# L_2015255EN.01036601.xml

| 30.9.2015 | EN | Official Journal of the European Union | L 255/366 |
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30.9.2015

EN

Official Journal of the European Union

L 255/366

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RESOLUTION OF THE EUROPEAN PARLIAMENT

of 29 April 2015

with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European GNSS Agency for the financial year 2013

THE EUROPEAN PARLIAMENT,

| — | having regard to its decision on discharge in respect of the implementation of the budget of the European GNSS Agency for the financial year 2013, |
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having regard to its decision on discharge in respect of the implementation of the budget of the European GNSS Agency for the financial year 2013,

| — | having regard to Rule 94 of and Annex V to its Rules of Procedure, |
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having regard to Rule 94 of and Annex V to its Rules of Procedure,

| — | having regard to the report of the Committee on Budgetary Control (A8-0095/2015), |
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having regard to the report of the Committee on Budgetary Control (A8-0095/2015),

| A. | whereas, according to its financial statements, the final budget of the European GNSS Agency (‘the Agency’) for the financial year 2013 was EUR 80 449 967, representing a decrease of 23,76 % compared to 2012, |
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A.

whereas, according to its financial statements, the final budget of the European GNSS Agency (‘the Agency’) for the financial year 2013 was EUR 80 449 967, representing a decrease of 23,76 % compared to 2012,

| B. | whereas according to its financial statements, the contribution of the Union to the Agency's budget for 2013 amounted to EUR 13 973 518, representing an increase of 9,69 % compared to 2012, |
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B.

whereas according to its financial statements, the contribution of the Union to the Agency's budget for 2013 amounted to EUR 13 973 518, representing an increase of 9,69 % compared to 2012,

| C. | whereas the Court of Auditors, in its report on the annual accounts of the European GNSS Agency for the financial year 2013 (‘the Court's report’), has stated that it has obtained reasonable assurances that the Agency's annual accounts are reliable and that the underlying transactions are legal and regular, |
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C.

whereas the Court of Auditors, in its report on the annual accounts of the European GNSS Agency for the financial year 2013 (‘the Court's report’), has stated that it has obtained reasonable assurances that the Agency's annual accounts are reliable and that the underlying transactions are legal and regular,

Follow-up of 2012 discharge

Follow-up of 2012 discharge

| 1. | Notes from the Court's report that regarding one comment made in the Court's 2011 report and marked as ‘Ongoing’ in the Court's 2012 report, corrective actions were taken and the comment is now marked as ‘Completed’; notes furthermore that regarding the two comments made in the Court's 2012 report, one corrective action was taken and that comment is now marked as ‘Completed’ while the other one is marked as ‘Not Applicable’; |
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1.

Notes from the Court's report that regarding one comment made in the Court's 2011 report and marked as ‘Ongoing’ in the Court's 2012 report, corrective actions were taken and the comment is now marked as ‘Completed’; notes furthermore that regarding the two comments made in the Court's 2012 report, one corrective action was taken and that comment is now marked as ‘Completed’ while the other one is marked as ‘Not Applicable’;

| 2. | Deeply regrets that the Agency did not reply to the discharge authority's questionnaire on the prevention and management of conflicts of interests; calls upon the Agency to adopt a policy of prevention and management of conflicts of interests as a matter of urgency and to develop and implement comprehensive independence policies and procedures until the end of September 2015; urges the Agency to inform the discharge authority on the progress made and on the time-frame set out for its completion; |
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2.

Deeply regrets that the Agency did not reply to the discharge authority's questionnaire on the prevention and management of conflicts of interests; calls upon the Agency to adopt a policy of prevention and management of conflicts of interests as a matter of urgency and to develop and implement comprehensive independence policies and procedures until the end of September 2015; urges the Agency to inform the discharge authority on the progress made and on the time-frame set out for its completion;

| 3. | Notes with concern that the Agency has still not published any CVs and declarations of interests of the Executive Director, the Administrative Board or senior management, despite the 2014 recommendation of the discharge authority; calls upon the Agency to remedy this situation as a matter of urgency until the end of September 2015; |
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3.

