# L_2009088EN.01007601.xml

| 31.3.2009 | EN | Official Journal of the European Union | L 88/76 |
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31.3.2009

EN

Official Journal of the European Union

L 88/76

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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 V — Court of Auditors

(2009/192/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 (C6-0366/2007) (2),

2

having regard to the Court of Auditors' 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 report by the External Auditor on the Court of Auditors' accounts for the financial year 2006 (4)

4

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 (5),

5

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 (6), and in particular Articles 50, 86, 145, 146 and 147 thereof,

6

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 (A6-0093/2008),

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

Grants the Secretary-General of the Court of Auditors discharge in respect of the implementation of the Court of Auditors 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 292, 5.12.2007, p. 1.

4

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

5

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

6

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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 V — Court of Auditors

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 (C6-0366/2007) (2),

having regard to the Court of Auditors' 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 report by the External Auditor on the Court of Auditors' accounts for the financial year 2006 (4)

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 (5),

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 (6), 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 (A6-0093/2008),

| 1. | Notes that in 2006 the European Court of Auditors (ECA) had available commitment appropriations amounting to a total of EUR 113 596 668,31 (2005: EUR 107 548 618,24), with a utilisation rate of 89 %, below the average of the other institutions; |
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1.

Notes that in 2006 the European Court of Auditors (ECA) had available commitment appropriations amounting to a total of EUR 113 596 668,31 (2005: EUR 107 548 618,24), with a utilisation rate of 89 %, below the average of the other institutions;

| 2. | Notes that, following the introduction of accrual accounting with effect from 1 January 2005, the ECA's financial statements disclose a negative economic out-turn for the financial year 2006 (EUR 32 000) and an excess of liabilities over assets of EUR 11 418 000; |
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2.

Notes that, following the introduction of accrual accounting with effect from 1 January 2005, the ECA's financial statements disclose a negative economic out-turn for the financial year 2006 (EUR 32 000) and an excess of liabilities over assets of EUR 11 418 000;

| 3. | Recalls that as regards the financial year 2006 (as was also the case for the financial year 2005) the ECA's accounts were audited by an external firm, KPMG, which concluded that: ‘[...] the financial statements give a true and fair view of the financial position of the European Court of Auditors as at 31 December 2006 and of its operating results for the year then ended, in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002, the implementing rules thereof, generally accepted accounting principles and the European Court of Auditors’ Internal Rules.’; |
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3.

Recalls that as regards the financial year 2006 (as was also the case for the financial year 2005) the ECA's accounts were audited by an external firm, KPMG, which concluded that: ‘[...] the financial statements give a true and fair view of the financial position of the European Court of Auditors as at 31 December 2006 and of its operating results for the year then ended, in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002, the implementing rules thereof, generally accepted accounting principles and the European Court of Auditors’ Internal Rules.’;

| 4. | Notes the written answer provided by the ECA to the rapporteur's questionnaire as regards the accounting of the pensions of former Members of the ECA, according to which the pension liability as at 31 December 2006 is presented by the ECA on its balance sheet and the guarantee by Member States is disclosed in the notes of the same balance sheet, but not accounted for as a long term claim against Member States; further notes that in the financial year 2006 pension payments by the ECA to Members amounted to EUR 2,3 million; |
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4.

Notes the written answer provided by the ECA to the rapporteur's questionnaire as regards the accounting of the pensions of former Members of the ECA, according to which the pension liability as at 31 December 2006 is presented by the ECA on its balance sheet and the guarantee by Member States is disclosed in the notes of the same balance sheet, but not accounted for as a long term claim against Member States; further notes that in the financial year 2006 pension payments by the ECA to Members amounted to EUR 2,3 million;

| 5. | Reiterates its opinion that both the liability for future pension payments and also the long-term claim against the Member States — by virtue of their guaranteeing the financing of the pension scheme — should be included in the balance sheet in order to give a clear picture of existing liabilities and of the true cost of auditing in the EU, as well as to reflect the principles of accrual accounting applicable from 1 January 2005; |
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5.

Reiterates its opinion that both the liability for future pension payments and also the long-term claim against the Member States — by virtue of their guaranteeing the financing of the pension scheme — should be included in the balance sheet in order to give a clear picture of existing liabilities and of the true cost of auditing in the EU, as well as to reflect the principles of accrual accounting applicable from 1 January 2005;

| 6. | Notes that the 2006 report of the ECA's Internal Auditor was largely positive, establishing that the quality of tender files and contracts was satisfactory although ‘the choice of simplified or derogatory procedures could have been better justified and the documentation at the level of assessments of the offers should be improved’; welcomes in this context that all the recommendations put forward by the Internal Auditor (strengthening of appropriate procurement training and the recording of all contracts in a single database) have been acted upon; |
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6.

