title: 2013/616/EU: Decision of the European Parliament of 17 April 2013 on discharge in respect of the implementation of the budget of the Clean Sky Joint Undertaking for the financial year 2011#Resolution of the European Parliament of 17 April 2013 with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the Clean Sky Joint Undertaking for the financial year 2011

text:
               16.11.2013

               EN

               Official Journal of the European Union

               L 308/340

         DECISION OF THE EUROPEAN PARLIAMENT
   of 17 April 2013
   on discharge in respect of the implementation of the budget of the Clean Sky Joint Undertaking for the financial year 2011
   (2013/616/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the Clean Sky Joint Undertaking for the financial year 2011,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the Clean Sky Joint Undertaking for the financial year 2011, together with the replies of the Joint Undertaking (1),

               —

               having regard to the Council’s recommendation of 12 February 2013 (05755/2013 – C7-0040/2013),

               —

               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 Council Regulation (EC) No 71/2008 of 20 December 2007 setting up the Clean Sky Joint Undertaking (4), and in particular Article 11(4) thereof,

               —

               having regard to the Financial Rules of the Clean Sky Joint Undertaking adopted by Decision of its Governing Board on 7 November 2008,

               —

               having regard to Opinion No 2/2011 on the Clean Sky Joint Undertaking’s Financial Rules, delivered by the Court of Auditors on 8 February 2011,

               —

               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 (A7-0086/2013),

               1.

               Grants the Executive Director of the Clean Sky Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’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 Clean Sky 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

         Martin SCHULZ

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 6, 10.1.2013, p. 9.

      (2)  OJ L 248, 16.9.2002, p. 1.

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

      (4)  OJ L 30, 4.2.2008, p. 1.

      (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 the decision on discharge in respect of the implementation of the budget of the Clean Sky Joint Undertaking for the financial year 2011
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the Clean Sky Joint Undertaking for the financial year 2011,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the Clean Sky Joint Undertaking for the financial year 2011, together with the replies of the Joint Undertaking (1),

                  —

                  having regard to the Council’s recommendation of 12 February 2013 (05755/2013 – C7-0040/2013),

                  —

                  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 Council Regulation (EC) No 71/2008 of 20 December 2007 setting up the Clean Sky Joint Undertaking (4), and in particular Article 11(4) thereof,

                  —

                  having regard to the Financial Rules of the Clean Sky Joint Undertaking adopted by Decision of its Governing Board on 7 November 2008,

                  —

                  having regard to Opinion No 2/2011 on the Clean Sky Joint Undertaking’s Financial Rules, delivered by the Court of Auditors on 8 February 2011,

                  —

                  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 (A7-0086/2013),

                  A.

                  whereas the Clean Sky Joint Undertaking (‘the Joint Undertaking’) was set up in December 2007 for a period of 10 years to accelerate the development, validation and demonstration of clean air transport technologies in the Union for earliest possible deployment;

                  B.

                  whereas the Joint Undertaking started to work autonomously in November 2009;

                  C.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that annual accounts of the Joint Undertaking for the financial year 2011 are reliable;

                  D.

                  whereas the Court of Auditors has delivered a qualified opinion on the legality and the regularity of the transactions underlying the Joint Undertaking’s accounts;

                  E.

                  whereas the maximum contribution for the period of 10 years from the Union to the Joint Undertaking is EUR 800 000 000 to be paid from the budget of the Seventh Research Framework Programme;

         Budgetary and Financial Management

                  1.

                  Takes note that the Joint Undertaking’s final amending budget for the financial year 2011 included commitment appropriations of EUR 175 000 000 and payment appropriations of EUR 159 800 000; further acknowledges that the utilisation rates for commitment and payment appropriations were 94 % and 64 % respectively; calls for a detailed progress report on those shortcomings which makes specific proposals for a gradual improvement in utilisation rates;

                  2.

                  Expresses concern that the low rate for the payment appropriation reflects delays in the implementation of the Joint Undertaking’s activities include significant delays between the publication of the calls for proposals and the signature of the grant agreements; urges the Joint Undertaking to implement the necessary measures to avoid such delays reducing the average time between the publication of the call for proposals and the signature of the Joint Undertaking grant agreements from the 291 days of the first call of 2011;

                  3.

