# L_2008187EN.01015601.xml

| 15.7.2008 | EN | Official Journal of the European Union | L 187/156 |
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15.7.2008

EN

Official Journal of the European Union

L 187/156

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DECISION OF THE EUROPEAN PARLIAMENT

DECISION OF THE EUROPEAN PARLIAMENT

of 24 April 2007

on the discharge for the implementation of the budget of the European Aviation Safety Agency for the financial year 2005

(2008/529/EC)

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the European Aviation Safety Agency for the financial year 2005 (1),

1

having regard to the Court of Auditors' report on the final annual accounts of the European Aviation Safety Agency for the financial year 2005, together with the Agency's replies (2),

2

having regard to the Council's Recommendation of 27 February 2007 (5711/2007 — C6-0080/2007),

having regard to the EC Treaty, and in particular Article 276 thereof,

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 (3), and in particular Article 185 thereof,

3

having regard to Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 on common rules in the field of civil aviation and establishing a European Aviation Safety Agency (4), and in particular Article 49 thereof,

4

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 (5) and, in particular, Article 94 thereof,

5

having regard to Rule 71 of and Annex V 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 (A6-0121/2007),

| 1. | Grants the executive director of the European Aviation Safety Agency discharge for the implementation of the Agency's budget for the financial year 2005; |
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1.

Grants the executive director of the European Aviation Safety Agency discharge for the implementation of the Agency's budget for the financial year 2005;

| 2. | Sets out its observations in the Resolution below; |
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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 Aviation Safety Agency, 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). |
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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 Aviation Safety Agency, 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).

Official Journal of the European Union

The President

Hans-Gert PÖTTERING

The Secretary-General

Harald RØMER

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(1)  OJ C 266, 31.10.2006, p. 10

1

(2)  OJ C 312, 19.12.2006, p. 6.

2

(3)  OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).

3

(4)  OJ L 240, 7.9.2002, p. 1. Regulation as last amended by Commission Regulation (EC) No 1701/2003 (OJ L 243, 27.9.2003, p. 5).

4

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

5

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RESOLUTION OF THE EUROPEAN PARLIAMENT

of 24 April 2007

with observations forming an integral part of the Decision on the discharge for the implementation of the budget of the European Aviation Safety Agency for the financial year 2005

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the European Aviation Safety Agency for the financial year 2005 (1),

having regard to the Court of Auditors' report on the final annual accounts of the European Aviation Safety Agency for the financial year 2005, together with the Agency's replies (2),

having regard to the Council's Recommendation of 27 February 2007 (5711/2007 — C6-0080/2007),

having regard to the EC Treaty, and in particular Article 276 thereof,

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 (3), and in particular Article 185 thereof,

having regard to Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 on common rules in the field of civil aviation and establishing a European Aviation Safety Agency (4), and in particular Article 49 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 (5), and in particular Article 94 thereof,

having regard to Rule 71 of and Annex V 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 (A6-0121/2007),

| A. | whereas the Court of Auditors stated that it obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2005 were reliable and that the underlying transactions, taken as a whole, were legal and regular, |
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A.

whereas the Court of Auditors stated that it obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2005 were reliable and that the underlying transactions, taken as a whole, were legal and regular,

| B. | whereas on 27 April 2006 Parliament gave discharge to the director in respect of the implementation of the Agency's budget for 2004 financial year (6) and in the Resolution accompanying the discharge Decision Parliament, inter alia,







  — | was concerned by the anomalies noted by the Court of Auditors in budgetary management, including a lack of any indication in the amending budgets about transfers carried out or about the reasons for these transfers and a failure to inform the Management Board about transfers and payment of advances outside the budget, |
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B.

whereas on 27 April 2006 Parliament gave discharge to the director in respect of the implementation of the Agency's budget for 2004 financial year (6) and in the Resolution accompanying the discharge Decision Parliament, inter alia,

