Commission Decision of 17 March 2011 conferring on the Republic of Croatia management of aid relating to the Component V — Agriculture and Rural Development of the Instrument for Pre-Accession Assistance (IPA) for pre-accession measures 301 and 302 in the pre-accession period

1 The management of assistance provided for under IPA — Component V as regards Agriculture and Rural Development is conferred on the concerned bodies under the conditions laid down in this Decision.

2 The requirement for ex ante approval by the Commission of managing, paying and implementing functions for measure 301 ‘Improvement and development of rural infrastructure’ and measure 302 ‘Diversification and development of rural economic activities’ by the Republic of Croatia, is hereby waived according to Article 18(2) of Regulation (EC) No 718/2007.

This Decision shall apply on the basis of the following structures, bodies and authorities designated by the Republic of Croatia for the management of measures 301 and 302 of the Programme provided for under IPA — Component V: (a) the National Authorising Officer; (b) the National Fund; (c) the Operating Structure for IPA — Component V: the Managing Authority, the IPARD Agency.

1 The management powers are conferred on the structures, bodies and authorities as specified in Article 2 of this Decision.

2 The national authorities shall carry out further verifications with regard to the structures, bodies and authorities set out in Article 2 of this Decision, in order to ensure that the management and control system operates satisfactorily. Verifications shall be carried out before the submission of the first declaration of expenditure requesting the reimbursement related to measures stated in Article 1(2) above.

1 Expenditure paid earlier than the date of this Decision shall in no case be eligible with the exception of general costs referred to in Article 172(3c) of Regulation (EC) No 718/2007.

2 Expenditure shall be eligible if it is in accordance with the principles of sound financial management and, in particular, of economy and cost-effectiveness.

1 Without prejudice to any decisions granting aid under the IPARD Programme to individual beneficiaries, the rules for eligibility of expenditure for measure 301 proposed by Croatia by letter No ‘Class: NP 018-04/09-01/106, Ref. number: 525-12-3-0472/09-2’ of 16 March 2009 and registered in the Commission on 26 March 2009 under No 8151 shall apply.

2 Without prejudice to any decisions granting aid under the IPARD Programme to individual beneficiaries, the rules for eligibility of expenditure for measure 302 proposed by Croatia by letter No ‘Class: NP 011-02/09-01/72, Ref. number: 525-12-3-0473/10-30’ of 19 October 2010 and registered in the Commission on 29 October 2010 under No 761752 shall apply.

1 The Commission shall monitor compliance with the requirements for the conferral of management powers as laid down in Article 17 of Regulation (EC) No 718/2007.

2 At any time during the implementation of this Decision, should the Commission consider that the obligations of the Republic of Croatia under this Decision are no longer met, the Commission may decide to withdraw or suspend the conferral of management powers on the basis of Article 17 of Regulation (EC) No 718/2007.

3 The Republic of Croatia as laid down in article 19 of Commission Regulation (EC) No 718/2007 shall ensure: investigation and effective treatment of suspected cases of fraud and irregularities and shall ensure the functioning of a control and reporting mechanism equivalent to that referred to in the Commission Regulation (EC) No 1828/2006, implementation of fraud prevention measures by its national bodies. The fraud prevention measures adopted shall equally be communicated to the Commission.