# L_2009088EN.01008301.xml

| 31.3.2009 | EN | Official Journal of the European Union | L 88/83 |
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31.3.2009

EN

Official Journal of the European Union

L 88/83

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DECISION OF THE EUROPEAN PARLIAMENT

DECISION OF THE EUROPEAN PARLIAMENT

of 22 April 2008

on discharge in respect of the implementation of the European Union general budget for the financial year 2006, section VII — Committee of the Regions

(2009/194/EC)

THE EUROPEAN PARLIAMENT,

having regard to the European Union general budget for the financial year 2006 (1),

1

having regard to the final annual accounts of the European Communities for the financial year 2006 — Volume I (C6-0368/2007) (2),

2

having regard to the Committee of the Regions' annual report to the discharge authority on internal audits carried out in 2006,

having regard to the Annual Report of the Court of Auditors on implementation of the budget for the financial year 2006 and the Court of Auditors' special reports, together with the audited institutions' replies (3),

3

having regard to the statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors pursuant to Article 248 of the EC Treaty (4),

4

having regard to Articles 272(10), 274, 275 and 276 of the EC Treaty,

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 (5), and in particular Articles 50, 86, 145, 146 and 147 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 (A6-0095/2008),

| 1. | Grants the Secretary-General of the Committee of the Regions discharge in respect of the implementation of the Committee of the Regions budget for the financial year 2006; |
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1.

Grants the Secretary-General of the Committee of the Regions discharge in respect of the implementation of the Committee of the Regions budget for the financial year 2006;

| 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 Council, the Commission, the Court of Justice, 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). |
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3.

Instructs its President to forward this Decision and the Resolution that forms an integral part of it to the Council, the Commission, the Court of Justice, 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).

Official Journal of the European Union

The President

Hans-Gert PÖTTERING

The Secretary-General

Harald RØMER

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(1)  OJ L 78, 15.3.2006.

1

(2)  OJ C 274, 15.11.2007, p. 1.

2

(3)  OJ C 273, 15.11.2007, p. 1.

3

(4)  OJ C 274, 15.11.2007, p. 130.

4

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

5

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RESOLUTION OF THE EUROPEAN PARLIAMENT

of 22 April 2008

with observations forming an integral part of the decision on discharge in respect of the implementation of the European Union general budget for the financial year 2006, section VII — Committee of the Regions

THE EUROPEAN PARLIAMENT,

having regard to the European Union general budget for the financial year 2006 (1),

having regard to the final annual accounts of the European Communities for the financial year 2006 — Volume I (C6-0368/2007) (2),

having regard to the Committee of the Regions' annual report to the discharge authority on internal audits carried out in 2006,

having regard to the Annual Report of the Court of Auditors on implementation of the budget for the financial year 2006 and the Court of Auditors' special reports, together with the audited institutions' replies (3),

having regard to the statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors pursuant to Article 248 of the EC Treaty (4),

having regard to Articles 272(10), 274, 275 and 276 of the EC Treaty,

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 (5), and in particular Articles 50, 86, 145, 146 and 147 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 (A6-0095/2008),

| 1. | Notes that in 2006 the Committee of the Regions (CoR) had available commitment appropriations amounting to a total of EUR 74 391 953,27 (2005: EUR 69 570 456,32), with a utilisation rate of 97,94 %; |
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1.

Notes that in 2006 the Committee of the Regions (CoR) had available commitment appropriations amounting to a total of EUR 74 391 953,27 (2005: EUR 69 570 456,32), with a utilisation rate of 97,94 %;

| 2. | Notes that, following the introduction of accrual accounting with effect from 1 January 2005, the CoR's financial statements disclose a negative economic out-turn for the financial year 2006 (EUR 8 306 761) and identical amounts of assets and liabilities (EUR 101 124 165); |
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2.

Notes that, following the introduction of accrual accounting with effect from 1 January 2005, the CoR's financial statements disclose a negative economic out-turn for the financial year 2006 (EUR 8 306 761) and identical amounts of assets and liabilities (EUR 101 124 165);

| 3. | Welcomes the signature in December 2007 of a new Administrative Cooperation Agreement between the European Economic and Social Committee (EESC) and the CoR for the period 2008 to 2014; is convinced that cooperation between the two institutions will be financially advantageous for the European taxpayers; |
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3.

