This Regulation amends the rules regarding annual performance clearance and conformity procedures in EU agricultural funding. It introduces a simplified approach to reporting deviations in unit amounts under the Common Agricultural Policy (CAP), establishing a 2% de minimis threshold below which Member States don’t need to provide detailed justifications. The act also clarifies procedures for flat-rate corrections in cases of non-compliance.The Regulation consists of two main articles. Article 1 introduces three key amendments to Delegated Regulation (EU) 2022/127: establishing the de minimis threshold, clarifying flat-rate correction procedures for the Commission, and specifying conditions for using lower flat rates in conformity procedures. Article 2 sets the entry into force provisions.Key provisions include:
- Introduction of a 2% de minimis threshold for reporting deviations in unit amounts, reducing administrative burden for Member States
- Mandatory justification requirement remains for all cases where realized unit amounts exceed maximum planned unit amounts
- Clarification of flat-rate correction procedures when objective evidence shows lower potential losses to Union funds
- Application of new reporting requirements starting from financial year 2024