                  Emphasises the fact that the low implementation of the budget turns out in excessive cash balance which stood at EUR 51 000 000 at the end of the year, representing 32 % of the available payment appropriations for 2011;

                  4.

                  Regrets the fact that the Joint Undertaking, in contravention of its Financial Rules, carried over EUR 68 000 000 of payment appropriations to 2012, without a decision by the Governing Board;

                  5.

                  Acknowledges the significant delays which occurred in 2011 in receiving the cost claims from grant agreements with Members and that the validation of a large number of claims could not, therefore, be completed for the final accounts; notes that the related in-kind contributions of EUR 52 000 000 could not be approved by the Governing Board in due time and, as a consequence, were not registered under net assets but reflected under liabilities; takes note that, as a consequence, the Joint Undertaking reported negative net assets of EUR 18 500 000 since the final accounts reflect this transitional situation that does not indicate any risk of solvency for the Joint Undertaking;

                  6.

                  Is concerned that annual accounts of the Joint Undertaking received a qualified opinion from the Court of Auditors on the legality and the regularity of the transactions underlying those accounts on the grounds that the error rate resulting from the ex post audits was 6,16 %; notes that the Joint Undertaking completed ex-post audits covering EUR 44 300 000 (18,8 % of all cost claims received by the Joint Undertaking in the triennium beginning in 2008); regrets that the error rate resulting from those ex post audits was 6,16 % and 4,09 % when taking into account the corrective actions implemented such as a recovery mechanism; reiterates that the Joint Undertaking should reinforce without delay the quality of its ex-ante controls related to the grant management; requests that the discharge authority is informed of the results of the following ex-post audit processes conducted by the Joint Undertaking and that a detailed progress report be produced which makes specific proposals for a gradual reduction in error rates;

         Internal control systems

                  7.

                  Notes from the Court of Auditors that the Joint Undertaking has not completely implemented its internal controls and financial information systems during 2011 including the new tool to manage the data relating to the cost claims submitted by the members and beneficiaries and that further work is needed on the ex ante control procedures applied for the validation of cost claims; urges the Joint Undertaking to implement the necessary measures for finalising its internal controls and financial information systems and the tools deemed necessary;

                  8.

                  Regrets to be informed that the following weaknesses were noted in the ex-ante control procedures applied to cost claims submitted:

                              —

                              the checklists used for the ex ante control on cost claims were not always complete,

                              —

                              in one case, the audit certificate accompanying the cost claim of an associate included exceptions affecting personnel costs and subcontracting however no adjustment to the cost claim was made as a result of these exceptions,

                              —

                              contrary to the manual of financial procedures, there is no evidence that the operational agents are also verifying the financial aspects of the implementation of the contracts, and

                              —

                              in at least three transactions, the financial verifying and the authorising officer functions were the responsibility of the head of administration, contrary to the provisions of the manual of financial procedures and the principle of segregation of duties;

                  9.

                  Acknowledges that the Accounting Officer completed the validation exercise of the underlying business processes in March 2012, as required by the Joint Undertaking’s Financial Rules; notes that a number of recommendations were made in the Accounting Officer’s validation report, in particular the need to improve the system for the validation of cost claims and the implementation of a tool to properly report to management, on budgetary and accounting matters;

                  10.

                  Notes that in 2011, the Commission’s Internal Audit Service carried out a risk assessment exercise and that based on the results of that risk assessment a strategic audit plan for 2012-2014 was presented to the Governing Board for adoption; recalls that the Joint Undertaking started to work autonomously in November 2009;

                  11.

                  Takes note that the procedure for issuing recovery orders relating to the Joint Undertaking’s running costs was not properly applied as the request to the members to pay their 2011 contributions was not accompanied by the cash-flow forecast as required under the funding agreement;

         Other management matters

                  12.

                  Notes the Court of Auditors’ finding that at the end of 2011, the Joint Undertaking had not yet completed the internal procedures to be used for the supervision of the application of the provisions regarding the protection, use and dissemination of research results;

                  13.

