FINANCIAL ACTIVITY REPORT 2018 —

Section II — European Council and Council

(2019/C 272/01)

TABLE OF CONTENTS

1. INTRODUCTION 3

2. OBJECTIVES AND BUDGET FOR THE FINANCIAL YEAR 2018 3

2.1. Main financial objectives 3

2.2. Establishment of the budget for the European Council and Council in 2018 3

2.2.1. General approach 3

2.2.2. Budget 2018 4

2.2.3. Budget 2018 and the Financial Perspectives of Heading 5 of the EU Budget 4

3. GLOBAL OVERVIEW OF BUDGET IMPLEMENTATION IN 2018 6

3.1. Activities and objectives of the European Council and Council in 2018 6

3.1.1. Meetings 6

3.1.2. Legislative activities 7

3.1.3. Administrative modernisation 7

3.1.4. Achievement of objectives in 2018 8

3.2. Revenue 8

3.3. Expenditure in 2018 11

3.3.1. Modification of the budget in 2018 11

3.3.2. Overview of implementation of the budget in 2010– 2018 13

3.3.3. Implementation of the appropriations by category in 2018 14

3.4. Appropriations carried over 23 16

3.4.1. Appropriations carried over automatically from 2017 to 2018 16

3.4.2. Appropriations carried over from 2018 to 2019 17

3.4.3. Appropriations carried over by decision from 2017 to 2018 19

3.4.4. Appropriations carried over by decision from 2016 to 2017 carried over for payment to 2018 19

3.5. Assigned revenue 20

3.5.1. Assigned revenue accrued before 2018 20

3.5.2. Assigned revenue carried over for payment from 2017 21

3.5.3. Assigned revenue accrued before 2018 carried over to 2019 for payment 22

3.5.4. Assigned revenue accrued in 2018 22

1. INTRODUCTION

In conformity with Article 249 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (1) (‘Financial Regulation’ — FR) (Article 142 of the Financial Regulation in force till 2018 (2)) 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 2018.

The report is based on the provisional accounts for 2018, 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 2018. A global overview of the implementation of the budget appropriations available in 2018 is given in Chapter 3.

The implementation of the budget 2018 by budget line is presented in Annex.

2. OBJECTIVES AND BUDGET FOR THE FINANCIAL YEAR 2018

2.1. Main financial objectives

The main financial objectives of the General Secretariat of the Council for 2018 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 settle the final cost of the Europa Building with the Belgian government.

2.2. Establishment of the budget for the European Council and Council in 2018

2.2.1. General approach

The establishment of the budget 2018 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 2017 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:

— transforming 25 AST (10 AST5, 5 AST4, 5 AST3, 5 AST2) posts into 25 SC posts (10 SC2 and 15 SC1), 20 AST posts (10 AST7 and 10 AST6) into 20 AD posts (10 AD7 and 10 AD5) and one AD12 temporary post into a permanent AD12 post as part of the continuation of the administrative modernisation,

— transfer of 1 AD5 and 1 AST1 post to the Commission as part of the arrangement on the organisation and operation of a computer emergency response team for EU institutions, bodies and agencies (CERT-EU),

— addition of 4 AD5 and 2 AST1 post to reflect the new language regime of the Irish translation, as instructed by the Commission.

2.2.2. Budget 2018

The budget authority established the overall EC/C budget 2018 at EUR 572,9 million. This corresponds to an increase of EUR 11,3 million (+ 2,0 %) compared to 2017.

The number of posts in the establishment plan for 2018 for the EC/C was fixed at 3031.

Table 1 gives an overview on the budget 2018 by different categories.

Table 1

EC/C budget 2018 compared to 2017 (by category)

(EUR) Category Budget 2017 Budget 2018 Change 2018/2017 with EB (3) 1 2 3=2/1 Establishment plan 315 446 000 328 800 000 4,2 % Other staff expenditure 24 878 000 24 359 000 –2,1 % Buildings (excluding acquisitions) 57 789 000 56 360 377 –2,5 % Computer systems 42 800 000 41 300 000 –3,5 % Furniture 942 000 733 000 –22,2 % Technical equipment 3 659 000 4 344 000 18,7 % Transport 1 048 000 1 496 000 42,7 % Delegations’ travel expenses 17 802 000 17 802 000 0,0 % Interpreting costs 79 816 000 79 316 000 –0,6 % Meetings and conferences 4 984 000 4 945 000 –0,8 % Information 8 285 000 10 152 000 22,5 % Miscellaneous 2 127 000 1 787 000 –16,0 % Reserve 2 000 000 1 500 000 –25,0 % Total (excl. acquisition) 561 576 000 572 894 377 2,0 % Acquisition of immovable property — — Grand total 561 576 000 572 894 377 2,0 %

2.2.3. Budget 2018 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 2010– 2018. The EC/C share in the Heading 5 of the multiannual financial perspectives has declined from 8,0 % in 2010 to 5,5 % in 2018.

