title: 2013/594/EU: Decision of the European Parliament of 17 April 2013 on discharge in respect of the implementation of the budget of the European Securities and Markets Authority for the financial year 2011#Resolution of the European Parliament of 17 April 2013 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Securities and Markets Authority for the financial year 2011

text:
               16.11.2013

               EN

               Official Journal of the European Union

               L 308/282

         DECISION OF THE EUROPEAN PARLIAMENT
   of 17 April 2013
   on discharge in respect of the implementation of the budget of the European Securities and Markets Authority for the financial year 2011
   (2013/594/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the European Securities and Markets Authority for the financial year 2011,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the European Securities and Markets Authority for the financial year 2011, together with the Authority’s replies (1),

               —

               having regard to the Council’s recommendation of 12 February 2013 (05753/2013 – C7-0041/2013),

               —

               having regard to Article 319 of the Treaty on the Functioning of the European Union,

               —

               having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

               —

               having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

               —

               having regard to Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (4), and in particular Article 64 thereof,

               —

               having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

               —

               having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

               —

               having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Economic and Monetary Affairs (A7-0115/2013),

               1.

               Grants the Executive Director of the European Securities and Markets Authority discharge in respect of the implementation of the Authority’s budget for the financial year 2011;

               2.

               Sets out its observations in the resolution below;

               3.

               Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Executive Director of the European Securities and Markets Authority, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

            The President

         Martin SCHULZ

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 388, 15.12.2012, p. 157.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 298, 26.10.2012, p. 1.

      (4)  OJ L 331, 15.12.2010, p. 84.

      (5)  OJ L 357, 31.12.2002, p. 72.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 17 April 2013
      with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Securities and Markets Authority for the financial year 2011
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the European Securities and Markets Authority for the financial year 2011,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the European Securities and Markets Authority for the financial year 2011, together with the Authority’s replies (1),

                  —

                  having regard to the Council’s recommendation of 12 February 2013 (05753/2013 – C7-0041/2013),

                  —

                  having regard to Article 319 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

                  —

                  having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

                  —

                  having regard to Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (4), and in particular Article 64 thereof,

                  —

                  having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

                  —

                  having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Economic and Monetary Affairs (A7-0115/2013),

                  A.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the European Securities and Markets Authority (‘the Authority’) for the financial year 2011 are reliable and that the underlying transactions are legal and regular,

                  B.

                  whereas the Authority, a newly created Agency which is located in Paris, was established by Regulation (EU) No 1095/2010 and officially started its operations on 1 January 2011 as an independent authority,

                  C.

                  whereas the Authority should be considered in the context of its legal transition from its predecessor, the Committee of European Securities Regulators (CESR), a French association, and as a result, apart from its new mandate, it has taken over all existing and ongoing tasks and responsibilities from the CESR (all assets, liabilities and all pending operation of CESR were automatically transferred to the newly created Authority),

                  D.

                  whereas the Authority is an integral part of the European System of Financial Supervisors and works in close cooperation with its sister authorities, the European Banking Authority and the European Insurance and Occupational Pensions Authority, within a Joint Committee, and with the European Systemic Risks Board,

                  E.

                  whereas the Authority’s overall allocated budget for 2011 was EUR 16 964 913,92,

                  F.

                  whereas in accordance with its Founding Regulation (6), 60 % of the 2011 budget was financed by contributions from the Member Statesand the European Free Trade Association (EFTA) countries, and 40 % was financed by the Union budget,

                  G.

                  whereas, at the end of 2011, the Authority recorded a positive budget outturn of EUR 4 457 244,82 (7), after deduction of exchange rate differences equal to EUR 4 645,56, which was then recorded in the accounts as a liability towards the Commission,

         Budgetary and financial management

                  1.

                  Takes note from the annual accounts that the initial Union contribution to the Authority’s budget for 2011 was EUR 6 784 000; notes that this was the first year of the Authority’s activities;

                  2.

                  Acknowledges from the annual accounts that the Authority’s overall budget for 2011 amounted to EUR 16 964 913,92 (including EUR 9 857 457,23 from Member States, EUR 257 288,76 as a contribution from observers and EUR 66 167,93 representing ‘Other revenue’);

                  3.

                  Calls on the Commission to explore all the options for a new long term sustainable financing of the Authority that safeguards its independence in the context of the next review of the agencies’ work and financing arrangements by the Commission, which will be presented by 2 January 2014 at the latest;

                  4.

                  Calls on the Commission to evaluate the possibility of coming up with a proposal ensuring that the budgets of the three European Supervisory Authorities (ESAs) are fully funded by the Union budget;

                  5.

                  Notes with concern that the provisions of the Financial Regulation are not fully adapted to the Authority’s financing scheme as 60 % of its budget is financed by contributions from Member States and EFTA countries; believes that that issue should be addressed, at the latest, in the course of the next revision of the Financial Regulation as regards agencies, and calls on the Commission to evaluate this situation and to report on this issue to the discharge authority;

                  6.

                  Notes from the annual accounts that the major focus of the Authority in 2011 was its establishment and further extension;

                  7.

                  Stresses the importance of adequately matching the allocated budget and available posts on one hand and the tasks entrusted to the Authority on the other hand, as a mismatch may result in unbalanced staffing as regards the recruitment of the Authority’s staff on one hand and the involvement of national experts on the other; expresses concern about the fact that the Commission has altered the establishment plan as proposed by the Authority without clearly indicating this; urges the Commission to be fully transparent on this and other issues;

                  8.

                  Notes the concerns that were raised in the preliminary conclusions of the IMF financial sector assessment of December 2012 on the Union, in which it is recommended to increase the resources and powers of the ESAs in order to enable them to successfully fulfil their mandates, while enhancing their operational independence;

                  9.

                  Acknowledges from the annual accounts that in the Authority’s inauguration meeting on 11 January 2011, the Management Board adopted and approved the principal financial rules and the Authority’s Financial Regulation in order to enable it to execute its powers as a European authority;

         Transition from CESR

                  10.

