ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)122
Vol.1977/0049

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)122 final .
Brussels ,6April 1977 •
Amended proposal ,inaccordance with Articles 149/EEC
and119/ECSC ,forTitle VII-Special Provisions
applicable totheResearch andInvestment Appropriations
oftheCouncil Regulation (ECSC ,EEC ,EURATOM )amending
theFinancial Regulation of25April 1973 applicable to
theGeneral Budget oftheEuropean Communities
(submitted totheCouncil "bytheCommission )
V
COM(77 )122final ,

Amendedproposal,inaccordancewithArticles149/EEC
and119/ECSC,forTitleVII-SpecialProvisions
applicabletotheResearchandInvestmentAppropriations
oftheCouncilRegulation (ECSC,EEC,EURATGM)amending
theFinancialRegulationof25April1973applicableto
theGeneralBudgetoftheEuropeanCommunities

Explanatory ncrnorandum
A. Thebasis forthis proposal
Λ
On26May1976 ,theCommission sent totheCouncil aproposal for
amendments totheFinancial Regulation of25April 1973 ,including
anumber ofchanges tothespecial provisions onresearch and
investment appropriations (Articles 93to103).Themain objective
wastoenhance thetransparency oftheFunction-orientated Research
Budget ,i.e. Annex 1(Statement ofRevenue andExpenditure relating
toResearch andInvestment Activities )totheCommission Section
oftheGeneral Budget ,aaobjective embodied intheEuropean
resolutions of2?October 1976 (point 1<?)and14Docaobsr 1976
(point 20).
Before adopting theCommunity Budget for1977 ,theEuropean Parliament
adopted twoamendments (Nob14and15)concerning &newpresentation
forresearch andinvestment appropriations within theCommission
rretionoftheGenei-al Budget .These amendments arebacked upby
justifications eraphanizln# theneed foranewpresentation ofthese
appropriations in1978 onthebasis oftheNomenclature approved for
1977 .TheCommission wasasked toreport before theendof1977 ©n
theresults ofapplying this neVNomenclature .Thefinal changes to
theBudget Nomenclature andtothepresentation ofresearch and
investment appropriations ,sjiwell asanyamendments toth«regulations
which mayr*suit therefrom ,would beformulated onthebasis ofthis
report .
Itshould berecalled that thePreliminary Draft Budget for1978 isto
bedrawn upinth®next fewmonths andthat itwould bedesirable to
una thenewformat topresent theresearch andInvestment appropriation#
forthis Budge t<>T3ieCommission therefore proposes that theamendments
necessitated bythis newformat beincorporated lath«ftbonrsaeatioaed
proposal of26Hay1976 nowb«for *theCouncil *
Doc.C0M(76 )210final .Meanwhile ,on11March 1977 »*keCommission
sent totheCouncil an ,amended proposal which takes into account ,to
avery large extent ,P&riiaaaat 'sopinion «mhodi»d isitsresolution
of14December 19760

B.Theessenceofthisproposal
Liketheproposalof26May1976,thisproposaldoesnotcallinto
questionthefunctionalpresentation oftheresearohandinvestment
appropriations northeirspecialfeatureswhichresultfromthe
provisionsoftheEABCTreaty.
1.However,thispresentation willnowbeconfinedtoChapter33
ofSectionIIIoftheBudgetinwhichtheappropriations are
classified,inaccordancewiththeirpurpose,intoarticlesand
itemsfortheJRCandindireotaotion.Intheory,withthis
newpresentation eachitemcorrespondstooneresearchobjective
consistingofoneormoreactivities ,andsothenewitemscorrespond
tothechaptersofthepresentAnnexItotheCommissionSection
oftheGeneralBudget.
Theappropriations intheseitemsarebrokendownaccordingto
type,intosub–itemscomprisingthefollowingexpenditure (in
oondensedform):
staffexpenditure
administrative operatingexpenditure
technicaloperatingexpenditure
investmentexpenditure
contractexpenditure
miscellaneous expenditure (grants,trainingperiods,visiting
scientists,vocationaltrainingschools).
2.Aprovisional scheduleshowingthetotalfinancialallocation
foreaohobjective,thebudgetarytranchesmadeavailableandthe
timetablefortheutilization ofappropriations forcommitment
andappropriations forpaymentiscontainedinandisanintegral
partofChapter33•
3.Animportantinnovationisthetransformation oftheStatement
ofExpenditureinAnnexIinto"FinancialSchemes",onefor
directaction,theotherforindireotaction.Theseschemesare
attachedtothePreliminary DraftBudgetasworkingpapers.
Part1consistsoftheresearohobjectivesfollowingthe
Nomenclature usedtopresenttheappropriations inChapter33.

