COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92) 96 final 
Brussels, 27 March 1992 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 337/75 establishing a 
European Centre for the Development of Vocational Training 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1365/75 on the creation of a 
European Foundation for the Improvement of Living 
and Working Conditions 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1416/76 on the financial 
provisions applying to the European Centre for the 
Development of Vocational Training 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1417/76 on the financial 
provisions applying to the European Foundation for the 
Improvement of Living and Working Conditions 
(presented by the Commission pursuant to Article 149(3) 
of the EEC-Treaty) 

SUMMARY 
I. EXPLANATORY MEMORANDUM 
||. AMENDED PROPOSALS FOR COUNCIL REGULATIONS (EEC) Paoe 
3 
(a) amending Regulation (EEC) No 337/75 establishing a 
European Centre for the Development of Vocational Training 4 
(b) amending Regulation (EEC) No 1365/75 on the creation of a 
European Foundation for the Improvement of Living and 
Working Conditions 9 
(c) amending Regulation (EEC) No 1416/76 on the financial 
provisions applying to the European Centre for the 
Development of Vocational Training 14 
(d) amending Regulation (EEC) No 1417/76 on the financial 
provisions applying to the European Foundation for the 
Improvement of Living and Working Conditions 41 
- 3 -
EXPLANATORY MEMORANDUM 
One 29 November 1990 the Commission presented a proposal for the 
amendment of the regulations relating to the European Centre for the 
Development of Vocational Training, Berlin, and the European Foundation 
for the Improvement of Living and Working Conditions, Dublin.1 
The purpose of this proposal was to update and consolidate the 
financial rules dating from 1976 in order to meet the new requirements 
for drawing up and implementing the statements of revenue and 
expenditure resulting from the revision of 13 March 1990 of the 
Financial Regulation applicable to the general budget of the 
Commun i t i es.2 
On the basis of this proposal, the Council conducted the consultations 
required by Article 209 of the EEC Treaty. The Court of Auditors 
expressed its opinion on 18 April 1991^ and Parliament on 
13 December 1991.4 
In accordance with Article 149(3) of the EEC Treaty, the Commission has 
drawn up an amended proposal to take account, where appropriate, of the 
opinions expressed by the institutions consulted. 
In short, the changes proposed by the Commission are largely changes of 
wording. The Commission thus accepts the amendments resulting from the 
opinions of Parliament and the Court of Auditors, which recommended 
that more of the text of the Financial Regulation applicable to the 
general budget of the Communities should be incorporated without, 
however, questioning the fact that the Centre and the Foundation should 
retain their separate and distinct financial regulations. 
The Commission took this opportunity to consolidate the provisions 
concerning the size and composition of the Centre's Management Board 
and the Foundation's Administrative Board, which were enlarged as a 
result of the acts of accession of Greece5 and of Spain and 
Portugal.6 The basic regulations for the Centre and the Foundation 
have thus been adjusted in line with these acts of accession. 
The Commission would again stress the importance and urgency which 
this matter dictates so that the new financial rules applicable to the 
Centre and the Foundation can enter into force as soon as possible 
(i.e. sixteen years after the current regulations were adopted). 
1 C0M(90) 534 final . 
2 Council Regulation No 610/90 of 13 March 1990 (0J L 70, 16.3.1990, 
p. 1). 
3 Letter of 18 April 1991 from the Secretary-General of the Court of 
Auditors, SEC 399/91 and SEC 407/91. 
4 A3-0315/91. 
5 OJ L 291, 19.11.1979, p. 107. 
6 OJ L 302, 15.11.1985, p. 391. 
- 3 ^n/o -
The passages underlined show the changes to the initial proposal 
II (A) Amended proposal for a COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 337/75 of 10 February 1975 
establishing a European Centre for the Development of Vocational 
Tra ining 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 337/75 
establishing a European Centre for the 
Development of Vocational Training 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Court of Auditors, 
Whereas the Treaty of 22 July 1975, amending certain financial 
provisions of the Treaties establishing the European Communities and of 
the Treaty establishing a single Council and single Commission of the 
European Communities, modified the procedure for giving a discharge to 
the Commission in respect of the implementation of the budget, and 
therefore it is appropriate to update the procedure for giving a 
discharge to the Management Board of the Centre by reference to the 
procedure so modified, as set out in Article 206b of the EEC Treaty. 
Whereas the Treaty of 22 July 1975 substituted the Court of Auditors 
for the Audit Board in all the texts referring to the Audit Board; 
Whereas the acts of accession of the Hellenic Republic1 and of the 
Kingdom of Spain and the Portuguese Republic2 increased the number and 
composition of the Management Board and whereas the current regulation 
should be amended accordingly-. 
Whereas it is desirable to provide for the transmission of the annual 
general report on the Centre to all interested Community bodies; 
Whereas Council Regulation (EEC) No 337/753 should be amended 
accordingly; 
Whereas the EEC Treaty does not provide other powers of action than 
those contained in Article 235 for the adoption of this regulation; 
HAS ADOPTED THIS REGULATION: 
Article 1 
Council Regulation (EEC) No 337/75 is hereby amended as follows: 
1• Article 4(1) is replaced by the following: 
"The centre shall be administered by a Management Board comprising 
39 members of whom: 
(a) twelve members shall represent the Governments of the Member 
States; 
(b) twelve members shall represent the employers' professional 
organizat ions; 
(c) twelve members shall represent the employees' trade union 
organizat ion; 
(d) three members shall represent the Commission. 
The members referred to in (a), (b) and (c) shall be appointed by 
the Council on the basis of one member per Member State for each of 
those groups. 
The Commission shall appoint the members who are to represent it." 
^.Article 9 is deleted. 
3. Article 10 becomes Article 9. 
1 0J L 291, 19.11.1979, p. 107 
2 0J L 302, 15.11.1985, p. 391 
3 OJ L 39, 13.2.1975, p. 1. 
4. Article 11 becomes Article 10. and is replaced by the following: 
"Article 10 
1. The Management Board shall, by 31 March each year at the latest, 
send the Commission an estimate of revenue and expenditure. 
This estimate, which shall include an establishment plan, shall 
be forwarded by the Commission to the Council and the European 
Par Iiament with the preliminary draft budget of the European 
Commun i t i es. 
2. The budgetary authority shall determine the appropriations 
ava i lable for the subsidy for the centre. 
The procedure in force for the transfer of appropriations from 
one chapter to another shall apply to these appropriations. 
The budgetary authority shall draw up the establishment plan of 
the centre. 
3. The Management Board shall adopt the estimate of revenue and 
expenditure before the subsidy granted by the budgetary 
authority. The estimate thus adopted shall be forwarded by the 
Commission to the budgetary authority." 
5. Article 12 becomes Article 11. 
Paragraphs 2 and 3 of that Article are deleted. 
Paragraph 4 becomes paragraph 2. 
^_s_ The fol lowing Art icle is inserted: 
"Article 12 
1. The Director shall draw UP and the Management Board shall adopt, 
not later than 31 March, the annual general report on the 
activities, financial situation and future guidelines of the 
Centre and shall send it to the Commission, the Council, the 
European Parliament, the Economic and Social Committee and the 
Court of Auditors. 
It shall also, not later than 31 March, send the revenue and 
expenditure accounts, the analysis of financial management and 
the balance sheet of the centre for the preceding financial year 
to the Commission, the Council, the European Parliament and the 
Court of Auditors. The Court of Auditors shall examine them as 
provided for in Article 206a of the Treaty. 
2. The Court of Auditors shall transmit to the authorities 
responsible for giving discharge and to the Commission, by 
30 November at the latest, its annual report accompanied by the 
replies of the Centre to its comments, and shall ensure 
publication thereof in the Official Journal of the European 
Communities. The European Parliament, upon a recommendation 
from the Council acting by a qualified majority, shall, before 
30 April of the following year, give a discharge to the 
Management Board of the Centre in accordance with the procedures 
laid down in Article 206b of the Treaty." 
7. Article 13 is replaced by the following; 
"Article 13 
The provisions governing the staff of the Centre shall be adopted by 
the Council, acting on a proposal from the Commission, and after 
consulting the European Parliament." 
Article 2 
This Regulation shall enter into force on the third day following that 
of its publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, For the Council 
The President 
II (B) Amended proposal for a COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 1365/75 on the creation of a 
European Foundation for the Improvement of Living and Working 
Conditions. 
10 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1365/75 
on the creation of a European Foundation 
for the Improvement of Living and Working Conditions 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Court of Auditors, 
Whereas the Treaty of 22 July 1975, amending certain financial 
provisions of the Treaties establishing the European Communities and of 
the Treaty establishing a single Council and a single Commission of the 
European Communities, modified the procedurre for giving a discharge to 
the Commission in respect of the implementation of the budget, and 
therefore it is appropriate to update the procedure for giving a 
discharge to the Administrative Board of the Foundation by reference to 
the procedure so modified, as set out in Article 206b of the EEC 
Treaty; 
Whereas the Treaty of 22 July 1975 substituted the Court of Auditors 
for the Audit Board in all the texts referring to the Audit Board; 
Whereas the acts of accession of the Hellenic Republic1 and of the 
Kingdom of Spain and the Portuguese Republic2 increased the number and 
composition of the Administrative Board and whereas the current 
regulation should be amended accordingly; 
Whereas it is desirable to improve the procedure for the transmission 
of the annual general report on the Foundation to include all Community 
organizat ions; 
Whereas Council Regulation (EEC) No 1365/753 should be amended 
accordingly; 
1 0J L 291, 19.11.1979, p. 107. 
2 OJ L 302, 15.11.1985, p. 391. 
3 0J L 139, 30.5.1975, p. 1 . 
11 
Whereas the EEC Treaty does not provide other powers of action than 
those contained in Article 235 for the adoption of this regulation; 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 1365/75 is hereby amended as follows: 
1. Article 6(1) is replaced by the following: 
"The Administrative Board shall consist of 39 members, of whom: 
(a) twelve members shall represent the Governments of the Member 
States. 
(b) twelve members shall represent the employer's organizations. 
(c) twelve members shall represent the employee's organizations. 
(d) three members shall represent the Commission. 
2. Article 13 is replaced by the following: 
"Article 1 
The Director shall draw UP and the Administrative Board shall adopt, 
not later than 31 March, the annual general report on the 
activities, financial situation and future guidelines of the 
Foundation and shall send it to the Commission, the Council, the 
European Parliament, the Economic and Social Committee and the Court 
of Auditors." 
3. Article 15 is replaced by the following: 
"Article 15 
1. The Administrative Board shall, by 31 March each year at the 
latest, send the Commission an estimate of revenue and 
expenditure. This estimate. which shall include an 
establishment plan, shall be forwarded by the Commission to the 
Council and the European Parliament, with the preliminary draft 
budget of the European Communities. 
2. The budgetary authority shall determine the appropriations 
available for the subsidy for the Foundation. 
The procedure in force for the transfer of appropriations from 
one chapter to another shall apply to these appropriations. 
The budgetary authority shall draw up the establishment plan of 
the Foundat ion. 
12 
3. The Administrative Board shall adopt the estimate of revenue and 
expenditure before the beginning of the financial year, 
adjusting it to the subsidy granted by the budgetary authority. 
