Page 53 - GA

Agreement number: 2019 - 1943 / 001 - 001
N4ulti bcncficiaries rnodcl aercemeul: Dcccntber 20llJ

Step 1 notification must include:
-Theforntal
(i) an invitation to the beneficiary to subrnit obseruations on the list of grants affected by the
findings and
(ii) the correction flat rate the Agency and/or the Cornrnission intends to apply lo the maxinum
amount of the grant or to parl of it, according to the principle of proportiorrality.
Step 2 - The benefici concerned has 60 calendar days fiorn receiving the .formnl nolificaliort to
subrnit obserrvations or to propose a duly substantiated alternative flat-rate.

Step 3 - If the Agency arrd/or the Commission accepts the alternative flat mte proposed by the
beneficiary, it must send a.formctl notiftcation to the beneficiary concerned inforrning it:

(i) that it accepts the alternative flat-rate;

(ii) of the corrected grant amount by applying this flat rate.
Otherwise the Agency and/or the Commission must send a .fonnal notificalion to the beneficiary
concerned informirrg it:

(i) that it does not accept the observations or the alternative flat rate proposed;

(ii) of the corrected grant amount by applying the flat rate initially notified to the beneficiary,
lf the systemic or recurrenl irregularities,.fraud or breach ofohligations are found alter the payrnent
ofthe balance, the amouut to be recovered corresponds to the difference between:

(i) the revised final amount of the grant after flat-rate correction; and
(ii) the total atnount paid to the beneficiaries under the Agreernent for the irnplemerrtation of the
action.

11.27.8 Rights of OLAF

The European Anti-Fraud Office (OLAF) has the same rights as the Agency and the Cornmission,
particularly the right of access, for the purpose of checks and investigations.

Under Council Regulation (Euratom, EC) No 21851965 and Regulation (EU, Euratom) No 883/20136
OLAF may also carry out on-the-spot checks and inspectious irr accordance with the procedules laid
down by Uniorr law for the protection of the financial interests of the Uniorr against.frcnrd and other
irregularilies.

Where appropriate, OLAF findings may lead to the Agency and/or the Comrnission recovering
arnounts from beneficiaries.
Moreover, findings arising from an OLAF investigation may lead to crirninal prcsecutions under
national law.

5
Council Regulation (Euratom, EC) No 2185/96 of I I Novernber 1996 concerning on-the-spot checks and
inspections carried out by the Commission in order to protect the European Communities' financial intelests
against fraud and other inegularities.

6
Regulation (EU, Euratom) No 883i2013 of the Eulopean Parliament and of the Council of ll Septernber 2013
concerning investigations conducted by the European Anti-Fraud Office (OLAF).

Annex ll 3t