-3-
Part2oftheFinancialSchemes(theprincipleofwhichis
containedintheCommission'sabovementionedproposals)contains
the"instruments ofimplementation "intheformofappropriation
accounts,mainlyrelatingtotheJRC.Bywayofaguide,these
instruments are:
thescientificdivisions
scientificandtechnioalsupport
thegeneralservices.
Part3consistsofthestaffexpenditure accounts.
4.Withineachappropriation accountandthestaffexpenditure
accountsexpenditureisclassifiedbytypeinsub–itemsin
accordancewiththecriteriafortheclassification ofexpenditure
withinPart1.Sub–itemsmaybesubdividedintocategories ^and
headings^forthepurposesofadministration .
Asalreadymentioned,txieFinancialSchemesareannexedtothe
Preliminary DraftBudgetasworkingpapers.Thismeansthatit
isstillpossibletomakeadetailedexamination ofthefinancial
requirements oftheresearchobjectivesandoftheinstruments of
implementation .Inaddition,theseSchemes,whicharetobe
adjustedinaccordancewiththeBudgetfinallyadopted,-willbe
usedforadministrative purposes,enablingtheexecutionof
theappropriations madeavailableinChapter33oftheBudgetto
bemonitoredingreaterdetail.
1e.g.:
Sub–item33001s
Category11}
Category12tStaffexpenditure
Chapter11)«Chapter12)ofthoftheGeneralBudget
•
Category11:
Heading1100:
Heading1101:
eto.upto
Category1184s■B.,{correspondingtotheitemsoftheflaslosalary ^nomenclaturewithinChapter11ofFamilyallowances)theGeneralBudget.
Allowancesforstandbydutyatworkorathome.

5.Anotherinnovationcompared ,withtheproposalof26May1976
concernsthepresentation ofChapter92oftheStatementof
RevenueintheGeneralBudget.Itshould,berecalledthatat
presenttherevenueaccruingfrom:
–placinginstallations and/orstaffoftheCommissionatthe
disposalofthirdparties(MemberStatesornational
organizations )pursuanttoArticle6(c)oftheEuratomTreaty);
–contractsofcooperation withcertainthirdStates:
–workforthirdpartiesonrequestandagainstpaymentisbooked
onlyasresourcestothecorresponding appropriation accounts.
Theseresourcesareintendedexclusivelytocovertherelevant
expenditure imputedtotheappropriation accountconcerned.The
pointisthatthisproposalisbasedontheassumptionthat,
pursuanttothe"global"principle,whichcallsfortheentryof
allexpenditure andallrevenueinfullintheBudget,the
expenditure ontheabovementioned activitiesshouldalsoappear
intheCommissionBudget.However,itisplannedtocontinue
thepracticewherebyadditionalrevenuefromservicesrendered
forthirdpartiessupplementstheappropriations earmarkedfor
theactivityconcernedbytheamountinquestion.
AlthoughthisinnovationwillinevitablyswelltheStatementof
RevenueandtheStatementofExpenditure ,ithastheadvantage
ofmakingthepresentation ofresearchandinvestment
appropriations moretransparent.
6.Lastbutnotleast,itshouldbepointedoutthatthenew
presentation offerscertainadvantagesasregardsthesizeofthe
Budgetdocument.AnnexI(Volume5ofthe1977Preliminary
DraftBudget),whichatpresentconsistsofabout170pages,
disappearscompletely.Thisrepresentsasavingofabout100
pagesinthisVolumeevencomparedwiththepresentation
envisagedintheCommission'sproposalof26May1976whichforesees
theretentionofPart1ofthepresentVolume5asAnnexI.
Ontheotherhand,thenewpresentation requiressome40pages
inChapter33oftheCommissionSection(Volume4)oftheGeneral
Budgetinsteadofthe12pagesatpresent,asaresultofthe
amendments madebytheEuropeanParliament.