Welcomes the signature in December 2007 of a new Administrative Cooperation Agreement between the European Economic and Social Committee (EESC) and the CoR for the period 2008 to 2014; is convinced that cooperation between the two institutions will be financially advantageous for the European taxpayers;

| 4. | Welcomes the clear commitment of the two committees to the aim of harmonising their internal control standards, based on best practices, as well as all other relevant financial procedures relating to the Joint Services; |
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4.

Welcomes the clear commitment of the two committees to the aim of harmonising their internal control standards, based on best practices, as well as all other relevant financial procedures relating to the Joint Services;

| 5. | Notes that the new agreement keeps the most important areas (infrastructures, IT and telecommunications as well as translation, including the production of documents) within the Joint Services' remit, while a limited number of services are de-coupled, such as internal services, socio-medical service, the library and prepress; |
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5.

Notes that the new agreement keeps the most important areas (infrastructures, IT and telecommunications as well as translation, including the production of documents) within the Joint Services' remit, while a limited number of services are de-coupled, such as internal services, socio-medical service, the library and prepress;

| 6. | Insists however that this de-coupling should be budget neutral and, therefore, urges the two committees to make a joint analysis as part of the mid-term review in order to assess whether this shift of resources will have been beneficial to both; calls on the two committees to keep Parliament informed of the mini-cooperation agreements in the areas concerned by de-coupling; |
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6.

Insists however that this de-coupling should be budget neutral and, therefore, urges the two committees to make a joint analysis as part of the mid-term review in order to assess whether this shift of resources will have been beneficial to both; calls on the two committees to keep Parliament informed of the mini-cooperation agreements in the areas concerned by de-coupling;

| 7. | Points to the remark made by the ECA at point 10.19 of its Annual Report that some management and control weaknesses appeared in relation to public procurement; notes with concern the high percentage of negotiated procedures, instead of calls for tenders, within the whole expenditure for procurement; welcomes however the information provided by the Joint Services according to which, for most of the building-related services that were previously awarded after negotiated procedures, new contracts have been signed after calls for tender or call for tender procedures are on-going; |
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7.

Points to the remark made by the ECA at point 10.19 of its Annual Report that some management and control weaknesses appeared in relation to public procurement; notes with concern the high percentage of negotiated procedures, instead of calls for tenders, within the whole expenditure for procurement; welcomes however the information provided by the Joint Services according to which, for most of the building-related services that were previously awarded after negotiated procedures, new contracts have been signed after calls for tender or call for tender procedures are on-going;

| 8. | Welcomes in this context the creation within the Joint Services of a Contracts Unit providing assistance to all operational departments in the Joint Services in the area of public procurement; notes that under the new agreement the verification service of the Joint Services has been transferred to each committee's own services; |
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8.

Welcomes in this context the creation within the Joint Services of a Contracts Unit providing assistance to all operational departments in the Joint Services in the area of public procurement; notes that under the new agreement the verification service of the Joint Services has been transferred to each committee's own services;

| 9. | Notes that, according to the Joint Services' answers to the rapporteur's questionnaire, with the occupation of the Remorqueur and Van Maerlant buildings in 2007, 92 % of the Committees' total office space is now occupied and their needs for space have been satisfied for the coming years; |
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9.

Notes that, according to the Joint Services' answers to the rapporteur's questionnaire, with the occupation of the Remorqueur and Van Maerlant buildings in 2007, 92 % of the Committees' total office space is now occupied and their needs for space have been satisfied for the coming years;

| 10. | Notes in relation to the renovation of the Montoyer entrance hall, that the EESC Internal Auditor concluded in its report that ‘he did not find elements that would suggest the settlement of the penalties for late delivery for the Montoyer hall renovation was not defendable’; points out that this report was sent to OLAF and that this has not resulted in any follow-up of which the EESC or the CoR is aware; |
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10.