Table 2

Evolution of the Section II of the EU budget (European Council and Council) under Heading 5 of the Financial Perspectives in 2010– 2018

2010 2011 2012 2013 2014 2015 2016 2017 2018 (Amounts at current prices) M€ change M€ change M€ change M€ change M€ change M€ change M€ change M€ change M€ change Heading 5 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 % 9 921 4,6 % 10 346 4,3 % EC/C 634 5,1 % 563 –11,2 % 534 –5,2 % 536 0,3 % 534 –0,2 % 542 1,4 % 545 0,6 % 562 3,0 % 573 2,0 % EC/C share in Heading 5 8,0 % 6,9 % 6,2 % 5,8 % 6,4 % 6,3 % 5,7 % 5,7 % 5,5 %

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 2018

3.1. Activities and objectives of the European Council and Council in 2018

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. The report 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 2010 and 2018.

In 2018, in addition to the 4 604‘institutional’ meetings, the GSC organised 3 129 other meetings (e.g. seminars, information sessions and briefings, and meetings with third countries).

Table 3

Development of the number of meetings in 2010– 2018

2010 2011 2012 2013 2014 2015 2016 2017 2018 Summits 7 9 7 6 9 12 9 11 15 Councils 86 85 77 74 81 81 75 77 75 Coreper 122 135 140 140 135 138 109 105 117 Coreper Art. 50 22 29 Working groups 4 127 4 373 4 480 4 164 4 016 3 471 3 569 4 039 4 304 Ad hoc working group Art. 50 32 61 Total 4 342 4 602 4 704 4 384 4 241 3 702 3 762 4 290 4 604 Other meetings 1 996 2 075 2 189 2 027 2 189 2 271 2 034 3 030 3 129 Grand total 6 338 6 677 6 893 6 411 6 430 5 973 5 796 7 320 7 733

The year 2018 has been marked by continuous work aiming to finalise procedure for the signature and conclusion of the agreement on the UK’s withdrawal from the EU.

The total number of meetings organised by the GSC went up by 6 % (413) compared to 2017. It is explained mainly by the increased activity of the presidency of the second semester and the activity of the ad hoc working group on Brexit.

Moreover, on 25 April 2018 the GSC hosted the second conference on ‘Supporting the future of Syria and the Region’. It brought together 57 countries, 10 regional organisations and 19 UN agencies to discuss the situation in Syria and the impact of the crisis in the region. 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 Commission Directorate-General Neighbourhood.

In addition, the 12th Asia-Europe Meeting (ASEM) summit took place on 18-19 October 2018. It brought together leaders of 51 European and Asian countries, EU representatives and the Secretary-General of the Association of Southeast Asian Nations (ASEAN). The Heads of State and Government discussed how to further strengthen dialogue and cooperation between the two continents on a wide range of areas, such as trade and investment, connectivity, sustainable development and climate.

The GSC was able to meet the increased need for meetings by using the higher meeting room availability offered by the Europa Building, which since already the previous year accommodates all types of meetings and not only high-level meetings.

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 2018, 1210 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 2010– 2018

2010 2011 2012 2013 2014 2015 2016 2017 2018 Legal acts published in OJ 825 986 958 1 132 1 437 1 412 1 259 1 187 1 210

3.1.3. Administrative modernisation

In 2018, the GSC continued to improve the quality and efficiency of its internal organisation.

Progress on implementation of Action Plan

In 2018, the GSC continued the implementation of the Secretary-General ‘Action Plan for a more dynamic, flexible and collaborative GSC’ (presented on 27 September 2016) which identifies 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.

Almost all actions were finalised by 2018 or had taken on a continuous ongoing character.

The main achievements of the ‘Action Plan’ in 2018 are:

— GSC’s Digital Service Strategy,

— Vademecum on External Relations,

— GSC service package for the presidency,

— Administrative modernisation (including staff survey, 360o feedback for managers and learning management system for the EU institutions (EU-Learn)),

— Major reorganisation of GSC services in order to improve the efficiency of different functions of the organisation.

3.1.4. Achievement of objectives in 2018

Achievement of the objectives established for the budget year 2018 may be summarised as follows:

— Establishment plan In 2018, the GSC recruited 137 officials (74 permanent officials and 63 temporary agents). During the year 184 officials (154 permanent officials and 30 temporary agents) left, resulting in a net decrease of 47 occupied posts in the EC/C Establishment Plan.