Notes with concern that the Agency has still not published any CVs and declarations of interests of the Executive Director, the Administrative Board or senior management, despite the 2014 recommendation of the discharge authority; calls upon the Agency to remedy this situation as a matter of urgency until the end of September 2015;

| 4. | Notes that the Agency failed to sufficiently answer the question of the discharge authority concerning the cost-effective and environment-friendly solutions for its work place; calls on the Agency to inform the discharge authority about this matter; |
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4.

Notes that the Agency failed to sufficiently answer the question of the discharge authority concerning the cost-effective and environment-friendly solutions for its work place; calls on the Agency to inform the discharge authority about this matter;

Comments on the legality and regularity of transactions

Comments on the legality and regularity of transactions

| 5. | Acknowledges that the Agency is in charge of organising and managing the exploitation of the European Geostationary Navigation Overlay Service (EGNOS); notes that on the basis of a delegation agreement with the Commission, the Agency signed in 2013 a contract for the exploitation of EGNOS for the 2014 to 2021 period for an amount of some EUR 588 million; is concerned that although the competiveness of the procedure is not called into question by the Court, an eligibility criterion applied in the first phase of the procurement procedure, excluding applications from consortia, was not in accordance with the rules on implementation of the Financial Regulation; |
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5.

Acknowledges that the Agency is in charge of organising and managing the exploitation of the European Geostationary Navigation Overlay Service (EGNOS); notes that on the basis of a delegation agreement with the Commission, the Agency signed in 2013 a contract for the exploitation of EGNOS for the 2014 to 2021 period for an amount of some EUR 588 million; is concerned that although the competiveness of the procedure is not called into question by the Court, an eligibility criterion applied in the first phase of the procurement procedure, excluding applications from consortia, was not in accordance with the rules on implementation of the Financial Regulation;

Budget and financial management

Budget and financial management

| 6. | Notes that budget monitoring efforts during the financial year 2012 resulted in an overall level of committed appropriations rate close to 100 % and that the payment appropriations execution rate was 80,53 %; |
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6.

Notes that budget monitoring efforts during the financial year 2012 resulted in an overall level of committed appropriations rate close to 100 % and that the payment appropriations execution rate was 80,53 %;

Commitments and carry-overs

Commitments and carry-overs

| 7. | Notes with concern that the level of committed appropriations carried over was high for Title II (Administrative expenditure), amounting to EUR 1 800 000 or 52 %; acknowledges that the main factors contributing to this high level are specific contracts signed at year-end amounting to EUR 900 000, due to a late approval of an amending budget in September 2013; notes furthermore that some EUR 400 000 relate to services supplied but not invoiced in 2013; |
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7.

Notes with concern that the level of committed appropriations carried over was high for Title II (Administrative expenditure), amounting to EUR 1 800 000 or 52 %; acknowledges that the main factors contributing to this high level are specific contracts signed at year-end amounting to EUR 900 000, due to a late approval of an amending budget in September 2013; notes furthermore that some EUR 400 000 relate to services supplied but not invoiced in 2013;

| 8. | Expresses disappointment about the poor management that resulted in a very high rate of carry-over appropriations; urges the Agency to take note of this and to redress the management strategy that led to these severe mistakes; |
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8.

Expresses disappointment about the poor management that resulted in a very high rate of carry-over appropriations; urges the Agency to take note of this and to redress the management strategy that led to these severe mistakes;

Transfers

Transfers

| 9. | Notes that according to the Agency's annual activity report, as well as the Court's report, the level and nature of transfers in 2013 have remained within the limits of the Agency's financial rules; |
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9.

Notes that according to the Agency's annual activity report, as well as the Court's report, the level and nature of transfers in 2013 have remained within the limits of the Agency's financial rules;

Procurement and recruitment procedures

Procurement and recruitment procedures

| 10. | Notes that for 2013, neither sampled transactions nor other audit findings have led to any comments on the Agency's procurement procedures in the Court's report; |
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10.