The estimate thus adopted shall be forwarded by the Commission 
to the budgetary authority. 
4. Article 16 is replaced by the following: 
"Article 16 
(1) The financial provisions applying to the Foundation shall be 
adopted under Article 209 of the Treaty. 
The financial controller of the Commission shall be responsible 
for checking the commitment and payment of all expenditure and 
the recording and recovery of all revenue of the Foundation. 
(2) The Administrative Board shall, not later than 31 March, send 
the revenue and expenditure accounts, the analysis of financial 
management and the balance sheet of the Foundation for the 
preceding financial year to the Commission, the Council, the 
European Parliament and the Court of Auditors. The Court of 
Auditors shall examine them as provided for in Article 206a of 
the Treaty. 
(3) The Court of Auditors shall transmit to the authorities 
responsible for giving discharge and to the Commission, by 
30 November at the latest, its annual report accompanied by the 
replies of the Foundation to its comments, and shall ensure 
publication thereof in the Official Journal of the European 
Communities. The European Parliament, upon a recommendation 
from the Council acting by a qualified majority, shall, before 
30 April of the following year, give a discharge to the 
Administrative Board of the Foundation in accordance with the 
procedures laid down in Article 206b of the Treaty." 
5. Article 17 is replaced by the following: 
"Article 17 
The provisions governing the staff of the Foundation shall be 
adopted by the Council, acting on a proposal from the Commission and 
after consulting the European Parliament." 
13 
Article 2 
This Regulation shall enter into force on the third day following that 
of its publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
done at Brussels, For the Council 
The President 
14 
II (C) Amended proposal for a COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 1416/76 on the financial 
provisions applying to the European Centre for the Development of 
Vocational Training 
15 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1416/76 
on the financial provisions applying to the European 
Centre for the Development of Vocational Training 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 209 thereof, 
Having regard to Council Regulation (EEC) No 337/75 of 10 February 1975 
establishing a European Centre for the Development of Vocational 
Training,1 as amended by Regulation (EEC) No ,2 and in 
particular Article 11 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Court of Auditors, 
Whereas, pursuant to Article 130 of the Financial Regulation of 
21 December 1977,3 as last amended by Regulation No 610/90,4 the 
financial provisions governing the Centre should approximate as closely 
as possible to the provisions of the Financial Regulation applicable to 
the general budget of the European Communities and must therefore be 
updated; 
Whereas the Treaty of 22 July 1975, amending certain financial 
provisions of the Treaties establishing the European Communities and of 
the Treaty establishing a single Council and a single Commission of the 
European Communities, modified the procedure for giving a discharge to 
the Commission in respect of the implementation of the budget and 
substituted the Court of Auditors for the Audit Board in all the texts 
referring to the Audit Board; 
Whereas Council Regulation (EEC) No 1416/765 should be amended 
accordingly, 
HAS ADOPTED THIS REGULATION: 
1 OJL39, 31.2.1975, p. 1. 
2 OJ L 
3 OJL 356, 31.12.1977, p. 1. 
4 OJ L 70, 16.3.1990, p. 1. 
5 OJ L 164, 24.6.1976, p. 1. 
(3) 
16 
Article 1 
Regulation (EEC) No 1416/76 is hereby amended as follows: 
J^ Article 1(2) is replaced by the following paragraphs 2 and 3: 
"2. Expenditure may not be authorized for a period extending beyond 
the financial year. 
3. Administrative expenditure arising from: 
contracts which have been concluded, in accordance with 
local usage, or 
contractual provisions relating, in particular, to the 
supply of equipment, 
for periods extending beyond the financial year shall be charged 
to the statement of revenue and expenditure for the financial 
year in which it is effected." 
2_i. Article 2 is replaced by the following: 
"Article 2 
The budget appropriations must be used in accordance with the 
principles of sound financial management, and in particular those of 
economy and cost-effectiveness. Quantified objectives must be 
identified and the progress of their realization monitored." 
3^ Article 3(1) is replaced by the following: 
"1. Subject to Article 22, all revenue and expenditure shall be 
entered in fulI in the statement of revenue and expenditure and 
in the accounts without any adjustment against each other." 
4^_ The first subparagraph of Article 3(2) is replaced by the following: 
"2. Total revenue shall cover total expenditure. 
However, certain revenues shall not be used for any other 
purpose, notably: 
revenue earmarked for a specific purpose, such as income 
from foundations, subsidies, gifts and bequests, 
17 
revenue from third parties in respect of work carried out at 
their request." 
The second and third subparagraphs become paragraph 3. 
5. Article 4 is replaced by the following: 
"Art icle 4 
No revenue shall be collected and no expenditure effected unless 
credited to or charged against an article in the statement of 
revenue and expenditure. 
No expenditure may be committed or authorized in excess of the 
authorized appropriations, without prejudice to Article 22." 
5. Article 6 is replaced by the following: 
"Art icle 6 
The following rules shall govern the utilization of appropriations: 
1. (a) Appropriations still uncommitted at the end of the financial 
year for which they were entered, shall, as a rule, lapse. 
(b) Appropriations relating to remunerations and allowances of 
staff may not be carried over. 
(c.) The appropriations not committed at 31 December may be 
carr ied over to the next financial year only. 
(<D Tn© appropriations in respect of payments still outstanding 
at 31 December for commitments properly entered into between 
1 January and 31 December shall be carried over 
automatically to the next financial year only. 
2. For the appropriations mentioned in point 1 (c) the Commission 
shall forward to the budgetary authority, not later than 
15 February, the duly substantiated requests to carry over 
appropriations which the Centre has sent to it before 
1 February. 
The carryover of such appropriations may be proposed only for 
exceptional reasons to satisfy compelling needs which cannot be 
covered by appropriations for the following financial year. In 
principle, such carryovers shall be to cover needs remaining 
from the previous financial year for which, owing to delays 
which were not the fault of the authorizing officers, the 
appropriations could not be used in time. 
18 
The European Parliament shall consult the Council and shall act 
on these requests for carryovers. 
In the absence of a decision by the budgetary authority within a 
period of six weeks, the requests for carryovers shall be deemed 
to be approved. 
3. Unused revenue and appropriations still available on 
31 December, arising out of the donations referred to in 
Article 3(2), shall be carried over automatically. 
4. The following appropriations shall lapse at the end of the year: 
(a) appropriations from the previous financial year: 
- appropriations carried over by decision under point 1(c) 
which have been neither committed nor paid, 
- appropriations carried over automatically under 
point 1(d) which have not been paid; 
(b) appropriations of the financial year which are not being 
carr ied over. 
5. A list of automatic carryovers snail be sent to the Commission 
for its information before 1 March. The Commission shall 
forward this list to the European Parliament and the Council for 
their information. 
6. For the purposes of implementing the statement of revenue and 
expenditure, the use of appropriations carried over shall be 
shown separately, for each budget item, in the accounts for the 
current financial year." 
7. The following paragraph is added to Article 7: 
"Expenditure relating to rents or certain associated expenditure 
which is payable in advance in accordance with provisions laid down 
by law or contracts may give rise to payments from 20 December 
onwards to be charged to the appropriations for the next financial 
year." 
8. Article 8 is replaced by the following: 
"Article 8 
1. If the statement of revenue and expenditure is not finally 
adopted at the beginning of the financial year, Article 204 of 
the Treaty shall apply to commitments and payments of 
expenditure of a kind already approved in principle in the last 
statement duly adopted. 
19 
An item of expenditure shall be considered as having been 
approved in principle in the last statement duly adopted if it 
could have been charged to a specific budget heading under the 
financial year concerned. 
2. Payments may be made monthly in respect of any chapter up to 
one-twelfth of the total appropriations entered in the chapter 
in question for the preceding financial year, account being 
taken of transfers: this may not, however, have the effect of 
placing at the disposal of the Centre monthly appropriations in 
excess of one-twelfth of the amount of the subsidy reserved for 
the Centre in the draft budget or, in the absence thereof, in 
the preliminary draft budget of the Communities. Commitments 
may be entered into in respect of the relevant chapter up to 
one-quarter of the total appropriations entered in the chapter 
in question for the preceding financial year, account being 
taken of transfers, increased by one-twelfth for each completed 
month; the amount of the subsidy reserved for the Centre in the 
draft budget or, in the absence thereof, in the preliminary 
draft budget of the Communities may not, however, be exceeded. 
3. At the request of the Management Board, the Commission may, in 
the light of administrative requirements, authorize two or more 
provisional twelfths simultaneously, provided that the amount 
authorized for each chapter does not exceed the maximum annual 
limit provided for in paragraph 2. 
4. If, for a given chapter, the authorization of two or more 
provisional twelfths granted in the circumstances provided for 
in paragraph 3 does not enable the expenditure necessary to 
avoid a break in continuity of the Centre's activity in the area 
in question to be met, an overstepping of the total provided for 
in paragraph 3 may, exceptionally, be authorized in accordance 
with the same procedure, provided that the overall total of the 
appropriations opened in the statement of revenue and 
expenditure of the preceding year is not exceeded." 
9. Art icle 9 is deleted. 
10. Article 10 becomes Article 9 and is replaced by the following: 
"Article 9 
The statement of revenue and expenditure shall be drawn up in ecus. 
The value of the ecu and the arrangements for its conversion into 
national currencies shall be as laid down in the Financial 
Regulation applicable to the general budget of the European 
Commun i t i es." 
20 
11. Article 11 becomes Article 10: 
The first subparagraph of paragraph 2 is replaced by the following: 
"2. In the event of unavoidable, exceptional or unforeseen 
circumstances, the Management Board of the Centre may send 
supplementary or amending estimates to the Commission. Such 
estimates shall be presented and adopted in the same form and 
following the same procedure as the statement whose forecasts 
they amend. They must be justified by reference to the 
statement." 
12. Article 12 becomes Article 11. 
13. Article 13 becomes Article 12. 
14. Article 14 becomes Article 13. The following paragraph is 
added: 
"The statement and the list of posts shall be published in the 
Official Journal of the European Communities, at the same time as 
the budget of the Communities." 
15. Article 15 becomes Article 14 and is replaced by the following: 
"Article 14 
The statement of revenue and expenditure shall be subdivided into 
titles, chapters, articles and items according to the nature of the 
revenue or expenditure or the intended purpose thereof, following a 
decimal classification system. 
11 shaI I show: 
1. as regards the statement of revenue: 
(a) the revenue for the financial year in question. 
(b) the revenue entered for the preceding financial year and the 
revenue established for the last financial year for which 
accounts have been closed. 
(c) appropriate remarks on each revenue heading; 
2. as regards the statement of expenditure: 
(a) the appropriations made available for the financial year in 
question divided into titles, chapters, articles and items, 
(b) the appropriations made available for the preceding 
financial year and the actual expenditure for the last 
financial year for which the accounts have been closed, 
increased by the amounts carried forward, using the same 
classi f icat ion; 
21 
(c) appropriate remarks on each subdivision; 
(d) in an annex, an establishment plan setting the number of 
permanent and temporary posts for each grade in each 
category and indicating the number of posts authorized for 
the preceding year." 
16. Article 16 becomes Article 15 and is replaced by the following: 
"Article 15 
The establishment plan drawn up by the budgetary authority shall 
constitute an absolute limit for the Centre; no appointment may be 
made in excess of that limit. 