— Financial management In 2018, the GSC continued to further improve its financial management and performance. Several improvements of the corporate financial governance were implemented, e.g.: — establishment of an Advisory Management Board, composed of senior managers from different departments and the Chair of the Staff Committee. Its role is two-fold, firstly advise on strategic priorities and monitor the progress of the chosen ones and, secondly, help prioritise resources and ensure the GSC is well aligned with its mission, — creation of a Task Force Reorganisation to examine the impact on the financial management of the GSC reorganisations that took place on 1 June and 1 July and to support the services in creating and implementing adequate financial structures, — review of the ‘Internal rules for the implementation of appropriations entered into Section II of the general budget of the European Union’ following the publication of a new Financial Regulation, — adoption of guidelines for a Common Project and Task Force Management Framework (CPMF) aiming at providing guidance for organising horizontal teams in compliance with the Staff Regulations and the Financial Regulation, defining a small set of effective and light practices. In the context of improving the cash flow position of European businesses, the average payment delay of invoices in the GSC was 21 days in 2018, the maximum time limit being 30 calendar days (Directive 2011/7/EU of the European Parliament and of the Council (4)).

— Building Policy During 2018, intensive negotiations took place as the Belgian authorities informed the Secretariat that despite the agreement on the final price of the project Europa building, the Belgian state would not proceed with the sale of the four adjacent plots of land. Both parties came to an agreement on an alternative solution which resulted in a decreased amount for the final payment (see point 3.4.3).

3.2. Revenue

Table 5 gives an overview on the global outcome of revenue operations in 2018. The expression ‘Established rights 2017’ refers to the recovery orders which were made in 2017 but for which the recovery of the amounts took place only in 2018. The expression ‘Established rights 2018’ in turn corresponds to recoveries launched in 2018.

Table 5

Overview of revenue operations in 2018 budget

(EUR) Chapter Established rights 2017 Recovered revenues from 2017 Established rights 2018 Recovered revenues from 2018 Total established rights 2017+2018 Total recovered 2017+2018 To be recovered in 2019 1 2 3 4 5=1+3 6=2+4 7=5– 6 4 0 Deductions from staff remuneration 0 0 30 454 292 30 454 292 30 454 292 30 454 292 0 4 1 Contributions to the pension scheme 223 436 127 312 25 753 759 25 752 178 25 977 195 25 879 490 97 705 5 0 Proceeds from the sale of movable and immovable property 1 913 1 913 7 300 2 550 9 213 4 463 4 750 5 1 Proceeds from letting and hiring 34 297 34 297 667 694 421 285 701 991 455 582 246 410 5 2 Revenue from investments or loans granted, bank and other interest 0 0 3 809 3 809 3 809 3 809 0 5 5 Revenue from the proceeds of services supplied and work carried out 104 455 104 455 704 463 428 001 808 917 532 456 276 461 5 5 Revenue from the proceeds of services supplied and work (EEAS) 100 000 100 000 397 124 297 124 497 124 397 124 100 000 5 7 Other contributions and refunds in connection with administ. operation 1 504 160 1 074 878 20 132 298 19 972 853 21 636 458 21 047 731 588 728 5 8 Miscellaneous compensation 0 0 48 334 48 304 48 334 48 304 30 5 8 Miscellaneous compensation (EEAS) 0 0 0 0 0 0 0 5 9 Other revenue arising from administrative management 0 0 0 0 0 0 0 6 3 Contributions under specific agreements 9 935 9 935 1 213 693 1 213 693 1 223 628 1 223 628 0 7 0 Interest on late payments 0 0 243 243 243 243 0 9 0 Miscellaneous revenue 0 0 0 0 0 0 0 Total 1 978 196 1 452 790 79 383 010 78 594 333 81 361 206 80 047 123 1 314 083

The total volume of revenue operations in terms of established rights, i.e. issued recovery orders, was EUR 81,4 million in 2018. From this amount EUR 80,0 million was recovered during the financial year whereas EUR 1,3 million will be collected in 2019.

The majority of the total recovered revenues (71 % or EUR 56,4 million out of EUR 80,0 million) in 2018 relates to community taxes, levies and dues collected from the GSC’s personnel. From this amount EUR 30,5 million covers deductions from staff remuneration whereas EUR 25,9 million corresponds to contributions and transfers of pension rights to the pension scheme.

The remainder, or 29 % (EUR 23,6 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 2017 and 2018 (EUR 0,4 million and EUR 6,7 million respectively, Chapter 5 7).

— Recovery of payments by Member States for supplementary on-request interpretation into certain languages (EUR 11 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 0,9 million, Chapter 5 7).

— 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 0,7 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 Syria (EUR 0,2 million, Chapter 5 5).

— Proceeds from recovery of legal costs in cases won by the Council and damages paid to the Council (EUR 0,01 million, Chapter 5 7).