Notes that for 2013, neither sampled transactions nor other audit findings have led to any comments on the Agency's procurement procedures in the Court's report;

| 11. | Acknowledges the introduction of a 65 % threshold as the necessary score a candidate has to obtain in order to be invited to an interview; calls on the Agency to take into account the situation where one or more candidates have scored the same amount of points; asks the Agency to lay down a clear policy to declare the eligibility of the candidates and to specify the minimum and maximum number of candidates who will be invited to the interview in accordance with objective and transparent criteria; urges the Agency to adopt those internal rules until the end of September 2015 and to inform the discharge authority of the follow-up results; |
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11.

Acknowledges the introduction of a 65 % threshold as the necessary score a candidate has to obtain in order to be invited to an interview; calls on the Agency to take into account the situation where one or more candidates have scored the same amount of points; asks the Agency to lay down a clear policy to declare the eligibility of the candidates and to specify the minimum and maximum number of candidates who will be invited to the interview in accordance with objective and transparent criteria; urges the Agency to adopt those internal rules until the end of September 2015 and to inform the discharge authority of the follow-up results;

| 12. | Expresses concern about the Appointing Authority's discretionary powers to oblige a successful candidate to sit a second interview; calls on the Agency to publish the criteria used by the Appointing Authority, which must be clear and comprehensive, for justifying the organisation of a second interview and the official appointment of a candidate on the reserve list to the post; |
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12.

Expresses concern about the Appointing Authority's discretionary powers to oblige a successful candidate to sit a second interview; calls on the Agency to publish the criteria used by the Appointing Authority, which must be clear and comprehensive, for justifying the organisation of a second interview and the official appointment of a candidate on the reserve list to the post;

Internal audit

Internal audit

| 13. | Acknowledges that in 2013, the Commission's Internal Audit Service (IAS) carried out an audit in accordance with its Strategic Audit Plan for 2013-2015; notes furthermore that the IAS carried out an operational risk assessment which resulted in the IAS Strategic Internal Audit Plan for the Agency, listing the proposed audit topics for 2014-2016; |
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13.

Acknowledges that in 2013, the Commission's Internal Audit Service (IAS) carried out an audit in accordance with its Strategic Audit Plan for 2013-2015; notes furthermore that the IAS carried out an operational risk assessment which resulted in the IAS Strategic Internal Audit Plan for the Agency, listing the proposed audit topics for 2014-2016;

| 14. | Observes that in the course of the risk analysis, the IAS identified certain processes of high inherent risk which could not be considered as auditable within the audit plan, as the controls were assessed as absent or insufficient; |
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14.

Observes that in the course of the risk analysis, the IAS identified certain processes of high inherent risk which could not be considered as auditable within the audit plan, as the controls were assessed as absent or insufficient;

| 15. | Takes note that the IAS performed a follow-up desk review on the implementation of its previous recommendations; notes that neither ‘Very important’ nor ‘Critical’ recommendations were open as of 31 December 2013; |
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15.

Takes note that the IAS performed a follow-up desk review on the implementation of its previous recommendations; notes that neither ‘Very important’ nor ‘Critical’ recommendations were open as of 31 December 2013;

| 16. | Acknowledges that in 2013 the IAS carried out an audit on Human Resources Management in the Agency; takes note that it covered the key areas of human resources management, with focus on recruitment, staff appraisal and development, supervision and control as well as on planning and resource allocation; ascertains from the IAS that the management and control system in place at the Agency provides reasonable assurance concerning compliance with the applicable legal framework and internal procedures; |
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16.

Acknowledges that in 2013 the IAS carried out an audit on Human Resources Management in the Agency; takes note that it covered the key areas of human resources management, with focus on recruitment, staff appraisal and development, supervision and control as well as on planning and resource allocation; ascertains from the IAS that the management and control system in place at the Agency provides reasonable assurance concerning compliance with the applicable legal framework and internal procedures;

Other comments

Other comments

| 17. | Welcomes the measures taken by the Agency with regard to visibility and encourages it to continue to apply those good practices; |
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17.

Welcomes the measures taken by the Agency with regard to visibility and encourages it to continue to apply those good practices;

| 18. | Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its Resolution of 29 April 2015 (1) on the performance, financial management and control of the agencies. |
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18.

Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its Resolution of 29 April 2015 (1

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(1)  Texts adopted of that date, P8_TA(2015)0130 (see page 431 of this Official Journal).

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