—

was concerned by the anomalies noted by the Court of Auditors in budgetary management, including a lack of any indication in the amending budgets about transfers carried out or about the reasons for these transfers and a failure to inform the Management Board about transfers and payment of advances outside the budget,

| — | noted that in 2004 the Agency had not yet adopted the implementing rules for its financial regulation and had not carried out any risk analysis or prepared any internal control standards, |
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—

noted that in 2004 the Agency had not yet adopted the implementing rules for its financial regulation and had not carried out any risk analysis or prepared any internal control standards,

| — | noted that staff selection procedures at the Agency have varied from one round of selections to another and urged the Commission and the Agency to agree on a transparent and coherent recruitment procedure consistent with the Agency's needs in terms of specifically qualified personnel; |
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—

noted that staff selection procedures at the Agency have varied from one round of selections to another and urged the Commission and the Agency to agree on a transparent and coherent recruitment procedure consistent with the Agency's needs in terms of specifically qualified personnel;

General points concerning the majority of EU Agencies requiring individual discharge

| 1. | Considers that the ever-growing number of Community Agencies and the activities of certain of them do not seem to form part of an overall policy framework, and that the remits of some Agencies do not always reflect the real needs of the Union or the expectations of its citizens, and notes that in general terms the Agencies do not always have a good image or a good press; |
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1.

Considers that the ever-growing number of Community Agencies and the activities of certain of them do not seem to form part of an overall policy framework, and that the remits of some Agencies do not always reflect the real needs of the Union or the expectations of its citizens, and notes that in general terms the Agencies do not always have a good image or a good press;

| 2. | Invites the Commission therefore to define an overall policy framework for the setting up of new Community Agencies and to present a cost-benefit study before the setting up of any new agency, while being careful to avoid any overlap of activities between Agencies or with the remits of other European organisations; |
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2.

Invites the Commission therefore to define an overall policy framework for the setting up of new Community Agencies and to present a cost-benefit study before the setting up of any new agency, while being careful to avoid any overlap of activities between Agencies or with the remits of other European organisations;

| 3. | Calls on the Court of Auditors to give its opinion on the cost-benefit study before Parliament takes its decision; |
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3.

Calls on the Court of Auditors to give its opinion on the cost-benefit study before Parliament takes its decision;

| 4. | Invites the Commission to present every five years a study on the added value of every existing Agency; invites all relevant institutions in the case of a negative evaluation of the added value of an Agency to take the necessary steps by reformulating the mandate of that Agency or by closing it; |
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4.

Invites the Commission to present every five years a study on the added value of every existing Agency; invites all relevant institutions in the case of a negative evaluation of the added value of an Agency to take the necessary steps by reformulating the mandate of that Agency or by closing it;

| 5. | Considers it regrettable, given the growing number of regulatory agencies, that the negotiations on the draft interinstitutional agreement on the operating framework for the European regulatory agencies have not yet been concluded, and calls on the relevant departments of the Commission, in consultation with the Court of Auditors, to do their utmost to ensure that the agreement is brought to a rapid conclusion; |
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5.

Considers it regrettable, given the growing number of regulatory agencies, that the negotiations on the draft interinstitutional agreement on the operating framework for the European regulatory agencies have not yet been concluded, and calls on the relevant departments of the Commission, in consultation with the Court of Auditors, to do their utmost to ensure that the agreement is brought to a rapid conclusion;

| 6. | Notes that the Commission's budgetary responsibility calls for closer linking of the Agencies to the Commission; calls on the Commission and the Council to take all necessary steps to give the Commission a blocking minority in the supervisory bodies of the regulatory Agencies by 31 December 2007 and to provide for such a minority from the outset when new Agencies are set up; |
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6.

Notes that the Commission's budgetary responsibility calls for closer linking of the Agencies to the Commission; calls on the Commission and the Council to take all necessary steps to give the Commission a blocking minority in the supervisory bodies of the regulatory Agencies by 31 December 2007 and to provide for such a minority from the outset when new Agencies are set up;

| 7. | Invites the Court of Auditors to create an additional chapter in its Annual Report, devoted to all Agencies to be discharged under the Commission's accounts in order to have a much clearer picture of the use of EU funds by Agencies; |
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7.

Invites the Court of Auditors to create an additional chapter in its Annual Report, devoted to all Agencies to be discharged under the Commission's accounts in order to have a much clearer picture of the use of EU funds by Agencies;

| 8. | Recalls the principle according to which all Community Agencies, whether subsidised or not, are subject to discharge by the Parliament, even where a discharge authority exists by virtue of their constitutive texts; |
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8.