                  Acknowledges from the annual accounts that the political decision to transform CESR into the Authority in January 2011 was taken in September 2010, which allowed only four months to set up the Authority, whereas the usual time for such tasks is estimated at two years;

                  11.

                  Notes that the first quarter of 2011 was dedicated to the transfer of assets from CESR to the Authority and the implementation of, as well as training on, Union rules in terms of financial circuits, recruitments and procurements; takes note, furthermore, that the second quarter was marked by the Authority moving into its premises, following the signature of a new lease contract in December 2010; notes that works were being executed from March to June 2011 in the new premises;

                  12.

                  Acknowledges from the annual accounts that in the third and fourth quarters, when the Authority’s organigram and recruitment were revised, new managers were recruited (a new Chair in April 2011 and a new Executive Director in June 2011) and its operations started to build up;

                  13.

                  Takes note that according to the Authority, the above mentioned issues and the limited preparation time setting up its operations explain the budgetary under spending in 2011;

         Accounting system

                  14.

                  Takes note from the annual accounts that the standard and general budget structure adopted by the Authority at the beginning of 2011 needed to be adapted according to its real needs;

                  15.

                  Notes from the annual accounts that in April 2011, the Authority introduced accrual based accounting (ABAC), the accounting system used by the Commission for budgetary accounting; notes, furthermore, that during the transition period, from January to April 2011, the Authority used a system based on spreadsheets and in April converted to the final ABAC/SAP system used by the Commission;

                  16.

                  Acknowledges from the annual accounts that budget accounts are managed by the ABAC system and the general accounts are maintained by the SAP system, which has a direct interface with the General Accounting System of the Commission; also notes that the various budgetary and financial reports are produced using the Business Objects reporting tool;

                  17.

                  Takes note that according to the Authority, it has implemented the validation of its accounting system by a full control approach in 2011, and urges the Authority to provide the discharge authority with the 2012 follow-up report on the ‘Validation of accounting systems’ compliant with the criteria specified by the Commission (DG Budget);

         Budget execution

                  18.

                  Establishes from the annual accounts that the Authority registered a budget execution ratio of 75,7 % for commitments and 62,5 % for payments at the end of 2011;

                  19.

                  Acknowledges from the annual accounts (8) that EUR 1 901 218,61 of commitments were carried forward from 2011 to 2012, of which approximately EUR 250 000 may need to be decommitted later;

                  20.

                  Notes that the commitment execution rate for Title I (‘Staff expenditure’) was 84,95 % and 82,46 % for Title II (‘Administrative expenditure’); notes that 2011 was a transitional year from CESR to a European authority and a preparatory year for new procedures and requests; calls on the Authority to inform the discharge authority of the actions taken to improve the ratios, as the low execution ratio show difficulties in budget planning and implementation;

                  21.

                  Takes note that the Authority is in its initial growth period; notes that the budget for salaries was, therefore, higher than needed as not all staff could be recruited at the beginning of the year; notes, furthermore, that having a smaller staff than originally budgeted for had a corresponding effect on the execution of Title II;

                  22.

                  Acknowledges that all budget transfers were made within the same title, apart from a EUR 250 000 net transfer which was moved from Title I to Title II to help cover the costs of the renovation of the new premises;

                  23.

                  Takes note from the annual accounts of the low commitment execution ratio of 46,92 % for Title III (‘Operational expenditure’); notes that approximately EUR 1 000 000 of commitments for Title III was carried forward to cover information technology (IT) projects that were part of the 2011 work programme but due to delays in the legislative process, had their start dates delayed; calls on the Authority to inform the discharge authority of the actions taken to improve the ratio, as the low execution ratio shows difficulties in budget planning and implementation;

                  24.

                  Notes that the commitments where it was particularly difficult to judge expenditure were related to taxes due to the French authorities, travel agent fees and training for supervisors not run by the Authority directly;

                  25.

                  Acknowledges that the Authority has taken into account the expenditure pattern for 2011 and the fact that the 2012 budget has been reprofiled and that for the 2013 budget, for both Titles I and II, the Authority has taken account of the fact that during a growth period, not all posts on the establishment plan will be filled at the beginning of the year;

                  26.

                  Takes note that according to the Authority, due to technical difficulties and the late implementation of ABAC, the corresponding budget commitments were only registered in the accounts in late 2011;

                  27.

                  Notes that the Court of Auditors identified a number of cases, with a total value of EUR 207 442, in which payment appropriations carried over to 2012 did not correspond to legal commitments made; calls on the Authority to inform the discharge authority of the actions taken to assess this deficiency, as these carry-overs were irregular and should be cancelled;

                  28.

                  Acknowledges that the Authority’s management of fixed assets has been improved; notes, furthermore, that as far as intangible assets are concerned, the Authority implemented timesheets for internal staff working on IT projects as of 1 January 2012 and that it is in the process of improving the relevant procedures;

         Control systems

                  29.

                  Acknowledges that the Authority’s internal control standards have been adopted in 2012 and that an Internal Control Coordinator has also been appointed in 2012;

                  30.

                  Welcomes the Decision of the Management Board, adopted on 11 January 2011, concerning the terms and conditions for internal investigations in relation to the prevention of fraud, corruption and illegal activity detrimental to the Union’s interests; stresses that this Decision follows closely the text of the model decision annexed to the Interinstitutional Agreement of 25 May 1999, and represents the accession of the Authority to that agreement;

                  31.

                  Acknowledges that the majority of the Authority’s implementing rules to the Staff Regulation have been adopted, but some have yet to be confirmed or finalised;

                  32.

                  Takes note of the current state of play, which is identical for the three ESAs:

                              —

                              14 implementing rules were adopted in 2011,

                              —

                              five implementing rules were adopted in 2012,

                              —

                              seven implementing rules are awaiting confirmation by the college of the Commission or DG HR,

                              —

                              four implementing rules that finally required the three ESAs to revise the rules based on new templates in line with the new Staff Regulation have not been approved by the Commission;

         Recruitment procedures

                  33.