Instances of half-time work authorized by the Director in accordance 
with Article 29a of Council Regulation No 1859/76* laying down the 
conditions of employment of staff of the Centre may be compensated 
for by the recruitment of other staff within the limits laid down by 
the budgetary authority in the budgetary procedure." 
17. Article 17 becomes Article 16 and is replaced by the following: 
"Article 16 
The statement of revenue and expenditure shall be implemented in 
accordance with the principle that the authorizing officers and 
accounting officers are different individuals. 
The appropriations shall be administered by the authorizing officer 
who alone is empowered to enter into commitments regarding 
expenditure, establish entitlements to be collected and issue 
recovery orders and payment orders. The operations of collection or 
payment shall be carried out by the accounting officer. The duties 
of authorizing officer, financial controller and accounting officers 
shall be mutually incompatible." 
18. Article 18 becomes Article 17 and is replaced by the following: 
"Article 17 
The Management Board of the Centre shall implement the statement of 
revenue and expenditure on its own responsibility in accordance with 
this Regulation and within the limits of the appropriations 
allotted. 
* OJ L 214, 6.8.1976. p. 1. 
22 
With the exception of the cases provided for in Articles 23. 30. 38 
and 41 involving decisions overruling the financial controller, the 
Management Board shall delegate its powers under conditions to be 
laid down by it and within the limits set in the instrument of 
delegation which shall be communicated to the delegatee, the 
accounting officers, the financial controller and the Court of 
Auditors. Those so empowered may act only within the limits of the 
powers expressly conferred upon them." 
19. The following Article 18 is inserted: 
"Article 18 
Where revenue and expenditure operations are managed by means of 
integrated computer systems, the provisions of Sections II and III 
and of Title VI shall apply with due allowance for the possibilities 
and requirements deriving from computerized management. To this 
end: 
- the supporting documents may remain with the authorizing officer 
or the accounting officer for the purposes of checking, 
signatures and approvals may be added in appropriate 
computerized form. 
The conditions for implementing this Article shall be determined by 
the implementing rules provided for in Article 77." 
20. Article 19 is replaced by the following: 
"Article 19 
The financial controller of the Commission shall be responsible for 
checking the commitment and payment of all expenditure and the 
establishment and recovery of all revenue of the Centre, in 
accordance with the principles laid down in Article 2. 
Monitoring shall be carried out by that official by means of 
inspection of the files relating to expenditure and revenue and, if 
necessary, on the spot. 
The financial controller may be assisted in his duties by one or 
more assistant financial controllers. 
The financial controller must be consulted on the setting UP of the 
accounting systems of the Centre. He shall have access to the data 
of such systems." 
23 
21.(a) The following paragraph is inserted after the second paragraph 
of Art icle 20: 
"He shall be responsible for preparing the financial statements 
provided for in Articles 67 and 68." 
(b) The following paragraph is added: 
"The special rules applicable to the accounting officer and to 
assistant accounting officers shall be laid down in the 
implementing rules provided for in Article 77." 
22. The following paragraph 5 is inserted in Article 21: 
"5. Appropriations may be transferred only to budget headings for 
which the statement of revenue and expenditure has authorized 
appropriations or carried a token entry." 
The former paragraph 5 becomes paragraph 6. 
23. Points (b) and (c) of Article 22 are replaced by the following: 
"(b) the following sums may be reused under the heading to which 
the initial expenditure was charged: 
- revenue arising from the refund of amounts paid in error 
against appropriations entered in the statement of 
revenue and expenditure; 
- proceeds from the supply of goods and services to other 
institutions or bodies, including refunds by such 
institutions or bodies of mission allowances paid on 
their behalf; 
insurance payments received; 
- revenue from payments connected with lettings; 
- revenue from the sale of publications and films; 
- refunds of taxes - incorporated in the price of the 
products or services provided to the Centre - effected by 
Member States pursuant to the provisions of the Protocol 
on the Privileges and Immunities of the European 
Communi t ies; 
- revenue from the supply of goods and services against 
payment; 
- proceeds from the sale of vehicles, equipment and 
installations and scientific and technical apparatus, 
equipment and materials which are being replaced or 
scrapped. 
4) 
.24 
Such sums must be re-used before the end of the financial year 
following that in which the revenue was collected. 
The chart of accounts shall include suspense accounts to record 
re-use operations in both revenue and expenditure; 
(c) Adjustments may be made in respect of exchange differences 
occurring in budget operations. The final gain or loss shall be 
included in the balance for the year." 
24. Article 23 is replaced by the following: 
"Article 23 
1. All measures which may give rise to or modify a debt due to the 
Centre must be preceded by a proposal from the authorizing 
officer. Such proposals shall be sent to the financial 
controller for his approval and to the accounting officer for 
provisional registration. They shall mention, in particular, 
the type of revenue, the estimated amount thereof and the item 
to which it is to be booked and also the name and description of 
the debtor. They shall be registered after approval by the 
financial controller. The latter's approval shall serve to 
establish that: 
(a) the revenue is booked to the correct item; 
(b) the proposal is in order and conforms to the relevant 
provisions, in particular in the statement of revenue and 
expenditure, the rules applying to the Centre and all acts 
made in implementation of those Regulations, and to the 
principles of sound financial management referred to in 
Art icle 2. 
The financial controller may withhold his approval. The 
Management Board may, by a decision stating the full reasons 
therefor, and on its sole responsibility, overrule this refusal. 
This decision shall be final and binding; it shall be 
communicated for information to the financial controller. The 
Management Board shall inform the Court of Auditors of all such 
decisions within one month. 
2. The competent authorizing officer shall draw up, in respect of 
every debt established, a recovery order which shall be sent 
with supporting documents to the financial controller for his 
prior approval. Such recovery orders shall, after they have 
received the approval of the financial controller, be registered 
by the accounting officer. 
25 
The purpose of the approval of the financial controller shall be 
to establish that: 
(a) the revenue is booked to the correct item; 
(b) the order is in order and conforms to the relevant 
provisions; 
(c) the supporting documents are in order; 
(d) the debtor is correctly described; 
(e) the due date is indicated; 
(f) the principles of sound financial management referred to in 
Article 2 have been applied; 
(g) the amount and currency of the sum to be recovered are 
correct. 
If the financial controller's approval is withheld, the second 
subparagraph of paragraph 1 shall apply." 
25. Article 24 is replaced by the following: 
"Article 24 
1. The accounting officer shall assume responsibility for the 
recovery orders duly drawn up. 
He shall exercise all due diligence to ensure that the resources 
due to the Centre are recovered at the due dates stipulated in 
the recovery orders, and that the rights of the Centre are 
safeguarded. 
The accounting officer shall inform the authorizing officer and 
the financial controller of any revenue not recovered within the 
t i me limits laid down. 
2. If the authorizing officer waives the right to recover an 
established debt, he shall send beforehand a proposal for 
cancellation to the financial controller for his approval and to 
the accounting officer for information. 
The purpose of the approval of the financial controller shall be 
to establish that the waiver is in order and conforms with the 
principles of sound financial management referred to in 
Art icle 2. The proposal concerned shall be registered by the 
accounting officer. 
If approval is withheld, the Management Board may, by a decision 
stating the full reasons therefor, and on its sole 
responsibility, overrule this refusal. This decision shall be 
final and binding; it shall be communicated for information to 
the financial controller. 
The Management Board shall inform the Court of Auditors of all 
such decisions within one month. 
When the financial controller finds that a document establishing 
a debt has not been drawn up, or that a sum due has not been 
recovered, he shall inform the Management Board." 
26 
26. In Article 26, "of Article 12" is replaced by "of Article 11". 
27. Paragraph 2 of Article 27 is replaced by the following: 
"2. The procedure for implementing paragraph 1 above shall be 
determined by the implementing rules provided for in Article 77. 
This procedure shall ensure that an exact account is kept of 
commitments and authorizations in terms of actual needs." 
28. Article 28 is replaced by the following: 
"Article 28 
Without prejudice to the provisions of Article 18, proposals for 
commitments, accompanied by supporting documents, shall be 
transmitted to the financial controller and to the accounting 
officer; they shall show, in particular, the purpose of the 
expenditure, the estimated amount involved, indicating the currency 
where possible, the budget item to which it is to be charged and 
also the name and description of the creditor; they shall be 
registered, after approval by the financial controller, in 
accordance with the implementing rules provided for in Article 77." 
29. (a) In Article 29, point (d) is replaced by the following: 
"(d) the principles of sound financial management referred to 
in Article 2 have been applied." 
(b) The second paragraph is replaced by the following: 
"Approval may not be conditional." 
30. In Article 30, the last sentence of the third paragraph is 
replaced by the following: 
"The Management Board shall inform the Court of Auditors of all such 
decisions within one month." 
31. (This amendment to Article 33 does not affect the English text.) 
27 
32. (a) (This amendment to Article 34 does not affect the English 
text.) 
(b) In Article 34, the third indent of the first paragraph is 
replaced by the following: 
the amount to be paid (in figures and words), expressed in 
ecus or in national currency," 
33. In Article 35, "in Article 52" is replaced by "in Article 53". 
34. Article 36 is replaced by the following: 
"Article 36 
1. For payments by instalment, the first payment order shall be 
accompanied by documents establishing the creditor's claim to 
payment of the instalment in question. Subsequent payment 
orders shall refer to the supporting documents already 
furnished, and repeat the reference number of the first payment 
order. 
2. The authorizing officer may grant advances to personnel if a 
provision laid down by regulation specifically provides 
therefor. 
The authorizing offer may grant advances to cover disbursements 
to be effected by a member of the staff on behalf of the Centre. 
Apart from the imprest accounts referred to in Article 43, no 
advance may be paid unless it has been approved beforehand by 
the financial controller." 
35. Article 37 is replaced by the following: 
"Article 37 
Without prejudice to Article 18, payment orders shall be sent to the 
financial controller for prior approval. 
The purpose of this prior approval shall be to establish that: 
(a) the payment order was properly issued; 
(b) the payment order agrees with the commitment of expenditure and 
that the amount thereof is correct, taking account of the 
principles and requirements of sound financial management 
referred to in Article 2; 
(c) the expenditure is charged to the correct item; 
(d) the appropriations are available; 
(e) the supporting documents are in order; 
(f) the payee is correctly named and described." 
28 
36. (This amendment to Article 39 does not affect the English text). 
37. In Article 42, the second paragraph is replaced by the 
following: 
"The procedure for opening, administering and using such accounts 
shall be determined by the implementing rules provided for in 
Article 77. These rules shall, in particular, indicate which items 
of expenditure must necessarily be paid either by cheque or by post 
office or bank transfer order, and shall require the Joint signature 
on cheques and on post office or bank transfer orders of two duly-
authorized officials, one signature necessarily being that of the 
accounting officer, an assistant accounting officer, or an 
administrator of an imprest account." 
38. Article 43 is replaced by the following: 
"Article 43 
For the payment of certain categories of expenditure, imprest 
accounts may be set up in accordance with the implementing measures 
provided for in Article 77. 
Only the accounting officer may replenish the imprest accounts, save 
in exceptional cases defined in the implementing rules of this 
Regulat ion. 
