14.6.2006 Official Journal of the European Union L 16211 COMMISSION DECISION of 20 January 2006 laying down detailed rules for the implementation of Council Decision 2004/904/EC as regards procedures for making financial corrections in the context of actions co-financed by the European Refugee Fund (notified under document number C(2006) 51/2) (Only the Czech, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Swedish, Latvian, Lithuanian, Polish, Portuguese, Slovakian, Slovenian and Spanish texts are authentic) (2006/400/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Decision 2004/904/EC of 2 December 2004 establishing a European Refugee Fund for the period 2005 to 2010 (1), and in particular Article 25(3) and 26(5) thereof, Having consulted the Committee established by Article 11(1) of Decision 2004/904/EC, Whereas: (1)  To allow recovery, pursuant to Article 24(1) of Decision 2004/904/EC, of amounts unduly paid, Member States should inform the Commission of cases of irregularities detected and the progress of administrative or legal proceedings. (2)  Article 25(2) of Decision 2004/904/EC lays down that Member States must make the financial corrections required in connection with the individual or systemic irregularity by cancelling all or part of the Community contribution. To ensure that this provision is applied uni- formly throughout the Community, it is necessary to lay down rules for determining the corrections to be made and to provide for the Commission to be informed. (3)  IfaMember State fails to comply with its obligations under Article 25 of Decision 2004/904/EC the Commission may itself make the financial corrections under Article 26 of Decision 2004/904/EC. To ensure that this provision is applied by the Commission in a transparent manner, it is necessary to lay down rules for determining the correc- tions to be made by the Commission and to provide for the Member States’ right to submit comments. (1) OJ L 381, 28.12.2004, p. 52. (4)  These rules should be in accordance with Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the Euro- pean Communities (2) (hereafter Tmplementing Rules of the Financial Regulation’). (5)  In accordance with Article 3 of the Protocol on the posi- tion of the United Kingdom and Ireland, annexed to the Treaty on European Union and to the Treaty establishing the European Community, the United Kingdom takes part in Council Decision 2004/904/EC and by consequence in this present decision. (6)  In accordance with Article 3 of the Protocol on the posi- tion of the United Kingdom and Ireland, annexed to the Treaty on European Union and to the Treaty establishing the European Community, Ireland takes part in Council Decision 2004/904/EC and by consequence in this present decison. (7)  Inaccordance with Articles 1 and 2 of the Protocol on the position of Denmark, annexed to the Treaty on European Union and to the Treaty establishing the European Com- munity, Denmark does not take part in Council Decision 2004/904/EC and is not bound by it nor by this present decision. HAS ADOPTED THIS DECISION: Article 1 1. Investigations of systematic irregularities under Article 26(1) of Decision 2004/904/EC shall cover all projects liable to be affected. 2. When cancelling all or part of the Community contribution, Member States shall take into account the nature and gravity of the irregularities and the financial loss to the fund. (3 OJ L 357, 31.12.2002, p. 1. Regulation as last amended by Regula- tion (EC, Euratom) No 1261/2005 (OJ L 201, 2.8.2005, p. 3).