# L_2013308EN.01032901.xml

| 16.11.2013 | EN | Official Journal of the European Union | L 308/329 |
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16.11.2013

EN

Official Journal of the European Union

L 308/329

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DECISION OF THE EUROPEAN PARLIAMENT

of 17 April 2013

on discharge in respect of the implementation of the budget of the European GNSS Agency for the financial year 2011

(2013/612/EU)

THE EUROPEAN PARLIAMENT,

| — | having regard to the final annual accounts of the European GNSS Agency for the financial year 2011, |
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—

having regard to the final annual accounts of the European GNSS Agency for the financial year 2011,

| — | having regard to the Court of Auditors’ report on the annual accounts of the European GNSS Agency for the financial year 2011, together with the Agency’s replies (1), |
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—

having regard to the Court of Auditors’ report on the annual accounts of the European GNSS Agency for the financial year 2011, together with the Agency’s replies (1),

| — | having regard to the Council’s recommendation of 12 February 2013 (05753/2013 — C7-0041/2013), |
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—

having regard to the Council’s recommendation of 12 February 2013 (05753/2013 — C7-0041/2013),

| — | having regard to Article 319 of the Treaty on the Functioning of the European Union, |
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—

having regard to Article 319 of the Treaty on the Functioning of the European Union,

| — | 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 (2), and in particular Article 185 thereof, |
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—

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 (2), and in particular Article 185 thereof,

| — | having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof, |
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—

having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

| — | having regard to Regulation (EU) No 912/2010 of the European Parliament and of the Council (4) setting up the European GNSS Agency, and in particular Article 14 thereof, |
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—

having regard to Regulation (EU) No 912/2010 of the European Parliament and of the Council (4) setting up the European GNSS Agency, and in particular Article 14 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 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof, |
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—

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 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

| — | having regard to Rule 77 of, and Annex VI to, its Rules of Procedure, |
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—

having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

| — | having regard to the report of the Committee on Budgetary Control (A7-0065/2013), |
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—

having regard to the report of the Committee on Budgetary Control (A7-0065/2013),

1.

Grants the Executive Director of the European GNSS Agency discharge in respect of the implementation of the Agency’s budget for the financial year 2011;

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 GNSS 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).

The President

Martin SCHULZ

The Secretary-General

Klaus WELLE

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(1)  
  OJ C 388, 15.12.2012, p. 208.

1

(2)  
  OJ L 248, 16.9.2002, p. 1.

2

(3)  
  OJ L 298, 26.10.2012, p. 1.

3

(4)  
  OJ L 276, 20.10.2010, p. 11.

4

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

5

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RESOLUTION OF THE EUROPEAN PARLIAMENT

of 17 April 2013

with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European GNSS Agency for the financial year 2011

THE EUROPEAN PARLIAMENT,

| — | having regard to the final annual accounts of the European GNSS Agency for the financial year 2011, |
| --- | --- |

—

having regard to the final annual accounts of the European GNSS Agency for the financial year 2011,

| — | having regard to the Court of Auditors’ report on the final annual accounts of the European GNSS Agency for the financial year 2011, together with the Agency’s replies (1), |
| --- | --- |

—

having regard to the Court of Auditors’ report on the final annual accounts of the European GNSS Agency for the financial year 2011, together with the Agency’s replies (1),

| — | having regard to the Council’s recommendation of 12 February 2013 (05753/2013 — C7-0041/2013), |
| --- | --- |

—

having regard to the Council’s recommendation of 12 February 2013 (05753/2013 — C7-0041/2013),

| — | having regard to Article 319 of the Treaty on the Functioning of the European Union, |
| --- | --- |

—

having regard to Article 319 of the Treaty on the Functioning of the European Union,

| — | having regard to the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof, |
| --- | --- |

—

having regard to the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

| — | having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof, |
| --- | --- |

—

having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

| — | having regard to Regulation (EU) No 912/2010 of the European Parliament and of the Council (4) setting up the European GNSS Agency, and in particular Article 14 thereof, |
| --- | --- |

—

having regard to Regulation (EU) No 912/2010 of the European Parliament and of the Council (4) setting up the European GNSS Agency, and in particular Article 14 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 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 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 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

| — | having regard to Rule 77 of, and Annex VI to, its Rules of Procedure, |
| --- | --- |

—

having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

| — | having regard to the report of the Committee on Budgetary Control (A7-0065/2013), |
| --- | --- |

—

having regard to the report of the Committee on Budgetary Control (A7-0065/2013),

| A. | whereas the European GNSS Agency (‘the Agency’) became financially autonomous in 2006, |
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A.

whereas the European GNSS Agency (‘the Agency’) became financially autonomous in 2006,

| B. | whereas the Court of Auditors stated that it was unable to form an opinion on the Agency’s accounts for the financial year 2007, |
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B.

whereas the Court of Auditors stated that it was unable to form an opinion on the Agency’s accounts for the financial year 2007,

| C. | whereas the Court of Auditors nuanced its statement of assurance on the reliability of the Agency’s annual accounts for the financial year 2008 and on the legality and regularity of the underlying transactions, |
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C.

