RESOLUTION OF THE EUROPEAN PARLIAMENT  
of 17 April 2013  
with observations forming an integral part of its Decision on discharge in respect of the 
implementation of the budget of the Joint Undertaking for the implementation of the Joint 
Technology Initiative on Innovative Medicines for the financial year 2011  
THE EUROPEAN PARLIAMENT,  
— having regard to the final annual accounts of the Joint Undertaking for the implementation of the Joint 
Technology Initiative on Innovative Medicines for the financial year 2011,  
— having regard to the Court of Auditors’ report on the annual accounts of the Innovative Medicines 
Initiative Joint Undertaking for the financial year 2011, together with the replies of the Joint Under ­
taking (  1 ), 
— having regard to the Council’s recommendation of 12 February 2013 (05755/2013 – C7-0040/2013),  
— having regard to Article 319 of the Treaty on the Functioning of the European Union,  
— having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial 
Regulation applicable to the general budget of the European Communities (  2 ), and in particular 
Article 185 thereof,  
— having regard to Regulation (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 (  3 ), and in particular Article 208 thereof,  
— having regard to Council Regulation (EC) No 73/2008 of 20 December 2007 setting up the Joint 
Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines (  4 ), and 
in particular Article 11(4) thereof,  
— having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the 
framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, 
Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European 
Communities (  5 ), and in particular Article 94 thereof,  
— having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,  
— having regard to the report of the Committee on Budgetary Control (A7-0088/2013),  
A. whereas the Innovative Medicines Initiative Joint Undertaking (‘the Joint Undertaking’) was set up in 
December 2007 for a period of 10 years to significantly improve the efficiency and effectiveness of the 
drug development process with the long-term aim that the pharmaceutical sector produces more 
effective and safer innovative medicines,  
B. whereas the Joint Undertaking started to work autonomously on 16 November 2009,  
C. whereas the Court of Auditors states that it has obtained reasonable assurances that the annual 
accounts of the Joint Undertaking for the financial year 2011 are reliable and that the underlying 
transactions are legal and regular,EN L 308/358 Official Journal of the European Union 16.11.2013  
( 1 ) OJ C 6, 10.1.2013, p. 27.  
( 2 ) OJ L 248, 16.9.2002, p. 1.  
( 3 ) OJ L 298, 26.10.2012, p. 1.  
( 4 ) OJ L 30, 4.2.2008, p. 38.  
( 5 ) OJ L 357, 31.12.2002, p. 72.
D. whereas the Court of Auditors has delivered a qualified opinion on the legality and the regularity of the 
transactions underlying the Joint Undertaking’s accounts,  
E. whereas the maximum contribution for the period of 10 years from the Union to the Joint Undertaking 
is EUR 1 000 000 000 to be paid from the budget of the seventh research framework programme,  
Budgetary and financial management  
1. Notes with concern that the budget of the Joint Undertaking for the financial year 2011 and the 
implementation plan was adopted by the Governing Board only on 4 April 2011 due to the time taken 
to establish and agree on the scientific priorities to be included in the annual implementation plan; 
notes that this delayed the launch of the call for proposals and for the entire first quarter of the year, 
the Joint Undertaking was obliged to use provisional twelfths budget rule to make payments;  
2. Is concerned that the implementation rate for the EUR 159 000 000 commitment appropriations 
available for research activities was 66 % and that it was implemented through a global commitment 
covering the fourth call for proposals; reiterates its concern about the low implementation rate of the 
budget and, moreover, about the underlying activities of the Joint Undertaking; duly notes that the high 
level of unused appropriations of the administrative budget (44 %) indicates that it was not based on 
realistic estimates; calls for a detailed progress report on those shortcomings which makes specific 
proposals for a gradual improvement in the implementation rate and for a more realistic estimate of 
the financial resources needed;  
3. Regrets, therefore, that commitment appropriations amounting to EUR 117 000 000 and payment 
appropriations amounting to EUR 65 000 000 not used in the financial year 2010 were carried 
over to 2011 and commitment appropriations amounting to EUR 62 000 000 and payment appropri ­
ations amounting to EUR 11 000 000 not used during the financial year 2011 were carried over to 
2012; welcomes the improvements made for 2012, whereby the overall execution rates for 
commitment appropriations was 96 % and for payment appropriations was 97 %;  
4. Is concerned that the annual accounts of the Joint Undertaking received a qualified opinion from the 
Court of Auditors on the legality and the regularity of the transactions underlying those accounts on 
the grounds that the error rate resulting from the  ex post  audits was 6,84 %; takes note that the Joint 
Undertaking completed  ex post  audits covering EUR 2,2 million (18,8 % of accepted Joint Undertaking’s 
contribution for the first call validated by the Joint Undertaking by June 2011); regrets that on the basis 
of the Joint Undertaking’s first audits applying its own methodology, the detected error rate was 4,58 % 
while the residual error rate was 3,72 %; expects that the Court of Auditors and the Joint Undertaking 
agree on an audit methodology that for the same  ex post  audits delivers the same results; reiterates that 
the Joint Undertaking should reinforce without delay the quality of its  ex ante  controls, in particular for 
the grants management; requests that the discharge authority is informed of the results of the following  
ex post  audit processes conducted by the Joint Undertaking;  
5. Calls, therefore, for a detailed progress report which makes specific proposals for a gradual reduction in 
the error rate;  
Calls for proposals  
6. Highlights the fact that the Joint Undertaking organised calls for proposals in 2008, 2009 and 2010 
that resulted in signed grant agreements amounting to EUR 269 000 000 at the end of 2011 and that 