                  Reiterates that the Court of Auditors’ suggested in its Opinion of 2011 on the Joint Undertaking’s Financial Rules that a number of areas needed to be amended to but this procedure has not yet been completed; welcomes that the Joint Undertaking will amend its Financial Rules together with the update to the framework financial regulation;

                  14.

                  Notes that during 2011, the Joint Undertaking set up a Business Continuity Plan and made progress on the formalisation of the IT security policies and essential elements of a Disaster Recovery Plan have been defined however further work is needed to finalise and approve it;

                  15.

                  Welcomes the fact that the Host State Agreement between the Joint Undertaking and the Belgian authorities concerning office accommodation, privileges and immunities and other support was signed on February 2012;

         Other issues

                  16.

                  Reiterates its invitation for the Court of Auditors to provide, within a reasonable deadline, a special report to Parliament on common issues which occur due to the nature of the joint undertakings, and which should be addressed by the joint undertakings together with their partners in order to ensure their added value and efficient execution of Union research, technological development and demonstration programmes; notes, furthermore, that that report should include an assessment of the effectiveness of the joint undertakings’ establishment and structure.

         (1)  OJ C 6, 10.1.2013, p. 9.

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

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

         (4)  OJ L 30, 4.2.2008, p. 1.

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


title: 2011/614/EU: Decision of the European Parliament of 10 May 2011 on discharge in respect of the implementation of the budget of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines 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 Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines for the financial year 2009

text:
               27.9.2011

               EN

               Official Journal of the European Union

               L 250/250

         DECISION OF THE EUROPEAN PARLIAMENT
   of 10 May 2011
   on discharge in respect of the implementation of the budget of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines for the financial year 2009
   (2011/614/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines for the financial year 2009,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the Innovative Medicines Initiative 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 73/2008 of 20 December 2007 setting up the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines (3), and in particular Article 11(4) 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 (A7-0129/2011),

               1.

               Grants the Executive Director of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines 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 Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines, 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. 15.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 30, 4.2.2008, p. 38.

      (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 Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines for the financial year 2009
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines for the financial year 2009,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the Innovative Medicines Initiative 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 73/2008 of 20 December 2007 setting up the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines (3), and in particular Article 11(4) thereof,

                  —

                  having regard to the Financial Rules of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines adopted by Decision of its Governing Board on 2 February 2009,

                  —

                  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 (A7-0129/2011),

                  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 Innovative Medicines Initiative Joint Undertaking was set up in February 2007 to significantly improve the efficiency and effectiveness of the drug development process with the long-term aim that the pharmaceutical sector produces more effective and safer innovative medicines,

                  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,

         Implementation of the budget

                  1.

                  Notes that the Joint Undertaking final 2009 budget included commitment appropriations of EUR 82 000 000 and payment appropriations of EUR 82 000 000; further acknowledges that the utilisation rates for commitment and payment appropriations were 97 % and 1 % respectively;

                  2.

                  Recognises that the Joint Undertaking is still in a start-up period; is, nevertheless, concerned that the rate for payment appropriations was only 1 %;

         Members’ contribution

                  3.

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

                  4.

                  Calls, in addition, on the Joint Undertaking to further develop 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 Governing Board may approve co-financing;

         Internal control systems

                  5.

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

                  6.

                  Calls, in addition, 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;

                  7.

                  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 Executive 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;

                  8.

                  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 Governing Board;

         Lack of host agreement

                  9.

                  Urges the Joint Undertaking to rapidly conclude a host agreement with Belgium concerning office accommodation, privileges and immunities and other support to be provided by Belgium to the Joint Undertaking as provided by the Regulation (EC) No 73/2008 setting up the Joint Undertaking.

         (1)  OJ C 342, 16.12.2010, p. 15.

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

         (3)  OJ L 30, 4.2.2008, p. 38.

