1977X1231 — EN — 01.01.2000 — 001.002 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B FINANCIAL REGULATION
of 21 December 1977
applicable to the general budget of the European Communities
(OJ L 356, 31.12.1977, p. 1)
Amended by:
Official Journal
No page date
►M1CouncilRegulation(ECSC,EEC,Euratom)No1252/79of25June1979 L160 1 28.6.1979
►M2Financial Regulation of 16 December 1980 (80/1176 EEC, Euratom,
ECSC) L345 23 20.12.1980
►M3Council Regulation (ECSC, EEC, Euratom) No 1600/88 of 7 June 1988 L143 1 10.6.1988
►M4CouncilRegulation(ECSC,EEC,Euratom)No2049/88of24June1988 L185 3 15.7.1988
►M5CouncilRegulation(Euratom,ECSC,EEC)No610/90of13March1990 L70 1 16.3.1990
►M6Council Regulation (ECSC, EC, Euratom) No 1923/94 of 25 July 1994 L198 4 30.7.1994
►M7Council Regulation (ECSC, EC, Euratom) No 2730/94 of 31 October
1994 L293 7 12.11.1994
►M8Council Regulation (EC, Euratom, ECSC) No 2333/95 of 18 September
1995 L240 1 7.10.1995
►M9Council Regulation (EC, Euratom, ECSC) No 2334/95 of 18 September
1995 L240 9 7.10.1995
►M10Council Regulation (EC, Euratom, ECSC) No 2335/95 of 18 September
1995 L240 12 7.10.1995
►M11Council Regulation (EC) No 2444/97 of 22 September 1997 L340 1 11.12.1997
►M12Council Regulation (EC, ECSC, Euratom) No 2548/98 of 23 November
1998 L320 1 28.11.1998
►M13Council Regulation (EC, ECSC, Euratom) No 2779/98 of 17 December
1998 L347 3 23.12.1998
►M14CouncilRegulation(EC,ECSC,Euratom)No2673/1999of13December
1999 L326 1 18.12.1999
1977X1231 — EN — 01.01.2000 — 001.002 — 2
▼B
FINANCIAL REGULATION
of 21 December 1977
applicable to the general budget of the European Communities
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Coal and Steel
Community, and in particular Article 78f thereof,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 209 thereof,
Having regard to the Treaty establishing the European Atomic Energy
Community, and in particular Article 183 thereof,
Having regard to the proposal from the Commission,Having regard to the opinion of the European Parliament (
1),
Whereas the conciliation provided for in the Joint Declaration of 4
March1975oftheEuropeanParliament,theCouncilandtheCommis-sion (
2) took place in a Conciliation Committee;
Whereas the Court of Auditors delivered an opinion on certain provi-
sions of this Financial Regulation concerning the presenting andauditing of accounts; whereas it also stated that it had no objection tothe Financial Regulation being implemented from 1 January 1978,taking into account the formal undertaking by the Council and theCommission to review the whole of this Regulation, if necessary, assoonasthesupplementaryopinionoftheCourtofAuditorsisavailable;
Whereas the Treaty of 22 July 1975 amending certain financial provi-
sionsoftheTreatiesestablishingtheEuropeanCommunitiesandoftheTreaty establishing a single Council and a single Commission of theEuropeanCommunitiesenteredintoforceon1June1977;whereas,asaresultoftheamendmentsintroduced,newprovisionsneedtobeadoptedregardingtheadoptionofthebudget,themeasurestobetakenif,atthebeginningofthefinancialyearthebudgethasnotyetbeenadopted,andthe transfer of appropriations; whereas in particular, with regard to thelatter,theEuropeanParliament,theCouncilandtheCommissionshouldbe empowered to make certain transfers within their respective budgetsections themselves;
Whereas the Treaty of 22 July 1975 established a Court of Auditors
which exercises the powers and jurisdiction previously vested in theAudit Board and the ECSC Auditor; whereas the Court of Auditorsshould have the same status as an Institution as regards the establish-mentandimplementationofitsbudget;whereastheprovisionsrelatingtothepresentingandauditingofaccountsshouldbeadaptedtothisnewsituation; whereas it is essential, however, to stress here and now thatthese provisions will be re-examined in the light of a supplementaryopinion to be delivered by the Court of Auditors;
(1) OJ No C 6, 10. 1. 1977, p. 20.
(2) OJ No C 89, 22. 4. 1975, p. 1.
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Whereas a distinction should be made between appropriations for
commitment and appropriations for payment in the case of projectslasting several years and that the projects to which such a distinctionapplies should be determined under the budgetary procedure;
Whereas the definition of the unit of account and the methods applic-
ableformakingconversionsbetweentheunitofaccountandthecurren-cies of the Member States, embodied in the text of Article 10 of theFinancialRegulationof25April1973applicabletothegeneralbudgetof the European Communities, are no longer appropriate to the currentinternationalmonetarysituation;whereasinitsreportof4March1975theMonetaryCommitteetooktheviewthataunitofaccountbasedonabasket of Community currencies would be best suited to the require-ments of the Community in general;
Whereas,byDecision75/250/EE (
1),theCouncilhasalreadyadopted
such a unit of account to express the amounts of aid mentioned inArticle42oftheACP−EECConventionofLomé;whereas,byDecisionNo 3289/75/ECSC, the Commission adopted the same unit of accountfor the implementation of the ECSC Treaty; whereas the same defini-tion should be adopted for the purposes of implementing the EEC andEuratom Treaties;
Whereas,totakeaccountofdevelopmentsinCommunityactivities,itis
advisable that the budgetary nomenclature be decided under the budg-etary procedure;
Whereas the full application of the own resources system from 1
January 1978 necessitates the amendment of certain provisionsconcerning the payment of the resources in question;
Whereas account should be taken of the trends in prices since the
Financial Regulation of 25 April 1973 was drawn up, and certainamounts adjusted accordingly;
WhereasthevariousbudgetaryprocedurescurrentlyusedfortheSocial
Fund, the Regional Fund and the European Agricultural Guidance andGuaranteeFund,GuidanceSection,shouldbeharmonized;whereasitisessential that these procedures be brought into line with the generalsystem; whereas, nevertheless, transitional provisions must be intro-duced to enable the arrangements used for these funds to be graduallyadapted to the general system;
Whereas,forreasonsofbudgetaryclarity,abreakdownofresearchand
investment appropriations should be given in a special chapter of thesection of the budget relating to the Commission; whereas, moreover,the system used for the functional presentation of these appropriationsshould be simplified in the light of the experience already acquired inthis area;
WhereastheOfficeforOfficialPublicationsoftheEuropeanCommuni-
ties carries out work for all the Institutions, thus constituting a jointservice, and the presentation and conditions of implementation of thebudget for this Office should consequently be improved; whereas theappropriations for the Office should consequently be entered in anAnnextotheCommissionsectioninwhichalltheseappropriationswillbe entered under a specific budget heading; whereas, in order to avoidunnecessaryinflationofthebudget,theInstitutionsshouldnolongerberequired to make payments to the Office,
(1) OJ No L 104, 24. 4. 1975, p. 35.
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▼B
HAS ADOPTED THIS FINANCIAL REGULATION:
▼M8
PART I
PROVISIONS APPLICABLE TO THE GENERAL BUDGET OF THE
EUROPEAN COMMUNITIES
▼B
TITLE I
GENERAL PRINCIPLES
Article 1
1. The budget of the European Communities (hereinafter called ‘the
budget')istheinstrumentwhichsetsoutforecastsof,andauthorizesinadvance,theexpectedrevenueandexpenditureoftheCommunitiesforeach year. ►
M8The budget may also disclose the underwriting of
borrowing and lending operations entered into by the Community. ◄
ForthepurposesofthisFinancialRegulation,therevenueandexpendi-
ture of the Communities shall comprise:
— the administrative expenditure of the European Coal and Steel
Community and the corresponding revenue,
— therevenueandexpenditureoftheEuropean ►M8 ◄
Community,
▼M5
— the revenue and expenditure of the European Atomic Energy
Community which may be charged to the budget pursuant to theEuratom Treaty and to the measures taken in implementationthereof.
▼
B
The abovementioned expenditure shall comprise that arising from the
activities of the institutions.
2. The appropriations entered in the budget shall be authorized for
the duration of one financial year.
▼M5
Expenditure may not be authorized for a period extending beyond thefinancial year.
3. Administrative expenditure arising from:— contracts which have been concluded, in accordance with local
usage, or
— contractualprovisionsrelating,inparticular,tothesupplyofequip-
ment,
fortheperiodsextendingbeyondthefinancialyearshallbechargedto
the budget for the financial year in which it is effected.
4. The budget may include differentiated appropriations and
non−differentiated appropriations. Differentiated appropriations arethose which give rise to commitment appropriations and paymentappropriations.
Multiannualoperationsgiverisetotheentryofdifferentiatedappropria-
tions.
Commitment appropriations shall cover, for the current financial year,
thetotalcostofthelegalobligationsenteredintoforoperationswhoseimplementation extends over more than one financial year.
Payment appropriations shall cover expenditure arising from commit-
mentsenteredintointhecurrentfinancialyearand/orprecedingfinan-cial years.
5. Differentiated appropriations shall be shown in the budget as
follows:
1977X1231 — EN — 01.01.2000 — 001.002 — 5
▼M5
— the commitment appropriation authorized for the financial year
concernedandthepaymentappropriationforthesamefinancialyearshall be entered under the appropriate heading,
— theestimatedannualpaymentappropriationsrequiredforthesubse-
quentfinancialyearsshallbesetoutagainstthecommitmentappro-priations in an indicative schedule in the remarks column.
The distinction between commitment appropriations and payment
appropriationsshallbemadeintheframeworkofthebudgetprocedure.
6. Thesumofthenon−differentiatedappropriationsandthecommit-
ment appropriations of the differentiated appropriations shall constitutethe appropriations for commitments.
The sum of the non−differentiated appropriations and the payment
appropriations of the differentiated appropriations shall constitute theappropriations for payments.
▼
M12
7. The legal commitments entered into for measures extending overmore than one financial year and the corresponding commitmentproposalsshallcontainatimelimitforimplementation.Thisdatemustbe notified to the recipient in the appropriate legal form. The parts ofthose commitments not used six months after this date shall becancelled in accordance with Article 7(6). However, the third sentenceofthissubparagraphshallapplytoneithertheStructuralFundsnortheCohesion Fund.
▼
M5
This time limit shall be determined with due regard to the need formultiannualimplementationoftheoperationsfinancedandthespecificconditionsofimplementationinrelationtothevariousspheresofinter-vention.
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TheCommissionmay,inspecialcircumstances,adjustthetimelimitforimplementation of these commitments, where appropriate reasons aregiven by the recipients.
In this case, the date shall be adjusted in accordance with the same
procedureasthatprovidedforinArticles36to39forthecommitmentproposal and shall be notified to the recipient in the appropriate legalform.
▼
M5
Article 2
The budget appropriations must be used in accordance with the princi-
plesofsoundfinancialmanagement,andinparticularthoseofeconomyandcost−effectiveness.Quantifiedobjectivesmustbeidentifiedandtheprogress of their realization monitored. ►
M8To this end, the mobili-
zation of Community resources must be preceded by an evaluation toensure that the resultant benefits are in proportion to the resourcesapplied. All operations must be subject to regular review, in particularwithin the budgetary procedure, so that their justification may be veri-fied.◄
Member States and the Commission shall cooperate to ensure the
adequacy of systems for decentralized management of Communityfunds.Suchcooperationshallincludethepromptexchangeofallneces-sary information.
Article 3
1. AnyproposalorcommunicationsubmittedbytheCommissionto
theCouncilwhichmayhavebudgetaryconsequences,includingsignifi-cantchangesinthenumberofposts,mustincludeafinancialstatement.Where necessary, the financial statement must be updated to takeaccount of the progress of discussions.
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▼M8
2. Foractivitiesofanoperationalnature,thefinancialstatementshallinclude financial and economic data with a view to the assessment bythe legislative authority of the need for Community action in accord-ance with the relevant provisions of Article 3b of the EC Treaty. Thefinancial statement shall, in particular, incorporate the multiannualimpact of the measures proposed. It shall also give details of possibleconsistency with other financial instruments; it shall be revised, ifnecessary,whenthepreliminarydraftbudgetisdrawnupinthelightofprogress in implementing the programme.
▼
M5
3. Inthecaseofmultiannualoperations,thefinancialstatementshallcontaintheestimatedscheduleofannualrequirementsinappropriationsand posts. In drawing up this schedule, account shall also be taken ofthe ‘financial perspective'annexed to the Interinstitutional Agreementon budgetary discipline and improvement of the budget proce-dure►
M8(1)◄.
▼M8
4. In order to prevent risk of fraud or irregularity, the Commissionshall record in the financial statement any information regardingexisting and planned fraud prevention and protection measures.
5. Atthestartofthebudgetprocedure,theCommissionshallsupply,
on the basis of a cost-effectiveness analysis, appropriate informationenabling a comparison to be made between the development of appro-priationrequirementsandtheoriginalestimatescontainedinthefinan-cial statements.
▼
M5
Article 4
1. SubjecttoArticle27,allrevenueandexpenditureshallbeentered
infullinthebudgetandintheaccountswithoutanyadjustmentagainsteach other.
2. Total revenue shall cover total appropriations for payments.
▼
M8
Notwithstanding the first subparagraph, and without prejudice to thespecificprovisionsofTitleXI,certainrevenues,onconditionthattheyarewithinthelimitoftheauthorizedamounts,shallnotbeusedforanyother purpose, notably:
▼
M5
— financial contributions from Member States to certain research
programmes pursuant to the second subparagraph of Article 6 andArticle 11 (2) (c) of Council Decision 88/376/EEC, Euratom of 24June 1988 on the system of the Communities’ own resources (
2),
▼M13
— interestonthedepositsandfinesreferredtoinSection4ofRegula-
tion (EC) No 1467/97(3), in accordance with Article 132a,
▼M5
— revenue earmarked for a specific purpose, such as income from
foundations, subsidies, gifts and bequests,
— contributions to Community activities from non-member States or
various bodies,
— revenue from third parties in respect of work carried out at their
request.
3. TheCommissionmayacceptanydonationmadetotheCommuni-
ties, and in particular foundations, subsidies, gifts and bequests.
(1) OJ No C 331, 7. 12. 1993, p. 1.
(2) OJ No L 185, 15. 7. 1988, p. 24.
(3) OJ L 209, 2.8.1997, p. 6 and corrigenda in OJ L 46, 17.2.1998, p. 20 and
OJ L 128, 30.4.1998, p. 71.
1977X1231 — EN — 01.01.2000 — 001.002 — 7
▼M5
TheCommissionmayacceptdonationswhichmayinvolvesomefinan-
cialchargeonlysubjecttopriorauthorizationfromtheEuropeanParlia-mentandtheCouncil,whichshallactonthematterwithintwomonthsof the date of receipt of the request from the Commission. If noobjectionhasbeenmadewithinthatperiod,theCommissionshalltakeafinal decision in respect of acceptance.
▼
B
Article►M5 5◄
▼M9
1. Subject to Article 28a, no revenue shall be collected and noexpenditure effected unless credited to or charged against an article inthe budget.
▼
M5
2. No expenditure may be committed or authorized in excess of theauthorized appropriations, without prejudice to Article 27 (2).
Article 6
The financial year shall run from 1 January to 31 December.Therevenueofafinancialyearshallbeenteredintheaccountsforthe
financialyearonthebasisoftheamountscollectedduringthefinancialyear,withtheexceptionoftheownresourcesforthemonthofJanuaryofthenextfinancialyear,inrespectofwhichadvancepaymentmaybemadepursuanttoArticle10(2)ofCouncilRegulation(EEC,Euratom)No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC,Euratom on the system of the Communities’ own resources (
1).
Thereadjustmentofentriesinrespectofvalueaddedtaxownresources,
of the supplementary resource based on GNP and, if appropriate, offinancialcontributions,shallbecarriedoutinaccordancewiththethirdand fourth subparagraphs of Article 10 (3) of the abovementionedRegulation.
▼
M8
The allotted appropriations shall be used solely to cover expenditureproperlyenteredintoandpaidinthefinancialyearforwhichtheyweregranted,saveasotherwiseprovidedinArticles7and103,andtocoverthe debts regularly contracted relating to preceding financial years forwhich no appropriation was carried forward.
▼
M5
The commitments shall be entered in the accounts on the basis of thecommitments contracted up to 31 December.
Theexpenditureofafinancialyearshallbeenteredintheaccountsfor
thatyearonthebasisoftheexpenditureforwhichauthorizationreachedthe financial controller not later than 31 December and the accountingofficernotlaterthanthefollowing10January,andforwhichpaymentwas effected by the accounting officer not later than 15 January.
Notwithstanding the two preceding subparagraphs, the expenditure of
the EAGGF Guarantee Section shall be taken into account for a finan-cial year in accordance with the rules laid down in Article 101.
▼
B
Article►M5 7◄
The following rules shall govern the utilization of appropriations:
▼M5
1. Inthecaseofbudgetheadingswherethereisnodistinctionbetween
commitment appropriations and payment appropriations, appropria-
(1) OJ No L 155, 7. 6. 1989, p. 1.
1977X1231 — EN — 01.01.2000 — 001.002 — 8
▼M5
tionsstilluncommittedattheendofthefinancialyearforwhichthey
were entered shall, as a rule, lapse.
Appropriationsrelatingtoremunerationsandallowancesofmembers
and staff of the institutions and provisional appropriations may notbe carried over.
However:
(a) adecisionmaybetakentocarryover,tothenextfinancialyear
only, appropriations still uncommitted at the close of the finan-cial year, where the appropriations made to the headings inquestion in the budget of the next financial year are not suffi-cient to cover requirements, and those committed after 15Decemberforpurchasesofstoresorequipment,performanceofwork or provision of supplies;
(b) appropriationsinrespectofpaymentsstilloutstandingbyvirtue
ofcommitmentsdulyenteredintobeforethecloseofthefinan-cial year, with the exception of commitments entered into after15Decemberforpurchasesofstoresorequipment,performanceorworkorprovisionofsupplies,shallbecarriedoverautomati-cally to the next financial year only.
▼
M4
2. Inthecaseofbudgetheadingswhereadistinctionismadebetween
commitment appropriations and payment appropriations, commit-ment appropriations and payment appropriations which have notbeen used at the end of the financial year for which they wereenteredshall,asarule,lapse.However,theymay,bydecisionoftheCommissiontakennotlaterthan15February,becarriedovertothenext financial year only, in accordance with the following criteria:
(a) in the case of commitment appropriations:
— amounts ►
M12relating◄tooperationsforwhichprelimi-
narieshavebeenvirtuallycompletedat31Decemberbutforwhich accounting commitments have not yet been made►
M12must◄in principle be committed by 31 March of
the following year,
— amounts which are necessary when the Council has adopted
abasicinstrumenttowardstheendofthefinancialyearandthe Commission has been unable to commit the appropria-tions provided for this purpose in the budget by 31December;
(b) in the case of payment appropriations:
— amountsneededtocoverexistingcommitmentsorrelatingto
commitmentappropriationscarriedover,whentheappropria-tions provided for the headings concerned in the budget forthe following financial year do not cover requirements. Inexercisingitspowerstoimplementthebudget,theCommis-sion shall, depending on management requirements,endeavour to use first the appropriations authorized for thecurrent financial year and not use the appropriations carriedover until the former are exhausted.
