ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (85) 536 
 
 
 
Vol. 1985/0197 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the open ing to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom  27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C0M(85) 536 final
Brussels, 10 October 1985
INTERIM REPORT
on the action taken on the recommendations 
set out in the Resolution accompanying 
the Decision granting a discharge 
in respect of the financial management of the second, third, 
fourth and fifth European Development Funds 
for the 1983 financial year
(to be presented by the Commission to the European Parliament)
C0M(85) 536 final

THE COMMISSION'S REPLIES
TO THE VARIOUS POINTS SET OUT IN PARLIAMENT'S RESOLUTION

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PARLIAMENT'S POWERS AND RESPONSIBILITIES
Parliament)
Reaffirms its right to be consulted on proposals for regulations 
lating to the EDF and, in particular, the forthcoming financial 
'yulation for the sixth EDF.
Commission's reply
The Commission has to present a draft financial regulation concerning 
ihe sixth EDF to the Council. It is for the Council to take the 
necessary steps to consult the European Parliament. When, however, 
the Commission transmitted its draft to the Council, it proposed that 
Parliament be consulted.
ANNUAL ACCOUNTS
(Parliament)
7. notes that the annual accounts of each European Development Fund 
(EDF) have taken the form of a balance sheet, in which a summary of the 
year's transactions is included; whereas both the Internal Agreement 
and the Financial Regulation applicable to each EDF require the 
accounts to be in the form of a revenue and expenditure account and a 
separate balance sheet; calls upon the Commission, in order to achieve 
greater clarity and to comply with these requirements, to publish both 
a revenue and expenditure account and a balance sheet in future years;
Commission's reply
From the outset the Commission has presented 
separately a balance sheet and a revenue and expenditure account for 
each EDF in accordance with the accounting plan, which establishes a 
clear distinction between the accounts that enable the balance sheet to 
be drawn up and those which enable the revenue and expenditure account 
to be drawn up. These documents are published regularly in the 
Official Journal of the European Communities.
The Commission is convinced that the revenue and expenditure accounts 
and the balance sheets which is establishes every year faithfully 
reflect the rules of procedure and financial regulations applicable 
to the EDF.

(The European Parliament)
8. calls upon the Commission to publish with the annual EDF accounts 
the figures upon which they (sic) seek discharge, being a summary of 
the main items of the revenue and expenditure account and of the 
balance sheet for each EDF; requests the Court of Auditors to 
comment on such figures in its annual report;
Commission's reply
The Commission agrees to Parliament's request. For the 1985 financial 
year, it will attach to the balance sheets and the revenue and 
expenditure accounts of each EDF a proposal for discharge setting out 
the figures for which it requests that the discharge be granted, 
these figures being a summary of the main items in the documents 
referred to.
(The European Parliament)
9. regrets that the accounts for each EDF for the 1983 financial year 
were not approved by the Commission until 15 May 1984; whereas the 
relevant regulations require them to be submitted to the European 
Parliament, the Council and the Court of Auditors no later than
15 April; calls upon the Commission to adhere strictly to this 
deadline in future;
Commission's reply
The Commission endeavours every year to present the EDF accounts by 
the deadlines laid down in the financial regulations despite the 
serious administrative and technical constraints (translation into 
seven languages, preparation for publication).
The remarks made by the Court of Auditors for 1983 consequently 
implicitly demonstrate the major effort made by the Commission to 
minimize the time required to transmit the accounts at the end of 
the financial year.

The European Parliament)
0. Calls upon the Commission to ensure that the accounts of the European 
■■sociation for Cooperation (EAC) are closed on 31 December each year and that 
?  accounts of the ÉAC and other agencies responsible for managing EDF 
iolarships and in-service training are reconciled regularly with the 
~ r- accounts;
jmmission's reply
i) For 1983, the advances made to the EAC underwent a detailed audit and 
were cleared. These findings tallied perfectly with the corresponding 
entries in the EDF accounts under technical assistance.
(ii) There are however still difficulties in reconciling the figures,
particularly in the case of study and training awards, as a result of 
the difference in the way the entries have been made in the accounts.
In 1984 the efforts made to achieve a definitive reconciliation did not 
succeed owing to the difficulties which the EAC experienced in reconstructing, 
year by year from the beginning, the exact situation regarding revenue and 
expenditure. The Commission for its part has at its disposal all the 
accounting entries that have been recorded for each financial year, and 
these reflect a transparent situation.
As soon as the EAC is able to communicate definitive figures, the accounts 
can quickly be reconciled.
THE THIRD EDF
(The European Parliament)
12. Notes that 13.58 million ECU of the third EDF is still not allocated and 
a further 34.86 million ECU awaits payment; recommends the Commission to 
take no further funding decisions and to transfer the balance not yet 
allocated to the fifth EDF by the end of 1985;
13. Calls upon the Commission to close the accounts relating to all 
completed projects by the end of 1985 and thus release unused balances 
estimated at up to 5 million ECU.

