Common use of Audits of operations Clause in Contracts

Audits of operations. 1. The audits referred to in Article 88 of this Agreement shall be carried out each twelve- month period from 1 October of the year following the adoption of the programme, on a sample of operations selected by a method established or approved by the Audit Authority. The audits shall be carried out on-the-spot on the basis of documentation and records held by the beneficiary. 2. The audits shall verify that the following conditions are fulfilled: a.) the operation meets the selection criteria for the operational programme, has been implemented in accordance with the approval decision and fulfils any applicable conditions concerning its functionality and use or the objectives to be attained; b.) the expenditure declared corresponds to the accounting records and supporting documents held by the beneficiary; c.) the expenditure declared by the beneficiary is in compliance with Community and national rules; d.) the public contribution has been paid to the beneficiary in accordance with Article 40 (9) of IPA Implementing Regulation. 3. Where problems detected appear to be systemic in nature and therefore entail a risk for other operations under the operational programme, the Audit Authority shall ensure that further examination is carried out, including additional audits where necessary, to establish the scale of such problems. The necessary preventive and corrective action shall be taken by the relevant authorities.