Resolution of the European Parliament

of 5 May 2010

with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the SESAR Joint Undertaking for the financial year 2008

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the SESAR Joint Undertaking for the financial year 2008,

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

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

having regard to Article 276 of the EC Treaty and Article 319 of the Treaty on the Functioning of the European Union,

having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities [2], and in particular Article 185 thereof,

having regard to Council Regulation (EC) No 219/2007 of 27 February 2007 on the establishment of a Joint Undertaking to develop the new generation European air traffic management system (SESAR) [3], and in particular Article 4b thereof,

having regard to the Financial Regulation of the SESAR Joint Undertaking adopted by the SESAR Administrative Board on 3 July 2007 (hereinafter "SESAR Financial Regulation"),

having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Regulation (EC, Euratom) No 1605/2002 [4], and in particular Article 94 thereof,

having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Transport and Tourism (A7-0077/2010),

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

B. whereas the SESAR Joint Undertaking was set up in February 2007 to run the SESAR (Single European Sky Air Traffic Management Research) programme,

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

D. whereas the Joint Undertaking will own all the tangible and intangible assets which it creates or which are transferred to it for the development phase of the SESAR project in accordance with specific agreements with its members,

1. Welcomes the fact that the Court of Auditors found the SESAR Joint Undertaking’s accounts for 2008 to be reliable and the underlying transactions, taken as a whole, to be legal and regular;

2. Notes that the Joint Undertaking received EUR 250000000 in commitment appropriations and EUR 100900000 in payment appropriations from the European Union budget for 2008;

3. Recognises that 2007-08 was a start-up period for the Joint Undertaking, that the new Council Regulation (EC) No 1361/2008 [5], modifying the basic act of the Joint Undertaking, was only adopted on 16 December 2008, and that there was a delay in the payment of Eurocontrol’s initial contribution;

Failure to respect the budgetary principle of annuality

4. Notes that in April 2008 the Joint Undertaking’s Administrative Board adopted the final budget covering the period August 2007 to December 2008, and that that decision was at odds with the annuality principle;

Implementation of the budget

5. Points out that the final budget adopted by the Joint Undertaking’s Administrative Board in April 2008 proved to be highly unrealistic, as is illustrated by commitment and payment appropriations take-up rates of 1 % and 17 % respectively;

6. Regrets that, in a number of instances, transaction controls did not operate correctly and that adequate internal controls for contracts and procurement had not been established;

Recognition of assets

7. Expresses its concern that, in contrast with very low utilisation rates, the Joint Undertaking had considerable sums in deposits in bank accounts at the year end, thus breaching the principle of budgetary equilibrium;

8. Expressly recommends that the Joint Undertaking formulate an accounting policy in respect of any assets generated during the project’s development phase;

SESAR Financial Regulation

9. Welcomes the Court of Auditors’ intention to deliver an opinion on the Financial Regulation adopted by the SESAR Administrative Board in July 2007; stresses the importance of that Regulation being in line with the framework Financial Regulation for Community bodies, and shares the Court of Auditors’ opinion that the provisions relating to the implementation of the budget and presentation of the accounts, to procurement procedures and to the internal audit function need to be completed; notes, furthermore, that the Joint Undertaking needs to adopt implementing rules for its Financial Regulation;

Annual activity report

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

Internal control systems

11. Notes that an internal audit service consistent with applicable international standards was not established until January 2009; calls on the Joint Undertaking also to establish without delay appropriate internal control systems in connection with public procurement; stresses, in particular, the importance of formulating a disaster recovery plan and a data protection policy;

12. Notes that the Joint Undertaking’s accounts for the financial year 2008 show income from interest of EUR 148370; concludes from the annual closure of accounts and the amount of interest payments that the Joint Undertaking maintains high cash reserves over long periods; notes that as of 31 December 2008 the Joint Undertaking’s cash reserves amounted to EUR 116007569; calls on the Commission to examine ways of ensuring that the Joint Undertaking implements the principle of needs-based cash management and what changes in approach are needed to ensure that the Joint Undertaking’s cash reserves are kept as low as possible on a long-term basis;

13. Notes, in addition, that the Administrative Board failed to establish a staff establishment plan for 2008.

[1] OJ C 310, 18.12.2009, p. 9.

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

[3] OJ L 64, 2.3.2007, p. 1.

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

[5] OJ L 352, 31.12.2008, p. 12.

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