the Republic of Bulgaria, the Czech Republic, Estonia, Hungary, Republic of Latvia, the Republic of Lithuania, Poland, Romania, the Slovak Republic and the Republic of Slovenia 9 Article 12 3 A 9.1 point 9.1.1 Conciliatory bodies have the following tasks: (a) examine any questions addressed to it by the Republic of Latvia, in the context of findings in accordance with the annex to the agreement article 12 of section A and bilateral negotiations on the dot findings receive official notification from the Commission in accordance with article 12 of section A of this title and the given point, with the conclusion that certain expenditure of the Republic of Latvia is not selecting the program, (b) to try to reach an agreement between the different commissions and positions of the Republic of Latvia, and (c) at the end of the investigations conducted to draft a report describing the results of the conciliation of work, in terms of the necessary notes, if all or some of the points of dispute still unresolved.
 
 
 
 
9.1.2. the following account reconciliation process stages: (a) the institution's position is without prejudice to the Commission's final decision on the account balance the results of the comparison;
 
 
 
 
(b) the fact that a task has not been attached to a given institution, does not impose restrictions on the State, which receives from the Commission in paragraph 9.1.1 (a) of that notification.
 
 
 
 
9.2 point 9.2.1. Republic of Latvia issue should be involved in the above mentioned institution within thirty working days of the 1 (a) in point 9.1 that the receipt of the notification by sending a reasoned request for conciliation to the Secretariat of the authority, as the address is communicated to the Republic of Latvia in the communication process.
 
 
 
 
9.2.2 request for conciliation is admissible only where the financial adjustment in respect of the measures recommended by the Commission, either, — EUR: 0.5 million; or, make up more than 25% of Latvia's total annual expenditure of the measure concerned.
 
 
 
 
In addition, if subparagraph (a) above 9.1.1 bilateral negotiations the Republic of Latvia submits and demonstrates that the issue is a matter of principle relating to the application of Community rules, the institution may declare that the request for the conduct of the conciliation is assumed.
 
 
 
 
9.2.3. the institutions confirm receipt of the request by the Secretariat.
 
 
 
 
9.2.4. the institution shall conduct investigations as informally and quickly as possible, on the basis of the evidence and of the Commission and the national authorities concerned to a fair hearing. At the end of the investigation, the institution shall send them in subparagraph (c) above 9.1.1 report.
 
 
 
 
9.2.5. where, within four months after receipt of the request to the institution has failed to reconcile the Commission and the Republic of Latvia, the position of the conciliation procedure is considered failed. 9.1.1. In subparagraph (c) of the report lists the reasons why it was not possible to take the position of conciliation.
 
 
 
 
9.2.6. the report drawn up within the State are sent to that: — the fee issue to the institution;
 
 
 
 
other candidate countries; and the Commission, when it is proposed a decision after the account balance in comparison.
 
 
 
 
9.3 9.3.1. The institution shall meet the Commission's Central Office. Commission staff provides the Secretariat to the institution.
 
 
 
 
9.3.2. Not one of the members must not participate in the work of the body or sign a report if, in an earlier work, you have been personally engaged in the matter.
 
 
 
 
9.3.3. Without prejudice to paragraph 9.3.2, the reports must be adopted by institutions of the present members of the absolute majority that a quorum of three members.
 
 
 
 
The reports shall be signed by the Chairman and members who participated in the consultation. Messages must be registered with the Secretariat.
 
 
 
 
9.4 point 9.4.1 institution members shall carry out their duties independently, without seeking or accepting instructions from any Government or any institution.
 
 
 
 
9.4.2. the members of the institution is not entitled to reveal information they got, working institution. The following information shall be considered confidential and shall be subject to the maintenance of professional secrecy obligation.
10 (A) article 14 2.7 public bodies which may be closed to public works contracts, means the State, regional or local authorities, institutions, the activities of which determines the State legislative body that determines the laws of the country, is any body:-established for the specific purpose of meeting the interests of the general public and not having an industrial or commercial establishment, and is with the status of a legal person , and
 
 
 
 

— mostly funded by the State, regional or local authorities or other bodies, whose activities are determined by the legislation, or whether they are under the supervision of the institution, or in an administrative, managerial or supervisory board more than half of whose members are appointed by the State, regional or local authorities or other bodies, whose activities are determined by the law. "
OJ L 253, 7.10.2000, 6 5.
(G) settlement of disputes section — SAPARD 1. any dispute between the Contracting Parties on the conditions of performance of the contract, which is not adjusted between the parties, the arbitral tribunal shall decide the arbitration procedure in accordance with this section point 2 through 7.
2. any Contracting Party is entitled to request dispute settlement proceedings. Each of the parties within a period of three months from the date of initiation of the procedure means your arbitrator.
3. the arbitral tribunal, you create each of the individual case, shall consist of three arbitrators, who shall be appointed in the following order: — one arbitrator shall be appointed by the Republic of Latvia, the, one arbitrator shall be appointed by the Commission, shall appoint the arbitrator, one by mutual agreement or, if such an agreement cannot be reached, the Court of Justice shall be appointed by the President.
4. If one of the parties does not appoint an arbitrator within a period of three months from the receipt of the request for arbitration, the arbitrator shall be appointed by the President of the Court of the European communities.
5. If any of the arbitrators leave office, dies or loses capacity, his site is another arbitrator appointed in accordance with 2, 3 and 4, and the arbitrator has all the same powers and duties as the original arbitrator.
6. the arbitral tribunal shall take account of the relevant European Union Court of Justice case law.
7. all decisions are taken by simple majority of the arbitral tribunal. The arbitration procedure is determined by the Tribunal. Its decisions are binding on both Contracting Parties. Either of the Contracting Parties shall assume all the costs associated with the arbitrator and the arbitration process, the representation of other costs equally borne by the two Contracting Parties.
Special Accession Programme For agriculture And Rural Development In the Republic Of Latvia in the Multiannual Financing Agreement Between the Commission Of the European communities On Behalf Of the European Community And the Republic Of Latvia the Commission of the European communities, hereinafter referred to as "the Commission", acting for and on behalf of the European Community, hereinafter referred to as "the Community" , of the one part, and the Republic of Latvia, of the other part, hereinafter jointly referred to as "the Contracting Parties", whereas (1) A Special pre-Accession Programme for agriculture and Rural Development (hereinafter referred to as "SAPARD") providing for a Community financial contribution has been established by Council Regulation (EC) 1268/1999 of 21 June 1999 on Community support for pre-accession measure for agriculture and Rural development in the applicant countries of central and eastern Europe in the pre-accession period 1 (2)-the Republic of Latvia is eligible to be a beneficiary under SAPARD.
(3) the Republic of Latvia has approved an Agricultural and Rural development plan and submitted it to the Commission for approval a programme.
(4) the plan was approved as an agriculture and Rural Development Program by a Decision taken in accordanc with article 4 (5) of Regulation (EC) 1268/1999 on 25 October 2000, It is not the set-out condition cessary for the execution of the agriculture and Rural Development Programmes, and any amendments thereof, is in the Republic of Latvia.
(5) the programme should be executed on a decentralised basis following a Commission Decision conferring management of aid on the UN Agency in the Republic of Latvia was taken in accordanc with article 12 (2) of Council Regulation (EC) 1266/1999 of 21 June 1999 on co-ordinating aid to the applicant countries in the framework of the pre-accession and amending Regulation (EEC) on Hollywood From 3906/89,2 have AGREED AS follows Article 1 objective: 1. This agreement will lay down the technical, legal and administrative framework under which the agriculture and Rural Development Programmes and any amendments thereof, you (hereinafter referred to as "the programme") shall be executed in the Republic of Latvia. Reference to compliance with this Agreement shall be understood to also include compliance with the Program, the Annual Financing Agreement (s) and the Commission Decision referred to in article 3 (1) of Section A of the Annex.
2. The Republic of Latvia shall ensur the proper execution of the Programme in the Republic of Latvia on a decentralised basis in accordanc with the provision of this agreement.
3. In case of conflict, the provision of this Agreement shall prevails over those in the Program.
Article 2 Annual Financing Agreement 1. Following the approval by the Commission of the Programmes and the conclusions of the present agreement, an Annual Financing Agreement shall be concluded each year.
2 the financial commitment of the Community shall be set out in the Annual Financing agreements. These are the only instrument that determin the financial commitment of the Community to the Republic of Latvia. Each Annual Financing Agreement shall set out: (a) only for the year in question, the maximum Community financial commitment for the Republic of Latvia and the period of validity of that commitment, (b) where appropriate, amendments to the provision of this agreement.
3. On accession to the European Union, the Republic of Latvia shall lose its entitlement to support under the Program.
Article 3 Inspection and audit 1. The Commission and the Court of Auditors of the European Communities (hereinafter referred to as "the Court of Auditors"), shall have the right concerning the execution of the Program to send agents or duly authorised representatives, carry out: (a) technical or financial or audit missions in the Republic of Latvia;
(b) the inspection for the purpose of detecting irregularit and fraud.
Such missions, audits and inspection may, in particular, an involv examination of systems and procedures, on-the-spot check:-of projects and, and — of beneficiar, in particular in respect of verification of the economic reality of the quotation and receipts, as well as certificates of origin, suppliers of goods and services under the Program to aided the beneficiar.
The Community shall give the authorities of the Republic of Latvia advance notice of such missions and audits.
2. The Republic of Latvia shall maintain records and accounts to identify projects of adequat and, where appropriate, the services financed by the Program in accordanc with sound accounting procedures, taking account of the requirements of this agreement.
It shall ensur that the agents or representatives referred to in paragraph 1 have the right to inspect all relevant documentation, systems and accounts pertaining to projects and, where appropriate, the services financed under the programme.
It shall ensur that all beneficiar to made aware of later than when their project is selected that the agents or representatives referred to in paragraph 1 have the right to carry out on-the-spot inspection.
3. The Republic of Latvia shall supply on request by the agents and representatives referred to in paragraph 1, all documents and information, including any stored in electronic form or created relating to the commitment entered into and is financed under the Programme expenditure. It shall take action to facilitat suitabl the works of the aforementioned agents and representatives of the Community within the framework of this agreement.
Article 4 dispute settlement of the Dispute between the Contracting Parties relating to this Agreement shall be settled in accordanc with Section G of the Annex.
Article 5 language 1. Any communications between the Commission and the Republic of Latvia related to this Agreement shall be in English.
2. The Republic of Latvia shall ensur that for the Commission's examination referred to article 3 (1) of Section A of the Annex, the relevant national legislation, written procedures manuals, guidelines, standard control check-lists, the relevant administrative notices, standard documents and forms shall be available in English. Where documentation is needed for a purpose other than for that of examination, but is not available in English, the Republic of Latvia shall provide texts in English (a) expeditiously following request from the Commission.
Article 6 Termination of agreement 1. The Commission and the Republic of Latvia shall each, according to their respectiv is specific obligation, monitor execution of the Programme in the framework of this agreement. Without prejudice to the rights and obligations set forth in this agreement elsewher, each of the Contracting Parties may terminate this agreement if the other file to perform any of its obligations in the agreement relating to this. Where one party detects such a failure, it shall immediately inform the other party.
2. Where the Commission has detected a non-compliance with the obligations of this agreement, it: (a) shall notify the Republic of Latvia of its intention, with justification (s), and, (b) shall have the right, with regards to the Program, but without prejudice to the Decisions referred to in articles 11 and 12 thereof of Section A of the Annex: (i) to make financial corrections against the Republic of Latvia , (ii) to cease to transfer mon to-the Republic of Latvia, (iii) to refrain from undertaking any new financial obligations on the part of the Community, and, (iv) if appropriate, terminate this agreement with effect from the time the non-compliance was first detected.
Article 7 Detailed conditions

Detailed conditions relating to the execution of this agreement are set out in the Annex as follows: Section a: Financial management, Section B: management, Monitoring and Evaluation of the programme, Section C, Section D: General Provision: Quarterly and Annual declarations of expenditure, Section e: guidelines for Certifying Body, Section f: text of Community legislation referred to in Regulation (EC) No. 2222/2000 on financial rules for SAPARD3 adapted for this agreement.
Section g: dispute settlement.
The Annex to this Agreement shall form an integral part thereof.
Article 8 contact points relating to any matter falling by Correspondenc within the scope of this agreement, where appropriate stating the Program's number and title, shall be addressed to the following: for the Community: the Commission of the European Communities Directorate General agriculture, SAPARD unit rue de la Loi, 200, B-1049 Brussels telephone: 00 32 2 2967 337 Fax: 00 32 2 29 51746 E-MAIL : agri-sapard@cec.eu.int for the Republic of Latvia: the National Authorising Officer Ministry of finance Smilр Street 1, LV-1919 Rоg, Latvia telephone + 371 7095419 Fax. + 371 7095503 article 9 Entry into force this Agreement shall enter into force on the date when both Contracting Parties have notified each other of the completion of all not for its conclusions cessary formalit.
Article 10 signature this Agreement shall be drawn up in duplicate in the English and Latvian, only the English text being authentic.
Done at Brussels, this 25th day of January in the year two thousand and one For: Commission of the European Communities: Franz FISCHLER Member of the Commission For the heat:-the Republic of Latvia: Inguna silver Deputy State Secretary Ministry of finance the National Authorising Officer 1 OJ L 161, 26.6.1999, p. 87.
OJ L 161, 26.6.1999, 2, p. 68.
OJ L 253, 7.10.2000, 3, p. 5.
 