                  Takes note that the Authority has brought its recruitment procedures in line with the Court of Auditors’ recommendations; calls on the Authority to inform the discharge authority of which further actions it has taken to improve the recruitment procedures; considers that some of the provisions of the Staff Regulations may present a considerable administrative burden; therefore encourages the Commission to allow for a certain degree of simplification under Article 110 of the Staff Regulations in regard to the agencies;

                  34.

                  Notes from the annual accounts (9) that 2011 was a crucial year for the Authority in setting up and extending the human resources team in order to adequately source its new functions and tasks; notes that on 31 December 2012, the Authority’s staff was represented by 50 temporary agents, three staff members employed under French contracts taken over from the preceding organisation, five contractual agents, two seconded national experts and two trainees;

                  35.

                  Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its Resolution of 17 April 2013 (10) on the performance, financial management and control of the agencies.

         (1)  OJ C 388, 15.12.2012, p. 157.

         (2)  OJ L 248, 16.9.2002, p. 1.

         (3)  OJ L 298, 26.10.2012, p. 1.

         (4)  OJ L 331, 15.12.2010, p. 84.

         (5)  OJ L 357, 31.12.2002, p. 72.

         (6)  OJ L 331, 15.12.2010, p. 12, Article 62(1).

         (7)  Annual accounts 2011, p. 27.

         (8)  Annual accounts 2011, p. 42.

         (9)  Annual accounts 2011, p. 46.

         (10)  Texts adopted, P7_TA(2013)0134 (see page 374 of this Official Journal).


title: 2011/600/EU: Decision of the European Parliament of 10 May 2011 on discharge in respect of the implementation of the budget of Eurojust for the financial year 2009#Resolution of the European Parliament of 10 May 2011 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of Eurojust for the financial year 2009

text:
               27.9.2011

               EN

               Official Journal of the European Union

               L 250/215

         DECISION OF THE EUROPEAN PARLIAMENT
   of 10 May 2011
   on discharge in respect of the implementation of the budget of Eurojust for the financial year 2009
   (2011/600/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of Eurojust for the financial year 2009,

               —

               having regard to the Court of Auditors’ report on the annual accounts of Eurojust for the financial year 2009, together with Eurojust’s replies (1),

               —

               having regard to the Council’s recommendation of 15 February 2011 (05892/2011 — C7-0052/2011),

               —

               having regard to Article 276 of the EC Treaty and Article 319 of the Treaty on the Functioning of the European Union,

               —

               having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

               —

               having regard to Council Decision 2002/187/JHA of 28 February 2002 setting up Eurojust with a view to reinforcing the fight against serious crime (3), and in particular Article 36 thereof,

               —

               having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,

               —

               having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

               —

               having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0133/2011),

               1.

               Grants the Administrative Director of Eurojust discharge in respect of the implementation of Eurojust’s budget for the financial year 2009;

               2.

               Sets out its observations in the Resolution below;

               3.

               Instructs its President to forward this Decision and the Resolution that forms an integral part of it to the Administrative Director of Eurojust, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

            The President

         Jerzy BUZEK

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 338, 14.12.2010, p. 144.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 63, 6.3.2002, p. 1.

      (4)  OJ L 357, 31.12.2002, p. 72.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 10 May 2011
      with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of Eurojust for the financial year 2009
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of Eurojust for the financial year 2009,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of Eurojust for the financial year 2009, together with Eurojust’s replies (1),

                  —

                  having regard to the Council’s recommendation of 15 February 2011 (05892/2011 — C7-0052/2011),

                  —

                  having regard to Article 276 of the EC Treaty and Article 319 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

                  —

                  having regard to Council Decision 2002/187/JHA of 28 February 2002 setting up Eurojust with a view to reinforcing the fight against serious crime (3), and in particular Article 36 thereof,

                  —

                  having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,

                  —

                  having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0133/2011),

                  A.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts for the financial year 2009 are reliable and that the underlying transactions are legal and regular,

                  B.

                  whereas on 5 May 2010 Parliament granted the Administrative Director of Eurojust discharge for implementation of the Agency’s budget for the financial year 2008 (5), and in its Resolution accompanying the discharge Decision, inter alia:

                              —

                              welcomed the conclusion on 24 September 2008 of the Practical Agreement on arrangements of cooperation between the Agency and OLAF,

                              —

                              noted the Court of Auditors’ finding that in 2008 the Agency still had difficulties carrying forward appropriations, even if the amount appeared to be lower than in the previous year (13 % of final budget appropriations, instead of 25 % of appropriations carried over in 2007),

                              —

                              regretted that the Court of Auditors again found deficiencies in procurement procedures, as in the previous 3 years,

                  C.

                  whereas the budget of the Agency for 2009 was EUR 26 400 000, which is an increase of 6,4 % on the financial year 2008,

         Performance

                  1.

                  Welcomes the Agency’s initiative to include Key Performance Indicators in its 2010 unit plans; calls, nevertheless, on the Agency to inform the discharge authority on these key indicators and their links to the Agency’s objectives, budget and work programme; considers, in fact, that linking indicators to the objectives, budget and work programme of the Agency will allow stakeholders to evaluate the Agency’s performance better;

                  2.

                  Welcomes the Agency’s initiative to have presented, in the table annexed to the Court of Auditors’ 2009 report, a comparison of the operations that were carried out during 2008 and 2009 so as to enable the discharge authority to assess more effectively its performance from one year to the next;

         Carry-over of appropriations

                  3.

                  Notes with satisfaction that the Court of Auditors does not comment on the level of carry-overs and cancellations of appropriations in 2009;

                  4.

                  Notes that the discharge for the implementation of the budget for the Agency should be further based on its performance throughout the year;

                  5.

                  Calls on the Agency to inform the discharge authority of the steps taken to avoid carrying forward appropriations; such carrying forward of appropriations has been a constant issue during the previous discharge procedures;

         Improvement in procurement procedures

                  6.