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


title: 2012/799/EU: Decision of the European Parliament of 23 October 2012 on the discharge for implementation of the European Union general budget for the financial year 2010, Section II — Council#Resolution of the European Parliament of 23 October 2012 with observations forming an integral part of the decision on the discharge for implementation of the European Union general budget for the financial year 2010, Section II — Council

text:
               20.12.2012

               EN

               Official Journal of the European Union

               L 350/69

         DECISION OF THE EUROPEAN PARLIAMENT
   of 23 October 2012
   on the discharge for implementation of the European Union general budget for the financial year 2010, Section II — Council
   (2012/799/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the European Union general budget for the financial year 2010 (1),

               —

               having regard to the annual accounts of the European Union for the financial year 2010 (COM(2011)473 — C7-0258/2011) (2),

               —

               having regard to the Council’s annual report to the discharge authority on internal audits carried out in 2010,

               —

               having regard to the Annual Report of the Court of Auditors on implementation of the budget for the financial year 2010, together with the institutions’ replies (3),

               —

               having regard to the statement of assurance (4) as to the reliability of the accounts and the legality and regularity of the underlying transactions, provided by the Court of Auditors for the financial year 2010 pursuant to Article 287 of the Treaty on the Functioning of the European Union,

               —

               having regard to its decision of 10 May 2012 (5) postponing its decision on granting discharge for the financial year 2010, and the accompanying resolution,

               —

               having regard to Article 314(10) and Articles 317, 318 and 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 (6), and in particular Articles 50, 86, 145, 146 and 147 thereof,

               —

               having regard to Decision No 31/2008 of the Secretary-General of the Council/High Representative for the Common Foreign and Security Policy concerning reimbursement of travel expenses of delegates of Council Members (7),

               —

               having regard to the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 17 May 2006 on budgetary discipline and sound financial management (8),

               —

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

               —

               having regard to the second report of the Committee on Budgetary Control (A7-0301/2012),

               1.

               Refuses to grant the Council’s Secretary-General discharge for implementation of the Council budget for the financial year 2010;

               2.

               Sets out its observations in the resolution below;

               3.

               Instructs its President to forward this decision and the resolution forming an integral part thereof to the Council, the Commission, the Court of Justice of the European Union, the Court of Auditors, the European Ombudsman and the European Data Protection Supervisor, 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 L 64, 12.3.2010.

      (2)  OJ C 332, 14.11.2011, p. 1.

      (3)  OJ C 326, 10.11.2011, p. 1.

      (4)  OJ C 332, 14.11.2011, p. 134.

      (5)  OJ L 286, 17.10.2012, p. 22.

      (6)  OJ L 248, 16.9.2002, p. 1.

      (7)  Decision stemming from the Rules of Procedure of the Council of 22 July 2002 (OJ L 230, 28.8.2002, p. 7).

      (8)  OJ C 139, 14.6.2006, p. 1.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 23 October 2012
      with observations forming an integral part of the decision on the discharge for implementation of the European Union general budget for the financial year 2010, Section II — Council
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the European Union general budget for the financial year 2010 (1),

                  —

                  having regard to the annual accounts of the European Union for the financial year 2010 (COM(2011)473 — C7-0258/2011) (2),

                  —

                  having regard to the Council’s annual report to the discharge authority on internal audits carried out in 2010,

                  —

                  having regard to the Annual Report of the Court of Auditors on implementation of the budget for the financial year 2010, together with the institutions’ replies (3),

                  —

                  having regard to the statement of assurance (4) as to the reliability of the accounts and the legality and regularity of the underlying transactions, provided by the Court of Auditors for the financial year 2010 pursuant to Article 287 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to its decision of 10 May 2012 (5) postponing its decision on granting discharge for the financial year 2010, and the accompanying resolution,

                  —

                  having regard to Article 314(10) and Articles 317, 318 and 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 (6), and in particular Articles 50, 86, 145, 146 and 147 thereof,

                  —

                  having regard to Decision No 31/2008 of the Secretary-General of the Council/High Representative for the Common Foreign and Security Policy concerning reimbursement of travel expenses of delegates of Council Members (7),

                  —

                  having regard to the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 17 May 2006 on budgetary discipline and sound financial management (8),

                  —

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

                  —

                  having regard to the second report of the Committee on Budgetary Control (A7-0301/2012),

                  A.

                  whereas ‘citizens have the right to know how their taxes are being spent and how the power entrusted to political bodies is handled’ (9),

                  B.

                  whereas the Council, as an institution of the Union, should be subject to democratic accountability towards Union citizens as far as the implementation of Union funds is concerned,

                  C.

                  whereas Parliament is the sole directly elected body among the Union institutions and has responsibility to grant discharge in respect of the implementation of the general budget of the European Union,

                  1.