Annex (A) Financial Management Section article 1 scope this Section sets out the financial provision for execution of the Program. The execution of the programme shall be subject to the adoption of a Commission Decision conferring management of aid on an Agency and to the content of that Decision.
Article 2 Definition For the purpose of this agreement, the following definition shall apply: (a) a "National Fund" means the body appointed by the Republic of Latvia and placed under the responsibility of the National Authorising Officer which acts as the Competent Authority;
(b) "Competent Authority" means the body in the Republic of Latvia which, (i) issues, monitor and withdraw the accreditation of the SAPARD Agency, (ii) appoint a Certifying Body;
(c) "SAPARD Agency" means the body established by the Republic of Latvia and operating under its responsibility which the United Nations implementing function and discharge a paying function. Only one SAPARD Agency may be accredited at any time in the Republic of Latvia;
(d) "Certifying Body" means the body which is operationally independent of the SAPARD Agency and establish a certificate of the accounts, reports on the management and control systems and to the co-financing verif.
(e) "SAPARD euro account" means the account opened by the National Authorising Officer, on behalf of the Republic of Latvia, under their responsibility in a financial or treasury institution bearing interest under normal commercial conditions to receive payments referred to in article 7 of this Section and used exclusively for SAPARD transactions, maintained in euro and not subject to any charges or taxes;
(f) "Financial year" means the calendar year 1 January to 31 December;
(g) "measure" is the means by which a priority is implemented, which enable the projects to be co-financed; (a) the measure is assigned a contribution from the Community and the Republic of Latvia, as well as a set of specified targets;
(h) "project" means any operation carried out by the final under the programme to beneficiar;
(i) "Final Beneficiary" means the organisation or public or private undertaking is responsible for conducting a project;
(j) "Community contribution" means the co-financed by the Community in the relations to the total eligible public expenditure is carried out under the programme;
(k) "Public expenditure" means Community plus other public expenditure from all public bodies in the Republic of Latvia.
Article 3 the Conferral of management of aid 1. -The Republic of Latvia shall permit the Commission to verify compliance with the conditions of item 1 and item 3 of Section F, hereinafter referred to in this Section as "the conditions", and with article 4, article 5, article 6 and article 14 of this Section, prior to taking a Decision on conferral of management of aid on an Agency.
For the establishment of the compliance with the conditions and with the articles mentioned in the first subparagraph, the Commission shall: (a) the National Fund examin procedures and structures related to the implementation of the Programme and SAPARD Agency procedures and structures and, where appropriate, procedures and structures of other bodies to which tasks may have been delegated in accordanc with article 4 (3) , Article 5 (3) and article 6 (5) of this Section;
(b) carry out the verification of on-the-spot.
2. The Republic of Latvia shall ensur that, at all times, the National Authorising Officer of the Republic of Latvia the full financial responsibility bears and liability for the funds resulting from the Community contribution. The National Authorising Officer shall be the contact point for financial information sent between the Commission and the Republic of Latvia.
3. The Decision to confer management of the aid on an Agency in the Republic of Latvia may be made on a provisional basis, provided the conditions and articles referred it in the first sub paragraph of paragraph 1 shall-complied with.
Article 4 tasks of the Competent Authority 1. -The Republic of Latvia shall ensur that accrediting the SAPARD Agency before, the Competent Authority shall be satisfied that the administrative, accounting and internal control arrangements, payment of that Agency offer the following guarantee: (a) the admissibility of claims and compliance with this agreement are checked before payment is authorised;
(b) the commitment and payments effected are correctly and fully recorded in the accounts;
(c) the documents submitted with the cessary within the time and in the required form;
(d) the eligibility of applications and compliance with this agreement are checked before contracts with with a signed beneficiar and the commitment recorded.
The SAPARD Agency shall hold documents justifying the payments effected and documents concerning the carrying out of the prescribed administrative and physical controls. Where the relevant documents are held by the bodies responsible for authorising the expenditure, those bodies must transmit reports to the SAPARD Agency on the number of check is carried out, their content and the action taken in the light of the results.
2. The Republic of Latvia shall ensur that the decision of the Competent Authority to the SAPARD Agency accredi is taken on the basis of an examination covering the procedures and structures for the subject is referred to in paragraph 1. The examination shall, in particular, include the arrangements adopted in the protect the Community's interests, in respect of transactions to be financed by the programme, taking account of article 5 and article 14 of this Section: (a) namely the execution of payments, (b) the safeguarding of the treasury, (c) the security of computer systems, (d) the maintenance of accounting records, (e) the division of duties and the adequacy of internal and external controls (f) guarantee it to be obtained, (g) non to be collected, (h) the selection of projects, tendering, contracting and (i) the respect of procurement rules.
3. The examination referred to in paragraph 2 shall be conducted according to internationally accepted auditing standards.
The Competent Authority may delegate the conduct of the examination to other bodies. In all cases the National Authorising Officer, on behalf of the Republic of Latvia, will retain overall responsibility may be provisionally granted 4 Accreditations for a period to be fixed in relations to the seriousnes of the problem pending the implementation of any change of the requisit to the administrative and accounting arrangements. In instances where such a provisional accreditation is envisaged, there must be a satisfactory compliance with article 5 and article 14 of this Section, in particular with the following criteria: (i) written procedures, segregation of duties (ii), (iii) pre-project approval and pre-payment check, (iv) payment procedures, accounting procedures, (v) (vi) (VII), computer security, internal audit and, where appropriate, public procurement provision.
5. The Competent Authority shall ensur that the SAPARD Agency accounting system meets internationally accepted accounting standards.
6. If the Competent Authority is satisfied that the SAPARD Agency examined with all relevant requirements to compl, it shall proceed with its accreditation. Otherwise, it shall address to the SAPARD Agency instructions relating to the administrative and accounting arrangements, and in particular to any conditions the Agency is required to fulfil before accreditation may be granted.
7. The Authorising Officer shall communicate a National to the Commission the following particular of the SAPARD Agency accredited to carry out the tasks set out in article 5: (a) the name and statute of the SAPARD Agency;
(b) the administrative, accounting and internal control conditions under which payments are made relating to implementation of the programme;
(c) the Act of accreditation which consis of written confirmation shall (a) that the body meets the criteria for accreditation, and, when relevant, shall set out the instructions as it changes and the period set;
(d) information on the following:

(i) the responsibilities vested in it, (ii) the allocation of responsibilities between its departments, (iii) its relationship with other bodies, public or private, which also hold responsibilities for executing the measure under which it charges expenditure to the Program, (iv) the procedures by which claims by beneficiar with a verified, and validated, received, and by which expenditure is authorised, paid and accounted for (v) the provision for internal audit.
The Authorising Officer shall inform the National Commission in advance of any proposed change in those particular before those changes are implemented.
8. The Republic of Latvia shall ensur that the Competent Authority will monitor and that accreditation, where there is a failure to meet any of the criteria set out in paragraph 4 (i) to (VII) by the SAPARD Agency's operations, it shall immediately withdraw accreditation. The National Authorising Officer shall immediately inform the Commission.
Article 5 Implementation and payment task of the SAPARD Agency 1. The implementation task of the SAPARD Agency shall include: (a) the call for applications and publicising terms and conditions for eligibility, (b) project selection, including the application of the ranking criteria, (c) checking of applications for approval of projects against terms and conditions, eligibility and compliance with this agreement, including, where appropriate, public procurement provision, laying down (d) contractual obligation in writing between the Agency and to including information on beneficiar possible sanctions in the event of non-compliance with those obligations and , where not, the issue of cessary approval to commenc work, (e) execution of on-the-spot check to establish eligibility both prior to and following project approval, (f) follow-up action to the progress of ensur projects being implemented, (g) reporting of progress of the measure being implemented against indicators, (h) ensuring that the beneficiary is made aware of the Community contribution to the project.
2. The payment task of the SAPARD Agency of the shall include: (a) the checking of payment claims, (b) the execution of on-the-spot check to establish eligibility for payment, (c) authorisation of payment, (d) execution of payment, (e) accounting of commitment and payments, (f) where required by contractual obligation between the SAPARD Agency and the beneficiary or by provision of the Program, control on to after payment of beneficiar AIDS to establish the terms and whethers eligibility condition of the grants continue to be respected.
3. Where functions of implementation and payment are not discharged within a single administrative structure, the SAPARD Agency may delegate them to other parties provided the conditions referred to in paragraphs 2.3.1 it 2.3.8 of article 14 of this Section are complied with. However, in the case of the function of the may execution of payment, and of accounting of commitment and payment set out in article 14.1.2 and 14.1.3. of this Section., be delegated. The project approval, on-the-spot controls and payment processes must be based on an appropriate segregation of duties.
4.-the Republic of Latvia shall ensur that any proposed changes in the implementing or paying arrangements of the SAPARD Agency after its accreditation with the submitted by the Competent Authority to the Commission for examination in advance of their implementation.
5. The Republic of Latvia shall ensur that where the SAPARD Agency does not also discharge the functions of the Managing Authority provided for in article 2 (c) of Section B, the SAPARD Agency shall communicate it that Authority the information not to perform its cessary for it function.
6. In respect of investments in infrastructure projects of a type that would normally be expected to generate substantial net revenue, the SAPARD Agency shall assess, prior to entering into contractual arrangements with a potential beneficiary, whethers the project is of this type. Where it can be concluded that it is, the Agency shall ensur that the public aid from all sources exceeds 100 does not 50% of the total eligible cost.
7. In respect of investments in projects except to those in the infrastructure of a type not generating substantial net revenue, the SAPARD Agency shall ensur that the cumulation of public aids granted under the Program from all sources does not exceeds 100 50% of the total eligible cost of any project. Measure for training are considered to be human capital and not investment for the purpose of this paragraph.
Article 6 tasks of the Certifying Body 1. -The Republic of Latvia shall ensur that the tasks of the Certifying Body shall: (a) compris delivery of a certificate on the annual account of the SAPARD Agency as well as the SAPARD euro account regarding the integrality, accuracy and veracity of those accounts, (b) reporting on an annual basis on the adequacy of management and control systems of the SAPARD Agency as regards their capability to the conformity of the expenditure with ensur article 7 (1) of this Section (c) verification of the existenc and correctnes of the national co-financing element referred to in article 8 (2) of this Section.
2. The Certifying Body shall be a Department or body which is operationally independent of the SAPARD Agency and which has an appropriate technical vocation.
3. The certificate referred to in paragraph 1 shall be based on an examination of procedures and of a sample of transactions. It shall cover compliance of payments with this agreement as regards the capability of the SAPARD Agency's and National Fund's administrative structures to ensur that such compliance has been checked before a payment is made.
4. The report referred to in paragraph 1 (b) shall state: (a) the whethers the SAPARD Agency's procedures, with particular regard to the criteria and function in article 4, article 5 and article 14 of this Section, are such as to give reasonable assurance that the operations charged to the programme comply with this agreement, and what recommendations have been made for the improvement of systems (b) the annual accounts referred to in article 11 of this Section with in accordanc with the books and records of the SAPARD Agency, (c) the declaration of expenditure as provided for in article 9 of this Section and Section D with a materially true, complete and accurate record of the operations charged to the programme, (d) the financial interests of the Community are properly protected as regards non to be collected and , where appropriate, of the guarantee obtained, (e) recommendations on the improvement of systems addressed to the SAPARD Agency have been followed up, (f) any exceptional transactions or technical difficult to have been experienced regarding the financial year concerned, (g) any significant modification has been made since the previous report of the information.
The report shall be accompanied by information on the number and qualifications of staff undertaking the audit, on the work done on the number of transactions examined, on the level of materiality and confidence obtained, on any weaknes found and recommendations made for improvement, and on the operations of both the Certifying Body and other audit bodies, internal and external to the SAPARD Agency , from which all or part of the Certifying Body's assurance on the matters reported was gained.
5. The Certifying Body shall conduct its examination according to internationally accepted auditing standards and the guidelines set out in Section (E). Where the body is appointed the National Audit Office or equivalent, it may delegate some or all of the examination tasks referred to in paragraph 3 provided the tasks are discharged effectively. The Certifying Body in all cases retain the overall responsibility for the task.
6. The check shall be undertaken by both during and after the end of each financial year.
7. the Authorising Officer shall ensur the National that the Certifying Body's certificate on the annual account and the audit report of its finding is referred to in paragraph 1 shall in particular State whethers it has gained reasonable assurance that the accounts to be transmitted to the Commission with true, complete and accurate, and that the internal control procedures have operated satisfactorily. The certificate and the report shall be drawn up by 15 April at the latest of the year following the financial year concerned and communicated by the Competent Authority to the Commission by 30 April at the latest. The Monitoring Committee referred to in article 7 of Section B shall receive a copy of the report.
Article 7 the Commitment and payments from the Commission Only SAPARD assistance granted 1 in accordanc with this Agreement shall be subject to the co-financing by the Community.
2. Payment by the Commission of the Community contribution shall be made in accordanc with the Annual Financing Agreement (s) referred to in article 2 of this agreement to the SAPARD euro account and provided that the verification is referred to in article 9 of this Section have not indicated any problems. The National Authorising Officer shall communicate the details of this account to the Commission as set out in Form 3 D in Section D. 3. Payments shall be posted to the earlies open commitment.
Community budget commitment for the Republic of Latvia shall be made in the Commission's accounts on the basis of the Commission decision authorising signature of each Annual Financing Agreement.
Commitment to a general rule shall be effected annually. The first commitment in the Commission's accounts for the Republic of Latvia shall be made when the Commission decision authorising signature of the Annual Financing Agreement has been taken. Subsequent commitment shall be effected in each year by the Commission decision authorising signature of each Annual Financing Agreement. Each annual commitment shall be set out in the Annual Financing Agreement.
4. The Commission shall automatically be decommi

