If irregularities are detected, and the funds involved in an irregularity have already been paid out to a project partner, the Managing Authority will have to initiate a recovery procedure. The amount will be recovered either by deducting the amount from the next payment to the project or by a re-payment from the Lead Partner to the Managing Authority. The Lead Partner is expected to recover the funds from the partner committing the irregularity.
The EU regulations outline when irregularities should be reported to the European Commission Anti-Fraud Office by the Member State in question. Irregularities are always reported to the Audit Authority and depending on the nature of the irregularity it can also be subject of a report to national authorities for fraud issues