— Transfers from the EEAS to the Council as advance payments for the services rendered by the GSC to the EEAS (EUR 0,4 million, Chapter 5 5).

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

3.3. Expenditure in 2018

3.3.1. Modification of the budget in 2018

During the financial year 2018, the appropriations were reallocated by different transfers. Table 6 shows the decisions which modified the budget appropriations in 2010– 2018.

Table 6

Number of budget modifications by type in 2010– 2018

Modification Year Type Legal basis 2010 2011 2012 2013 2014 2015 2016 2017 2018 Amending budget FR Article 41 0 0 0 0 0 0 0 0 0 Transfer B FR Article 25 47 23 23 22 32 27 31 45 52 Transfer C FR Article 25 2 2 2 2 2 2 2 1 2 Transfer D FR Article 27 0 0 0 0 0 0 0 0 0 Total 49 25 25 24 34 29 33 46 54

Two C-transfers, which involved informing the budget authority (in accordance with Article 25 of the Financial Regulation (Article 29 of the 2018 Financial Regulation), were made in 2018:

— C1-transfer of EUR 990 000 on 23 July 2018 in order to: — Finance the additional transport needs related to the 12th Asia Europe Meeting (ASEM) (EUR 630 000), — Cover technical audiovisual projects to improve the quality of the services provided during European Council and Council events (EUR 360 000),

— C2-transfer of EUR 2 181 000 on 26 November 2018 in order to: — Finance early 2019 training sessions for which external contractors needed to start preparatory work in 2018 (EUR 150 000), — Cover unforeseen costs of the organisation of ASEM such as necessary adaptations in the external venue (fitting out works and furniture) (EUR 550 000), — Cover the works on cabling done by the IT services in the master control room of audiovisual equipment (EUR 339 000), — Cover the shift between services of the management of Information and Knowledge Management (IKM) Programme (EUR 1 042 000), — Finance the in-house development of a new Newsroom publication platform (EUR 100 000).

52 B-transfers based on Article 25(4) of the FR (Article 29(4) of 2018 FR) modified internally the EC/C budget in 2018.

Table 7 gives an overview of the budget lines which were significantly (5) modified in 2018 by different transfers.

Table 7

Budget lines which were subject to significant transfers in 2018

(EUR) Item Heading Initial Budget 2018 Transfers Final appropriations Difference 1 1 0 5 Overtime 1 450 000 – 250 000 1 200 000 – 17 % 2 0 0 0 Rent 1 109 000 764 500 1 873 500 69 % 2 0 0 4 Work to make premises secure 2 547 000 – 800 000 1 747 000 – 31 % 2 0 1 1 Water, gas, electricity and heating 4 766 000 – 568 199 4 197 801 – 12 % 2 0 1 2 Buildings security and surveillance 18 493 000 – 460 000 18 033 000 – 2 % 2 1 0 0 Acquisition of equipment and software 10 716 000 –1 308 620 9 407 380 – 12 % 2 1 0 1 Outside assistance for computer systems 21 799 000 1 975 593 23 774 593 9 % 2 1 0 2 Servicing and maintenance of equipment and software 7 195 000 370 443 7 565 443 5 % 2 1 0 3 Telecommunications 1 590 000 443 585 2 033 585 28 % 2 1 2 0 Purchase and replacement of technical equipment 2 494 000 404 779 2 898 779 16 % 2 1 2 2 Rental, servicing, maintenance and repair 1 538 000 – 255 789 1 282 211 – 17 % 2 1 3 2 Rental, maintenance and repair of the vehicle fleet 1 046 000 476 000 1 522 000 46 % 2 2 0 0 Travel expenses of delegations 17 802 000 4 529 114 22 331 114 25 % 2 2 0 2 Interpreting costs 79 316 000 –4 874 614 74 441 386 – 6 % 2 2 1 0 Documentation and library expenditure 3 770 000 –1 016 500 2 753 500 – 27 % 2 2 1 1 Official Journal 1 777 000 – 995 500 781 500 – 56 % 2 2 1 3 Information and public events 4 385 000 448 000 4 833 000 10 %

3.3.2. Overview of implementation of the budget in 2010– 2018

The overall implementation rate of the EC/C budget has been on average 91,9 % over the past nine 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 rate between 2010 and 2018 have been on average 82,6 % 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 (Article 12(7) of 2018 FR), to the next budget year for payments.

Graph 1

Global budget implementation in 2010– 2018

For 2018, the carried over appropriations relate 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.

3.3.3. Implementation of the appropriations by category in 2018

The analysis of expenditure in 2018 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 2018 and therefore cancelled.