(a) the entire commitment relating to any year if the signature of the Annual Financing Agreement has not been taken by the end of the following year;
(b) any part of a commitment which has not been settled by the payment on account or for which it has not received a payment application containing all the elements to enable payment by the Commission to paragraph 6 pursuan by the end of the second year following the year of commitment.
5. Subject to available appropriation, the Commission shall make an initial payment on account to the SAPARD euro account. This payment, which may be made in more than one instalmen, shall not exceeds 100 49% of the annual commitment to the Republic of Latvia set out in the first Annual Financing Agreement. The payment shall be made after adoption of the programme, on condition that the SAPARD Agency accreditation has been subject to the Decision referred to in article 3 (1) of this Section, and after this agreement and the Annual Financing Agreement to first have been concluded. The payment shall be repaid in euros with all interest accrued if a payment application from acceptabl in accordanc with article 9 of this Section is received by the Commission within 18 months of the date of the initial instalmen of that payment.
Where the payment on account made is less than the 49%, requests may be submitted to the Commission for additional payments on account within that overall limit, based on the sum of the expenditure declarations referred to in article 8 (1) (b) of this Section, but not yet settled. Subject to availability of appropriation, the Commission shall make further payments on account reflecting the anticipated need.
Throughout the lifetime of the programme, the National Authorising Officer shall use the payment on account only to pay the Community contribution to expenditure in compliance with this agreement. All interest earned on the payment on account shall be used exclusively for the programme.
6. Interim payments, other than those on account, shall be made by the Commission to the expenditure actually paid by reimburs under the program, as certified by the National Authorising Officer in accordanc with article 9 of this Section. Such payments shall be calculated and made at the level of the measure led in the financing of the plan of the Program.
They shall be subject to the following conditions: (a) the latest annual implementation report due, containing the information specified in article 8 (5) of Section (B), must have been forwarded to the Commission;
(b) the mid-term evaluation referred to in article 10 of Section (B) when due, must have been forwarded to the Commission;
(c) expenditure by measure must be consistent with the programme including, where appropriate, flexibility between measure and within the limit of the Community contribution to the Annual pursuan concluded Financing Agreement;
(d) any recommendations as referred to in article 8 (3) of Section B must have been acted upon within the specified period, or where those recommendations are intended to remedy serious shortcomings in the monitoring or management system which undermin proper financial management of the programme, the reasons have been communicated by the Republic of Latvia to explain why no action has been taken; any requests for action by the Commission correctiv must have been acted upon;
(e) account must be taken of the financial consequences of any Decision taken in accordanc with article 11 and article 12 of this Section;
(f) the information requested by the Commission did not clarify the cessary any element relevant to the payment application has been provided.
-The Republic of Latvia and the National Authorising Officer shall be informed immediately by the Commission if any of these conditions is not fulfilled. They shall take the cessary steps to remedy the situation before the payment application is accepted.
7. The combined total of the payments referred to in paragraphs 5 and 6 which are made in respect of the Program, prior to the payment made in accordanc with paragraph 8, shall not exceeds 100 95% of the Community commitment for the Program.
8. The final balance of the programme shall be paid: (a) if the National Authorising Officer to submit to the Commission within six months of the deadline for payment passed down in the final Annual Financing Agreement, a certified statement of expenditure actually paid of in accordanc with article 9 of this Section;
(b) the final report on implementation has been submitted to and approved by the Commission;
(c) when the Decision is referred to in articles 11 and 12 of this Section have been adopted.
Article 8 payments from the SAPARD Agency 1. -The Republic of Latvia shall ensur that payments from the SAPARD Agency to the beneficiary to: (a) the national currency made in and debited as appropriate against the SAPARD euro account. The payable order (s) to the beneficiary (ies) or to their assigne (s) shall as a general rule be issued within 3 working days of this debit, (b) based on the declarations of expenditure incurred by the beneficiary is evidenced by original receipted invoices or other relevant documents where, according to the Program, AIDS is not a function of expenditure. Such declarations shall include only adjustments or, in the case where aid is not a function of expenditure, events occurring from earlier than the date the contract was concluded making the beneficiary under a claiman the Program for the project concerned, except as regards that for feasibility and related studies, but in the case of the projects selected shall relate to contracts concluded by or on behalf of the SAPARD Agency and a beneficiar , and adjustments paid earlier than the date (s) specified in the Commission Decision referred to in article 3 (1) of this Section. Where the original invoice or the other relevant documents referred to in this sub-paragraph are not retained by the SAPARD Agency following receipt, the SAPARD Agency shall ensur that the cop shall be taken and arrangements to be made to ensur that the originals will be made available for audit and inspection purpose.
2. The SAPARD Agency shall ensur that the Community contribution is made simultaneously with any other expenditure by public bodies. However, in the case of the public sector in beneficiar, the Community contribution may be made later than that by other public bodies. In the case of the Community contribution may be made before the contributions by public bodies in the Republic of Latvia.
3. The SAPARD Agency shall ensur that total public expenditure by all public bodies in the Republic of Latvia for each measure and the project is identifiabl in the SAPARD Agency.
4. The SAPARD Agency shall maintain records of each payment which include at least the following information: (a) the amount in national currency, (b) the amount in euro òàæó.
The ratio of Community and national contributions to public expenditure, and of the total public expenditure to total eligible costs, shall be determined in national currency.
5. The SAPARD Agency shall ensur that any amount (s) which it finds has been inadvertently paid in excess of the sum due, noted by it and which have been incorporated in the declaration of expenditure charged to the SAPARD euro account, with a recorded within 3 working days in the SAPARD euro account and deducted from the next application for payment to the Commission referred to in article 9 of this Section.
6. The SAPARD Agency shall ensur a timely treatment of payment requests by beneficiar. In cases where the interval between receipt of the supporting documents needed to make the payment and issuing of the payment order exceeds 100 for three months, Community co-financing may be reduced.
Article 9 Application for payment from the Community 1. The SAPARD Agency shall, on a quarterly basis, the present payment applications in accordanc with the Form D-1 as set out in Section D, signed and certified, and transmitted by the National Authorising Officer, on behalf of the Republic of Latvia, to the Commission within one month of the end of each quarter. However, supplementary applications may be submitted only if justified on the basis of the risk of the net balance in the SAPARD euro account being exhausted before the next quarterly application has been processed.
2. The Commission shall verify the payment applications taking account of article 7 of this Section.
3. the Expenditure declared in the payment applications shall be reimbursed by the Commission within two months of an application being received by acceptabl payment by it provided that: (a) the verification in article 7 (6), and where appropriate article 7 (8) of this Section, have not indicated any problems;
(b) the suspension of payments has been decided concerning the measure (s) that is or are the subject of the application in question;
(c) appropriation to available.
Article 10 exchange rate and interest 1. -The Republic of Latvia shall ensur that the rate recorded for conversion between the euro and the national currency is that for the Republic of Latvia was published by the European Central Bank on the Internet at: C.E.T. 14.15 (a) for payments by the SAPARD Agency, the rate on the last but one working day at the Commission in the month preceding the month during which the expenditure was recorded in the accounts of the SAPARD Agency. The date the payment order is issued to the beneficiary or their Office shall be assigne the date shown in the accounts;
(b) for overpayment by the SAPARD Agency, the rate on the last but one working day at the Commission in the month preceding the month during which the overpaymen was the first to be noted;
(c) for non fixed by the clearance of accounts and conformity clearance Decision, the rate on the last but one working day at the Commission in the month preceding the month during which the Decision was taken;

(d) for debt recovered in accordanc with article 2.8 of this Section 14, the rate on the last but one working day at the Commission in the month preceding the month during which on the the debt was recovered;
(e) for a recovered in accordanc irregularit with article 13 of this Section, the rate on the last but one working day at the Commission in the month preceding the month during which the amount was recovered;
(f) for interest earned on the SAPARD Agency account (s), the rate on the day the interest was credited to the account which must be at least monthly.
In the event that a rate for a day is not published, the rate for the most recent previous working days of publication shall be used.
2. Where the time-limit in the Decision taken to article 11 pursuan and 12 of this Section are not complied with, any outstanding amount shall generate interest at a rate equal to the Euribor rate for three month deposits published by the European Central Bank plus 1.5% points. That rate shall be the monthly average of the month in which those Decisions were taken in.
3. The Republic of Latvia shall ensur that interest earned on the SAPARD euro account is used exclusively for the programme. Accounts related to SAPARD funds held by the SAPARD Agency shall bear interest under normal commercial conditions. Interest earned on those accounts attributabl to the Community contributions shall also be used exclusively for the Program and shall not be subject to any charges or taxes. All interest attributabl to the Community contributions shall be additional to the non included in the Annual Financing agreements and shall be counted as a further contribution by the Community. Appropriate programme changes shall be made to article 7 of pursuan Section b. Article 11 clearance of accounts Decision 1. -The Republic of Latvia shall ensur that the National Authorising Officer shall submit to the Commission, by 30 April at the latest of the year following the financial year concerned, the annual accounts of the SAPARD Agency, accompanied by the information referred to in article 6 (1) of this Section, concerning the SAPARD Agency and the National Fund, and relating to transactions financed under the programme.
2. The accounts referred to in paragraph 1 shall be submitted using the Form set out in the D2 as Section D. 3. Expenditure declared in respect of (a) a given month must relate to payments made less any receipts.
The relevant date for payments shall be the date on which the SAPARD Agency has sent the payment order to a financial Institute or beneficiary or their assigne. The relevant date for receipts shall be the date on which the amount was recorded in this account.
The declared expenditure may include corrections to data reported for previous months in the same financial year.
For a given financial year, all transactions recorded in the accounts of the SAPARD Agency in that year shall be taken into considerations.
4. Where payments due under the programme are encumbered by claims, they shall be deemed to have been made in their entirety within the meaning of the first sub paragraph of paragraph 3:-on the date of the payment of the sum still due to the beneficiary, if the claim is less than the expenditure settled in, on the date of the settlement of the expenditure is , if the latter is less than or equal to the claim.
5. Payment orders not executed and payments debited to the account and then re-credited shall be shown in Form D 2 axis marbles from expenditure in respect of the month during which the failure to execute or the cancellation is reported to the SAPARD Agency.
6. The Commission shall, by 30 September at the latest of the year following the financial year concerned, on the basis of the information referred to in paragraph 1, take a Decision to clear the account of the SAPARD Agency (hereinafter referred to as "the clearance of accounts Decision").
The clearance of accounts Decision shall cover the integrality, accuracy and veracity of the accounts submitted and shall not prejudice the adoption of a subsequent Decision, the conformity clearance pursuan to article 12 of this Section.
The clearance of accounts Decision shall also cover the clearance of the SAPARD euro account and non to be credited to that account in accordanc with article 13 (2) and article 14 (2.8) of this Section.
7. The Commission shall communicate to the Republic of Latvia the results of its verification of the information supplied, together with any amendments it proposes, by 15 July at the latest following the end of the financial year. If, for reasons attributabl to the Republic of Latvia, the Commission is unable to clear the accounts of the Republic of Latvia by 30 September at the latest, the Commission shall notify the Republic of Latvia of further enquiries it proposes to undertak ...
8. The amount fixed by the clearance of accounts Decision shall normally be added to or deducted from the next payment (s) due from the Commission to the Republic of Latvia. However, where the amount to be deducted the fixed by the clearance of accounts Decision 12 the level of possible subsequent payments, the National Authorising Officer, on behalf of the Republic of Latvia, shall ensur that the amount not covered by the balance shall be credited to the Commission in euro within two months of notification of that Decision. The Commission may however, on a case by case basis, decide that any amount to be credited to it shall be offset against payments due to be made by the Commission to the Republic of Latvia under any Community instrument.
Article 12 Conformity clearance Decision 1. The Commission shall take a Decision (hereinafter referred to as "the conformity clearance Decision") on the expenditure to be excluded from Community co-financing where it finds that expenditure has not been effected in compliance with this agreement.
2. When, as a result of any enquiry, the Commission consider that expenditure has not been effected in compliance with this agreement, it shall, before a conformity clearance Decision is taken, notify in writing the National Authorising Officer of the results of it check and indicates the action to be taken to correctiv ensur future compliance. The communication shall make reference, as appropriate, to the relevant articles of this multi-annual Financing Agreement, the Program, the Decision referred to in article 3 (1) of this Section and the Annual Financing Agreement (s).
3. The National Authorising Officer shall reply in writing within two months, and the Commission may modify its position in the consequences. In justified cases, the Commission may agree to extend that period for reply.
After expiry of the period for reply, the Commission shall invite the Republic of Latvia to a bilateral discussion, and both parties shall endeavour to reach an agreement as to the action to be taken and on an evaluation of the gravity of the infringement and the financial loss to the Community. Following that discussion and any deadline after the discussion fixed by the Commission for the provision of further information or, where the Republic of Latvia does not accept the invitation to the meeting before the deadline set by the Commission, after that deadline has passed, the Commission shall formally communicate its conclusions to the Republic of Latvia.
If agreement is reached, from the National Authorising Officer, on behalf of the Republic of Latvia may ask for (a) the procedure provided for in item 9 of Section F to be initiated, with a view to mediating between the positions within a period of respectiv of four months. The results of that procedure shall be set out in a report drawn up by the Acas Body taking account of the provision laid down in item 9 of Section F. The report shall be sent to and examined by the Commission before a Decision is taken the conformity clearance.
4. The Commission shall evaluate the non to be excluded having regard in particular to the degree of non-compliance found. The Commission shall take into account the nature and gravity of the infringement and the exten of the risk of financial loss to the Community.
5. A refusal to finance may not (a) the expenditure for involv measure in respect of which the final payment was effected prior to 24 months preceding the Commission's written communication of the results of the check in it referred in paragraph 2 to the National Authorising Officer. This shall not apply to the financial consequences referred to in axis of irregularit to article 13 of this Section. Where not cessary for the texts of those performance check is not available in English this period shall be extended by the length of time between the Commission requesting documents in English and their receipt.
6 In cases where controls have not correctly been established or executed by the SAPARD Agency, a financial correction may be applied which may include application of flat rate correction to the level of which shall be proportionat to the risk of financial loss for the Community.
7. The amount to be recovered in accordanc with the conformity clearance Decision, shall be communicated to the National Authorising Officer shall, on behalf of the who-the Republic of Latvia, ensur that the amount is credited to the SAPARD euro account within two months of the date the conformity clearance Decision was taken and deducted from the next application for payment to the Commission. The Commission may, however, on a case by case basis, decide that any amount to be credited to it shall be offset against payments due to be made by the Commission to the Republic of Latvia under any Community instrument.
8. The amount to be recovered in accordanc with the conformity clearance Decision shall not be reallocated to the programme.
Article 13 provision of Irregularity and control