▼
M5
The Commission shall inform the budgetary authority by 15 March
at the latest of the decision taken and state, for each budget item,how the agreed criteria were applied to each carry-over.
Provisional appropriations may not be carried over.
▼
M6
3. Inthecaseofappropriationsforwhichadecisiontocarryovermay
be taken in accordance with point 1 (a), the Commission shallforward to the budgetary authority, not later than 15 February, thedulysubstantiatedrequeststocarryoverappropriationsmadebytheEuropeanParliament,theCouncil,theCourtofJustice,theCourtofAuditors,theEconomicandSocialCommittee,theCommitteeoftheRegions , ►
M14the Ombudsman ◄and the Commission itself.
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The carry−over of such appropriations can be proposed only for
exceptional reasons in order to cope with compelling needs whichcannot be met by appropriations from the next financial year. Inprinciple, such carry−overs are intended to cover needs normallycoming under the previous financial year but which, due to delaysfor which the authorizing officer was not responsible, could not beused in due time.
TheCouncilshallconsulttheEuropeanParliamentandshallactbya
qualified majority on the requests to carry over expenditure neces-sarily arising from the Treaties or from acts adopted pursuantthereto.
The European Parliament shall consult the Council and shall act on
the requests to carry−over expenditure other than that necessarilyarising from the Treaties or from acts adopted pursuant thereto.
In the absence of a decision by the budgetary authority within a
periodofsixweeks,therequestsforcarry−oversshallbedeemedtobe approved.
4. Unusedrevenueandappropriationsavailableat31Decemberarising
fromthespecificrevenuereferredtoinArticle4(2)shallbecarriedover automatically.
5. The following appropriations shall lapse at the end of the year:
(a) appropriations from the previous financial year:
— carried over by decision of the budgetary authority under
point 1 (a) which have been neither committed nor paid,
— carried over automatically under point 1 (b) which have not
been paid,
— carriedoverbytheCommissionunderpoint2andremaining
unused at the end of the financial year;
(b) appropriationsofthefinancialyearwhichhavenotbeencarried
over.
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M4
6.►M12When commitments in budget headings where there is a
distinction between commitment appropriations and payment appro-priationsarecancelledasaresultoftotalorpartialnon-implementa-tion of the projects for which they were earmarked in any financialyearafterthatinwhichthecommitmentappropriationswereenteredinthebudget,theappropriationsconcernedshall,asarule,lapse.Inaddition, any amounts unduly paid shall be recovered. ◄
However, the commitment appropriation corresponding to the
amount of the commitment cancelled may, exceptionally, be madeavailable again when it is essential to carry out the programmeoriginally planned, unless the budget for the current financial yearcontains funds available for this purpose.
AtthebeginningofeachfinancialyeartheCommissionshallthere-
fore examine the cancellations which have taken place in theprevious financial year and assess, in the light of requirements, theneed for making the appropriations available again.
The Commission shall take this decision by 15 February of each
financial year.
▼
M5
The Commission shall inform the budgetary authority by 15 March
ofthedecisiontakenandstate,foreachbudgetitem,thereasonsformaking these appropriations available again.
7. Revenue deriving from the repayment of advances by recipients of
Community aid shall be entered in the suspense accounts.
Atthestartofeachfinancialyear,theCommissionshallexaminethe
volumeofsuchrevenueandassesstheneedforre−useinthebudgetheading from which the original expenditure was made, in the lightof requirements.
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TheCommissionshalltakethisdecisionbefore15Februaryofeach
financialyearandshallinformthebudgetauthorityby15Marchofthe decision taken.
Revenuewhichhasnotbeenre−usedshallbeshownundermiscella-
neous revenue of the financial year in which it has been entered.
8. The revenue and expenditure account shall show the automatic
carry−overs,theappropriationscarriedoverbydecisionofthebudg-etary authority, those carried over by decision of the Commissionand the appropriations made available again by decision of theCommission after commitments have been cancelled or repaid.
9. For the purpose of implementing the budget, the use of appropria-
tions carried forward shall be shown separately, for each budgetitem, in each article in the accounts for the current financial year.
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B
Article►M5 8◄
►M51.◄The appropriations entered in the budget may be
committedwitheffectfrom1January,oncethebudgethasbeenfinallyadopted.
►
M52.◄Thisprovisionshallnotapplytocurrentadministrative
expenditurewhich,asfrom15Novemberofeachyear,maybechargedas an expected commitment against the appropriations provided for inrespect of the next financial year. Such commitments shall not,however, exceed one quarter of the total corresponding appropriationsforthecurrentfinancialyear.Suchcommitmentsshallnotapplytonewexpenditure of a kind not yet approved in principle in the last budgetduly adopted.
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M5
3. Expenditure relating to rents or certain associated expenditurewhichispayableinadvanceinaccordancewithprovisionslaiddownbylaworcontractsmaygiverisetopaymentsfrom20Decemberonwardsto be charged to the appropriations for the next financial year.
Article 9
1. If the budget is not finally adopted at the beginning of the finan-
cialyear,Article78boftheECSCTreaty,Article204ofthe ►
M8EC
Treaty◄andArticle178oftheEuratomTreatyshallapplytocommit-
ment and payment of expenditure already approved in principle in thelast budget duly adopted.
Anitemofexpenditureshallbeconsideredashavingbeenapprovedin
principle in the last budget duly adopted if it could have been chargedto a specific budget heading under the financial year concerned.
2. (a) Commitments may be entered into in respect of any chapter:
— foruptoonequarterofthetotalappropriationsenteredinthe
relevant chapter for the preceding financial year, accountbeing taken of all transfers, plus one twelfth for eachcompleted month,
— withoutexceedingtheappropriationsprovidedforinthedraft
budget or, in the absence thereof, in the preliminary draftbudget.
The global provisional commitments of the EAGGF Guar-
antee Section referred to in Article 99 shall be treated ascommitments for the purposes of these provisions.
(b) Payments may be made monthly in respect of any chapter:
— up to one−twelfth of the total appropriations entered in the
chapter concerned for the preceding financial year, accountbeing taken of all transfers,
— aslongasthismeasuredoesnothavetheeffectofplacingat
the disposal of the Commission, for any month, appropria-tions in excess of one−twelfth of those provided for in the
1977X1231 — EN — 01.01.2000 — 001.002 — 11
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draft budget or, in the absence thereof, in the preliminary
draft budget.
3. IfthecontinuityofCommunityactivitiesandadministrativeneeds
so require:
(a) forexpenditurenecessarilyresultingfromtheTreatiesorfromacts
adopted in accordance therewith, the Council acting by a qualifiedmajoritymayattherequestoftheCommissionandafterconsultingthe European Parliament, authorize simultaneously two or moreprovisional twelfths for both commitments and payments in addi-tion to those automatically made available under paragraphs 2 (a)and (b);
(b) forexpenditureotherthanthatnecessarilyresultingfromtheTrea-
ties, or from acts adopted in accordance therewith, the secondsubparagraph of Article 78b (2) of the ECSC Treaty, the thirdsubparagraph of Article 204 of the ►
M8EC Treaty ◄and the
thirdsubparagraphofArticle178oftheEuratomTreatyshallapply.
The additional twelfths shall be authorized in whole.The annual total authorized for each chapter by reason of the twelfths
maynotexceedthetotalforthecorrespondingchapteroftheprecedingyear’s budget, account being taken of transfers, nor may it exceed thetotalforthecorrespondingchapterofthedraftbudgetor,wherethisisnot available, the preliminary draft budget.
4. If, for a given chapter, the authorization of two or more provi-
sionaltwelfthsgrantedinthecircumstancesprovidedforinparagraph3doesnotenabletheexpenditurenecessarytoavoidabreakincontinuityof the Community’s activity in the area in question to be met, anoversteppingofthetotalprovidedforinthelastsubparagraphofpara-graph3may,exceptionally,beauthorizedinaccordancewiththesameprocedures,providedthattheoveralltotaloftheappropriationsopenedin the budget of the preceding year is not exceeded.
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B
Article►M5 10◄
The budget and the supplementary or amending budgets, as finally
adopted, shall be published in the Official Journal of the European
Communities, at the instance of the President of the European Parlia-
ment.
▼M5
Publication shall normally take place within one month of the date ofthe declaration of final adoption of the budget.
▼
M13
Article 11
1. The budget shall be drawn up in euro.2. TheeuroshallbethesinglecurrencyasdefinedinCouncilRegu-
lation (EC) No 974/98 of 3 May 1998 on the introduction of theeuro(
1).
3. Withoutprejudicetospecificprovisionsderivingfromtheapplica-
tionofsector-specificrulesgoverningeitherrevenueorexpenditure,therights and obligations of the Communities shall be expressed andexecuted in euro.
4. Conversions between the euro and the currencies of the Member
States which have not adopted the euro shall be made at the exchangerate applicable on the day of the operation; derogations from thisprinciplemaybepermittedinexceptionalcases,inaccordancewiththeimplementing rules referred to in Article 139.
(1) OJ L 139, 11.5.1998, p. 1.
1977X1231 — EN — 01.01.2000 — 001.002 — 12
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5. The daily euro exchange rates for the currencies not participating
inthesinglecurrencyshallbeavailableeachdayandshallbepublishedin the Official Journal of the European Communities .
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TITLE II
ESTABLISHMENT AND STRUCTURE OF THE BUDGET
SECTIONI
ESTABLISHMENT OF THE BUDGET
Article 12
▼M14
TheEuropeanParliament,theCouncil,theCourtofJustice,theCourtofAuditors, the Economic and Social Committee, the Committee of theRegionsandtheOmbudsmanshall,eachyearbefore1July,drawupanestimate of their revenue and expenditure for the following year.
▼M5
TheseestimatesshallbeforwardedtotheCommissionand,forinforma-tion, to the European Parliament and the Council, no later than 1 July.
Article 13
1. The Commission shall, in the preliminary draft budget which it
placesbeforetheCouncilnotlaterthan1Septemberofeachyear,drawup a general statement of revenue of the Communities and consolidatethe estimates referred to in Article 12.
It shall at the same time forward the preliminary draft budget to the
European Parliament.
2. The Commission shall prepare a general introduction to the
preliminary draft budget. This introduction shall contain in particular:
(a) financial tables covering the entire budget; and
(b) as regards the Commission subsections:
— a description of the policies for which the appropriations are
requested,takingaccountoftheprinciplesandrequirementssetout in Article 2,
— anexplanationofthechangesinappropriationsfromonefinan-
cial year to the next,
— a detailed statement on borrowing and lending policy.
3. Eachoftheothersectionsofthepreliminarydraftbudgetshallbe
preceded by an introduction prepared by the institution concerned andcovering the points listed in the first and second indents of 2 (b).
4. The preliminary draft budget shall be accompanied by working
documents containing the following information:
▼
M8
(a) in respect of staff of the institutions:
— a statement of the permanent and temporary staff policy meas-
ures taken, listing the measures taken to promote mobility andgiving figures for the staff redeployed by category,
— foreachcategoryofstaff,adetailedlistofbudgetarypostsand
numbersofpersonsinpostonthedateofthesubmissionofthepreliminary draft budget, indicating their distribution by gradeand administrative unit or principal operational unit for theestablishments of the Joint Research Centre,
— whereachangeinthenumberofpersonsinpostisproposed,a
statement justifying such changes,
1977X1231 — EN — 01.01.2000 — 001.002 — 13
▼M8
— a list of posts broken down by area of activity;
▼M5
(b) inrespectofsubsidiestothebodiessetuppursuanttotheTreaties
orActsadoptedinaccordancetherewithandtotheSupplyAgency,anestimateofrevenueandexpenditureprefacedbyanexplanatorystatement drawn up by the bodies concerned; for the EuropeanSchools,astatementshowingrevenueandexpenditureprefacedbyan explanatory statement.
5. TheCommissionshallalsoattachtothepreliminarydraftbudget:— ananalysisofthefinancialmanagementfortheprecedingfinancial
year,asprovidedforinArticle80,andabalancesheetofassetsandliabilities of the Communities as at 31 December of the precedingfinancial year, as provided for in Article 81, and
— an opinion on the estimates of the other institutions; this opinion
may contain different estimates, accompanied by the reasonstherefor.
Article 14
▼
M14
The Commission may, on its own initiative or if requested by theEuropean Parliament, the Council, the Court of Justice, the Court ofAuditors, the Economic and Social Committee, the Committee of theRegionsortheOmbudsman,eachinrespectofitsownsection,presenttotheCouncilaletterofamendmenttothepreliminarydraftbudgetonthe basis of new information which was not available at the time thepreliminary draft was established.
▼
M5
However,saveinveryexceptionalcircumstances,theCommissionmustputsuchletterofamendmenttotheCouncilatleast30daysbeforethefirst reading of the draft budget by the European Parliament, and theCouncil must put the letter of amendment to the draft budget to theEuropean Parliament at least 15 days before the said first reading.
Article 15
1. In the event of unavoidable, exceptional or unforeseen circum-
stances, the Commission may submit preliminary draft supplementaryand/or amending budgets.
Preliminarydraftsupplementarybudgetshallmeananyproposalwhich
would either increase the total amount of appropriations for commit-mentsand/orpayments,orfinanceoneormorenewoperationswithoutincreasing the total amount of appropriations.
Preliminary draft amending budget shall mean any proposal which
would involve modifications to the budget of a financial or technicalnature,withoutcausinganincreaseinthetotalamountofappropriationsand without providing for new operations.
2. Preliminarydraftsupplementaryand/oramendingbudgetsshallbe
subjecttotheprovisionsofArticle78oftheECSCTreaty,Article203of the►
M8EC Treaty ◄and Article 177 of the Euratom Treaty.
They shall be submitted, examined, established and finally adopted in
the same form and according to the same procedure as the budgetwhose estimates they are amending. They must be substantiated byreference to the latter.
3. All preliminary draft supplementary and / or amending budgets
must, as a general rule, be forwarded to the Council by the date laiddown for the submission of the preliminary draft budget for thefollowing financial year.
The competent authorities shall discuss them in the light of their
urgency.
▼
M14
4. Requests for amending and/or supplementary budgets from theEuropean Parliament, the Council, the Court of Justice, the Court of
1977X1231 — EN — 01.01.2000 — 001.002 — 14
▼M14
Auditors, the Economic and Social Committee, the Committee of the
Regions or the Ombudsman shall be forwarded by the Commission tothe budgetary authority. The Commission may attach a dissentingopinion.
▼
M5
5. Where the Council, having received a preliminary draft supple-mentary and/or amending budget, considers that it is not necessary toprepareadraftbudget,itshalldetermineitspositionafteranexchangeof views with the European Parliament.
6. Preliminarydraftsupplementaryand/oramendingbudgetsshallbe
accompaniedbystatementsofgroundsandtheinformationavailableontheimplementationofthebudgetfortheprecedingandcurrentfinancialyears at the time of their establishment.
▼
B
Article►M5 16◄
1. TheCouncilshallestablishthedraftbudgetinaccordancewiththe
procedure laid down in Article 78 of the ECSC Treaty, Article 203 ofthe►
M8EC Treaty ◄and Article 177 of the Euratom Treaty.
The draft budget shall be forwarded by the Council to the European
Parliament and placed before it not later than 5 October. The Councilshallattachtothatdraftbudgetanexplanatorymemorandumdefininginparticularitsreasonsfordepartingfromthepreliminarydraftbudget,ifit has done so.
2. Paragraph 1 shall apply mutatis mutandis to draft supplementary
or amending budgets.
▼
M5
Article 17
1. ThebudgetshallbeadoptedinaccordancewithArticle78ofthe
ECSCTreaty,Article203ofthe ►M8ECTreaty ◄andArticle177
of the Euratom Treaty.
2. Once the budget has been declared finally adopted by the Pres-
ident of the European Parliament, each Member State shall, from 1January of the following financial year or from the date of the formaldeclarationifitismadeafter1January,beboundtomakeovertotheCommunitythepaymentsdueasspecifiedinCouncilRegulation(EEC,Euratom) No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities’ ownresources (
1).
Article 18
The Commission and the budgetary authority may agree to bring
forward certain dates for the transmission of the estimates, and for theadoption and transmission of the preliminary draft and draft budgets.This agreement may not, however, have the effect of reducing ordelaying the periods allowed for consideration of these texts underArticle78oftheECSCTreaty,Article203ofthe ►
M8ECTreaty ◄
and Article 177 of the Euratom Treaty.
SECTIONII
STRUCTURE AND PRESENTATION OF THE BUDGET
Article 19
▼M6
1. The budget shall consist of:
(1) OJ No L 155, 7. 6. 1989, p. 1.
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▼M6
— a general statement of revenue,
▼M14
— separate sections subdivided into statements of revenue and expen-
ditureoftheEuropeanParliament,theCouncil,theCommission,theCourt of Justice, the Court of Auditors, the Economic and SocialCommittee, the Committee of the Regions and the Ombudsman.
▼M6
The Commission section shall consist of:
— “PartA"forthestaffandadministrativeexpenditureofthatinstitu-
tion.
TherevenueandexpenditureoftheOfficeforOfficialPublications
of the European Communities shall be attached to this part,
— “PartB"foroperatingexpenditure,dividedintoasmanysubsections
as are required.
▼M5
2. Withineachsection,theitemsofrevenueandexpenditureshallbeclassifiedaccordingtotheirtypeortheusetowhichtheyareassignedunder titles, chapters, articles and items.
3. The budgetary nomenclature shall be determined as regards the
apportionmentofrevenueandexpenditureunderseparatetitles,chaptersand articles, during the budgetary procedure.
4. Eachsectionofthebudget,andPartsAandBoftheCommission
section, may include a chapter for ‘provisional appropriations'and a‘contingencyreserve'chapter.Theappropriationsenteredinthesechap-ters may be used only by means of transfer in accordance with theprocedure laid down in Article 26.
5. The Commission section may include a ‘negative reserve'limited
to a maximum amount of ►
M13euro◄200 million. This reserve,
whichshallbeenteredinaseparatechapter,maycomprisebothappro-priations for commitments and appropriations for payments.
Thisreservemustbedrawnuponbeforetheendofthefinancialyearby
meansoftransferinaccordancewiththeprocedurelaiddowninArticle26.
6. The subsection for EAGGF Guarantee Section expenditure shall
include a monetary reserve, for which the entry, utilization andfinancing conditions are determined by ►
M8Council Decision 94/
729/EC of 31 October 1994 ◄concerning budgetary discipline (1),
and►M8Decision 94/728/EC, Euratom of 31 October 1994 (2)◄
onthesystemoftheCommunities’ownresourcesandbytheprovisionsadopted for implementing the latter.
