Official Journ alof the EuropeanUnion L 255/163
RESOLUTION OF  THE EUROPEAN PARLIAMENT
of 23 
April 2009
with observations forming an integral part of the D ecision
 on discharge in respect of 
the implementation of the bu dget 
of the Eu ropean 
GNSS Su pervisory 
Authori
ty for the financial 
year 2007
THE EUROPEAN PARLIAMENT,
—having reg ard to the final annual accounts of the European GNSS
(1) GNSS: global navigation satellite systems. (1) Supervisory Authority for the fin an­
cial 
year 2007
(2) OJ C 278, 31.10.2008, p. 38. (2), 
—having 
regard 
to the Court of Auditors’ report on  
the final 
annual 
account
s of the European 
GNSS Super­
visory Authority for the fin ancial 
year 2007, tog ether 
with the Authority’s replies
(3) OJ C 311, 5.12.2008, p. 107. (3), 
—having 
regard 
to the Coun cil’s 
recommen dation 
of 10 February 
2009 (5588/2009 — C6-0060/2009), 
—having 
regard 
to the EC 
Treaty, an d 
in 
particular Article 276 thereof, 
—having 
regard 
to Council 
Regulation 
(EC, 
Euratom) 
No 1605/2002 of 25 June 
2002 on 
the Financial 
Regu­
lation
 applicable
 to the general
 budget
 of the European
 Commun ities
(4) OJ L 248, 16.9.2002, p. 1. (4), and in particular Article 185 
thereof,
 
—having 
regard 
to Council 
Regulation 
(EC) 
No 1321/2004 of 12 July 2004 on  
the establishment 
of struc­
tures for the man agement
 of the Euro
pean satellite radio-n avigation
 programmes
(5) OJ L 246, 20.7.2004, p. 1. (5), and in particular 
Article 
12 thereof, 
—having
 regard
 to Commission Reg ulation
 (EC,
 Euratom)
 No 2343/2002 of 19 Novemb er
 2002 on the 
framework  
Financial 
Regulation 
for the bodies 
referred to in  
Article 185 of Reg ulation 
(EC, 
Euratom) 
No 
1605/2002
(6) OJ L 357, 31.12.2002, p. 72. (6), and in particular Article 94 thereof, 
—having 
regard 
to Rule 71 of, an d 
Annex 
V to, its Rules of Procedure, 
—having 
regard 
to the report of the Committee on  
Budgetary 
Control 
(A6-0164/2009),
A. whereas the Court of Auditors (E CA) stated it was un able to form an  opinion on the accoun ts of the Euro­
pean 
GNSS Supervisory Authority for the fin ancial 
year 2007 an d 
pointed 
out that the en tire 
architecture 
of the Galileo project was b eing 
revised in 
2007 and 
that the Authority’s accounts were prepared in a frag ­
ile 
legal 
environment,
B. whereas, at the same time, the E CA stated that the un derlying transactions are legal and regular,
C. whereas the Authority b ecame financially autonomous in 2006,
D. whereas the E CA, in its report on  the annual accounts of the Authority for 2006, issued a positive state­
ment 
of assuran ce,
E. whereas on  22  April 2008 Parliamen t granted the Executive Director of the European  GNSS Supervisory 
Authority discharg e
 in respect of the implemen tation
 of the Authority’s b udget
 for the fin ancial
 year 
2006
(7) OJ L 88, 31.3.2009, p. 262. (7),N E 9 0 0 2 . 9 . 6 2
Official Journ alof the EuropeanUnion 26.9.2009
1. Notes from the E CA’s annual report that the Authority’s fin al budget for the fin ancial year 2007 was 
EUR 436 
500 000, as compared to E UR 7 
000 000 in  
2006; observes 
that the 2007 b u
dget 
was mainly 
financed 
from Commission  
subsidies 
(an 
operating 
subsidy 
of EUR 7 
600 000 an d 
operation al 
funds 
of 
EUR 194 
500 000), tran sfers 
from the Galileo Join t 
Undertaking 
and 
third coun try 
contributions;
2.
 Notes the E CA’s
 observation
 that the appropriation s
 actually made availab le
 to the Authority 
(EUR 210 
000 000) were sub stantially 
lower, due to delays in curred 
in 
the Galileo prog ramme;
Incomplete 
statement of assu rance 
with regard to the accou nts
3. Regrets 
that the ECA 
was not 
in 
a position  
to form an  
opinion 
with regard 
to the reliab ility 
of the Authori­
ty’s annual 
accounts 
for 2007; n otes 
the ECA’s 
explanation 
that the an nual 
accounts 
for 2007 were estab ­
lished, 
and 
the ECA 
carried out its audit, when  
the Galileo project an d 
the role of the Authority were under 
revision 
and 
the new 
legal 
framework  
still incomplete, 
notably 
as regards 
the management 
of the project’s 
funds 
and 
the ownership 
of its assets;
4. Notes that, in  
the meantime, 
Regulation 
(EC) 
No 683/2008
(1) Regulation (EC) No 683/2008 of the E uropean Parliamen t and of the Coun cil of 9 July 2008 on  the further implemen ­
tation 
of the European 
satellite navigation 
programmes 
(EGNOS 
and 
Galileo) (OJ L 196, 24.7.2008, p. 1). (1) entered into force; notes that under that 
Regulation, 
the Commission  
is the man ager 
of the Galileo an d 
EGNOS
(2) European g eostationary navigation overlay system. (2) programmes and the Commu­
nity 
the owner 
of all tangible 
and 
intangible 
assets created or developed un der 
the programmes;
5. Notes 
that the Authority will estab lish 
its annual 
accounts 
for 2008 un d
er the new 
legal 
framework ;
6.