1. The Republic of Latvia shall without prejudice to the provision of this agreement, in accordanc with national provision laid down by law, regulation or administrative action take the action does not: (a) satisfy the cessary itself that transactions financed by the programme are actually carried out and executed correctly;
(b) prevent and deal with irregularit;
(c) recover the sum lost as a result of you or not gligenc. irregularit
-The Republic of Latvia shall inform the Commission of action taken for those purpose and in particular of the State of the administrative and judicial procedures.
2. the Sum recovered as it referred in paragraph 1 (c) relating to the Community contribution shall be paid to the accredited SAPARD Agency and deducted by it from the expenditure of which has been financed by the programme.
3. The Republic of Latvia shall make available to the Commission all information required for the proper working of the Program and shall take all action to facilitat suitabl the supervision which the Commission does not consider cessary within the framework of the management of Community financing, including inspection of on-the-spot.
4. Authorised representatives appointed by the Commission to carry out inspection on-the-spot shall have access to the books and all other documents, including information created or stored in electronic form, relating to expenditure financed by the Program Office.
They may, in particular, check: (a) administrative practices with the whethers in accordanc with this agreement;
(b) the requisit whethers the supporting documents exist and tally with the transaction financed by the programme of;
(c) the conditions under which transactions financed by the programme are carried out and checked.
The Commission shall give due notice before the inspection is carried out to the Republic of Latvia. Officials of the Republic of Latvia may take part in the inspection.
5. At the request of the Commission and with the agreement of the Republic of Latvia, the inspection or to inquire concerning the transactions referred to in this agreement may be carried out by the authorities of the Republic of Latvia.
Officials of the Commission may also participat in those inspection or inquires.
6. Without prejudice to paragraphs 1 to 5, the Republic of Latvia shall apply the provision of item 4, item 5, item 6 and item 7 of Section F, concerning the organisation of irregularit and an information system in this field.
Article 14 functions And criteria for accreditation as a SAPARD Agency-the Republic of Latvia shall ensur the SAPARD Agency execute the following: 1. the Function of commitment 1.1 Authorisation and payments: the objective of this function is the establishment of the amount that shall be paid to (a) or to their claiman assigne (s) in compliance with this agreement, in particular those concerning the eligibility of applications for approval and claims for payment with a commitment to compliance entered into concerning project approval, contracting and tendering procedures, and verification of the work carried out or services supplied.
1.2. Execution of payments: the objective of this function is the issuing of an instruction to the Agency's bankers, or, in appropriate cases, a governmental payments Office, to pay the authorised amount to the claiman (or their assigne (s)).
1.3. Accounting for commitment and payments: the objective of this function is the recording of the commitment and payment in the Agency's separate books of accounts of SAPARD expenditure, which will normally be in the form of an electronic data processing system, and the preparation of periodic summaries of expenditure, including the periodic and annual declarations to the Commission. The books of account shall also record details of debt to be recovered.
1.4. Control: the objective of this function is to verify the facts on which applications and claims are based in order to review their compliance with this agreement and the terms and conditions of the commitment between the SAPARD Agency and the beneficiary. Controls shall, where appropriate, include the pre-project selection check, remeasuremen, check the quantity and quality of one good or services delivered, an analysis or a sample control, pre-payment check and any special provision for implementing this agreement as to the eligibility of the expenditure. In order to establish eligibility, controls shall include, where appropriate, the examination of a technical nature, which cant involv economics financial assessments and check of a specific agricultural, technical or scientific nature.
1.5. Reporting: the objective of this function is to ensur that progress of the individual projects and measure the IR reported in a way which helps to ensur the effective and efficient implementation of the measure.
2. Criteria 2.1. The SAPARD Agency's administrative structure shall provide for the separation of the three functions of authorisation, execution and accounting. Each of those functions shall be the responsibility of a separate administrative sub-unit whose responsibilities shall be defined in an organisation chart.
2.2. The SAPARD Agency shall adop a the following procedures or those offering equivalent guarantee: 2.2.1. The SAPARD Agency shall lay down detailed written procedures for the receipt, recording and processing of applications for project approval, claims, invoices and supporting documents and control reports including a description of all documents to be used.
These procedures shall ensur that only claims for payment or projects selected which comply with the selection criteria with the project is processed and shall ensur that maintenance of a project file with all relevant documentation to audit the project.
2.2.2. The division of duties shall be such that the official has responsibility at any of the time, for any project, for more than one of the responsibilities for approving projects, authorising payment, paying or accounting for sum. The work of each official performing one of those tasks shall be supervised by a second official. The responsibilities of each official shall be defined in writing, and shall be, the financial limit set to their authority. Staff training shall be appropriate, and staff in sensitive positions shall be rotated or subject to increased supervision.
2.2.3. Each official responsible for authorisation shall have at their disposal a detailed check-list of the verification required to be undertaken, and in the supporting documents of the claim shall attest that these check will have been performed. This attestation may be made by electronic means subject to the control requirements it referred in point 2.2.6. There shall be evidence of review of the work by a more senior member of staff. The analysis, the appraisal and approval of the projects shall be evidenced in writing. The analysis of the project shall be guided by the principles of sound financial management.
2.2.4. An application or claim shall be authorised only after sufficient check will have been made to verify that it stay with this agreement compl. The check in shall include those required by the provision for each specific measure under which the aid is claimed, and those required to prevent and detect fraud and irregularity with particular regard to the risks presented.
As part of the authorisation function, applications shall be subject to the check for which include the establishment of the adherenc terms and conditions, eligibility, completenes of correctnes of supporting documents, documents, date of receipt.
All check to be undertaken shall be specified in a check-list, and their performance shall be attested for each application and claim, or for each batch of applications or claims.
As regards the services or goods delivered, the control shall be consis of: — the Documentary control: to ensur that data on quantity, quality and price of the goods or services on the invoice reconcil with those ordered;
— Physical control: to ensur that the quantity and quality of the goods or services match those mentioned in the invoice or claim form.
This control of services or goods can also be performed on a continuous basis during the delivery that is to say, when initial or interim payments are made.
2.2.5. Procedures shall ensur that payment is made only to the their bank account, claiman or their assigne them. The payment shall be executed by the Agency's banker, or, as appropriate, a governmental payments Office, or the cheque mailed, as a general rule, within 3 working days of the date of debit against the SAPARD euro account.
All payments for which transfers are not executed, shall be re-credited to the SAPARD euro account within 3 working days of notification of their non-execution.
For non cashed cheque not arising from within the period of their validity, shall be credited to the SAPARD euro account within 3 working days of notification of their non-execution.
Of payments shall be made in cash. The approval of the authorising official and supervisor may be made by electronic means, provided an appropriate level of security is ensured, and the identity of the signatory is entered in the electronic records.
2.2.6. Where applications, claims or invoices are processed using a computer system, access to the computer system shall be protected and controlled in such a way that: (a) all information entered into the system is properly validated to ensur that input errors are detected and corrected and submitted it to the logical check to detect inconsistent or extraordinary data, (b) the data may be entered modified, or validated, except by authorised officials, to whom individual passwords are attributed, (c) the identity of each official entering, or modifying, data or programmes is recorded in an operations log, (d) shall be regularly changed passwords to avoid misus, (e) hard and software changes shall be tested, and approved before implementation, that is, subject to a change management procedure,

(f) computer systems shall be protected from unauthorised access by physical controls, and the data shall be backed up by a cop in stored in a separate, safeguarded location, (g) all data entry shall be checked by logical checks aimed at detecting inconsistent or in extraordinary data, A comprehensive information technology security policy shall be developed on the basis of an approved strategy for information and communication technology to ensur a confidentiality integrity and availability of data, all.
2.2.7. Procedures shall ensur that changes in rates of aid or terms and conditions for the grant of aid are recorded and the instructions, databases and checklists up-dated in good time.
2.3. Part or all of the authorisation and the control function may be delegated to other bodies provided that the following conditions are fulfilled: 2.3.1. The responsibilities and obligations of the other bodies, in particular concerning the control and verification of compliance with this Agreement shall be clearly defined.
2.3.2. The bodies shall have effective systems for ensuring that they fulfil their responsibilities in a satisfactory manner.
2.3.3. The bodies shall confirm to the Agency that they in fact fulfil their responsibilities and the means employed describ.
2.3.4. The SAPARD Agency shall be informed on a regular and timely basis of the results of controls effected, so that the adequacy of the controls may always be taken into account before a claim is settled or an invoice or an ISA paid. The work performed shall be described in detail in a report accompanying each application and claim, batch of applications and claims or, when appropriate, in a report covering one year. The report shall be accompanied by an attestation of the eligibility of the applications and approved claims and of the nature, scope and limits of the work done. The report shall identify physical and administrative check is performed, the method described, the results of all inspection and the action taken in respect of irregularit discrepanc and to reported upon. The supporting documents submitted to the Agency shall be sufficient to provide assurance that all the required checks on the eligibility of the claims or invoices authorised for payment have been performed.
2.3.5. The SAPARD Agency must be satisfied, before the project is approved and before the aid is granted, that the other bodies have followed procedures which comply with the criteria set out in this article.
2.3.6. Criteria for assessing applications and their order of priority shall be clearly defined and documented.
2.3.7. Where documents relating to the claims authorised, expenditure committed and controls effected in as well as those relating to projects not selected are retained by the other bodies, both these bodies and the Agency shall set up procedures to ensur that the location of all such documents that are relevant to specific payments made by the Agency is recorded, and that these documents shall be made available for inspection at the Agency's offices at the request of the persons and bodies who would normally have the right to inspect such documents, including to: (i) the Agency's staff who deal with the claim, (ii) the Agency's internal audit service, (iii) the Certifying Body that evidence in the Agency's annual declaration, (iv) duly authorised agents or representatives of the Community.
2.3.8. Written agreements shall be concluded between the SAPARD Agency and bodies to which functions of the SAPARD Agency have been delegated. Such agreements shall clearly identify the functions to be performed by the delegated body and the type of supporting documents and reports to be sent to the SAPARD Agency within specified time limit. The overall system, including the delegated functions performed by other bodies, shall be set out in an organisation chart.
The agreement shall provide for the access by duly authorised agents or representatives of the Community to information held by these delegated bodies and for the investigation by such officials of applications, including the carrying out of checks on projects and recipients of aid.
2.4. Accounting procedures shall ensur that declarations of expenditure to the Commission are complete, accurate and timely, and that any error or omission is detected and corrected, with in particular through check and reconciliation performed at intervals of not more than three months. A full audit trail for every item entered into the accounts shall be provided.
The SAPARD Agency's accounting procedures shall ensur that the accounting system can produce, in euro and national currency, for each regional office, and for each project, contract or measure and sub-measure, the total cost, the committed expenditure, part payments and balance payments. The deadline shall be set for the cancellation of commitment where work has not been completed within an agreed timetabl. Such cancellation shall be appropriately recorded in the in the accounting system.
2.5. The SAPARD Agency shall ensur the existenc of an internal audit or equivalent service to ensur that the Agency's system of internal control of operate effectively. The internal audit service shall be independent of the Agency's other departments and shall report directly to the Agency's top management. The internal audit service shall verify that procedures adopted by the Agency with the adequat to ensur that compliance with this agreement is verified, and that accounts are accurate, complete and timely. Verification may be limited to selected measure and sub-measure and the sample of transactions provided that an audit plan of ensur that all significant areas, including the departments and bodies responsible for authorisation and those departments and bodies to which functions have been delegated by a period not exceeding a covered over three years. The internal audit service's work shall be performed according to internationally accepted auditing standards, shall be recorded in working papers and shall result in reports and recommendations addressed to the Agency's top management. The audit plans and reports shall be made available to the Certifying Body and the duly authorised agents or representatives of the Community and the financial audit undertak for the sole purpose of appraising the effectiveness of the internal audit function.
2.6. The rules for the procurement by public bodies of services, works and supplies in the Republic of Latvia shall be consistent with the rules set out in the Commission manual entitled "service, Supply and Works contracts, concluded within the Framework of Community co-operation for the Third Countries4. However, the requirement for ex ante approval by the Commission included therein shall not apply.
2.7 For procurement other than that provided for in point 1.6, the following must originat in the Community or in the countries referred to in item 8 of Section F: (i) the services, works, machinery and supplies procured;
(ii) supplies and equipment purchased by a contractor for works or service contracts if the supplies and equipment are destined to become the property of the project once the contract has been completed.
2.8. The Agency shall set up, in respect of the Application, (a) a system for the recognition of all non due and for the recording in a debtor in the ledger of all such debt, including prior to their receipt to irregularit. The debtor shall be inspected at a regular interval for ledger with the aim of taking action to collect the debt are overdu, in particular in the case of guarantee and forfeited payments reimbursed. Without prejudice to article 8 (5) of this Section or any national provision concerning the recovery of debt, any financial contribution charged to the Community in respect of the sum of these shall be written off to irregularit including at the end of the second year following its registration in the ledger of debtor and deducted from the next application for payment as provided for in article 9 of this Section. Any interest recovered by the SAPARD Agency attributabl to the Community contributions in respect of debt recovered shall be recorded in the account (s) the SAPARD Agency and used exclusively for the programme. The SAPARD Agency shall ensur that any recovered with a non credited to the SAPARD euro account within 3 working days of the date of recovery.
2.9. The SAPARD Agency shall publicis the availability of support, making reference to Community co-financing, to all potential project managers and operators so as to obtain as wide as possible selection of potential project a manager and operator. Standard application forms with clear guidelines for completion and conditions for eligibility shall be drawn up in advance of the launch of the scheme. Of the charges shall be imposed on potential or on to a beneficiar beneficiar for information, including application forms, relating to the Program. This provision is without prejudice to the application of charges levied generally in the rest of the economy.
2.10. The SAPARD Agency shall process applications in a timely manner to the from beneficiar.
2.11. The SAPARD Agency shall install an appropriate system to report on the progress of each project and measure towards pre-defined indicators. Where appropriate these indicators shall, with the approval of the Monitoring Committee and subject to Commission approval, be revised.
2.12 where delay in «arise in meeting pre-defined targets, action shall be taken, where appropriate, including withdrawals of approval of a project. Proper records shall be the skipper of all action taken.
2.13 An appropriate management information system shall be used for the speedy generation of appropriate reports on the projects and measure. These reports shall be made available to the Managing Authority, the Monitoring Committee and the Commission on request.
Article 15 Record keeping