7. In addition, the document showing all the borrowing and lending
operationsreferredtoinArticle20(5)shallbeannexedtoPartBoftheCommission section.
▼
M7
7. The subsection concerning “Cooperation with developing coun-triesandotherthirdcountries"shallincludethefollowingtworeserves,the conditions for the entry, utilization and financing of which are laiddowninCouncilDecision94/729/ECof31October1994onbudgetarydiscipline(
1) and in Regulation (EEC, Euratom) No 1552/89:
(a) a reserve for emergency aid for non-member countries;
(b) a reserve relating to Community loans and loan guarantees to
non-member countries and in those countries.
(1) OJ No L 293, 12. 11. 1994, p. 14.
(2) OJ No L 293, 12. 11. 1994, p. 9.
1977X1231 — EN — 01.01.2000 — 001.002 — 16
▼M5
Article 20
The budget shall show:1. In the general statement of revenue:
— the estimated revenue of the Communities for the financial year
in question, divided into titles, chapters, articles and items,
— the revenue for the preceding financial year, divided into titles,
chapters, articles and items,
— appropriate remarks on each subdivision.
2. In the section for each institution:
(a) as regards the statement of revenue:
— the estimated revenue for each institution for the financial
year in question, divided into titles, chapters, articles anditems, following a decimal classification system,
— therevenueenteredinthebudgetfortheprecedingfinancial
year and the revenue established for the last financial yearforwhichaccountshavebeenclosed,usingthesameclassi-fication,
— appropriate remarks on each revenue heading;
(b) as regards the statement of expenditure:
(ba) inthecaseofthevariousitems,articles,chaptersandtitles:
— theappropriationsmadeavailableforthefinancialyear
inquestion,theseappropriationsbeingthecommitmentappropriations and the payment appropriations for thebudget headings for which this distinction has beenagreed,
— the appropriations made available for the preceding
financial year,
— the actual expenditure in the last financial year for
which the accounts have been closed, determined asfollows:
— for the headings where the distinction between
commitmentappropriationsandpaymentappropria-tions has not been made:
— actual payments in the last financial year for
which the accounts have been closed plus thecarryovers to the next financial year,
— for the headings where the distinction between
commitmentappropriationsandpaymentappropria-tions has been made:
— in commitments: commitments entered into
during the financial year against appropriationsforthatfinancialyearandagainstappropriationscarried over from the preceding financial year;
— in payments: payments made during the finan-
cialyearagainstappropriationsforthatfinancialyear and against appropriations carried overfrom the preceding financial year;
(bb) appropriate remarks on each subdivision. These remarks
shall include:
— the basic legal instrument, where one exists,
— all such explanations as may be necessary concerning
the nature and purpose of the appropriations,
— in the case of operations covered by commitment
appropriations and payment appropriations: an indic-ative schedule of the payments for the financial yearconcerned and subsequent financial years,
▼
M8
— theamountofanyrevenuetobere−used.Thisamount
is mentioned for information only.
1977X1231 — EN — 01.01.2000 — 001.002 — 17
▼M5
3. As regards staff:
▼M6
— for each section of the budget, an establishment plan setting the
numberofpermanentandtemporarypostsforeachgradeineachcategory and in each service authorized within the limits of thebudget appropriations. The staff of the supply agency shall beshown separately in the Commission’s establishment plan.►
M14 ◄;
▼M5
— anestablishmentplanforstaffpaidfromtheresearchandtechno-
logical development appropriations, classified by category andgrade and distinguishing between permanent and non-permanentstaff, authorized within the limits of the budget appropriations.
Asregardsscientificandtechnicalstaff,theclassificationmaybe
basedongroupsofgrades,inaccordancewiththeconditionslaiddown in each budget. The establishment plan must specify thenumberofhighlyqualifiedtechnicalorscientificpersonnelwhoare accorded special advantages under the Staff Regulationsapplicable to these officials;
— anestablishmentplansettingthenumberofpostsforeachgrade
in each category in:
— the Office for Official Publications,— the European Centre for the Development of Vocational
Training,
— theEuropeanFoundationfortheImprovementofLivingand
Working Conditions.
The establishment plan shall show next to the number of posts
authorized for the financial year the number authorized for thepreceding year.
4. The establishment plan shall constitute an absolute limit for each
institution; no appointment may be made in excess of the limit set.
Instancesofhalf-timeworkauthorizedbytheappointingauthorityin
accordance with Article 55a of the Staff Regulations of officials ofthe European Communities may be compensated for by the recruit-ment of other staff within the limits laid down by the budgetauthority in the budgetary procedure.
5. As regards borrowing and lending operations:
▼
M8
(a) in the general statement of revenue, the budget headings corre-
sponding to the relevant operations and intended to record anyreimbursements received from beneficiaries who initiallydefaulted, leading to activation of the performance guarantee.Theseheadingsshallcarryatokenentryandbeaccompaniedbyappropriate remarks;
(b) in the Commission section, Part B:
— the budget headings containing the Community’s
performanceguaranteesinrespectoftheoperationsinques-tion.Theseheadingsshallcarryatokenentry,solongasnoeffective charge which has to be covered by specificresources has arisen,
— remarksgivingareferencetothelegalbasisandthevolume
of the operations envisaged, the duration and the financialguaranteegivenbytheCommunityinrespectoftheseopera-tions;
▼
M5
(c) inadocumentannexedtoPartBoftheCommissionsection,as
an indication:
— current capital operations and current debt management,
— thecapitaloperationsanddebtmanagementforthefinancial
year in question.
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▼M7
6. The budget headings under revenue and expenditure necessary for
implementing the reserve relating to Community loans and loanguaranteestonon−membercountriesandinthosecountriesandalsofor implementing the Guarantee Fund established by Council Regu-lation (EC, Euratom) No 2728/94.
▼
B
TITLE III
IMPLEMENTATION OF THE BUDGET
SECTIONI
GENERAL PROVISIONS
Article►M5 21◄
The budget shall be implemented in accordance with the principle that
theauthorizingofficersandaccountingofficersaredifferentindividuals.
Theappropriationsshallbeadministeredbytheauthorizingofficerwho
alone is empowered to enter into commitments regarding expenditure,establish entitlements to be collected and issue recovery orders andpayment orders.
The operations of collection or payment shall be carried out by the
accounting officer.
The duties of authorizing officer, financial controller and accounting
officer shall be mutually incompatible.
Article►
M5 22◄
1. TheCommissionshallimplementthebudgetonitsownresponsi-
bilityinaccordancewiththisFinancialRegulationandwithinthelimitsof the appropriations allotted.
▼
M5
The implementation of appropriations entered for significantCommunity action shall require a basic act, in accordance with theprocedureandtheprovisionslaiddowninparagraph3(c)ofSectionIVof the Joint Declaration of 30 June 1982 (
1).
▼M14
2. The Commission shall confer upon the European Parliament, theCouncil,theCourtofJustice,theCourtofAuditors,theEconomicandSocial Committee, the Committee of the Regions and the Ombudsmanthe requisite powers for the implementation of the sections of thebudget relating to them.
▼M12
The Commission and other institutions may not, under any form oruponanybasiswhatsoever,delegatetooutsideentitiesororganisationstasks of implementing the budget which may give rise to missions onthe part of the European public service, especially where powers toenter into public contracts are involved.
▼
M5
3. InaccordancewithArticle2,eachinstitutionshalltaketheappro-priatemeasures,intermsofbothorganizationandfollow−up,toensurethe achievement of the objectives which it has set for itself.
4. WiththeexceptionofthecasesprovidedforinArticles28,29,39,
48 and 52 involving decisions overruling the financial controller, theCommission and each of the other institutions may delegate theirpowers of budgetary implementation in accordance with the conditions
(1) OJ No C 194, 28. 7. 1982, p. 1.
1977X1231 — EN — 01.01.2000 — 001.002 — 19
▼M5
laid down by their internal rules of procedure and within the limits
which they themselves lay down in the act of delegation.
Those so empowered may act only within the limits of the powers
expressly conferred upon them.
▼M12
Allactsimplementingthebudgetwhicharecapableofgivingrisetoaconfusion of interests between delegator, delegatee and third partyrecipient of expenditure shall be prohibited.
TheimplementingarrangementssetoutinArticle139shallgovernthe
conditions for implementing this Article, in particular the followingaspects:
— causes of the confusion of interests,
— persons between whom the confusion of interests may arise,— consequences of the confusion of interests.
▼
M5
The acts of delegation shall be communicated to all the partiesconcerned in accordance with the implementing rules provided for in►
M8Article 139 ◄.
▼M12
Anymemberofstaffwhoauthorisescommitmentsorpaymentswithouthaving been delegated or subdelegated the necessary powers, or inexcess of the limits of the powers expressly conferred upon him, shallrender himself liable to disciplinary action and, where appropriate, topayment of compensation in accordance with Title V. Each institutionshall adopt internal rules which shall specify the procedure for issuingacts of subdelegation. Such acts shall obligatorily specify in detail thepowers conferred.
▼
M12
4a. When the institutions commission an outside person, body orfirm to perform a Community activity, the contracts and subcontractsconcluded for that purpose must contain all appropriate provisions forensuring the transparency of the contracted and subcontracted opera-tionsinaccordancewiththeimplementingrulesprovidedforinArticle139.
Ifthepaymentsmadetothesubcontractorsgenerateinterestwhichmay
beusedtofinancetheprogrammesinquestion,thefollowingprocedureshall be applied:
— periodically, at intervals of no more than six months, recovery
orders shall be issued for the interest generated by these funds,which will then be booked to the statement of revenue,
— at the same time, appropriations for the corresponding amount, in
both commitments and payments, shall be made available in theheadingofthestatementofexpendituretowhichtheinitialexpendi-ture was charged.
▼
M6
5. Save as otherwise provided, the Ombudsman, the Economic andSocial Committee and the Committee of the Regions shall, for thepurposes of this Financial Regulation, be treated as institutions of theCommunities.
For the common organizational structure of the Economic and Social
Committee and the Committee of the Regions, an accounting systemshall be established with a breakdown of expenditure showing theproportion of services provided to each of these two institutions.
▼
M5
Article 23
Where revenue and expenditure operations are managed by means of
integratedcomputersystems,theprovisionsofSectionsIIandIIIandofTitleVIshallapplywithdueallowanceforthepossibilitiesandrequire-ments deriving from computerized management. To this end:
1977X1231 — EN — 01.01.2000 — 001.002 — 20
▼M5
— the supporting documents may remain with the authorizing officer
or the accounting officer for the purposes of checking,
— signaturesandapprovalsmaybeaddedinappropriatecomputerized
form.
TheconditionsforimplementingthisArticleshallbedeterminedbythe
implementing rules provided for in ►M8Article 139 ◄.
Article 24
▼M6
Each institution shall appoint a financial controller.►
M14 ◄
▼M9
HeshallcarryouthisdutiesinaccordancewiththeprincipleslaiddowninArticle2andtheprovisionsofArticle22(3).Heshallreporttohisinstitution on any problem he uncovers regarding the management ofCommunity finances.
▼
M5
He shall be responsible for monitoring:
— the commitment and authorization of all expenditure,
— the establishment and collection of all revenue.
▼M12
Thefinancialcontrollermustbeconsultedonthesettingupandaltera-tion of the accounting systems and inventory systems of the institutionto which he is attached and on the setting up and alteration of thesystemsoffinancialmanagementusedbyauthorisingofficers.Heshallhave access to the data of such systems.
Monitoring shall be carried out by that official by means of inspection
ofthefilesrelatingtoexpenditureandrevenueand,ifnecessary,onthespot. The financial controller shall be responsible for the internal auditof the institution, in accordance with the implementing rules providedforinArticle139.Thatauditshallinclude, inter alia,assessmentofthe
effectiveness of the management and control systems and verificationthat operations have been effected in a regular manner.
▼
M9
All documents and information produced or stored on a magneticmedium which the financial controller considers necessary for theperformanceofhisdutiesshallbesuppliedtohimathisrequestbythedepartments concerned in the institution.
▼
M5
The financial controller may be assisted in his duties by one or moreassistant financial controllers.
Thespecialrulesapplicabletosuchofficials,whichshallbelaiddown
in the implementing rules provided for in ►
M8Article 139 ◄, shall
besuchastoguaranteethattheyareindependentintheperformanceoftheir duties. Their appointment, their promotion and disciplinary rulesor transfer, and any interruption or termination of appointment bywhatever procedure shall be the subject of reasoned decisions to beforwarded,forinformation,totheEuropeanParliament,theCouncil,theCommission and the Court of Auditors.
Thepersonsconcerned,andtheinstitutionsemployingthem,mayinsti-
tute proceedings before the Court of Justice. Where such an action isconcerned with his independence, the financial controller may instituteproceedings against his institution.
Article 25
Ineachinstitution,thecollectionofrevenueandthepaymentofexpen-
diture shall be carried out by an accounting officer.
▼
M6
The accounting officer shall be appointed by the institution.►
M14 ◄
1977X1231 — EN — 01.01.2000 — 001.002 — 21
▼M5
Without prejudice to the system provided for in Articles 4 and 5 ofCouncilRegulation(EEC)No729/70of21April1970onthefinancingof the common agricultural policy (
1) as last amended by Regulation
(EEC) No 2048/88 (2), and subject to the second subparagraph of
Article 53 on payments procedures, to Article 54 on imprests and toArticle111onthefinancingofexternalaidofthisFinancialRegulation,theaccountingofficeraloneisempoweredtomanagemoniesandotherassets. He shall be responsible for their safekeeping.
The accounting officer shall be responsible for preparing the financial
statements provided for in Articles 78, 79, 80 and 81 of this FinancialRegulation.
▼
M12
The accounting officer shall be consulted on the setting up and altera-tionoftheaccountingsystemsoffinancialmanagementusedbyauthor-ising officers, where such systems are intended to supply data to thecentralaccounts.Heshall,athisrequest,haveaccesstothedataofsuchsystems.Theaccountingofficershallalsobeconsultedonthesettingupand alteration of the inventory systems.
▼
M5
He may be assisted in his duties by one or more assistant accountingofficers,appointedunderthesameconditionsastheaccountingofficer.
The special rules applicable to the accounting officer and to assistant
accounting officers shall be laid down in the implementing rulesprovided for in ►
M8Article 139 ◄.
Article 26
1. Appropriations shall be earmarked for specific purposes by
chapter and article.
2. TheEuropeanParliamentandtheCouncilmaytransferappropria-
tionsfromonechaptertoanotherandfromonearticletoanotherwithintheir own sections of the budget.
▼
M14
The Court of Justice, the Court of Auditors, the Economic and SocialCommittee, the Committee of the regions and the Ombudsman may,withintheirownsectionofthebudget,transferappropriationsfromonearticletoanotherwithineachchapter.Theyshallinformthebudgetaryauthority and the Commission three weeks before making such trans-fers.
(1) OJ No L 94, 28. 4. 1970, p. 13.
(2) OJ No L 185, 15. 7. 1988, p. 1.
1977X1231 — EN — 01.01.2000 — 001.002 — 22
▼M5
3. The Commission may, within its own section of the budget:
(a) transfer appropriations from one article to another within each
chapter;
(b) transfer appropriations from one chapter to another within each of
the titles relating to staff and administrative expenditure. It shallinform the budgetary authority three weeks before making suchtransfers.
4. Without prejudice to the provisions of paragraphs 2 and 3, the
Commission may make proposals to the budgetary authority for trans-fers from one chapter to another within each budget section.
Proposalsfortransfersshallbeaccompaniedbyappropriateanddetailed
supporting documents showing the implementation of appropriationsand estimates of requirements up to the end of the financial year, bothfortheheadingstobecreditedandforthosefromwhichtheappropria-tions are drawn.
▼
M14
Proposals made by the other Institutions, the Economic and SocialCommittee, the Committee of the Regions and the Ombudsman fortransfers from one chapter to another shall be automatically forwardedtothebudgetaryauthority;theCommissionmayattachitsownopinionto such proposals.
▼
M5
5. Thebudgetaryauthorityshalltakedecisionsontransfersofappro-priations as follows:
(a) inthecaseofproposalsfortransfersrelatingtoexpenditureneces-
sarily resulting from the Treaties or from acts adopted in accord-ance therewith, the Council shall, after consulting the EuropeanParliament, act by a qualified majority within six weeks, except inurgent cases. The European Parliament shall deliver its opinionwithinsuchtimeaswillpermittheCounciltobeapprisedofitandto act within the time limit indicated. Where the Council does notact within this time limit, the proposals for transfers shall bedeemed to be approved;
(b) in the case of proposals for transfers relating to expenditure other
than that necessarily resulting from the Treaties or from actsadopted in accordance therewith, the European Parliament shall,afterconsultingtheCouncil,actwithinsixweeks,exceptinurgentcases.TheCouncilshalldeliveritsopinion,byaqualifiedmajority,within such time as will permit the European Parliament to beapprisedofitandtoactwithinthetimelimitindicated.WheretheEuropean Parliament does not act within this time limit, theproposals for transfers shall be deemed to be approved;
(c) proposals for transfers relating both to expenditure necessarily
resulting from the Treaties or from acts adopted in accordancetherewith,andtootherexpenditureshallbedeemedtobeapprovedif neither the Council nor the European Parliament has decidedotherwisewithinsixweeksofthedateonwhichthetwoinstitutionsreceived the proposals. If, in the case of such proposals for trans-fers, the European Parliament and the Council reduce the proposalforatransferbydifferentamounts,whicheveristhesmalleroftheamountsacceptedbyoneofthetwoinstitutionsshallbedeemedtobe approved. Where one of the institutions rejects the principle ofthe transfer, such transfer shall not be made.
6. Appropriations may also be transferred, by decision of the budg-
etary authority, between headings where a distinction is made betweencommitment appropriations and payment appropriations and headingsinvolving non−differentiated appropriations.
7. Everyproposalforatransferwithinachapterorfromonechapter
to another shall be subject to the approval of the financial controller,who shall certify that the appropriations are available.
8. Appropriations may be transferred only to budget headings for
whichthebudgethasauthorizedappropriationsorcarriedatokenentry.
1977X1231 — EN — 01.01.2000 — 001.002 — 23
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9. This Article shall apply to the appropriations corresponding torevenue earmarked for a specific purpose under Article 4 (2) only aslong as the revenue is not used for any other purpose.
10. TransferswithinthetitlesofthebudgetdevotedtotheEuropean
AgriculturalGuidanceandGuaranteeFund,GuaranteeSection,shallbethe subject of special provisions under Article 104.
▼
M7
11. Decisions on transfers to allow the utilization of the reserverelatingtoCommunityloansandloanguaranteestonon−membercoun-tries and in those countries and the reserve for emergency aid shall betakenbythebudgetaryauthorityinaccordancewithparagraph5(a)and(b) respectively.