                  Congratulates the Agency for establishing measures to estimate the market value of relevant products/services before commencing a procurement procedure; considers this initiative an important practice to be followed by other agencies; welcomes, in addition, the Agency’s annual procurement plan for 2009 which greatly helped the Agency’s units and services in the management of their tenders; considers that these initiatives improve the authorising officer’s guidance and control;

         Human resources

                  7.

                  Expresses concern at the fact that the Court of Auditors has again noted shortcomings in the planning and implementation of recruitment procedures; notes in particular that the level of vacant posts (24 %) is still too high, although less than in 2008 (26 %) and in 2007 (33 %); calls, accordingly, on the Agency to set up a comprehensive recruitment action plan to significantly reduce the vacancy rate and inform the discharge authority about this; welcomes, however, the Agency’s intention to reduce the vacancy rate to less than 8 % by the end of 2011;

                  8.

                  Congratulates the Agency’s achievement in 2009 of reducing the number of temporary staff ‘acting as staff members’ from 31 to 10 by the end of that year; calls, nevertheless, on the Agency to further reduce this number as recommended by the Internal Audit Service (IAS);

                  9.

                  Acknowledges that the Agency launched its new recruitment procedure in 2009 which provided that members of the selection board shall only invite applicants to interviews who score a minimum of 75 % on the preliminary evaluation and only place on reserve lists candidates who score a minimum of 75 % on the interview evaluation and on the written tests;

                  10.

                  Expresses concern that the Court of Auditors has reported that three out of six middle management (Head of Unit) posts at the Agency were filled on a temporary basis by ‘acting’ staff members; underlines that this situation indicates difficulties in attracting and retaining the right staff; welcomes, nevertheless, the Agency’s plan to adopt a decision which will provide that the final assessment of applicants will be based on the combination of the grade given at the moment of the completion of the application form, and the result of interviews and written tests; considers that this approach is an improvement of the Agency’s selection procedures as it takes into account, in an effective manner, each candidate’s merits;

         Internal audit

                  11.

                  Acknowledges that out of the 26 recommendations made by the IAS in 31 December 2008 just 4 have been resolved (2 of which were considered ‘critical’); notes, in addition, that the IAS issued an additional recommendation in December 2009 and that 15 out of the remaining 23 recommendations have an implementation delay of more than 12 months; calls, accordingly, on the Agency to inform the discharge authority of the reasons for such a delay and to take immediate action on improving the recruitment procedure, reducing the number of interim staff, restructuring the Human Resources (HR) Unit, developing an HR management plan, reinforcing the monitoring of HR activities and reviewing the content of the register of exceptions;

                  12.

                  Welcomes the Agency’s initiative of providing the discharge authority with the IAS Annual Internal Audit Report concerning the Agency; considers this to be an indication of transparency and an example of best practice to be followed by all other agencies;

                  13.

                  Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its Resolution of 10 May 2011 (6) on the performance, financial management and control of the agencies.

         (1)  OJ C 338, 14.12.2010, p. 144.

         (2)  OJ L 248, 16.9.2002, p. 1.

         (3)  OJ L 63, 6.3.2002, p. 1.

         (4)  OJ L 357, 31.12.2002, p. 72.

         (5)  OJ L 252, 25.9.2010, p. 202.

         (6)  Texts adopted, P7_TA(2011)0163 (see page 269 of this Official Journal).


title: 2013/297/EU: Council Decision of 13 May 2013 on the conclusion of the Agreement between the European Union and Ukraine amending the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas#Agreement between the European Union and Ukraine amending the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas

text:
               20.6.2013

               EN

               Official Journal of the European Union

               L 168/10

      COUNCIL DECISION

   of 13 May 2013
   on the conclusion of the Agreement between the European Union and Ukraine amending the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas
   (2013/297/EU)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on European Union,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 77(2)(a), in conjunction with Article 218(6)(a), thereof,
   Having regard to the proposal from the European Commission,
   Having regard to the consent of the European Parliament,
   Whereas:

               (1)

               In accordance with Council Decision 2012/428/EU (1), the Agreement between the European Union and Ukraine amending the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas (‘the Agreement’) was signed on 23 July 2012, subject to its conclusion.

               (2)

               The Agreement should be approved.

               (3)

               This Decision constitutes a development of the provisions of the Schengen acquis in which the United Kingdom does not take part, in accordance with Council Decision 2000/365/EC of 29 May 2000 concerning the request of the United Kingdom of Great Britain and Northern Ireland to take part in some of the provisions of the Schengen acquis
                   (2); the United Kingdom is therefore not taking part in its adoption and is not bound by it or subject to its application.

               (4)

               This Decision constitutes a development of the provisions of the Schengen acquis in which Ireland does not take part, in accordance with Council Decision 2002/192/EC of 28 February 2002 concerning Ireland’s request to take part in some of the provisions of the Schengen acquis
                   (3); Ireland is therefore not taking part in its adoption and is not bound by it or subject to its application.

               (5)

               In accordance with Articles 1 and 2 of the Protocol (No 22) on the position of Denmark, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, Denmark is not taking part in the adoption of this Decision and is not bound by it or subject to its application,

         HAS ADOPTED THIS DECISION:
   Article 1
   The Agreement between the European Union and Ukraine amending the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas is hereby approved on behalf of the Union.
   The text of the Agreement is attached to this Decision.
   Article 2
   The President of the Council shall designate the person(s) empowered to proceed, on behalf of the Union, to the notification provided for in Article 2 of the Agreement, in order to express the consent of the Union to be bound by the Agreement (4).
   Article 3
   This Decision shall enter into force on the day of its adoption.

      Done at Brussels, 13 May 2013.

            For the Council

            The President

         S. COVENEY

      (1)  OJ L 199, 26.7.2012, p. 1.

      (2)  OJ L 131, 1.6.2000, p. 43.

      (3)  OJ L 64, 7.3.2002, p. 20.

      (4)  The date of entry into force of the Agreement will be published in the Official Journal of the European Union by the General Secretariat of the Council.