These measures shall contain specific provisions concerning in 
part icular: 
the appointment of administrators of imprest accounts, 
the nature and maximum amount of each item of expenditure to be 
incurred, 
the maximum amount of the imprest which may be advanced, 
the time within which supporting documents must be produced, 
the responsibility of the administrators of imprest accounts. 
39. A new Section IV is inserted after Article 43: 
29 
"SECTION IV 
MANAGEMENT OF POSTS 
Article 44 
1. The following shall be established: 
(a) a file identifying the posts and containing a job 
description for each category A post; 
(b) an organization chart showing the organization of the 
departments detailing the tasks of each administrative unit. 
2. If the note 'to be abolished' is placed against a post in the 
statement of revenue and expenditure, it may no longer be filled 
when the next vacancy arises in the same career." 
40. Article 44 becomes Article 45. 
The first paragraph of this article is replaced by the following: 
"1. Contracts for the purchase or hiring of buildings or goods for 
the provision of services or for building works shall be in 
writing. Apart from contracts relating to the purchase of a 
building already constructed or to the leasing of a building, 
all such contracts shall be concluded after an invitation to 
tender has been issued either by the automatic public tendering 
procedure or the discretionary tendering procedure. 
However, contracts may be made by private treaty in the 
circumstances referred to in Article 47. 
Contracts may be made against invoice or bill of costs in cases 
provided for in Article 51." 
41. Article 45 becomes Article 46. 
In paragraph 3, "in Article 76" is replaced by "in Article 77". 
30 
42. Article 46 becomes Article 47. 
Point (a) of this article is replaced by the following: 
"(a) where the contract for the purchase or hiring of goods, for 
the provision of services or for building works involves an 
amount not exceeding the limit laid down in the implementing 
rules provided for in Article 126 of the Financial 
Regulation applicable to the general budget of the 
Communities, the Centre being bound, however, as far as 
possible and by all appropriate means, to enable suppliers 
who are likely to be able to supply the goods and services 
in question to compete." 
In point (b), "in Article 45" is replaced by "in Article 46". 
43. Article 47 becomes Article 48. 
44. Article 48 becomes Article 49 and is replaced by the following: 
"Article 49 
Contracts involving amounts exceeding the amount laid down in the 
implementing rules provided for in Article 126 of the Financial 
Regulation applicable to the general budget of the Communities shall 
be subject to the authorization of the Management Board." 
45. Article 49 becomes Article 50. 
In the third paragraph, "exceeding 100 000 units of account" is 
replaced by "exceeding the limit laid down in the implementing rules 
provided for in Article 126 of the Financial Regulation applicable 
to the general budget of the Communities". 
46. Article 50 becomes Article 51 and is replaced by the following: 
"Article 51 
Contracts may be made against invoice or bill of costs where the 
estimated value of the goods, services or works does not exceed the 
limits laid down by the implementing rules provided for in 
Article 126 of the Financial Regulation applicable to the general 
budget of the Communities." 
31 
47. Article 51 becomes Article 52 and is replaced by the following: 
"Art icle 52 
When concluding contracts referred to in this Regulation, the Centre 
shall comply with the relevant measures laid down by the Council in 
implementation of the Treaty." 
48. Article 52 becomes Article 53 and is replaced by the following: 
"Article 53 
Permanent inventories showing the quant i ty and value of all movable 
and immovable property belonging to the Centre shall be kept in 
accordance with a model drawn up by the Commission. Only movable 
property exceeding a specific value laid down in the implementing 
rules provided for in Article 77 shall be entered in those 
inventor ies. 
The Centre shall instruct its departments to check that the entries 
in the inventory correspond to the facts." 
49. Article 53 becomes Article 54. 
In the first paragraph, "under Article 76" is replaced by "under 
Article 77". 
50. Article 54 becomes Article 55. 
The first paragraph is replaced by the following: 
"A statement or record shall be drawn up by the authorizing officer 
and authenticated by the financial controller whenever any property 
in the inventory is sold, given away free of charge, scrapped, hired 
out, or missing on account of loss, theft or any other reason." 
51. Article 55 becomes Article 56. 
In the first paragraph, "in Article 52" is replaced by "in 
Article 53". 
52. Article 56 becomes Article 57 and is replaced by the following: 
(5) 
32 
"Article 57 
The accounts shall be kept in ecus by the method of double entry, on 
the basis of the calendar year. They shall show all revenue and 
expenditure for the financial year; they shall be authenticated by 
supporting documents. They may in addition be kept in the currency 
of the country where the Centre has its seat. 
The revenue and expenditure account and the balance sheet shall be 
drawn up in ecus." 
53. Article 57 becomes Article 58 and is replaced by the following: 
"Article 58 
The chart of accounts shall make a clear distinction between 
budgetary accounts and cash accounts. 
It shall comprise two parts: 
(a) accounts of budgetary expenditure and revenue, which show the 
detailed implementation of the statement of revenue and 
expendi ture; 
(b) the balance sheet accounts, which disclose the assets of the 
Centre. 
These accounts shall show the expected effect of the Centre's legal 
obiigat ions. 
The accounts shall make it possible to draw up a balance of assets 
and a monthly statement of revenue and expenditure by chapter and 
art icle. 
These statements shall be forwarded to the financial controller, the 
authorizing officer and the Court of Auditors." 
54. Article 58 becomes Article 59 and is replaced by the following: 
"Article 59 
Any advance, other than regular advances which are periodically re­
examined, shall be entered in a suspense account and settled at the 
latest during the financial year which follows the payment of this 
advance. 
However, the advances referred to in the second subparagraph of 
Article 36(2) shall be settled as a general rules within six weeks 
following completion of the project for which they were granted." 
33 
55. Article 59 becomes Article 60 and is replaced by the following: 
"Article 60 
The detailed conditions for the establishment and operation of the 
chart of accounts for transactions relating both to assets and to 
the implementation of the budget shall be determined by the 
implementing rules provided for in Article 77." 
56. Article 60 becomes Article 61. 
57. Article 61 becomes Article 62. 
(a) "Receivable orders" is replaced by "recovery orders". (A 
further amendment does not affect the English text). 
(b) The following paragraph is added: 
"The same shall apply if they neglect to issue payment orders or 
are, without Justification, iate in issuing them, thereby 
rendering the Centre liable to civil action by third parties." 
58. Article 62 becomes Article 63 and is replaced by the following: 
"Article 63 
1. Accounting officers and assistant accounting officers shall 
render themselves liable to disciplinary action and, where 
appropriate, to payment of compensation as regards payments made 
by them in disregard of the third subparagraph of Article 40. 
They shall render themselves liable to disciplinary action and 
to payment of compensation as regards any loss or deterioration 
of the monies, assets and documents in their charge where such 
loss or deterioration result from an intentional mistake or 
serious negligence on their part. 
Under the same conditions, they shall be responsible for the 
correct execution of orders received by them in respect of the 
use and the administration of bank and post office giro 
accounts, and in particular: 
(a) where the recoveries or payments made by them do not agree 
with the amounts on the corresponding recovery or payment 
orders; 
(b) where they effect payment to a party other than the payee 
ent i tled. 
34 
2. Administrators of advance funds shall render themselves liable 
to disciplinary action and, where appropriate, to payment of 
compensation in the following cases: 
(a) where they cannot show due warrant with proper documents for 
payments made by them; 
(b) where they effect payments to parties other than entitled 
payees. 
They shall be liable to disciplinary action and to payment of 
compensation in respect of any loss or deterioration of the 
monies, assets and documents in their charge where such loss or 
deterioration results from an intentional mistake or serious 
negligence on their part. 
3. The accounting officer, assistant accounting officers and 
administrators of imprest accounts shall insure themselves 
against the risks arising under this Article. 
The Centre shall cover the insurance costs relating thereto. 
A special allowance is granted to the accounting officer, 
assistant accounting officers and administrators of imprest 
accounts. The sums corresponding to this allowance shall be 
credited each month to an account opened by the Centre on behalf 
of each official in order to establish a guarantee fund for the 
purpose of covering any cash or bank shortage for which the 
person concerned might render himself liable, in so far as such 
shortages have not been covered by refunds from insurance 
companies. 
The credit balance in these guarantee accounts shall be paid 
over to the persons concerned when they terminate their 
appointment as accounting officer, assistant accounting officer 
or administrator of imprest accounts." 
59. Article 63 becomes Article 64 and is replaced by the following: 
"Article 64 
Authorizing officers, accounting officers, assistant accounting 
officers and administrators of imprest accounts may be liable to 
payment of compensation and to disciplinary action in accordance 
with the provisions of Regulation No 1859/76." 
60. Article 64 becomes Article 65. 
35 
61. Article 65 becomes Article 66 and is replaced by the following: 
"Article 66 
The Management Board shall draw up each year a revenue and 
expenditure account for the Centre. 
The revenue and expenditure account shall cover all revenue and 
expenditure transactions relating to the preceding financial year. 
It shall be submitted in the same form and following the same 
subdivisions as the statement of reverse and expenditure. 
The revenue and expenditure account shall be preceded by an analysis 
of the financial management in respect of the year in question. For 
the drawing up of this analysis, the Centre shall supply details on 
the realization of the principles and objectives as referred to in 
Art icle 2. 
62. Article 66 becomes Article 67 and is replaced by the following: 
"Article 67 
The revenue and expenditure account shall include the following 
tables subdivided in accordance with the nomenclature of the 
Centre's statement of revenue and expenditure: 
1. a table of revenue comprising: 
estimated revenue for the financial year, 
amendments to the revenue estimates as a result of 
supplementary or amending statements, 
entitlements established in the course of the financial 
year, 
entitlements still to be collected from the preceding 
financial year, 
revenue collected during the financial year and revenue 
carried over pursuant to Article 6(3), 
amounts still to be collected at the end of the financial 
year, 
the cancellation of established entitlements. 
A statement shall be annexed, where appropriate, to this table, 
showing the balances and gross amounts of the transactions 
referred to in Article 22; 
2. a table showing changes in appropriations for the financial 
year, indicating: 
the initial appropriations; 
any amendments to appropriations made by means of transfers; 
any amendments made by means of supplementary or amending 
statements; 
the final appropriations for the financial year; 
appropriations carried over under Article 6; 
36 
3. a table of expenditure showing the use of the appropriations 
allocated for the financial year, indicating: 
the commitments entered into and chargeable to the financial 
year; 
the payments made and chargeable to the financial year; 
the amounts still to be paid at the close of the financial 
year; 
the appropriations carried over under Article 6; 
appropriations lapsing. 
A statement shall be annexed to this table, where appropriate, 
showing the balances and gross amounts of the transactions 
referred to in Article 22. 
4. A table showing the use of appropriations carried over from the 
preceding financial year, indicating: 
the amount of appropriations carried over; 
the payments made from appropriations which have been 
carr ied over; 
the unused appropriations lapsing". 
63. Article 67 becomes Article 68 and is replaced by the following: 
"Article 68 
1. The Management Board shall also draw up a balance sheet of the 
assets and liabilities of the Centre at 31 December of the 
preceding financial year. 
A statement of accounts showing cash movements and balances at 
the same date shall be attached thereto. 
The balance sheet shall include, on the assets side, the amount 
of revenue to be collected and, on the liabilities side, the 
amount of expenditure chargeable to the financial year, which 
have not yet been entered in the accounts. 