▼
B
Article►M5 27◄
1. By way of derogation from ►M5Article 4 ◄, the following
deductions may be made from all bills, invoices or statements, whichshall then be passed for payment of the net amount:
(a) fines imposed on a party to a contract;
(b) adjustments of amounts paid in error, which may be achieved by
meansofdeductionbeforehandwhenanothervalidationofthesametypeisbeingeffectedunderthechapter,articleandfinancialyearinrespect of which the excess payment was made;
(c) the value of apparatus and equipment for scientific and technical
purposes, and the value of vehicles, equipment and installationstakeninpart−exchangeinaccordancewithcommercialusageuponpurchaseofnewapparatus,vehicles,equipmentandinstallationsofthe same kind.
Discounts, refunds and rebates on invoices and bills shall not be
recorded as separate revenue.
▼
M5
2. Notwithstanding Articles 4 and 5, the following sums may bere−usedundertheheadingtowhichtheinitialexpenditurewascharged:
(a) revenue arising from the refund of amounts paid in error against
budget appropriations;
(b) proceedsfromthesupplyofgoodsandservicestootherinstitutions
or bodies, including refunds by such institutions or bodies ofmission allowances paid on their behalf;
(c) insurance payments received;
(d) revenue from payments connected with lettings;
(e) revenue from the sale of publications and films;
▼
M12
▼M5
(g) revenue from the supply of goods and services against payment;(h) proceedsfromthesaleofvehicles,equipmentandinstallationsand
scientific and technical apparatus, equipment and materials whichare being replaced or scrapped.
1977X1231 — EN — 01.01.2000 — 001.002 — 24
▼M5
Such sums must be re−used before the end of the financial year
following that in which the revenue was collected.
The chart of accounts shall include suspense accounts to record re−use
operations in both revenue and expenditure.
▼M12
2a. NotwithstandingArticle4,whereproductsorservicessuppliedtothe Commission incorporate taxes which are refunded by MemberStates pursuant to the Protocol on Privileges and Immunities, the netprice shall be charged to the budget.
Therefundofthesetaxesshallbemonitoredseparatelyintheaccounts.
Such refund shall be recorded by entry of the definitive amount in theinstitution’s accounts at the latest in the year following the financialyear in which it was collected.
▼
B
3. Notwithstanding ►M5Article 4 ◄, repayments made by third
partiesmaybedeductedfromexpenditureincaseswheretheinstitutionhaseffectedapaymentforwhichitislegallyliabletoitscreditorsbutwhereallorpartthereofhasbeenpaidonbehalfofthosethirdparties.
▼
M5
4. NotwithstandingArticle4,adjustmentsmaybemadeinrespectofexchange differences occurring in budget operations. The final gain orloss shall be included in the balance for the year.
▼
M8
5. Inthecasesreferredtoinparagraphs1(c)and2(b),(d),(e),(g)and(h),re−useanddeductionshallbepossibleonlyifprovisionismadethereforintheremarkscolumninthebudget.Estimatesoftheamountsearmarked for re−useshall appear in the remarks column for informa-tion.Theinstitutionsshalljustifydiscrepanciesbetweenthoseestimatesand the amounts which actually give rise to re−use.
▼
B
SECTIONII
BUDGETARY REVENUE, MANAGEMENT OF AVAILABLE FUNDS
▼M9
Article 28
1. Allmeasuresorsituationswhichmaygiverisetoormodifyadebt
due to Communities must be preceded by a forward estimate by thecompetent authorizing officer of the amount due.
Such forward estimates shall be sent to the financial controller of the
institutionforhisapprovalandtotheaccountingofficerforprovisionalregistration.
They shall mention, in particular, the type of revenue and the budget
itemtowhichitistobebookedand,ifpossible,theestimatedamountand the description of the debtor. The purpose of the approval of thefinancial controller shall be to establish that:
(a) the revenue is booked to the correct budget item;
(b) the forward estimate is in order and conforms to the relevant
provisions, in particular of the budget and of the Regulations andalso of all acts made in implementation of the Treaties and of theRegulations, and to the principles of sound financial managementreferred to in Article 2.
The financial controller may withhold his approval if he considers that
theconditionslaiddownin(a)and(b)ofthethirdsubparagrapharenotmet.
The superior authority of the institution may, by a decision stating the
fullreasonstherefor,andonitssoleresponsibility,overrulethisrefusal.This decision shall have a final and binding character; it shall becommunicated for information to the financial controller. The superior
1977X1231 — EN — 01.01.2000 — 001.002 — 25
▼M9
authority of each institution shall inform the Court of Auditors of all
such decisions within one month.
2. The competent authorizing officer shall draw up, in respect of
every debt identified as being a tangible and valid obligation to pay, aproposal that the debt be established and a recovery order, which shallbe sent with supporting documents to the financial controller for hisprior approval. Such debts shall, after they have received the approvalof the financial controller, be registered by the accounting officer inaccordancewiththeimplementingmeasuresprovidedforinArticle139.
Provisional establishments may be made for certain routine revenue
items. Such provisional establishments and any amendments made tothempriortotheclosureoftheaccountsfortheyearshallbesubjecttothe approval of the financial controller in accordance with the imple-menting measures provided for in Article 135.
The purpose of the approval shall be to establish that:
(a) the revenue is booked to the correct budget item;
(b) the order is in order and conforms to the relevant provisions;
(c) the supporting documents are in order;
(d) the debtor is correctly described;
(e) the due date is indicated;
(f) theorderconformstothesoundfinancialmanagementreferredtoin
Article 2;
(g) the amount and currency of the sum to be recovered are correct.
If approval is withheld the fifth subparagraph of paragraph 1 shall
apply.
▼
M12
3. Notwithstanding paragraph 1, no forward estimate shall be madefor the own resources defined in Article 2(1) and (2) of Decision94/728/EC, Euratom, which are paid at fixed intervals by the MemberStates,beforetheMemberStatesmaketheamountsavailabledirectlytothe Commission. The authorising officer responsible shall issue arecovery order for them.
TherecoveryordersfortherevenuereferredtoatArticle2(1)(a)and(b)
of that Decision shall be based on the monthly statements of entitle-ments established by the Member States, which they send to theCommission.
The recovery orders shall be sent to the financial controller for
approval.Aftertheyhavereceivedhisapproval,theyshallberegisteredby the accounting officer in accordance with the implementing rulesprovided for in Article 139.
▼
M9
Article 28a
Revenuereceivedbywayoffines,periodicpenaltypaymentsandother
penaltiesimposedbytheCommission ►M13ortheCouncil ◄onthe
basisoftherelevantrules,andanyaccruedinterest,shallnotbefinallyrecordedasbudgetrevenueaslongasthedecisionsimposingthemmaybeannulledbytheCourtofJustice.Amountscollectedshallbeenteredseparatelyinacashaccountsetasidesolelyforanyrepaymentofsuchamounts in whole or in part. The Commission report referred to inArticle 34 (2) shall provide information on such revenue.
Theappropriateadjustmentshallbemadebyenteringthefinalamount
in the budget:
1. if no appeal is lodged, as soon as the time allowed for appeal has
expired;
2. ifanappealislodged,assoonastheCourtofJusticehasgivenfinal
judgment.
1977X1231 — EN — 01.01.2000 — 001.002 — 26
▼M9
The revenue and expenditure account and the reports on the imple-
mentation of the budget referred to in Article 34 shall show:
1. Commissiondecisionsinthisfieldwiththedateofnotification;and
2. a summary table showing:
(a) the amounts imposed;
(b) fines paid definitively (not subject to appeal);
(c) cases subject to appeal broken down as follows:
— fines not paid but covered by a bank guarantee,
— fines paid pending the judgement of the Court of Justice.
▼B
Article►M5 29◄
1. Theaccountingofficershallassumeresponsibilityfortherecovery
orders duly drawn up.
He shall exercise all due diligence to ensure that the resources due to
the Communities are recovered at the due dates indicated in therecoveryorders,andshallensurethattherightsoftheCommunitiesaresafeguarded.
The accounting officer shall inform the authorizing officer and the
financialcontrollerofanyrevenuenotrecoveredwithinthetimelimitslaid down. ►
M5If necessary he shall initiate the recovery proce-
dure.◄
2. Iftheauthorizingofficerwaivestherighttorecoveranestablished
debt,heshallsendbeforehandaproposalforcancellationtothefinan-cial controller for his approval and to the accounting officer for infor-mation.
▼
M5
The purpose of the approval of the financial controller shall be toestablishthatthewaiverisinorderandconformswiththeprinciplesofsound financial management referred to in Article 2. The proposalconcerned shall be registered by the accounting officer.
▼
B
Ifapprovaliswithheld,thesuperiorauthorityoftheinstitutionmay,byadecisionstatingthefullreasonstherefor,andonitssoleresponsibility,overrulethisrefusal.Thisdecisionshallbefinalandbinding;itshallbecommunicated for information to the financial controller. The superiorauthority of each institution shall inform the Court of Auditors of allsuch decisions ►
M5within one month ◄.
3. Whenthefinancialcontrollerfindsthatadocumentestablishinga
debthasnotbeendrawnup,orthatasumduehasnotbeenrecovered,he shall inform the institution thereof.
4. The implementing conditions in respect of this Article shall be
determined by the implementing measures provided for in►
M8Article 139 ◄.
Article►M5 30◄
A receipt shall be issued in respect of all cash payments made to the
accounting officer.
▼M5
Article 31
Estimatesoftheownresourcesand,ifappropriate,ofthecontributions
tobepaidbytheMemberStatesreferredtoinArticle2(7)ofDecision88/376/EEC,Euratom,of24June1988onthesystemoftheCommuni-ties’ own resources, shall be entered in the budget, expressed in►
M13euro◄. They shall be made available in accordance with
Council Regulation (EEC, Euratom) No 1552/89.
1977X1231 — EN — 01.01.2000 — 001.002 — 27
▼M5
Article 32
Thebalancefromeachfinancialyearshallbeenteredinthebudgetfor
the following financial year as revenue in the case of a surplus orexpenditure in the case of a deficit.
The relevant estimates of such revenue or expenditure shall be entered
inthebudgetduringthebudgetprocedureand,whereappropriate,inaletter of amendment submitted pursuant to Article 14. They shall bedrawn up in accordance with the principles set out in Article 15 ofRegulation (EEC, Euratom) No 1552/89.
Afterthecloseofaccountsforeachfinancialyear,anydiscrepancywith
the estimates shall be entered in the budget for the following financialyear through a supplementary or amending budget.
▼
B
Article►M5 33◄
▼M5
1. The contributions for the financing of certain supplementaryresearch programmes provided for in Article 11 (2) (c) of Decision88/376/EEC, Euratom, of 24 June 1988 shall be paid over as follows:
— seven−twelfthsoftheamountshowninthebudgetnotlaterthan31
January,
— the remaining five−twelfths not later than 15 July.
2. Ifthebudgetisnotfinallyadoptedbeforethestartofthefinancial
year,thecontributionsprovidedforinparagraph1shallbebasedontheamount shown in the budget of the preceding financial year.
▼
B
►M53.◄Anycontributionoranyadditionalpaymentduetothe
budgetfromtheMemberStatesmustbeenteredintheaccount(s)oftheCommissionwithin30daysfromthedateonwhichfundsarecalledfor.
▼
M5
4. ThepaymentsmadeshallheenteredintheaccountprovidedforinArticle 9 (1) of Regulation (EEC, Euratom) No 1552/89, and shall besubject to the conditions set out in Article 11 of that Regulation.
5. The financial contributions referred to in Article 11 (2) (c) of
Decision 88/376/EEC, Euratom of 24 June 1988 on the system of theCommunities’ own resources (for the completion of supplementaryresearch programmes) shall be converted at the rate for the►
M13euro◄applyingonthelastbutoneworkingdayofthemonth
preceding the final date for entry in the accounts.
Article 34
1. The Commission shall, once a month, send figures to the Euro-
pean Parliament and the Council showing the implementation of thebudget,andcoveringbothrevenueandexpenditure.Thesefiguresshallalso show details of the utilization of appropriations carried forward.
Thesefiguresshallbesentwithin10workingdaysfollowingtheendof
each month.
2. The Commission shall, four times a year, and in principle within
the 30 working days following the end of the months of March, June,August and December, present to the European Parliament and theCouncil a report on the implementation of the budget, covering bothrevenue and expenditure. This report shall also give details of theutilization of appropriations carried forward from previous financialyears.
The budgetary authority may examine these reports.3. Thefiguresandthequarterlyreportshallatthesametimebesent
to the Court of Auditors.
1977X1231 — EN — 01.01.2000 — 001.002 — 28
▼M13
Article 35
The Commission shall, every three months, send the Member States a
statement of the transfers effected between their currencies.
▼B
SECTIONIII
COMMITMENT, VALIDATION, AUTHORIZATION AND PAYMENT
OF EXPENDITURE
1. Commitment of expenditure
Article►M5 36◄
▼M9
1. In respect of any measure which may give rise to expenditurechargeable to the budget, the authorizing officer must draw up inadvanceaproposalforcommitmentandmaynotenterintoanylegallybindingcommitmentwiththirdpartiesuntilthefinancialcontrollerhasgiven approval. A provisional commitment may be entered into inrespect of routine expenditure.
▼
M12
2. Without prejudice to Article 99, the decisions taken by theCommission in accordance with the provisions authorising it to grantfinancial aid from the various funds or similar operations shall consti-tute commitments of expenditure. Unless these decisions stipulate adifferent time limit for implementation in accordance with the above-mentioned provisions, these commitments shall cover the total cost ofthecorrespondingindividuallegalcommitmentsupto31Decemberofyear n+1.
During the period of implementation referred to in the first subpara-
graph, the conclusion of each individual legal commitment shall beregisteredbytheauthorisingofficerinthecentralaccountsandbookedto the commitment referred to in the first subparagraph.
The unused balance shall be released after the time limit for imple-
mentation is laid down. However, this paragraph shall apply neither tothe Structural Funds nor to the Cohesion Fund.
3. The procedure for implementing paragraphs 1 and 2 shall ensure
that an exact account is kept of commitments and authorisations intermsofactualneedsand,asregardsparagraph2,thatthespecificlegalcommitments correspond to the overall budget commitment providedforbytheCommissiondecision.Theprocedureshallbedeterminedbythe implementing rules provided for in Article 139.
▼
M5
Article 37
Without prejudice to the provisions of Article 23, in each institution,
proposalsforcommitments,accompaniedbythesupportingdocuments,shall be transmitted to the financial controller and to the accountingofficer: they shall show, in particular, the purpose of the expenditure,theestimatedamountinvolved,indicatingthecurrencywherepossible,the budget item to which it is to be charged and also the name anddescriptionofthecreditor;theyshallberegistered,afterapprovalbythefinancialcontroller,inaccordancewiththeimplementingrulesprovidedfor in►
M8Article 139 ◄.
▼M12
The proposals for commitments referred to in Article 36(1) and theproposals for individual legal commitments referred to in the secondsubparagraph of Article 36(2) may be subject to spot checks. Suchchecksshallbecarriedoutunderasystemwhichidentifiesrisksectors,inwhichthereisahighprobabilitythattheconditionssetoutinArticle38(1) will not be fulfilled. Individual commitments shall be checkedsystematically in risk sectors.
1977X1231 — EN — 01.01.2000 — 001.002 — 29
▼B
Article►M5 38◄
►M51.◄The purpose of the approval of proposals for commit-
ments of expenditure given by the financial controller shall be toestablish that:
▼
M9
(a) the proposal for commitment has been presented in compli-
ance with Article 36 (1);
▼B
►M9(b)◄the expenditure has been charged to the correct item in
the budget;
►M9(c)◄the appropriations are available;
►M9(d)◄the expenditure is in order and conforms to the relevant
provisions, in particular of the budget and the Regula-tions, and of all Acts made in implementation of theTreaties and of the Regulations;
▼
M5
►M9(e)◄theprinciplesofsoundfinancialmanagementreferredto
in Article 2 have been applied.
2. Approval may not be conditional.
▼B
►M53.◄The procedures for implementing this Article shall be
determined by the implementing measures provided for in►
M8Article 139 ◄.
Article►M5 39◄
The financial controller may withhold his approval if he considers that
theconditionslaiddownin ►M5Article38(1) ◄arenotmet.Ifhe
withholdshisapprovalheshallmakeawrittenstatement,statingthefullreasons therefor. The authorizing officer shall be notified accordingly.
▼
M12
Caseswhereapprovaliswithheldandtheauthorisingofficermaintainshisproposalshallbereferredforadecisiontothesuperiorauthorityofthe competent institution among those listed in Article 22(1) and (2)within two months of the date of the decision to withhold approval.
Exceptwheretheavailabilityoftheappropriationsisindoubt,thesaid
superior authority may, by a decision stating the full reasons therefor,taken on its sole responsibility, overrule such a refusal. This decisionshall be final and binding with effect from the date on which approvalwaswithheld.Itmustbetakenby15Februaryofyearn+1.Itshallbecommunicated for information to the financial controller. The superiorauthority of each institution shall inform the Court of Auditors of allsuch decisions within one month. The Court of Auditors shall reportannually to the Parliament and the Council, within the context of thedischarge procedure, on the consequences of the decision to overrule,from the point of view of the legality of, or non-compliance with, adirective as regards public works or service contracts.
▼
B
2. Validation of expenditure
Article►M5 40◄
Validation of expenditure is the act whereby the authorizing officer
shall:
1977X1231 — EN — 01.01.2000 — 001.002 — 30
▼B
— verify the existence of the creditor’s claim,
— determine or verify the existence and the amount of the sum due,— verify the conditions under which payment falls due.
Article►
M5 41◄
1. Validationofanyexpenditureshallbesubjecttothesubmissionof
supporting documents showing the creditor’s claim and the servicerenderedortheexistenceofadocumentjustifyingpayment.Theimple-mentingmeasuresprovidedforin ►
M8Article139 ◄shalllaydown
thenatureandthecontentsofthesupportingdocumentstobeenclosedwith the payment order.
►
M5 ◄
►M52.◄Theauthorizingofficerempoweredtovalidateexpendi-
ture shall personally check the supporting documents or shall, on hisown responsibility, ascertain that this has been done.
Article►
M5 42◄
Remuneration and allowances shall be validated in accordance with
collective statements drawn up by the department in charge ofpersonnel, except where individual validation is necessary.
3. Authorization of expenditure
Article►M5 43◄
Authorizationistheactwherebytheauthorizingofficer,bytheissueof
a payment order, instructs the accounting officer to pay an item ofexpenditure which he has validated.
Article►
M5 44◄
The payment order shall state:— the financial year against which the payment shall be charged,
— the budget article and any other subdivision that may apply,
▼
M5
— the amount to be paid (in figures and words), expressed in
►M13euro◄or in national currency . ►M12However, when
payment orders are sent to the banks by means of computerisedprocedures, the amount need not be expressed in words, ◄
▼
B
— the name and address of the payee,— the purpose of the expenditure,— the method of payment, wherever possible.
Thepaymentordershallbedatedandsignedbytheauthorizingofficer.
