EN Official Journal of the European Union C 324/1

FINANCIAL ACTIVITY REPORT 2016

Section II — European Council and Council

(2017/C 324/01)

TABLE OF CONTENTS

1. INTRODUCTION 2

2. OBJECTIVES AND BUDGET FOR THE FINANCIAL YEAR 2016 2

2.1. Main financial objectives 2

2.2. Establishment of the budget for the European Council and Council in 2016 2

2.2.1. General approach 2

2.2.2. Budget 2016 3

2.2.3. Budget 2016 and the Financial Perspectives of Heading 5 of the EU Budget 3

3. GLOBAL OVERVIEW OF BUDGET IMPLEMENTATION IN 2016 5

3.1. Activities and objectives of the European Council and Council in 2016 5

3.1.1. Meetings 5

3.1.2. Legislative activities 5

3.1.3. Administrative modernisation 6

3.1.4. Achievement of objectives in 2016 6

3.2. Revenue 7

3.3. Expenditure in 2016 8

3.3.1. Modification of the budget in 2016 8

3.3.2. Overview of implementation of the budget in 2007-2016 10

3.3.3. Implementation of the appropriations by category in 2016 11

3.4. Appropriations carried over 13

3.4.1. Appropriations carried over automatically from 2015 to 2016 13

3.4.2. Appropriations carried over automatically from 2016 to 2017 14

3.4.3. Appropriations carried over by decision from 2015 to 2016 16

3.5. Assigned revenue 16

3.5.1. Assigned revenue accrued before 2016 16

3.5.2. Assigned revenue accrued in 2016 17

1. INTRODUCTION

In conformity with Article 142 of the Financial Regulation (FR) (1) this document constitutes a report on budgetary and financial management of Section II of the EU budget (European Council and Council) for the financial year 2016.

The report is based on the provisional accounts for 2016, the findings in the annual activity reports of the Council’s authorising officers and the budget implementation information from the Council’s financial system.

Chapter 2 of this report presents a summary of the framework which was established for the financial year 2016. A global overview on the implementation of the budget appropriations available in 2016 is given in chapter 3.

The implementation of the budget 2016 by budget line is presented in Annex.

2. OBJECTIVES AND BUDGET FOR THE FINANCIAL YEAR 2016

2.1. Main financial objectives

The main financial objectives of the General Secretariat of the Council for 2016 were:

— To ensure continuous support to the President of the European Council and to the Council by effective and efficient use of financial resources.

— To further proceed with the process of administrative modernisation with the objective to reinforce the quality of its organisation and proper use of resources.

— To continue to finance the construction of the Europa Building whose provisional reception took place on 30 June 2016.

2.2. Establishment of the budget for the European Council and Council in 2016

2.2.1. General approach

The establishment of the budget 2016 for the European Council and Council (EC/C hereafter) was based on the general objective not to exceed, in nominal terms, the overall level of the 2015 budget for non-salary-related expenditure.

Increases related to statutory or contractual obligations, or in domains which have been considered as essential for the proper functioning of the GSC, have been compensated by prioritising and reprogramming certain projects taking into account the budget implementation of the recent years.

As for the establishment plan, the GSC continued to streamline the organisation by implementing the following actions:

— reducing the number of posts in the establishment plan by 32 in line with the Commission’s proposal to reduce the staff level by 5 % over 5 years (4th year),

— transforming one AST 10, one AST 5 and one AST 3 posts into three AD 10 posts in order to respond to the needs of the President of the European Council (PEC),

— transforming 10 AST 5 posts into 10 AD 5 posts (continuation of the administrative modernisation),

— transforming 35 AST 1 posts into 35 SC 1 posts.

2.2.2. Budget 2016

The budget authority established the overall EC/C budget 2016 at EUR 545,1 million. This corresponds to an increase of EUR 3,3 million (+0,6 %) compared to 2015.

The number of posts in the establishment plan for 2016 for the EC/C was 3 040.

Table 1 gives an overview on the budget 2016 by different categories. Given the estimated inflation of 1,3 % for 2016, the EC/C budget was in fact reduced in real terms by 0,7 %.

Table 1

EC/C budget 2016 compared to 2015 (by category)

(EUR) Category Budget 2015 Budget 2016 Change 2016/2015 1 2 3=2/1 Establishment plan 297 827 000 299 452 000 0,5 % Other staff expenditure 23 941 000 23 850 000 -0,4 % Buildings (excluding acquisitions) 51 207 500 54 768 000 7,0 % Computer systems 38 488 000 40 300 000 4,7 % Furniture 2 664 000 1 016 000 -61,9 % Technical equipment 3 401 000 4 034 000 18,6 % Transport 1 868 000 854 000 -54,3 % Delegations’ travel expenses 17 802 000 17 802 000 0,0 % Interpreting costs 83 900 000 82 739 000 -1,4 % Meetings and conferences 7 638 000 6 483 000 -15,1 % Information 8 847 000 8 251 000 -6,7 % Miscellaneous 2 208 000 2 505 000 13,5 % Reserve 1 000 000 2 000 000 100,0 % Total (excl. acquisition) 540 791 500 544 054 000 0,6 % Acquisition of immovable property 1 000 000 1 000 000 0,0 % Grand total 541 791 500 545 054 000 0,6 %

2.2.3. Budget 2016 and the Financial Perspectives of Heading 5 of the EU Budget

Table 2 gives an overview on the evolution of the EC/C budget in 2009-2016. The EC/C share in Heading 5 of the Multiannual Financial Perspectives has declined from 7,9 % in 2009 to 5,7 % in 2016.

