The Commission’s systems for recovering irregular EU expenditure – Potential to recover more and faster

Summary:

We assessed whether the Commission’s systems for managing and recovering irregular expenditure incurred by beneficiaries of EU funds were effective in protecting the EU budget and as a deterrence from future irregular activities. Under direct and indirect management, the Commission ensures the accurate and prompt recording of irregular expenditure, but takes too long to recover it. Under shared management, where member states have primary responsibility for recording and recovering irregular expenditure, recovery rates are generally low, but with significant differences between member states. We recommend examining systemic irregularities and improving audit planning for external actions. In agriculture, the Commission should assess the need for incentives for member states to improve recovery rates. Finally, the Commission should provide complete information on established irregular expenditure and its correction.

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