The SAPARD Agency and the National Fund shall keep all documents including those relating to projects that have not been selected, at the disposal of the Commission until expiry of the 24 months period referred to in article 12 (5) of this Section. However as regards to referred to in article irregularit 12 (5) and article 13, the documents shall be at the disposal of the Commission until completion of all follow-up work.
The Agency and the National Fund shall ensur that if they do not hold those documents themselves, the documents to be at the disposal of the skipper of the Commission for that period.
4 SEC 1999 http://europa.eu.int/comm/scr/tender/usedoc/index URen.htm 1801/2 on Section (B) management, Monitoring and Evaluation of the Application of article 1 scope this Section sets out the provision for the management, monitoring and evaluation of the programme. -The Republic of Latvia shall ensur that it applies these provision.
Article 2 Definition For the purpose of this agreement: (a) "priority" means one of the principal needs recognised as requiring assistance to attain the objective of the strategy adopted in the programme;
(b) "sub-measure ' means the components making up a measure that may also be subject to specific objective;
(c) "Managing Authority" means the public or private authority or body or unit or section designated by the Republic of Latvia, which may or may not be within the SAPARD Agency, it gathers the information on monitoring and evaluation of the programme and to report this information to the Monitoring Committee and the Commission.
Article 3 the Partnership 1. The programme shall be implemented in close collaboration between the Commission and the Republic of Latvia, together with the authorities and bodies designated by the Republic of Latvia namely: (a) any relevant regional and local authorities and other competent public authorities, (b) the economic and social partners, (c) any other relevant competent bodies to.
2. The collaboration shall be conducted in full compliance with the institutional, legal and financial respectiv is the power of the authorities and bodies designated in accordanc with paragraph 1.
In designating the most representative partnership at national, regional, local or other level, the Republic of Latvia shall create a wide and effective involvement of all the authorities and relevant bodies, according to national rules and practice, taking account of the need to promote equality between men and women and sustainable development through the integration of environmental protection requirements.
All the designated parties, hereinafter referred to as "the partner", the objective of the pursu IR of the Program.
3. the Partnership shall cover the financing, implementing, monitoring and evaluation of the programme. -The Republic of Latvia shall ensur the involvement of the relevant partners for the duration of the Program.
Article 4 Eligibility of expenditure the Expenditure shall be 1. eligible for Community support under SAPARD, only, if in addition to being in conformity with this agreement, the use of SAPARD assistance is also in accordanc with the principles of sound financial management and, in particular, of the economy and cost-effectiveness.
Costa explicitly provided for in the standard draft contract (s) per measure issued by the SAPARD Agency shall apply to the beneficiar. The Commission shall inform the Republic of Latvia of its acceptance or otherwise of the proposed rules within three months of their receipt but from later than the Commission Decision conferring management of aid provided for in article 3 (1) of Section (A) is taken and without prejudice to that Decision.
2. Unless the Commission expressly and explicitly decide otherwise, of the following expenditure is not eligible for Community financing under the Programme for co-: (a) purchase, rent or leasing of land and existing buildings irrespectiv of whethers the lease results in ownership being transferred to the lesse.
(b) Tax, customs and import duties which (i) the recoverabl refunded or offset, by any means whatsoever, (ii) do not form part of the general taxation system in the Republic of Latvia, (iii) bear disproportionately on any part of the Program;
(c) Operating costs including maintenance and rental costs;
(d) Leasing, except where the lease results in ownership being transferred to the lesse.
(e) the costs of any services, supplies and works costing more than 5700 lats for which the beneficiary has not obtained the quotation from at least three suppliers, the originals of these being included in the declaration of expenditure is referred to in the article (8) (b) of Section A;
(f) Bank charges, costs of guarantee and similar charges;
(g) Conversion costs, charges and exchange loss of associated with the SAPARD euro account;
(h) the costs incurred by public administration, including the SAPARD Agency and, in particular, overhead, rental and staff employed on the salar of activities of management, implementation, monitoring and control;
(j) that about of Costa, of architects ', engineers ' and consultants ' fees, legal fees, feasibility studies, acquisition of patents and licences, for preparing and implementing a project, or directly related to the measure, which exceeds 100 12% of the total eligible cost of the project;
(k) Expenditure is related to the products or services that do not respect the provision referred to it in paragraph 2.6 and 2.7 of Section A of article 14;
(l) Expenditure on projects which have generated user or participant fees prior to the project completion without the concerned having been deducted from a non eligible costs;
(m) Promotion, other than Costa in the collective interest.
3. The following may be eligible expenditure is only on the basis of a Decision taken by the Commission following a case-by-case examination which shall be issued within three months of submission of a complete reasoned request to the Commission by the Republic of Latvia: (a) a payment in kind, (b) Expenditure to purchase second-hand equipment, (c), not involving infrastructure Expenditure, incurred by a beneficiary where more than 25% of their capital is held by a public body or bodies.
4. Where specified in the Program, the Republic of Latvia shall ensur that for a given measure, that a project remains eligible for Community financing only if co-it does not, within five years from the date of the final payment by the SAPARD Agency, a substantial modification of the underg. Substantial modification to a project are those which: (a) the nature or affec though its implementation condition or give it to a firm or public body an undu advantage; and (b) result either from a change in the nature of ownership in an item of infrastructure or a cessation or change in location in the productive activity co-financed.
Where any such modification is detected by the Republic of Latvia, shall immediately inform the Commission of it.
5. From the project for which the authorities of the Republic of Latvia, including the SAPARD Agency, have made any marbles, retention or further charge specific to SAPARD, which would reduce non payable or paid to the beneficiary, shall be eligible for co-financing. However, the SAPARD Agency may be deduc from payments due: (a) relating to the outstanding overpayment non under the Program by it, (b) the beneficiar in non owed table by failing to respect for beneficiar conditions attached to payments made previously to them under the Program by the SAPARD Agency.
Article 5 Managing Authority 1. -The Republic of Latvia shall designat a Managing Authority which, without prejudice to Section (A), shall be responsible for the efficiency and correctnes of co-ordination and reporting on the monitoring and evaluation of the programme. The Managing Authority shall consult the SAPARD Agency on all issues relating to implementation.
2. The Managing Authority shall in pursuanc of articles 6 to 11 of this Section, set up a system to gather financial and statistical information on the progress of the programme, if the setting up of such a system is not undertaken by the SAPARD Agency, and shall forward this data to the Monitoring Committee, in accordanc with arrangements agreed between the-the Republic of Latvia and the Commission , using where possible computer systems permitting the exchange of data with the Commission.
3. The Managing Authority shall proposes adjustment of the programme to the Commission after consultation with the SAPARD Agency, where it is not within that Agency, and following agreement by the Monitoring Committee.
4. The Managing Authority shall draw up and, following consultation with the SAPARD Agency, where it is not within that Agency and after obtaining the approval of the Monitoring Committee, submit to the Commission the annual implementation report.
5. The Managing Authority shall organise, in co-operation with the Commission and the Republic of Latvia, the mid-term evaluation referred to in article 10 of this Section.
6. The Managing Authority shall be responsible for the body ensuring that the relevant authorities are informed of the need to make appropriate administrative changes when such changes following a Decision by the required the Commission to amend the Program.
7. The Managing Authority shall each year notify the consul and the Commission, having taken advice from the Monitoring Committee, of the initiative's taken and those to be taken, with regards to informing the general public about the role played by the Community in the Program and its results.
Article 6 Monitoring and Monitoring indicators 1. The SAPARD Agency and the Managing Authority, the latter is whethers or not within the SAPARD Agency, shall ensur is effective monitoring of the implementation of the Programme and shall report to the Monitoring Committee on the progress of the measure and where applicable, sub-measure. The Commission shall review these reports and where appropriate, make recommendations for improvements.

2. Monitoring shall be carried out by reference to physical, environmental and financial indicators and include the data demonstrates that Community funds have not replaced the funding available in the Republic of Latvia. These monitoring indicators, concerning the inputs and the outputs of the programme, shall relate to the specific character of the assistance concerned, its objective and the socio-economic, structural and environmental situation of the Republic of Latvia.
Article 7 the Monitoring Committee the Monitoring Committee 1 A shall be set up by the Republic of Latvia, in agreement with the Managing Authority and if the Managing Authority is not within the SAPARD Agency, the latter and after consultation with the partners referred to in article 3 of this Section, the programme the supervis.
The Monitoring Committee shall as a general rule be set up within three months after the approval of the Program.
2. (A) the representative (or representatives) of the Commission shall participat in the work of the Monitoring Committee in an advisory capacity.
3. The Monitoring Committee shall, in consultation with the Managing Authority, the SAPARD Agency and the Commission, draw up its own rules of procedure. These rules of procedure shall be adopted by the Monitoring Committee at its first meeting. These may be changed by the Monitoring Committee as the need «arise. Such changes shall be communicated in advance to the Commission.
The Chairman of the Monitoring Committee shall be designated by the Republic of Latvia. The designated person shall not hold a position in the SAPARD Agency.
4. The Monitoring Committee shall satisfy itself as to the effectiveness and quality of implementation of the Program in order to attain the specific objective.
5. The Monitoring Committee shall consider and give an opinion on the criteria for selecting and for ranking the projects under each measure. If that opinion is not given in time for it to be taken into account in the Commission Decision referred to in article 3 (1) of Section (A), that Decision may be revised to take account of the opinion of the Monitoring Committee which shall be given and communicated to the Commission within one month of the either a Decision being taken or within one month of the setting up of the Committee , whichever is the later.
6. The Monitoring Committee shall periodically review progress made towards achieving the objective of the set out in the programme. For this purpose, it shall be given the following: (a) information on any sector is where the experienced in finding difficult with normal market outlets at the Community level, (b) information on the results of controls carried out, and, (c) the list and characteristics of approved projects and those not so approved.
7. The Monitoring Committee shall examin the results of the programme, in particular the achievement of the targets set for the different measure and the progress on the utilisation of the financial allocation to those measure and allocation to sub-measure within measure of where the programme includes such allocation. In this regards, the Managing Authority shall ensur that all relevant information on the progress of the measure and, as appropriate, sub-measure, is made available to the Monitoring Committee.
8. The Monitoring Committee shall examin the mid-term evaluation referred to in article 10 of this Section.
9. The Monitoring Committee shall consider and approve the annual and final implementation reports before they are sent to the Commission.
10 the Monitoring Committee shall consider and approve, where appropriate, any proposals to the Commission to amend the Program.
11. The Monitoring Committee proposes to Maya the Commission via the Managing Authority any amendment or review of the programme which is to facilitat likely the attainmen of the objective of the Program.
12. The Monitoring Committee may, following consultation with the Managing Authority, the SAPARD Agency where it is not within that Agency and the Competent Authority, the Commission proposes to any amendment or review of the Programme to improve the implementation of the programme.
13. When required by the Program to give an opinion on any matter, the Monitoring Committee shall act accordingly.
Article 8 Annual and Final reports 1. -The Republic of Latvia shall ensur that, following consultation with the SAPARD Agency, the Managing Authority where it is not within the Agency, within six months, the and you of the end of each full calendar year of implementation to the Commission submit an annual implementation report.
The annual implementation report shall be examined and approved by the Monitoring Committee before being sent to the Commission.
2. Once the Commission has received an annual implementation report, it shall, within a period of indicates two months if the report is considered unsatisfactory, giving its reasons; otherwise, the report shall be deemed to be accepted. In the case of the final report, the Commission shall within five months of responds in a receipt.
3. Every year, when the annual implementation report is submitted, the Commission and the Managing Authority and, where appropriate, the SAPARD Agency shall review the main outcomes of the previous year. The Commission shall consult with the Managing Authority and, where appropriate, the SAPARD Agency, on the arrangements to be defined for such a review.
If, after this review, the Commission makes comments to the Republic of Latvia, shall notify to the Commission the it of the action taken on these comments. Where the Commission, without prejudice to the Decision to be taken to articles 11 and pursuan 12 of Section (A), makes recommendations to the Republic of Latvia for adjustments aimed at improving the effectiveness of the monitoring or management arrangements for the Programme, the Republic of Latvia shall subsequently demonstrates the steps taken to improve the monitoring or management arrangements or it shall explain why it has not so acted.
4. (A) the final report shall be submitted to the Commission, at the latest, six months after the final date of eligibility of the expenditure under the programme.
5. All annual and final implementation reports shall include the following information: (a) any change in general conditions of relevance to the implementation of the programme, in particular the main socio-economic trends, changes in national, regional or sectoral policies, and, where applicable, their implications for the consistency between SAPARD assistance and that from other Community financial instruments;
(b) the progress in the implementation of kesko and measure in relations to the attainmen of the objective of the programme, their specific targets in the programme, with a quantification, wherever and whenever they lend themselves to quantification, of the physical indicators and indicators of results and of impact, in the Program;
(c) the steps taken by the Managing Authority, the SAPARD Agency where appropriate, and the Monitoring Committee to help it to ensur the quality and effectiveness of implementation, in particular: (i) monitoring and evaluation measure, including data collection arrangements;
(ii) a summary of any significant problems encountered in implementing the Programme and any action taken, including that on recommendations for adjustments made to paragraph 3 pursuan;
(iii) the use made of technical assistance;
(iv) the steps taken to ensur a publicity for the Program;
(d) the steps taken to ensur a co-ordination of all the Community pre-accession assistance referred to in article 1 (e) of Section C; Financial tables showing the expenditure per measure and, where appropriate, per sub-measure.
Article 9 Evaluation principles 1. In order to gauge its effectiveness, the programme shall be the subject of mid-term and ex-post evaluation of the impact of their it apprais with respect to the objective of the set out in the programme, and to analyse it in the structural effects.
2. The effectiveness of the measure of the programme shall be assessed on the basis of their overall impact on: (a) contributing to the implementation of the acquis communautaire concerning the Common Agricultural Policy and related policies;
(b) solving priority and specific problems for the sustainable adaptation of the agricultural sector and the rural areas in the Republic of Latvia;
(c) the objective in the Program.
3. The Republic of Latvia shall assemble the appropriate resources and collect the data required to ensur that this evaluation can be carried out in the most effective manner. In this connection, the evaluation shall make use of the various particular that the monitoring arrangements may yield, supplemented where cessary, not by the gathering of information to improve its relevance.
4. Evaluations shall be performed by independent evaluator.
5. Mid-term and ex-post evaluation of the common evaluation questions responds IR defined by the Commission in consultation with the Republic of Latvia and shall, as a general rule, be accompanied by related achievement criteria and indicators. In addition, the evaluation may be required to answer specific questions related to the objective of the Program.
6. The evaluation reports shall explain the methodolog to include an applied and assessment of the quality of the data and the finding.
7. The quality and implications of evaluations shall be assessed by the Managing Authority, the Monitoring Committee and the Commission.
Article 10 Mid-term evaluation 1. -The Republic of Latvia shall, taking account of article 9 of this Section, ensur that a mid-term evaluation of the initial examin results of the programme, their consistency with the ex-ante appraisal, the relevance of the targets and the exten to which they have been attained. It shall also assess the quality of monitoring and implementation.