Thereis.therefore,anetsavingofabout140pages.
7.Tosumup,theCommissionfeelsthattheamendments now
proposedaresucha3tomakeforagreatertransparency andhenoe
easiercontrolovertheresearchandinvestmentappropriations ,
asrequestedbyParliament.

XIX/213/'/<•
TITLE VII
SPECIAL PROVISIONS APPLICABLE TOTHERESEARCH AMDINVESTMENT APPRO PRIAT10rJS
I
.Article 93
Theprovisions ofTitles ItoVIandXIshall apply totheresearcn
andinvestment appropriations setoutinthespecial chapter provided
forinArticle 94andtothefinancial schemes referred toin
Article 97,save asotherwise provided inthis Title orwhere they
areincompatible with thespecial provisions ofthis Title .
Article 94
Theappropriations relating toresearch andinvestment shall "be
entered inaspecial chapter inthesection oftheBudget relating
tothe Commission .
That special chapter shall contain :
–theappropriations intended tofinance allresearch objectives ;
–theappropriations forconcerted activities ;
–theappropriations forother activities .
Article 95
1.Anoverall allocation covering several years (hereinafter called
"tranche ")shall bemade foreach activity covered byArticle 94«
Inbudgetary terms ,thetranche fortheresearch and investment
objectives and forthe concerted activities shall bethe total
allocation provided intheBudget for each research and investment
objective ,taking into account anyfinancial reserves ,except where
theobjective ortheconcerted activity comprises several specific
stages each forming aself–contained whole .
2.Amounts authorized annually intheBudget tocover research and
investment expenditure shall comprise appropriations forcommitment
andappropriations forpayment .

/-2-
3.Theappropriations forcommitment within each tranche are
intended toenable theCommission fully tocover allthelegal
obligations which itmaycontract .
They represent ;theupper limit ofexpenditure towhich theCommission
maycommit itself during thefinancial year inquestion forthe
attainment oftheobjectives towhich this expenditure relates .
Notwithstanding theprovisions ofArticle 6(3)(b ),theappropriations
forcommitment shall remain valid until they are cancelled under
thebudgetary procedure .
4.Theappropriations forpayment represent theupper limit of
expenditure which maybepaid orauthorized forpayment during each
financial year tocover commitments entered into during thecurrent
year orearlier financial years .
Notwithstanding theprovisions ofArticle 6,theappropriations for
payment corresponding toappropriations forcommitment shall be
carried forward until cancelled under budgetary procedure .
Article 96
Thenomenclature ofthe special chapter provided forinArticle 94
shall bebased ,asregards thedescription ofchapters anditems ,
onthepurpose oftheexpenditure resulting from carrying outresearch
objectives ,concerted activities andother activities .
Within theitems ,expenditure shall beclassified according toits
nature into sub-items .
Article 97
I.Inaddition tothedocuments referred toinArticle 12,
financial schemes shall bedrawn uptosupport thepreliminary draft
budget .These financial schemes ,amended ifnecessary inaccordance
with theBudget ,shall beused formanagement oftheappropriations
entered under thespecial chapter provided forinArticle 94•