Table 8

Overview of the implementation of the 2018 budget (by category)

(EUR) Category Budget 2018 (initial) Budget 2018 (final (*1)) Commitments Outturn rate Cancelled appropriations 1 2 3 4=3/2 5=2– 3 Establishment plan 328 800 000 328 650 000 309 799 583 94,3 % 18 850 417 Other staff expenditure 24 359 000 24 509 000 22 777 378 92,9 % 1 731 622 Buildings (excluding acquisitions) 56 360 377 55 574 877 54 112 447 97,4 % 1 462 430 Computer systems 41 300 000 42 781 000 42 770 511 100,0 % 10 489 Furniture 733 000 933 000 923 624 99,0 % 9 376 Technical equipment 4 344 000 4 365 000 4 184 365 95,9 % 180 635 Transport 1 496 000 2 036 000 1 938 566 95,2 % 97 434 Delegations’ travel expenses 17 802 000 22 331 114 11 121 429 49,8 % 11 209 685 Interpreting costs 79 316 000 74 441 386 64 551 319 86,7 % 9 890 067 Meetings and conferences 4 945 000 5 290 500 4 948 665 93,5 % 341 835 Information 10 152 000 8 650 000 8 383 365 96,9 % 266 636 Miscellaneous 1 787 000 1 787 000 989 228 55,4 % 797 772 Reserve 1 500 000 1 500 000 0 0,0 % 1 500 000 Total (excl. acquisition) 572 894 377 572 848 877 526 500 479 91,9 % 46 348 398 Acquisition of immovable property — 45 500 45 035 99,0 % 465 Grand total 572 894 377 572 894 377 526 545 514 91,9 % 46 348 863

The global implementation rate of the 2018 budget is 91,9 %. The difference between the final budget and implementation can be explained as follows:

— The total under-spending in the category of the establishment plan amounts to EUR 18,8 million. This under-spending relates mainly to lower needs for basic salaries (EUR 11,8 million) and to the fact that it was not necessary to use the provision for annual adjustment of the remuneration (EUR 3,1 million). Part of the salary underspending is related to the net decrease of 47 occupied posts in the EC/C Establishment Plan. Other elements explaining the underspending are lower need for different statutory entitlements (EUR 2,6 million) and for social security (EUR 0,6 million) plus a lower expenditure relating to overtime (EUR 0,4 million).

— In the category of other staff expenditure, 29 % of the under-spending (EUR 0,5 million out of EUR 1,7 million) relates to fewer payments for contractual agents, seconded national experts and other outside services. Less spending in mission related costs corresponds to a saving of EUR 0,3 million. In the area of the President of the European Council, a saving of EUR 0,4 million comes from under-spending of the travel budget and allowances. The remainder of EUR 0,5 million is mostly related to savings in the areas of medical and social services.

— The global implementation of the building related expenditure resulted in a saving of EUR 1,5 million. From this amount EUR 1,3 million is due to lower costs in building security and surveillance, maintenance and cleaning, consumption of water, gas and electricity. The remaining EUR 0,2 million comes from savings in certain fitting-out, installation and security works.

— In the IT domain and in furniture, the budget implementation was 100 %.

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

— EUR 0,1 million saving in transportation is mainly due to the final needs regarding the organisation of the ASEM meeting.

— The implementation of the delegations’ travel expenses resulted in a saving of EUR 11,2 million. The amount available for delegations’ travel expenses after transfers amounted to EUR 22,3 million. The initial budget was EUR 17,8 million to which EUR 6,6 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. Since the Member States had to reimburse unused amounts from previous years, only EUR 11,1 million was committed for subsequent payments in the 2018 budget.

— The underspending in appropriations for interpretation amounts to EUR 9,9 million. It should be noted that this underspending is the final result after the transfer of EUR 6,6 million from interpretation envelopes to delegations’ travel envelopes (6). 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 0,2 million out of the total underspending of EUR 0,3 million in organising meetings and conferences reflects lower needs in the organisation of the EU-ASEM summit than what was budgeted. Lower needs for specific travel expenses have allowed for an additional saving of EUR 0,1 million.

— The implementation rate of the appropriations in the category ‘Information’ was 96,9 % which results in a saving of EUR 0,3 million. This amount corresponds mainly to savings in the Official Journal (EUR 0,2 million) and minor saving in the area of host broadcasting and outreach (EUR 0,1 million).

— In the category miscellaneous, the underspending of EUR 0,8 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 antidumping cases notified to the Council; the remaining EUR 0,1 million is a combination of smaller needs for uniforms and for office supplies, paper, studies and postal charges.

3.4. Appropriations carried over

3.4.1. Appropriations carried over automatically from 2017 to 2018

As presented in Table 9, an amount of EUR 51,8 million was carried over from 2017 to 2018.