whereas the Court of Auditors nuanced its statement of assurance on the reliability of the Agency’s annual accounts for the financial year 2008 and on the legality and regularity of the underlying transactions,

| D. | whereas the Court of Auditors stated that it has obtained reasonable assurances that the Agency’s annual accounts for the financial year 2009 are reliable and that the underlying transactions are legal and regular, |
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D.

whereas the Court of Auditors stated that it has obtained reasonable assurances that the Agency’s annual accounts for the financial year 2009 are reliable and that the underlying transactions are legal and regular,

| E. | whereas the Court of Auditors, in its report on the Agency’s annual accounts for the financial year 2010, qualified its opinion with regard to the reliability of its annual accounts for 2010, |
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E.

whereas the Court of Auditors, in its report on the Agency’s annual accounts for the financial year 2010, qualified its opinion with regard to the reliability of its annual accounts for 2010,

| F. | whereas the Court of Auditors stated that it has obtained reasonable assurances that the Agency’s annual accounts for the financial year 2011 are reliable and that the underlying transactions are legal and regular, |
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F.

whereas the Court of Auditors stated that it has obtained reasonable assurances that the Agency’s annual accounts for the financial year 2011 are reliable and that the underlying transactions are legal and regular,

Budgetary and financial management

Budgetary and financial management

| 1. | Notes that the Agency’s budget for the financial year 2011 was EUR 38,7 million, which was contributed by the Union (EUR 8,2 million operating subsidy and EUR 30,5 million operational funds), and represents a major increase from 2010 (EUR 15,9 million); |
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1.

Notes that the Agency’s budget for the financial year 2011 was EUR 38,7 million, which was contributed by the Union (EUR 8,2 million operating subsidy and EUR 30,5 million operational funds), and represents a major increase from 2010 (EUR 15,9 million);

| 2. | Notes with concern that according to the Court of Auditors’ findings, the ex-post audits carried out for the Agency by an external audit firm in respect of grant payments made in previous years under the Sixth Framework Programme for Research and Development (FP6) frequently called into question the declarations of cost made by the beneficiaries, and at the end of 2011, the amounts in dispute were estimated at EUR 1,7 million or 5 % of the audited grants; |
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2.

Notes with concern that according to the Court of Auditors’ findings, the ex-post

| 3. | Acknowledges from the Agency that the grant agreements managed by the Agency for FP6 had been inherited from the predecessor of the Agency, the Galileo Joint Undertaking (GJU), and that the GJU and the European Space Agency had established their FP6 rules slightly different from Commission rules; |
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3.

Acknowledges from the Agency that the grant agreements managed by the Agency for FP6 had been inherited from the predecessor of the Agency, the Galileo Joint Undertaking (GJU), and that the GJU and the European Space Agency had established their FP6 rules slightly different from Commission rules;

| 4. | Takes note that the FP6 ex-post audit controls have been finalised in 2012 and the final findings of the auditors show that the costs for the sample audited were overstated by EUR 455 836,66 or 1,4 % of the audited grants; notes from the Agency that it plans to recover most of the amounts found to be incorrect by the external auditors, pending agreement with the Commission, and urges the Agency to inform the discharge authority whether it succeeds to recover the disputed amounts; |
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4.

Takes note that the FP6 ex-post

| 5. | Regrets that according to the Court of Auditors’ report, the Agency made grant payments under the Seventh Framework Programme for Research and Development amounting to EUR 5,8 million in 2011, and in order to verify the expenditure claimed by the beneficiaries (private and public entities performing research), the Agency, despite performing reasonableness checks, did not usually request supporting documentation that would address the risk of ineligible expenditure; |
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5.

Regrets that according to the Court of Auditors’ report, the Agency made grant payments under the Seventh Framework Programme for Research and Development amounting to EUR 5,8 million in 2011, and in order to verify the expenditure claimed by the beneficiaries (private and public entities performing research), the Agency, despite performing reasonableness checks, did not usually request supporting documentation that would address the risk of ineligible expenditure;

| 6. | Notes from the Agency that its analysis of costs is based on the following: the project proposal, the deliverables during the project life (quarterly reports), the final deliverables and the costs incurred and that the proposals include a detailed work plan with different activities necessary to achieve the project’s objectives; notes that the beneficiaries set up a project budget on the basis of the resources which are needed to implement the work plan and the proposals are evaluated and the grants awarded by experts at the Commission premises; acknowledges the Agency’s intention to implement controls that allow an effective verification of the project costs in the future; calls on the Agency to inform the discharge authority of steps taken to that effect; |
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6.