Article►
M5 45◄
The payment order shall be accompanied by the original supporting
documents, as determined by the implementing measures provided forin►
M8Article139 ◄.Thosedocumentsshallbecertifiedinrespect
of—oraccompaniedbyacertificateconfirming—thecorrectnessoftheamountstobepaid,thereceiptofthesuppliesandtheperformanceoftheservicetogetherwith,ifappropriate,theentryofthegoodsintheinventories referred to in ►
M5Article 65 ◄.
Thepaymentordershallshowthenumbersoftherelevantapprovalsof
commitment. Copies of supporting documents, certified as true copiesbytheauthorizingofficer,may,insomecases,beacceptedinplaceofthe originals.
Article►
M5 46◄
▼M5
1. The authorizing officer may make payments by instalment in
1977X1231 — EN — 01.01.2000 — 001.002 — 31
▼M5
accordancewiththerulesgoverningthepolicyconcernedorinaccord-ance with contractual provisions.
Where this occurs, the first payment order shall be accompanied by
documents establishing the creditor’s claim to payment of the instal-ment in question. Subsequent payment orders shall refer to thesupporting documents already furnished, and repeat the referencenumber of the first payment order.
▼
M12
The decision to authorise the balance shall be adopted within the timelimit laid down in Article 1(7).
▼
B
►M52.◄The authorizing officer may grant advances to
personneliftheStaffRegulationsoraprovisionlaiddownbyRegula-tion specifically provide therefor.
The authorizing officer may grant advances to cover disbursements to
be effected by an official or other members of staff on behalf of hisinstitution. The implementing conditions for this subparagraph shall bedetermined by the implementing measures provided for in►
M8Article 139 ◄.
Apartfromtheimprestaccountsreferredtoin ►M5Article54 ◄,no
advance may be paid unless it has been approved beforehand by thefinancial controller.
Article►
M5 47◄
▼M5
WithoutprejudicetotheprovisionsofArticle23,paymentordersshallbe sent for prior approval to the financial controller.
▼
B
The purpose of this prior approval shall be to establish that:
(a) the payment order was properly issued;
▼M5
(b) the payment order agrees with the commitment of expenditure and
that the amount thereof is correct, taking account of the principlesand requirements of sound financial management referred to inArticle 2;
▼
B
(c) the expenditure is charged to the correct item in the budget;
(d) the appropriations are available;
(e) the supporting documents are in order;
(f) the payee is correctly named and described.
▼M12
Priorapprovalmaybegivenonthebasisofaspotcheck;thisshallbecarriedoutunderasystemwhichidentifiesrisksectors,inwhichthereisahighprobabilitythattheconditionssetoutinthesecondparagraphwillnotbefulfilled.Paymentordersshallbecheckedsystematicallyinrisk sectors.
▼
B
Article►M5 48◄
Should approval be refused, ►M5Article 39 ◄shall apply.
Article►M5 49◄
Thedetailedrulesforthepaymentofanyinterestowedbyrecipientsof
Community aid in the event of recovery of undue payments to theCommunity shall be determined by the implementation provisions laiddownin►
M8Article139 ◄,withoutprejudicetoanyprovisionslaid
down in the basic sectoral acts relating to Community policies.
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▼B
Article►M5 50◄
After approval, the original of the payment order, together with all
supporting documents, shall be forwarded to the accounting officer.
4. Payment of expenditure
Article►M5 51◄
Payment is the final action whereby the institution concerned is
discharged of its obligations towards its creditors.
Paymentshallbemadebytheaccountingofficerwithinthelimitsofthe
funds available.
In the event of a substantive error or of the validity of the discharge
being contested or of failure to observe the formalities prescribed bythisFinancialRegulation,theaccountingofficershallsuspendpayment.
Article►
M5 52◄
If payment is suspended, the accounting officer shall give the reasons
forhisdecisioninawrittenstatementwhichheshallsendforthwithtothe authorizing officer and, for information, to the financial controller.
Exceptwherethevalidityofthedischargeiscontested,theauthorizing
officer may place the matter before the authority appointed by theinstitution in the manner laid down in the rules of procedure of thatinstitution. The said authority may require, in writing, and on its ownresponsibility, that payment be effected.
Article►
M5 53◄
Payments shall be effected as a general rule through a bank or post
office giro account.
Theprocedureforopening,administeringandusingsuchaccountsshall
be determined by the implementing measures provided for in►
M8Article 139 ◄. These measures shall, in particular, indicate
expenditurethepaymentofwhichmustnecessarilybeeffectedeitherbycheque or by post office or bank transfer order, and shall receive thejointsignatureonchequesandonpostofficeorbanktransferordersoftwodulyauthorizedofficials,onesignaturenecessarilybeingthatoftheaccounting officer, an assistant accounting officer, or an administratorof an imprest account.
5. Imprests
Article►M5 54◄
►M91.◄For the payment of certain categories of expenditure,
imprest accounts may be set up in accordance with the implementingmeasures provided for in ►
M8Article 139 ◄.
▼M5
Onlytheaccountingofficermayreplenishtheimprestaccounts,saveinexceptionalcasesdefinedintheimplementingrulesofthisRegulation.
▼
B
These measures shall contain specific provisions concerning in partic-ular:
— the appointment of administrators of imprest accounts,
— thenatureandmaximumamountofeachitemofexpendituretobe
incurred,
— the maximum amount of the imprest which may be advanced,— the time within which supporting documents must be produced,— the responsibility of the administrators of imprest accounts.
▼
M9
2. Expenditureinvolvingpaymentsmadenotlaterthan31December
1977X1231 — EN — 01.01.2000 — 001.002 — 33
▼M9
undertheimprestaccountsmaybebookedtotheaccountsforthatyear
up to 15 February of the following year.
▼M5
SECTIONIV
MANAGEMENT OF POSTS
Article 55
1. Within each institution the following shall be established:
(a) afileidentifyingthepostsandcontainingajobdescriptionforeach
category A post;
(b) an organization chart showing the organization of the departments
detailing the tasks of each administrative unit.
2. Ifthenote‘tobeabolished'isplacedagainstapostinthebudget,
it may no longer be filled when the next vacancy arises in the samecareer.
▼
B
TITLE IV
CONCLUSION OF CONTRACTS, INVENTORIES, ACCOUNTANCY
▼M5
SECTIONI
CONTRACTS FOR THE SUPPLY OF GOODS AND SERVICES;
CONTRACTS FOR PURCHASE, LEASE AND HIRE
▼M8
Article 56
Whenconcludingcontractsforwhichtheamountinvolvedisequaltoor
greaterthanthethresholdprovidedforbytheCouncildirectivesonthecoordinationofproceduresfortheawardofpublicworks,suppliesandservices contracts, each institution shall comply with the same obliga-tions as are imposed upon bodies in the Member States by thosedirectives.
The implementing measures provided for in Article 139 shall include
appropriate provisions to that end.
Article 57
Articles58,59and60shallapplytocontractsotherthanthosereferred
to in Article 56.
▼
B
Article►M8 58◄
▼M5
1. Contractsforthepurchaseorhiringofbuildingsorgoods,fortheprovisionofservicesorfortheperformanceofconstructionworkshallbeinwriting.Apartfromcontractsrelatingtothepurchaseofabuildingalready constructed or to the leasing of a building, all such contractsshall be concluded after an invitation to tender has been issued►
M8 ◄.
However,contractsmaybemadebyprivatetreatyinthecircumstances
referred to in ►M8Article 59 ◄.
Contractsmaybemadeagainstinvoiceorbillofcostsincasesprovided
for in►M8Article 60 ◄.
▼B
2. Invitations to tender shall, as a general rule, be publishedthroughout all the Member States, and, where appropriate, in thirdcountries,totheextenttowhichthisiscompatiblewithdevelopmentofindustries in the Communities. However, their publication may be
1977X1231 — EN — 01.01.2000 — 001.002 — 34
▼B
restricted where the goods or services, because of their size or nature,are not fit subjects for a general invitation to tender.
▼
M8
3. TenderingproceduresandselectionandawardcriteriashallbelaiddownandgovernedbythedetailedimplementingrulesprovidedforinArticle 139, on the understanding that these criteria shall be laid downby analogy with those provided for in the directives referred to inArticle56. ►
M12Thetenderer’soffermustfromtheoutsetcontainall
the essential elements required in the invitation to tender, subject tobeing considered inadmissible. The implementing arrangements set outinArticle139shallapplyforthepurposeofestablishingthecriteriaforidentifying the essential elements of the tender. ◄
4. The price revision procedures following the conclusion of
contractsshallbegovernedbytheimplementingmeasuresprovidedforin Article 139.
Article 59
Contracts may be made by private treaty:
(a) within the limit laid down in the detailed implementing rules
provided for in Article 139 for the purchase or hiring of supplies,furniture and equipment, for the provision of services or forbuilding works;
(b) wherethepurchaseorhiringofgoods,theprovisionofservicesor
theconstructionworksaresourgentlyneededthatitisnotpossibletowaitforoneofthetenderingproceduresspecifiedinArticle58tobe carried out;
(c) where the automatic public tendering or discretionary tendering
proceduresdonotgiveanyresultorwherethepricesquotedarenotacceptable;
(d) where for technical, practical or legal reasons the supply of goods
or services can only be carried out by a particular contractor orsupplier;
(e) for contracts for the supply of goods and services or for ancillary
works which, technically, cannot be separated from the maincontract.
The institution concerned is bound, however, as far as possible and by
allappropriatemeans,toenablesuppliersorcontractorswhoarelikelyto be able to supply the goods and services in question to compete,except in the cases referred to in (d) and (e).
▼
M5
Article►M8 60◄
Contracts may be made against invoice or bill of costs where the
estimated value of the goods, services or works does not exceed thelimits laid down by the implementing rules provided for in►
M8Article 139. ◄
▼M8
Article 61
Articles62to64ashallapplytotheawardofcontractsforthepurchase
orhiringofgoods,furnitureorequipment,fortheprovisionofservicesor for the performance of works.
▼
B
Article►M8 62◄
In respect of contracts entered into by the Communities, there shall be
no discrimination between nationals of Member States on grounds ofnationality.
1977X1231 — EN — 01.01.2000 — 001.002 — 35
▼M5
Article►M8 63◄
In each institution, before the authorizing officer takes a decision,
contracts involving sums exceeding an amount specified in the imple-mentingrulesprovidedforin ►
M8Article139 ◄shallbesubmitted
for the opinion of an Advisory Committee on procurements andcontracts.
If required, an Advisory Committee on procurements and contracts
common to all the institutions may be set up.
Details of the operation of these committees shall be laid down in the
implementing rules provided for in ►
M8Article 139 ◄.
▼B
Article►M8 64◄
The Advisory Committee referred to in ►M8Article 63 ◄shall
include at least one representative of the department responsible foroveralladministration,onerepresentativeofthedepartmentresponsiblefor finance and one representative of the department responsible forlegalmatters;arepresentativeofthefinancialcontrollershallbepresentas observer.
The Committee shall deliver an opinion as to whether the procedure
followedisinorder,on ►
M8selectionoftenderer ◄and,ingeneral,
on the proposed terms of the contract.
Any other problem concerning the matter forming the subject of this
Title may be referred to the said Committee for an opinion.
Article►M8 64a◄
By way of guarantee of the performance of the contracts, suppliers or
contractorsmayberequiredbyawarrantyclausetomakeapreliminarydeposit in accordance with the implementing measures provided for in►
M8Article 139 ◄.
The amount of the deposit shall be fixed:— according to the usual trade terms of contracts for supplies,
— according to the special conditions governing building contracts.
▼
M5
Beyond the limit laid down by the implementing rules provided for in►
M8Article 139 ◄, the provision of security shall be obligatory
►M8for works contracts ◄. A guarantee may be retained until final
acceptance.
▼B
Whereacontracthasnotbeencarriedoutorcompletionhasbeenlate,the institution shall ensure that it is adequately compensated in respectofalldamages,interestandcostsbythedeductionoftheamountfromthe deposit, whether this has been lodged directly by the supplier orcontractor, or by a third party.
SECTIONII
INVENTORIES OF MOVABLE AND IMMOVABLE PROPERTY
▼M5
Article 65
Permanent inventories showing the quantity and value of all movable
andimmovablepropertybelongingtotheCommunitiesshallbekeptinaccordance with a model drawn up by the Commission. Only movablepropertyexceedingaspecificvaluelaiddownintheimplementingrulesprovided for in ►
M8Article 139 ◄shall be entered in those inven-
tories.
Each institution shall carry out its own inspection to ascertain that
entries in the inventory correspond to the facts, in accordance with theimplementing rules provided for in ►
M8Article 139 ◄.
1977X1231 — EN — 01.01.2000 — 001.002 — 36
▼M12
The inventory system shall be established by the authorising officerwith the technical assistance of the accounting officer. This inventorysystem, which shall be administered by the authorising officer, shallprovidethecentralsystemofaccountswithalltheappropriateinforma-tion needed to draw up the institution’s balance sheet.
The institutions shall each adopt, for their own purposes, provisions
relating to the keeping of the equipment recorded in their respectivebalancesheetsandshalldeterminethedepartmentsresponsibleforthistask.
▼
B
Article►M5 66◄
Thesaleofmovablepropertyshallbesuitablyadvertisedinaccordance
withtheimplementingmeasuresprovidedforin ►M8Article139 ◄.
Apart from sales by public auction, officials and other servants of the
institutions may not acquire any movable property resold by the saidinstitutions.
Article►
M5 67◄
Astatementorrecordshallbedrawnupbytheauthorizingofficerand
authenticated by the financial controller whenever any property in theinventoryis ►
M5sold,givenawayfreeofcharge ◄,scrapped,hired
out, or missing on account of loss, theft or any other reason.
The statement or record shall refer in particular to any obligation that
maydevolveonanofficialorotherservantoftheCommunitiesoranyother person to replace the item in question.
Immovable property or large installations, which are made available
withoutcharge,shallgiverisetotheconclusionofcontractssubmittedto the financial controller for approval and shall be the subject of anannual communication to the European Parliament and the Councilwhen the preliminary draft budget is submitted.
Article►
M5 68◄
All acquisitions of movable or immovable property as defined in
►M5Article65 ◄shall,beforepayment,beenteredinthepermanent
inventories.
That entry shall be recorded in the corresponding invoice or annexed
document drawn up with a view to payment of the expenditure.
SECTIONIII
ACCOUNTS
Article►M5 69◄
The accounts shall be kept in ►M13euro◄by the double entry
method,onthebasisofthecalendaryear.Theyshallshowallrevenueand expenditure for the financial year. They shall be authenticated bysupporting documents. The revenue and expenditure account and thebalance sheet shall be drawn up ►
M5in►M13euro◄◄.
▼M5
Article 70
The chart of accounts shall make a clear distinction between
►M12expenditure and revenue ◄accounts and cash accounts.
It shall comprise of two parts:
▼M12(a) accounts of expenditure and revenue, subdivided into two separate
subcategories:
1977X1231 — EN — 01.01.2000 — 001.002 — 37
▼M12
— accounts of budgetary expenditure and revenue, which allow
implementation of the budget to be monitored and the balancefor the financial year to be determined,
— accounts of non-budgetary expenditure and revenue, which
complementthepreviousaccountsandcanbeusedtoproduceabroader accounting result;
▼
M5
(b) thebalancesheetaccounts,whichdisclosetheassetsoftheinstitu-
tions.TheseaccountsshallshowtheexpectedeffectoftheCommu-nities’ legal obligations.
Thedetailedconditionsfortheestablishmentandoperationofthechart
of accounts for transactions relating both to assets and to the imple-mentationofthebudgetshallbedeterminedbytheimplementingrulesprovided for in ►
M8Article 139 ◄.
The accounts shall make it possible to draw up an annual balance of
assets and a monthly statement of revenue and expenditure by chapterand article.
These statements shall be forwarded to the financial controller, the
authorizing officer and the Court of Auditors.
▼
M12
Article 70a
Therulesfortheentryintheaccountsofthedepreciationofassetsand
the rules for writing down the value of assets and for constitutingprovisions shall be determined by the implementing rules provided forin Article 139.
▼
B
Article►M5 71◄
Except for the advances referred to in ►M5Article 99 ◄, any
advance, other than regular advances which are periodicallyre−examined,shall be entered in a suspense account and settled at thelatest during the financial year which follows the payment of thisadvance.
However,theadvancesreferredtoin ►
M5thesecondsubparagraphof
Article 46 (2) ◄shall be settled as a general rule within six weeks
following completion of the project for which they were granted.
Article►M5 72◄
►M91.◄Theaccountsshallbeclosedattheendofthefinancial
yeartoenableabalancesheetoftheCommunitiesandtherevenueandexpenditureaccountreferredtoinTitleVItobedrawnup.Therevenueand expenditure account shall be submitted to the financial controller.
▼
M9
2. Any operation after the end of the financial year which, withoutaffecting the Community’s financial position, is necessary for a full,trueandfairpresentationofthefinancialstatementsmaybeeffectedupto the date of closure of the accounts, without prejudice to Article 6.
▼
B
TITLE V
RESPONSIBILITIES OF AUTHORIZING OFFICERS, FINANCIAL
CONTROLLERS, ACCOUNTING OFFICERS AND ADMINISTRATORS
OF ADVANCE FUNDS
Article►M5 73◄
Authorizing officers who, when establishing entitlements to be recov-
eredorissuingrecoveryorders,enteringintoacommitmentofexpendi-ture or signing a payment order do so without complying with thisFinancial Regulation and the rules for its implementation, shall renderthemselves liable to disciplinary action and, where appropriate, topaymentofcompensation.Thesameshallapplyiftheyomittodrawup
1977X1231 — EN — 01.01.2000 — 001.002 — 38
▼B
a document establishing a debt or if they neglect to issue recoveryorders or are, without justification, late in issuing them. ►
M5The
same shall apply if they neglect to issue the payment orders or are,withoutjustification,lateinissuingthem,therebyrenderingtheinstitu-tion liable to civil action by third parties. ◄
Article►
M5 74◄
Financialcontrollersshallrenderthemselvesliabletodisciplinaryaction
and, where appropriate, to payment of compensation for any actiontaken during their term of office; in particular, by granting theirapproval in excess of the budgetary appropriations.
Article►
M5 75◄
1. Accounting officers and assistant accounting officers shall render
themselves liable to disciplinary action and, where appropriate, topayment of compensation as regards payments made by them in disre-gard of the ►
M5third subparagraph of Article 51 ◄.
They shall render themselves liable to disciplinary action and to
payment of compensation as regards any loss or deterioration of themonies,assetsanddocumentsintheirchargewheresuchlossordeteri-orationresultfromanintentionalmistakeorseriousnegligenceontheirpart.
Under the same conditions, they shall be responsible for the correct
execution of orders received by them in respect of the use and theadministration of bank and post office giro accounts, and in particular:
(a) wheretherecoveriesorpaymentsmadebythemdonotagreewith
the amounts on the corresponding recovery or payment orders;
(b) wheretheyeffectpaymenttoapartyotherthanthepayeeentitled.
