# L_2017252EN.01028501.xml

| 29.9.2017 | EN | Official Journal of the European Union | L 252/285 |
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29.9.2017

EN

Official Journal of the European Union

L 252/285

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RESOLUTION (EU) 2017/1700 OF THE EUROPEAN PARLIAMENT

of 27 April 2017

with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Training Foundation for the financial year 2015

THE EUROPEAN PARLIAMENT,

| — | having regard to its decision on discharge in respect of the implementation of the budget of the European Training Foundation for the financial year 2015, |
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having regard to its decision on discharge in respect of the implementation of the budget of the European Training Foundation for the financial year 2015,

| — | having regard to Rule 94 of and Annex IV to its Rules of Procedure, |
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having regard to Rule 94 of and Annex IV 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 (A8-0118/2017), |
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having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Employment and Social Affairs (A8-0118/2017),

| A. | whereas, according to its financial statements, the final budget of the European Training Foundation (the ‘Foundation’) for the financial year 2015 was EUR 20 153 042, representing a decrease of 0,02 % compared to 2014; whereas the entire budget of the Foundation derives from the Union budget, |
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A.

whereas, according to its financial statements, the final budget of the European Training Foundation (the ‘Foundation’) for the financial year 2015 was EUR 20 153 042, representing a decrease of 0,02 % compared to 2014; whereas the entire budget of the Foundation derives from the Union budget,

| B. | whereas the Court of Auditors (the ‘Court’), in its report on the Foundation's annual accounts for the financial year 2014 (the ‘Court's report’), stated that it obtained reasonable assurances that the Foundation's annual accounts are reliable and that the underlying transactions are legal and regular, |
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B.

whereas the Court of Auditors (the ‘Court’), in its report on the Foundation's annual accounts for the financial year 2014 (the ‘Court's report’), stated that it obtained reasonable assurances that the Foundation's annual accounts are reliable and that the underlying transactions are legal and regular,

| C. | whereas in the context of the discharge procedure, the discharge authority stresses the particular importance of further strengthening the democratic legitimacy of the Union institutions by improving transparency and accountability, implementing the concept of performance-based budgeting and good governance of human resources, |
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C.

whereas in the context of the discharge procedure, the discharge authority stresses the particular importance of further strengthening the democratic legitimacy of the Union institutions by improving transparency and accountability, implementing the concept of performance-based budgeting and good governance of human resources,

Follow-up to 2014 discharge

Follow-up to 2014 discharge

| 1. | Notes with concern that, according to the Court's report, funds amounting to EUR 7,5 million deposited at a single bank with a low credit rating made in the Court's 2013 report and marked as ‘ongoing’ in the Court's 2014 report are still marked as on ‘ongoing’; acknowledges, however, that the funds held at that bank were reduced to EUR 1,8 million in 2015; notes, furthermore, that due to specific banking issues, the Foundation is obliged to keep an Italian bank; |
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1.

Notes with concern that, according to the Court's report, funds amounting to EUR 7,5 million deposited at a single bank with a low credit rating made in the Court's 2013 report and marked as ‘ongoing’ in the Court's 2014 report are still marked as on ‘ongoing’; acknowledges, however, that the funds held at that bank were reduced to EUR 1,8 million in 2015; notes, furthermore, that due to specific banking issues, the Foundation is obliged to keep an Italian bank;

| 2. | Notes that, according to the Court's report, corrective action was taken with regard to a note in the Court's 2014 report and the comment is now marked as ‘completed’; |
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2.

Notes that, according to the Court's report, corrective action was taken with regard to a note in the Court's 2014 report and the comment is now marked as ‘completed’;

Budget and financial management

Budget and financial management

| 3. | Notes that budget monitoring efforts during the financial year 2015 resulted in a high budget implementation rate of 99,89 %, indicating that commitments were made in a timely manner, and that the payment appropriations execution rate was high at 96,04 %; |
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3.