         AGREEMENT

      between the European Union and Ukraine amending the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas
      THE EUROPEAN UNION,
      of the one part, and
      UKRAINE,
      of the other part,
      hereinafter referred to as ‘the Parties’,
      HAVING REGARD to the Agreement between the European Community and Ukraine on the facilitation of the issuance of visas, which entered into force on 1 January 2008,
      DESIRING to further facilitate people to people contacts,
      RECOGNISING the importance of the introduction of a visafree travel regime for the citizens of Ukraine in due course, provided that the conditions for well-managed and secure mobility are in place,
      TAKING INTO ACCOUNT the entry into force of Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code) (1), which, in particular provides for the obligatory motivation of a visa refusal and the right to appeal for applicants in case of refusal,
      TAKING INTO ACCOUNT the Protocol on the Schengen acquis integrated into the framework of the European Union and the Protocol on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice and, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, and confirming that the provisions of this Agreement do not apply to the United Kingdom and Ireland,
      TAKING INTO ACCOUNT the Protocol on the position of Denmark annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union and confirming that the provisions of this Agreement do not apply to Denmark,
      HAVE AGREED AS FOLLOWS:
      Article 1
      The Agreement between the European Community and Ukraine on the facilitation of the issuance of visas, hereinafter referred to as ‘the Agreement’, shall be amended in accordance with the provisions of this Article:

                  (1)

                  In the title, the word ‘Community’ shall be replaced by the word ‘Union’.

                  (2)

                  In Article 1(2), the following first subparagraph shall be inserted:
                  Ukraine may only reintroduce the visa requirement for citizens or certain categories of citizens of all Member States and not for citizens or certain categories of citizens of individual Member States.

                  (3)

                  In Article 2(1) and (2), the word ‘Community’ shall be replaced by the words ‘European Union’.

                  (4)

                  In Article 3 point (e), the word ‘Community’ shall be replaced by the words ‘European Union’.

                  (5)

                  Article 4(1) shall be amended as follows:

                              (a)

                              point (c) shall be replaced by the following:

                                          ‘(c)

                                          for drivers conducting international cargo and passenger transportation services to the territories of the Member States in vehicles registered in Ukraine:

                                                      —

                                                      a written request from the national association of carriers of Ukraine providing for international road transportation, stating the purpose, duration, destination(s), and frequency of the trips;’;

                              (b)

                              point (e) shall be replaced by the following:

                                          ‘(e)

                                          for journalists and the technical crew accompanying them in a professional capacity:

                                                      —

                                                      a certificate or other document issued by a professional organisation or the applicant’s employer proving that the person concerned is a qualified journalist and stating that the purpose of the journey is to carry out journalistic work or proving that the person is a member of the technical crew accompanying the journalist in a professional capacity;’;

                              (c)

                              point (i) shall be replaced by the following:

                                          ‘(i)

                                          for participants in official exchange programmes organised by twin cities and other municipal entities:

                                                      —

                                                      a written request of the Head of Administration/Mayor of those cities or other municipal entities;’;

                              (d)

                              point (j) shall be replaced by the following:

                                          ‘(j)

                                          for close relatives — spouse, children (including adopted), parents (including custodians), grandparents and grandchildren — visiting citizens of Ukraine legally residing in the territory of the Member States or citizens of the European Union residing in the territory of the Member State of which they are nationals:

                                                      —

                                                      a written request from the host person;’;

                              (e)

                              point (m) shall be replaced by the following:

                                          ‘(m)

                                          for visiting for medical reasons and necessary accompanying persons:

                                                      —

                                                      an official document of the medical institution confirming the necessity of medical care in that institution, the necessity of being accompanied and proof of sufficient financial means to pay the medical treatment;’;

                              (f)

                              the following points shall be added:

                                          ‘(n)

                                          for representatives of civil society organisations when undertaking trips for the purposes of educational training, seminars, conferences, including in the framework of exchange programmes:

                                                      —

                                                      a written request issued by the host organisation, a confirmation that the person is representing the civil society organisation and the certificate on establishment of such organisation from the relevant Register issued by a state authority in accordance with the national legislation;

                                          (o)

                                          for members of the professions participating in international exhibitions, conferences, symposia, seminars or other similar events held in the territory of the Member States:

                                                      —

                                                      a written request from the host organisation confirming that the person concerned is participating in the event;

                                          (p)

                                          for representatives of religious communities:

                                                      —

                                                      a written request from a religious community registered in Ukraine, stating the purpose, duration and frequency of the trips;

                                          (q)

                                          for participants in official Europan Union cross-border cooperation programmes, such as under the European Neighbourhood and Partnership Instrument (ENPI):

                                                      —

                                                      a written request by the host organisation.’.

                  (6)

                  In Article 5, paragraphs 1 to 3, shall be replaced by the following:
                  ‘1.   Diplomatic missions and consular posts of the Member States shall issue multiple-entry visas with the term of validity of five years to the following categories of persons:

                              (a)

                              members of national and regional Governments and Parliaments, Constitutional Courts and Supreme Courts, national and regional prosecutors and their deputies, if they are not exempted from the visa requirement by the present Agreement, in the exercise of their duties;

                              (b)

                              permanent members of official delegations who, following official invitations addressed to Ukraine, shall regularly participate in meetings, consultations, negotiations or exchange programmes, as well as in events held in the territory of the Member States by intergovernmental organisations;

                              (c)

                              spouses and children (including adopted), who are under the age of 21 or are dependant, and parents (including custodians) visiting citizens of Ukraine legally residing in the territory of the Member States or citizens of the European Union residing in the territory of the Member State of which they are nationals;

                              (d)

                              business people and representatives of business organisations who regularly travel to the Member States;

                              (e)

                              journalists and the technical crew accompanying them in a professional capacity.