2. Administratorsofadvancefundsshallrenderthemselvesliableto
disciplinaryactionand,whereappropriate,topaymentofcompensationin the following cases:
(a) where they cannot show due warrant with proper documents for
payments made by them;
(b) where they effect payments to parties other than entitled payees.
Theyshallbeliabletodisciplinaryactionandtopaymentofcompensa-
tion in respect of any loss or deterioration of the monies, assets anddocumentsintheirchargewheresuchlossordeteriorationresultsfroman intentional mistake or serious negligence on their part.
3. Theaccountingofficer,assistantaccountingofficersandadminis-
tratorsofadvancefundsshallinsurethemselvesagainsttherisksarisingunder this Article.
Theinstitutionshallcovertheinsurancecostsrelatingtheretoinaccord-
ance with the implementing measures provided for in ►
M8Article
139◄.
►M54.◄A special allowance is granted in each of the institu-
tionstotheaccountingofficer,assistantaccountingofficersandadmin-istrators of advance funds. The sums corresponding to this allowanceshallbecreditedeachmonthtoanaccountopenedbytheinstitutiononbehalf of each official in order to establish a guarantee fund for thepurpose of covering any cash or bank shortage for which the personconcernedmightrenderhimselfliable,insofarassuchshortageshavenot been covered by refunds from insurance companies.
Thecreditbalanceintheseguaranteeaccountsshallbepaidovertothe
personsconcernedwhentheyterminatetheirappointmentasaccountingofficer, assistant accounting officer or administrator of advance funds.
►
M55.◄The implementing measures provided for in
►M8Article 139 ◄shall specify the categories of officials or other
servantsqualifiedtobeappointedaccountingofficersoradministratorsof advance funds.
1977X1231 — EN — 01.01.2000 — 001.002 — 39
▼M12
Article 76
The liability of authorising officers, financial controllers, accounting
officers, assistant accounting officers and administrators of advancefundstodisciplinaryactionand,ifnecessary,paymentofcompensationmaybedeterminedinaccordancewiththeprovisionsofArticles22and86to89oftheStaffRegulationsofofficialsoftheEuropeanCommuni-ties.
Allrelevantdataorinformation,includinganyreportsandwithholdings
of approval by the financial controller, shall be communicated to theauthority empowered to initiate the procedure concerning disciplinaryand financial responsibility.
▼
B
Article►M5 77◄
Each institution shall be allowed a period of two years from the date
when the account for revenue and expenditure is submitted, to take adecisiononthefinaldischargetobegiventoaccountingofficersforthetransactions relating thereto.
TITLE VI
PRESENTING AND AUDITING ACCOUNTS
Article►M5 78◄
▼M5
The Commission shall draw up, not later than 1 May of the followingyear, a consolidated revenue and expenditure account of the generalbudget of the European Communities for the financial year ended 31December. The consolidated revenue and expenditure account shallinclude:
1. a table of revenue comprising:
— estimated revenue for the financial year,
— amendments to the revenue estimates as a result of supplemen-
tary or amending budgets and additional revenue as specified inthe second subparagraph of Article 4 (2),
— entitlements established in the course of the financial year,— entitlements still to be collected from the preceding financial
year,
— revenue collected during the financial year and revenue carried
over pursuant to Article 7 (4),
— amounts still to be collected at the end of the financial year,— the cancellation of established entitlements.
Statementsshallbeattachedtothistableshowingrevenuecarriedover
pursuanttoArticle7(4)and,whereappropriate,thebalancesandgrossamounts of the operations referred to in Article 27 (2).
Astatementshouldalsobeattachedgivingabreakdown,byaMember
State,oftheamountsstilltobecollectedattheendofthefinancialyearcorresponding to own resources covered by a recovery order;
▼
B
2. tablesshowingthemovementinappropriationsforthefinancialyear
and,bydistinguishingbetweencommitmentappropriations,paymentappropriations and non−differentiated appropriations, indicating:
— the initial appropriations,
— any amendments introduced by means of supplementary or
amending budgets,
— any amendments to appropriations introduced by means of
transfer,
1977X1231 — EN — 01.01.2000 — 001.002 — 40
▼B
— the final appropriations for the financial year,
▼M4
— appropriations carried over under ►M5Article 7 ◄;
▼B
3. tablesshowingtheuseoftheappropriationsallocatedforthefinan-
cialyearand,bydistinguishingbetweenappropriationcommitments,payment commitments and non−differentiated appropriations, indi-cating:
— the commitments entered into and chargeable to the financial
year,
— the payments made and chargeable to the financial year,— the settlement of the commitments of the financial year and the
calculation of the sums still to be paid at the close of thatfinancial year,
▼
M4
— the commitment appropriations and payment appropriations
carried over under ►M5Article 7 ◄,
▼B
— the non−dissociated appropriations carried over in accordance
with►M5Article 7 ◄,
— cancelled appropriations.
Where appropriate, a statement shall be attached to this table showing
the balances and gross payments arising from the transactions referredto in►
M5Article 27 (2) ◄;
4. tablesshowingtheuseoftheappropriationsavailablefromprevious
financial years and indicating:
▼M4
— the amount of appropriations carried over, a distinction being
made between commitment appropriations, payment appropria-tions and non−differentiated appropriations,
▼
B
— the commitments entered into and chargeable to available
commitment appropriations,
— the payments made from payment appropriations and
non−differentiatedappropriations which have been carried over,
— thesettlementofsumsstilltobepaidatthecloseoftheprevious
financial year and the calculation of the sums still to be paid atthe end of the current financial year,
▼
M4
▼B
— the amount unused and maintained for the following financial
year,
▼M5
— foreachfinancialyearforwhichtheaccountshavebeenclosed,
abreakdown,byitemandbyMemberState,showingtheimpactof clearance decisions during the financial year and using thebudgetary nomenclature of the relevant financial year;
▼
B
5. annexed shall be a document showing capital operations and debt
management, indicating:
— the total amount of loans approved,
— the total amount of the repayments made on borrowings
contracted and of the charges on such borrowings,
— the amount of borrowings contracted,— the total amount of repayments of capital and payments of
interest made on loans granted.
1977X1231 — EN — 01.01.2000 — 001.002 — 41
▼M12
Article 79
Each institution shall, not later than 1 March, transmit to the Commis-
sion, after submitting them to its financial controller, the informationrequired for drawing up the revenue and expenditure account and thebalancesheetandacontributiontotheanalysisofthefinancialmanage-ment referred to in Article 80.
▼
M5
Article 80
1. The revenue and expenditure account shall cover all revenue and
expendituretransactionsrelatingtotheprecedingfinancialyearforeachinstitution. It shall be submitted in the same form and following thesame subdivision as the budget.
2. The revenue and expenditure account shall be preceded by an
analysisofthefinancialmanagementinrespectoftheyearinquestion.
Forthedrawingupofthisanalysis,eachinstitutionshallsupplydetails
on the realization of the principles and objectives as referred to inArticle 2.
Article 81
1. The Commission shall draw up, not later than 1 May, a consol-
idatedbalancesheetofassetsandliabilitiesoftheCommunitiesasat31December of the preceding financial year. A statement showing themovements and balances of the accounts at the same date shall beattached thereto.
The balance sheet shall include, on the assets side, the amount of
revenue to be collected and, on the liabilities side, the amount ofexpenditure chargeable to the financial year, which have not yet beenentered in the accounts.
2. These documents shall be submitted to the financial controller.
▼
B
Article►M5 82◄
TheCommissionshallforwardtherevenueandexpenditureaccount,the
financialanalysisandthebalancesheettotheEuropeanParliament,theCouncil and the Court of Auditors by ►
M51 May◄at the latest.
▼M5
Article 83
1. The Court of Auditors and its members may, in carrying out the
taskoftheCourt,beassistedbyofficersoftheCourt.TheCourtitselfor one of its members shall notify the authorities with which thedelegated office is to work on the tasks delegated to him.
2. The European Parliament, the Council and the Commission shall
inform the Court of Auditors, as soon as possible, of all decisions andrules taken pursuant to Articles 4 (3), 7 (2), (3) and (6), 9, 17 (1) and26.
3. TheinstitutionsshalltransmittotheCourtofAuditorsanyrulesof
procedure they adopt in respect of financial matters.
4. The Court of Auditors shall be informed of the appointment of
authorizing officers, financial controllers, accounting officers andadministrators of imprest accounts and of the acts of delegation orappointment under Articles 22, 24, 25 and 54.
▼
B
Article►M5 84◄
Each institution shall forward to the Court of Auditors every three
monthsandatthelatestwithinthemonthwhichfollowstheendofthequarter, and, in the case of the fourth quarter, at the latest within themonth which follows the close of the financial year, the documents
1977X1231 — EN — 01.01.2000 — 001.002 — 42
▼B
supporting the accounts, in particular the documents and certificates inrespect of the correct application of the provisions which govern theimplementation of the budget and relating to commitments andpayments, to the establishment and collection of revenue, subject to►
M5Article 18 of Council Regulation (EEC, Euratom) No 1552/89
and to Article 85 of this Financial Regulation. ◄The Court of Audi-
torsmayquestioneachinstitutiononthesubjectofthesaidsupportingdocuments.
▼
M5
Article 85
TheauditcarriedoutbytheCourtofAuditorsshallbebasedonrecords
and, if necessary, performed on the spot. Its purpose shall be to estab-lishthatallrevenuehasbeenreceivedandallexpenditureincurredinalawful and proper manner having regard to the provisions of the Trea-ties, the budget, the Financial Regulations and all other Acts adoptedpursuant to the Treaties, and that the financial management has beensound.
For the performance of its task, the Court of Auditors shall be entitled
toconsult,inthemannerprovidedforinArticle87,alldocumentsandinformationrelatingtothefinancialmanagementofthedepartmentsorbodies subject to its inspection; it has the power to make enquiries ofany official responsible for a revenue or expenditure operation, and touse any of the auditing procedures appropriate to those departments orbodies.
TheCourtofAuditors,inordertoobtainallthenecessaryinformation
for the performance of the task entrusted to it by the Treaties and theActstakentoimplementthem,maybepresent,atitsrequest,duringtheoperationscarriedoutbytheCommissioninimplementationofArticles8 and 9 of Regulation (EEC) No 729/70 and Articles 17 and 18 ofRegulation(EEC,Euratom)No1552/89.Thismeasureshallalsoapplyto the inspection of any fund set up by the Communities.
AttherequestoftheCourtofAuditors,eachinstitutionshallauthorize
finance organizations holding Community deposits to enable the Courtto ensure that external data tally with the accounts.
▼
B
Article►M5 86◄
The Court of Auditors shall ensure that all securities and cash on
depositorinhandarecheckedagainstvoucherssignedbythedeposita-ries or against official memoranda of cash and securities held. TheCourt may carry out such checks itself.
Article►
M5 87◄
The Commission and the other institutions shall afford the Court of
AuditorsallthefacilitiesandgiveitalltheinformationwhichtheCourtmay consider necessary for the performance of its task, and shall inparticularprovidealltheinformationobtainedasaresultofthecheckswhich they have carried out, as required by the rules laid down by theCommunity,withinthedepartmentsresponsibleforthemanagementoftheCommunities’financesandforeffectingexpenditureontheirbehalf.Inparticular,theyshallplaceatthedisposaloftheCourtofAuditorsalldocuments concerning the conclusion and implementation of contractsand all accounts of cash or materials, all accounting records orsupporting documents, and also administrative documents pertainingthereto, all documents relating to revenue and expenditure, all inven-tories,alllistsofpostsinthedepartments,whichtheCourtofAuditorsmay consider necessary for auditing the revenue and expenditureaccountonthebasisofrecordsoronthespot ►
M5andalldocuments
and data created or sorted on a magnetic medium ◄.
Tothisend,theofficialswhoseoperationsarecheckedbytheCourtof
Auditors shall in particular:
1977X1231 — EN — 01.01.2000 — 001.002 — 43
▼B
(a) show their records of cash in hand, any other cash, securities and
materialsofallkinds,andalsothesupportingdocumentsinrespectoftheirstewardshipofthefundswithwhichtheyareentrusted,andalso any books, registers and other documents relating thereto;
(b) presentthecorrespondenceandanyotherdocumentrequiredforthe
full implementation of the audit referred to in ►
M5the first
subparagraph of Article 85 ◄.
Theinformationsuppliedunder(b)mayberequestedonlybytheCourt
of Auditors.
The Court of Auditors shall be empowered to audit the documents in
respect of the revenue and expenditure of the Communities which areheld by the departments of the institutions and, in particular, by thedepartments responsible for decisions in respect of such revenue andexpenditure.
The task of establishing that the revenue has been received and the
expenditureincurredinalawfulandpropermannerandthatthefinan-cial management has been sound, includes the utilization by bodiesoutside the institutions of Community funds received by way of aid.
▼
M5
The grant of Community funds to beneficiaries outside the institutionsshallbesubjecttotheagreementinwritingbytherecipientstoanauditbeing carried out by the Court of Auditors on the utilization of theamounts granted.
Article 88
The annual report of the Court of Auditors provided for ►
M8in
Article 45c of the ECSC Treaty, Article 188c of the EC Treaty andArticle 160c of the Euratom Treaty ◄shall be governed by the
following provisions:
1. The Court of Auditors shall transmit to the Commission and the
institution concerned, by 15 July at the latest, any comments whichare, in its opinion, of such a nature that they should appear in theannual reports. These comments must remain confidential. Eachinstitution shall address its reply to the Court of Auditors by 31October at the latest. The replies of the institution other than theCommission shall be sent simultaneously to the Commission.
2. The annual report shall contain an assessment of the soundness of
financial management.
3. Without prejudice to any summary report or general comments
which the Court of Auditors may see fit to make, the annual reportshall include a section for each institution.
TheCourtshalltakeallnecessarystepstoensurethattherepliesof
eachinstitutiontoitscommentsarepublishedimmediatelyfollowingthose comments.
4. TheCourtofAuditorsshalltransmittotheauthoritiesresponsiblefor
givingdischargeandtotheotherinstitutions,by30Novemberatthelatest, its annual report accompanied by the replies and it shallensure publication thereof in the Official Journal of the European
Communities.
▼
M8
Article 88a
AtthesametimeastheannualreportreferredtoinArticle88,theCourt
ofAuditorsshallprovidetheEuropeanParliamentandtheCouncilwitha statement of assurance as to the reliability of the accounts and thelegality and regularity of the underlying transactions.
Article 89
1. The European Parliament, upon a recommendation from the
Council acting by a qualified majority, shall, before 30 April of the
1977X1231 — EN — 01.01.2000 — 001.002 — 44
▼M8
following year, give a discharge to the Commission in respect of the
implementation of the budget.
2. To this end the European Parliament shall, after the Council has
done so, examine the accounts and financial statements mentioned inArticle 78d of the ECSC Treaty, Article 205a of the EC Treaty andArticle 179a of the Euratom Treaty, the annual report made by theCourt of Auditors together with the replies of the institutions underaudittotheobservationsoftheCourtofAuditors,anyrelevantspecialreportsbytheCourtofAuditorsandtheCourtofAuditors’statementofassurance as to the reliability of the accounts and the legality andregularity of the underlying transactions.
3. Before giving a discharge to the Commission, the European
Parliament may question the Commission on the implementation ofexpenditureortheoperationoffinancialcontrolsystems.TheCommis-sionshallsubmitanynecessaryinformationtotheEuropeanParliamentat the latter’s request.
4. If the date provided for in paragraph 1 cannot be met, the Euro-
pean Parliament or the Council shall inform the Commission of thereasons for the postponement.
lf the European Parliament postpones the decision giving a discharge,
the Commission shall make every effort to take measures, as soon aspossible, to facilitate removal of the obstacles to that decision.
5. ThedischargedecisionshallcovertheaccountsofalltheCommu-
nity’srevenueandexpenditure,theresultingbalanceandtheassetsandliabilities of the Community shown in the financial statement. It shallinclude an assessment of the responsibility of the Commission’s budg-etary management over the past financial year.
6. Thefinancialcontrollershalltakeaccountofthecommentsinthe
decisions giving discharge taken by the European Parliament; he shallalsotakeaccountofthecommentsaccompanyingtherecommendationsfor discharge adopted by the Council.
7. InaccordancewithArticle78goftheECSCTreaty,Article206of
theECTreatyandArticle180boftheEuratomTreaty,theCommissionand the other institutions shall take all appropriate steps to act on theobservationsbytheEuropeanParliamentrelatingtotheimplementationof expenditure, and on the comments accompanying the recommenda-tions for discharge adopted by the Council.
8. At the request of the European Parliament or the Council, the
institutions shall report on the measures taken in the light of theseobservationsandcomments,and,inparticular,ontheinstructionsgiventothoseoftheirdepartmentswhichareresponsiblefortheimplementa-tionofthebudget.SuchreportsshallalsobetransmittedtotheCourtofAuditors.
9. The institutions shall also give an account, in an annex to the
revenueandexpenditureaccountforthefinancialyearfollowingthatofthe discharge decision, of the measures taken in the light of thecomments appearing in the decisions giving discharge.
10. Supportingdocumentspertainingtotheaccountsandtheprepara-
tionoftherevenueandexpenditureaccountsandthebalancesheetshallbe kept for a period of five years following the date of the decisiongiving discharge in respect of the implementation of the budget.
However,thedocumentsrelatingtotransactionsnotfinallyclosedshall
be kept for longer than the said period, until the end of the yearfollowing the year in which such transactions are finally closed.
Eachinstitutionshalldecidewhichdepartmentwillkeepthesupporting
documents.
▼
M5
Article 90
1. Inadditiontotheannualreport,theCourtofAuditorsmayalso,at
anytime,submitobservations,intheformofspecialreports,onspecific
1977X1231 — EN — 01.01.2000 — 001.002 — 45
▼M5
questionsanddeliveropinionsattherequestofoneoftheinstitutionsof
the Communities.
2. The special reports shall be transmitted to the institution or body
concerned.
Theinstitutionconcernedshallhavetwoandahalfmonthsinwhichto
informtheCourtofAuditorsofanycommentsitwishestomakeontheobservations in question.
Should the Court of Auditors decide to have such observations
publishedinthe Official Journal of the European Communities ,itshall
includeafterthemanycommentssubmittedbytheinstitutionorinstitu-tions concerned.
ThespecialreportsshallbetransmittedtotheEuropeanParliamentand
the Council, each of which shall decide in conjunction with theCommission what action, if any, is to be taken in response.
3. Iftheopinionsreferredtoinparagraph1donotrelatetoproposals
for legislation or draft legislation on which it has been consulted, theymaybepublishedbytheCourtofAuditorsintheOfficialJournal.TheCourt shall take its decision on publication after consulting the institu-tion which requested the opinion or the institution concerned by theCourt’s analysis. Opinions published in the Official Journal shall beaccompanied by the replies of the institution or institutions concerned.