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Commission's reply
(i) At 3 1  December 1983, from a  tota l allocation of 915.79 m illion E C U , 
financing decisions had been taken in respect of a  to ta l of
902.18 m illion E C U , leaving an unallocated balance of only
13.58 m illion E C U .
O f these 902.18 m illion E C U , contracts were concluded for
886.15 m illion E C U  and performed for 867.32 m illion E C U , i.e . 97.8%.
( ii)  In 1984, the situation developed favourably and produced the 
following figures: 916.51 m illion E C U  allocated and financing 
decisions worth 901.53 m illion E C U .
Of the la tte r sum, contracts were concluded for 889.63 m illion E C U , 
and the payments m ade totalled 875.61 m illion E C U , which raises 
the percentage to 98.4%.
For this sam e year, 22 projects were finalized, and 42 are s t i l l  
in the process of being finalized. At the end of the financial 
year, the degree of u tiliz a tio n  of the third  E D F  was as follows:
576 projects out of 697 were finalized, giving a  percentage of 
82.6%.
( i i i )  The Commission agrees to Parliament's request that, as far as 
possible, no further funding decisions should be taken under the 
Third ED F. The unused balances remaining after the finalization 
of the projects w ill be transferred at the end of 1985 to the 
fourth or f if t h  E D F.
(The European Parliament)
14. Calls upon the Commission to take effective action to ensure repayment 
of the loan of 4.5 m illion E C U , which has been outstanding from an A C P  
State since 1978, and to avoid any sim ilar situation in the future;
Commission's reply
Over a  number of years the Commission has been making untiring efforts to 
recover the advance of 4.5 m illion E C U  m ade to the Banana National Board 
in Somalia. Despite these e ffo rts , the Somali Government has refused to 
repay its  debt to the Commission, which has therefore proposed to the

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Somali authorities that this sum  be deducted from the appropriations s t i l l  
available under the third and fourth E O F . While this solution has been 
accepted in principle, there are s t i l l  d iffic u ltie s  as regards the exchange 
ate to be applied for refunding the advance. The Commission for its  part 
is determined to settle this matter as soon as possible, i f  necessary by 
resorting to measures of self-help.
C O N TR IB U TIO N S  
(The European Parliament)
28. Calls upon the Commission to annex to each year's E D F  accounts a  
lis t of the M em ber States w ho have failed to pay the ir contributions 
within 15 days of the due dates, showing against each the dates and 
amounts concerned and the dates and amounts when related payments were 
made;
Commission reply
Since 1983, the due dates for the contributions payable by the M em ber 
States have largely been observed. It does not therefore seem  necessary 
to draw up a  lis t of those in arrears (see also the reply to the 
following p o in t).
(The European Parliament)
29. Recom m ends to the Commission that they f  sic 1  should propose 
legislation enabling interest penalties to be imposed on those M em ber 
States w ho m ake late payments of their E D F  contributions;
Commission's reply
The draft financial regulation for the sixth E D F  contains an a rtic le  
which provides for the payment of interest penalties for contributions 
paid after the due date.
(The European Parliament)
30. Calls upon the Commission to review the system by which it  estimates 
the E D F  rates of disbursement and thereby to avoid calling up contributions 
unnecessari ly .

Commission's reply
The Commission always ensuresthat calls for contributions coincide as 
far as possible with the EDF's cash requirements. Errors of assessment 
may, however, occur. The system for estimating disbursements is 
consequently at present under examination to determine what improvements 
are required.