                        By way of derogation from the first subparagraph, where the need or the intention to travel frequently or regularly is manifestly limited to a shorter period, the term of validity of the multiple-entry visa shall be limited to that period, in particular where

                              —

                              in the case of the persons referred to in point (a), the term of office,

                              —

                              in the case of the persons referred to in point (b), the term of the validity of the status as a permanent member of an official delegation,

                              —

                              in the case of the persons referred to in point (c), the period of validity of the authorisation for legal residence of citizens of Ukraine legally residing in the European Union,

                              —

                              in the case of the persons referred to in point (d), the term of validity of the status as a representative of the business organisation or the work contract,

                              —

                              in the case of the persons referred to in point (e), the work contract

                        is less than five years.
                  2.   Diplomatic missions and consular posts of the Member States shall issue multiple-entry visas with the term of validity of one year to the following categories of persons, provided that during the previous year they have obtained at least one visa, have made use of it in accordance with the laws on entry and stay of the visited State:

                              (a)

                              drivers conducting international cargo and passenger transportation services to the territories of the Member States in vehicles registered in Ukraine;

                              (b)

                              members of train, refrigerator and locomotive crews in international trains, travelling to the territories of the Member States;

                              (c)

                              persons participating in scientific, cultural and artistic activities, including university and other exchange programmes, who regularly travel to the Member States;

                              (d)

                              participants in international sports events and persons accompanying them in a professional capacity;

                              (e)

                              participants in official exchange programmes organised by twin cities and other municipal entities;

                              (f)

                              representatives of civil society organisations travelling regularly to Member States for the purposes of educational training, seminars, conferences, including in the framework of exchange programmes;

                              (g)

                              for participants in official European Union cross-border cooperation programmes, such as under the European Neighbourhood and Partnership Instrument (ENPI);

                              (h)

                              students and post-graduate students who regularly travel for the purposes of study or educational training, including in the framework of exchange programmes;

                              (i)

                              for representatives of religious communities:

                              (j)

                              for members of the professions participating in international exhibitions, conferences, symposia, seminars or other similar events held in the territory of the Member States;

                              (k)

                              persons needing to visit regularly for medical reasons and necessary accompanying persons.

                        By way of derogation from the first subparagraph, where the need or the intention to travel frequently or regularly is manifestly limited to a shorter period, the term of validity of the multiple-entry visa shall be limited to that period.
                  3.   Diplomatic missions and consular posts of the Member States shall issue multiple-entry visas with the term of validity of a minimum of two years and a maximum of five years to the categories of persons referred to in paragraph 2 of this Article, provided that during the previous two years they have made use of the one year multiple-entry visas in accordance with the laws on entry and stay of the visited State unless the need or the intention to travel frequently or regularly is manifestly limited to a shorter period, in which case the term of validity of the multiple-entry visa shall be limited to that period.’.

                  (7)

                  Article 6 shall be amended as follows:

                              (a)

                              paragraph 3 shall be replaced by the following:
                              ‘3.   The Member States shall charge a fee of EUR 70 for processing visas in cases where, based on the distance between the applicant’s place of residence and the place where the application has been submitted, the applicant has requested that a decision on the application be taken within three days of its submission, and the consulate has accepted to take a decision within three days.’;

                              (b)

                              in paragraph 4,

                                          (i)

                                          the introductory words shall be replaced by the following:
                                          ‘4.   Without prejudice to paragraph 5 fees for processing the visa application are waived for the following categories of persons:’;

                                          (ii)

                                          in point (a) the following words shall be added:
                                          ‘or citizens of the European Union residing in the territory of the Member State of which they are nationals’;

                                          (iii)

                                          in point (i) the following words shall be added:
                                          ‘and other municipal entities’;

                                          (iv)

                                          in point (j) the following words shall be added:
                                          ‘and the technical crew accompanying them in a professional capacity’;

                                          (v)

                                          the following points shall be added:

                                                      ‘(o)

                                                      representatives of the religious communities;

                                                      (p)

                                                      for members of the professions participating in international exhibitions, conferences, symposia, seminars or other similar events held in the territory of the Member States;

                                                      (q)

                                                      participants aged 25 years or less in seminars, conferences, sports, cultural or educational events, organised by non-profit organisations;

                                                      (r)

                                                      representatives of civil society organisations undertaking trips for the purposes of educational training, seminars, conferences, including in the framework of exchange programmes;

                                                      (s)

                                                      for participants in official European Union cross-border cooperation programmes, such as under the European Neighbourhood and Partnership Instrument (ENPI).’;

                                          (vi)

                                          the following subparagraph shall be added:
                                          ‘The first subparagraph shall apply also where the purpose of the journey is transit.’;

                              (c)

                              the following paragraph shall be added:
                              ‘5.   If a Member State cooperates with an external service provider in view of issuing a visa the external service provider may charge a service fee. This fee shall be proportionate to the costs incurred by the external service provider while performing its tasks and shall not exceed EUR 30. The Member States shall maintain the possibility for all applicants to lodge their applications directly at their consulates If applicants are required to obtain an appointment for the lodging of an application the appointment shall, as a rule, take place within a period of two weeks from the date when the appointment was requested.’.

                  (8)

                  Article 10 shall be amended as follows:

                              (a)

                              the title shall be replaced by the following:

                                 ‘Diplomatic and service passports’;

                              (b)

                              in paragraph 2, which shall be renumbered 3, the words ‘in paragraph 1’ shall be replaced by the words ‘in paragraphs 1 and 2’;

                              (c)

                              a new paragraph 2 shall be inserted as follows:
                              ‘2.   Citizens of Ukraine who are holders of valid biometric service passports can enter, leave and transit through the territories of the Member States without visas.’.

                  (9)

                  Article 12(1) shall be amended as follows:

                              (a)

                              in the first sentence the word ‘Community’ shall be replaced by the word ‘Union’;

                              (b)

                              in the second sentence, the word ‘Community’ shall be replaced by the words ‘European Union’ and the words ‘Commission of the European Communities’ by the words ‘European Commission.’.