                  Highlights the role that the Treaty on the Functioning of the European Union gives Parliament in respect of budget discharge;

                  2.

                  Points out that, under Article 335 of the Treaty on the Functioning of the European Union, ‘the Union shall be represented by each of the institutions, by virtue of their administrative autonomy, in matters relating to their respective operation’, and that accordingly, taking into account Article 50 of the Financial Regulation, the institutions are individually responsible for the implementation of their budgets;

                  3.

                  Notes that, under Rule 77 of its Rules of Procedure, ‘[the] provisions governing the procedure for granting discharge to the Commission in respect of the implementation of the budget shall likewise apply to the procedure for granting discharge to: […]

                              —

                              the persons responsible for the implementation of the budgets of other institutions and bodies of the European Union such as the Council (in its executive capacity), the Court of Justice of the European Union, the Court of Auditors, the European Economic and Social Committee and the Committee of the Regions’;

         Opinion of the Court of Auditors on the Council in its statement of assurance for 2010

                  4.

                  Underlines that in its 2010 annual report, the Court of Auditors criticised the financing of the Residence Palace building project because of the advance payments made (paragraph 7.19); notes that the Court of Auditors made the observation that during the period 2008-10 advance payments made by the Council totalled EUR 235 000 000; notes that the amounts paid came from under-utilised budget lines; points out that ‘under-utilised’ is the politically correct term for ‘over-budgeted’; underlines that in 2010 the Council increased the budget line ‘Acquisition of immovable property’ by EUR 40 000 000;

                  5.

                  Notes the Council’s explanation concerning the fact that the appropriations were made available by budget transfers authorised by the budget authority in accordance with the procedures laid down in Articles 22 and 24 of the Financial Regulation;

                  6.

                  Shares the Court of Auditors’ view that such a procedure does not comply with the principle of budget accuracy, despite the savings made in paying rent;

                  7.

                  Notes the Council’s reply that the amounts for the budget lines for interpretation and delegations’ travel expenses should be more in line with real consumption and calls for a better budgetary planning in order to avoid current practices in the future;

                  8.

                  Reminds the Court of Auditors of Parliament’s request to carry out an in-depth assessment of supervisory and control systems in the Council, similar to the assessments it carried out in relation to the Court of Justice, the European Ombudsman and the European Data Protection Supervisor in the course of preparation of the Court of Auditors’ annual report concerning the financial year 2010;

                  9.

                  Reiterates that an efficient supervision over the budgetary implementation process is a matter of high responsibility and its fulfilment depends entirely on an unhindered interinstitutional cooperation between the Council and Parliament;

         Pending issues

                  10.

                  Regrets the continual difficulties encountered with the Council in the discharge procedures for the 2007, 2008 and 2009 financial years in terms of an open and formal dialogue with the Committee on Budgetary Control and responses to the Committee’s questions; points out that Parliament refused to grant the Secretary-General of the Council discharge for implementation of the Council budget for the financial year 2009 for the reasons set out in its resolutions of 10 May 2011 (10) and 25 October 2011 (11);

                  11.

                  Acknowledges receipt of a series of documents for the 2010 discharge procedure (final financial statements for 2010, including the accounts, the financial activity report and the summary of the 2010 internal audits); is still waiting to receive all the necessary documents for discharge (in particular those relating to the complete internal audit carried out in 2010);

                  12.

                  Points out that, on 31 January 2012, the Chair of the Committee on Budgetary Control sent a letter (12) to the Presidency-in-Office of the Council requesting that the Council respond to the questions attached to the letter as part of the discharge procedure;

                  13.

                  Notes that, in its resolution with observations forming an integral part of the abovementioned decision of 10 May 2012 on the discharge for implementation of the general budget of the European Union for the financial year 2010, Section II — Council, Parliament asked 26 supplementary questions linked to the discharge procedure;

                  14.

                  Regrets that the Council refuses to answer these questions;

                  15.