Table 2

Evolution of the Section II of the EU budget (European Council and Council) under Heading 5 of the Financial Perspectives in 2009-2016

(Amounts at current prices) 2009 (2) 2010 2011 2012 2013 2014 2015 2016 M€ change M€ change M€ change M€ change M€ change M€ change M€ change M€ change Heading 5 7 603 2,0 % 7 962 4,7 % 8 173 2,7 % 8 607 5,3 % 9 181 6,7 % 8 405 -8,5 % 8 661 3,0 % 9 483 9,5 % EC/C 603 1,3 % 634 5,1 % 563 -11,2 % 534 -5,2 % 536 0,3 % 534 -0,2 % 542 1,4 % 545 0,6 % EC/C share in Heading 5 7,9 % 8,0 % 6,9 % 6,2 % 5,8 % 6,4 % 6,3 % 5,7 %

The reduction in 2011 is mainly due to the transfer of resources to the EEAS, whereas the decreases in 2012 and 2014 relate to reductions of appropriations of certain activities in view of the previous years’ implementation and actual needs.

3. GLOBAL OVERVIEW OF BUDGET IMPLEMENTATION IN 2016

3.1. Activities and objectives of the European Council and Council in 2016

In the framework of the financial activity report, the GSC provides information on its core activities which are relevant from the financial point of view, and which describe the functioning of the European Council and Council during the financial year. It also highlights the principal accomplishments of the year.

3.1.1. Meetings

Table 3 gives an overview of the development of the number of meetings organised by the GSC for the European Council and Council between 2007 and 2016.

In 2016, in addition to the 3 759‘institutional’ meetings, the GSC organised a further 2 034 meetings (e.g. seminars, information sessions and briefings, and meetings with third countries).

Table 3

Development of the number of meetings in 2007-2016

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Summits 3 5 7 7 9 7 6 9 12 9 Councils 68 81 74 86 85 77 74 81 81 75 Coreper 106 144 140 122 135 140 140 135 138 109 Working groups 4 183 4 480 4 272 4 127 4 373 4 480 4 164 4 016 3 471 3 569 Total 4 360 4 710 4 493 4 342 4 602 4 704 4 384 4 241 3 702 3 762 Other meetings 1 735 2 051 2 021 1 996 2 075 2 189 2 027 2 189 2 271 2 034 Grand total 6 095 6 761 6 514 6 338 6 677 6 893 6 411 6 430 5 973 5 796

The year 2016 has been marked by various crises and more particularly by the terrorist attacks in Belgium, France and Germany, by the results of the British referendum in June and finally by further deepening of the migration and refugee crisis.

The total number of meetings organised by the GSC went down by 3 % (177) compared to 2015. It is explained mainly by lower legislative activity due to the simplification programme initiated by the European Commission.

Moreover, on 5 October 2016 the GSC hosted the ‘Brussels Conference on Afghanistan’. It brought together 75 countries and 26 international organisations to discuss their cooperation to achieve Afghanistan’s self-reliance in the transformation decade (2015-2024). The organisation of the event, which required significant security and logistic resources as well as an important diplomatic effort, was done together with the European External Action Service.

In addition, the Europa Building’s provisional reception took place on 30 June 2016. First meetings were held in the new building in November 2016.

3.1.2. Legislative activities

Another quantitative indicator of activities is the number of legal acts published in the Official Journal (OJ) (Table 4). In 2016, 1 259 legal acts were published in the OJ. It should be noted that the publication of the legal acts in the OJ is the last step of the legislative process.

Table 4

Development of the number of legal acts in 2007-2016

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Legal acts published in OJ 1 000 1 274 829 825 986 958 1 132 1 437 1 412 1 259

The simplification programme of the European Commission in the area of legislation is not yet reflected by a substantial decrease in the number of legal acts. In fact, this effect will be observed with a delay due to the length of the legislative procedures.

3.1.3. Administrative modernisation

In 2016, the GSC continued to improve the quality and efficiency of its organisation.