Recalls the principle according to which all Community Agencies, whether subsidised or not, are subject to discharge by the Parliament, even where a discharge authority exists by virtue of their constitutive texts;

| 9. | Calls on the Court of Auditors to perform performance audits for all Agencies and to report back to the relevant committees of Parliament, including the Committee on Budgetary Control; |
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9.

Calls on the Court of Auditors to perform performance audits for all Agencies and to report back to the relevant committees of Parliament, including the Committee on Budgetary Control;

| 10. | Notes that the number of Agencies is constantly increasing and that, in accordance with the Commission's political responsibility for the operation of the Agencies, which goes far beyond mere logistical support, there is an even higher need for the Directorates-General of the Commission charged with the setting up and monitoring of Agencies to develop a common approach to the Agencies; considers that a structure similar to the one created by the Agencies for coordination among the DGs concerned would be a pragmatic way forward towards a common approach by the Commission on all matters relating to the Agencies; |
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10.

Notes that the number of Agencies is constantly increasing and that, in accordance with the Commission's political responsibility for the operation of the Agencies, which goes far beyond mere logistical support, there is an even higher need for the Directorates-General of the Commission charged with the setting up and monitoring of Agencies to develop a common approach to the Agencies; considers that a structure similar to the one created by the Agencies for coordination among the DGs concerned would be a pragmatic way forward towards a common approach by the Commission on all matters relating to the Agencies;

| 11. | Invites the Commission to improve administrative and technical support to the Agencies, taking into account the growing complexity of the Community's administrative rules and technical problems; |
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11.

Invites the Commission to improve administrative and technical support to the Agencies, taking into account the growing complexity of the Community's administrative rules and technical problems;

| 12. | Notes the lack of a disciplinary body in any of the Community Agencies, and calls on the Commission to take the necessary steps to ensure that such a mechanism is rapidly put in place; |
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12.

Notes the lack of a disciplinary body in any of the Community Agencies, and calls on the Commission to take the necessary steps to ensure that such a mechanism is rapidly put in place;

| 13. | Welcomes the considerable improvements in the coordination among the Agencies, which allows them to tackle recurring problems and makes cooperation with the Commission and Parliament more efficient; |
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13.

Welcomes the considerable improvements in the coordination among the Agencies, which allows them to tackle recurring problems and makes cooperation with the Commission and Parliament more efficient;

| 14. | Takes the view that the establishment by a number of Agencies of a shared support service aimed at making their computerised financial management systems consistent with those of the Commission is a measure that should be taken further and extended; |
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14.

Takes the view that the establishment by a number of Agencies of a shared support service aimed at making their computerised financial management systems consistent with those of the Commission is a measure that should be taken further and extended;

| 15. | Calls upon the Agencies to improve their cooperation and benchmarking with actors in the field; urges the Commission to adopt any measures it considers necessary to help the Agencies enhance their image and raise the profile of their activities; |
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15.

Calls upon the Agencies to improve their cooperation and benchmarking with actors in the field; urges the Commission to adopt any measures it considers necessary to help the Agencies enhance their image and raise the profile of their activities;

| 16. | Calls upon the Commission to come up with a proposal to harmonise the format of the annual reporting by the Agencies and to develop performance indicators which would allow a comparison of their efficiency; |
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16.

Calls upon the Commission to come up with a proposal to harmonise the format of the annual reporting by the Agencies and to develop performance indicators which would allow a comparison of their efficiency;

| 17. | Invites the Agencies to present at the beginning of every year performance indicators against which they could be measured; |
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17.

Invites the Agencies to present at the beginning of every year performance indicators against which they could be measured;

| 18. | Invites all Agencies to increasingly use SMART objectives which should lead to more realistic planning and implementation of goals; |
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18.

Invites all Agencies to increasingly use SMART objectives which should lead to more realistic planning and implementation of goals;

| 19. | Agrees with the Court of Auditors that the Commission also bears responsibility for the (financial) management of the Agencies; therefore, urges the Commission to monitor and where necessary direct and help the management of the different Agencies, especially in relation to the proper application of tender procedures, transparency of recruitment procedures, sound financial management (underspending and overbudgeting) and most importantly the proper application of the rules concerning the internal control framework; |
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19.