                  Regrets, too, that the Council did not accept Parliament’s invitation to a meeting where the Committee on Budgetary Control debated the 2010 discharge for the Council;

                  16.

                  Deplores the fact that the attitude of the Council obstructs democratic control as well as transparency and accountability vis-à-vis Union taxpayers;

                  17.

                  Welcomes, however, the fact that the Presidency-in-Office of the Council accepted Parliament’s invitation to the debate held in plenary on 10 May 2012 on the 2010 discharge reports; shares the Presidency’s opinion that it would be desirable for Parliament and the Council to reach an agreement as soon as possible on the way in which discharge is prepared;

                  18.

                  Thanks the Danish Presidency for its constructive input throughout the 2010 discharge procedure; regrets, however, that the Danish Presidency has not been able to uphold the achievements of the Spanish and Swedish presidencies;

         The right of Parliament to grant discharge

                  19.

                  Emphasises the right of Parliament to grant discharge in accordance with Articles 316, 317 and 319 of the Treaty on the Functioning of the European Union, which must be interpreted in the light of their context and their purpose, which is to submit the implementation of the entire budget of the European Union to parliamentary control and scrutiny without exception, and to grant discharge autonomously, not only in respect of the section of the budget implemented by the Commission, but also in respect of the sections of the budget implemented by the other institutions, as referred to in Article 1 of the Financial Regulation;

                  20.

                  Notes that the Commission, in its reply of 25 November 2011 to the letter from the Chair of the Committee on Budgetary Control, says it is desirable for Parliament to continue to give, postpone or refuse discharge to the other institutions as has been the case up until now, which make it even harder to understand the Council’s extraordinary position;

                  21.

                  Is of the opinion that, in any event, an assessment must be carried out of the Council’s management as an institution of the Union during the financial year under examination, thereby upholding Parliament’s prerogatives, in particular the assurance of democratic accountability towards Union citizens;

                  22.

                  Notes that the expenditure of the Council must be scrutinised in the same way as that of other institutions, and is of the opinion that the fundamental elements of such scrutiny should include in particular:

                              (a)

                              an official meeting on the basis of a written questionnaire between representatives of the Council and of Parliament’s committee responsible for the discharge procedure, in order to answer committee members’ questions;

                              (b)

                              in line with its resolution of 16 June 2010 (13) on the discharge procedure in respect of the Council for the financial year 2008, the discharge is based on the following written documents submitted by the various institutions:

                                          —

                                          accounts of the preceding financial year relating to the implementation of their budgets,

                                          —

                                          a financial statement of their assets and liabilities,

                                          —

                                          the annual activity report on their budgetary and financial management,

                                          —

                                          the annual report of their internal auditor,

                                          —

                                          the publication of the internal budget decisions of the Council;

                  23.

                  Deplores that, during negotiations on a revised Financial Regulation, no agreement could be reached on ways in which the discharge procedure could be improved;

                  24.

                  Welcomes the organisation by the Committee on Budgetary Control of a seminar on the different roles played by Parliament and the Council in the discharge procedure, which could cover, among others, the following points:

                              —

                              Article 13(2) of the Treaty on European Union calls on the institutions to practice mutual sincere cooperation,

                              —

                              Article 319 of the Treaty on the Functioning of the European Union defines the role of the Council and the European Parliament in the discharge procedure:

                                          (i)

                                          the role of the Council is to issue a recommendation to the European Parliament on granting discharge to all the institutions and bodies of the European Union,

                                          (ii)

                                          the role of the European Parliament is to take a decision on discharge in respect of all the institutions and bodies of the European Union,

                              —

                              the administrative autonomy enjoyed by each of the Union’s institutions as regards its own functioning,

                              —

                              the articles of the Financial Regulation relating to discharge (Articles 145 to 147),

                              —

                              the fundamental democratic principles of transparency and accountability,

                              —

                              the objective of increasing the effectiveness, efficiency and economy of budgetary implementation,

                              —

                              in order for Parliament and the Council to be able to carry out their respective roles, the Treaty on the Functioning of the European Union and the Financial Regulation state that a certain number of documents must be made available to the discharge authority:

                                          (i)