Notes in relation to the renovation of the Montoyer entrance hall, that the EESC Internal Auditor concluded in its report that ‘he did not find elements that would suggest the settlement of the penalties for late delivery for the Montoyer hall renovation was not defendable’; points out that this report was sent to OLAF and that this has not resulted in any follow-up of which the EESC or the CoR is aware;

| 11. | Notes that the verification service was transferred in 2006 from the Budget and Finance unit to the General Administration unit, with a view to further emphasising the principle of the separation of functions and the independence of that service; further notes that the CoR considers that it has carried out a satisfactory number of ex-post controls in 2006 and that it requested all its services to verify 5 % of all files in 2007; welcomes the fact that the CoR has significantly increased its resources and capacities in its financial verification service; |
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11.

Notes that the verification service was transferred in 2006 from the Budget and Finance unit to the General Administration unit, with a view to further emphasising the principle of the separation of functions and the independence of that service; further notes that the CoR considers that it has carried out a satisfactory number of ex-post controls in 2006 and that it requested all its services to verify 5 % of all files in 2007; welcomes the fact that the CoR has significantly increased its resources and capacities in its financial verification service;

| 12. | Considers it crucial that the controls carried out by, for example, authorising officers, verifiers and auditors, are rigorous enough; underlines in this context the importance of a sufficient number of random checks in all sectors, in addition to those few strategic ones that present a higher risk; |
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12.

Considers it crucial that the controls carried out by, for example, authorising officers, verifiers and auditors, are rigorous enough; underlines in this context the importance of a sufficient number of random checks in all sectors, in addition to those few strategic ones that present a higher risk;

| 13. | Points to the remark made by the ECA at point 10.23 of its Annual Report that in the context of an ex-post verification procedure, the CoR's administration found that, in the case of one national delegation, the amounts refunded to members for travel expenditure (air tickets) on the basis of hand-written travel agency invoices were on average 83 % higher than the price actually charged by the airline for the ticket used; |
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13.

Points to the remark made by the ECA at point 10.23 of its Annual Report that in the context of an ex-post verification procedure, the CoR's administration found that, in the case of one national delegation, the amounts refunded to members for travel expenditure (air tickets) on the basis of hand-written travel agency invoices were on average 83 % higher than the price actually charged by the airline for the ticket used;

| 14. | Observes that, following this, the CoR's administration carried out a broad investigation into the matter, which was completed in July 2007 and whose results did not demonstrate, in the ECA's opinion, that the amounts paid for administrative costs were justified; |
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14.

Observes that, following this, the CoR's administration carried out a broad investigation into the matter, which was completed in July 2007 and whose results did not demonstrate, in the ECA's opinion, that the amounts paid for administrative costs were justified;

| 15. | Notes with satisfaction that the CoR decided to make further reimbursements subject to compliance with a number of conditions and suspended all reimbursements based on travel documents purchased under the previous arrangements; welcomes that, as a precautionary measure, the CoR also informed OLAF about the evolution of ex-post verifications and the measures adopted by the CoR's administration; |
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15.

Notes with satisfaction that the CoR decided to make further reimbursements subject to compliance with a number of conditions and suspended all reimbursements based on travel documents purchased under the previous arrangements; welcomes that, as a precautionary measure, the CoR also informed OLAF about the evolution of ex-post verifications and the measures adopted by the CoR's administration;

| 16. | Notes that the internal audit on salary transfers, which was completed in 2006 and which included an in-depth review of all existing transfers, revealed that ‘[w]eaknesses existed concerning the principle of separation of functions in this area (initiating functions and internal verification) and the control environment should have been given greater priority in view of the risks concerned’; further notes that a follow-up to the Internal Auditor's recommendations was carried out in February 2007; urges the CoR's administration to ensure the full implementation of all audit recommendations; |
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16.