TITLE VII
SPECIAL PROVISIONS APPLICABLE TO RESEARCH AND TECHNO-
LOGICAL DEVELOPMENT APPROPRIATION
Article 91
The provisions of Titles I to VI, ►M8Title XI and Part III ◄shall
apply to the research and technological development appropriationsentered in the special subsection provided for in Article 92, save asotherwise provided in this Title.
Article 92
1. The appropriations relating to the activities covered by this Title
shall be entered in a special subsection of Part B of the Commissionsection.
Thissubsectionshallcontaintheappropriationsintendedfortherealiza-
tion of research and technological development objectives through theimplementation of the following:
▼
M10
(a) directactioncarriedoutintheestablishmentsoftheJointResearch
Centre(JRC),inprincipleentirelyfinancedfromthegeneralbudgetof the European Communities, and consisting of:
— research programmes,
— exploratory research activities,— scientific and technical support activities of an institutional
nature;
(b) indirectactionconsistingofprogrammescarriedoutundercontracts
tobeconcludedwiththirdparties.TheJRCmayparticipateintheseactivitiesonthesamebasisasthirdparties.TheseactivitiesshallinprinciplebepartiallyfinancedfromthegeneralbudgetoftheEuro-pean Communities (shared cost action projects);
▼
M5
(c) concerted action consisting of work undertaken by the Community
to coordinate the individual research projects carried out in theMember States, in respect of which the administrative expenditurealone is financed from the general budget of the EuropeanCommunities;
1977X1231 — EN — 01.01.2000 — 001.002 — 46
▼M5
(d) possible financial contributions by the Community to supplemen-
taryprogrammesinaccordancewith ►M8Article130koftheEC
Treaty◄,ortoresearchanddevelopmentprogrammesundertaken
by several Member States, including participation in the structurescreated for the execution of those programmes, in accordance with►
M8Article 130l of the EC Treaty ◄, or cooperation with third
countries or international organizations as provided for in►
M8Article 130m of the EC Treaty ◄, or participation in the
joint undertakings provided for in ►M8Article 130n of the EC
Treaty◄;
▼M10
(e) asregardsotheractivitiesofacompetitivenaturecarriedoutbythe
JRC:
— scientific and technical support activities under the R&TD
framework programmes in principle entirely financed from thegeneral budget,
— services for third parties.
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M5
2. The appropriations for projects under the framework programmeofactivitiesinthefieldofresearchandtechnologicaldevelopmentshallbe entered separately in this subsection.
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M10
3. Notwithstanding paragraph 1, the JRC may receive fundingcovered by appropriations entered elsewhere than in the subsectionreferredtointhatparagraphinrespectofitsparticipationonacompeti-tivebasisinactivitiesimplementedunderCommunitypoliciesfinanced,in principle, entirely from the general budget.
4. The provisions of Title IV on the conclusion of contracts shall
applytothecasesreferredtointhefirstindentofparagraph1(e)andinparagraph 3 of this Article.
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Article 93
1. ThenomenclatureofthespecialsubsectionprovidedforinArticle
92 shall be based on the purpose of the expenditure in achievingresearchandtechnologicaldevelopmentobjectivesorintheotheractiv-ities referred to in that Article.
The remarks for each subdivision shall also show:— the number of staff authorized for the current year,
— details of supplementary programmes, programmes undertaken by
severalMemberStatesandcooperationwiththirdcountriesorinter-national organizations, with an indication of the amount of anyfinancial contribution from the Community.
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M10
2. However, for the Joint Research Centre, appropriations for staffand appropriations for resources shall be entered in two separate chap-ters.
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M5
Article 94
The following shall be annexed to the special subsection referred to in
Article 92:
— atableofequivalencegivingthebreakdownbypurposeandtypeof
expenditure of the appropriations made available in the subsection,asspecifiedintheimplementingrulesprovidedforin ►
M8Article
139.◄
For management purposes, the Commission may create appropria-
tion accounts corresponding to the instruments of implementation,
— a provisional schedule of commitments and payments showing the
plannedutilizationofthecommitmentappropriationsandthecorre-
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sponding payment appropriations. The schedule shall be reviewed
annually.
▼M10
In order to permit full comparison between forecasts and out−turn,thetable of equivalence of commitments and payments shall be presentedwith the same subdivisions and headings in the budget and in therevenue and expenditure account.
In the working document accompanying the preliminary draft budget,
theCommissionshallprovidethenecessaryinformationconcerningtheforeseeable distribution and utilization of the commitment appropria-tions and the payment appropriations for the various budget headingsfor the duration of the action and also concerning development of therevenue originating from financing by third parties (public or private)and revenue from services for third parties.
Article 95
Notwithstanding Article 26 and without prejudice to paragraph 7
thereof, the Commission may, within the subsection referred to inArticle 92, transfer appropriations from one title to another and fromone chapter to another in respect of the activities referred to in Article92 (1) (a).
These transfers may not have the effect of increasing or decreasing by
more than 15 % in commitment appropriations and in payment appro-priations the initial allocation entered in the budget for each of theprogrammes referred to in Article 92 (1) (a), excluding exploratoryresearch.Theymaynothavetheeffectofincreasingtheappropriationsearmarked for exploratory research by more than 6% in commitmentappropriationsandinpaymentappropriationsoftheinitialallocationforthe total of the programmes referred to above.
ThisspecialprovisiondoesnotconcernstaffappropriationsfortheJRC.For the purposes of the application of Article 26, the budget headings
relatingtotheactivitiesreferredtoinArticle92(1)(b)(excludingJRCparticipation), (c) and (d) shall be regarded as chapters.
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Article 96
1. TheCommissionmayprovideservicesforoutsidebodiesorindi-
viduals, in accordance with the remarks in the budget for the chaptersand articles in question.
NotwithstandingArticle5,theresultingrevenuemaygiverisetoaddi-
tional appropriations:
— incommitments,equaltotheamountoftherepaymentsprovidedfor
in the contracts concluded with the outside bodies or individuals,
— inpayments,equaltotheentitlementsestablishedfromtheserepay-
ments.
2. Notwithstanding Article 7 (2), additional appropriations shall be
maintaineduntiltheyarecancelledbymeansoftherevenueandexpen-diture account.
3. Where provision is made in the remarks column for certain cate-
gories of expenditure to be repaid to the general budget, such repay-ments shall be booked to the statement of revenue, in accordance withthe implementing rules, under headings entered specifically for thispurpose.
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4. The appropriations relating to the activities referred to in Article92 (1) (b), as regards the participation of the JRC on a competitivebasis,and(e)and(3)shallbetreatedasrevenuefromservicestothirdparties provided for in paragraphs 1 and 2 of this Article.
The utilization of these appropriations shall be shown in a set of
analytical accounts in the revenue and expenditure accounts for eachcategoryofactiontowhichitrelates;itshallbeseparatefromrevenue
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originatingfromfinancingbythirdparties(publicorprivate)andfromrevenuefromservicesprovidedforthirdpartiesinconnectionwiththeactivities referred to in paragraphs 1 and 2 or activities of a differentnature.
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Article 97
1. With regard to the award of contracts in the fields falling under
thisTitle,theimplementingrulesprovidedforin ►M8Article139 ◄
may lay down special provisions on:
— thelimitvaluesdeterminingtheconditionsforconcludingcontracts,
— the operation and the determination of the powers of the Advisory
Committee on procurements and contracts.
2. By way of derogation from the first subparagraph of Article 66,
thesaleofscientificandtechnicalequipmentshallbepermittedwithoutpriornotice,onthebasisofadecisionbytheauthorizingofficertakenaftertheAdvisoryCommitteeonprocurementsandcontractshasdeliv-ered its opinion.
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B
TITLE VIII
SPECIAL PROVISIONS APPLICABLE TO THE EUROPEAN AGRICUL-
TURAL GUIDANCE AND GUARANTEE FUND, GUARANTEE
SECTION
▼M5
Article 98
The provisions of Titles I to VI ►M8and Part III ◄shall apply to
expenditure financed by the EAGGF Guarantee Section, in accordancewith Regulation (EEC) No 729/70, effected through the authorities orbodies referred to in Article 4(1) of that Regulation and under theimplementingprovisionsadoptedpursuanttoArticle5(3)ofthatRegu-lation, save as otherwise provided in this Title.
Special operations which the Commission manages directly, shall be
implementedinaccordancewiththeruleslaiddowninTitleIIIofthisRegulation.
▼
B
Article►M5 99◄
►M51.◄Provisional global commitments shall be entered into,
corresponding to the advances to be made to the Member States, inrespectoftheappropriationsfortheGuaranteeSectionoftheEuropeanAgricultural Guidance and Guarantee Fund.
The Commission decisions fixing the amounts of these advances in
accordancewithArticle5(2)(a)ofRegulation(EEC)No729/70shallconstitute provisional global commitments. The approval of the finan-cial controller shall have the sole purpose of establishing that thesecommitmentscorrespondtotheamountoftheadvancesdecidedbytheCommission after consultation with the EAGGF Committee, and thattheyarewithinthelimitsofthetotalamountofappropriationsenteredin the Guarantee Section of the European Agricultural Guidance andGuarantee Fund.
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2. The Commission shall make a monthly report to the ParliamentandtheCouncil;thereportshallbeforwardedwithin30workingdaysoftheendofthemonthofimplementationoftheactualexpenditurebythe Member States. The report shall include data permitting an assess-ment of:
— thetrendinexpenditure,takingaccountoftheearlywarningsystem
provided for in Article 6 of Council Decision 88/377/EEC of 24June 1988 concerning budgetary discipline,
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— the projected trend in expenditure during the financial year in rela-
tion to market trends.
▼B
Article►M5 100◄
1. Expenditure effected by authorities and bodies under Article 4 of
Regulation (EEC) No 729/70 shall be the subject of a commitment bychapter,articleanditem,andshallalsobechargedasapayment,afterexamination of the statements forwarded by the Member States inaccordance with the provisions laid down pursuant to Article 5(3) ofthe said Regulation, and after the approval of the financial controller.
The commitment shall be entered into within two months following
receiptofthestatementsforwardedbytheMemberStates.Thechargingas a payment shall, in general, be carried out within the same period.
This Article shall apply without prejudice to the clearance of accounts
provided for in Article 5 (2) (b) of Regulation (EEC) No 729/70.
2. The commitments provided for in this Article shall be deducted
from the provisional global commitments referred to in ►
M5Article
99◄.
▼M4
Article►M5 101◄
Expenditureshallbebookedtotheaccountsforafinancialyearonthe
basis of the advances paid by the Commission to the Member Statesduring that year in accordance with Article 5 of Regulation (EEC) No729/70, provided that notification of their commitment and authoriza-tionhavereachedtheaccountingofficernotlaterthan31Januaryofthefollowing year.
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M11
Article 102
1. The object of the clearance of accounts decision, provided for in
Article5(2)(b)ofRegulation(EEC)No729/70,shallbetodeterminethe amount of expenditure effected in each Member State during thefinancialyearinquestionwhichmustberecognizedasbeingchargeableto the EAGGF, without prejudice to decisions taken subsequently inaccordance with paragraph 2 (c) of that Article.
2. The object of the decisions referred to in Article 5 (2) (c) of
Regulation (EEC) No 729/70 shall be to determine the expenditurewhich,becausetherelevantmeasureswerenotimplementedincompli-ance with Community rules, shall be deducted from the Communityfinancing referred to in Articles 2 and 3 of that Regulation.
3. The schedule for the clearance of the accounts is set out in
Regulation (EEC) No 729/70.
4. The outcome of the decision referred to in paragraph 1, namely
anddiscrepancywhichmayexistbetweenthetotalexpenditurebookedtotheaccountsforafinancialyearpursuanttoArticles100and101andthetotalexpenditurerecognizedasallowablebytheCommissionwhenclearing the accounts, shall be booked, under a single article, as addi-tional expenditure or a reduction in expenditure.
5. The outcome of the decisions referred to in paragraph 2 shall be
booked under a single article as a reduction in expenditure.
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Article 103
Globalprovisionalcommitmentswhichhavebeenmadeforafinancial
yearinaccordancewithArticle99andwhichhavenotbeenspecificallycommitted under the budget nomenclature in accordance with Article100 by 1 February of the following financial year, shall be releasedunder the original financial year.
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Article 104
1. Transfersfromonearticletoanotherwithineachchaptershallbe
made by decision of the Commission, to be taken not later than 31JanuaryinaccordancewiththeprocedureprovidedforinArticle13ofRegulation (EEC) No 729/70.
TheCommissionshallinformthebudgetaryauthorityofsuchtransfers.2. Not later than ►
M1210 January ◄of the following financial
year,theCommissionmaysubmitproposalstothebudgetaryauthorityfortransfersofappropriationsfromonechaptertoanother.Actingbyaqualified majority, the Council, after consulting the European Parlia-ment, shall take a decision within three weeks. The European Parlia-mentshalldeliveritsopinioninsufficienttimetoenabletheCounciltotakenoteofitandactwithinthestipulatedperiod.FailingadecisionbytheCouncilwithinthatperiod,thetransferproposalsshallbedeemedtobe approved.
3. Decisionsontransfersrelatingtothemonetaryreservereferredto
in Article 19 (6) shall be taken in accordance with Article 26 (5) (a).
TITLE IX
SPECIAL PROVISIONS APPLICABLE TO EXTERNAL AID
SECTIONI
GENERAL PROVISIONS
Article 105
1. The provisions of Titles I to VI, ►M8Title XI and Part III ◄
shall apply to external aid financed from the Community budget, saveas otherwise provided in this Title.
2. TheappropriationsassignedbytheCommunitytoitscooperation
policy shall be used either under cooperation agreements with a finan-cial protocol (“preferential agreements") or as aid granted unilaterally.
3. The appropriations may be earmarked in particular for grant aid,
specialloans,riskcapitalorinterest−ratesubsidies,andshallbeusedbythe Commission, which may confer authority on behalf of theCommunitytoadministerapartthereof,eitherontheEuropeanInvest-ment Bank or, under its responsibility, on other organizations.
This provision shall not prejudice the audit powers of the Court of
Auditors under ►
M8Article 188c of the EC Treaty ◄.
4. Thefollowingprovisionsshallgoverntheuseofappropriationsby
the Commission.
5. The amount of special loans and risk capital granted shall be
shown in the balance sheet provided for in Article 81.
Article 106
1. Any cooperation project adopted by the Commission may be
covered by:
— a financing agreement drawn up between the Commission, acting
fortheCommunity,andtheGovernmentoftherecipientStateorthegoverningbodiesoftherecipientorganizationorinstitutions,herein-after referred to as the recipient,
— or a contract with international organizations, or natural or legal
persons responsible for carrying out the project.
2. The financing agreement or contract shall determine the financial
commitmentoftheCommunityforthemeasureconcerned.Noexpendi-tureinexcessofthisamountmaybechargedtothebudgetwithoutanadditional commitment.
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3. In addition, a loan contract shall be drawn up between the
Commission,actingfortheCommunity,andtheborrowerinrespectofany investment project financed by a special loan.
SECTIONII
IMPLEMENTATION
Article 107
Projectscoveredbyafinancingagreementshallbeimplementedbythe
recipientinclosecollaborationwiththeCommission,whichshallretainresponsibility for the utilization of appropriations.
Article 108
1. ThesefunctionsperformedbytheCommissionmaybereferredto
in the preferential agreements or the financing agreements as those ofchief authorizing officer.
2. The Commission, in close cooperation with the recipient, shall
ensure that participants in tendering procedures can compete on anequalfooting,thatthereisnodiscriminationandthatthetenderselectedis economically the most advantageous. In particular, it shall approvethe terms of the invitation to tender before it is issued, be apprised ofthe results of the examination of the tenders, and approve the proposalfor the award of the contract.
Article 109
1. In the case of preferential agreements in particular, the recipient
may appoint a national authorizing officer to represent the nationalauthorities in all operations relating to projects financed by theCommunitywhicharethesubjectofanagreementbetweentherecipientState and the Community.
2. TherecipientshallsubmitinvitationstotendertotheCommission
for agreement before issuing them. On the basis of the decisions thusendorsed and in close cooperation with the Commission, the recipientshallissueinvitationstotender,receivetenders,presideovertheexam-ination of tenders and establish the results of the tendering procedure.
TheCommissionshallnormallyberepresentedwhentendersarebeing
examined,wherethebasicpriceoftheinvitationtotenderexceedsthelimit fixed in the financing agreement or contract.
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M12
3. It shall transmit to the Commission for agreement the results oftheexaminationofthetenderingprocedureandaproposalfortheawardof the contract. It shall sign contracts, additions to contracts and esti-matesandshallnotifytheCommissionthereof.Forcontracts,additionsto contracts, and estimates, the Commission, where appropriate, shallenter into individual commitments in accordance with the procedureslaid down in Articles 36 to 39. Individual commitments shall counttowards the commitments under the financing agreements provided forinArticle106(2),inaccordancewiththesecondsubparagraphofArticle36(2).
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4. Where appropriate, the recipient shall validate and authorize anyexpenditurewhichisthesubjectofanagreementbetweentherecipientand the Community against appropriations committed by the Commis-sion. It shall remain financially liable to the Commission until theCommission clears the operations for the execution of which the reci-pient is responsible.
Article 110
1. For the purposes of applying the preferential agreement or
financing agreement between the Community and the recipient State,and in respect of the appropriations for which it is the authorizing
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officer,theCommissionmayberepresentedintherecipientStatebya
representative approved by that State.
2. Whileoperationsareinprogress,theCommission’srepresentative
shallverify,onthebasisofdocumentsandonthespot,thattheworkorservices comply with their description in the financing agreements,contracts or estimates.
Article 111
1. For payments in a currency other than that of the recipient State,
the Commission shall make payment direct for services provided inconnection with projects financed with grant aid.
2. For payments in the currency of the recipient State, accounts
denominated in ►
M13euro◄or in the currency of one of the
Member States may be opened with a financial institution in the reci-pient State in the name of the Commission or, by common agreement,of the recipient.
In the case of preferential agreements, the tasks referred to in para-
graphs5and6maybeentrustedtoafinancialinstitution,referredtoasthe paying agent.
3. The accounts referred to in paragraph 2 shall be replenished to
meet actual cash requirements. Transfers shall be made in►
M13euro◄or, exceptionally, in the currency of a Member State,
and converted into the currency of the recipient State as payments falldue, at the exchange rate ruling on the day of payment.
4. Interestonthedepositsintheaccountsreferredtoinparagraph2
shall be used exclusively for the projects concerned, unless agreedotherwisewhenthefunctionsofpayingagentarebeingexercisedbyapublic financial institution.
The paying agent shall not be remunerated for his services.5. Within the limits of the funds available, the paying agent, after
obtaining the approval of the Commission’s representative, shall makethe payments authorized after verifying that the supporting documentsprovided are substantively accurate and in order.
6. At regular intervals, and at least once a quarter, the paying agent
shall send the Commission a statement of actual expenditure andrevenue, together with supporting documents.