2. These documents shall be submitted to the financial controller." 
64. Article 68 becomes Article 69 and is replaced by the following: 
"Article 69 
The Management Board shall, by 31 March at the latest, send the 
revenue and expenditure account, the analysis of financial 
management and the balance sheet of the Centre for the preceding 
financial year to the Commission, the Council, the European 
Parliament and the Court of Auditors." 
37 
65. Article 69 becomes Article 70. 
"Audit Board" is replaced by "Court of Auditors". 
66. Article 70 becomes Article 71. 
"Audit Board" is replaced by "Court of Auditors". 
67. Article 71 becomes Article 72. 
"Audit Board" is replaced by "Court of Auditors". 
(a) The second paragraph is replaced by the following: 
"In particular, the Centre shall place at the disposal of the 
Court of Auditors all documents concerning the conclusion of 
contracts and all accounts of cash or materials, all accounting 
records or supporting documents, and also administrative 
documents pertaining thereto, all documents relating to revenue 
and expenditure, all inventories and all departmental 
organization charts which the Court of Auditors may consider 
necessary for auditing the revenue and expenditure account on 
the basis of records or on the spot, and all documents and data 
created or stored on a magnetic medium". 
(b) The fourth paragraph is replaced by the following: 
"The information supplied under (b) may be requested only by the 
Court of Auditors." 
(c) The seventh paragraph is replaced by the following: 
"The grant of aid to beneficiaries outside the Centre shall be 
subject to the acceptance in writing by the recipients of an 
audit being carried out by the Court of Auditors on the 
utilization of the amounts granted." 
68. Article 72 becomes Article 73 and is replaced by the following: 
"Article 73 
The report of the Court of Auditors established in accordance with 
Article 206a of the EEC Treaty shall be governed by the following 
provisions: 
1. the Court of Auditors shall transmit to the Centre and the 
Commission, by 15 July at the latest, any comments on the 
accounts and the balance sheet which are, in its opinion, of 
such a nature that they should appear in the annual reports. 
These comments must remain confidential. The Centre shall 
address its reply to the Court of Auditors and simultaneously to 
the Commission by 31 October at the latest; 
38 
2. the Court of Auditors' report shal1 contain an assessment of the 
soundness of financial management; 
3. the Court shall take all necessary steps to ensure that the 
replies of the Centre to its comments are published immediately 
following those comments; 
4. the Court of Auditors shall transmit to the authorities 
responsible for giving discharge, to the Centre and to the 
Commission, by 30 November at the latest, its annual report 
accompanied by the replies and it shall ensure publication 
thereof in the Official Journal of the European Communities." 
69. Former Article 73 is deleted. 
70. Article 74 is replaced by the following: 
"Article 74 
1. The European Parliament, upon a recommendation from the Council 
acting by a qualified majority, shall, before 30 April of the 
following year, give a discharge to the Management Board in 
respect of the implementation of the statement of revenue and 
expenditure. If that date cannot be met, the Parliament or the 
Council shall inform the Management Board of the reasons for the 
postponement. 
If the European Parliament postpones the decision giving 
discharge, the Management Board shall make every effort to take 
measures, as soon as possible, to facilitate removal of the 
obstacles to that decision. 
2. The discharge decision shall cover the accounts of all revenue 
and expenditure of the Centre, the resulting balance and the 
assets and liabilities of the Centre shown in the balance sheet. 
It shall include an assessment of the responsibility of the 
Management Board's budgetary management over the past financial 
year. 
3. The financial controller shall take account of the comments in 
the decisions giving discharge. 
4. The Management Board shall take all appropriate steps to act on 
the comments appearing in the decisions giving discharge. 
5. By 15 December of the year in which the decision giving 
discharge is taken, the Centre shall report on the measures 
taken in the light of these comments, and, in particular, on the 
instructions given to those of its departments which are 
responsible for the implementation of the budget. Such reports 
shall be transmitted to the European Parliament, the Council, 
the Commission and the Court of Auditors. 
39 
The Centre must also give an account, in an annex to the revenue 
and expenditure account for the next financial year, of the 
measures taken in the light of the comments appearing in the 
decisions giving discharge. 
6. Supporting documents pertaining to the accounts and the 
preparation of the revenue and expenditure account and the 
balance sheet shall be kept for a period of five years following 
the date of the decision giving discharge in respect of the 
implementation of the statement of revenue and expenditure. 
However, the documents relating to transactions not finally 
closed shall be kept for longer than the said period until the 
end of the year following the year in which such transactions 
are f inaIly closed." 
71. Article 75 is replaced by the following: 
"Article 75 
The Management Board shall inform the Court of Auditors, as soon as 
possible, of all decisions and rules taken pursuant to Articles 3, 
6. 8. 13 and 21. 
The Court of Auditors and,the financial controller shall be informed 
of the appointment of authorizing officers, the accounting officer, 
assistant accounting officers and administrators of imprest accounts 
and of the acts of delegation or appointment under Articles 17., 20 
and 43. 
The Management Board shall transmit to the Court of Auditors any 
rules of procedure they adopt in respect of financial matters." 
72. The following Article 76 is inserted: 
"Article 76 
Until the entry into force of the implementing rules provided for in 
Article 126 of the Financial Regulation applicable to the general 
budget of the Communities, the limit values to be specified for the 
purposes of Articles 47, 49, 50 and 51 shall be as follows-. 
Article 47, point (a): the limit below which contracts may be 
made by private treaty shall be ECU 10 000, 
Article 49: the limit above which the authorization of the 
Management Board shall be required shall be ECU 35 000, 
third subparagraph of Article 50: the threshold for compulsory 
security shall be ECU 250 000, 
40 
Article 51: the limits below which contracts may be made 
against invoice or bill of costs shall be ECU 750 and ECU 2 000 
respectively for expenditure away from the Centre." 
73. Article 76 becomes Article 77. 
74. Article 77 becomes Article 78. 
Art icle 2 
This Regulation shall enter into force on the third day following its 
publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, 
For the Counc iI 
The President 
41 
II (D) Amended proposal for a COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 1417/76 of 1 June 1976 on the 
financial provisions applying to the European Foundation for the 
Improvement of Living and Working Conditions 
42 
Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1417/76 
on the financial provisions applying to the European Foundation 
for the Improvement of Living and Working Conditions 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 209 thereof, 
Having regard to Council Regulation (EEC) No 1365/75 of 26 May 1975 
establishing a European Foundation for the Improvement of Living and 
Working Conditions,1 as amended by Regulation (EEC) No ,* and 
in particular Article 16 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Court of Auditors, 
Whereas, pursuant to Article 130 of the Financial Regulation of 
21 December 1977,3 as last amended by Council Regulation No 610/90 of 
13 March 1990,4 the financial provisions governing the Foundation 
should approximate as closely as possible to the provisions of the 
Financial Regulation applicable to the general budget of the European 
Communities and must therefore be updated; 
1 0J L 139, 30.5.1975, p. 1. 
2 QJL 
3 0J L 356, 31.12.1977, p. 1. 
4 0J L 70, 16.3.1990, p. 1. 
43 
Whereas the Treaty of 22 July 1975, amending certain financial 
provisions of the Treaties establishing the European Communities and of 
the Treaty establishing a single Council and a single Commission of the 
European Communities, modified the procedure for giving a discharge to 
the Commission in respect of the implementation of the budget, and 
substituted the Court of Auditors for the Audit Board in all the texts 
referring to the Audit Board; 
Whereas Council Regulation (EEC) No 1417/765 should be amended 
accordingly, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 1417/76 is hereby amended as follows: 
1. Article 1(2) is replaced by the following paragraphs 2 and 3: 
"2. Expenditure may not be authorized for a period extending 
beyond the financial year. 
3. Administrative expenditure arising from: 
- contracts which have been concluded, in accordance with 
local usage, or 
- contractual provisions relating, in particular, to the 
supply of equipment, 
for periods extending beyond the financial year shall be 
charged to the statement of revenue and expenditure for the 
financial year in which it is effected." 
2. Article 2 is replaced by the following: 
"Article 2 
The budget appropriations must be used in accordance with the 
principles of sound financial management, and in particular 
those of economy and cost-effectiveness. Quantified objectives 
must be identified and the progress of their realization 
monitored." 
5 OJ L 164, 24.6.1976, p. 1. 
44 
3. Article 3(1) is replaced by the following: 
"1. Subject to Article 22, all revenue and expenditure shall be 
entered in full in the statement of revenue and expenditure 
and in the accounts without any adjustment against each 
other." 
4. The first subparagraph of Article 3(2) is replaced by the 
following: 
"2. Total revenue shall cover total expenditure. 
However, certain revenues shall not be used for any other 
purpose, notably: 
- revenue earmarked for a specific purpose, such as income 
from foundations, subsidies, gifts and bequests, 
- revenue from third parties in respect of work carried out 
at their request." 
The second and third subparagraphs become paragraph 3. 
5_. Article 4 is replaced by the following: 
"Article 4 
No revenue shall be collected and no expenditure effected unless 
credited to or charged against an article in the statement of 
revenue and expenditure. 
No expenditure may be committed or authorized in excess of the 
authorized appropriations, without prejudice to Article 22." 
6. Article 6 is replaced by the following: 
"Art icle 6 
The following rules shall govern the utilization of 
appropr iat ions: 
1 . (a) Appropriations still uncommitted at the end of the 
financial year for which they were entered, shall, as 
a rule, lapse. 
(b) Appropriations relating to remunerations and 
a Ilowances of staff may not be carried over. 
(c.) The appropriations not committed at 31 December may be 
carr ied over to the next financial year only. 
(d.) The appropriations in respect of payments still 
outstanding at 31 December for commitments properly 
entered into between 1 January and 31 December shall 
be carried over automatically to the next financial 
year only. 
45 
2. For the appropriations mentioned in point 1 (c) the 
Commission shall forward to the budgetary authority, not 
later than 15 February, the duly substantiated requests to 
carry over appropriations which the Foundation has sent to 
it before 1 February. 
The carryover of such appropriations may be proposed only 
for exceptional reasons to satisfy compelling needs which 
cannot be covered by appropriations for the following 
financial year. In principle, such carryovers shall be to 
cover needs remaining from the previous financial year for 
which, owing to delays which were not the fault of the 
authorizing officers, the appropriations could not be used 
in t ime. 
The European Parliament shall consult the Council and shall 
act on these requests for carryovers. 
In the absence of a decision by the budgetary authority 
within a period of six weeks, the requests for carryovers 
shall be deemed to be approved. 
3. Unused revenue and appropriations still available on 
31 December, arising out of the donations referred to in 
Article 3(2), shall be carried over automatically. 
4. The following appropriations shall lapse at the end of the 
year: 
(a) appropriations from the previous financial year: 
- appropriations carried over by decision under 
point 1(c) which have been neither committed nor paid, 
- appropriations carried over automatically under 
point 1(d) which have not been paid; 
(b) appropriations of the financial year which are not 
being carr ied over. 
5. A list of automatic carryovers shall be sent to the 
Commission for its information before 1 March. The 
Commission shall forward this list to the European 
Parliament and the Council for their information. 