                  (10)

                  Article 13 shall be amended as follows:

                              (a)

                              the existing paragraph shall be numbered as paragraph 1;

                              (b)

                              the following paragraph shall be added:
                              ‘2.   The provisions of bilateral Agreements or arrangements between individual Member States and Ukraine concluded before the entry into force of this Agreement providing for the exemption of the holders of non-biometric service passports from the visa requirement shall continue to apply without prejudice to the right of the Member States concerned or Ukraine to denounce or suspend these bilateral agreements or arrangements.’.

            Article 2
      This Agreement shall be ratified or approved by the Parties in accordance with their respective procedures and shall enter into force on the first day of the second month following the date on which the last Party notifies the other that the procedures referred to above have been completed.

         Done at Brussels, on the 23rd day of July in the year two thousand and twelve, in duplicate in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Ukrainian languages, each of those texts being equally authentic.

            За Европейския съюз
            Por la Unión Europea
            Za Evropskou unii
            For Den Europæiske Union
            Für die Europäische Union
            Euroopa Liidu nimel
            Για την Ευρωπαϊκή Ένωση
            For the European Union
            Pour l'Union européenne
            Per l'Unione europea
            Eiropas Savienības vārdā –
            Europos Sąjungos vardu
            Az Európai Unió részéről
            Għall-Unjoni Ewropea
            Voor de Europese Unie
            W imieniu Unii Europejskiej
            Pela União Europeia
            Pentru Uniunea Europeană
            Za Európsku úniu
            Za Evropsko unijo
            Euroopan unionin puolesta
            För Europeiska unionen
            За Європейське Спiвтовариство

            За Украйна
            Por Ucrania
            Za Ukrajinu
            For Ukraine
            Für die Ukraine
            Ukraina nimel
            Για την Ουκρανία
            For Ukraine
            Pour l'Ukraine
            Per l'Ucraina
            Ukrainas vārdā
            Ukrainos vardu
            Ukrajna részéről
            Għall-Ukrajna
            Voor Oekraïne
            W imieniu Ukrainy
            Pela Ucrânia
            Pentru Ucraina
            Za Ukrajinu
            Za Ukrajino
            Ukrainan puolesta
            På Ukrainas vägnar
            За Украïнy

         (1)  OJ L 243, 15.9.2009, p. 1.

         EUROPEAN UNION DECLARATION ON DOCUMENTS TO BE SUBMITTED WHEN APPLYING FOR SHORT-STAY VISAS
         The European Union will establish a harmonised list of supporting documents, in accordance with Article 48(1)(a) of the Visa Code, in order to ensure that applicants from Ukraine are required to submit, in principle, the same supporting documents.

         EUROPEAN UNION DECLARATION ON FACILITATIONS FOR FAMILY MEMBERS
         The European Union takes note of the suggestion of Ukraine to give a wider definition to the notion of family members that should benefit from visa facilitation as well as of the importance that Ukraine attaches to the simplification of movement of this category of persons.
         In order to ease the mobility of an extended number of persons which have family links (in particular sisters and brothers and their children) with citizens of Ukraine legally residing in the territories of Member States or with citizens of the European Union residing in the territory of the Member State of which they are nationals, the European Union invites the Member States’ consular offices to make full use of the existing possibilities in the Visa Code for facilitating the issuance of visas to this category of persons, including in particular, the simplification of documentary evidence requested for the applicants, exemptions from handling fees and, where appropriate, the issuing of multiple-entry visas.

         EUROPEAN UNION DECLARATION ON ARTICLE 10 (2) OF THE AGREEMENT
         The European Union may invoke a partial suspension of the Agreement and in particular of Article 10(2), in accordance with the procedure set up by Article 14(5) of the Agreement, if the implementation of Article 10(2) is abused by Ukraine or leads to a threat to public security. If the implementation of Article 10(2) is suspended, the European Union shall initiate consultations in the framework of the Committee set up by the Agreement with a view to solving the problems that led to the suspension.

         JOINT DECLARATION CONCERNING SWITZERLAND AND LIECHTENSTEIN
         The Parties take note of the close relationship between the Union and Switzerland and Liechtenstein, particularly by virtue of the Agreement of 26 October 2004 concerning the association of these countries with the implementation, application and development of the Schengen acquis.
         In such circumstances, it is desirable that the authorities of Switzerland and Liechtenstein and Ukraine conclude, without delay, bilateral agreements on the facilitation of the issuance of short-stay visas in similar terms as the amended Agreement.


title: 2011/616/EU: Decision of the European Parliament of 10 May 2011 on discharge in respect of the implementation of the budget of the SESAR Joint Undertaking for the financial year 2009#Resolution of the European Parliament of 10 May 2011 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the SESAR Joint Undertaking for the financial year 2009

text:
               27.9.2011

               EN

               Official Journal of the European Union

               L 250/255

         DECISION OF THE EUROPEAN PARLIAMENT
   of 10 May 2011
   on discharge in respect of the implementation of the budget of the SESAR Joint Undertaking for the financial year 2009
   (2011/616/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the SESAR Joint Undertaking for the financial year 2009,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the SESAR Joint Undertaking for the financial year ended 31 December 2009, together with the replies of the Joint Undertaking (1),

               —

               having regard to the Council’s recommendation of 15 February 2011 (05894/2011 — C7-0051/2011),

               —

               having regard to Article 276 of the EC Treaty and Article 319 of the Treaty on the Functioning of the European Union,

               —

               having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

               —

               having regard to Council Regulation (EC) No 1361/2008 of 16 December 2008 amending Regulation (EC) No 219/2007 on the establishment of a joint undertaking to develop the new generation European air traffic management system (SESAR) (3), and in particular Article 4b thereof,

               —

               having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,

               —

               having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

               —

               having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Transport and Tourism (A7-0124/2011),

               1.

               Grants the Executive Director of the SESAR Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2009;

               2.

               Sets out its observations in the resolution below;

               3.

               Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Executive Director of the SESAR Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

            The President

         Jerzy BUZEK

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 342, 16.12.2010, p. 30.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 352, 31.12.2008, p. 12.