7. Payments made and revenue received in the currency of the reci-
pient State shall be subject to a clearance procedure before they arefinally booked to the budget appropriations. Clearance shall consist ofanexaminationbytheCommissiontoestablishthatvalidation,authori-zation and payment and the collection of revenue have been properlyeffected, in accordance with this Financial Regulation.
SECTIONIII
AWARD OF CONTRACTS
▼M12
Article 112
TheprovisionsofthissectionshallapplyinsteadofthoseunderTitleIV
to cases in which the Commission, in connection with external aidfinancedfromthegeneralbudgetoftheEuropeanCommunities,actsascontractingauthorityintheawardofworks,supplyorservicecontractsnot covered:
— by the Council Directives coordinating the award of public works,
supply or service contracts, or
— by the Plurilateral Agreement on Government Procurement
concluded within the World Trade Organisation.
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Article 113
Theproceduretobefollowedfortheawardofworks,supplyorservice
contractsfinancedfromthegeneralbudgetoftheEuropeanCommuni-ties for recipients of external aid shall be specified in the financingagreement or the contract, subject to the following principles.
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Article 114
1. Participationintenderingproceduresshallbeopenonequalterms
to all natural and legal persons coming within the scope of applicationoftheTreatiesandtoallnaturalandlegalpersonsintherecipientState.
Thespecificationsshallthereforerequiretendererstostatetheirnation-
ality and to present the supporting evidence normally acceptable undertheir own law.
2. In exceptional cases and with proper justification, it may be
decided, on the basis of the specific conditions laid down in the basicinstruments governing cooperation and in accordance with the appro-priate authorization procedures, to allow nationals of third countries totender for contracts financed by the Community.
Article 115
The Commission and the recipient shall take the necessary imple-
menting measures to guarantee as wide a participation as possible, onequaltermsintenderingproceduresandotherproceduresfortheawardof contracts financed by the Community.
Tothisend,withoutprejudicetoArticles116to118,careshallbetaken
in particular to:
(a) ensure advance publication in reasonable time of invitations to
tenderinthe Official Journal of the European Communities andthe
official gazette of the recipient State;
(b) eliminate any discriminatory practice or technical specifications
liabletohamperwideparticipationonequaltermsbyallnaturalorlegal persons of the Member States and of the recipient State.
Article 116
Inurgentcasesorwherethenature,smallscaleorparticularcharacteris-
tics of certain works or supplies so warrant, the Commission or therecipient may, by agreement with the Commission stating the reasonstherefor, exceptionally authorize;
— theawardofcontractsafteropeninvitationstotender,confinedtoa
specific geographical area,
— the award of contracts after restricted invitations to tender,— the conclusions of contracts by private treaty,— the performance of contracts through public works departments.
Article 117
The Commission and the recipient shall ensure that Articles 115, 116
and118areobservedforeachoperationandthatthetenderselectediseconomically the most advantageous, with due regard notably to thecostofperformance,runningcostsinvolved,technicalmerit,thequalifi-cations of and the guarantees offered by the tenderers, the nature andconditions of execution of the works or supplies.
The Commission and the recipient shall ensure that all the selection
criteria are specified in the invitation to tender.
The result of invitations to tender shall be published at the earliest
possible date in the Official Journal of the European Communities .
Where appropriate, it should also be possible to publish the result ofinvitations to tender in the official gazette of the recipient State.
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Article 118
1. Contractsforservicesandtechnicalcooperationshallbeawarded
after restricted invitations to tender.
For contracts for services and technical cooperation, the Commission
shall — if need be after a process of preselection — draw up arestricted list of candidates, using criteria which guarantee that theyhave the requisite qualifications, professional experience and indepen-dence, and taking account of their availability for the project in ques-tion.
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M8
The Commission shall publish in the Official Journal of the European
Communities:
(a) the content and the value of each contract planned, indicating the
purpose:
— forecasts of the services contracts and technical cooperation
actions to be awarded after calls for tenders during the 12months following publication once a year, and
— the amendments to the forecasts provided for under the first
indent once every three months;
(b) the outcome of the calls for tenders as soon as possible.
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2. However, some contracts may be awarded by private treaty,particularly in the following cases:
— short or small projects,
— projectsbeingcarriedoutbynon−profit−makinginstitutionsorasso-
ciations,
— extensions to projects already under way,— where the invitation to tender has been unsuccessful.
3. Contractsforservicesandtechnicalcooperationshall,asageneral
rule, be prepared, negotiated and concluded by the Commission.
4. In the case of preferential agreements, or in cases where express
provision is made therefore in the financing agreements, the tasksreferred to in paragraph 3 shall be delegated to the recipient, in agree-ment and in collaboration with the Commission’s representative.
Article 119
OnlyservicecontractsawardedintheinterestsoftheCommissionshall
he governed by the provisions of ►
M8Articles 56 to 64a ◄of the
Financial Regulation.
SECTIONIV
AUDITING OF ACCOUNTS
Article 120
1. Each agreement to finance an investment project shall make
express provision for the Court’s power of audit.
2. Should the Court of Auditors wish to carry out audits on the
territoryofrecipientStates,orStatesinwhichrecipientsarelocated,itshall do so by agreement with the relevant authorities of the Stateconcerned.
Such audits shall be limited to the inspection agreements implemented
pursuanttotheprovisionsgoverningCommunityaidandshallnotapplyinrespectoftheexecutionarrangementswhicharetheresponsibilityofthe national authorizing officer.
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TITLE X
▼M9
SPECIAL PROVISIONS APPLICABLE TO THE MANAGEMENT OF
APPROPRIATIONS RELATING TO STAFF SERVING IN OFFICESAND SUBOFFICES IN THE COMMUNITY AND IN DELEGATIONS
OUTSIDE THE COMMUNITY AND TO THEIR ADMINISTRATION
▼M5
Article 121
The provisions of Titles I to VI ►M8and Part III ◄shall apply to
activities in this field, save as otherwise provided in this Title.
▼M9
▼M5
Article 123
In accordance with ►M8Article 139 ◄the Commission shall adopt
implementing rules relating, in particular, to:
— the award of contracts,
— the keeping of inventories,— the system of accounts,— imprest accounts.
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M8
TITLE XI
SPECIAL PROVISIONS APPLICABLE TO FINANCIAL PARTICIPA-
TION BY THIRD PARTIES AND OUTSIDE BODIES IN COMMUNITY
ACTIVITIES
SECTIONI
GENERAL PROVISIONS
Article 124
FinancialparticipationbyathirdpartyoroutsidebodyinaCommunity
activity shall require the prior authorization of the budgetary authority,given according to one of the following procedures:
(a) inthecourseofthebudgetaryprocedureifalreadyprovidedfor.In
such cases, the Commission shall, in the preliminary draft budget,propose the appropriate budgetary structure and the headings towhichthecontributionshallbechargedinthestatementofrevenueand under which the corresponding appropriations shall be madeavailableinthestatementofexpenditure,inaccordancewithArticle125.Theamountofthecontributionandthemannerofitscalcula-tion shall be shown separately, for information;
(b) where the request for participation is made in the course of a
financial year, the Commission may, if it considers it to be in theinterestoftheCommunity,andifanappropriatestructuretocoverit is provided in the budget, propose that it be authorized by thebudgetary authority. Such authorization shall be given if theCouncil, acting by a qualified majority, and the European Parlia-ment agree.
All relevant intervention expenditure shall be covered by the
amount of the third party’s contribution.
Article 125
Forthepurposesofimplementingthebudget,thecontributionsreferred
to in Article 124 shall lead to additional appropriations being madeavailable as follows:
— commitment appropriations equivalent to the entitlementdue to the
Community,
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▼M8
— payment appropriations equivalent to the amounts received.
Article 126
The contributions referred to in Article 124 shall constitute earmarked
revenue in accordance with the second subparagraph of Article 4 (2).
Allnecessaryaccountingmeasuresshallbetakentoensuretheseparate
monitoringoftheusebothoftherevenuefromthesecontributionsandof the appropriations made available under Article 125.
SECTIONII
PROVISIONS APPLICABLE TO PARTICIPATION PROVIDED FOR
PURSUANT TO THE AGREEMENT ON THE EUROPEAN ECONOMIC
AREA
Article 127
ThebudgetarystructuretocoverparticipationbytheEFTAStatesshall
be as follows:
(a) inthestatementofrevenuethereshallbeaheadingtocoverthefull
amount of the contribution of the EFTA States for the relevantfinancialyear.Theamountshallbeenteredseparately“forinforma-tion";
(b) in the statement of expenditure:
— theremarkrelatingtoeachheadingcoveringCommunityactivi-
tiesinvolvingtheparticipationoftheEFTAStatesshallindicatethe amount of their contribution “for information",
— an annex, constituting an integral part of the budget, shall
contain all headings relating to Community activities involvingthe participation of the EFTA States.
Theannexshallserveasandsupplementthebudgetarystructure
for making available the appropriations corresponding to suchcontributions by virtue of Article 128 and for implementingexpenditure.
Article 128
By virtue of Article 82 of the Agreement on the European Economic
Area,amountsrelatingtotheannualparticipationofEFTAStates−asconfirmed to the Commission by the Joint Committee in conformitywithArticle1(5)ofProtocol32−shall,atthebeginningofthefinancialyear, give rise to the full entry of the corresponding appropriations forcommitment and appropriations for payment.
Article 129
1. If in the course of a financial year the appropriations for budget
headings involving the participation of the EFTA States are increasedbyamendingorsupplementarybudgetsorbytransfers,withoutitbeingpossible for the EFTA States, in the course of that financial year, toadjust their contribution accordingly in line with the proportionalityfactor provided for in Article 82 of the Agreement on the EuropeanEconomic Area, the Commission shall be authorized to provide provi-sional, exceptional advance financing from its cash resources for theshareoftheEFTAStatesinordertopermitbalancedimplementationofexpenditure relating to the relevant activity. Following any suchincrease the Commission shall as soon as possible call for corre-sponding contributions from the EFTA States save in cases of over-riding necessity.
Each year the Commission shall inform the budgetary authority of the
measuresithashadtotakeinaccordancewiththeforegoingprovisions.
2. Theadvancefinancingshallberegularizedassoonaspossiblein
the budget for the following financial year.
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▼M8
Article 130
By way of derogation from Article 58 (2), as regards the rules
governingtenderingprocedures,invitationstotendershallbepublishedthroughoutalltheMemberStatesandalltheEFTAStateswheneverthecontractentailsexpenditureformabudgetheadinginvolvingparticipa-tion of the EFTA States.
Article 131
1. The financial contributions of EFTA States shall constitute
earmarkedrevenuewithinthemeaningofthethirdindentofthesecondsubparagraphofArticle4(2).Allappropriateaccountingmeasuresshallaccordinglybetakentoensuretheseparatemonitoringbothofrevenueflowing from such contributions and of the corresponding appropria-tions.
2. Point4ofArticle7andArticle26(9)shallapplytothecontribu-
tions referred to in paragraph 1.
3. InthequarterlyreportsprovidedforinArticle34theCommission
shallgivecleardetailsofthestateofexecutionofboththerevenueandthe expenditure corresponding to participation by the EFTA States.
Article 132
The revenue and expenditure corresponding to participation by the
EFTAStatesshallbeverifiedincompliancewiththeprovisionsoftheEC Treaty, of this Regulation and of regulations applicable to matterscovered by Article 78 of the Agreement on the European EconomicArea and Protocol 31 thereto.
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M13
TITLE XIa
SPECIAL PROVISIONS APPLICABLE TO THE SANCTIONS
REFERRED TO IN SECTION 4 OF REGULATION (EC) No 1467/97
Article 132a
Thebudgetarystructurefortheproceedsofthesanctionsreferredtoin
Section 4 of Regulation (EC) No 1467/97 shall be as follows:
(a) thestatementofrevenueshallcarryabudgetheadingtoreceivethe
amounts of the fines and the interest on the deposits and the finesimposed by the Council on a Member State in accordance withSection 4 of Regulation (EC) No 1467/97;
(b) in parallel, and without prejudice to Article 28a, commitment and
payment appropriations shall be entered in a heading in the state-ment of expenditure to match these amounts in the statement ofrevenue.TheseappropriationsshallbeexecutedinaccordancewithArticle 16 of Regulation (EC) No 1467/97.
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TITLE►M8XII◄
SPECIAL PROVISIONS RELATING TO THE OFFICE FOR OFFICIAL
PUBLICATIONS OF THE EUROPEAN COMMUNITIES
Article►M8 133◄
1. WithoutprejudicetotheotherprovisionsofthisFinancialRegula-
tion, the following special provisions shall apply to the functioning ofthe Office for Official Publications of the European Communities.
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2. TheappropriationsfortheOffice,thetotalamountofwhichshallbeenteredunderaspecialbudgetheadingwithinPartAofthesectionofthebudgetrelatingtotheCommission,shallbesetoutindetailinanAnnextothatpart.TheappropriationsshownunderthisspecificbudgetheadingmaybetransferredinaccordancewiththeconditionssetoutinArticle 26.
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The Annex shall take the form of a statement of revenue and expendi-
ture, subdivided in the same way as the sections of the budget.
The appropriations entered in that Annex shall cover all the financial
requirementsoftheOfficeintheperformanceofitsdutiesintheserviceof the Communities’ institutions.
3. Wherenecessary,theestimatesmaybeadjustedduringthefinan-
cialyearbytheManagementCommitteeoftheOffice,whichshalltakedecisionsonthetransfersrequiredwithintheAnnexasaresultofsuchadjustments.Itshallinformthebudgetaryauthoritythreeweeksbeforeeffecting transfers form one chapter to another.
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►M54.◄The remarks concerning the specific budget heading
underwhichisenteredthetotalappropriationfortheOfficeshallshowanestimateofthecostofservicesrenderedbytheOfficetoeachoftheinstitutions. This shall be based on the forecasts of the analyticalaccounts provided for in paragraph 5.
The total costs of these services shall correspond to the total expendi-
ture shown in its statement of expenditure.
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5. The Office shall draw up analytical accounts of its expenditure,enabling the proportion of its services rendered to each of the institu-tionstobedetermined.TheManagementCommitteeshalllaydownthecriteria on which the accounting system shall be based.
The Office shall notify the institutions concerned of the results of the
analytical accounts.
6. OnaproposalfromtheManagementCommitteetheCommission
shall, for the appropriations entered in the Annex for the Office, dele-gatethepowersofauthorizationtotheDirectoroftheOfficeandshallfix the limits and conditions of such act of delegation.
Eachinstitutionshallretainthepowersofauthorizationforexpenditure
chargedtotheappropriationsforthepublicationofallworkentrustedtooutside bodies by the Office. The net proceeds from the sale of thepublications shall be re−used by the institution which drew up thesepublications, in accordance with ►
M5Article 27 (2) ◄.
7. The financial controller shall delegate powers to an official who
shall be responsible for monitoring the commitment and authorizationof expenditure and also for monitoring the revenue of the Office.
The Commission, acting on a proposal from the Management
Committee of the Office, shall appoint an assistant accounting officerwith special responsibility for collecting revenue and settling expendi-ture effected directly by the Office.
8. To meet the cash requirements of the Office, bank accounts or
postofficegiroaccountsmaybeopenedonitsbehalfbytheCommis-sion, acting on a proposal from the Management Committee.
The accounts shall be financed regularly by payments effected by the
Commission upon receipt of calls for funds from the Office. Suchpaymentsmaynotexceedthetotalamountoftheappropriationsenteredfor this purpose in the Commission budget.
The final cash position for each year shall be adjusted between the
Office and the Commission at the end of the financial year.
9. The revenue and expenditure account and the balance sheet in
respect of the Office shall form an integral part of the revenue andexpenditure account and of the balance sheet of the Communitiesreferred to in ►
M5Articles 78 and 81 ◄.
10. The Management Committee of the Office shall determine the
detailed rules for the implementation of the preceding provisions, andalso specific rules governing the terms of sale of publications and thecorresponding accounting system.
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PART II
PROVISIONS APPLICABLE TO BORROWING AND LENDING
OPERATIONS BY THE EUROPEAN COMMUNITIES
Article 134
The Commission shall report to the Council and the European Parlia-
menttwiceayearonthepositionregardingbudgetguaranteesandrisksrelating thereto.
ThisinformationshallbesentatthesametimetotheCourtofAuditors.
Article 135
ThefinancialbalancesheetprovidedforinArticle81shallgivedetails
of capital operations and debt management indicating:
— the amount of loans granted,
— the amount of the repayments made on borrowings contracted and
of the charges on such borrowings,
— the amount of borrowings contracted,— theamountofrepaymentsofcapitalandpaymentsofinterestmade
on loans granted.
Article 136
Within the powers conferred on the Commission in relation to each
instrument, the financial controller of the Commission shall check theregularity of the execution of borrowing and lending operations.
To this end, he shall check:— that operations are in conformity with the basic rules,
— the assessment of risks,— where appropriate, the calculation of interest−rate subsidies where
they are covered by the budget,
— compliance with the principle of sound financial management.
To enable him to exercise these functions to the full, the financial
controller of the Commission:
— shallhaveaccesseithermanuallyorbycomputertoalldata,docu-
ments, ledgers, registers, correspondence, statements of account orcomputer files relating to borrowing and lending operations,
— shall be authorized to conduct or take part in on−the−spotchecks.
Article 137
TheCommissionshallprovidetheCourtofAuditors,atitsrequest,with
any information on borrowing and lending operations.
►M8PART III ◄
TRANSITIONAL AND FINAL PROVISIONS
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Article►M8 138◄
The European Parliament and the Council shall be empowered to
require any information or explanations regarding budgetary matterswithin their competence.
TheCouncilmaybeassistedinitstaskbyacommitteesetupwithinthe
framework of the Permanent Representatives Committee.
Article►
M8 139◄
InconsultationwiththeEuropeanParliamentandtheCouncilandafter
the other institutions have delivered their opinions, the Commissionshall adopt implementing measures for this Financial Regulation.
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Article►M8 140◄
At three−yearintervals, the European Parliament and the Council shall
examine this Financial Regulation in the light of a proposal from theCommission.AnyfinancialregulationsamendingthisFinancialRegula-tion shall be adopted by the Council after recourse to the conciliationprocedure if the European Parliament so requests.
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Article►M8 141◄
The following shall be repealed:— theFinancialRegulationof25April1973applicabletothegeneral
budgetoftheEuropeanCommunities (
1),andtheFinancialRegula-
tion of 18 March 1975 amending it (2),
— all other provisions contrary to this Financial Regulation.
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Article►M8 142◄
The financial rules of Community bodies having legal personality and
receiving subsidies from the general budget must, as far as possible,correspond to the provisions of this Financial Regulation and departfrom them only when the specific requirements of their individualoperation so dictate.
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Article►M8 143◄
This Financial Regulation shall enter into force on 1 January 1978.This Financial Regulation shall be binding in its entirety and directly
applicable in all Member States.
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(1) OJ No L 116, 1. 5. 1973, p. 1.
(2) OJ No L 73, 21. 3. 1975, p. 45.