Notes that the internal audit on salary transfers, which was completed in 2006 and which included an in-depth review of all existing transfers, revealed that ‘[w]eaknesses existed concerning the principle of separation of functions in this area (initiating functions and internal verification) and the control environment should have been given greater priority in view of the risks concerned’; further notes that a follow-up to the Internal Auditor's recommendations was carried out in February 2007; urges the CoR's administration to ensure the full implementation of all audit recommendations;

| 17. | Notes that, following an investigation, OLAF established with regard to eight transfers that they were not in compliance with statutory conditions and recommended recovering the amounts overpaid from the officials concerned; notes with satisfaction that all recoveries had been completed by early 2007; further notes that with regard to six staff members, OLAF recommended the opening of disciplinary proceedings, and for five of them it also submitted files to the Belgian authorities; |
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17.

Notes that, following an investigation, OLAF established with regard to eight transfers that they were not in compliance with statutory conditions and recommended recovering the amounts overpaid from the officials concerned; notes with satisfaction that all recoveries had been completed by early 2007; further notes that with regard to six staff members, OLAF recommended the opening of disciplinary proceedings, and for five of them it also submitted files to the Belgian authorities;

| 18. | Observes that, following a request by the Belgian authorities, the CoR Appointing Authority lifted the immunity of the officials concerned on 6 July 2007 to enable them to be interviewed by the authorities; further notes that to date, no information has been received by the CoR's administration as to whether the Belgian authorities intend to follow-up those files; |
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18.

Observes that, following a request by the Belgian authorities, the CoR Appointing Authority lifted the immunity of the officials concerned on 6 July 2007 to enable them to be interviewed by the authorities; further notes that to date, no information has been received by the CoR's administration as to whether the Belgian authorities intend to follow-up those files;

| 19. | Notes with satisfaction that an administrative enquiry was launched by the CoR's Secretary General and carried out by a former deputy Director-General of the Commission; points out that in two of the five cases where the files were submitted to the authorities, the CoR Appointing Authority decided to open disciplinary proceedings before the Disciplinary Board; understands that in accordance with the Staff Regulations, a final decision can be taken in these cases only after a final judgment has been handed down by the Belgian court; |
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19.

Notes with satisfaction that an administrative enquiry was launched by the CoR's Secretary General and carried out by a former deputy Director-General of the Commission; points out that in two of the five cases where the files were submitted to the authorities, the CoR Appointing Authority decided to open disciplinary proceedings before the Disciplinary Board; understands that in accordance with the Staff Regulations, a final decision can be taken in these cases only after a final judgment has been handed down by the Belgian court;

| 20. | Notes that in the three other cases, the Appointing Authority will take its decision on the opening of disciplinary proceedings as soon as it has received the necessary information as to the follow-up the Belgian authorities intend to give to those files; further notes that in a further case, in which OLAF has not submitted the file to the Belgian authorities, the Appointing Authority decided, in line with the recommendations of the administrative enquiry, to address a warning to the official concerned; reiterates its demand for a strict prosecution of all cases where fraudulent behaviour can be proved; |
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20.

Notes that in the three other cases, the Appointing Authority will take its decision on the opening of disciplinary proceedings as soon as it has received the necessary information as to the follow-up the Belgian authorities intend to give to those files; further notes that in a further case, in which OLAF has not submitted the file to the Belgian authorities, the Appointing Authority decided, in line with the recommendations of the administrative enquiry, to address a warning to the official concerned; reiterates its demand for a strict prosecution of all cases where fraudulent behaviour can be proved;

| 21. | Asks the CoR to consider proportionate disciplinary measures if the outcome of the cases pending before the competent courts requires them; |
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21.

Asks the CoR to consider proportionate disciplinary measures if the outcome of the cases pending before the competent courts requires them;

| 22. | Notes with satisfaction that there are no more specific problems for the CoR as regards recruitment and that it takes up almost its full quota as negotiated with the other institutions. |
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22.

Notes with satisfaction that there are no more specific problems for the CoR as regards recruitment and that it takes up almost its full quota as negotiated with the other institutions.

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(1)  OJ L 78, 15.3.2006.

(2)  OJ C 274, 15.11.2007, p. 1.

(3)  OJ C 273, 15.11.2007, p. 1.

(4)  OJ C 274, 15.11.2007, p. 130.

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

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