                                          the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, including the statement of assurance, and any other special reports by the Court of Auditors,

                                          (ii)

                                          an Annual Activity Report based on the results achieved, in particular in relation to the indications given by Parliament and the Council pursuant to Article 319 of the Treaty on the Functioning of the European Union,

                                          (iii)

                                          accounts of the preceding financial year relating to the implementation of the budget,

                                          (iv)

                                          a financial statement of assets and liabilities,

                                          (v)

                                          the annual activity report on budgetary and financial management,

                                          (vi)

                                          a report summarising the number and type of internal audits carried out, the recommendations made and the follow-up given to these recommendations,

                              —

                              the Council should submit to Parliament, as the authority responsible for taking a decision on discharge, all information requested by the latter in respect of discharge,

                              —

                              the Council responds in writing to Parliament’s questions about discharge,

                              —

                              all European Union institutions and bodies must be treated equally when the Council drafts its recommendation on discharge,

                              —

                              before the end of January 2013, a meeting will be organised between Parliament and the Council on issues relating to discharge, covering the abovementioned points,

                              —

                              the Presidency-in-Office of the Council should actively attend the presentation of the annual report of the Court of Auditors and Parliament’s debate in plenary on the discharge.

         (1)  OJ L 64, 12.3.2010.

         (2)  OJ C 332, 14.11.2011, p. 1.

         (3)  OJ C 326, 10.11.2011, p. 1.

         (4)  OJ C 332, 14.11.2011, p. 134.

         (5)  OJ L 286, 17.10.2012, p. 22.

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

         (7)  Decision stemming from the Rules of Procedure of the Council of 22 July 2002 (OJ L 230, 28.8.2002, p. 7).

         (8)  OJ C 139, 14.6.2006, p. 1.

         (9)  The European Transparency Initiative.

         (10)  OJ L 250, 27.9.2011, p. 25.

         (11)  OJ L 313, 26.11.2011, p. 13.

         (12)  Letter No 301653 of 31 January 2012.

         (13)  OJ L 252, 25.9.2010, p. 24.


title: 2011/592/EU: Decision of the European Parliament of 10 May 2011 on discharge in respect of the implementation of the budget of the European Training Foundation 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 European Training Foundation for the financial year 2009

text:
               27.9.2011

               EN

               Official Journal of the European Union

               L 250/196

         DECISION OF THE EUROPEAN PARLIAMENT
   of 10 May 2011
   on discharge in respect of the implementation of the budget of the European Training Foundation for the financial year 2009
   (2011/592/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the European Training Foundation for the financial year 2009,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the European Training Foundation for the financial year 2009, together with the Foundation’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 Regulation (EC) No 1339/2008 of the European Parliament and of the Council of 16 December 2008 establishing a European Training Foundation (3), and in particular Article 17 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 Employment and Social Affairs (A7-0109/2011),

               1.

               Grants the Director of the European Training Foundation discharge in respect of the implementation of the Foundation’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 Director of the European Training Foundation, 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. 149.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 354, 31.12.2008, p. 82.

      (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 European Training Foundation for the financial year 2009
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the European Training Foundation for the financial year 2009,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the European Training Foundation for the financial year 2009, together with the Foundation’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 Regulation (EC) No 1339/2008 of the European Parliament and of the Council of 16 December 2008 establishing a European Training Foundation (3), and in particular Article 17 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 Employment and Social Affairs (A7-0109/2011),

                  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 Director of the European Training Foundation discharge for implementation of the Foundation’s budget for the financial year 2008 (5), and in its resolution accompanying the discharge decision, inter alia:

                              —

                              noted that following the recast in 2008 of Council Regulation (EEC) No 1360/90 of 7 May 1990 establishing a European Training Foundation (6), the Foundation now has the option of developing its expertise in different sectors from those considered in previous years,

                              —

                              expressed concern about the findings of the Court of Auditors as regards the lack of transparency in recruitment procedures and the intervention of the European Anti-Fraud Office (OLAF), which has opened an inquiry (OF/2009/0370),

                              —

                              urged the Foundation to report on the allocation of its human resources; pointed out, in particular, that inadequate consideration of human resources in the context of annual planning and activity reporting entails a risk of inefficiency,

                  C.

                  whereas the budget of the Foundation for the year 2009 was EUR 19 100 000, 0,5 % less than its budget for 2008,

                  1.