-3-
2&The financial s^emes shall comprise :
(&)Part Icontaining theappropriations forcarrying outeach
research objective ,each concerted activity andeach other activity ,
including work onbehalf ofthird parties ,asentered inthearticles
anditems inthespecial chapter provided forinArticle 94*The
nomenclature ofPart Ishall bedrawn upinaccordance with the
provisions ofArticle 96?
(b)Part IIcontaining ,intheform ofappropriation accounts ,the
appropriations corresponding totheinstruments ofimplementation for
theresearch objectives ,concerted activities andother activities .
Forexample ,such instruments mayinclude :
–the scientific divisions
–thegénéral services
**the scientific and technical services .
(c)Part IIIcontaining theaccounts showing expenditure onstaff .
3.Anappropriation account shall beprovided foreach instrument of
implementation .Each appropriation account shall show theappropriations
entered inthe different articles and items inPart Ispecifically for
use ofthecorresponding instrument ofimplementation .Within the
appropriation accounts andtheaccounts referred toinparagraph 2(c)
above theappropriations shall beclassified according totheir nature .
Formanagement purposes ,thesub-items maybesubdivided into
categories andheadings .
4•Thecharges totheaccounts showing staff expenditure shall not
exceed the amounts made available inPart Iofthe financial scheme .
Thecharges totheappropriation accounts shall not exceed the amount
oftheappropriations entered inthearticles and items inPart I
ofthefinancial scheme .However ,inthecase oftransfers orof
additional amounts made available asaresult ofsupplementary receipts
from third parties ,expenditure maybeincreased accordingly :

-4-
„forcommitments ,uptotheamount oftherepayments provided for
inthecontracts conoluded with requesting third parties ,
-forpayments ,uptotheamount oftheentitlements forsuch
repayments .
5.Thecharges inthestaff expenditure accounts shall "beallocated
monthly tothefirst andsecond parts ofeach financial scheme .
Thecharges intheappropriation accounts shall beallocated monthly
totheobjectives ,concerted activities andother activities in
thefirst part ofthefinancial scheme according totherelevant
share ofthework done bythe instruments .
Such charges shall betransmitted totheFinancial Controller for
approval ,andthen totheAccounting Officer .
Thecharges forobjectives ,concerted activities andother activities
inthefirst part ofthefinancial scheme shall beallocated monthly
intheBudget tothearticles anditems inthespecial chapter provided
forinArticle 94,bytheissue ofaproposal forcommitment anda
proforma payment order which shall betransmitted totheFinancial
Controller forapproval andthen totheAccounting Officer .
Article 98
Thespecial chapter provided for inArticle 94shall include a
provisional schedule ofcommitments andpayments drawn upforeach
article anditem showing ,foreach tranche ,thetimetable for
utilization ofthecorresponding appropriations forcommitment andfor
payment ;theschedule shall bereviewed annually .
Article 99
If,atthebeginning ofafinancial year ,theBudget hasnotyetbeen
finally adopted ,expenditure shall beeffected asfollows :
1.(a)Payments maybeeffected monthly inrespect ofanyarticle or
item inthespecial chapter provided forinArticle 94»up "to
anamount notexceeding one-twelfth oftheannual estimates
shown forthat financial year intheschedule ofamounts and
duedates forpayment inrespect oftheestimated appropriations
for commitment .

(b)Commitments maybeeffected uptoanamount notexceeding
ona-fourth of»ftohappropriation shown intheschedule of
duedates fortheestimated commitments forthefinancial
year concerned ,increased byone-twelfth foreach month
elapsed ,provided that they donotexceed theamount provided
forinthedraft budget ,orintheabsence thereof ,inthe
preliminary draft budget .
2.However ,intheabsence ofaschedule ofcommitments andpayments
forthefinancial year inquestion ,theoperations referred toabove
maybeeffected uptoanamount notexceeding theappropriations
entered inthedraft budget ,orintheabsence thereof ,ofthe
preliminary draft budget forthefinancial year inquestion ,provided
that such measure does not each month make available totheCommission
–inrespect ofpayments ,total appropriations exceeding one-twelfth
ofthe total ofthose entered intheBudget forthepreceding
financial year ,
–inrespect ofcommitments ,total appropriations exceeding one-fourth
ofthetotal appropriations entered intheBudget forthepreceding
financial year ,increased byone-twelfth foreach month elapsed .
Article 100
1.Every decision relating totransfers shall besubject toprior
approval bytheFinancial Controller ,who shall certify that the
funds areavailable and that these operations are inorder and in
accordance with theprovisions inforce .
2.However ,iftheFinancial Controller considers that hecannot
ascertain inadvance the effects ofsuch transfers onthe financial
balance oftheappropriation accounts ofthefinancial scheme ,he
shall confine himself todelivering anopinion .
Inthat case ,andmsofarasheisempowered ,theauthorizing
officer mayonhissole responsibility effect thetransfer ,provided

