RESOLUTION OF THE EUROPEAN PARLIAMENT  
of 10 May 2012  
with observations forming an integral part of its Decision on discharge in respect of the 
implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction 
for the financial year 2010  
THE EUROPEAN PARLIAMENT,  
— having regard to the final annual accounts of the European Monitoring Centre for Drugs and Drug 
Addiction for the financial year 2010,  
— having regard to the Court of Auditors’ report on the annual accounts of the European Monitoring 
Centre for Drugs and Drug Addiction for the financial year 2010, together with the Centre’s replies (  1 ), 
— having regard to the Council’s recommendation of 21 February 2012 (06083/2012 – C7-0051/2012),  
— having regard to Article 319 of the Treaty on the Functioning of the European Union,  
— having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial 
Regulation applicable to the general budget of the European Communities (  2 ), and in particular 
Article 185 thereof,  
— having regard to Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 
12 December 2006 on the European Monitoring Centre for Drugs and Drug Addiction (  3 ), and in 
particular Article 15 thereof,  
— having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the 
framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, 
Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European 
Communities (  4 ), and in particular Article 94 thereof,  
— having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,  
— having regard to the report of the Committee on Budgetary Control and the opinion of the Committee 
on Civil Liberties, Justice and Home Affairs (A7-0134/2012),  
A. whereas the Court of Auditors has stated that it has obtained reasonable assurances that the annual 
accounts for the financial year 2010 are reliable and that the underlying transactions are legal and 
regular,  
B. whereas on 10 May 2011 Parliament granted the Director of the European Monitoring Centre for 
Drugs and Drug Addiction discharge for implementation of the Centre’s budget for the financial year 
2009 (  5 ), and in its resolution accompanying the discharge decision, inter alia:  
— called on the Centre to put in place appropriate instructions and procedures for analysis of potential 
carry-overs, and to improve the programming and monitoring of activities with a view to reducing 
carry-overs,  
— called on the Centre to ensure consistent implementation of the approved staff appraisal procedure,EN 17.10.2012 Official Journal of the European Union L 286/207  
( 1 ) OJ C 366, 15.12.2011, p. 156.  
( 2 ) OJ L 248, 16.9.2002, p. 1.  
( 3 ) OJ L 376, 27.12.2006, p. 1.  
( 4 ) OJ L 357, 31.12.2002, p. 72.  
( 5 ) OJ L 250, 27.9.2011, p. 167.
— urged the Centre to implement, without delay, 9 ‘very important’ recommendations of the Internal 
Audit Service (IAS) and to inform the discharge authority of the progress made,  
C. whereas the initial budget of the Centre for the year 2010 was EUR 15 900 323 compared with EUR 
14 700 000 in 2009, which is an increase of 8,16 % compared with 2009; whereas the contribution of 
the Union to the budget of the Centre for 2010 was EUR 14 800 000 (  1 ), which represents an increase 
of 4,59 % compared with 2009,  
Budget and financial management  
1. Observes from its Final Annual Accounts that the actual revenue of the Centre for the financial year 
2010 amounted to EUR 16 245 886; notes that the difference between 2010 actual revenue and the 
revenue entered in the budget 2010 is due to the following factors:  
— the payment in 2010 of EUR 362 000 from the Union contribution relating to the Centre 2008 
and 2009 budget revenues,  
— the offsetting of EUR 16 437 which corresponds to the positive balance of the outturn of 2008 and 
2009 Norway’s contribution to the Centre’s budget,  
— the sum of EUR 1 980,00 corresponding to an amount cashed in 2010 but not entered in the 2010 
budget;  
2. Notes that the Union contribution for 2010 amounts to a total of EUR 14 800 000, of which an 
amount of EUR 200 000 coming from the recovery of surplus was added to the amount of EUR 
14 600 000 entered in the budget;  
3. Notes from the Final Annual Accounts of the Centre that the execution rate concerning appropriations 
from the 2010 budget stands at 98,82 % (-0,03 % against 2009) for commitment appropriations, 
94,85 % for payment appropriations against commitments (-1,66 % against 2009) and 93,73 % for 
payment against the final budget (-1,67 % against 2009);  
4. Observes, moreover, that data relating to the budget execution of Titles I and II (staff and support 
activities) showed an increase compared with the 2009 execution rate both in terms of commitments 
and payments, respectively + 0,57 % and + 13,4 %; notes that the execution rate stands at 99,15 % for 
commitment appropriations and at 96,64 % for payment appropriations, against 98,58 % and 95,30 % 
for 2009;  
5. Establishes that the execution rate for Title III (projects and operational activities) shows a decrease in 
the use of payment appropriations (-9,58 %) compared with 2009 and a small decrease on the 
committed on final budget appropriations of 1,37 %; notes also that the execution rate stands at 
98,04 % for commitment appropriations and at 88,83 % for payment appropriations; notes from the 
Centre that the situation was due to the following factors:  
— more than 70 % of the National Focal Points were only able to request the payment of the first 
instalment of the 2010 Reitox co-financing,  
— the impossibility of executing, before the end of 2010, some payments linked to the refunding of 
costs for technical meetings that were held in the last part of the year,  
— a residual number of payments linked to the implementation of small contracts for external 
technical studies/surveys could not be executed, due to the late conclusion of the relevant procure ­
ment/contracting operations;EN L 286/208 Official Journal of the European Union 17.10.2012  
( 1 ) OJ L 64, 12.3.2010, pp. 1056-1057.
