Commission Delegated Regulation (EU) 2021/629 of 4 November 2020 amending Delegated Regulations (EU) No 532/2014 and (EU) No 1255/2014 supplementing Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived, as regards the detailed minimum requirements for audit purposes and the data to be recorded and stored
Commission Delegated Regulation (EU) 2021/629 of 4 November 2020 amending Delegated Regulations (EU) No 532/2014 and (EU) No 1255/2014 supplementing Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived, as regards the detailed minimum requirements for audit purposes and the data to be recorded and stored
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) No 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived(1), and in particular Article 13(6) and Article 32(8) and (9) thereof,
Whereas:
Regulation (EU) No 223/2014 allows the Commission to adopt delegated acts supplementing its non-essential elements with regard to the Fund for European Aid to the Most Deprived (‘FEAD’).
Commission Delegated Regulation (EU) No 532/2014(2) supplements Regulation (EU) No 223/2014 with regard to the minimum requirements for the audit trail and on the list of data to be recorded and stored in the system by the managing authority on each operation necessary for monitoring, evaluation, financial management, verification and audit.
Commission Delegated Regulation (EU) No 1255/2014(3) supplements Regulation (EU) No 223/2014 by laying down the content of the annual and final implementation reports, including the list of common indicators.
Regulation (EU) 2020/559 of the European Parliament and of the Council(4) amended Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing the COVID-19 outbreak. In particular, Regulation (EU) 2020/559 introduced the possibility for Member States to provide food or basic material assistance, or both, to the most deprived indirectly, such as through vouchers, cards or other instruments.
The indirect provision of food and basic material assistance through vouchers, cards or other instruments entails specific challenges for implementation compared to situations where this assistance is provided directly to the most deprived. It is thus appropriate to provide for specific provisions for the schemes providing assistance directly with regard to the minimum requirements for the audit trail, in order to adjust the list of data to be recorded and stored in the system by the managing authority on each operation for monitoring, evaluation, financial management, verification and audit and to adjust the list of indicators to be reported by the managing authority.
In order to mitigate the higher risks of irregularities and fraud where the provision of food or basic material assistance, or both, is carried out through vouchers or cards in a paper format, it is appropriate to provide for additional minimum requirements for the audit trail in such cases.
In order to allow for the prompt application of the measures provided for in this Regulation aiming at preventing irregularities and fraud, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.
Delegated Regulations (EU) No 532/2014 and (EU) No 1255/2014 should therefore be amended accordingly,
HAS ADOPTED THIS REGULATION:
Article 1
Delegated Regulation (EU) No 532/2014 is amended as follows:
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The following Article is inserted:
1.In addition to the detailed minimum requirements for the audit trail set out in Article 3, the audit trail for operations providing food or basic material assistance, or both, to the most deprived, through vouchers, cards or other instruments in accordance with Article 23(4a) of Regulation (EU) No 223/2014 shall:
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allow to reconcile the total number of vouchers, cards or other instruments issued with the total number of vouchers, cards or other instruments delivered to end-recipients and used based on accounting records and supporting documents held by the certifying authority, managing authority, intermediate bodies and beneficiaries;
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allow, with regard to the eligible costs set out in Article 26(2), point (a), to reconcile the aggregate amounts certified to the Commission with the value of vouchers, cards or other instruments used by end-recipients;
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include documents concerning the granting of vouchers, cards or other instruments to end-recipients, their distribution to end-recipients and their use.
For the use of cards, vouchers, or other instruments, the audit trail shall demonstrate that the vouchers, cards or other instruments are used only for the purchase of food or basic material assistance, or both.
2.Where food and/or basic material assistance is provided to the most deprived through vouchers, cards or other instruments in a paper format, the audit trail shall also include the following:
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security measures avoiding falsification taken by the managing authority, intermediate bodies and beneficiaries;
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measures to safeguard the stock of vouchers;
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identification of the bodies identifying end-recipients and the bodies distributing the vouchers, cards or other instruments to end-recipients;
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documentation that the vouchers, cards or other instruments have been received by end-recipients.’;
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Annex I is replaced by the text set out Annex I to this Regulation.
‘Article 3a Detailed minimum requirements for the audit trail for support provided indirectly to the most deprived, such as through vouchers, cards or other instruments (Article 32(9) of Regulation (EU) No 223/2014)
In addition to the detailed minimum requirements for the audit trail set out in Article 3, the audit trail for operations providing food or basic material assistance, or both, to the most deprived, through vouchers, cards or other instruments in accordance with Article 23(4a) of Regulation (EU) No 223/2014 shall:
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allow to reconcile the total number of vouchers, cards or other instruments issued with the total number of vouchers, cards or other instruments delivered to end-recipients and used based on accounting records and supporting documents held by the certifying authority, managing authority, intermediate bodies and beneficiaries;
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allow, with regard to the eligible costs set out in Article 26(2), point (a), to reconcile the aggregate amounts certified to the Commission with the value of vouchers, cards or other instruments used by end-recipients;
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include documents concerning the granting of vouchers, cards or other instruments to end-recipients, their distribution to end-recipients and their use.
For the use of cards, vouchers, or other instruments, the audit trail shall demonstrate that the vouchers, cards or other instruments are used only for the purchase of food or basic material assistance, or both.
Where food and/or basic material assistance is provided to the most deprived through vouchers, cards or other instruments in a paper format, the audit trail shall also include the following:
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security measures avoiding falsification taken by the managing authority, intermediate bodies and beneficiaries;
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measures to safeguard the stock of vouchers;
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identification of the bodies identifying end-recipients and the bodies distributing the vouchers, cards or other instruments to end-recipients;
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documentation that the vouchers, cards or other instruments have been received by end-recipients.’;
Article 2
The Annex to Delegated Regulation (EU) No 1255/2014 is replaced by the text set out in Annex II to this Regulation.
Article 3
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.