Table 9

Implementation of appropriations carried over from 2017 to 2018 (by category)

(EUR) Category Appropriations carried over from 2017 Payments 2018 Outturn rate Cancelled appropriations 1 2 3=2/1 4=1– 2 Establishment plan 366 146 306 771 83,8 % 59 375 Other staff expenditure 2 939 481 2 466 286 83,9 % 473 195 Buildings 15 430 019 11 543 809 74,8 % 3 886 210 Computer systems 20 002 333 18 557 862 92,8 % 1 444 471 Furniture 323 588 312 101 96,4 % 11 488 Technical equipment 1 489 754 1 331 588 89,4 % 158 166 Transport 295 754 226 689 76,6 % 69 065 Delegations’ travel expenses — — — Interpreting costs 6 910 863 4 679 388 67,7 % 2 231 475 Meetings and conferences 877 538 677 635 77,2 % 199 903 Information 2 380 596 2 157 277 90,6 % 223 319 Miscellaneous 772 364 546 590 70,8 % 225 774 Reserve — — — Total 51 788 437 42 805 994 82,7 % 8 982 442

The implementation rate of the appropriations carried over from 2017 was 82,7 %. 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 2019.

3.4.2. Appropriations carried over from 2018 to 2019

The appropriations carried over from 2018 to 2019 totalled EUR 56,6 million.

Table 10

Appropriations carried over from 2018 to 2019 (by category)

(EUR) Category Budget 2018 (initial) Budget 2018 (final (*2)) Commitments Payments 2018 Appropriations carried over to 2019 Carry over rate 1 2 3 4 5=3– 4 6=4/3 Establishment plan 328 800 000 328 650 000 309 799 583 309 367 346 432 237 0,1 % Other staff expenditure 24 359 000 24 509 000 22 777 378 20 930 792 1 846 586 8,1 % Buildings 56 360 377 55 574 877 54 112 447 38 069 307 16 043 141 29,6 % Computer systems 41 300 000 42 781 000 42 770 511 23 222 070 19 548 442 45,7 % Furniture 733 000 933 000 923 624 633 483 290 141 31,4 % Technical equipment 4 344 000 4 365 000 4 184 365 2 615 658 1 568 707 37,5 % Transport 1 496 000 2 036 000 1 938 566 1 106 390 832 176 42,9 % Delegations’ travel expenses 17 802 000 22 331 114 11 121 429 11 121 429 0 0,0 % Interpreting costs 79 316 000 74 441 386 64 551 319 52 642 447 11 908 872 18,4 % Meetings and conferences 4 945 000 5 290 500 4 948 665 4 293 568 655 097 13,2 % Information 10 152 000 8 650 000 8 383 365 5 387 494 2 995 870 35,7 % Miscellaneous 1 787 000 1 787 000 989 228 555 947 433 280 43,8 % Reserve 1 500 000 1 500 000 — — — — Total (excl. acquisition) 572 894 377 572 848 877 526 500 479 469 945 930 56 554 549 10,7 % Acquisition of immovable property — 45 500 45 035 45 035 100,0 % Grand total 572 894 377 572 894 377 526 545 514 469 945 930 56 599 584 10,7 %

The carried over amounts from 2018 to 2019 mainly come from the following categories:

— Computer systems by EUR 19,5 million, of which EUR 12,2 million relates to outside assistance, EUR 5,3 million to equipment and software, EUR 1,2 million to IT service and maintenance and EUR 0,8 million to telecommunications.

— Buildings by EUR 16,0 million where different fitting-out works cover EUR 6,3 million, cleaning and maintenance EUR 4,3 million, security and prevention EUR 2,3 million, works to make the premises secure EUR 1,2 million, electricity, water, gas and heating together another EUR 1,0 million and EUR 0,4 million of other expenditure related to buildings e.g. building studies and audits.

— EUR 11,9 million to cover the cost of interpretation provided in November-December 2018, but for which the final invoice arrives in 2019.

— EUR 3,0 million related to information expenditure of which EUR 2,0 million concerns information and public events as well as Council publications and EUR 1,0 million documentation and library expenditure.

— Other staff expenditure by EUR 1,8 million especially in relation to outside assistance (EUR 0,1 million), training (EUR 0,9 million), medical service and crèches (EUR 0,4 million), missions (EUR 0,3 million) and support measures to assist staff (EUR 0,1 million).

— Technical equipment by EUR 1,6 million out of which EUR 1,0 million concerns purchase and maintenance of conference equipment, EUR 0,4 million purchase and maintenance of audiovisual equipment for the Press Service, EUR 0,1 million to security equipment and EUR 0,1 million purchase and maintenance of equipment for restaurants and canteens and to other equipment.

— Meetings and conferences by EUR 0,7 million mostly relating to invoices not yet received for organising European Council and Council meetings in 2018.

— Acquisition of immovable property by EUR 0,05 million to cover the notary expenses of the final payment for the Europa Building.

