A4-0034/95

Resolution on the closure of Parliament's accounts for the 1994 financial year (administrative expenditure)

The European Parliament,

- having regard to Article 79 of the Financial Regulation,

- having regard to Rule 166(3) of its Rules of Procedure,

- having regard to Articles 8 and 9 of the Internal Rules for the Implementation of the European Parliament's budget,

- having regard to the Administration's report on the implementation of the European Parliament's budget for 1994 (PE 211.928),

- having regard to the report of the Committee on Budgetary Control (A4- 0034/95),

A. whereas the Administration's report notes that the available appropriations can be broken down as follows:

- Appropriations for the 1994 financial year ECU 665 910 000.00

- Appropriations carried over from 1993

(automatically:

Article 7(1)(b) of the Financial Regulation) ECU 59 043 315.13

(by request:

Article 7(1)(a) of the Financial Regulation) ECU 0

B. whereas the available appropriations were utilized as follows:

1994 appropriations

(a) commitments for the 1994 financial year ECU 652 762 810.47

(b) payments for the 1994 financial year ECU 595 688 023.43

- automatic carry-overs to 1995

(Article 7(1)(b) of the Financial

Regulation) ECU 57 074 787.04

Appropriations carried over from 1993

- payments in respect of appropriations

carried over automatically from 1993 ECU 50 659 564.21

- payments in respect of appropriations

carried over by request from 1993 ECU 0

C. whereas the provisions of the Financial Regulation require the following cancellations:

- cancellations of 1994 appropriations

which were not committed ECU 13 147 189.53

(including appropriations from the

reserves in Chapters 100 and 101) ECU 0

- cancellations of appropriations

automatically carried over from 1993

and not disbursed ECU 8 383 750.92

- cancellations of appropriations

carried over from 1993 by request and

not disbursed ECU 0

1. Confirms the results set out in the accounts for the 1994 financial year and requiring to be submitted to the Commission in accordance with Article 79 of the Financial Regulation to enable it to draw up the consolidated revenue and expenditure account and balance sheet, following scrutiny by the Committee on Budgetary Control on the basis of Articles 8 and 9 of the internal rules;

2. Notes that

(a) ECU 33 499 844, which would otherwise have been cancelled, were the subject of the 'mopping-up transfers' procedure in order to reinforce Item 2000/3; these transfers were as follows:

- No. C7 (Committee on Budgets): ECU 5 764 444

- No. C8 (Committee on Budgetary Control): ECU 25 387 400

- No. P20 (within Chapter 20): ECU 2 348 000

(b) the cancellation rate for appropriations carried over from 1993 in accordance with the automatic carry-over procedure (Article 7(1)(b) of the Financial Regulation) is 14.20%, more than double the cancellation rate for the previous financial year (6.60% - ECU 6 695 300.69);

(c) commitments remaining to be disbursed at the end of the financial year and automatically carried over to 1995 represent 8.74% of total appropriations committed (corresponding rate for 1993/1994: 9.45% of appropriations committed);

3. Notes that the rate of utilization of appropriations in some chapters was appreciably lower than in the previous financial year: Chapter 22 (movable property and associated costs) - 92.5% (95.19% in 1993), Chapter 23 (current administrative expenditure) - 88.87% (94.84% in 1993), Chapter 24 (entertainment and representation expenses) - 86.00% (98.74% in 1993), Chapter 25 (expenditure on formal and other meetings) - 85.11% (88.67% in 1993), Chapter 26 (expenditure on studies, surveys and consultations) - 92.61% (95.94% in 1993) and Chapter 29 (subsidies and financial contributions) - 86.20% (97.63% in 1993);

4. Notes that over the last three financial years (1992, 1993 and 1994) during which 'mopping-up' transfers have been made, balances remaining on a number of lines have been used for such transfers, namely:

- several items in Chapter 10,

- Item 1170 (interpreters and conference technicians),

- Item 1191 (provisional appropriation),

- Item 2231 (replacement of vehicles),

- Item 2600 (limited consultations, studies and surveys),

and calls, therefore, on its Committee on Budgets to pay particular attention to the endowment of these lines when Parliament's 1996 budget is drawn up;

5. Notes that the budget headings from which fairly substantial sums were drawn under the 'mopping-up transfers' procedure include some headings which showed a deficit during the financial year and were consolidated by means of transfers of appropriations; appropriate explanations should be provided during the 1994 discharge procedure;

6. Notes a high cancellation rate for appropriations against:

- Item 2990 (organization of group visits) - 13.3%,

- Chapter 21 (data processing and telecommunications), in respect of which a call was made in its resolution of 11 March 1994 on the closure of Parliament's accounts for 1993 ((OJ C 91, 28.3.1994, p. 330.)) for an external audit to be conducted, - 3.9%, and Item 2311 (telephone, telex, telegraph, television) - 13.5%,

which could have been used for 'mopping-up' transfers and calls on its Committee on Budgets to pay particular attention to the endowment of these lines also when Parliament's 1996 budget is drawn up;

7. Reaffirms once again that financial management must be based on strict application of the provisions of the Financial Regulation, with particular regard to the annuality of appropriations and the need for commitments to be established before legally-binding obligations are entered into with third parties;

8. Notes that the lease of 30 March 1994 for the construction of the Chamber in Strasbourg was signed without the prior approval of the Financial Controller; calls on the Court of Auditors to draw up a report on this matter before 15 July 1995;

9. Notes that decisions entailing major financial implications for future budgets of Parliament have been taken without due regard for the Financial Perspective;

10. Notes that the firm of external consultants commissioned to draw up a report on the inventory has submitted the first part of the report, and awaits the report's conclusions;

11. Notes that Parliament's departments have carried out translations on behalf of Members of texts which are non-parliamentary and commercial in nature; notes that there is no budget heading against which any payments involved can be entered; objects, therefore, to the use of the departments referred to above for private purposes and calls on Parliament's Administration to pay particular attention to ensuring that the Translation Directorate carries out only parliamentary work;

12. Instructs its President to forward this resolution to the Commission and the Court of Auditors.