A4-0037/95

Proposal for a Council Regulation amending Council Regulation (EEC) No 729/70 on the financing of the common agricultural policy (COM(94)0240 - C4- 0097/94 - 94/0143(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 1

>Original text>

Whereas responsibility for checking EAGGF Guarantee Section expenditure lies essentially with the Member States, which designate the authorities and bodies empowered to effect expenditure; whereas the Commission, being responsible for implementing the Community budget, must check on the conditions under which payments and checks have been made; whereas the Commission can only finance expenditure where those conditions offer all necessary guarantees regarding compliance with Community rules;

>Text following EP vote>

Whereas the practical responsibility for checking EAGGF Guarantee Section expenditure lies essentially with the Member States, which designate the authorities and bodies empowered to effect expenditure; whereas the Member States should carry out this task fully and effectively; whereas the Commission, being responsible for implementing the Community budget, must check on the conditions under which payments and checks have been made; whereas the Commission can only finance expenditure where those conditions offer all necessary guarantees regarding compliance with Community rules; whereas, in a decentralised system of management of Community expenditure, it is essential that the Commission, as the institution responsible for the funding, is entitled and enabled to carry out all checks into the management of expenditure it considers necessary and that there should be full and effective transparency and mutual assistance between the Member States and the Commission;

(Amendment 2)

Recital 2

>Original text>

Whereas, during the clearance of accounts, the Commission is able to determine within a reasonable time the total expenditure to be entered against the Guarantee Section in the general account only if it has satisfactory assurance that the national controls are adequate and transparent and that the paying agencies verify the legality and regularity of the payment requests which they execute; whereas provision should therefore be made for the accreditation of paying agencies by Member States; whereas it should be stipulated that only expenditure effected by paying agencies accredited by the Member States should be financed; whereas in order to ensure the transparency of national controls, in particular as regards authorization, validation and payment procedures, the number of authorities and bodies to which these responsibilities are delegated should, where appropriate, be restricted;

>Text following EP vote>

Whereas, during the clearance of accounts, the Commission is able to determine within a reasonable time the total expenditure to be entered against the Guarantee Section in the general account only if it has satisfactory assurance that the national controls are adequate and transparent and that the paying agencies verify the legality and regularity of the payment requests which they execute; whereas provision should therefore be made for the accreditation of paying agencies by Member States; whereas, in order to ensure consistency in the standards required for accreditation in the Member States, the Commission must set out detailed instructions on the criteria to be applied, and ensure that they are respected throughout the Community; whereas it should be stipulated that only expenditure effected by paying agencies accredited by the Member States should be financed; whereas in order to ensure the transparency of national controls, in particular as regards authorization, validation and payment procedures, the number of authorities and bodies to which these responsibilities are delegated should, where appropriate, be restricted as far as is compatible with the constitutional arrangements of each Member State;

(Amendment 3)

Recital 4

>Original text>

Whereas the time limit for the clearance of accounts decision should be shortened; whereas, therefore, information technology must be used as fully as possible for producing the information to be sent to the Commission; whereas, when carrying out checks, the Commission must have access to information on expenditure held in both documents and magnetic files;

>Text following EP vote>

Whereas the time limit for the clearance of accounts decision must be shortened; whereas, therefore, information technology must be used as fully as possible for producing the information to be sent to the Commission; whereas, when carrying out checks, the Commission must have full and immediate access to information on expenditure held in both documents and magnetic files;

(Amendment 4)

Recital 5

>Original text>

Whereas a single annual clearance of accounts decision creates numerous difficulties in that, for a given financial year, in respect of all measures covered by the Guarantee Fund and in all the Member States, it fulfils simultaneously an accounting objective and a recognition that expenditure has been effected in accordance with Community rules; whereas considerable time lags accompany the taking of this single decision, which is nevertheless subject to reservations and disjunctions; whereas it is accordingly necessary to separate the procedure into two types of decision, one concerning the clearance of accounts proper, the other determining the consequences to be drawn from the results of compliance audits;

>Text following EP vote>

Whereas a single annual clearance of accounts decision creates numerous difficulties in that, for a given financial year, in respect of all measures covered by the Guarantee Fund and in all the Member States, it fulfils simultaneously an accounting objective and a recognition that expenditure has been effected in accordance with Community rules; whereas considerable time lags accompany the taking of this single decision, which is nevertheless subject to reservations and disjunctions; whereas it is accordingly necessary to separate the procedure into two types of decision, one concerning the establishment and adoption of the EAGGF accounts for the reference year, the other determining the consequences, including financial corrections, to be drawn from the results of compliance audits;