6. For the purposes of implementing the statement of revenue 
and expenditure, the use of appropriations carried over 
shall be shown separately, for each budget item, in the 
accounts for the current financial year." 
The following paragraph is added to Article 7: 
"Expenditure relating to rents or certain associated expenditure 
which is payable in advance in accordance with provisions laid 
down by law or contracts may give rise to payments from 
20 December onwards to be charged to the appropriations for the 
next financial year." 
Article 8 is replaced by the following: 
46 
"Article 8 
1. If the statement of revenue and expenditure is not finally 
adopted at the beginning of the financial year, Article 204 
of the Treaty shall apply to commitments and payments of 
expenditure of a kind already approved in principle in the 
last statement duly adopted. 
An item of expenditure shall be considered as having been 
approved in principle in the last statement duly adopted if 
it could have been charged to a specific budget heading 
under the financial year concerned. 
2. Payments may be made monthly in respect of any chapter up to 
one-twelfth of the total appropriations entered in the 
chapter in question for the preceding financial year, 
account being taken of transfers: this may not, however, 
have the effect placing at the disposal of the Foundation 
monthly appropriations in excess of one-twelfth of the 
amount of the subsidy reserved for the Foundation in the 
draft budget or, in the absence thereof, in the preliminary 
draft budget of the Communities. Commitments may be entered 
into in respect of the relevant chapter up to one-quarter of 
the total appropriations entered in the chapter in question 
for the preceding financial year, account being taken of 
transfers, increased by one-twelfth for each completed 
month; the amount of the subsidy reserved for the Foundation 
in the draft budget or, in the absence thereof, in the 
preliminary draft budget of the Communities may not, 
however, be exceeded. 
3.. At the request of the Administrative Board, the Commission 
may, in the light of administrative requirements, authorize 
two or more provisional twelfths simultaneously, provided 
that the amount authorized for each chapter does not exceed 
the maximum annual limit provided for in paragraph 2. 
4. If, for a given chapter, the authorization of two or more 
provisional twelfths granted in the circumstances provided 
for in paragraph 3 does not enable the expenditure necessary 
to avoid a break in continuity of the Foundation's activity 
in the area in question to be met, an overstepping of the 
total provided for in paragraph 3 may, exceptionally, be 
authorized in accordance with the same procedure, provided 
that the overall total of the appropriations opened in the 
statement of revenue and expenditure of the preceding year 
is not exceeded." 
9. Art icle 9 is deleted. 
10. Article 10 becomes Article 9 and is replaced by the following: 
47 
"Article 9 
The statement of revenue and expenditure shall be drawn up in 
ecus. The value of the ecu and the arrangements for its 
conversion into national currencies shall be as laid down in the 
Financial Regulation applicable to the general budget of the 
European Communities." 
11. Article 11 becomes Article 10: 
The first subparagraph of paragraph 2 is replaced by the following: 
"2. In the event of unavoidable, exceptional or unforeseen 
circumstances, the Administrative Board of the Foundation may 
send supplementary or amending estimates to the Commission. 
Such estimates shall be presented and adopted in the same form 
and following the same procedure as the statement whose 
forecasts they amend. They must be justified by reference to 
the statement." 
12. Article 12 becomes Article 11. 
13. Article 13 becomes Article 12. 
14. Article 14 becomes Article 13. The following paragraph is 
added: 
"The statement and the list of posts shall be published in the 
Official Journal of the European Communities, at the same time 
as the budget of the Communities." 
15. Article 15 becomes Article 14 and is replaced by the following-. 
"Article 14 
The statement of revenue and expenditure shall be subdivided 
into titles, chapters, articles and items according to the 
nature of the revenue or expenditure or the intended purpose 
thereof, following a decimal classification system. 
It shalI show: 
1. as regards the statement of revenue: 
(a) the revenue for the financial year in question. 
(b) the revenue entered for the preceding financial year 
and the revenue established for the last financial 
year for which accounts have been closed. 
(c) appropriate remarks on each revenue heading; 
48 
2. as regards the statement of expenditure: 
(a) the appropriations made available for the financial 
year in question divided into titles, chapters, 
art icles and i terns, 
(b) the appropriations made available for the preceding 
financial year and the actual expenditure for the last 
financial year for which the accounts have been 
closed, increased by the amounts carried forward, 
using the same classification; 
(c) appropriate remarks on each subdivision; 
(d) in an annex, an establishment plan setting the number 
of permanent and temporary posts for each grade in 
each category and indicating the number of posts 
authorized for the preceding year. 
16. Article 16 becomes Article 15 and is replaced by the following: 
"Article 15 
The establishment plan drawn up by the budgetary authority shall 
constitute an absolute limit for the Foundation; no appointment 
may be made in excess of that limit. 
Instances of half-time work authorized by the Director in 
accordance with Article 29a of Council Regulation No 1860/76* 
laying down the conditions of employment of staff of the 
Foundation may be compensated for by the recruitment of other 
staff within the limits laid down by the budgetary authority in 
the budgetary procedure." 
17. Article 17 becomes Article 16 and is replaced by the following: 
"Art icle 16 
The statement of revenue and expenditure shall be implemented in 
accordance with the principle that the authorizing officers and 
accounting officers are different individuals. 
The appropriations shall be administered by the authorizing 
officer who alone is empowered to enter into commitments 
regarding expenditure, establish entitlements to be collected 
and issue recovery orders and payment orders. The operations of 
collection or payment shall be carried out by the accounting 
officer. The duties of authorizing officer. financial 
controller and accounting officer shall be mutually 
incompat ible." 
18. Article 18 becomes Article 17 and is replaced by the following: 
OJ L 214, 6.8.1976, p. 1 
49 
"Art icle 17 
The Administrative Board of the Foundation shall implement the 
statement of revenue and expenditure on its own responsibility 
in accordance with this Regulation and within the limits of the 
appropriations allotted. 
With the exception of the cases provided for in Articles 23. 30. 
38 and 41 involving decisions overruling the financial 
controller. 
The Administrative Board shall delegate its powers under 
conditions to be laid down by it and within the limits set in 
the instrument of delegation which shall be communicated to the 
delegatee, the accounting officers, the financial controller and 
the Court of Auditors. Those so empowered may act only within 
the limits of the powers expressly conferred upon them." 
19. The following Article 18 is inserted: 
"Art icle 18 
Where revenue and expenditure operations are managed by means of 
integrated computer systems, the provisions of Sections II 
and III and of Title VI shall apply with due allowance for the 
possibilities and requirements deriving from computerized 
management. To this end: 
the supporting documents may remain with the authorizing 
officer or the accounting officer for the purposes of 
check ing, 
signatures and approvals may be added in appropriate 
computerized form. 
The conditions for implementing this Article shall be determined 
by the implementing rules provided for in Article 77." 
20. Article 19 is replaced by the following: 
"Art icle 19 
The financial controller of the Commission shall be responsible 
for checking the commitment and payment of all expenditure and 
the establishment and recovery of all revenue of the Foundation, 
in accordance with the principles laid down in Article 2. 
Monitoring shall be carried out by that official by means of 
inspection of the files relating to expenditure and revenue and, 
if necessary, on the spot. 
The financial controller may be assisted in his duties by one or 
more assistant financial controllers. 
50 
The financial controller must be consulted on the setting up of 
the accounting systems of the Foundation. He shall have access 
to the data of such systems." 
21. (a) The following paragraph is inserted after the second paragraph 
of Article 20: 
"He shall be responsible for preparing the financial 
statements provided for in Articles 67 and 68." 
(b) The following paragraph is added: 
"The special rules applicable to the accounting officer and 
to assistant accounting officers shall be laid down in the 
implementing rules provided for in Article 77." 
22. The following paragraph 5 is inserted in Article 21: 
"5. Appropriations may be transferred only to budget headings 
for which the statement of revenue and expenditure has 
authorized appropriations or carried a token entry." 
The former paragraph 5 becomes paragraph 6. 
23. Points (b) and (c) of Article 22 are replaced by the following: 
"(b) the following sums may be reused under the heading to 
which the initial expenditure was charged: 
- revenue arising from the refund of amounts paid in 
error against appropriations entered in the statement 
of revenue and expenditure; 
- proceeds from the supply of goods and services to 
other institutions or bodies, including refunds by 
such institut ions' or bodies of mission allowances paid 
on their behalf; 
insurance payments received; 
- revenue from payments connected with lettings; 
- revenue from the sale of publications and films-, 
- refunds of taxes - incorporated in the price of the 
products or services provided to the Foundation -
effected by Member States pursuant to the provisions 
of the Protocol on the Privileges and Immunities of 
the European Communities; 
51 
- revenue from the supply of goods and services against 
payment; 
- proceeds from the sale of vehicles, equipment and 
installations and scientific and technical apparatus, 
equipment and materials which are being replaced or scrapped 
Such sums must be re-used before the end of the financial year 
following that in which the revenue was collected. 
The chart of accounts shall include suspense accounts to record re-use 
operations in both revenue and expenditure; 
(c) Adjustments may be made in respect of exchange differences 
occurring in budget operations. The final gain or loss 
shall be included in the balance for the year." 
24. Article 23 is replaced by the following: 
"Article 23 
1. All measures which may give rise to or modify a debt due to 
the Foundation must be preceded by a proposal from the 
authorizing officer. Such proposals shall be sent to the 
financial controller for his approval and to the accounting 
officer for provisional registration. They shall mention, 
in particular, the type of revenue, the estimated amount 
thereof and the item to which it is to be booked and also 
the name and description of the debtor. They shall be 
registered after approval by the financial controller. The 
latter's approval shall serve to establish that: 
(a) the revenue is booked to the correct item; 
(b) the proposal is in order and conforms to the relevant 
provisions, in particular in the statement of revenue 
and expenditure, the rules applying to the Foundation 
and all acts made in implementation of those 
Regulations, and to the principles of sound financial 
management referred to in Article 2. 
The financial controller may withhold his approval. The 
Administrative Board may, by a decision stating the full 
reasons therefor, and on its sole responsibility, overrule 
this refusal. This decision shall be final and binding; it 
shall be communicated for information to the financial 
controller. The Administrative Board shall inform the Court 
of Auditors of all such decisions within one month. 
2. The competent authorizing officer shall draw up, in respect 
of every debt established, a recovery order which shall be 
sent with supporting documents to the financial controller 
for his prior approval. Such recovery orders shall, after 
they have received the approval of the financial controller, 
be registered by the accounting officer. 
52 
The purpose of the approval of the financial controller 
shall be to establish that: 
(a) the revenue is booked to the correct item; 
(b) the order is in order and conforms to the relevant 
provis ions; 
(c) the supporting documents are in order; 
(d) the debtor is correctly described; 
(e) the due date is indicated; 
(f) the principles of sound financial management referred 
to in Article 2 have been applied; 
(g) the amount and currency of the sum to be recovered are 
correct. 
If the financial controller's approval is withheld, the 
second subparagraph of paragraph 1 shall apply." 
25. Article 24 is replaced by the following: 
"Article 24 
1. The accounting officer shall assume responsibility for the 
recovery orders duly drawn up. 
He shall exercise all due diligence to ensure that the 
resources due to the Foundation are recovered at the due 
dates stipulated in the recovery orders, and that the rights 
of the Foundation are safeguarded. 