                  Draws attention to the Court of Auditors’ confirmation that the annual accounts for a budget of EUR 19 100 000 fairly present the Foundation’s actual financial position at 31 December 2009 and that the Foundation’s operations and cash flows for the financial year 2009 are in accordance with its financial rules;

         Performance

                  2.

                  Welcomes the Foundation’s intention to improve the performance of Vocational Education and Training (VET) systems in the Foundation partner countries (Torino Process) and to develop a common methodology with International Organisations and Bilateral Donors to improve its role;

                  3.

                  Calls again on the Foundation to set out, in a table to be annexed to the Court of Auditors’ next report, a comparison of the operations that were carried out during the year for which discharge is to be granted and during the previous financial year so as to enable the discharge authority to assess its performance more effectively from one year to the next;

         Cooperation with the European Centre for the Development of Vocational Training (Cedefop)

                  4.

                  Notes that, in November 2009, the cooperation agreement between the Foundation and Cedefop was renewed for the period 2010-2013; acknowledges that each year the Foundation and Cedefop draft, in the context of the cooperation framework, a joint work programme which is annexed to the work programmes of each Agency; welcomes the Foundation’s intention to devote further space to reporting on the implementation of this joint work programme in future Annual Activity Reports;

         Budgetary management

                  5.

                  Urges the Foundation to draw up budgetary procedures more rigorously in order to avoid the considerable number of budgetary transfers; calls, also, on the Foundation to obtain the authorisation of its Governing Board when transfers are required; recalls that this is required by the Foundation’s Financial Regulation;

                  6.

                  Reminds, also, the Foundation of its obligation to show a summary statement of the schedule of payments due in subsequent financial years to meet budget commitments entered into in earlier financial years (Article 31(2) of the Foundation’s Financial Regulation);

                  7.

                  Calls on the Foundation to closely follow the provisions of the basic regulation, especially where financial transfers between titles are concerned; takes the view, however, that activity-based budgeting is difficult in a system that separates staff and administrative expenditure from operational expenditure, especially for an agency of which the main activities are providing policy analyses, disseminating and exchanging information and experience and supporting partner-country capacity building;

         Human resources

                  8.

                  Welcomes the Foundation’s initiative of undertaking a thorough review of its recruitment procedures in response to the findings of the Internal Audit Service (IAS) and to the recommendations made by the Parliament; notes in particular that the Foundation’s recruitment procedure has been redefined, some steps have been added and the key supporting tools have been reviewed;

         Internal audit

                  9.

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

                  10.

                  Acknowledges that, in 2009, the IAS performed an audit on Building Blocks of Director’s Declaration of Assurance with the objective of obtaining reasonable assurance as to the adequacy, effectiveness and disclosure in the Annual Activity Report of the different building blocks that constitute the basis for the Director’s Declaration of Assurance; notes that the IAS found that the scarcity of relevant information underpinning the observation provided by the Director in his Declaration of Assurance may mislead the reader; calls, therefore, on the Director of the Foundation to elaborate in more detail these observations (by providing, inter alia, information on the criteria for classification, on the potential detrimental impact and/or materiality, and on the likelihood of a negative event taking place);

                  11.

                  Acknowledges that 11 out of the 15 recommendations made by IAS have been closed in 2009; notes also that 8 new IAS recommendations have been opened in 2009, concerning the following: the Director’s Declaration of Assurance, a better description of the Internal Control system, a detailed description of risk management, the introduction of ex-post controls on financial transactions with a risk-based sampling of commitments and payments and the definition of target values for corporate indicators;

                  12.

                  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 (7) on the performance, financial management and control of the agencies.

         (1)  OJ C 338, 14.12.2010, p. 149.

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

         (3)  OJ L 354, 31.12.2008, p. 82.

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

         (5)  OJ L 252, 25.9.2010, p. 182.

         (6)  OJ L 131, 23.5.1990, p. 1.

         (7)  Texts adopted, P7_TA(2011)0163 (See page 269 of this Official Journal).