 Invites
 the ECA,
 in its report on the an nual
 accounts
 of the Authority for 2008, to assess how far the 
uncertainties 
with regard 
to the accoun ts 
have been 
remedied;
Budget 
implementation
7. Is 
concerned 
that the E CA 
found 
the followin g 
weaknesses 
with regard 
to budget 
implemen tation: 
low 
consumption 
level of commitmen t 
and 
payment 
appropriation s 
for operation al 
activities (63 % for com­
mitments 
and 
51 % for paymen ts); 
absence 
of a clear lin k 
between 
the Authority’s work  
programme 
and 
the 
budget; 
transfers 
neither 
justified n or 
documented; 
repeated late b o
oking 
of recovery orders; in con­
sistent 
presentation 
of budget 
implemen tation;
8. Acknowledges 
that the Authority performed a hig h 
number 
of transfers 
due to an 
exception al 
budgetary 
situation, 
with a 50 % reserve on  
the operatin g 
budget;
9. Calls 
on 
the Authority to report on  
the action  
taken 
following 
the ECA’s 
observations 
with regard 
to bud­
get 
implemen tation, 
and 
on 
the results achieved, in  
its report on  
budgetar
y and 
financial 
management 
for 
2008;
Uncertainties with regard to Galileo and EGNOS project assets
10. Observes 
the ECA’s 
criticism, with reg ard 
to Galileo project assets, that the Authority was un able 
to pro­
vide sufficien t
 information
 in its accoun ts,
 as no list of the assets held b y
 the European
 Space Ag ency
 
(ESA) 
had been 
established 
by 
the end 
of 2007;
11. Notes the Authority’s reply to the E CA 
that these assets were con trolle
d by 
the ESA, 
not 
by 
the Authority, 
at 31 Decemb er 
2007;
12. Observes 
the ECA’s 
criticism, with reg ard 
to EGNOS 
project assets, that n o 
accurate in ventory 
of these 
assets was availab le 
and 
that there was n o 
indication 
of their value in  
the Authority’s accoun ts;N E 4 6 1 / 5 5 2 L
Official Journ alof the EuropeanUnion L 255/165
13. Notes the Authority’s reply that the E GNOS project assets were, at 31 Decemb er 2007, still un der the con­
trol 
of the ESA; 
further notes 
from the replies of the Authority’s E xecutiv
e Director to the Parliamen t 
that 
substantial 
progress 
was made in  
2008, as the E GNOS 
investors 
agreed 
on 
the conditions 
of the tran sfer 
of 
the assets;
14. Notes that, un der 
Regulation 
(EC) 
No 683/2008, the Commun ity 
is the owner of the Galileo an d 
EGNOS 
project 
assets; notes 
that the process of tran sferring 
these assets from the Authority to the Commission , 
which 
exercises own ership 
on 
behalf 
of the Commun ity, 
started in 
December 
2008;
15. Calls on 
the Authority to do its utmost in  
order to clarify the situation  
with regard 
to Galileo an d 
EGNOS 
project 
assets in 
its annual 
accounts 
for 2008;
16. Calls on 
the Commission , 
to which the Galileo an d 
EGNOS 
project assets are curren tly 
being 
transferred, 
to 
consider 
the ECA’s 
observations 
and 
ensure 
that these assets are properly recorded in  
the accoun ts;
17. Notes 
the ECA’s 
observation 
that the costs of the in -orbit 
validation  
phase of the Galileo project should 
be 
equally shared b etween 
the ESA 
and 
the EU, 
and 
that, however, the E U’s 
contribution 
exceeded that of 
ESA 
by 
some EUR 114 
000 000; n otes 
that, accordin g 
to the ECA, 
this pre-fin an
cing 
should have b een 
shown 
in 
the Authority’s accoun ts;
18.
 Notes that the Authority disag reed
 with the E CA
 and
 only
 recognised
 advance
 paymen ts
 of 
EUR 53 
200 000;
The Authority’s 
role in the winding- up 
of the Galileo Joint Undertaking (GJU)
19. Recalls that the Authority took  
over all activities an d 
assets from the Galileo Join t 
Undertaking 
(GJU) with 
effect from 1 January 
2007;
20. Is 
concerned 
by 
the ECA’s 
critical remark s 
as to how certain  
assets were tran sferred 
from the GJU to the 
Authority an d 
recorded in  
the Authority’s accoun ts;
21. Notes 
that the Authority replied in  
great 
detail to the E CA 
and 
disagree
d with man y 
of the ECA’s 
observations;
22. Takes 
the view that the win ding-up 
of the GJU, in cluding 
the role played b y 
the Authority, must b e 
thor­
oughly 
examined 
by 
the discharg e 
authority, on  
the basis 
of the ECA’s 
audit results;
23. Observes 
that the E CA 
is currently 
carrying 
out an 
audit of the man ageme
nt 
of the Galileo developmen t 
and 
its in-orbit 
validation  
phase; invites 
the ECA 
to put particular emphasis on  
the takeover 
of the GJU’s 
activities an d 
assets by 
the Authority, an d 
welcomes the E CA’s 
intention 
to publish 
its audit results in  
a 
special report b efore 
the 2009 summer b reak;
24. Refers 
for other ob servations 
accompan ying 
its Decision  
on 
discharge 
which are of a horizon tal 
nature 
to 
its Resolution  
of 23 April 2009 on  
financial 
management 
and 
control 
of EU 
agencies
(1) See page 206 of this Official Journ al. (1).N E 9 0 0 2 . 9 . 6 2