Agrees with the Court of Auditors that the Commission also bears responsibility for the (financial) management of the Agencies; therefore, urges the Commission to monitor and where necessary direct and help the management of the different Agencies, especially in relation to the proper application of tender procedures, transparency of recruitment procedures, sound financial management (underspending and overbudgeting) and most importantly the proper application of the rules concerning the internal control framework;

| 20. | Considers that the Agencies' work programmes should express their contributions in operational and measurable terms and that due consideration should be given to the Commission's Internal Control Standards; |
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20.

Considers that the Agencies' work programmes should express their contributions in operational and measurable terms and that due consideration should be given to the Commission's Internal Control Standards;

Specific points

| 21. | Notes that the utilisation rate for commitment and payment appropriations was less than 80 % and that this situation was due to the low rate of implementation of commitment and payment appropriations (69 % and 32 % respectively) for operating expenditure; notes furthermore that the cancellation rate for appropriations for the financial year is also high (ranging from 7 % to more than 30 % depending on the title of the expenditure and the nature of the appropriations) and that the cancellation rates for appropriations carried over from the previous year are also high; invites the Agency in this context to improve and step up the monitoring of its planning so as to ensure that resources are not mobilised unnecessarily; |
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21.

Notes that the utilisation rate for commitment and payment appropriations was less than 80 % and that this situation was due to the low rate of implementation of commitment and payment appropriations (69 % and 32 % respectively) for operating expenditure; notes furthermore that the cancellation rate for appropriations for the financial year is also high (ranging from 7 % to more than 30 % depending on the title of the expenditure and the nature of the appropriations) and that the cancellation rates for appropriations carried over from the previous year are also high; invites the Agency in this context to improve and step up the monitoring of its planning so as to ensure that resources are not mobilised unnecessarily;

| 22. | Notes the failure to introduce activity-based management, even though the Agency's financial regulation provides for it, along the lines applied to the general budget, so as to allow better monitoring of performance; |
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22.

Notes the failure to introduce activity-based management, even though the Agency's financial regulation provides for it, along the lines applied to the general budget, so as to allow better monitoring of performance;

| 23. | Regrets that the Management Board did not adopt minimal internal-control standards by the end of 2005 and that management and internal-control systems and procedures were not always described; notes that procedures introduced by the authorising officers to guarantee the accuracy and exhaustiveness of the financial information they submit to the accounting officer were not validated and that at the end of 2005 the Agency still did not have a system for ensuring that the fees which it charges its clients for the services it provides were sufficient to cover the cost of those services; invites the Agency to overcome this situation as quickly as possible; |
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23.

Regrets that the Management Board did not adopt minimal internal-control standards by the end of 2005 and that management and internal-control systems and procedures were not always described; notes that procedures introduced by the authorising officers to guarantee the accuracy and exhaustiveness of the financial information they submit to the accounting officer were not validated and that at the end of 2005 the Agency still did not have a system for ensuring that the fees which it charges its clients for the services it provides were sufficient to cover the cost of those services; invites the Agency to overcome this situation as quickly as possible;

| 24. | Welcomes the Management Board's decision to adopt internal-control standards based on the standards adopted by the Commission and on ISO 9000; urges the Agency to press ahead with the implementation of these standards; |
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24.

Welcomes the Management Board's decision to adopt internal-control standards based on the standards adopted by the Commission and on ISO 9000; urges the Agency to press ahead with the implementation of these standards;

| 25. | Deplores the fact that the principle of open competition was not always observed and invites the Agency to do so in the future. |
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25.

Deplores the fact that the principle of open competition was not always observed and invites the Agency to do so in the future.

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(1)  OJ C 266, 31.10.2006, p. 10.

(2)  OJ C 312, 19.12.2006, p. 6.

(3)  OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).

(4)  OJ L 240, 7.9.2002, p. 1. Regulation as last amended by Commission Regulation (EC) No 1701/2003 (OJ L 243, 27.9.2003, p. 5).

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

(6)  OJ L 340, 6.12.2006, p. 128.

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