Notes that the 2006 report of the ECA's Internal Auditor was largely positive, establishing that the quality of tender files and contracts was satisfactory although ‘the choice of simplified or derogatory procedures could have been better justified and the documentation at the level of assessments of the offers should be improved’; welcomes in this context that all the recommendations put forward by the Internal Auditor (strengthening of appropriate procurement training and the recording of all contracts in a single database) have been acted upon;

| 7. | Notes with concern that, according to the replies to the rapporteur's questionnaire, the ECA continues to face recruitment difficulties as regards professionally qualified staff for several posts from competitions organised by EPSO in part due to the higher cost of living in Luxembourg and the lesser attractiveness of the salary at the basic AD 5 grade; welcomes however the significant decrease in the number of vacant posts from 74 in 2006 to 56 in 2007 and commends the ECA's intention to further reduce the number of vacant posts and their relative share in the total establishment plan in the current and coming years; |
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7.

Notes with concern that, according to the replies to the rapporteur's questionnaire, the ECA continues to face recruitment difficulties as regards professionally qualified staff for several posts from competitions organised by EPSO in part due to the higher cost of living in Luxembourg and the lesser attractiveness of the salary at the basic AD 5 grade; welcomes however the significant decrease in the number of vacant posts from 74 in 2006 to 56 in 2007 and commends the ECA's intention to further reduce the number of vacant posts and their relative share in the total establishment plan in the current and coming years;

| 8. | Notes that five new Members joined the ECA in the course of 2006; reiterates its hope that it will be possible to devise a more rational structure for the ECA before the next enlargement; asks the ECA to consider existing models with a view to reducing the total number of Members; reiterates its call for consideration of proposals to introduce a rotating system similar to that applying to the Governing Council of the ECB or a system with a single Auditor-General; calls on the ECA to keep Parliament informed of the follow-up to this recommendation up to 30 September 2008; |
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8.

Notes that five new Members joined the ECA in the course of 2006; reiterates its hope that it will be possible to devise a more rational structure for the ECA before the next enlargement; asks the ECA to consider existing models with a view to reducing the total number of Members; reiterates its call for consideration of proposals to introduce a rotating system similar to that applying to the Governing Council of the ECB or a system with a single Auditor-General; calls on the ECA to keep Parliament informed of the follow-up to this recommendation up to 30 September 2008;

| 9. | Notes that the ECA has adopted a new manual for performance auditing and a plan to further develop the IT audit and adjust the organisation of audit groups to reflect the impact of activity-based budgeting on auditing; further notes that ECA carried out a self-assessment exercise in the course of 2006 resulting in an action plan; |
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9.

Notes that the ECA has adopted a new manual for performance auditing and a plan to further develop the IT audit and adjust the organisation of audit groups to reflect the impact of activity-based budgeting on auditing; further notes that ECA carried out a self-assessment exercise in the course of 2006 resulting in an action plan;

| 10. | Observes that this action plan is the subject of peer review by an international peer review team; requests that the President of the ECA give an update on the development of the review and the implementation of the action plan; |
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10.

Observes that this action plan is the subject of peer review by an international peer review team; requests that the President of the ECA give an update on the development of the review and the implementation of the action plan;

| 11. | Notes in relation to declarations of Members' financial interests that in compliance with the ECA's Code of Conduct, ECA Members communicate a declaration of their financial interests and other assets (including shares, convertible bonds and investment certificates as well as land and real estate, together with their spouses' professional activities) to the President of the ECA, who keeps them under confidential custody, and that these declarations are not published; |
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11.

Notes in relation to declarations of Members' financial interests that in compliance with the ECA's Code of Conduct, ECA Members communicate a declaration of their financial interests and other assets (including shares, convertible bonds and investment certificates as well as land and real estate, together with their spouses' professional activities) to the President of the ECA, who keeps them under confidential custody, and that these declarations are not published;

| 12. | Reiterates its call that, as a matter of principle and in the interest of transparency, Members of all EU institutions should be required to submit a declaration of financial interests which should be accessible on the Internet via a public register; expresses its disappointment that, contrary to its request of last year, the ECA did not inform Parliament by 30 September 2007 of what appropriate measures it would take in this respect. |
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12.

Reiterates its call that, as a matter of principle and in the interest of transparency, Members of all EU institutions should be required to submit a declaration of financial interests which should be accessible on the Internet via a public register; expresses its disappointment that, contrary to its request of last year, the ECA did not inform Parliament by 30 September 2007 of what appropriate measures it would take in this respect.

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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 292, 5.12.2007, p. 1.

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

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

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