Is of the opinion that a low execution rate for payment appropriations under Title III affects the 
development of the Centre’s projects and activities and might have a negative impact on their planed 
outcomes; calls, therefore, on the Centre to take immediate action to increase the execution rate for 
payment appropriations in the future and to keep the discharge authority informed of the progress 
achieved;  
6. Calls on the Centre to consolidate its financial management; recognises that drug-related issues should 
be adequately represented in the new multiannual financial framework (2014-2020);  
Carry-over appropriations  
7. Welcomes the Centre’s initiative to further reduce the volume of appropriations carried forward; 
acknowledges, in particular, from its Annual Activity Report that the Centre took the following 
measures:  
— five training sessions concerning budget operations and procurement processes have been held for 
the Centre’s different financial and operational actors,  
— clearer and more structured instructions and procedures have been put in place for the analysis and 
prevention of carry-forwards,  
— the tendering process aimed at implementing the Annual Work Programme/Budget has, as much as 
possible, been anticipated in advance so that as a rule these processes are carried out during the first 
semester of the year,  
— an AD staff member was recruited to enhance the Centre’s capacity to plan and monitor its 
activities;  
Calls nevertheless on the Court of Auditors to inform the discharge authority of the effectiveness of 
these measures;  
Accounting system  
8. Acknowledges from the Final Annual Accounts that the Centre implemented a new income structure 
created in ABAC in order to simplify and better manage the recovery orders;  
9. Notes also that the Centre revised its activity based management system and defined a cost-based 
accounting system; acknowledges in particular that the relevant ABAC and SAP CO applications have 
been configured accordingly and the production phase should have started in the first quarter of 2011; 
calls on the Centre to inform the discharge authority of the progress made on this matter;  
Public procurement  
10. Notes from the Centre’s Final Annual Accounts that a residual number of payments linked to the 
implementation of small contracts for external technical studies/surveys was not be executed due to the 
late conclusion of the relevant procurement/contracting operations, in line with the state of 
advancement of the projects concerned of the Centre’s Work Programme;  
Performance  
11. Calls on the Centre to duly take into account the level of reporting when planning its activities; urges, in 
particular, the Centre to make sure that the Annual Activity Report effectively mirrors the Annual Work 
Programme and that the planning of resources for activities (ABB) is aligned with the organisational 
structure of the Centre to enable the monitoring of budget execution;  
12. Welcomes web dissemination as an effective and cost-efficient part of the Centre’s overall communi ­
cation strategy and information activities; moreover, calls on the Centre to propose improvements in 
sustaining, with the support of Reitox, the Centre’s multilingual policy;EN 17.10.2012 Official Journal of the European Union L 286/209
13. Takes note that the economic difficulties in the European Union should be overcome and therefore 
urges renewed flexibility, innovative organisational measures and better coordination among Union 
institutions, agencies and national authorities;  
14. Welcomes the improved cooperation between the Centre and the European School Survey Project on 
Alcohol and Other Drugs (ESPAD); believes that the monitoring of alcohol, tobacco and other addictive 
behaviours which are unrelated to substances should be included as a priority in the next Drugs Strategy 
of the Union;  
Risk Assessment  
15. Notes from its Annual Report of Activities that the Centre approved a comprehensive methodology for 
the carrying out of risk identification and assessment as a tool for improving risk management within 
the Centre; calls nevertheless on the Court of Auditors to inform the discharge authority of the effec ­
tiveness of the measures taken by the Centre; calls also on the IAS to duly verify that the central risk 
register has effectively been set up, in line with IAS’s recommendations and requirements as laid down 
in the Centre’s Internal Control Standards;  
Internal audit  