In January 2016, the Secretary General launched a process of reflexion on the modernisation of the GSC’s administration. The process included five task forces, discussions between SG and Directors-General, meetings with staff and Staff Committee. As a result, an ‘Action Plan for a More Dynamic, Flexible and Collaborative GSC’ was published in September 2016 which identified five priorities for the GSC:

— an effective administration for the President of the European Council and the European Council,

— better and more consistent support to the Council and its presidencies,

— improved internal and external communication and information,

— investment in people and management, and

— harnessing technology to improve the way the GSC works.

Moreover, 2016 was the year of new achievements in the area of GSC’s environmental policies. Since 25 January 2016 three of the GSC’s buildings — the Justus Lipsius, the Lex and the Crèche buildings — have been EMAS (3) registered by Brussels Environment (IBGE).

3.1.4. Achievement of objectives in 2016

Achievement of the objectives established for the budget year 2016 may be summarised as follows:

— Establishment plan In 2016, the GSC recruited 193 officials (169 permanent officials and 24 temporary agents). During the year 178 officials (138 permanent officials and 40 temporary agents) left, resulting in a net increase of 15 occupied posts in the EC/C establishment plan. The establishment plan was reduced by 32 as part of the reduction of the staffing level by 5 % over a period of 5 years.

— Financial management In 2016, the GSC continued to further improve its financial management and performance. Several new tools and reports have been put in place in order to facilitate data processing and increase visibility and communication between the GSC’s financial services. During 2016, several developments of the corporate financial governance were implemented, e.g.: — improvement of the quality of the information provided in the multiannual activity and budget planning (‘MABP’), — review of the functioning of the Project Evaluation Committee (‘CEP’) which resulted in a new decision simplifying the CEP framework, — strengthening of the legality of the procurement process, — review and adoption of charters describing in detail the tasks, rights and obligations of financial actors. In the context of improving the cash flow position of European businesses, the average payment delay of invoices in the GSC was 22 days in 2016, the maximum time limit being 30 calendar days (Directive 2011/7/EU of the European Parliament and of the Council (4)).

— Building policy The project to renovate the Residence Palace and convert it into the seat of the European Council (Europa Building) continued further in 2016. The provisional reception of the building took place on 30 June 2016 and the removal of delegations and of the part of the GSC services has been planned for the beginning of 2017.

3.2. Revenue

Table 5 gives an overview on the global outcome of revenue operations in 2016. The expression ‘Established rights 2015’ refers to the recovery orders which were made in 2015 but for which the recovery of the amounts took place only in 2016. The expression ‘Established rights 2016’ in turn corresponds to recoveries launched in 2016.

Table 5

Overview of revenue operations in 2016 budget

(EUR) Chapter Established rights 2015 Recovered revenues from 2015 Established rights 2016 Recovered revenues from 2016 Total established rights 2015+2016 Total recovered 2015+2016 To be recovered in 2017 1 2 3 4 5=1+3 6=2+4 7=5-6 4 0 Deductions from staff remuneration 0 0 28 357 553 28 357 553 28 357 553 28 357 553 0 4 1 Contributions to the pension scheme 390 995 64 771 24 705 607 24 703 660 25 096 602 24 768 430 328 171 5 0 Proceeds from the sale of movable and immovable property 25 000 0 16 629 14 328 41 629 14 328 27 301 5 1 Proceeds from letting and hiring 32 493 29 706 1 240 387 1 193 937 1 272 880 1 223 642 49 238 5 2 Revenue from investments or loans granted, bank and other interest 0 0 2 664 2 664 2 664 2 664 0 5 5 Revenue from the proceeds of services supplied and work carried out 8 859 1 366 839 972 807 900 848 832 809 266 39 566 5 5 Revenue from the proceeds of services supplied and work carried out (EEAS) 150 000 150 000 283 750 183 750 433 750 333 750 100 000 5 7 Other contrib. and refunds in connection with administ. operation 2 151 608 1 807 645 19 126 775 18 330 803 21 278 383 20 138 448 1 139 935 5 8 Miscellaneous compensation 0 0 703 283 692 678 703 283 692 678 10 604 5 9 Other revenue arising from administrative management 0 0 0 0 0 0 0 6 3 Contributions under specific agreements 0 0 1 178 789 1 178 789 1 178 789 1 178 789 0 7 0 Interest on late payments 0 0 0 0 0 0 0 9 0 Miscellaneous revenue 0 0 904 904 904 904 0 Total 2 758 955 2 053 488 76 456 313 75 466 965 79 215 268 77 520 453 1 694 815

The total volume of revenue operations in terms of established rights, i.e. issued recovery orders, was EUR 79,2 million in 2016. From this amount EUR 77,5 million was recovered during the financial year whereas EUR 1,7 million will be collected in 2017.

The majority of the total recovered revenues (69 % or EUR 53,1 million out of EUR 77,5 million) in 2016 relates to community taxes, levies and dues collected from the GSC’s personnel. From this amount EUR 28,3 million covers deductions from staff remuneration whereas EUR 24,8 million corresponds to contributions and transfers of pension rights to the pension scheme.

