Resolution of the European Parliament

of 5 May 2010

with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2008

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2008,

having regard to the Court of Auditors’ report on the annual accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year ended 31 December 2008, together with the replies of the Joint Undertaking [1],

having regard to the Council’s recommendation of 16 February 2010 (5829/2010 — C7-0060/2010),

having regard to Article 276 of the EC Treaty and 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 Council Decision 2007/198/Euratom of 27 March 2007 establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it [3], and in particular Article 5 thereof,

having regard to the Financial Regulation of the European Joint Undertaking for ITER and the Development of Fusion Energy, adopted by decision of 22 October 2007 of the Joint Undertaking’s Governing Board (hereinafter "ITER Financial Regulation"),

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 Regulation (EC, Euratom) No 1605/2002 [4], 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 (A7-0094/2010),

A. whereas the Court of Auditors states that it has obtained reasonable assurances that the annual accounts for the financial year 2008 are reliable and that the underlying transactions are legal and regular,

B. whereas the Joint Undertaking is in a start-up phase and had not fully established its internal control and financial reporting systems by the end of 2008,

C. whereas under Article 75 of the ITER Financial Regulation the Joint Undertaking is required to have an internal audit service that complies with international audit standards,

D. whereas the ITER Financial Regulation is based on the framework Financial Regulation, which was recently amended to bring it into line with changes made to the general Financial Regulation,

E. whereas on 28 February 2008 the Joint Undertaking’s Director sought the Court of Auditors’ opinion on the ITER Financial Regulation,

F. whereas in October 2008 the Court of Auditors delivered Opinion No 4/2008 on that Regulation,

Carryover of appropriations

1. Notes that the Court of Auditors identified a surplus of EUR 57600000 in the budget outturn account, which represents 38 % of the EUR 149700000 of accrued revenue; stresses, in particular, that part of that surplus (EUR 32200000) was carried over to the 2009 financial year; notes, none the less, the Joint Undertaking’s reply to the effect that the under-spending to which the Court of Auditors refers stemmed from the fact that this was the Joint Undertaking’s first year of financial autonomy from the Commission, and from delays in the start-up of the ITER International Organisation and the Euratom fusion programme as a whole;

Commitment irregularities

2. Notes that, in six cases considered by the Court of Auditors, the Joint Undertaking made budget commitments only after it had already entered into legal obligations; calls accordingly on the Joint Undertaking to comply with the Financial Regulation in this respect as well;

ITER Financial Regulation

3. Welcomes the Court of Auditors’ finding that the ITER Financial Regulation is, in the main, founded on the principles laid down in the framework Financial Regulation and the general Financial Regulation; notes, none the less, that a number of specific changes need to be made, including as regards exceptions to the budgetary principles, the role of the Commission’s Internal Audit Service, late payment of members’ contributions, the rules on the award of grants and the transitional provisions set out in Article 133 of the ITER Financial Regulation;

Annual activity report

4. Expressly recommends that the Joint Undertaking meet the deadline agreed with the Court of Auditors for submission of its annual activity report;

Internal control systems

5. Expressly recommends that the Joint Undertaking carry out further work on documenting IT processes and activities and analysing IT risks;

6. Notes that the Joint Undertaking’s internal auditor did not take up his duties until 1 July 2009; commends ITER, none the less, on having now drawn up an action plan for the implementation of internal control standards and set up a working group to coordinate and monitor the plan’s implementation; stresses, furthermore, that ITER has appointed a Data Protection Officer and the necessary steps have been taken to further develop the Business Continuity and Data Recovery Plan;

7. Notes the Joint Undertaking’s statement to the effect that all underlying business processes are currently being mapped;

8. Notes that the Joint Undertaking reported EUR 216304,89 in income from interest in 2008; concludes from the financial statements and from the level of the interest payments that the Joint Undertaking has a permanently high level of cash holdings; notes that on 31 December 2008 the Joint Undertaking’s cash holdings amounted to EUR 58980569,87; asks the Commission to examine what scope there is for introducing needs-orientated management of cash holdings at the Joint Undertaking, and what changes of approach are necessary in order to keep the Joint Undertaking’s cash holdings permanently as low as possible.

[1] OJ C 310, 18.12.2009, p. 1.

[2] OJ L 248, 16.9.2002, p. 1.

[3] OJ L 90, 30.3.2007, p. 58.

[4] OJ L 357, 31.12.2002, p. 72.

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