in 2012, the fifth call for proposals was launched with an indicative budgeted Union contribution of 
EUR 80 000 000; is concerned that if calls for proposals remain at the current level, it is highly likely 
that the total available Union contribution will not be used; calls the Joint Undertaking to make the 
best possible use of the resources that have been allocated for the implementation of the Joint Tech ­
nology Initiative on Innovative Medicines;EN 16.11.2013 Official Journal of the European Union L 308/359
7. Takes note of the inconsistencies between the Governing Board’s decisions and the report on budgetary 
and financial management, namely the fact that in the report, the total amount of chapter 30-C2 
‘Research agenda’ (EUR 117 000 000) is lower than the budget line B03000-C2 (EUR 141 000 000) 
which is part of that chapter; points out, furthermore, that the Governing Board’s decision of 28 January 
2011 only authorises the carry-over of EUR 115 000 000 of commitment appropriations, while the 
report on budgetary and financial management discloses a carry-over of EUR 117 000 000; calls on the 
Joint Undertaking to ensure that the decisions of its Governing Board are duly taken into account by 
the Executive Director;  
Internal control systems  
8. Points out that the Court of Auditors reports significant progress regarding internal control systems 
during 2011; notes, however, that further work is needed to establish and document the budget and 
accounting procedures and related controls and a formal assessment of the internal control system was 
carried out during 2011;  
9. Takes note that the Accounting Officer of the Joint Undertaking reported on the validation of the 
accounting system on 27 September 2012 and underlined significant weaknesses which need to be 
addressed;  
Evaluation of contributions in kind  
10. Notes the Court of Auditors’ finding that the methodology for evaluating in-kind contributions was 
approved by the Governing Board on 11 November 2011 and that the in-kind contributions are 
validated by way of an  ex ante  certification and  ex post  audits, however during 2011 no  ex ante  
certification and no  ex post  audit were carried out by the Joint Undertaking;  
11. Recalls that the Joint Undertaking was set up in December 2007 and started to work autonomously in 
November 2009; expresses concern that the methodology for evaluating contributions in-kind to be 
defined in the Joint Undertaking’s internal rules and procedures in compliance with its Financial Rules 
has been approved by the Governing Board on 11 November 2011; emphasises the fact that the 
European Federation of Pharmaceutical Industries and Associations (EFPIA) members of the Joint 
Undertaking were, therefore, unable to report on the costs incurred during the first reporting period 
as established in the grant agreements;  
Internal audit and the Commission’s Internal Audit Service  
12. Takes note that in 2011, the Commission’s Internal Audit Service and the Internal Audit Capability of 
the Joint Undertaking carried out a risk assessment exercise and the strategic audit plan for 2012-2014 
was approved by the Governing Board on 3 November 2011;  
13. Notes that the Joint Undertaking’s Financial Rules have not yet been amended to include the provision 
of the framework Regulation but the mission charter of the Commission’s Internal Audit Service was 
adopted by the Governing Board on 8 March 2011;  
14. Is concerned that while the Joint Undertaking obtained its autonomy in November 2009, no internal 
assurance audit work as such was performed until March 2012 either by the Internal Audit Service of 
the Commission or by the internal audit manager and the latter has been directly involved in oper ­
ational activities (implementation of  ex post  strategy, KPI framework, review of  ex ante  certificate on in- 
kind contributions) and other consultancy engagements;  
Audit rights of the Court of Auditors  
15. Is surprised to learn that the provisions of the grant agreement do not recognise the right of the Court 
of Auditors to audit the in-kind contributions of EFPIA companies although they are recorded in the 
financial statements of the Joint Undertaking and are estimated at EUR 1 000 million over the lifetimeEN L 308/360 Official Journal of the European Union 16.11.2013
of the Joint Undertaking; notes that in-kind contributions are audited by the Joint Undertaking in line 
with Article 12(4) and (5) of Regulation (EC) No 73/2008 and that the advice of the Commission was 
sought by the Joint Undertaking on the rights of the Court of Auditors to audit in-kind contributions of 
EFPIA companies;  
Annual activity report  
16. Emphasises the fact that the Executive Director’s declaration of assurance was issued in February 2012 
without reservation, despite the lack of information on the effectiveness of the  ex post  audit strategy, 
which is the key control for operational expenditure; notes that according to the Statutes and Financial 
Rules of the Joint Undertaking the Executive Director is required to draw up an annual activity report 
including a declaration of assurance stating that the information contained in the report presents a true 
and fair view except as otherwise specified in any reservation;  
Other management matters  
17. Notes that in 2011, the Joint Undertaking made progress on the formalisation of IT security policies; 
takes note that the business continuity plan and disaster recovery plan were not yet finalised;  
18. Welcomes the fact that the Host State Agreement between the Joint Undertaking and the Belgian 
authorities concerning office accommodation, privileges and immunities and other support to be 
provided was signed on 3 February 2012;  
Other issues  
19. Reiterates its invitation for the Court of Auditors to provide, within a reasonable deadline, a special 
report to Parliament on common issues which occur due to the nature of the Joint Undertakings, and 
which should be addressed by the Joint Undertakings together with their partners in order to ensure 
their added value and efficient execution of Union research, technological development and demon ­
stration programmes; notes, furthermore, that that report should include an assessment of the effec ­
tiveness of the Joint Undertakings’ establishment and structure.EN 16.11.2013 Official Journal of the European Union L 308/361