The remainder, or 31 % (EUR 24,4 million), is accrued from various administrative operations. This amount comes mainly from the following sources:

— Recovery of parts of the amounts paid to Member States in previous years for delegates’ travel expenses following their declarations for 2014 and 2015 (EUR 0,1 million and EUR 11,4 million respectively, Chapter 5 7).

— Recovery of payments by Member States for supplementary on-request interpretation into certain languages (EUR 4,9 million, Chapter 5 7).

— Contributions to the administrative costs arising within the framework of the ‘Schengen acquis’ with Iceland and Norway (EUR 1,2 million, Chapter 6 3).

— Contributions by other institutions and payments by Council officials for the Council crèche (EUR 1 million, Chapter 5 7).

— Proceeds from reimbursements related to buildings, inter alia the reimbursement by Belgian state of regional taxes unduly imposed since 2004 (EUR 1 million, Chapter 5 1).

— Payments by the Court of Justice, the Court of Auditors and the European University Institute in Florence as their contributions to the common financial system with the Council (EUR 0,9 million, Chapter 5 7).

— Proceeds from recovery of legal costs in cases won by the Council and damages paid to the Council (EUR 0,6 million, Chapter 5 7).

— Transfers from the EEAS to the Council as advanced reimbursement of the costs related to the organisation of the Brussels Conference on Afghanistan (EUR 0,6 million, Chapter 5 5).

— Transfers from the EEAS to the Council as advance payments for the services rendered by the GSC to the EEAS (EUR 0,3 million, Chapter 5 5).

— Proceeds from hiring premises and reimbursements related to them, inter alia the Commission’s part of rent of the EU Info Point in Brussels (EUR 0,2 million, Chapter 5 1).

3.3. Expenditure in 2016

3.3.1. Modification of the budget in 2016

During the financial year 2016, the appropriations were reallocated by different transfers. Table 6 shows the decisions which modified the budget appropriations in 2009-2016.

Table 6

Number of budget modifications by type in 2009-2016

Modification Type Legal basis 2009 2010 2011 2012 2013 2014 2015 2016 Amending budget FR Article 41 1 0 0 0 0 0 0 0 Transfer B FR Article 25 46 47 23 23 22 32 27 31 Transfer C FR Article 25 2 2 2 2 2 2 2 2 Transfer D FR Article 27 0 0 0 0 0 0 0 0 Total 49 49 25 25 24 34 29 33

The C-transfers, which involve informing the budget authority (in accordance with Article 25 of the Financial Regulation), were made to reinforce following subjects in 2016:

— C1-transfer of EUR 340 000 EUR on 1 August 2016 in order to: — finance the cost of nine additional contractual agents (FGII) as 24/7 security agents for the security centre in the Europa Building (EUR 150 000), — reinforce the envelope for travel expenses of staff related to the European Council (EUR 190 000).

— C2-transfer of EUR 20 000 000 on 14 December 2016 in order to: — cover the advance payment for the occupancy of the Kirchberg conference centre in Luxembourg (EUR 10 000 000), — cover the advance payment for the acquisition of the Europa Building (EUR 10 000 000).

In 2016, the EC/C budget was internally modified by 31 B-transfers based on Article 25(4) of the FR.

Table 7 gives an overview of the budget lines which were significantly (5) modified in 2016 by different transfers.

Table 7

Budget lines which were subject to significant transfers in 2016

(EUR) Item Heading Initial Budget 2016 Transfers Final appropriations Difference 1 1 0 1 Entitlements under the Staff Regulations 1 950 000 - 375 000 1 575 000 - 19 % 1 1 0 2 Entitlements under the Staff Regulations 57 214 000 300 000 57 514 000 1 % 1 1 0 3 Social security cover 9 032 000 375 000 9 407 000 4 % 1 1 0 6 Entitlements under the Staff Regulations 2 700 000 - 300 000 2 400 000 - 11 % 1 2 0 0 Other staff 9 189 000 350 000 9 539 000 4 % 1 2 0 3 Outside services 2 215 000 - 338 198 1 876 803 - 15 % 2 0 0 0 Rent 2 829 000 14 931 000 17 760 000 528 % 2 0 0 2 Acquisition of immovable property 1 000 000 10 005 000 11 005 000 1001 % 2 0 0 3 Fitting-out of premises 11 530 000 -4 092 000 7 438 000 - 35 % 2 0 0 4 Work to make premises secure 1 635 000 - 720 000 915 000 - 44 % 2 0 1 0 Cleaning and maintenance 19 100 000 -2 710 000 16 390 000 - 14 % 2 0 1 1 Water, gas, electricity and heating 4 990 000 - 700 000 4 290 000 - 14 % 2 0 1 2 Buildings security and surveillance 13 217 000 3 150 000 16 367 000 24 % 2 1 0 0 Acquisition of equipment and software 9 883 000 3 656 745 13 539 745 37 % 2 1 0 1 Outside assistance for computer systems 21 053 000 -2 656 087 18 396 913 - 13 % 2 1 0 2 Servicing and maintenance of equipment and software 7 384 000 -2 170 349 5 213 652 - 29 % 2 1 0 3 Telecommunications 1 980 000 - 330 309 1 649 691 - 17 % 2 2 0 0 Travel expenses of delegations 17 802 000 919 875 18 721 875 5 % 2 2 0 2 Interpreting costs 82 739 000 -17 014 875 65 724 125 - 21 % 2 2 0 4 Miscellaneous expenditure on internal expenses 5 462 000 -2 190 000 3 272 000 - 40 % 2 2 1 0 Documentation and library expenditure 1 361 000 300 000 1 661 000 22 % 2 2 1 1 Official Journal 4 000 000 -1 250 000 2 750 000 - 31 % 2 2 1 3 Information and public events 2 560 000 450 000 3 010 000 18 %