      (4)  OJ L 357, 31.12.2002, p. 72.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 10 May 2011
      with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the SESAR Joint Undertaking for the financial year 2009
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the SESAR Joint Undertaking for the financial year 2009,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the SESAR Joint Undertaking for the financial year ended 31 December 2009, together with the replies of the Joint Undertaking (1),

                  —

                  having regard to the Council’s recommendation of 15 February 2011 (05894/2011 — C7-0051/2011),

                  —

                  having regard to Article 276 of the EC Treaty and Article 319 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

                  —

                  having regard to Council Regulation (EC) No 1361/2008 of 16 December 2008 amending Regulation (EC) No 219/2007 on the establishment of a joint undertaking to develop the new generation European air traffic management system (SESAR) (3), and in particular Article 4b thereof,

                  —

                  having regard to the Financial Rules of the SESAR Joint Undertaking adopted by the SESAR Administrative Board on 28 July 2009 (hereinafter ‘SESAR Financial Rules’),

                  —

                  having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,

                  —

                  having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Transport and Tourism (A7-0124/2011),

                  A.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts for the financial year 2009 are reliable and that the underlying transactions are legal and regular,

                  B.

                  whereas the SESAR Joint Undertaking was set up in February 2007 to run the Single European Sky Air Traffic Management Research (SESAR) programme,

                  C.

                  whereas the Joint Undertaking is in a start-up phase and had not yet fully established its internal control and financial reporting systems by the end of 2009,

                  D.

                  whereas the Joint Undertaking will own all the tangible and intangible assets which it creates or which are transferred to it for the development phase of the SESAR project in accordance with specific agreements with its members,

                  E.

                  whereas in April 2010 the Court of Auditors delivered Opinion No 2/2010 on the SESAR Joint Undertaking Financial Rules,

                  1.

                  Welcomes the fact that the Court of Auditors found the Joint Undertaking’s accounts for 2009 to be reliable and the underlying transactions to be, in all material respects, legal and regular;

                  2.

                  Notes that the Joint Undertaking received EUR 55 000 000 in commitment appropriations and EUR 27 689 788 in payment appropriations from the Union budget for 2009;

         Implementation of the budget

                  3.

                  Notes that the Joint Undertaking final 2009 budget included commitment appropriations of EUR 325 000 000 and payment appropriations of EUR 157 000 000; further acknowledges that the utilisation rates for commitment and payment appropriations were 97,1 % and 43,2 % respectively;

                  4.

                  Recognises that the Joint Undertaking is still in a start-up period given that Regulation (EC) No 1361/2008, modifying the basic act of the SESAR Joint Undertaking (EC) No 219/2007, was only adopted on 16 December 2008;

                  5.

                  Notes that year-end bank deposits totalling EUR 86 800 000 represent a breach of the budgetary principle of equilibrium;

                  6.

                  Considers it important to set out the conditions under which, if the balance of the outturn account is positive, it shall be entered in the budget of the Joint Undertaking of the following financial year in order to specify the application of this derogation from the general budgetary principle of equilibrium;

                  7.

                  Is concerned that an integrated management system, allowing costs to be allocated to specific work packages and funding sources of operational costs to be identified, was not in place by December 2009;

                  8.

                  Requests that a report be attached to each year’s budget on the unspent appropriations carried over from previous years, explaining why those monies have not been used and how and when they will be used;

         Members’ contribution

                  9.

                  Calls on the Joint Undertaking to harmonise the presentation of members’ contributions in the accounts under the guidance of the Commission;

                  10.

                  Calls on the Joint Undertaking to further develop in its Implementing Rules Articles 97 and 98 of the SESAR Financial Rules with provisions on membership and co-financing and, in particular, on:

                              —

                              the arrangements for the accession of new members,

                              —

                              the in-kind contributions by members,

                              —

                              the terms and conditions under which the Joint Undertaking may audit the contributions of the members,

                              —

                              the conditions under which the Administrative Board may approve co-financing above the standard maximum rate of 50 %;

         Internal control systems

                  11.

                  Urges the Joint Undertaking to complete the implementation of its internal controls and financial information system;

                  12.

                  Welcomes the Court of Auditors’ finding that important steps were taken in 2009 to establish control systems but expresses concern that an integrated tool to manage financial, budget and operational information was not in place at year-end; notes the Joint Undertaking’s response that financial systems were in place by May 2010;

                  13.

                  Calls on the Joint Undertaking to include in its Financial Rules a specific reference to the powers of the Internal Audit Service (IAS) as its Internal Auditor, on the basis of the provision set out in the framework Financial Regulation for Community bodies;

                  14.

                  Considers, in particular, that the role of the IAS as Internal Auditor should be to advise the Joint Undertaking on dealing with risks, by issuing independent opinions on the quality of management and control systems and by issuing recommendations for improving the conditions of implementation of operations and promoting sound financial management; considers it to be also essential that the Joint Undertaking submit to the discharge authority a report drawn up by its director summarising the number and the type of internal audits conducted by the Internal Auditor, the recommendations made and the actions taken regarding these recommendations;

                  15.

                  Is of the opinion that, in view of the size of its budget and the complexity of its tasks, the Joint Undertaking should establish an audit committee, reporting directly to the Administrative Board;

         Financial Regulation

                  16.

                  Acknowledges that following the entry into force of Regulation (EC) No 1361/2008 amending Regulation (EC) No 219/2007, the Administrative Board adopted new SESAR Financial Rules on 28 July 2009; considers that these rules are largely based on the principles of the framework Financial Regulation although is of the opinion that further improvement could be made in relation to:

                              —

                              the exceptions to budgetary principles,

                              —

                              the role of the IAS,

                              —

                              the establishment of an audit committee,

                              —

                              provisions concerning membership of SESAR.

         (1)  OJ C 342, 16.12.2010, p. 30.

         (2)  OJ L 248, 16.9.2002, p. 1.

         (3)  OJ L 352, 31.12.2008, p. 12.

         (4)  OJ L 357, 31.12.2002, p. 72.