Notes that budget monitoring efforts during the financial year 2015 resulted in a high budget implementation rate of 99,89 %, indicating that commitments were made in a timely manner, and that the payment appropriations execution rate was high at 96,04 %;

Commitments and carry-overs

Commitments and carry-overs

| 4. | Notes that the Foundation's overall carry-forwards in Titles I and II decreased to 3,3 % compared to 6,4 % in 2014; notes that the carry-overs amounted to EUR 180 398 (1,4 %) for Title I (staff expenditure); notes, furthermore, that the carry-overs amounted to EUR 316 442 (16,1 %) for Title II (administrative expenditure) representing a considerable decrease of 20,1 % compared to the previous year; notes that the carry-overs for Title III (operational expenditure) increased by 4 % to 36,4 %, mainly due to an increase in activities planned in the second half of 2015 and the effects of a transfer of funds to Title III in December 2015, which was effected in order to maximise the Foundation's support to operational activities; |
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4.

Notes that the Foundation's overall carry-forwards in Titles I and II decreased to 3,3 % compared to 6,4 % in 2014; notes that the carry-overs amounted to EUR 180 398 (1,4 %) for Title I (staff expenditure); notes, furthermore, that the carry-overs amounted to EUR 316 442 (16,1 %) for Title II (administrative expenditure) representing a considerable decrease of 20,1 % compared to the previous year; notes that the carry-overs for Title III (operational expenditure) increased by 4 % to 36,4 %, mainly due to an increase in activities planned in the second half of 2015 and the effects of a transfer of funds to Title III in December 2015, which was effected in order to maximise the Foundation's support to operational activities;

| 5. | Notes that the carry-overs may often be partly or fully justified by the multiannual nature of the agencies' operational programmes, do not necessarily indicate weaknesses in budget planning and implementation and are not always at odds with the budgetary principle of annularity, in particular if they are planned in advance by the Foundation and communicated to the Court; |
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5.

Notes that the carry-overs may often be partly or fully justified by the multiannual nature of the agencies' operational programmes, do not necessarily indicate weaknesses in budget planning and implementation and are not always at odds with the budgetary principle of annularity, in particular if they are planned in advance by the Foundation and communicated to the Court;

Transfers

Transfers

| 6. | Notes that the Foundation made nine budgetary transfers in 2015, one more than in 2014, in continued compliance with the recommendations received from the Court; acknowledges that the increased amount of payment appropriations transferred is linked to the budget restructuring undertaken in 2015, and was needed to pay for the previous year's activities, in which budget lines were discontinued; acknowledges, furthermore, that the level and nature of transfers in 2015 remained within the limits of the Foundation's financial rules; |
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6.

Notes that the Foundation made nine budgetary transfers in 2015, one more than in 2014, in continued compliance with the recommendations received from the Court; acknowledges that the increased amount of payment appropriations transferred is linked to the budget restructuring undertaken in 2015, and was needed to pay for the previous year's activities, in which budget lines were discontinued; acknowledges, furthermore, that the level and nature of transfers in 2015 remained within the limits of the Foundation's financial rules;

Prevention and management of conflicts of interests and transparency

Prevention and management of conflicts of interests and transparency

| 7. | Notes that the Foundation has not collected or published declarations of conflicts of interests of all of its governing board members; notes that there is no mechanism which obliges the members to provide such declarations; notes that even some of the available declarations and CVs on the Foundation's website are accessible only with a password; calls on the Foundation to adopt strict guidelines for a coherent policy on the prevention and management of conflicts of interest for members of the management board and to adopt and implement a clear policy on conflicts of interest, in accordance with the Roadmap on the follow-up to the Common Approach on EU decentralised agencies; calls on the Foundation to publish all such documents, in accordance with those guidelines, and allows the public the necessary overview on its senior management; welcomes the fact that all declarations of conflicts of interests of the Foundation's relevant staff have been collected; |
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7.

Notes that the Foundation has not collected or published declarations of conflicts of interests of all of its governing board members; notes that there is no mechanism which obliges the members to provide such declarations; notes that even some of the available declarations and CVs on the Foundation's website are accessible only with a password; calls on the Foundation to adopt strict guidelines for a coherent policy on the prevention and management of conflicts of interest for members of the management board and to adopt and implement a clear policy on conflicts of interest, in accordance with the Roadmap on the follow-up to the Common Approach on EU decentralised agencies; calls on the Foundation to publish all such documents, in accordance with those guidelines, and allows the public the necessary overview on its senior management; welcomes the fact that all declarations of conflicts of interests of the Foundation's relevant staff have been collected;

| 8. | Notes that, according to the Foundation, an awareness-raising presentation on fraud and conflicts of interests for all staff was planned for the end of 2016; notes, moreover, that the selection assessment board members sign a declaration of conflicts of interests upon receipt of the list of applicants; acknowledges that all new members of staff attend a presentation on ethics and integrity including conflicts of interests and fraud; |
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8.