3.3.2. Overview of implementation of the budget in 2007-2016

The overall implementation rate of the EC/C budget has been on average 93,5 % over the past ten years (Graph 1). The implementation rate refers to the commitments made during the budget year out of the available voted budget.

The actual annual payments between 2007 and 2016 have been on average 81,7 % of the budget. The difference between the overall implementation and payments of a given year (i.e. non-paid commitments) has been carried over, in conformity with Article 13(4) of the Financial Regulation, to the next budget year for payments.

The carried-over appropriations break down into two major categories: functioning of the GSC and buildings. The first is related to obligations duly contracted before the end of the budget year but where the goods have not yet been delivered and/or for which no invoices have been received before the end of the year.

Graph 1

Global budget implementation in 2007-2016

(1) In 2009, the Council budget was reduced by Amending Budget No 10/2009 to the EU budget by EUR 40 million. The amount was transferred as the Council’s contribution to the European Economic Recovery Plan (EERP).

The second category refers to the GSC’s acquisition of buildings such as LEX, the crèche and the Europa Building. In the last few years, the GSC has been able to use the savings made during the budget implementation to finance these acquisitions.

In 2016, EUR 11 million was committed for the acquisition of the Europa Building. The amount has been carried over to 2017 for the actual payment.

3.3.3. Implementation of the appropriations by category in 2016

The analysis of expenditure in 2016 is presented at the level of 14 expenditure categories.

Table 8 compares the final budget after transfers (column 2) with the outturn of the budget in terms of commitments (column 3). The difference between the final budget and the committed appropriations corresponds to the amounts not used in 2016 and therefore cancelled.

Table 8

Overview of the implementation of the 2016 budget (by category)

(EUR) Category Budget 2016 (initial) Budget 2016 (final (6)) Commitments Outturn rate Cancelled appropriations 1 2 3 4=3/2 5=2-3 Establishment plan 299 452 000 299 452 000 294 763 749 98,4 % 4 688 251 Other staff expenditure 23 850 000 24 190 000 21 892 936 90,5 % 2 297 064 Buildings (excluding acquisitions) 54 768 000 64 613 000 62 236 358 96,3 % 2 376 642 Computer systems 40 300 000 38 800 000 38 718 637 99,8 % 81 363 Furniture 1 016 000 1 016 000 666 719 65,6 % 349 281 Technical equipment (7) 4 034 000 4 034 000 3 836 894 95,1 % 197 106 Transport 854 000 854 000 840 810 98,5 % 13 190 Delegations’ travel expenses 17 802 000 18 721 875 16 609 174 88,7 % 2 112 701 Interpreting costs 82 739 000 65 724 125 57 587 693 87,6 % 8 136 432 Meetings and conferences 6 483 000 4 388 000 3 567 894 81,3 % 820 106 Information 8 251 000 7 751 000 6 480 322 83,6 % 1 270 678 Miscellaneous 2 505 000 2 505 000 1 077 940 43,0 % 1 427 060 Reserve 2 000 000 2 000 000 0 0,0 % 2 000 000 Total (excl. acquisition) 544 054 000 534 049 000 508 279 126 95,2 % 25 769 874 Acquisition of immovable property 1 000 000 11 005 000 11 005 000 100,0 % 0 Grand total 545 054 000 545 054 000 519 284 126 95,3 % 25 769 874

The global implementation rate of the 2016 budget is 95,3 %. The difference between the final budget and implementation can be explained as follows:

— The total underspending in the category of establishment plan amounts to EUR 4,7 million. This underspending relates mainly to the fact that it was not necessary to activate the provisional appropriations (EUR 2,7 million). Other elements explaining the underspending are lower need for different statutory entitlements (EUR 1 million), lower needs for basic salaries (EUR 0,7 million) and lower expenditure relating to overtime (EUR 0,3 million).