— Furniture by EUR 0,3 million corresponding to certain offices and additional purchase orders of furniture issued in order to cover the Council’s needs before the signature of the new framework contract.

3.4.3. Appropriations carried over by decision from 2017 to 2018

As presented in Table 11, an amount of EUR 8,8 million was carried over by decision from 2017 to 2018, accordingly to the provisions of Article 13(2) of the Financial Regulations (FR) and Article 4 of the Rules of Application (RAP) (Article 12(2) of 2018 FR).

Table 11

Appropriations carried over by decision from 2017 to 2018 (by category)

(EUR) Category Appropriations carried over by decision from 2017 Commitments 2018 Outturn rate Cancelled appropriations Payments 2018 Carried over for payment to 2019 1 2 3=2/1 4=1– 2 5 6=2– 4 Acquisition of immovable property 8 787 738 4 114 794 46,8 % 4 672 944 0 4 114 794 Total EC/C 8 787 738 4 114 794 46,8 % 4 672 944 0 4 114 794

The amount is related to the final payment for the Europa building and the planned purchase of four adjacent plots of land, provided that it was not possible to sign the related final act of sale in 2017 due to delays linked to internal procedures of Belgian authorities and consecutive delays with the preparation of the legal documentation by the notaries.

The implementation rate of the appropriations carried over by decision was 46,8 % due to the fact that the Belgian authorities finally did not proceed with the sale of the four adjacent plots of land. The amount committed was fully carried over to 2019 for payment.

3.4.4. Appropriations carried over by decision from 2016 to 2017 carried over for payment to 2018

Appropriations carried over by decision from 2016 to 2017 which were duly committed in 2017 but not paid had been carried over to 2018 for payment. As presented in Table 12, an amount of EUR 0,3 million was carried over for payment.

Table 12

Appropriations carried over by decision from 2016 to 2017 carried over for payment to 2018 (by category)

(EUR) Category Carried over for payment from 2017 Payments 2018 Outturn rate Cancelled appropriations 1 2 3=2/1 4=1– 2 Technical equipment 330 991 330 991 100,0 % 0 Total EC/C 330 991 330 991 100,0 % 0

The amount is related to the replacement of equipment in the Europa Building (technical equipment) which were damaged by water in October 2016.

The implementation rate of the appropriations carried over from 2017 was 100 %.

3.5. Assigned revenue

3.5.1. Assigned revenue accrued before 2018

The total amount of assigned revenue accrued before 2018 was EUR 23,0 million.

Table 13

Implementation of assigned revenue accrued before 2018 (by category)

(EUR) Category Assigned revenues before 2018 Commitments 2018 Payments 2018 Outturn rate Cancelled assigned revenues 1 2 3 4=2/1 4=1– 2 Establishment plan 1 424 860 1 424 860 1 424 860 100,0 % — Other staff expenditure 1 226 806 1 222 768 1 212 356 99,7 % 4 038 Buildings 793 382 672 317 540 213 84,7 % 121 065 Computer systems 473 332 472 157 360 276 99,8 % 1 175 Furniture — — — — Technical equipment 34 894 31 090 29 168 89,1 % 3 804 Transport 2 747 2 747 2 747 100,0 % — Delegations’ travel expenses 11 555 185 11 555 185 11 555 185 100,0 % — Interpreting costs 7 042 505 7 042 505 7 042 505 100,0 % — Meetings and conferences 148 367 136 571 134 123 92,0 % 11 796 Information 62 023 62 023 62 023 100,0 % — Miscellaneous 273 300 273 300 252 369 100,0 % — Total EC/C 23 037 401 22 895 523 22 615 825 99,4 % 141 878 SLAs with EEAS 126 150 117 101 117 101 92,8 % 9 049 Grand total 23 163 551 23 012 625 22 732 926 99,3 % 150 927

Assigned revenue related to the GSC’s activities totalled EUR 23,2 million, from which EUR 23,0 million was duly committed in 2018. The remainder EUR 0,2 million was cancelled in conformity with Article 14 of the FR (Article 12(4) of 2018 FR).

Another part, EUR 0,1 million, of the assigned revenue accrued before 2018 relates to amounts transferred by the EEAS in 2017 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. Out of the committed amount of EUR 0,1 million, 100 % was paid in 2017.

3.5.2. Assigned revenue carried over for payment from 2017

The total amount of assigned revenue carried over for payment from 2017 amount to EUR 0,3 million.

