6.3.2001 Official Journal of the European Communities L 64/13 COMMISSION REGULATION (EC) No 448/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the procedure for making financial corrections to assistance granted under the Structural THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds ('), and in particular Article 53(2) thereof, After consulting the Committee set up pursuant to Article 147 of the Treaty, After consulting the Committee on Agricultural Structures and Rural Development, After consulting the Committee on Structures for Fisheries and Aquaculture, Whereas: (1)  Article 39(1) of Regulation (EC) No 1260/1999 requires the Member States to make financial corrections in connection with individual or systemic irregularities, by cancelling all or part of the Community contribution. 2)  In order to ensure a uniform application of this provi- sion throughout the Community, provisions should be laid down for determining such corrections and for reporting to the Commission. (3)  Provisions should be laid down concerning the amount of the financial corrections the Commission may make under Article 39(3) of Regulation (EC) No 1260/1999 in cases where a Member State has failed to comply with its obligations under Article 39(1) or Article 38. (4)  Detailed provisions concerning the procedure under Article 39(2) of Regulation (EC) No 1260/1999 should be laid down and the same procedure should be applied in the cases referred to in Article 38(5) of the Regula- tion. (5)  Commission Regulation (EEC) No 1865/90 of 2 July 1990 concerning interest on account of late payment to be charged in the event of late repayment of assistance from the Structural Funds (?) should be replaced. However, the provisions of Regulation (EEC) No 1865/ () O] L 161, 26.6.1999, p. 1. () O] L 170, 3.7.1990, p. 35. 90 should continue to apply to assistance granted for the programme period 1994-99 under Council Regula- tion (EEC) No 2052/88 (%), as last amended by Regula- tion (EC) No 3193/94 (*). (6)  This Regulation should be without prejudice to the provisions regarding the recovery of State aid laid down in Article 14 of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty (°). (7)  The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Development and Conversion of Regions, HAS ADOPTED THIS REGULATION: CHAPTER 1 Scope Article 1 This Regulation lays down detailed rules for the implementa- tion of Regulation (EC) No 1260/1999 as regards the proce- dure for making financial corrections to assistance granted under the Structural Funds that is administered by the Member States. CHAPTER 1I Financial corrections by Member States Article 2 1. In the case of systemic irregularities, enquiries under Article 39(1) of Regulation (EC) No 1260/1999 shall cover all the operations liable to be affected. 2. When cancelling all or part of the Community contribu- tion, Member States shall take into account the nature and gravity of the irregularities and the financial loss to the Funds. 3. Member States shall send to the Commission, as an annex to the last quarterly report of each year supplied under Commission Regulation (EC) No 1681/94 (%), a list of cancella- tion proceedings initiated in the past year, together with infor- mation on the steps already taken or still required, where appropriate, to adjust the management and control systems. Article 3 1. When amounts are to be recovered following a cancella- tion under Article 39(1) of Regulation (EC) No 1260/1999, the competent service or body shall initiate recovery proceedings () O] L 185, 15.7.1988, p. 9. () O] L 337, 24.12.1994, p. 11. () O] L 83, 27.3.1999, p. 1. () O] L 178, 12.7.1994, p. 43.