— In the category of other staff expenditure, 50 % of the underspending (EUR 1,1 million out of EUR 2,2 million) relates to fewer payments for contractual agents, seconded national experts and other outside services. Smaller spending in mission-related costs corresponds to a saving of EUR 0,5 million. In the area of the President of the European Council, a saving of EUR 0,3 million comes from underspending of the travel budget and allowances. The remainder of EUR 0,3 million is mostly related to minor savings in the areas of childcare facilities as well as medical and social services.

— The global implementation of the building-related expenditure resulted in a saving of EUR 2,4 million. From this amount EUR 2,1 million is due to lower costs in building maintenance and cleaning, consumption of water, gas and electricity due to the delayed delivery of the Europa Building. The remaining EUR 0,3 million comes from savings in certain fitting-out, installation and security works.

— In the IT domain the budget implementation was almost 100 %. The underspending of EUR 0,1 million is mainly due to lower need for outside assistance.

— The underspending of EUR 0,3 million in furniture relates mainly to the re-estimation of costs related to the furniture for the new warehouse and to the postponing of the purchase of furniture for the Visitors Centre to 2017 due to delayed delivery of the Europa Building.

— EUR 0,2 million saving in technical equipment is mainly due to a lower need for security installations.

— As for the transportation, the budget implementation was almost 100 %.

— The implementation of the delegations’ travel expenses resulted in a saving of EUR 2,1 million. The amount available for delegations’ travel expenses after transfers amounted to EUR 27,3 million. The initial budget was EUR 17,8 million to which EUR 11,3 million was transferred from the savings in some interpretation envelopes. On the other hand, during the year EUR 1,8 million was transferred to finance supplementary interpretation in certain languages. In addition, EUR 7,5 million were transferred to finance the advance payment for the occupancy of the Kirchberg Conference Centre in Luxembourg. Since the Member States had to reimburse unused amounts from previous years, only EUR 16,6 million was committed for subsequent payments in the 2016 budget.

— The underspending in appropriations for interpretation amounts to EUR 8 million. It should be noted that this underspending is the final result after the transfer of EUR 11,3 million from interpretation envelopes to delegations’ travel envelopes (8) and of EUR 10 million for the advance payment for the Europa Building. The final result includes also a transfer back of EUR 1,8 million from some travel envelopes to cover the supplementary interpretation in certain languages.

— EUR 0,4 million out of the total underspending of EUR 0,8 million in organising meetings and conferences reflects a lower contract price for catering in 2016 and fewer meetings in 2016 than was foreseen in the budget. Lower needs for specific travel expenses have allowed for an additional saving of EUR 0,2 million. Finally, smaller needs for renting of external conference and meeting rooms as well as smaller accreditations costs allowed savings of EUR 0,2 million.

— The implementation rate of the appropriations in the category ‘Information’ was 83,6 % which results in a saving of EUR 1,3 million. From this amount EUR 0,5 million corresponds to the lower number of co-decision and other legal acts published in the Official Journal in 2016 and EUR 0,3 million saving relates to delayed opening of the Visitors Centre. Lower number of high-level events than originally budgeted allowed a EUR 0,3 million saving in the area of host broadcasting. Finally, the remaining EUR 0,2 million comes mainly from a smaller need for publications, media monitoring, and online activities.

— In the category miscellaneous, the underspending of EUR 1,4 million is explained mainly by lower expenditure in the area of legal expenses (EUR 0,7 million) due to the lower than anticipated number of anti-dumping cases notified to the Council; to the delayed removal to the Europa Building (EUR 0,3 million); smaller needs for uniforms (EUR 0,2 million) and smaller needs for office supplies, paper, studies, and postal charges (EUR 0,2 million).

3.4. Appropriations carried over

3.4.1. Appropriations carried over automatically from 2015 to 2016

As presented in Table 9, an amount of EUR 45,5 million was carried over from 2015 to 2016.

Table 9

Implementation of appropriations carried over from 2015 to 2016 (by category)

(EUR) Category Appropriations carried over from 2015 Payments 2016 Outturn rate Cancelled appropriations 1 2 3=2/1 4=1-2 Establishment plan 400 792 322 693 80,5 % 78 099 Other staff expenditure 2 419 483 1 894 752 78,3 % 524 731 Buildings 10 156 193 8 027 494 79,0 % 2 128 699 Computer systems 16 755 734 16 046 099 95,8 % 709 635 Furniture 411 957 400 857 97,3 % 11 100 Technical equipment 893 975 816 452 91,3 % 77 523 Transport 377 616 255 158 67,6 % 122 458 Delegations’ travel expenses 359 415 0 0,0 % 359 415 Interpreting costs 6 567 275 2 331 420 35,5 % 4 235 854 Meetings and conferences 818 658 614 360 75,0 % 204 298 Information 1 696 343 1 491 684 87,9 % 204 659 Miscellaneous 4 676 774 4 571 426 97,7 % 105 348 Reserve 0 0 Total 45 534 215 36 772 396 80,8 % 8 761 819

The implementation rate of the appropriations carried over from 2015 was 80,8 %. The main reasons for this implementation rate are:

— Partial or complete lack of delivery of works/goods/services ordered by the GSC during the previous year.