The accounting officer shall inform the authorizing officer 
and the financial controller of any revenue not recovered 
within the time limits laid down. 
2. If the authorizing officer waives the right to recover an 
established debt, he shall send beforehand a proposal for 
cancellation to the financial controller for his approval 
and to the accounting officer for information. 
The purpose of the approval of the financial controller 
shall be to establish that the waiver is in order and 
conforms with the principles of sound financial management 
referred to in Article 2. The proposal concerned shall be 
registered by the accounting officer. 
If approval is withheld, the Administrative Board may, by a 
decision stating the full reasons therefor, and on its sole 
responsibility, overrule this refusal. This decision shall 
be final and binding; it shall be communicated for 
information to the financial controller. 
The Administrative Board shall inform the Court of Auditors 
of all such decisions within one month. 
When the financial controller finds that a document 
establishing a debt has not been drawn up, or that a sum due 
has not been recovered, he shall inform the Administrative 
Board." 
53 
26. In Article 26, "of Article 12" is replaced by "of Article 11". 
27. Paragraph 2 of Article 27 is replaced by the following: 
"2. The procedure for implementing paragraph 1 above shall be 
determined by the implementing rules provided for in 
Article 77. This procedure shall ensure that an exact 
account is kept of commitments and authorizations in terms 
of actual needs." 
28. Article 28 is replaced by the following: 
"Article 28 
Without prejudice to the provisions of Article 18, proposals for 
commitments, accompanied by supporting documents, shall be 
transmitted to the financial controller and to the accounting 
officer; they shall show, in particular, the purpose of the 
expenditure, the estimated amount involved, indicating the 
currency where possible, the budget item to which it is to be 
charged and also the name and description of the creditor-, 
they shall be registered, after approval by the financial 
controller, in accordance with the implementing rules provided 
for in Article 77." 
29. (a) In Article 29, point (d) is replaced by the following: 
"(d) the principles of sound financial management referred 
to in Article 2 have been applied." 
(b) The second paragraph is replaced by the following: 
"Approval may not be conditional." 
30. In Article 30, the last sentence of the third paragraph is 
replaced by the following: 
"The Administrative Board shall inform the Court of Auditors of 
all such decisions within one month." 
31. (This amendment to Article 33 does not affect the English text.) 
32. (a) (This amendment to Article 34 does not affect the English 
text.) 
54 
(b) In Article 34, the third indent of the first paragraph is 
replaced by the following: 
- the amount to be paid (in figures and words), expressed 
in ecus or in national currency," 
33. In Article 35, "in Article 52" is replaced by "in Article 53". 
34. Article 36 is replaced by the following: 
"Article 36 
J_. For payments by instalment, the first payment order shall be 
accompanied by documents establishing the creditor's claim 
to payment of the instalment in question. Subsequent 
payment orders shall refer to the supporting documents 
already furnished, and repeat the reference number of the 
first payment order. 
2. The authorizing officer may grant advances to personnel if a 
provision laid down by regulation specifically provides 
therefor. 
The authorizing offer may grant advances to cover 
disbursements to be effected by a member of the staff on 
behalf of the Foundation. 
Apart from the imprest accounts referred to in Article 43, 
no advance may be paid unless it has been approved 
beforehand by the financial controller." 
35. Article 37 is replaced by the following: 
"Article 37 
Without prejudice to the provisions of Article 18, payment 
orders shall be sent to the financial controller for prior 
approvaI. 
The purpose of this prior approval shall be to establish that: 
(a) the payment order was properly issued; 
(b) the payment order agrees with the commitment of expenditure 
and that the amount thereof is correct, taking account of 
the principles and requirements of sound financial 
management referred to in Article 2; 
(c) the expenditure is charged to the correct item-, 
(d) the appropriations are available-, 
(e) the supporting documents are in order; 
(f) the payee is correctly named and described." 
55 
36. (This amendment to Article 39 does not affect the English text). 
37. In Article 42, the second paragraph is replaced by the 
following: 
"The procedure for opening, administering and using such 
accounts shall be determined by the implementing rules provided 
for in Article 77. These rules shall, in particular, indicate 
which items of expenditure must necessarily be paid either by 
cheque or by post office or bank transfer order, and shall 
require the Joint signature on cheques and on post office or 
bank transfer orders of two duly-authorized officials, one 
signature necessarily being that of the accounting officer, an 
assistant accounting officer, or an administrator of an imprest 
account." 
38. Article 43 is replaced by the following: 
"Article 43 
For the payment of certain categories of expenditure, imprest 
accounts may be set up in accordance with the implementing 
measures provided for in Article 77. 
Only the accounting officer may replenish the imprest accounts, 
save in exceptional cases defined in the implementing rules of 
this Regulat ion. 
These measures shall contain specific provisions concerning in 
part icular: 
the appointment of administrators of imprest accounts, 
the nature and maximum amount of each item of expenditure to 
be incurred, 
the maximum amount of the imprest which may be advanced, 
the time within which supporting documents must be produced, 
the responsibility of the administrators of imprest 
accounts. 
39. A new Section IV is inserted after Article 43: 
56 
"SECTION IV 
MANAGEMENT OF POSTS 
Art icle 44 
1. The following shall be established: 
(a) a file identifying the posts and containing a job 
description for each category A post; 
(b) an organization chart showing the organization of the 
departments detailing the tasks of each administrative 
unit. 
2. If the note 'to be abolished' is placed against a post in 
the statement of revenue and expenditure, it may no longer 
be filled when the next vacancy arises in the same career." 
40. Article 44 becomes Article 45. 
The first paragraph of this article is replaced by the 
following: 
"1. Contracts for the purchase or hiring of buildings or goods 
for the provision of services or for building works shall be 
in writing. Apart from contracts relating to the purchase 
of a building already constructed or to the leasing of a 
building, all such contracts shall be concluded after an 
invitation to tender has been issued either by the automatic 
public tendering procedure or the discretionary tendering 
procedure. 
However, contracts may be made by private treaty in the 
circumstances referred to in Article 47. 
Contracts may be made against invoice or bill of costs in 
cases provided for in Article 51." 
41. Article 45 becomes Article 46. 
In paragraph 3, "in Article 76" is replaced by "in Article 77". 
57 
42. Article 46 becomes Article 47. 
Point (a) of this article is replaced by the following: 
"(a) where the contract for the purchase or hiring of goods, 
for the provision of services or for building works 
involves an amount not exceeding the limit laid down in 
the implementing rules provided for in Article 126 of the 
Financial Regulation applicable to the general budget of 
the Communities, the Foundation being bound, however, as 
far as possible and by all appropriate means, to enable 
suppliers who are likely to be able to supply the goods 
and services in question to compete." 
In point (b), "in Article 45" is replaced by "in Article 46". 
43. Article 47 becomes Article 48. 
44. Article 48 becomes Article 49 and is replaced by the following: 
"Article 49 
Contracts involving amounts exceeding the amount laid down in 
the implementing rules provided for in Article 126 of the 
Financial Regulation applicable to the general budget of the 
Communities shall be subject to the authorization of the 
Administrative Board." 
45. Article 49 becomes Article 50. 
In the third paragraph, "exceeding 100 000 units of account" is 
replaced by "exceeding the limit laid down in the implementing 
rules provided for in Article 126 of the Financial Regulation 
applicable to the general budget of the Communities". 
46. Article 50 becomes Article 51 and is replaced by the following: 
58 
"Article 51 
Contracts may be made against invoice or bill of costs where the 
estimated value of the goods, services or works does not exceed the 
limits laid down by the implementing rules provided for in Article 126 
of the Financial Regulation applicable to the general budget of 
the Communit ies." 
47. Article 51 becomes Article 52 and is replaced by the following: 
"Article 52 
When concluding contracts referred to in this Regulation, the 
Foundation shall comply with the relevant measures laid down by 
the Council in implementation of the Treaty." 
48. Article 52 becomes Article 53 and is replaced by the following: 
"Article 53 
Permanent inventories showing the quantity and value of all 
movable and Immovable property belonging to the Foundation shall 
be kept in accordance with a model drawn up by the Commission. 
Only movable property exceeding a specific value laid down in 
the implementing rules provided for in Article 77 shall be 
entered in those inventories. 
The Foundation shall instruct its departments to check that the 
entries in the inventory correspond to the facts." 
49. Article 53 becomes Article 54. 
In the first paragraph, "under Article 76" is replaced by "under 
Article 77". 
50. Article 54 becomes Article 55. 
The first paragraph is replaced by the following: 
"A statement or record shall be drawn up by the authorizing 
officer and authenticated by the financial controller whenever 
any property in the inventory is sold, given away free of 
charge, scrapped, hired out, or missing on account of loss, 
theft or any other reason." 
51. Article 55 becomes Article 56. 
In the first paragraph, "in Article 52" is replaced by "In 
Article 53". 
59 
52. Article 56 becomes Article 57 and is replaced by the following: 
"Article 57 
The accounts shall be kept in ecus by the method of double entry, on 
the basis of the calendar year. They shall show all revenue and 
expenditure for the financial year; they shall be authenticated by 
supporting documents. They may in addition be kept in the currency of 
the country where the Foundation has its seat. 
The revenue and expenditure account and the balance sheet shall be 
drawn up in ecus." 
53. Article 57 becomes Article 58 and is replaced by the following: 
"Article 58 
The chart of accounts shall make a clear distinction between 
budgetary accounts and cash accounts. 
It shall comprise two parts: 
(a) accounts of budgetary expenditure and revenue, which show 
the detailed implementation of the statement of revenue and 
expenditure; 
(b) the balance sheet accounts, which disclose the assets of the 
Foundat ion. 
These accounts shall show the expected effect of the 
Foundation's legal obligations. 
The accounts shall make it possible to draw up a balance of 
assets and a monthly statement of revenue and expenditure by 
chapter and art icle. 
These statements shall be forwarded to the financial controller, 
the authorizing officer and the Court of Auditors." 
54. Article 58 becomes Article 59 and is replaced by the following: 
"Article 59 
Any advance, other than regular advances which are periodically 
re-examined, shall be entered in a suspense account and settled 
at the latest during the financial year which follows the 
payment of this advance. 
However, the advances referred to in the second subparagraph of 
Article 36(2) shall be settled as a general rules within six 
weeks following completion of the project for which they were 
granted." 
60 
55. Article 59 becomes Article 60 and is replaced by the following: 
"Article 60 
The detailed conditions for the establishment and operation of 
the chart of accounts for transactions relating both to assets 
and to the implementation of the budget shall be determined by 
the implementing rules provided for in Article 77." 
56. Article 60 becomes Article 61. 
57. Article 61 becomes Article 62. 
(a) "Receivable orders" is replaced by "recovery orders". (A 
further amendment does not affect the English text). 
(b) The following paragraph is added: 
"The same shall apply if they neglect to issue payment 
orders or are, without Justification, late in issuing them, 
thereby rendering the Foundation liable to civil action by 
th i rd part ies." 
58. Article 62 becomes Article 63 and is replaced by the following: 
"Article 63 
1. Accounting officers and assistant accounting officers shall 
render themselves liable to disciplinary action and, where 
appropriate, to payment of compensation as regards payments 
made by them in disregard of the third subparagraph of 
Art icle 40. 