16. Acknowledges that in 2010 the IAS performed an audit on the management of outputs for external 
communication in order to assess and provide assurance on the internal controls applicable to the 
outputs for external communication; notes in particular that various strategic documents covering the 
area of communication have been issued over the years but have not been linked to the 2010 Annual 
Work Programme and Multi-Annual Work Programme 2010-2012, and that no periodic update of 
target groups was planned over the lifecycle of the planning documents even though required in the 
Centre’s Communication Strategy;  
17. Urges the Centre in this respect to link its future Communication strategy to its (multi)-annual planning 
documents and regularly review the needs of target groups;  
18. Acknowledges that the Centre still needs to implement five ‘very important’ recommendations from IAS 
audits on ‘grant management’ (performed in 2009) and on ‘Preparedness for the Move’ (2008); is 
concerned that for three ‘very important’ recommendations, the implementation is delayed beyond 
the date defined by the Centre in its original action plan; notes also that one more recommendation 
has been reported as implemented by the Centre as at the end of 2010, and awaits a follow-up by the 
IAS with the purpose of confirming its effective implementation; urges the Centre, therefore, to take 
immediate steps to redress the situation and inform the discharge authority of the measures taken;  
19. Notes also that one recommendation on compliance with the Grant Agreement has been rejected by the 
Centre; urges the Centre, therefore, to explain its decision to the discharge authority;  
20. Draws attention to its recommendations from previous discharge reports, as set out in the Annex to this 
resolution;  
21. Refers, in respect of the other observations accompanying its Decision on discharge, which are of a 
horizontal nature, to its resolution of 10 May 2012 (  1 ) on the performance, financial management and 
control of the agencies.EN L 286/210 Official Journal of the European Union 17.10.2012  
( 1 ) Texts adopted, P7_TA(2012)0164 (see page 388 of this Official Journal).
ANNEX  
EUROPEAN PARLIAMENT RECOMMENDATIONS OVER PAST YEARS  
European Monitoring 
Centre for Drugs and Drug 
Addiction  2006  2007  2008  2009  
Performance  The budgetary principles of annuality and 
specification were not strictly observed: 
high number of transfers of appropriations 
between budget lines and in many cases 
the supporting documentation was insuffi ­
ciently detailed  n.a. Calls on the Centre to set SMART 
objectives and RACER indicators, as well 
as to make a Gannt diagram → 
promoting a result-oriented approach  Calls on the Centre to make a Gannt 
diagram part of the programming for each 
of its operational activities  
Budgetary and financial 
management  The rules for procurement were not strictly 
implemented  The Centre is in disagreement with Norway 
concerning the calculation of Norway’s 
financial contribution for its participation 
in the Centre’s work. The Centre should 
seek to resolve this disagreement as soon 
as possible as it has an impact on the 
budget and on the Centre’s financial 
statements (the Centre estimation is EUR 
80 000 higher than that of Norwegian 
authorities)  n.a. — Calls on the Centre to put in place 
appropriate instructions and procedures 
for analysis of potential carry-overs, 
improve the programming and moni ­
toring of activities with a view to 
reducing carry-overs 
— Court of Auditors reported EUR 
339 000 carry-forwards in 2009 appro ­
priation for Title II Administrative 
expenditure (26 %)  
Human resources  n.a.  n.a.  n.a.  Calls on the Centre to ensure consistent 
implementation of the approved staff 
appraisal procedure  
Internal audit  n.a.  n.a.  Calls on the Centre to fulfil 26 out of 41 
recommendations made by the Internal 
Audit Service in 2006: i.e. quality control 
of the new location, precautions against 
damage from flooding, a business 
continuity plan and investment in 
equipment; the implementation of the 
internal control standards (staff 
promotions, staff appraisal, risk manage ­
ment)  — Calls on the Centre to inform the 
discharge authority of the progress 
made on risk management and annual 
risk analysis 
— Urges the Centre to implement without 
delay nine very important recommen ­
dations and inform the discharge 
authority of the progress madeEN 17.10.2012 Official Journal of the European Union L 286/211