2. The mid-term evaluation shall be carried out under the responsibility of the Managing Authority, in co-operation with the Commission and the Republic of Latvia. It shall be submitted to the Monitoring Committee in accordanc with article 7 (7) of this Section and shall be sent to the Commission three years after the date of approval of the programme by 31 December 2003, but at the latest.
3. In addition to the assessment referred to in article 9 (7) of this Section, the Commission shall consider the implications of the evaluation with a view to reviewing the programme.
4. The mid-term evaluation shall, where appropriate, be up-dated and submitted to the Commission by 31 December 2005 at the latest.
5. The Commission shall inform the Managing Authority about the follow up to the recommendations in the evaluation report, including any possible up-dates.
Article 11 An Ex-post evaluation ex-post evaluation shall be carried out by the Republic of Latvia in consultation with the Commission under the responsibility of the Managing Authority. On the basis of the evaluation results already available, and taking account of article 9 of this Section, as well as questions relevant to the Program, the ex-post evaluation shall cover the utilisation of resources and the effectiveness and efficiency of the Program, its impact and its consistency with the ex-ante evaluation. It shall cover the factors contributing to the success or failure of implementation, the achievements of the Program and results, including their sustainability.
The ex-post evaluation shall draw conclusions relevant to the Program.
It shall be completed not later than the end of the fourth year following the conclusions of the final Annual Financing Agreement Section (C) General Provision article 1 Co-ordination with other instruments for the Commission and the Republic of Latvia shall ensur-co-ordination of assistance between the Programme, the instrument for Structural Policy for pre-Accession (ISPA), PHARE and assistance from the European Investment Bank (EIB) and other international financial instruments.
-The Republic of Latvia shall ensur in particular that where a SAPARD project, due to its nature, could also be potentially eligible in full or in part for assistance under one of the other instruments referred to in the first paragraph, any sub-risk of expenditure is being aided more than once shall be avoided. For all such projects, and independent of any other action taken by the Republic of Latvia, all receipted invoices referred to in article 8 (b) of Section (A), must be clearly Stampede "SAPARD" by an UN official before being the subject of a payment from the SAPARD Agency.
Article 2 General Privilege of the Republic of Latvia shall ensur that expatriate personnel specifically engaged by the authorities of the Republic of Latvia for the purpose of the Programme and members of their immediate family shall be accorded the benefits of les favourabl, privilege and exemption than those usually accorded to buy in of expatriat-the Republic of Latvia under any other bilateral or multinational agreement or arrangements for economic assistance and technical co-operation programme and to members of their immediate families. The provision of this article do not confer diplomatic status on such personnel.
Article 3 establishment, installation, entry and residence facilities-the Republic of Latvia shall ensur that in the case of supply, works or service contracts, natural or legal persons eligible to participat in the tendering procedures and the technical staff needed to carry out the studies shall be entitled it features temporary installation and residence. They shall enjoy that right from the time an invitation to tender is issued until within one month after the contractor is designated.
-The Republic of Latvia shall permit personnel taking part in the works, supplies or services contracts under the Program and members of their immediate family, to enter the Republic of Latvia to establish themselves in that State, to work there and to leave that State, as the nature of the contract so justif.
Article 4 import and re-export of equipment-the Republic of Latvia shall grant, in a timely manner and without any discriminatory charge, the permit does not cessary for the importation and subsequent re-export of equipment required to execute the Program. This is without prejudice to the right of natural or legal persons importing the equipment to benefit from the system of temporary admission in respect of the said equipment.
Article 5 Exchange and Import controls 1. For the execution of the Program, the Republic of Latvia without discrimination between the undertak-the Member States and the countries listed in item 8 of Section F to grant import authorisation and authorisation for the acquisition of the foreign exchange, and to apply the national exchange control regulations.
2. The Republic of Latvia shall grant a permit in a timely manner not cessary, and without any discriminatory charge, the repatriat fund received in respect of the Application in accordanc with the foreign exchange control regulations in force in the Republic of Latvia.
Article 6 Taxation and customs 1. -The Republic of Latvia shall ensur that imports under supply contracts concluded by the authorities of the Republic of Latvia and the co-financed under the programme shall be allowed to enter the Republic of Latvia without being subject to customs duties, import duties, taxes or fiscal charges having equivalent effect.
-The Republic of Latvia shall ensur that the imports concerned shall be released from the point of entry of delivery as required by the provision of the contract and for immediate use to the contractor as required for the normal implementation of the contract without regard to any delay or the dispute over the settlement of those duties, taxes or charges.
2. The Republic of Latvia shall ensur that personal and household effects imported for personal use by natural persons (and members of their immediate families) other than those recruited locally, engaged in carrying out tasks defined in technical assistance contracts, shall be the main from customs duties, import duties, taxes and other fiscal charges having equivalent effect. Those personal and household effects shall be either re-exported or disposed of in the Republic of Latvia in accordanc with the regulations in force in the Republic of Latvia after termination of the contract.
Article 7 National legal proceedings In the event of suspected or proven failure by a beneficiary to respect obligations in relations to the Program as well as attempts to secure from the SAPARD Agency payments for which there is no entitlement, the Republic of Latvia will pursu all such failures and attempts under national legal procedures in a manner of less rigorous than in instances involving national public funds.
Section (D) Quarterly And Annual declarations Of Expenditure Section (E) guidelines for Certifying Body guidelines for the Annual Certification of the SAPARD Agency subject: guideline referred to in article 6 (5) of Section A of the Annex to the multi-annual Financing Agreement-the form, scope and contents of the certificate and report of the body performing the certification of the SAPARD Agency.
Introduction 1. The object of this paper is to set out guidance regarding requirements of the certification of the account provided for in article 6 of Section A of the Annex to the multi-annual Financing Agreement.
2. The subject of the certification and henc the audit certificate and the audit report, is the SAPARD Agency and all the decentralised and delegated bodies, that is. the processes from registration of the application through their commitment and from registration of the invoice through their payment.
The Audit Certificate 3. The audit certificate should be a brief, clear and explicit statement of the overall conclusions of the body axis of the Certifying Body nominated. Example of audit certificates are presented in the Appendix to this Section.
The Audit Report 4. The scope of the audit report is broader than that of the audit certificate comprising, in addition, statements on whethers: I) the Certifying Body has gained reasonable assurance that the internal control procedures with a theoretically sound and that they operate satisfactorily in the practice;
(II)) the procedures, with particular reference to the accreditation criteria of significant relevance (written procedures, segregation of duties, pre-project and pre-payment check, procurement, commitment and payment procedures, accounting procedures, computer security, internal audit), give reasonable assurance that the projects comply with the SAPARD charged the multi-annual Financing Agreement;
(Iii)) all the accreditations criteria of significant relevance continue to be fulfilled as required for the conferral of management of aid the Commission in article 3 (1) of Section A of the Annex to the multi-annual Financing Agreement; and (IV)) the financial interests of the Community are properly protected.
The report should also set out any recommendations and indicates the exten to which, and how, they (and those of previous years, as appropriate) have been addressed.
5. Content of report I) Internal control procedures the report should set out the evidence obtained by the Certifying Body that throughout the period under audit, the internal controls have operated in practice as well as in theory; have applied it to all the transactions intended; and have resulted in the correction of errors. The report should include a statement on internal control procedures which should draw attention to any serious weaknesses found in the design or operation of the controls, with particular reference to factors that may diminish the effectiveness of the internal control procedures such as: — the potential for control to be overridden by the responsible Office official;

-incorrect application of the controls due to wrong interpretation or carelessnes; and — the development of the non-standard procedure.
The internal audit function is a key element of the internal control environment. As such it Merritt for a specific chapter in the audit report. The report should consider the independence, competence and effectiveness of the internal audit, and the following, in particular: the scope of responsibilities; rights of access to the Head of the SAPARD Agency and to all records, personnel and premises (including decentralised and delegated bodies); the exclusion of members of the internal audit unit from day to day operational actions. staffing (competence, training and experience); Planning (needs assessments, risk based approach, cycle of audit coverage); documentation (will the rational for test and conclusions be adequately recorded, with the supporting papers held); audit evidence (will ensur it is sufficient for the subject, relevant and reliable); is there a subject with adequat for quality assurance; reports (with the adequat in conception and they will the procedures they will be timely by ensur) and conclusions as to the audit plan.
(II) procedures for ensuring compliance) with the multi-annual Financing Agreement.
This point concerns authorisation. Transactions processed by the SAPARD agencies governed by complex rules. The risks arising inheren requires the SAPARD Agency to establish mitigating controls including the use of written procedures, checklists and detailed re-performance or review by another official.
The report should include a statement on procedures for ensuring compliance with the multi-annual Financing Agreement (by measure and if applicable, the sub-measure) for each procedure stating whethers the relevant controls have proved sufficiently robust for reliance to be placed upon them during the period under audit. Where it is concluded that (a) the procedure has not provided the cessary assurance, not the important element of the control failure should be noted.
Accreditations criteria III) of significant relevance to the report should state the exten to which the SAPARD Agency and decentralised and delegated bodies have fulfilled all the accreditation criteria of significant relevance (written procedures, segregation of duties, pre-project and pre-payment check, procurement, commitment and payment procedures, accounting procedures, computer security, internal audit) as required for the Commission conferral of management of aid in article 3 (1) of Section A of the Annex to the multi-annual Financing Agreement and what action (and its timing and duration), if any, is to be undertaken by the SAPARD Agency or decentralised/delegated to address any shortcomings in the body.
IV) the protection of the financial interests of the Community this point concerns, in particular, the non to be collected (debtor). The key objective of pertinen control include the correct and timely posting of all debtor ' transaction to a debtor ' ledger; debt offset from other payments to which the SAPARD beneficiar with in debt; and the correct posting of all receipts from debtor.
In general, the report should also include a statement on the protection of the financial interests of the Community for each procedure whethers stating the relevant controls have proved sufficiently robust for reliance to be placed upon them. Where it is concluded that (a) the procedure has not provided the cessary assurance, not the important element of the control failure should be noted.
(V) recommendations recommendations for Any improvements should be classified by reference to the level of importanc, which the Certifying Body should be attributed to each of the believe the situation. For ease of presentation the following classification is proposed: — Major: recommendations which require immediate attention by the Head of the SAPARD Agency;
-Intermediate: recommendations which are significant in the context of the control environment of the SAPARD Agency and which require immediate attention by Senior management;
— Minor: recommendations for which action should be taken to ensur full compliance with the accreditation criteria.
The report should set out for each recommendations, the procedure and policy questions requiring attention and the reply of the SAPARD Agency.
6. the report outline It would assist the Commission in its processing of the reports on the certification if (a) the standard outline were followed such as indicated below.
Executive Summary: comprising the opinion, the summary statements on each of the points I, II, III, and IV mentioned above & sections on major and intermediate recommendations.
General Introduction (I) the Internal control procedures: an assessment of the change control; the internal audit function; statement on internal control procedures, together with evidence.
(II) procedures for ensuring compliance with the multi-annual Financing Agreement: an assessment of the key controls; statement on procedures for ensuring compliance with the multi-annual Financing Agreement, together with evidence.
(Iii) the Accreditation criteria of significant relevance: an assessment of the exten to which the SAPARD Agency will fulfil all the accreditation criteria of significant relevance (written procedures, segregation of duties, pre-project and pre-payment check, procurement, commitment and payment procedures, accounting procedures, computer security, internal audit) as required by the article 14 of Section A of the Annex to the multi-annual Financing Agreement.
(IV) procedures for the protection of the financial interests of the Community: an assessment of the key controls; statement on procedures for the protection of the financial interests of the Community, together with evidence.
General conclusions recommendations Annex For each of the measure/sub-measure and common function (e.g. accounts, Inspection Service, the Internal audit, IT), the annex should set out the work done for each control objective including a description of the control objective, the control mechanisms, the file structure (to determin if it comprised the required primary evidence/documents not cessary to support the claim), finding, evaluation, conclusions and detailed recommendations.
A list of recommendations should be prepared with at least the following information: reference report/recommendations/status/action.
 