Notes from the Agency that its analysis of costs is based on the following: the project proposal, the deliverables during the project life (quarterly reports), the final deliverables and the costs incurred and that the proposals include a detailed work plan with different activities necessary to achieve the project’s objectives; notes that the beneficiaries set up a project budget on the basis of the resources which are needed to implement the work plan and the proposals are evaluated and the grants awarded by experts at the Commission premises; acknowledges the Agency’s intention to implement controls that allow an effective verification of the project costs in the future; calls on the Agency to inform the discharge authority of steps taken to that effect;

| 7. | Draws the Agency’s attention to the Court of Auditors’ finding that in 2011, payments amounting to EUR 4,8 million (22 % of the amount paid during the year) were made after the deadlines stipulated in the Financial Regulation; |
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7.

Draws the Agency’s attention to the Court of Auditors’ finding that in 2011, payments amounting to EUR 4,8 million (22 % of the amount paid during the year) were made after the deadlines stipulated in the Financial Regulation;

| 8. | Takes note that according to the Agency, in 2011, the Agency carried out 1 195 payment requests, of which 140 (11,72 %) were carried out with some delay, and the result of the audit findings was highly influenced by some very particular transactions in large amount e.g. transfers of unused funds to the Union and highly complex grant agreement payments and in addition, due to the small size of the Agency, payments during holiday periods could easily be delayed due to the lack of back-ups in some key operational and administrative positions; acknowledges that the Agency had implemented improved financial circuits from April 2012 with an aim to reduce payment delays to the minimum and calls on the Agency to inform the discharge authority if that had led to expected results; |
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8.

Takes note that according to the Agency, in 2011, the Agency carried out 1 195 payment requests, of which 140 (11,72 %) were carried out with some delay, and the result of the audit findings was highly influenced by some very particular transactions in large amount e.g. transfers of unused funds to the Union and highly complex grant agreement payments and in addition, due to the small size of the Agency, payments during holiday periods could easily be delayed due to the lack of back-ups in some key operational and administrative positions; acknowledges that the Agency had implemented improved financial circuits from April 2012 with an aim to reduce payment delays to the minimum and calls on the Agency to inform the discharge authority if that had led to expected results;

| 9. | Welcomes the Court of Auditors’ observation that the reason for its qualified opinion on the reliability of the Agency’s 2010 accounts, the incorrect accounting treatment of tangible fixed assets related to the Galileo satellite programme, had been resolved; notes that the Court of Auditors had received confirmation that those assets are now under the control of the Commission and are not to be capitalised in the Agency’s accounts; notes that the Court of Auditors, therefore, considers that there is no longer the need for a qualification on such grounds; |
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9.

Welcomes the Court of Auditors’ observation that the reason for its qualified opinion on the reliability of the Agency’s 2010 accounts, the incorrect accounting treatment of tangible fixed assets related to the Galileo satellite programme, had been resolved; notes that the Court of Auditors had received confirmation that those assets are now under the control of the Commission and are not to be capitalised in the Agency’s accounts; notes that the Court of Auditors, therefore, considers that there is no longer the need for a qualification on such grounds;

Recruitment

Recruitment

| 10. | Notes the Court of Auditors’ findings that the transparency of the recruitment procedures has been jeopardised since audited staff selection procedures showed that the threshold scores were not determined for admission to written tests and interviews or for inclusion in the list of suitable candidates; considers that some of the provisions of the Staff Regulations may present a considerable administrative burden; encourages, therefore, the Commission to allow for a certain degree of simplification under Article 110 of the Staff Regulations in regard to the agencies; |
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10.

Notes the Court of Auditors’ findings that the transparency of the recruitment procedures has been jeopardised since audited staff selection procedures showed that the threshold scores were not determined for admission to written tests and interviews or for inclusion in the list of suitable candidates; considers that some of the provisions of the Staff Regulations may present a considerable administrative burden; encourages, therefore, the Commission to allow for a certain degree of simplification under Article 110 of the Staff Regulations in regard to the agencies;

| 11. | Acknowledges from the Agency that it had revised the selection procedure and since 2012, the pre-selection panel determines the threshold scores at the stage of designing a vacancy notice, and the thresholds are published in the vacancy notice; notes that the questions and written tests are prepared by the experts in the selection panel, together with the vacancy notice, before the selection panel members receive access to candidate’s applications; |
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11.

Acknowledges from the Agency that it had revised the selection procedure and since 2012, the pre-selection panel determines the threshold scores at the stage of designing a vacancy notice, and the thresholds are published in the vacancy notice; notes that the questions and written tests are prepared by the experts in the selection panel, together with the vacancy notice, before the selection panel members receive access to candidate’s applications;

| 12. | Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its Resolution of 17 April 2013 (6) on the performance, financial management and control of the agencies. |
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12.

Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its Resolution of 17 April 2013 (6

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(1)  
  OJ C 388, 15.12.2012, p. 208.

1

(2)  
  OJ L 248, 16.9.2002, p. 1.

2

(3)  
  OJ L 298, 26.10.2012, p. 1.

3

(4)  
  OJ L 276, 20.10.2010, p. 11.

4

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

5

(6)  Texts adopted, P7_TA(2013)0134 (See page 374 of this Official Journal).

6

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