Standard operating procedure
Title: recovery of amounts wrongly paid, off-setting/correction to salaries, off-setting of amounts
wrongly paid – expenditure operations
Status: PUBLIC
Document no.: SOP/EMA/0137
Lead author
Approver
Effective date: 28-APR-14
Name: Claus Christiansen
Name: Michael Lenihan
Review date: 28-APR-17
Signature: “on file”
Signature: “on file”
Supersedes: SOP/EMA/0137 of 06JUN-13 (TW3832)
Date:
Date:
TrackWise record no.: 4133
1. Purpose
The purpose of this SOP is to establish a single cross-agency procedure for the correct application of
Art. 25 and title IV, chapter 4 of the Financial Regulation, and in particular:
•
Art. 25.
adjustments for amounts unduly paid,
•
Art 66
entitlements of the agency in respect of third parties and entitlements of third parties
in respect of the agency are subject to a limitation period of five years.
2. Scope
This SOP is applicable to all sectors and units of EMA and to all financial transactions which involve
correction of amounts unduly paid.
3. Responsibilities
It is the responsibility of each initiating agent, verifying officer and (delegated/sub-delegated)
authorising officer to comply with this procedure.
The act of recovery is the responsibility of the accounting officer.
4. Changes since last revision
SOP updated to reflect new financial regulation and implementing rules
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Telephone +44 (0)20 7418 8400 Facsimile +44 (0)20 7418 8416
E-mail info@ema.europa.eu Website www.ema.europa.eu
An agency of the European Union
© European Medicines Agency, 2014. Reproduction is authorised provided the source is acknowledged.
5. Documents needed for this SOP
Template ‘Decision to waive, cancel of adjust a recovery of debt’, doc. ref. EMA/678182/2012
https://docs.eudra.org/webtop/drl/objectId/090142b281ef6638
6. Related documents
Financial Regulation applicable to the budget of EMA:
Implementing Rules to the FR:
Internal Rules:
http://emeaplus/EMEAPlus_WebsiteNew/Financial_Matters/FinanceAndBudget/InternalRules.htm
cf. art 55 of the IR to the FR: conditions and procedure for delegating the power to cancel an
established amount receivable.
Processing of refunds: EMA/141409/2013 https://docs.eudra.org/webtop/drl/objectId/090142b28210d954
Any SOP or WIN which includes instructions on payment and/or recovery - the following have been
identified:
SOP/EMEA/0038
SME Fee Reductions, Fee Deferrals and Conditional Fee Exemptions
SOP/EMA/0044
Requesting and recording exceptions
SOP/EMA/0139
Amendment, cancellation or waiver of amounts receivable – revenue
operations
WIN/PDM/1701
Processing of financial transactions for applications attracting a fee: initiation,
verification, authorisation
SOP/INSP/2005
Processing of financial transactions for inspections
SOP/INSP/2016
Sampling and testing of centrally authorised products – financial procedures
SOP/H/3060
Handling of financial compensation for checking of product information by the
member states
SOP/H/3101
Determination of fees (medicinal products for human use)
WIN/V/4044
Initiating recovery orders for fees (veterinary sectors)
SOP/ADM/6003
Initiation of delegate reimbursement
SOP/ADM/6017
Conferences and events outside EMA and overseas
WIN/ADM/7011
Reimbursement of travel expenses upon taking up/leaving service
WIN/ADM/7020
Removal expenses
WIN/ADM/7021
National experts – financial procedures
WIN/ADM/7023
Trainees – financial procedures
WIN/ADM/7081
Annual travel allowance
WIN/ADM/7083
Processing interim agency invoices following interim timesheets
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The list may not be exhaustive.
7. Definitions
Cancellation:
FR, Art. 62(5) – The authorising officer shall cancel an established amount
receivable in full or in part when the discovery of a mistake reveals that the
amount had not been correctly established. Such cancellation shall be by
decision of the authorising officer and shall be suitably substantiated.
Recovery:
FR, Arts. 59-61 and 63 – The process of establishing, authorising and cashing
amounts receivable by the agency.
ACC:
accounting officer
AO:
authorising officer (delegated/sub-delegated)
IA:
initiating agent
Proportionality:
the effort and cost involved in the recovery of an established amount
shall be proportional to the amount involved.
VO:
verifying officer
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8. Process map(s)/ flow chart(s)
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9. Procedure
Step
Action – initiation and cancellation
Responsibility
1.1.
Information is received that a debtor has been wrongly paid and
IA
that action is needed.
1.2.
Check if the entitlement is older than 5 years and has not been
IA
deferred.
If not go to step 2.1.
1.3.
1.4.
Propose cancellation/write-off of debt.
IA
Carry out ex-ante check.
VO
If not successful, go to step 1.7. for appropriate action.
1.5.
If transaction is in order authorise cancellation/write-off of debt.
AO
1.6.
Cancel/write-off potential debt
ACC
For filing, go to step 5.1.
1.7.
Correct any issues and re-launch
IA
Step
Action – recovery from salary
Responsibility
Check if this is a payment to staff under the Staff Regulations.
IA
2.1.
If not, go to step 3.1.
2.2.
Propose recovery from salary payment(s).
IA
Provide clear instructions and justification for the recovery.
2.3.
Conduct ex-ante check, if unsuccessful go to step 1.7.
VO
2.4
If transaction is in order authorise recovery from salary
AO
payment(s).
2.5.
Off-set debt against salary payment(s).
ACC
For filing, go to step 5.1.
Step
Action – off-setting
Responsibility
3.1.
Check if (partial) off-setting against a future payment is possible.
IA
If not, go to 4.1.
NB! In order for off-setting to be possible, it must be related to the
same budget item, 3rd party and budget year as the initial
payment.
3.2.
Propose (partial) off-setting with next payment to 3rd party.
IA
Provide clear instructions and justification for the off-setting.
1. For payments related to year N, off-setting should happen on
C1 appropriations.
2. For payments related to year N-1, off-setting should happen on
C8, if commitment still available/open).
3. For off-setting against same purchase order, use SAP
transaction MIR4 (credit memo, MM).
4. For off-setting against same commitment, use SAP transaction
F879 (deduction payment request, FM).
3.3
Conduct ex-ante check, if unsuccessful go to step 1.7.
VO
3.4
If transaction is in order authorise off-setting, and part payment if
AO
applicable.
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Step
3.5
Action – off-setting
Responsibility
Off-set debt against payment(s), pay net amount if applicable.
ACC
For filing, go to 5.1.
Step
Action – recovery
Responsibility
4.1.
Initiate recovery.
IA
Provide clear instructions and justification for the recovery.
Since one of the three conditions under step 3.1 cannot be met,
the refund must be treated as miscellaneous revenue and be
posted on 9000R. Use SAP transaction F881, acceptance request
(type ZG).
4.2.
Conduct ex-ante check, if unsuccessful go to step 1.7.
VO
4.3.
If transaction is in order authorise recovery order.
AO
Instigate recovery:
ACC
4.4.
•
go to SOP/EMA/0139.
Step
Action – phase: filing
Responsibility
5.1.
File original supporting and financial documentation, cf. 10.
ACC
Records.
10. Records
•
Signed original: supporting document to financial transaction (filed by A-FI-ACC)
•
Staff payment related documents are filed by A-HR-SPO.
•
CC: Dream cabinet 08. Financial Management/08.3 Verification Service/VO Ex-ante – to be
included in the VO’s annual report on exceptions under the Financial Regulation
•
CC: Dream cabinet 08. Financial Management/08.4 Budget/08.40 Budget (by year)/08.40 Budget
YYYY/08.405 Budget implementation/08.4055 One-off matters
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