The Appendix Section E Example of audit certificates to be issued by the Certifying Body 5 Opinion of the negatives of the matrix: Limited objection to objection to the conclusions from the scope of the Unqu-Qualified adverse lified (E) limitations (A) (B) scope of the limitations of Qualified Discl-(C) mer (D) a. UNQUALIFIED We have audited the annual accounts of the expenditure declared to the Commission as expenditure is incurred for the Program for the 200 x financial year by [name and address of the SAPARD Agency]. Our responsibility, acting as Certifying Body, is to express an opinion on the annual accounts based on our audit.
We conducted our audit in accordanc with internationally accepted auditing standards and article 6 of Section A of the Annex to the multi-annual Financing Agreement. We planned and performed to obtain reasonable audio the assurance about the whethers accounts transmitted to the Commission by free of material misstatemen. The audit included examination, on a test basis, of evidence supporting the information in the annual accounts, the records of the examination of United Nations commitment to procedures and of a sample of transactions. The audit covered compliance of payments with the multi-annual Financing Agreement only as regards the capability of the SAPARD Agency's administrative structures to ensur that such compliance has been checked before payment is made. Our audit provides a reasonable basis for our opinion.
In our opinion the accounts to be transmitted to the Commission for the financial year 200 x (dated DD/MM/YYYY) with true, complete and accurate.
Our audit was conducted between DD/MM/YYYY and DD/MM/YYYY. (A) report on our finding is delivered at the same date as the date of this certificate.
[date of issue + signature, name and position + name and address of Certifying Body]
 
B. QUALIFIED — the DIFFERENCE We have DETECTED the audited annual accounts of the expenditure declared to the Commission as expenditure is incurred for the Program for the 200 x financial year by [name and address of the SAPARD Agency]. Our responsibility, acting as Certifying Body, is to express an opinion on the annual accounts based on our audit.
We conducted our audit in accordanc with internationally accepted auditing standards and article 6 of Section A of the Annex to the multi-annual Financing Agreement. We planned and performed to obtain reasonable audio the assurance about the whethers accounts transmitted to the Commission by free of material misstatemen. The audit included examination, on a test basis, of evidence supporting the information in the annual accounts, the records of the examination of United Nations commitment to procedures and of a sample of transactions. The audit covered compliance of payments with the multi-annual Financing Agreement only as regards the capability of the SAPARD Agency's administrative structures to ensur that such compliance has been checked before payment is made. Our audit provides a reasonable basis for our opinion.
Difference between the detected were of the annual accounts and the books and records of the SAPARD Agency for the following measure/sub-measure (reference: audit report page P): [measure/difference (+/-) in the national sub-measure currency euro Farm machinery-& 23,000 CCC/100 (e)] In our opinion, except for the difference in described in the preceding paragraph, the accounts to be transmitted to the Commission for the EAGGF financial year 200 x (dated DD/MM/YYYY) with true , complete and accurate.
Our audit was conducted between DD/MM/YYYY and DD/MM/YYYY. (A) report on our finding is delivered at the same date as the date of this certificate.

[date of issue + signature, name and position + name and address of Certifying Body]
 
C. QUALIFIED OPINION — LIMITATIONS ON scope We have audited the annual accounts of the expenditure declared to the Commission as expenditure is incurred for the Program for the 200 x financial year by [name and address of the SAPARD Agency]. Our responsibility, acting as Certifying Body, is to express an opinion on the annual accounts based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordanc with internationally accepted auditing standards and article 6 of Section A of the Annex to the multi-annual Financing Agreement. We planned and performed to obtain reasonable audio the assurance about the whethers accounts transmitted to the Commission by free of material misstatemen. The audit included examination, on a test basis, of evidence supporting the information in the annual accounts, the records of the examination of United Nations commitment to procedures and of a sample of transactions. The audit covered compliance of payments with the multi-annual Financing Agreement only as regards the capability of the SAPARD Agency's administrative structures to ensur that such compliance has been checked before payment is made. Our audit provides a reasonable basis for our opinion.
Owings it [for example] the nature of the records of the SAPARD Agency/Delegated Body etc., we were unable to satisfy the axis it ourselv [the nature of other problem] event by the other recourses audit procedures (reference: audit report page P).
In our opinion, except for the effects of such adjustments, if any, as might have been determined to be not cessary had we been able to satisfy ourselv axis [the nature of other problem], the accounts to be transmitted to the Commission for the EAGGF financial year 200 x (dated DD/MM/YYYY) with true, complete and accurate.
Our audit was conducted between DD/MM/YYYY and DD/MM/YYYY. (A) report on our finding is delivered at the same date as the date of this certificate.
[date of issue + signature, name and position + name and address of Certifying Body]
 
D. DISCLAIMER OF OPINION — limitations ON scope We have audited the annual accounts of the expenditure declared to the Commission as expenditure is incurred for the Program for the 200 x financial year by [name and address of the SAPARD Agency]. Our responsibility, acting as Certifying Body, is to express an opinion on the annual accounts based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordanc with internationally accepted auditing standards and article 6 of Section A of the Annex to the multi-annual Financing Agreement. We planned and performed to obtain reasonable audio the assurance about the whethers accounts transmitted to the Commission by free of material misstatemen. The audit included examination, on a test basis, of evidence supporting the information in the annual accounts, the records of the examination of United Nations commitment to procedures and of a sample of transactions. The audit covered compliance of payments with the multi-annual Financing Agreement only as regards the capability of the SAPARD Agency's administrative structures to ensur that such compliance has been checked before payment is made. Our audit provides a reasonable basis for our opinion.
We were not able to examin the underlying procedure payments effected by the bodies with delegated responsibilities due to limitations placed on the scope of our work by the SAPARD Agency (reference: audit report page P).
Because of the significanc of the matters discussed in the preceding paragraph, we do not express an opinion on whethers the accounts to be transmitted to the Commission for the EAGGF financial year 200 x (dated DD/MM/YYYY) with true, complete and accurate.
Our audit was conducted between DD/MM/YYYY and DD/MM/YYYY. (A) report on our finding is delivered at the same date as the date of this certificate.
[date of issue + signature, name and position + name and address of Certifying Body]
 
E. adverse OPINION We have audited the annual accounts of the expenditure declared to the Commission as expenditure is incurred for the Program for the 200 x financial year by [name and address of the SAPARD Agency]. Our responsibility, acting as Certifying Body, is to express an opinion on the annual accounts based on our audit.
We conducted our audit in accordanc with internationally accepted auditing standards and article 6 of the Section A of the Annex to the multi-annual Financing Agreement. We planned and performed to obtain reasonable audio the assurance about the whethers accounts transmitted to the Commission by free of material misstatemen. The audit included examination, on a test basis, of evidence supporting the information in the annual accounts, the records of the examination of United Nations commitment to procedures and of a sample of transactions. The audit covered compliance of payments with the multi-annual Financing Agreement only as regards the capability of the SAPARD Agency's administrative structures to ensur that such compliance has been checked before payment is made. Our audit provides a reasonable basis for our opinion.
The expenditure is declared by the SAPARD Agency does not agree with payments and receipts effected during the period (reference: audit report page P).
In our opinion, because of the effects of the matters described in the preceding paragraph, the accounts to be transmitted to the Commission for the EAGGF financial year 200 x (dated DD/MM/YYYY) not true, complete and accurate.
Our audit was conducted between DD/MM/YYYY and DD/MM/YYYY. (A) report on our finding is delivered at the same date as the date of this certificate.
[date of issue + signature, name and position + name and address of Certifying Body] 5 International Standard on Auditing cf. and Related Services From. 13 (ISA 13) issued by the International Federation of Accountants (IFAC).
Section F-text of Community Legislation referred to in Regulation (EC) No. 2222/2000 on Financial rules for SAPARD adapted for this agreement 6 (a) (b) (c) (d) (e) the item (or the Sec-article About-Provision to be applied by the Republic of Latvia From.
tion item no.)
graph as provided for in the agreement (1) (A) 3 1 the Commission may decide on the basis of a case-by-case analysis of national and sectoral programme/project management capacity, financial control procedures and structures regarding public finance, waiv the ex-ante approval requirement referred to in item 2 and confer on implementing agencies in applicant countries management of aid on a decentralised basis. Such a waiver shall be subject to:-the minimum criteria for assessing the ability of implementing agencies in applicant countries to manage aid and minimum conditions applicable to such agencies as set out in item 3;




specific provision for immigrants, and, inter alia, the invitation to tender, scrutiny and evaluation of tenders, the award of contracts and the implementation of Community public procurement directives, which shall be put down in financing agreements with each beneficiary country.
2 F item 1 project selection, tendering and contracting shall be subject to ex-ante approval by the Commission.
3 (A) of article 3 1.
Minimum criteria and conditions for decentralising management to Implementing agencies and item 1 in the applicant countries 1. Minimum criteria for assessing the ability of implementing agencies in applicant countries to manage aid.




The following criteria shall be applied by the Commission in assessing which Implementing agencies in partner countries to able to manage aid on a decentralised basis: (i) there should be a well-defined system for managing the Program with full internal rules of procedure, clear institutional and personal responsibilities;




(ii) the principle of separation of powers must be respected so that there is no risk of conflict of interest in procurement and payment;




(iii) the personnel must be adequat available and assigned to the task. They must have the skills and auditing suitabl experience, language skills and be fully trained in implementing Community programmes.




2. Minimum conditions for decentralising management to implementing agencies in applicant countries.




Decentralisation to applicant countries with ex post control by the Commission may be considered for an implementing agency where the following conditions are met: (i) demonstration of effective internal controls including an independent audit function and an effective accounting and financial reporting system which meets internationally accepted audit standards;




(ii) a recent financial and operational audit showing effective and timely management of Community assistance or national measure of similar nature;




(iii) a reliable national financial control system over the implementing agency;




(iv) procurement rules which are endorsed by the Commission as meeting the requirements of title IX of the Financial Regulation applicable to the general budget of the European Communities (see article 14 of Section 2.6 of the Annex A to this Agreement);




(g) the commitment by the National Authorising Officer to bear the full financial responsibility and liability for the Program.




This approach shall not prejudice the right of the Commission and the Court of Auditors to check the adjustments.
4 (A) of article 13 6 item 4 the provision of this item shall not effect the applications in the Republic of Latvia of criminal proceedings relating to rules or judicial co-operation between the applicant countries listed at item 8 and the Member States.




Sub-item 4.1 where the Commission decide to carry out on-the-spot check and inspection under this item, it shall ensur that similar check and inspection is not being carried out at the same time in respect of the same facts with regard to the economic operators concerned (see item 6).





In addition, it shall take into account the inspection in progress or already carried out in respect of the same facts with regard to the economic operator concerned, by the Republic of Latvia on the basis of its legislation.




Sub-item 4.2 On-the-spot check shall be prepared and conducted an inspection and by the Commission in close co-operation with the authorities of the Republic of Latvia, which shall be notified in good time of the object, purpose and legal basis of the check and inspection, so that they can provide all the requisit help. To that end, the officials of the Republic of Latvia may participat in the on-the-spot check and inspection.




In addition, if the Republic of Latvia so wishes, the on-the-spot check and inspection may be carried out jointly by the Commission and the Republic of Latvia's authorities responsible of.




Sub-item 4.3 On-the-spot check shall be the inspection and carried out by the Commission on the economic operator to whom administrative measure and penalties may be applied to item 6, pursuan to where there are reasons to think that you have been "committed" irregularit.




In order to make it easier for the Commission to carry out such check and inspection, the operator shall be required to the economic grant access to premises, land, means of transport or other areas, used for business purpose.




Where not strictly in order to establish whethers cessary an irregularity exists, the Commission may carry out on-the-spot check and inspection on other economic operators concerned, in order to have access to information held by pertinen those operators on facts subject to on-the-spot check and inspection.




Sub-item 4.4 4.4.1. On-the-spot check shall be the inspection and carried out on the Commission's authority and responsibility by its officials or other servants, duly empowered, hereinafter called ' Commission inspector '. Persons placed at the disposal of the Commission as national experts may assist the secondmen in one such check and inspection.




Commission inspector shall exercise their powers in one production of a written authorisation showing their identity and position, together with a document indicating the subject matter and purpose of the on-the-spot check or inspection.




Subject to the respect of this agreement, they shall be required to comply with the rules of procedure put down by the law of the Republic of Latvia.




4.4.2 subject to respect of this agreement, the Commission may, with the agreement of the Republic of Latvia seek the assistance of officials from the other applicant countries listed at item 8 a sharp observer and call on outside bodies acting under its responsibility to provide technical assistance.




The Commission shall ensur that the aforementioned officials and bodies give every guarantee as regards technical competence, professional independence and observanc of secrecy.




Sub-item 4.5 4.5.1 the Commission inspector shall have access to, without prejudice to the provision of this agreement and under the same conditions as national administrative inspector and in compliance with national legislation, to all the information and documentation on the operations concerned which are required for the proper conduct of the on-the-spot check and inspection. They may themselves availa ... of the same inspection facilities as national administrative inspector and in particular copy relevant documents.




On-the-spot check and inspection may concern, in particular: – professional books and documents such as invoices, lists of terms and conditions, pay slip, statements of materials used and work done, and bank statements held by economic operators, computer data, production, packaging and dispatching systems and methods, physical check as to the nature and quantity of goods or completed operations, — the taking and checking of samples of -the progress of works and investments for which financing has been provided, and the use made of completed investments, industry and accounting documents, — the financial and technical implementation of subsidised projects.




4.5.2. Where it shall be not cessary for the Republic of Latvia, at the Commission's request, to take the appropriate measure of the banks under national law, without prejudice to this agreement, in particular in order to safeguard evidence.




Sub-item 4.6 4.6.1. Information communicated or acquired in any form under this item shall be covered by professional secrecy and protected in the same way as similar information is protected by the national legislation of the country that received it and by the provision of òàæó applicable to the Community institutions.




Such information may not be communicated to persons other than those within the Community institutions or in the Republic of Latvia whose functions require them to know it nor may it be used by Community institutions for the purpose of others than it is effective protection ensur of the communities ' financial interests in the applicant countries and Member States. Where-the Republic of Latvia intends to use for other purpose of information obtained by officials participating under its authority as observer, in accordanc with Sub-item 4.4 2, in on-the-spot check and inspection, it shall seek the agreement of the country where that information was obtained.




4.6.2 the Commission shall report as soon as possible to the relevant authority of the State within whose territory an on-the-spot check or inspection has been performed any fact or suspicion relating to an irregularity which has come to its notice in the course of the on-the-spot check or inspection. In any event the Commission shall be required to inform the aforementioned authority of the result of such check and inspection.




4.6.3. Commission inspector shall ensur that will, without prejudice to the provision of this agreement, in drawing up their reports account is taken of the procedural requirements laid down in the national law of the Republic of Latvia. The material and supporting documents as referred to in Sub-item 4.5 shall be annexed to the said reports. Where an inspection is carried out jointly, to the second subparagraph pursuan of Sub-item 4.2, the national inspector who took part in the operation shall be asked to countersign the report drawn up by the Commission's inspector.




4.6.4. The Commission shall ensur that, when implementing this item, it will comply with the Community and national inspector "provision on the protection of personal data.




4.6.5 where the economic operator referred to in Sub-item 4.3 resist an on-the-spot check or inspection, the Republic of Latvia, acting in accordanc with national rules and without prejudice to the provision of this agreement, shall give the inspector such assistance by the Commission as they need to allow them to discharge their duty in carrying out an on-the-spot check or inspection.




