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Agrce menl nul]rber; 2019 - 1943 / 001 - 00 |
Mu rti benet,iciaries moder agreenrcnt: Decernber 20 rg

lf the Agerrcy does not receive any observations or decides to pursue reduction despite the
observations it has received, it will send a,formal notificalion inforrnilg the coor.dipator of its decision.

lf the gtant is redttced, the Agency must calculate the reduced grant amount by deducting the amount
of the reduction (calculated in proportion to the improper implementation of the action or to the
seriousness of the hreach of obligations) fi'orn the maximum amounr of the grant.

The final amount of the glant will be the loweL of the following two:

(a) the arnount obtained following Steps I to 3; or

(b) the reduced grant arnount follorving Step 4.

ARTICLE TI,26 RECOVERY
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II.26.1 Recovery at the time of payment of the balance

Where the payment of the balance takes the forrn of a recovel'y, the coordinator must repay the
Agency the arnount in question, even if it was not the final recipient of the amount due.

II.26.2 Recovery after payment of the balance

Where an arnount is to be recovercd as provided for in Articles 11.27.5, 11.27.7 and 11.27.8, the
beneficialy concerned by the audit or OLAF findings must repay the Agency the amount in question.
Where the audit findings do not concern a specific beneficiary (or its affiliated entities), the
coordinator rnust repay the Ageucy the amount in question, even if it was not the final recipient of the
amount due.

Each beneficiary is lesponsible for the r€payment of any amonnt unduly paid by the Agency as a
contribution towards the costs incurred by its affiliated entities.

1I.26.3 Recovery procedure

Before recovery, the Agency must send a./brmal notiJication to the beneficiary concerned:

(a) informing it of its intention to recover the amount unduly paid;

(b) specifying the arnount due and the reasons for recovery; and
(c) lnviting tlre beneficiary to make any observations within a specified period.

lf no observations have been submitted or ifl despite the observations submitted by the beneficiary, the
Agettcy decides to pursue the recovery procedure, the Agency may confinn recovery by sending a
.fttrmal notificulion to the beneficiary consisting of a debit note, specifying the terms and the date for
payment.
If payment has not been tnade by the date specified in the debit note, the Agency will recover the
amount due:

(a) by offsefting it, rvithout the beneficiary's prior consent, against any arnounts owed to the
beneficiary by the Agency and/or the Comlnission or an executive agency (from the Union or
the Europearr Atomic Energy Community (Euratorn) budget) ('offsetting');
In exceptional circunrstances, to saf'eguard the financial interests of the Union, the Agency
nray offset betbre the due date.

Annex ll JZ