— Invoices not received for works/goods/services delivered. It should be noted that this inevitably constitutes a budgetary burden for the next budget year as for these transactions new commitments will have to be introduced in 2017.

3.4.2. Appropriations carried over from 2016 to 2017

The appropriations carried over from 2016 to 2017 totalled EUR 62,7 million.

Table 10

Appropriations carried over from 2016 to 2017 (by category)

(EUR) Category Budget 2016 (initial) Budget 2016 (final (9)) Commitments Appropriations carried over to 2017 Carry-over rate 1 2 3 4 5=4/3 Establishment plan 299 452 000 299 452 000 294 763 749 425 000 0,1 % Other staff expenditure 23 850 000 24 190 000 21 892 936 1 769 152 8,1 % Buildings 54 768 000 64 613 000 62 236 358 12 907 800 20,7 % Computer systems 40 300 000 38 800 000 38 718 637 20 127 797 52,0 % Furniture 1 016 000 1 016 000 666 719 577 836 86,7 % Technical equipment (10) 4 034 000 4 034 000 3 836 894 2 652 474 69,1 % Transport 854 000 854 000 840 810 295 754 35,2 % Delegations’ travel expenses 17 802 000 18 721 875 16 609 174 0 0,0 % Interpreting costs 82 739 000 65 724 125 57 587 693 10 024 525 17,4 % Meetings and conferences 6 483 000 4 388 000 3 567 894 536 958 15,0 % Information 8 251 000 7 751 000 6 480 322 1 995 546 30,8 % Miscellaneous 2 505 000 2 505 000 1 077 940 360 915 33,5 % Reserve 2 000 000 2 000 000 0 0 — Total (excl. acquisition) 544 054 000 534 049 000 508 279 126 51 673 757 10,2 % Acquisition of immovable property 1 000 000 11 005 000 11 005 000 11 001 199 100,0 % Grand total 545 054 000 545 054 000 519 284 126 62 674 956 12,1 %

The carried-over amounts from 2016 to 2017 mainly come from the following categories:

— Computer systems by EUR 20,1 million, of which EUR 9,9 million relates to outside assistance, EUR 8,5 million to equipment and software, EUR 1,1 million to telecommunications and EUR 0,5 million to IT service and maintenance.

— Buildings by EUR 12,9 million where different fitting-out works cover EUR 6 million, cleaning and maintenance EUR 3,3 million, security and prevention EUR 1,8 million, electricity, water, gas and heating together another EUR 1,3 million and EUR 0,5 million of other expenditure related to buildings, e.g. building studies and audits.

— Acquisition of immovable property by EUR 11 million to cover the advance payment for the Europa Building.

— EUR 10,2 million to cover the cost of interpretation provided in November-December 2016, but for which the final invoice arrives in 2017.

— Technical equipment by EUR 2,7 million out of which EUR 1,3 million concerns purchase and maintenance of conference equipment, EUR 0,9 million purchase of audio-visual equipment for the Press Service, EUR 0,2 purchase and maintenance of equipment for restaurants and canteens, EUR 0,2 million to security equipment and EUR 0,2 million to other equipment.

— EUR 2 million related to information expenditure of which EUR 1,4 million concerns information and public events as well as Council publications and EUR 0,6 million documentation and library expenditure.

— Other staff expenditure by EUR 2 million especially in relation to training (EUR 0,7 million), medical service and crèches (EUR 0,4 million), outside assistance (EUR 0,3 million) and missions (EUR 0,2 million).

— Furniture by EUR 0,6 million in relation to the Europa Building equipment.

— Meetings and conferences by EUR 0,5 million mostly relating to invoices not yet received for organising European Council and Council meetings in 2016.

3.4.3. Appropriations carried over by decision from 2015 to 2016

As presented in Table 11, an amount of EUR 1,8 million was carried over by decision from 2015 to 2016, accordingly to the provisions of Article 13(2) of the Financial Regulations (FR) and Article 4 of the Rules of Application (RAP).

Table 11

Appropriations carried over by decision from 2015 to 2016 (by category)

(EUR) Category Appropriations carried over by decision from 2015 Commitments 2016 Outturn rate Cancelled appropriations Payments 2016 Carried over for payment to 2017 1 2 3=2/1 4=1-2 2 2 Furniture 1 431 000 1 427 979 99,8 % 3 021 1 272 489 155 490 Technical equipment 390 000 388 998 99,7 % 1 002 331 953 57 045 Total 1 821 000 1 816 977 99,8 % 4 023 1 604 442 212 535

The amount is related to investment costs linked to the Europa Building (furniture and technical equipment) which were initially budgeted for 2015. Due to delayed delivery of the Europa Building, it was not possible to sign the purchase orders in 2015.