Table 14

Implementation of assigned revenue accrued before 2018 carried over to 2018 for payment (by category)

(EUR) Category Assigned revenues carried over for payment from 2017 Payments 2018 Outturn rate Cancelled assigned revenues 1 2 4=2/1 4=1– 2 Establishment plan — — — — Other staff expenditure 10 362 167 1,6 % 10 195 Buildings 149 078 78 610 52,7 % 70 468 Computer systems 3 — 0,0 % 3 Furniture — — — — Technical equipment 29 555 23 460 79,4 % 6 095 Transport 1 779 295 16,6 % 1 485 Delegations’ travel expenses — — — — Interpreting costs — — — — Meetings and conferences 5 530 5 274 95,4 % 256 Information — — — — Miscellaneous 38 773 7 627 19,7 % 31 146 Total EC/C 235 082 115 433 49,1 % 119 648 SLAs with EEAS 17 526 17 526 100,0 % — Grand total 252 608 132 959 52,6 % 119 648

3.5.3. Assigned revenue accrued before 2018 carried over to 2019 for payment

The assigned revenue accrued before 2018, duly committed but not paid in 2018 was carried over from 2018 to 2019 and totalled EUR 0,3 million.

Table 15

Assigned revenue accrued before 2018 carried over to 2019 (by category)

(EUR) Category Assigned revenues before 2018 Commitments 2018 Payments 2018 Assigned revenuescarried over to 2019 Carry overrate 1 2 3 4=2– 3 5=4/2 Establishment plan 1 424 860 1 424 860 1 424 860 — 0,0 % Other staff expenditure 1 226 806 1 222 768 1 212 356 10 412 0,9 % Buildings 793 382 672 317 540 213 132 103 19,6 % Computer systems 473 332 472 157 360 276 111 881 23,7 % Furniture — — — — Technical equipment 34 894 31 090 29 168 1 922 6,2 % Transport 2 747 2 747 2 747 — 0,0 % Delegations’ travel expenses 11 555 185 11 555 185 11 555 185 — 0,0 % Interpreting costs 7 042 505 7 042 505 7 042 505 — 0,0 % Meetings and conferences 148 367 136 571 134 123 2 449 1,8 % Information 62 023 62 023 62 023 — 0,0 % Miscellaneous 273 300 273 300 252 369 20 931 7,7 % Total EC/C 23 037 401 22 895 523 22 615 825 279 699 1,2 % SLAs with EEAS 126 150 117 101 117 101 — 0,0 % Grand total 23 163 551 23 012 625 22 732 926 279 699 1,2 %

The amounts carried over mainly comes from the following categories:

— Buildings by EUR 0,1 million relating to fitting out works.

— Computer systems by EUR 0,1 million corresponding to outside assistance.

— Miscellaneous by EUR 0,02 million corresponding mainly to the legal expenses and costs.

3.5.4. Assigned revenue accrued in 2018

The total assigned revenue accrued in 2018 totalled to EUR 23,7 million. From this, EUR 351 460 corresponds to amounts transferred by the EEAS to the Council.

Table 16

Implementation of assigned revenue accrued in 2018 (by category)

(EUR) Category Assigned revenues 2018 Commitments 2018 Payments 2018 Available assigned revenue 1 2 3 4=1– 3 Establishment plan 1 489 158 — — 1 489 158 Other staff expenditure 1 472 997 112 414 62 508 1 410 489 Buildings 984 112 195 806 81 498 902 614 Computer systems 976 647 262 528 69 889 906 758 Furniture — — — 0 Technical equipment 210 364 143 204 139 077 71 286 Transport 5 454 — — 5 454 Delegations’ travel expenses 6 911 068 — — 6 911 068 Interpreting costs 11 066 291 — — 11 066 291 Meetings and conferences 139 883 132 947 55 875 84 008 Information 68 116 — — 68 116 Miscellaneous 33 737 — — 33 737 Total EC/C 23 357 827 846 899 408 847 22 948 980 SLAs with EEAS 351 460 208 560 124 366 227 095 Grand total 23 709 288 1 055 459 533 213 23 176 075

The assigned revenue 2018 relating to the activities of the GSC amounted to EUR 23,4 million. During the financial year EUR 0,8 million was committed while EUR 23,0 million was carried over to 2019 in accordance with Article 14 of the FR (Article 12(4) of 2018 FR).

Around 50 % of the assigned revenue (EUR 11 million) is related to interpretation, from the top-up payments on certain languages to cover the supplementary interpretation in those languages. An amount of EUR 7 million is related to the delegations’ travel expenses, following the balance after presenting their travel declarations. The remainder is mainly related to the reimbursement of amounts connected with various administrative operations of the Council.

(1) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (‘2012 Financial Regulation’) (OJ L 193, 30.7.2018, p. 1).

(2) 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).

(3) Europa Building

(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 250 000.

(*1) Includes internal reallocation of appropriations

(6) 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 2018, this corresponded to an amount of EUR 6,6 million.

(*2) Includes internal reallocation of appropriations