The person named was the subject of a REPS on-the-spot inspection. In the course of this inspection he was found to be in breach of his undertakings and on 15 March 2010 he was notified of penalties to be imposed for non-compliance. The decision to impose these penalties was reviewed locally on request, and by letter dated 15th April 2010 my officials advised him that the penalties were upheld and that it was open to him to appeal this decision to the Agriculture Appeal Office (AAO). At that stage the penalty amount was deducted from his REPS 3 payment.