The implementation rate of the appropriations carried over by decision was 99,8 %. Out of the amount committed, EUR 1,6 million was paid in 2016 and the remaining amount was carried over to 2017 for payment.

3.5. Assigned revenue

3.5.1. Assigned revenue accrued before 2016

The total amount of assigned revenue accrued before 2016 was EUR 19,5 million.

Table 12

Implementation of assigned revenue accrued before 2016 (by category)

(EUR) Category Assigned revenues before 2016 Payments 2016 Outturn rate Cancelled assigned revenues 1 2 3=2/1 4=1-2 Establishment plan 1 196 688 1 195 452 99,9 % 1 236 Other staff expenditure 1 435 464 1 410 321 98,2 % 25 143 Buildings 626 739 605 163 96,6 % 21 576 Computer systems 470 891 460 380 97,8 % 10 511 Furniture 1 488 1 475 0,0 % 14 Technical equipment 45 000 44 996 100,0 % 4 Transport 38 319 33 183 86,6 % 5 136 Delegations’ travel expenses 9 707 699 9 707 698 100,0 % 1 Interpreting costs 5 565 872 5 565 872 100,0 % 0 Meetings and conferences 147 877 147 057 99,4 % 820 Information 150 002 150 002 100,0 % 0 Miscellaneous 180 265 153 527 85,2 % 26 739 Total EC/C 19 566 304 19 475 126 99,5 % 91 179 SLAs with EEAS 41 083 41 083 100,0 % 0 Grand total 19 607 387 19 516 209 99,5 % 91 179

Assigned revenue related to the GSC’s activities totalled EUR 19,6 million, from which EUR 19,5 million was paid. The remainder, EUR 0,1 million, was cancelled in conformity with Article 14 of the FR.

Another part, EUR 0,05 million, of the assigned revenue accrued before 2016 relates to amounts transferred by the EEAS in 2015 to the Council to cover the expenses of the services defined in different Service Level Agreements (SLAs) between the two institutions and rendered by the GSC. The total amount of EUR 0,05 million was paid in 2015.

3.5.2. Assigned revenue accrued in 2016

The total assigned revenue accrued in 2016 totalled to EUR 24,3 million. From this, EUR 229 000 corresponds to amounts transferred by the EEAS to the Council.

Table 13

Implementation of assigned revenue accrued in 2016 (by category)

(EUR) Category Assigned revenues 2016 Commitments 2016 Payments2016 Available assigned revenue 1 2 3 4=1-3 Establishment plan 1 623 169 401 218 310 221 1 312 947 Other staff expenditure 1 398 119 203 334 122 711 1 275 407 Buildings 1 626 348 174 240 107 167 1 519 181 Computer systems 1 683 750 45 000 45 000 1 638 750 Furniture 4 635 0 0 4 635 Technical equipment 238 527 97 820 79 170 159 357 Transport 17 754 3 425 0 17 754 Delegations’ travel expenses 11 544 777 0 0 11 544 777 Interpreting costs 4 938 885 0 0 4 938 885 Meetings and conferences 179 166 90 646 71 282 107 883 Information 200 648 72 451 53 268 147 379 Miscellaneous 630 895 0 0 630 895 Total EC/C 24 086 671 1 088 133 788 821 23 297 851 SLAs with EEAS 304 230 219 036 154 046 150 184 Grand total 24 390 901 1 307 169 942 867 23 448 035

The assigned revenue 2016 relating to the activities of the GSC amounted to EUR 24,3 million. During the financial year EUR 0,9 million was used while EUR 23,4 million was carried over to 2017 in accordance with Article 14 of the FR.

Around 48 % of assigned revenue is related to the delegations’ travel expenses (EUR 11,5 million). The amount of EUR 4,9 million in interpretation comes from the top-up payments on certain languages to cover the supplementary interpretation in those languages. The remainder is mainly related to reimbursement of amounts connected with various administrative operations of the Council.

(1) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

(2) The final budget after the reduction of EUR 40 million for the European Economic Recovery Plan in December 2009 was EUR 563 million.

(3) EMAS: eco-management and audit scheme as defined in Regulation (EC) No 1221/2009 of the European Parliament and of the Council (OJ L 342, 22.12.2009, p. 1). It is a voluntary scheme designed for organisations keen to evaluate, manage and improve their environmental performance.

(4) Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (OJ L 48, 23.2.2011, p. 1).

(5) Net amount > EUR 300 000.

(6) Includes internal reallocation of appropriations

(7) Includes carry-over by decision of EUR 350 000 (commitments)

(8) In conformity with Decision 111/07, the GSC transfers 66 % of the unused amounts of interpretation language envelopes to the delegates’ travel envelopes to be used during the same budget year. In 2016, this corresponded to an amount of EUR 11,3 million.

(9) Includes internal reallocation of appropriations

(10) Includes carry-over by decision of 350 000 EUR (commitments and appropriations carried over to 2017)