It shall be for the Republic of Latvia to take any measure not in conformity with cessary, national law.
5 (A) of article 13 (b) ' Irregularity ' shall mean any infringement of a provision of this agreement resulting from an act or omission by an economic operator (see item 6), which has, or would have, the effect of prejudicing of the Community or by an unjustified item of expenditure.
6 (A) in item 4 administrative measure and penalties may be applied to the economic and 5 operators namely all natural or legal persons or other bodies recognised by national law (private individual, enterprises, public establishment or State regional and local authorities), where their activity may have led them via an irregular application of this agreement to attempt or harms the Community contributions and also the natural or legal persons who have been involved in the commission of the irregularity or who is expected to answer for an irregularity to avoid it being committed.
(A) article 13 6 7 Sub-item 7.1 7.1.1. Notification of irregularit arising out of the Community financing shall be given in accordanc with the provision laid down in this item. These provision shall not be affec the applications in the Republic of Latvia of criminal proceedings relating to rules or judicial co-operation between the applicant countries listed at item 8 and the Member States in criminal matters.




Sub-item 7.2.




7.2.1. The Republic of Latvia shall communicate to the Commission within three months of the conclusion of the multi-annual Financing Agreement: — the provision laid down by law, regulation or administrative action for the application of the measure of under article 13 (1) of Section A of the Annex to this agreement, the list of authorities and bodies responsible for the application of the measure's under the said article 13 (1) of Section A of the Annex to this agreement the provision of a change relating to the role and functioning of those authorities and bodies and to the procedures which they are responsible for applying.




7.2.2. The Republic of Latvia shall communicate forthwith to the Commission any amendments to the information supplied in the pursuanc of Sub-item 7.2.1.




7.2.3. The Commission shall study-the Republic of Latvia's communications and shall inform them of the conclusions which it intends to draw therefrom it. It shall remain in contact with the Republic of Latvia to the exten to cessary for the application of the provision of this item.




Sub-item 7.3 7.3.1. During the two months following the end of each quarter, the Republic of Latvia shall report to the Commission any irregularit, which have been the subject of initial administrative or judicial investigations.




To this end they shall as far as possible give details concerning:-the provision which has been infringed,





-the nature and amount of the expenditure; in cases where no payment has been made, the non of which would have been wrongly paid had the irregularity not been discovered, except where the error or gligenc is not detected before payment and does not result in any administrative or judicial penalty, — the total amount and it distribution between the different sources of financing, the project and measure concerned, — the period during which , or the moment at which, the irregularity was committed, — the practices employed in committing the irregularity, the manner in which the irregularity was discovered, the national authorities or bodies which drew up the official report on the irregularity, — the financial consequences, the suspension of any of payments and the possibilities of recovery, — the date and source of the first information leading to suspicion that an irregularity was in evidence , — the date on which the official report on the irregularity was drawn up, where appropriate, the Republic of Latvia and the other countries involved, — the identity of the natural and legal persons involved, save in cases where such information is of relevance in combating irregularit from to on account of the character of the irregularity.




7.3.2 where some of the information referred to in Sub-item 7.3.1, and in particular that concerning the practices employed in committing the irregularity and the manner in which it was discovered, is not available, the Republic of Latvia shall as far as possible supply the missing information when forwarding subsequent quarterly reports of irregularit to the Commission.




Sub-item 7.4-the Republic of Latvia shall report forthwith to the Commission any irregularit discovered or supposed to have occurred, where it it is feared that (a) they may very quickly have repercussions outside its territory, and/or (b) they show that a new edge to be fraudulen-practice has been employed.




Such a report shall, where no cessary, be sent simultaneously to the other relevant applicant countries and Member States.




Sub-item 7.5 7.5.1. During the two months following the end of each quarter, the Republic of Latvia shall inform the Commission, with reference back to any previous report made under Sub-item 7.3., of the procedures instituted following all the previously notified and of irregularit important changes resulting therefrom, including: — the non of which have been, or are expected to be, recovered, the interim measure taken by the banks in the Republic of Latvia for the recovery of wrongly paid safeguards sum -the judicial and administrative procedures instituted with a view to recovering the sum wrongly paid and to imposing sanctions, the reason for any abandonmen of recovery procedures; the Commission shall, as far as possible, be notified before a decision is taken, any criminal prosecution of abandonmen.




-The Republic of Latvia shall notify the Commission of administrative or judicial decisions, or the main points thereof, concerning the termination of these procedures.




7.5.2. Without prejudice to article 14 (A) of Section 2.8 of the Annex to this agreement, where the Republic of Latvia consider that an amount cannot be totally recovered, or cannot be expected to be totally recovered, it shall inform the Commission, in a special report, of the amount not recovered.




In the eventuality referred to 7.5.3 in 7.5.2, without prejudice to the article of A Section 14.2.8, the Commission may expressly request the Republic of Latvia to continue the recovery procedure.




7.5.4 where the authorities of the Republic of Latvia shall decide, at the express request of the Commission, the initiat or continue legal proceedings with a view to recovering the wrongly paid, the non Commission, without prejudice to the article of A Section 14.2.8, may it reimburs to undertak-the Republic of Latvia all or part of the legal costs and costs arising directly from the legal proceedings on presentation of documentary evidence that, even if the proceedings are unsuccessful.




Sub-item 7.6 Should there be from the report in the irregularit reference period-the Republic of Latvia shall inform the Commission of this fact within the same time limit as is set out in Sub-item 7.3.1.




Sub-item 7.7 7.7.1. The Commission shall maintain appropriate contacts with the Republic of Latvia for the purpose of supplementing the information supplied on the basis referred to in Sub-irregularit item 7.3 on the procedures referred to in Sub-item, and, in particular, the 7.5 on the possibility of recovery.




7.7.2. Independently of the contacts mentioned in Sub-item the Commission shall inform the 7.7.1.-the Republic of Latvia where the nature of the irregularity is such as to suggest that identical or similar practices could occure in other countries.




7.7.3. The Commission shall organise information meetings for representatives of the applicant countries listed in item 8 in order to examin with them the information obtained to the sub-items pursuan 7.3, 7.4 and 7.5, and the Sub-item pursuan 7.7., in particular with regard to the lessons to be learned therefrom in connection with preventive measure of irregularit, and legal proceedings.




7.7.4 At the request of the Republic of Latvia or of the Commission, the Republic of Latvia and the Commission shall consult each other for the purpose of closing any of the Community interests loophol question 2(a), which become apparen to in the course of the enforcement of the provision.




Sub-item 7.8 7.8.1. -The Republic of Latvia and the Commission shall take all precaution not to ensur cessary that the information which they exchange remains confidential.




7.8.2. The information referred to in this item may not, in particular, be sent to persons other than those in the Republic of Latvia or within the Community institutions whose duties require that they have access to it, unless the country supplying it has expressly so agreed.




7.8.3. The names of natural or legal persons may be disclosed to another applicant country listed in item 8, a Member State or Community institution only where this is not in order to prevent or cessary prosecut an irregularity or to establish an alleged irregularity has taken place whethers.




7.8.4. Information communicated, or acquired in any form whatever pursuan to this item shall be covered by professional confidentiality and be protected in the same way as similar information is protected by the national legislation of the country that received it and by the provision of òàæó applicable to the Community institutions.




In addition, that information may not be used for any purpose other than those of the provided for in this item unless the authorities that have provided it have given their express consent, and provided that the provision in force in the country in which the recipient authority is to be found do not to use such communications or prohibi.




7.8.5. Sub-items 7.8.1. it shall note 7.8.4 imped the use, in any legal actions or proceedings subsequently instituted for non-compliance with this agreement, of information obtained this item pursuan to. The relevant authority of the country which supplied this information shall be informed forthwith of such, USA.




7.8.6. Where the Republic of Latvia to the notifu Commission that a natural or legal person whose name has been communicated to the Commission to this item pursuan prov on further inquiry not to be involved in any irregularity, the Commission shall forthwith inform all those to whom it disclosed that name pursuan to this item of that fact. Such person shall thereupon cease to be treated, by virtue of the earlier notification, as a person involved in the irregularity in question.




Sub-item 7.9 the non recovered shall be shared by the Republic of Latvia and the Community in proportion to the expenditure already incurred by them provided by the debt has not been written off in accordanc with the rule in article of Section 14.2.8 A of the Annex to this agreement.




Sub-item 7.10 7.10.1. Where the sum of them relate to irregularit of less than Lats 2280 charged to the Community budget, the Republic of Latvia shall not forward to the Commission the information provided for in Sub-items 7.3 and 7.5, unless the latter expressly requests it.
8 (A) of article 14 2.6 Republic of Bulgaria, the Czech Republic, the Republic of Estonia, Hungary, Republic of Latvia, the Republic of Lithuania, Poland, Romania, the Republic of Slovakia and the Republic of Slovenia (A) article 12 3 9 Sub-item 9.1 9.1.1. The task of the Acas, the Body shall be: (a) any matter referred to examin it it by the Republic of Latvia which, following a finding the article 12 pursuan of Section A of the Annex to this agreement and bilateral discussion of those receive formal notification of the finding, from the Commission, with reference to article 12 of Section A and this item of this Section , of the conclusion that certain items of expenditure incurred by the-the Republic of Latvia are not chargeabl to the Program, (b) to try it the divergen reconcil the positions of the Commission and the Republic of Latvia, and (c) at the end of its investigations, to draw up a report on the outcomes of its efforts at reconciliation, making any remarks it is useful should all or deemas som of the points of dispute remain unresolved.




9.1.2. For the purpose of the subsequent stage of the clearance of accounts procedure: (a) the position of the Body shall be without prejudice to the Commission's final Decision on the clearance of the accounts;




(b) the fact of not referring a matter to the Body shall not be question 2(a) to the country which receive the notification from the Commission within the meaning of the Sub-item 9.1.1 (a).





Sub-item 9.2 9.2.1. -The Republic of Latvia must refer a matter to the Body within thirty working days of its receipt of notification as referred to in Sub-item 9.1 1 (a), by sending a reasoned request for Acas to the Secretariat of the Body Acas, the address of which will be notified to the Republic of Latvia in that Communication.




9.2.2 A request for Acas is admissibl only where the financial adjustment recommended by the Commission in respect of a measure: either, exceeds 100 million Euro-0.5; or — a more than 25% represent of the Republic of Latvia's total annual expenditure under the measure is concerned.




In addition, if, during the bilateral discussions referred to in Sub-item 9.1.1. (a), the-the Republic of Latvia, and demonstrates, claims that the matter is one of principle relating to the application of the Community rules, the Chairman of the Body may declare a request for Acas to be admissibl.




9.2.3. The secretariat of the Body shall acknowledg in receipt of the request for Acas.




9.2.4. The Body shall conduct its investigations as informally and promptly as possible, basing itself on the evidence in the dossier and on a fair hearing of the Commission and the national authorities concerned. At the end of its investigation it shall send them the report referred to in Sub-item 9.1.1 (c).




9.2.5. Where, within four months of a case being referred to it, the Body has failed to reconcil the positions of the Commission and the Republic of Latvia, the ACAS procedure is deemed to have failed. The report referred to in Sub-item 9.1.1. (c) shall state the reasons why the positions could not be reconciled.




9.2.6. The report drawn up within the stipulated limit shall be sent to: — the country which referred the matter to the Body;




— the other applicant countries; and — to the Commission when the clearance of accounts Decision is proposed.




Sub-item 9.3 9.3.1. The Body shall meet at the headquarters of the Commission. The Secretariat of the Body shall be provided by Commission staff.




9.3.2. From the members may take part in the work of the Body or sign a report if, in an earlier Office, they have been personally involved in the matter at issue.




9.3.3. Without prejudice to Sub-item 9.3.2, reports must be adopted by an absolute majority of members present, the quor Forum being three.




The reports shall be signed by the Chairman and members who have taken part in the deliberation.




They shall be registered by the Secretariat.




Sub-item 9.4 9.4.1. The members of the Body shall carry out their duties independently, not seeking nor accepting instructions from ither any Government or body.




9.4.2. The members of the Body may not disclos any information acquired by them in the course of their work for the Body. Such information is confidential and covered by the obligation of professional secrecy.
10 (A) of article 14 Public bodies covered by the 2.7 in the award of public works contracts shall be the State, regional or local authorities, bodies governed by public law, associations formed by one, or several of such authorities or bodies governed by public law; A body governed by public law means any body:-established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character, having legal personality, and — and — financed, for the most part, by the State, or regional or local authorities, or other bodies governed by public law, or subject to management supervision by those bodies , or having an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities or by other bodies governed by public law.
OJ L 253, 7.10.2000, 6 p. 5. Section G dispute settlement: 1. Any dispute between the SAPARD the Contracting Parties concerning this agreement which is not settled between the Contracting Parties shall be decided by an Arbitration Tribunal arbitration following in accordanc with points 2 to 7 of this Section.
2. Each contracting party has the right to invoke the dispute settlement procedure. Each party shall within the arbitrator nominat it three months of the initiation of the procedure 3. The Arbitration Tribunal constituted for each individual case shall be consis of three arbitrator appointed as follows: one arbitrator shall be appointed, by the Republic of Latvia;
one arbitrator shall be appointed, by the Commission;
one arbitrator shall be appointed, by agreement of the parties or, if they cannot agree, by the President of the Court of Justice of the European communities.
4. If either Contracting Party to be its appoin file arbitrator within a period of three months of the receipt of the request for arbitration, the arbitrator shall be appointed by you the President of the Court of Justice of the European communities.
5. any arbitrator Should resign, die or become unable to act, another arbitrator shall be appointed in accordanc with points 2, 3 and 4 and shall have all the powers and duties of the original arbitrator.
6. The Arbitration Tribunal shall take account of the relevant case law of the European Court of Justice.
7. All decisions shall be made by a majority of the votes of the Arbitration Tribunal. The arbitration procedure shall be fixed by the Tribunal. It shall be binding on the decision of both Contracting Parties. Each Contracting Party shall bear the costs of its own arbitrator and its representation in the arbitration proceedings; the remaining costs shall be borne in equal parts by the Contracting Parties.