Notes that, according to the Foundation, an awareness-raising presentation on fraud and conflicts of interests for all staff was planned for the end of 2016; notes, moreover, that the selection assessment board members sign a declaration of conflicts of interests upon receipt of the list of applicants; acknowledges that all new members of staff attend a presentation on ethics and integrity including conflicts of interests and fraud;

Internal audit

Internal audit

| 9. | Notes that, in accordance with the audit plan, the Commission's internal audit service (IAS) did not carry out an audit during the course of 2015; notes that at the end of 2015 the Foundation had one open audit recommendation regarding ‘formal appointment of selection panels in procurement’; acknowledges that the IAS downgraded the recommendation from ‘very important’ to ‘important’ in September 2015, and that the recommendation will be formally closed through on-the-spot testing by the IAS during its next visit to the Foundation; |
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9.

Notes that, in accordance with the audit plan, the Commission's internal audit service (IAS) did not carry out an audit during the course of 2015; notes that at the end of 2015 the Foundation had one open audit recommendation regarding ‘formal appointment of selection panels in procurement’; acknowledges that the IAS downgraded the recommendation from ‘very important’ to ‘important’ in September 2015, and that the recommendation will be formally closed through on-the-spot testing by the IAS during its next visit to the Foundation;

| 10. | Notes that the Foundation commissioned three ex-post audits through the Commission's inter-institutional framework contracts for audits; notes, furthermore, that the results of the audits were positive overall although the performance and system audit and the audit ‘on ETF practices in deploying its Performance Management Framework and its Improvement Plan’ identified issues for improvement; acknowledges the fact that the Foundation immediately put in place actions in order to mitigate the identified issues; |
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10.

Notes that the Foundation commissioned three ex-post

Other comments

Other comments

| 11. | Acknowledges and welcomes the Foundation's continued contribution to modernising the education and training systems and to strengthening the human capital of partner countries, including the support provided to the Union's migration dialogue and Mobility Partnerships with neighbourhood countries; notes the Foundation's inventory on migrant support measures from an employment and skills perspective (MISMES) and its recommendations regarding skills and migration; welcomes the collaboration between the Foundation and the partner countries in order to analyse the ‘NEETs’ phenomenon (Young people Not in Employment, Education or Training); |
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11.

Acknowledges and welcomes the Foundation's continued contribution to modernising the education and training systems and to strengthening the human capital of partner countries, including the support provided to the Union's migration dialogue and Mobility Partnerships with neighbourhood countries; notes the Foundation's inventory on migrant support measures from an employment and skills perspective (MISMES) and its recommendations regarding skills and migration; welcomes the collaboration between the Foundation and the partner countries in order to analyse the ‘NEETs’ phenomenon (Young people Not in Employment, Education or Training);

| 12. | Note that the Foundation's internal reorganisation came into effect on 1 January 2015 and hopes that the changed internal organisation will help the Foundation achieve better results; |
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12.

Note that the Foundation's internal reorganisation came into effect on 1 January 2015 and hopes that the changed internal organisation will help the Foundation achieve better results;

| 13. | Commends the Foundation's high achievement rate of 96 % in respect of the target set out in its work programme; |
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13.

Commends the Foundation's high achievement rate of 96 % in respect of the target set out in its work programme;

| 14. | Welcomes warmly the full compliance of the Foundation with the 2004 EU Staff Regulations; |
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14.

Welcomes warmly the full compliance of the Foundation with the 2004 EU Staff Regulations;

| 15. | Notes the efforts made by the Foundation to ensure security of its assets and hopes this process will be completed in the near future; |
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15.

Notes the efforts made by the Foundation to ensure security of its assets and hopes this process will be completed in the near future;

| 16. | Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of 27 April 2017 (1) on the performance, financial management and control of the agencies. |
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16.

Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of 27 April 2017 (1

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(1)  Texts adopted, P8_TA(2017)0155 (see page 372 of this Official Journal).

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