-6-
thathemakesavailableeachmonthtotheFinancialControllerall
appropriateinformationenablinganassessmenttobemadeofthefinancialeffectsofsuchtransfers.
IfasaresultofsuchinformationtheFinancialControllerfindsthat
afinancialimbalancehasoccurredinanyappropriation account,he
shallinformtheauthorizingofficerthereof.
3.Adjustmentsbetweencategoriesoftheaccountshowingstaff
expenditureandwithinthespecificappropriations intheappropriationaccountsshallbecommunicatedtotheFinancialControllerbutshall
notrequirehispriorapproval.
4.Inordertoenablethelastbudgetarychargestobemade,transfers
maybemadeevenaftertheendofthefinancialyear•
Article101
1.Notwithstanding Article2l(l),theappropriations enteredinthe
specialchapterprovidedforinArticle94shallbeclassifiedintoarticlesanditemsaccordingtothepurposeoftheexpenditure and
intosub-itemsaccordingtotheirnature.
»
2.Notwithstanding Article21(3)(b),theCommissionmaytransfer
appropriations betweentheitemsinthechapterprovidedforin
Article94«
3«Notwithstanding Article21(4),"theCommissionmay,withinthelimits
andintheconditionsfixedatthefinaladoptionoftheBudget,make
transfersofappropriations betweenarticlesanditemsinthechapter
providedforinArticle94swhichshallthereuponbespecifiedbyname
inthestatement.
4*Notwithstanding Article21(6),theprohibitions oftransfers
referredtothereinshallnotbeapplicabletoitemsofexpenditure
classifiedaccordingtotheirnature,withinthemeaningofArticle$6.
5.Notwithstanding Article60(a),acontraotforscientificandtechnical
equipmentorbuildingwork;maybeletbyprivatetreatywheretheamountdoes
notexceed20COOunitsofaccount,withoutprejudicetothosecaseswhereprivatetreatiesareallowedunderArticle60(b),(c)and(d)andwithout

prejudice tothegeneral obligation toinvite competitive tenders ,as
far aspossible andbyall suitable means from all suppliers orcontrators
capable ofproviding theservioes required bythecontract ,
6.Notwithstanding Article 62,thefollowing contracts shall besubmitted
before thedecision oftheauthorizing officer ,fortheopinion ofan
Advisory Committee onProcurements andContracts ,whose composition and
functioning shall belaid down inthemeasures ofimplementation envisaged
inArticle 118 :
(a)contracts ofascientific ortechnical nature ,forsums exceeding
100000units ofaocount ,andfortheacquisition ofimmovable
property ;
(b)contraots forsupplies andequipment ofanature other than
scientific ortechnical ,forsums exceeding 25000units ofaccount ;
(o)contracts forsupplies andequipment ofanature other than
scientific ortechnical for sums exceeding 5000units ofaccount ,
towhich points (c),(d)and (e)ofArticle 60apply .
:I
7.Notwithstanding theprovisions ofthefirsi subparagraph ofArticle 68
scientific andtechnical equipment maybesold ,without first being
advertised ,following adeoision taken bytheauthorizing officer after
hehasconsulted theAdvisory Committee onProcurements andContracts .
r