(Amendment 5)

Recital 6

>Original text>

Whereas the checks on conformity will therefore no longer be linked to a particular financial year; whereas the maximum period to which the consequences to be drawn from the checks on conformity may be applied must be determined;

>Text following EP vote>

Whereas the checks on conformity, the ensuing financial corrections and the relevant discharge decisions will therefore no longer be linked to the implementation of the budget in a particular financial year; whereas the maximum period to which the consequences to be drawn from the checks on conformity may be applied must be determined;

(Amendment 6)

ARTICLE 1(1)

Article 4(1)(a), second subparagraph (Regulation (EEC) No 729/70)

>Original text>

Only paying agencies providing sufficient assurance concerning the proper functioning of their administrative organisation and of the system of internal control may be accredited;

>Text following EP vote>

Only paying agencies whose administrative organisation and system of internal control meet the criteria communicated to the Member States by the Commission may be accredited;

(Amendment 7)

ARTICLE 1(1)

Article 4(2) (Regulation (EEC) No 729/70)

>Original text>

2. Each Member State shall limit the number of paying agencies accredited to the minimum necessary, taking into account its constitutional and institutional structures, to affect the expenditure referred to in Articles 2 and 3 under satisfactory administrative and accounting conditions.

>Text following EP vote>

2. Each Member State shall limit the number of paying agencies accredited to the minimum necessary, as far as is compatible with its constitutional and institutional structures, to affect the expenditure referred to in Articles 2 and 3 under satisfactory administrative and accounting conditions.

(Amendment 8)

ARTICLE 1(1)

Article 4(4) (Regulation (EEC) No 729/70)

>Original text>

4. Where one or more of the conditions of accreditation are not, or are no longer, fulfilled by an accredited paying agency, the Member State concerned shall inform the Commission, and shall withdraw the accreditation unless the paying agency makes the necessary adjustments within a time limit to be fixed in relation to the seriousness of the problem.

>Text following EP vote>

4. Where one or more of the conditions of accreditation are not, or are no longer, fulfilled by an accredited paying agency, the Member State concerned shall inform the Commission, and shall withdraw the accreditation unless the paying agency makes the necessary adjustments within a time limit fixed by the Member State in agreement with the Commission corresponding to the minimum period necessary to fulfil the criteria required for accreditation.

(Amendment 9)

ARTICLE 1(2)

Article 5(2)(b) (Regulation (EEC) No 729/70)

>Original text>

(b) shall, before 30 April of the year following the financial year concerned, on the basis of the information referred to in paragraph 1(b), clear the accounts of the accredited paying agencies. The accounts clearance decision shall cover the integrality, exactitude and veracity of the accounts submitted.

>Text following EP vote>

(b) shall, before 30 April of the year following the financial year concerned, on the basis of the information referred to in paragraph 1(b), clear the accounts of the accredited paying agencies. The accounts clearance decision shall cover the integrality, exactitude and veracity of the accounts submitted.

>Original text>

The decision shall not prejudice the adoption of a subsequent decision pursuant to point (c);

>Text following EP vote>

The decision shall fulfil an accounting and systems audit function and shall not prejudice the adoption of a subsequent decision pursuant to point (c);

(Amendment 10)

ARTICLE 1(2)

Article 5(2)(c) first subparagraph (Regulation (EEC) No 729/70)

>Original text>

(c) shall decide on the expenditure to be deducted from the Community financing referred to in Articles 2 and 3 where it finds that the expenditure has not been effected in compliance with Community rules. The Commission shall evaluate the amounts to be deducted having regard in particular to the significance of the non-compliance found.

>Text following EP vote>

(c) shall decide on the expenditure to be deducted from the Community financing referred to in Articles 2 and 3 where it finds that the expenditure has not been effected in compliance with Community rules. The Commission shall evaluate the amounts to be deducted on the basis of an audit which includes the verification of representative underlying transactions and transactions in risk areas, having regard in particular to the significance of the non- compliance found.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation amending Council Regulation (EEC) No 729/70 on the financing of the common agricultural policy (COM(94)0240 - C4-0097/94 - 94/0143(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(94)0240 - 94/0143(CNS) ((OJ C 284, 12.10.1994, p. 5.)),

- having been consulted by the Council pursuant to Article 43 of the EC Treaty (C4-0097/94),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Budgetary Control and the opinions of the Committee on Budgets and the Committee on Agriculture and Rural Development (A4-0096/94),

- having regard to the second report of the Committee on Budgetary Control and the opinions of the Committee on Budgets and the Committee on Agriculture and Rural Development (A4-0037/95),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and Commission.