They shall render themselves liable to disciplinary action 
and to payment of compensation as regards any loss or 
deterioration of the monies, assets and documents in their 
charge where such loss or deterioration result from an 
intentional mistake or serious negligence on their part. 
Under the same conditions, they shall be responsible for the 
correct execution of orders received by them in respect of 
the use and the administration of bank and post office giro 
accounts, and in particular: 
(a) where the recoveries or payments made by them do not 
agree with the amounts on the corresponding recovery 
or payment orders-, 
61 
(b) where they effect payment to a party other than the 
payee ent it led. 
2. Administrators of imprest accounts shall render themselves 
liable to disciplinary action and, where appropriate, to 
payment of compensation in the following cases: 
(a) where they cannot show due warrant with proper 
documents for payments made by them; 
(b) where they effect payments to parties other than 
ent i tled payees. 
They shall be liable to disciplinary action and to payment 
of compensation in respect of any loss or deterioration of 
the monies, assets and documents in their charge where such 
loss or deterioration results from an intentional mistake or 
serious negligence on their part. 
3. The accounting officer, assistant accounting officers and 
administrators of imprest accounts shall insure themselves 
against the risks arising under this Article. 
The Foundation shall cover the insurance costs relating 
thereto. 
A special allowance is granted to the accounting officer, 
assistant accounting officers and administrators of imprest 
accounts. The sums corresponding to this allowance shall be 
credited each month to an account opened by the Foundation 
on behalf of each off iciaI in order to establish a guarantee 
fund for the purpose of covering any cash or bank shortage 
for which the person concerned might render himself liable, 
in so far as such shortages have not been covered by refunds 
from insurance companies. 
The credit balance in these guarantee accounts shall be paid 
over to the persons concerned when they terminate their 
appointment as accounting officer, assistant accounting 
officer or administrator of imprest accounts." 
59. Article 63 becomes Article 64 and is replaced by the following: 
"Article 64 
Authorizing officers, accounting officers, assistant accounting 
officers and administrators of imprest accounts may be liable to 
payment of compensation and to disciplinary action in accordance 
with the provisions of Regulation No 1859/76 of 29 June 1976." 
60. Article 64 becomes Article 65. 
61. Article 65 becomes Article 66 and is replaced by the following: 
62 
"Article 66 
The Administrative Board shall draw up each year a revenue and 
expenditure account for the Foundation. 
The revenue and expenditure account shall cover all revenue and 
expenditure transactions relating to the preceding financial 
year. It shall be submitted in the same form and following the 
same subdivisions as the statement of reverse and expenditure. 
The revenue and expenditure account shall be preceded by an 
analysis of the financial management in respect of the year in 
question. For the drawing up of this analysis, the Foundation 
shall supply details on the realization of the principles and 
objectives as referred to in Article 2. 
62. Article 66 becomes Article 67 and is replaced by the following: 
"Article 67 
The revenue and expenditure account shall include the following 
tables subdivided in accordance with the nomenclature of the 
Foundation's statement of revenue and expenditure: 
1. a table of revenue comprising: 
- estimated revenue for the financial year, 
- amendments to the revenue estimates as a result of 
supplementary or amending statements, 
- entitlements established in the course of the financial 
year, 
- entitlements still to be collected from the preceding 
financial year, 
- revenue collected during the financial year and revenue 
carried over pursuant to Article 6(3), 
- amounts still to be collected at the end of the financial 
year, 
- the cancellation of established entitlements. 
A statement shall be annexed, where appropriate, to this 
table, showing the balances and gross amounts of the 
transactions referred to in Article 22; 
2. a table showing changes in appropriations for the financial 
year, indicating: 
- the initial appropriations; 
- any amendments to appropriations made by means of 
transfers; 
- any amendments made by means of supplementary or amending 
statements; 
- the final appropriations for the financial year; 
- appropriations carried over under Article 6; 
63 
3. a table of expenditure showing the use of the appropriations 
allocated for the financial year, indicating: 
the commitments entered into and chargeable to the 
f inane ia I year ; 
- the payments made and chargeable to the financial year; 
- the amounts still to be paid at the close of the 
f inane ia I year ; 
- the appropriations carried over under Article 6; 
- appropriations lapsing. 
A statement shall be annexed to this table, where 
appropriate, showing the balances and gross amounts of the 
transactions referred to in Article 22. 
4. A table showing the use of appropriations carried over from 
the preceding financial year, indicating: 
- the amount of appropriations carried over; 
the payments made from appropriations wnich have been 
carr ied over; 
- the unused appropriations lapsing". 
63. Article 67 becomes Article 68 and is replaced by the following: 
"Article 68 
1. The Administrative Board shall also draw up a balance sheet 
of the assets and liabilities of the Foundation at 
31 December of the preceding financial year. 
A statement of accounts showing cash movements and balances 
at the same date shall be attached thereto. 
The balance sheet shall include, on the assets side, the 
amount of revenue to be collected and, on the liabilities 
side, the amount of expenditure chargeable to the financial 
year, which have not yet been entered in the accounts. 
2. These documents shall be submitted to the financial 
controller." 
64. Article 68 becomes Article 69 and is replaced by the following: 
"Art icle 69 
1. The Administrative Board shall, by 31 March at the latest, 
send the revenue and expenditure account, the analysis of 
financial management and the balance sheet of the Foundation 
for the preceding financial year to the Commission, the 
Council, the European Parliament and the Court of Auditors." 
64 
65. Article 69 becomes Article 70. 
"Audit Board" is replaced by "Court of Auditors". 
66. Article 70 becomes Article 71. 
"Audit Board" is replaced by "Court of Auditors". 
67. Article 71 becomes Article 72. 
"Audit Board" is replaced by "Court of Auditors". 
(a) The second paragraph is replaced by the following: 
"In particular, the Foundation shall place at the disposal 
of the Court of Auditors all documents concerning the 
conclusion of contracts and all accounts of cash or 
materials, all accounting records or supporting documents, 
and also administrative documents pertaining thereto, all 
documents relating to revenue and expenditure, all 
inventories and all departmental organization charts which 
the Court of Auditors may consider necessary for auditing 
the revenue and expenditure account on the basis of records 
or on the spot, and all documents and data created or stored 
on a magnetic medium". 
(b) The fourth paragraph is replaced by the following: 
"The information supplied under (b) may be requested only by 
the Court of Auditors." 
(c) The seventh paragraph is replaced by the following: 
"The grant of aid to beneficiaries outside the Foundation 
shall be subject to the acceptance in writing by the 
recipients of an audit being carried out by the Court of 
Auditors on the utilization of the amounts granted." 
68. Article 72 becomes Article 73 and is replaced by the following: 
"Art icle 73 
The report of the Court of Auditors established in accordance 
with Article 206a of the EEC Treaty shall be governed by the 
following provisions: 
1. the Court of Auditors shall transmit to the Foundation and 
the Commission, by 15 July at the latest, any comments on 
the accounts and the balance sheet which are, in its 
opinion, of such a nature that they should appear in the 
annual reports. These comments must remain confidential. 
The Foundation shall address its reply to the Court of 
Auditors and simultaneously to the Commission by 31 October 
at the latest; 
65 
2. the Court of Auditors' report shalI contain an assessment of the 
soundness of financial management; 
3. the Court shall take all necessary steps to ensure that the replies 
of the Foundation to its comments are published immediately 
following those comments; 
4. the Court of Auditors shall transmit to the authorities 
responsible for giving discharge, to the Foundation and to 
the Commission, by 30 November at the latest, its annual 
report accompanied by the replies and it shall ensure 
publication thereof in the Official Journal of the European 
Communi t ies." 
69. Article 73 is repealed. 
70. Article 74 is replaced by the following: 
"Article 74 
1. The European Parliament, upon a recommendation from the 
Council acting by a qualified majority, shall, before 
30 April of the following year, give a discharge to the 
Administrative Board in respect of the implementation of the 
statement of revenue and expenditure. If that date cannot 
be met, the Parliament or the Council shall inform the 
Administrative Board of the reasons for the postponement. 
If the European Parliament postpones the decision giving 
discharge, the Administrative Board shall make every effort 
to take measures, as soon as possible, to facilitate removal 
of the obstacles to that decision. 
2. The discharge decision shall cover the accounts of all 
revenue and expenditure of the Foundation, the resulting 
balance and the assets and liabilities of the Foundation 
shown in the balance sheet. It shall include an assessment 
of the responsibility of the Administrative Board's 
budgetary management over the past financial year. 
3. The financial controller shall take account of the comments 
in the decisions giving discharge. 
4. The Administrative Board shall take all appropriate steps to 
act on the comments appearing in the decisions giving 
discharge. 
5. By 15 December of the year in which the decision giving 
discharge is taken, the Foundation shall report on the 
measures taken in the light of these comments, and, in 
particular, on the instructions given o those of its 
departments which are responsible for the implementation of 
the budget. Such reports shall be transmitted to the 
European Parliament, the Council, the Commission and the 
Court of Auditors. 
66 
The Foundation must also give an account, in an annex to the 
revenue and expenditure account for the next financial year, of the 
measures taken in the light of the comments appearing in the 
decisions giving discharge. 
6. Supporting documents pertaining to the accounts and the preparation 
of the revenue and expenditure account and the balance sheet 
shall be kept for a period of five years following the date 
of the decision giving discharge in respect of the 
implementation of the statement of revenue and expenditure. 
However, the documents relating to transactions not finally 
closed shall be kept for longer than the said period until 
the end of the year following the year in which such 
transactions are finally closed." 
71 . Article 75 is replaced by the following.-
"Art icle 75 
The Administrative Board shall inform the Court of Auditors, as 
soon as possible, of all decisions and rules taken pursuant to 
Articles 3, 6. 8. 13 and 21. 
The Court of Auditors and the financial controller shall be 
informed of the appointment of authorizing officers, the 
accounting officer, assistant accounting officers and 
administrators of imprest accounts and of the acts of delegation 
or appointment under Articles 17, 20 and 43. 
The Administrative Board shall transmit to the Court of Auditors 
any rules of procedure they adopt in respect of financial 
matters." 
72. The following Article 76 is inserted: 
"Article 76 
Until the entry into force of the implementing rules provided 
for in Article 126 of the Financial Regulation applicable to the 
general budget of the Communities, the limit values to be 
specified for the purposes of Articles 47, 49, 50 and 51 shall 
be as follows: 
Article 47, point (a): the limit below which contracts may 
be made by private treaty shall be ECU 10 000, 
Article 49: the limit above which the authorization of the 
Administrative Board shall be required shall be ECU 35 000, 
third subparagraph of Article 50: the threshold for 
compulsory security shall be ECU 250 000, 
67 
Article 51: the limits below which contracts may be made 
against invoice or bill of costs shall be ECU 750 and 
ECU 2 000 respectively for expenditure away from the 
Foundat ion." 
73. Article 76 becomes Article 77. 
74. Article 77 becomes Article 78. 
Art icle 2 
This Regulation shall enter into force on the third day following its 
publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, 
For the Counc iI 
The President 


ISSN 0254-1475 
COM(92) 96 final 
DOCUMENTS 
EN 04 
Catalogue number: CB-CO-92-107-EN-C 
ISBN 92-77-42058-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg