The position to be taken on behalf of the Union in the Steering Committee of the Transport Community shall be to support the adoption of the decisions on the travel rules concerning staff of the Transport Community, on the rules for the reimbursement of expenses incurred by external experts invited to attend meetings of the Transport Community, and on the procedure for the implementation of the budget of the Transport Community and the presenting and auditing of accounts. It shall be based on the draft decisions of the Steering Committee attached to this Decision.

(4)It is appropriate to establish the position to be taken on behalf of the Union in the Steering Committee, as such decisions are necessary to good functioning of the Permanent Secretariat of the Transport Community, and will have legal effects vis-à-vis the Union.

(3)The Regional Steering Committee of the Transport Community ('the Steering Committee') is to adopt decisions on on the travel rules concerning staff of the Transport Community, on the rules for the reimbursement of expenses incurred by external experts invited to attend meetings of the Transport Community, and on the procedure for the implementation of the budget of the Transport Community and the presenting and auditing of accounts..

(2)Pursuant to Article 30 and Article 35 of the TCT, the Regional Steering Committee may adopt rules on the working conditions of the staff of the Permanent Secretariat of the Transport Community, and on the implementation of the budget and the presenting and auditing accounts.

(1)The Treaty establishing the Transport Community ('the TCT') was signed by the Union in accordance with Council Decision (EU) 2017/1937. It has been approved on behalf of the European Union on 4 March 2019 and has entered into force on 1 May 2019.

Having regard to the proposal from the European Commission,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 91 and Article 100(2), in conjunction with Article 218(9) thereof,

on the position to be taken on behalf of the European Union in the Regional Steering Committee of the Transport Community as regards certain administrative and staff matters and the setting up of financial rules for the Transport Community

In accordance with Article 25(2) of the TCT, the decisions of the Regional Steering Committee shall be published in the Official Journal of the European Union.

The legal basis of the proposed decision should be Articles 91 and 100(2) TFEU, in conjunction with Article 218(9) TFEU.

Therefore, the substantive legal basis of the proposed decision comprises the following provisions: Articles 91 and 100(2) TFEU.

The envisaged acts are necessary for the proper functioning of the TCT. In turn, the TCT pursues objectives and has components in the areas of road, rail and inland waterways transport, which are modes covered by Article 91 TFEU as well as in the area of sea transport, a mode covered by Article 100(2) TFEU. Because of its horizontal nature, the envisaged act pertain to all these elements.

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the Union's behalf. If the envisaged act pursues two aims or has two components and if one of those aims or components is identifiable as the main one, whereas the other is merely incidental, the decision under Article 218(9) TFEU must be founded on a single substantive legal basis, namely that required by the main or predominant aim or component.

Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.

The envisaged acts do not supplement or amend the institutional framework of the TCT.

The acts which the Regional Steering Committee is called upon to adopt constitute acts having legal effects. In accordance with Article 30 of the TCT, the Regional Steering Committee is empowered to lay down rules of the Permanent Secretariat notably for the working conditons of the Secretariat’s staff. Under Article 35 of the TCT, the Regional Steering Committee is empowered to adopt decisions specifying the procedure for the implementation of the budget, for presenting and auditing accounts and for inspection. By their nature, and as a matter of international law governing the Regional Steering Committee, those rules contain elements that affect the legal position of the parties to the TCT and therefore also of the Union. Consequently, they must be considered as having legal effects.

The Regional Steering Committee is a body set up by an agreement, namely the TCT.

The concept of ‘acts having legal effects’ includes acts that have legal effects by virtue of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’.

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for Council decisions establishing "the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement".

The adoption of these decisions by the Regional Steering Committee is necessary for the implementation of the TCT and for the full financial authonomy of the Permanent Secretariat. As the Union is a party to the TCT, it is necessary to establish a Union position.

3.POSITION TO BE TAKEN ON THE UNION'S BEHALF

The adoption of internal financial rules will enable the Director of the Permanent Secretariat, once appointed, to implement the budget of the Transport Community in accordance with Article 36 of the TCT.

Until the Director of the Permanent Secretariat of the Transport Community is appointed, the budget is directly managed by the European Commission, as mandated by the Regional Steering Committee, and in accordance with the Financial Rules applicable to the general budget of the Union.

The envisaged decisions will become legally binding on the parties in accordance with Article 25(1) of the TCT.

The Regional Steering Committee is to adopt decisions on the travel rules concerning staff of the Transport Community, on the rules for the reimbursement of expenses incurred by external experts invited to attend meetings of the Transport Community, and on the procedure for the implementation of the budget of the Transport Community and the presenting and auditing of accounts.

(n) in respect of certain Union acts, establishes time limits and ways for the transposition by the South East European Parties.

(m) adopts annual reports to the attention of the Ministerial Council on the implementation of the Comprehensive Network,

(l) adopts general principles in the area of access to documents, in respect of documents held by bodies established by, or under, the TCT,

(j) adopts a decision specifying the procedure for the implementation of the budget, for presenting and auditing accounts and for inspection,

(h) may review, by way of a decision, the level of budget contributions,

(f) may appoint one or more Deputy Directors of the Permanent Secretariat,

(e) appoints the Director of the Permanent Seretariat after consulting the Ministerial Council,

(d) as regards newly adopted EU acts, takes appropriate action, notably through the revision of Annex I to the TCT,

(c) makes recommendations and takes decisions in accordance with the TCT,

The Regional Steering Committee is established by Article 24 of the TCT and it is responsible for the administration of the TCT and for ensuring its proper implementation. For this purpose, it makes recommendations and takes decisions in the cases provided for in the TCT. Notably, the Regional Steering Committee:

The European Union is a party to the TCT, which has been applied provisionally since 2017 and has entered into force on 1 May 2019.

This proposal concerns a decision establishing the position to be taken on behalf of the European Union in the Regional Steering Committee set up under the Treaty establishing the Transport Community (‘the TCT’) in connection with the envisaged adoption by the Regional Steering Committee of decisions as regards the travel, reimbursement of expenses and financial rules and procedures applicable to the Transport Community.

on the position to be taken on behalf of the European Union in the Regional Steering Committee of the Transport Community as regards certain administrative and staff matters and the setting up of financial rules for the Transport Community

EUROPEAN COMMISSION Brussels, 24.4.2020 COM(2020) 159 final ANNEXES to the Proposal for a Council Decision on the position to be taken on behalf of the European Union in the Regional Steering Committee of the Transport Community as regards certain administrative and staff matters and the setting up of financial rules for the Transport Community



ANNEX I DRAFT DECISION No 2020/

OF THE REGIONAL STEERING COMMITTEE OF THE TRANSPORT COMMUNITY of … on the adoption of Travel Rules concerning staff of the Transport Community THE REGIONAL STEERING COMMITTEE OF THE TRANSPORT COMMUNITY, Having regard to the Treaty establishing the Transport Community, and in particular Article 24(1) and Article 30 thereof, HAS DECIDED AS FOLLOWS: Article 1 The Travel Rules of the Transport Community are hereby adopted. For the Regional Steering Committee The President





Travel Rules of the Transport Community 1.Scope 1.1.The travel rules shall apply to all official travel from the place of employment in the interest of the Transport Community. 1.2.The rules apply to all staff members of the Transport Community subject to the Staff Regulations of the Transport Community.

2.Travel authorisations 2.1.Before leaving on official travel, authorisation must be obtained in the form of an approved travel request. Travel requests are approved in writing by the Director or an official authorised by him. The authorisation request must provide the Director with all the details he or she needs to take an informed decision, such as: –the purpose of the trip, its location and the starting and finishing times of the meeting(s); –the duration of the travel based on the means of transport used, and the times and itinerary for the round trip, including local transport where appropriate; –accommodation arrangements; –estimated costs involved based on optimum cost-efficiency. 2.2.It is the responsibility of the staff member/official to obtain the necessary authorisation before commencing official travel. The approved travel request is to be kept by the staff member and attached to the travel claim upon return from mission together with a travel report. 2.3.For the trips of the Director, a Memory Note will be prepared in advance, based on the template in Annex I, and signed by him/her. The Memory Note will indicate the reason for travel and its envisaged duration. The Director shall follow the common procedures as envisaged in these Rules. 3.Transport between the place of employment and the place of the official travel 3.1.As a general rule the most cost-effective mode of transportation, relative to the purpose and duration of the travel, will be authorised. 3.2.Travel by air shall take place by the most direct route at the lowest available price. When travel dates suggest the inclusion of a weekend in order to obtain an APEXfare, the staff member will be entitled to the additional daily subsistence allowance (DSA), provided that the APEX fare constitutes the lowest available airfare and overall savings can be achieved. 3.3.The normal standard for travel by railway shall be second class for a distance up to 200 km and first class for distance above. 3.4.When no air or rail transport is available or not cost-effective, travel by bus or car will be authorised. 3.5.When travel by car is authorised, the staff member is encouraged to make use of the car-rental arrangements made by the Transport Community. The Transport Community will provide for the highest possible insurance coverage available. Where the insurance nonetheless carries a retention, the Transport Community shall cover it. The Transport Community shall not be liable in cases where the insurance does not cover the damage, loss or theft. 3.6.Exceptionally, the use of private car may be authorised. In this case, costs will be reimbursed to the staff member with the amount equivalent to the costs of the corresponding class railway-ticket in accordance with item 3.3. When more than one staff member travels by car, reimbursement is made to the owner of the car only. When using the private car, the Transport Community cannot assume liability for any third party claim, damage to the car, loss or theft of personal items left in the car. 3.7.Staff members are only allowed to include private destinations into an official itinerary if this has been duly authorised by the Director. If the inclusion of a private destination results in higher costs, the staff member has to pay for the difference between the fare of the official itinerary and the changed fare. 4.Purchase of tickets 4.1.Booking travel arrangements are centralised within the Administration Division of the Permanent Secretariat of the Transport Community. 4.2.Staff members are expected to communicate their travel needs as early as possible so that the most economical fare can be obtained. 4.3.The Administration Division will send the approved travel request to the authorised travel agent and return it to the traveller. The travel agent shall be instructed by the Transport Community not to issue and deliver tickets before having received, by fax, the authorised travel request. The same procedure applies for railway tickets. In case railway tickets cannot be obtained through the travel agent, staff members may purchase their own railway tickets and will be reimbursed upon submission of the related travel claim.

5.Travel expenses Travel expenses paid or reimbursed by the Transport Community on the basis of supporting documents comprise: –Cost of transportation, including transportation to/from the airport or other point of arrival or departure (i.e. hotel, other place of dwelling, meeting venue, premises of the Permanent Secretariat of the Transport Community); –Daily subsistence allowance (DSA); –Other costs in direct relation with the travel and authorised with the request for travel (e.g. excess baggage, visa costs, registration fees for conferences, seminars, etc.). 6.Transportation to/from the airports, ports and stations at the place of employment As a general rule, staff should use public transport. However, transfers by taxi may be authorised by the Director if they are justified, especially when two or more staff going on mission share the taxi, when no other public transport options are available, or when the transfer occurs before 8 am or after 9 pm. The corresponding costs are reimbursed on presentation of the supporting documents. Use of a private vehicle may be authorised provided that it is justified. In that case, reimbursement is limited to parking fees (at the airport, station or port) on presentation of supporting documents. 7.Transportation at the place where the official travel takes place As a general rule, public transport should be used. Use of a taxi is nevertheless permitted if public transport is not an appropriate alternative (on security grounds, for example). By signing the claim for reimbursement of the staff member concerned, the Director is acknowledging this fact. The costs will be reimbursed on presentation of supporting documents. 8.Cancellation and modification for prior to departure If the official travel is cancelled or modified, the staff member must: –immediately inform the Director and the Administration Division and provide the reasons; –immediately cancel or rebook the tickets and reservations issued by the authorised travel agent, in writing, even if they are not refundable; –take the necessary steps to cancel or rebook tickets acquired directly by another means; –immediately cancel or modify hotel reservations and car-rental bookings, in writing; –draw up a statement of expenses incurred as a result of the cancellation/ modification. The Transport Community will cover the cancellation and rebook costs irrespective of the means of reservation used. 9.Extension Official travel may have to be extended as a result of unforeseen circumstances. If the duration of the travel initially indicated on the mission order is extended, leading to additional costs, this must be mentioned in the claim for reimbursement of travel expenses (see point 15). 10.Interruption

An official travel may be interrupted for the requirements of the service, for reasons of force majeure or for personal reasons of a serious nature recognised as such by the Director. The interruption must be authorised in advance by the Director except in cases of extreme urgency or if the Director cannot be reached. All expenses resulting from an interruption authorised by the Director on the grounds listed above will be covered by the Transport Community and reimbursed as part of the official travel. 11.Changes made for personal reasons Staff going on official travel may be authorised to adapt the timetable, accommodation or transport arrangements for personal reasons. In that case they must include with the authorisation request a comparison between the proposed costs and the costs that would have been incurred without such changes. This comparison must be drawn up at the same time, using one of the methods chosen for organising the travel and based on similar conditions. The person going on travel will meet directly and personally (by the means notified to him by the Administration Division): –any additional cost arising from the changes made for personal reasons, including departure from and/or return to another location, if the comparison indicates an increase in the cost of the mission; –any fees charged for carrying out the comparison, if this was done by a travel agency. 12.Daily subsistence allowance (DSA) 12.1.The daily subsistence allowance includes the costs of paid accommodation and meals, gratuities and other incidentals. 12.2.The DSA rates applicable to EU-funded external aid contracts shall apply at their most recent scale The rate applicable is that for the place at which the staff member spends the night. A full day’s DSA is paid for the day on which the travel starts. No DSA is paid for the day on which travel is concluded i.e. DSA is paid based on the number of nights spent on travel. 12.3.Higher compensation may exceptionally be approved by the Director, on a case-by case- basis, when the traveller is requested to stay at pre-determined hotels for which the room rate would absorb 60% or more of the DSA rate. In such cases, the accommodation costs shall be reimbursed upon presentation of the related bill. In any case, circumstances entailing a claim for higher compensation must be described in the travel request and approved prior to departure. 12.4.Reduced DSA rates shall be applied when: 12.4.1.travel does not involve an overnight stay: –50% of the DSA of the respective destination shall be paid for a travel of 8 hours or more; –For a travel of less than 8 hours and more than 5 hours, 35% of the DSA will be paid. –For a travel up to and including 5 hours, 20% of the DSA will be paid. 12.4.2.free accommodation is provided to the traveller: –50% of the DSA of the respective destination shall be paid. 12.4.3.travel involves over-night inter-continental flights or train rides:

–50% of the DSA of the respective destination shall be paid.

12.4.4.free meals (breakfast, lunch and/or dinner) are provided to the traveller: –For each free meal, 10% of the DSA rate shall be deducted. 12.4.5.free accommodation and meals are provided to the traveller: –20% of the DSA rate shall be paid. 12.5.When travel concerns traveling within the host country (Serbia), the DSA of the host country will apply. For relevant deduction of the DSA within Serbia, the same provisions as those for travels abroad apply. 12.6.When all expenses are borne by the organiser of the event, the above stated provisions regarding the DSA calculation will apply. 12.7.No daily subsistence allowance will be paid for the part of the travel that was subject to changes made under article 11 (changes made for personal reasons). 13.Travel advances 13.1.If requested by the traveller, the Transport Community will provide an advance of funds for travel on official business of up to 80% of the DSA for the journey. Requests for travel advances must be made minimum 4 working days before the day of departure. 13.2.Any sums paid by way of an advance will be deducted from the amounts reimbursed to cover mission expenses. If an advance has been paid which proves to be greater than the actual cost of the mission, the surplus will be recovered in a single payment from a subsequent salary payment to the person carrying out the mission. If an advance has been paid to a staff member for a mission that is subsequently cancelled, the amount of the advance will be automatically deducted from a subsequent salary payment. 14.Travel reports Staff members traveling on official business are required to submit a short travel report within one week upon return to the office. It shall be signed by the supervisor, attached to the travel claim and sent to the Director as well as to staff concerned, as appropriate. 15.Reimbursement of travel expenses 15.1.A claim for reimbursement of travel expenses accompanied by the travel report, the travel authorisation and supporting documents shall be submitted to the Administration Division and the Director within one week after return to the office, whether or not a travel advance has been paid. No bills for hotels and meals and other incidentals have to be attached since the established DSA is a lump sum compensation for these expenses. 15.2.In the event that a staff member has taken travel advance and fails to submit the related travel claim within the specified period, the travel advance shall be deducted from subsequent salary payment. The deducted travel advance will only be reimbursed if the travel claim is filed. 16.Staff responsibility and liability Staff members are responsible for the accuracy and completeness of the declarations and representations made by them when planning, carrying out and reporting on their travel. They will, without prejudice of the provisions of the Staff Regulations of the Transport Community, be liable for any unduly perceived amount or misconduct. Staff members have to implement the official travel in line with the general performance requirements laid down in the Staff Regulations of the Transport Community. Staff members are expected to live up to the highest standards of professional ethics, and to remain independent at all times.

17.Control Measures The Transport Community will retain the records, documents and evidence related to the authorisation, and the planning and organisation of travels, as well as to the settlement of the payment dues for a period of five years. The financial rules and auditing procedures of the Transport Community apply. 18.Concluding Remarks These Travel Rules shall be applicable starting on the day following to their adoption by the Regional Steering Committee. ANNEX I - B MEMORY NOTE for the official travel of the Director of the Permanent Secretariat of the Transport Community To be filled in and signed before departure: PURPOSE OF THE TRIP DESTINATION DEPARTURE DATE RETURN DATE ITINERARY ACCOMODATION ARRANGEMENTS COMBINED WITH PRIVATE TRAVEL □ no □ yes: □ cost of the trip combined with private travel: ………. □ cost of the trip without being combined with private travel …….. ESTIMATED COSTS COMMENTS Signature: Date:



To be filled in and signed upon return: FINAL COSTS Travel expenses: Daily subsistence allowance: Other: TOTAL COST: OBJECTIVE OF THE TRAVEL ACHIEVED? YES/NO COMMENTS: Signature:

Date:



ANNEX II DRAFT DECISION No 2020/

OF THE REGIONAL STEERING COMMITTEE OF THE TRANSPORT COMMUNITY of … on the adoption of rules on the reimbursement of expenses incurred by persons from outside the Permanent Secretariat of the Transport Community invited to attend meetings in an expert capacity THE REGIONAL STEERING COMMITTEE OF THE TRANSPORT COMMUNITY, Having regard to the Treaty establishing the Transport Community, and in particular Article 24(1) and Article 35 thereof, HAS DECIDED AS FOLLOWS: Article 1 The rules on the reimbursement of expenses incurred by persons from outside the Permanent Secretariat of the Transport Community invited to attend meetings of the Transport Community in an expert capacity are hereby adopted. For the Regional Steering Committee The President



Rules on the reimbursement of expenses incurred by persons from outside the Permanent Secretariat of the Transport Community invited to attend meetings in an expert capacity ARTICLE 1

1.These rules shall apply to: (a)anyone from outside the Transport Community who is invited to give a specific professional opinion in a committee or working group, wherever the location of the meeting; (b)anyone responsible for accompanying a disabled person who has been invited by the Transport Community to attend a meeting in an expert capacity. 2.Experts may be private-sector experts or government experts: (a)Private-sector experts are individuals who represent civil society or work for a private organisation who have been invited to give the Transport Community the benefit of their personal expertise or to represent their organisations in a specific area, but not to defend the interests of a particular country; (b)Government experts are individuals who have been invited as representatives of a national, regional or local public authority of an EU Member State or a South East European Party or who have been appointed by such an authority. ARTICLE 2 The Permanent Secretariat of the Transport Community shall not be liable for any material, non-material or physical damage suffered by invited experts or those responsible for accompanying a disabled expert in the course of their journey to or stay in the place where the meeting is held, unless such harm is directly attributable to the Permanent Secretariat of the Transport Community. In particular, the Transport Community shall not be liable for any accidents in which invited experts who use their own means of transport for travelling to the meeting are involved. ARTICLE 3 1.All experts shall be entitled to the reimbursement of their travel expenses from the place specified in their invitation (work or home address) to the place of the meeting, by the most appropriate means of transport given the distance involved. In general, for journeys of less than 400 km (one way, according to official distance by rail) this shall be first-class rail travel, and for distances of more than 400 km economy class air travel. If the journey by air involves a flight of 4 hours or more the cost of a business class ticket shall be reimbursed. 2.The Director of the Permanent Secretariat of the Transport Community shall specifically try to ensure that meetings are organised in such a way as to enable experts to benefit from the most economical travel rates. The Director of the Permanent Secretariat of the Transport Community shall scrutinise particularly closely any requests for reimbursement involving abnormally expensive flights. He or she shall have the right to carry out any checks that might be needed and to request any proof from the expert required for this purpose. He or she shall also have the right, where it appears to be justified, to restrict reimbursement to the rates normally applied to the usual journey from the expert's place of work or residence to the meeting place. 3.Travel expenses shall be reimbursed on presentation of original supporting documents: tickets and invoices or, in the case of online bookings, the printout of the electronic reservation and boarding cards for the outward journey. The documents supplied must show the class of travel used, the time of travel and the amount paid. 4.The cost of travel by private car shall be reimbursed at the same rate as the first-class rail ticket. 5.If the route is not served by a train the cost of travel by private car shall be reimbursed at the rate of EUR 0.22 per km. 6.Taxi fares shall not be reimbursed. ARTICLE 4 1.The daily allowance paid for each day of the meeting is a flat rate to cover all expenditure at the place where the meeting is held, including for example meals and local transport (bus, tram, metro, taxi, parking, motorway tolls, etc.), as well as travel and accident insurance. 2.The daily allowance shall be EUR 92.00. 3.If the place of departure cited in the invitation is 100 km or less from the place where the meeting is held, the daily allowance shall be reduced by 50%.

4.Experts who have to spend one or more nights at the place where the meeting is held because the times of meetings are incompatible with the times of flights or trains, shall also be entitled to an accommodation allowance. This allowance shall be EUR 100.00 per night. The number of nights may not exceed the number of meeting days + 1. 5.An additional accommodation allowance and/or daily allowance may, exceptionally, be paid if prolonging the stay would enable the expert to obtain a reduction in the cost of transport worth more than the amount of these allowances. 6.The daily allowance and/or accommodation allowance may be increased by 50% by reasoned decision of the Director of the Permanent Secretariat of the Transport Community for very high-level experts. ARTICLE 5 Where, taking into account any expenses incurred by disabled experts as a result of their disability or any person accompanying them, the allowances provided for in Article 4 appear to be clearly inadequate, the expenses shall be reimbursed at the request of the Director of the Permanent Secretariat of the Transport Community on presentation of supporting documents. ARTICLE 6 1.Unless stated otherwise in the letter of invitation and the request to organise the meeting, private-sector experts shall be entitled to a daily allowance for each day of the meeting and, where appropriate, an accommodation allowance, on condition that they declare on their honour that they are not receiving a similar allowance or similar allowances from another institution for the same visit. The Director of the Permanent Secretariat of the Transport Community shall ensure consistency between the content of the letters of invitation and the request to organise the meeting. 2.Government experts shall receive a daily allowance for each day of the meeting and, where appropriate, an accommodation allowance, provided that provision for this is made in the rules of procedure of the committee or working group and on condition that they declare on their honour that they are not receiving a similar allowance or similar allowances from their own administration for the same visit. 3.The Director of the Permanent Secretariat of the Transport Community may, by reasoned decision and on presentation of supporting documents, authorise the reimbursement of expenses which invited experts have had to incur as a result of special instructions they have received in writing. 4.All reimbursements of travel expenses, daily allowances and/or accommodation allowances shall be made to one and the same bank account. 5.Reimbursements of the costs of government experts shall be paid into an account in the name of the government, one of its ministries or a public body, in the absence of any derogation from the government, one of its ministries or a public body. ARTICLE 7 1.The maximum number of experts per meeting, whether or not entitled to reimbursement of their expenses, shall be one per a South East European Party and per EU Member State invited as a government expert, and a number of private-sector experts equal to the number of government experts. 2.The Director of the Permanent Secretariat of the Transport Community may depart from this rule, by reasoned decision, in the event of joint meetings of several committees or working groups. ARTICLE 8 1.The payment order shall be drawn up on the basis of the request for reimbursement, duly completed and signed by the expert and by the secretary of the meeting responsible for certifying the expert's presence. 2.Experts must provide the secretary of the meeting with the documents necessary for their reimbursement, by letter, fax or e-mail postmarked or dated no later than 30 calendar days after the final day of the meeting. 3.The Permanent Secretariat of the Transport Community shall reimburse the experts' expenses within 30 calendar days. 4.Unless the expert can provide a proper justification that is accepted by reasoned decision by the Director of the Permanent Secretariat of the Transport Community, failure to comply with paragraph 2 shall absolve the Transport Community from any obligation to reimburse travel expenses or pay any allowances.

ARTICLE 9 1.Travel expenses shall be reimbursed in euros, where appropriate at the rate of exchange applying on the day of the meeting. 2.The daily allowance and, where appropriate, the accommodation allowance, shall be reimbursed in euros at the flat rate applicable on the day of the meeting.



ANNEX III DRAFT DECISION No 2020/ OF THE REGIONAL STEERING COMMITTEE OF THE TRANSPORT COMMUNITY of … on the procedure for the implementation of the budget and the presenting and auditing of accounts, applicable to the Transport Community THE REGIONAL STEERING COMMITTEE OF THE TRANSPORT COMMUNITY, Having regard to the Treaty establishing the Transport Community, and in particular Article 24(1) and Article 35 thereof, HAS DECIDED AS FOLLOWS: Article 1 The financial rules and auditing procedures applicable of the Transport Community are hereby adopted. For the Regional Steering Committee The President





ANNEX III TABLE OF CONTENTS TITLE I: SUBJECT MATTER TITLE II: OBLIGATIONS OF THE PARTIES TITLE III: BUDGETARY PRINCIPLES CHAPTER 1 PRINCIPLE OF UNITY AND BUDGETARY ACCURACY CHAPTER 2 PRINCIPLE OF ANNUALITY CHAPTER 3 PRINCIPLE OF EQUILIBRIUM CHAPTER 4 PRINCIPLE OF UNIT OF ACCOUNT CHAPTER 5 PRINCIPLE OF UNIVERSALITY CHAPTER 6 PRINCIPLE OF SPECIFICATION CHAPTER 7 PRINCIPLE OF SOUND FINANCIAL MANAGEMENT CHAPTER 8 PRINCIPLE OF TRANSPARENCY CHAPTER 9 INTERNAL CONTROL OF BUDGET IMPLEMENTATION TITLE IV: BUDGET COMMITTEE TITLE V: IMPLEMENTATION OF THE BUDGET CHAPTER 1 GENERAL PROVISIONS CHAPTER 2 FINANCIAL ACTORS

CHAPTER 3 LIABILITY OF THE FINANCIAL ACTORS CHAPTER 4 REVENUE OPERATIONS CHAPTER 5 EXPENDITURE OPERATIONS TITLE VI: PROCUREMENT TITLE VII: PRESENTATION OF THE ACCOUNTS AND ACCOUNTING CHAPTER 1 PRESENTATION OF THE ACCOUNTS CHAPTER 2 ACCOUNTING CHAPTER 3 PROPERTY INVENTORIES TITLE VIII: EXTERNAL AUDIT AND DISCHARGE CHAPTER 1 EXTERNAL AUDIT TITLE IX: TRANSITIONAL AND FINAL PROVISIONS TITLE I SUBJECT MATTER Article 1 These Rules establish the procedures for the implementation of the Transport Community budget in accordance with Article 35 of the Transport Community Treaty (hereinafter “Treaty”). TITLE II OBLIGATIONS OF THE PARTIES Article 2 1.The Parties shall transfer 75% of their financial contributions to the Transport Community no later than the 31 March of each year. The Parties shall transfer the remaining 25% of their contributions no later than 30 June of each year. 2.The financial contributions of the Parties to the Transport Community must be made in Euros.

3.The Transport Community shall bear the transaction cost levied by its payment service provider and the Contracting Parties shall bear the transaction cost levied by their payment service provider. TITLE III BUDGETARY PRINCIPLES Article 3 The implementation of the budget of the Transport Community (hereinafter "the budget") shall comply with the principles of budgetary accuracy, annuality, equilibrium, unit of account, universality, specification, sound financial management which requires effective and efficient internal control and transparency as set out in the present rules. CHAPTER 1 PRINCIPLE OF BUDGETARY ACCURACY Article 4 No expenditure may be committed or authorised in excess of the authorised appropriations. CHAPTER 2 PRINCIPLE OF ANNUALITY Article 5 Administrative expenditure arising from contracts covering periods that extend beyond the financial year, either in accordance with local practice or relating to the supply of equipment, shall be charged to the budget of the financial year in which they are effected. Article 6 1.The appropriations authorised in the budget for a relevant year may be used solely to cover expenditure committed and paid in that financial year, and to cover amounts due against commitments from the previous financial year. 2.Commitment appropriations shall be entered in the accounts for the financial year on the basis of the legal commitments entered into up to 31 December of that year. 3.Payment appropriations shall be entered in the accounts for the financial year on the basis of the payments effected by the accounting officer by 31 December of that year. 4.Appropriations carried over from the previous financial years shall be identified respectively in the accounts.

CHAPTER 3 PRINCIPLE OF EQUILIBRIUM Article 7 The Transport Community shall not raise loans. CHAPTER 4 PRINCIPLE OF UNIT OF ACCOUNT Article 8 The budget shall be implemented in euro and the accounts shall be presented in euro. However, for cash-flow purposes, the Transport Community’s Permanent Secretariat shall be authorised to carry out operations in other currencies. CHAPTER 5 PRINCIPLE OF UNIVERSALITY Article 9 1.The following deductions may be made from payment requests, invoices or statements, which shall then be passed for payment of the net amount: (a)penalties imposed on parties to contracts, including procurement contracts; (b)adjustments for amounts paid unduly, which can be made by means of direct deduction against a new payment of the same type to the same payee under the chapter, article and financial year in respect of which the excess payment was made, and which give rise to interim payments or payments of balances. 2.Discounts, refunds and rebates on invoices and payment requests shall not be recorded as revenue of the Transport Community. 3.Any negative balance shall be entered in the budget as expenditure.

CHAPTER 6 PRINCIPLE OF SPECIFICATION Article 10 1.The Director may use appropriations allocated to a given budget line for purposes the budget attributes to another budget line, provided the decision of the Regional Steering Committee adopting the relevant budget allows so, and within the limits so allowed. 2.The Director shall inform the Regional Steering Committee within 7 days upon taking a decision in accordance with paragraph 1. CHAPTER 7 PRINCIPLE OF SOUND FINANCIAL MANAGEMENT Article 11 4.Budget appropriations shall be used in accordance with the principle of sound financial management, which comprises the principles of economy, efficiency and effectiveness. 5.The principle of economy requires that the resources used by the Transport Community for the pursuit of its activities shall be made available in due time, in appropriate quantity and quality and at the best price. 6.The principle of efficiency concerns the best relationship between resources employed and results achieved. 7.The principle of effectiveness concerns attaining the specific objectives set and achieving the intended results. These results shall be evaluated. CHAPTER 8 PRINCIPLE OF TRANSPARENCY Article 12 8.The budget shall be implemented and the accounts presented in compliance with the principle of transparency. 9.The budget and amending budgets, as finally adopted, shall be published on the website of the Permanent Secretariat of the Transport Community.

CHAPTER 9 INTERNAL CONTROL OF BUDGET IMPLEMENTATION Article 13 1.The budget of the Transport Community shall be implemented in compliance with effective and efficient internal control. 2.For the purposes of the implementation of the budget of the Transport Community, internal control is defined as a process applicable at all levels of the management and designed to provide reasonable assurance of achieving the following objectives: (a)effectiveness, efficiency and economy of operations; (b)reliability of reporting; (c)safeguarding of assets and information; (d)prevention, detection, correction and follow-up of fraud and irregularities; (e)adequate management of the risks relating to the legality and regularity of the underlying transactions, taking into account the multi-annual character of programmes as well as the nature of the payments concerned. 3.Effective and efficient internal control shall be based on best international practices and include, in particular, the elements laid down in Article 36(3) and (4) of Regulation (EU, Euratom) 2018/1046, taking into account the structure and size of the Transport Community, the nature of the tasks entrusted to it and the amounts and financial and operational risks involved.



TITLE IV BUDGET COMMITTEE Article 14 1.A Budget Committee is hereby established. 2.The Budget Committee advises the Director in the financial management of the operations of the Transport Community. 3.The Budget Committee may report to the Regional Steering Committee and issue recommendations on budgetary matters and, on any matter which may have an impact on the budget. 4.In order to fulfil its tasks as described in paragraph 2, the Budget Committee shall be provided with all the necessary information or explanations regarding budgetary matters and matters with potential budgetary impact.

Article 15 1.The Budget Committee shall consist of one member from each of the South East European Parties and two members of the European Union, represented by the European Commission. 2.Meetings of the Budget Committee shall be chaired by the European Commission. The Chairperson may appoint a Co-chair. 3.The Budget Committee shall hold at least two ordinary meetings a year. In addition it shall meet at the instance of the Chairperson or at the request of at least one third of its members. 4.The Budget Committee shall adopt its internal rules of procedure. Its recommendations may be adopted by written procedure. The Budget Committee shall act by simple majority of the votes including the positive vote of the European Union. In case of an equal vote, the European Union shall have the deciding vote. 5.The Permanent Secretariat of the Transport Community shall provide administrative support to the Budget Committee. 6.The Permanent Secretariat shall be represented at the meetings of the Budget Committee without voting rights.



TITLE V IMPLEMENTATION OF THE BUDGET CHAPTER 1 GENERAL PROVISIONS Article 16 The Director shall perform the duties of authorising officer. Article 17 The Director may delegate powers of budget implementation to staff of the Permanent Secretariat. Those so empowered may act only within the limits of the powers expressly conferred upon them and are bound by the present Decision. The Director shall send a copy of any delegation decision taken under this Article to the Regional Steering Committee.

Article 18 1.All financial actors within the meaning of Chapter 2 of this Title shall be prohibited from taking any measures of budget implementation which may bring their own interests into conflict with those of the Transport Community. Should such a case arise, the actor in question must refrain from such measures and refer the matter to the competent authority. 2.There is a conflict of interests where the impartial and objective exercise of the functions of an actor in the implementation of the budget or an auditor is compromised for reasons involving family, private life, political or national affinity, economic interest or any other shared interest with the beneficiary or contractor. 3.The competent authority referred to in paragraph 1 shall be the immediate superior of the member of staff concerned. If the member of staff is the Director, the competent authority shall be the Regional Steering Committee. Article 19 Technical expertise tasks and administrative, preparatory or ancillary tasks involving neither the exercise of public authority nor the use of discretionary powers of judgement may be entrusted by contract to external entities or bodies, where this proves to be indispensable.





CHAPTER 2 FINANCIAL ACTORS Section 1 Principle of segregation of duties Article 20 The duties of authorising officer and accounting officer shall be segregated and mutually incompatible. Section 2 Authorising officer Article 21 1.The authorising officer shall be responsible for implementing revenue and expenditure.

2.To implement expenditure, the authorising officer shall make budget commitments and legal commitments, shall validate expenditure and authorise payments in accordance with the relevant provisions of this Decision, and shall undertake the implementation of appropriations. 3.Implementation of revenue shall comprise drawing up estimates of amounts receivable, establishing entitlements to be recovered and issuing recovery orders. It shall involve waiving established entitlements where appropriate. 4.The authorising officer shall assure that all the supporting documents related to operations carried out for a period of five years are properly preserved. Article 22 1.Having due regard to the risks associated with the management environment and the nature of the actions financed, the authorising officer shall put in place the organisational structure, internal management, control systems and procedures (hereinafter “Internal Rules for the Management of Financing of the Transport Community”) suited to the performance of his duties, including where appropriate ex post verifications. 2.Before an operation is authorised, the operational and financial aspects shall be verified by members of staff other than the one who initiated the operation. Initiation and the ex ante and ex post verification of an operation shall be separate functions. 3.The staff responsible for the verifications shall be different from those initiating the operation and shall not be their subordinates. Article 23 The Director, as authorising officer, shall submit to the Regional Steering Committee an annual activity report (hereinafter "Authorising officer's report") which contains financial and management information. Article 24 Any member of staff, involved in the financial management and control of transactions who considers that a decision he or she is required by his or her superior to apply or to agree to is irregular or contrary to these Rules, or to the professional rules the staff member is required to observe, shall inform the Director in writing. The Director shall take action within a reasonable period. If he or she fails to do so, the staff member shall inform the Regional Steering Committee. Article 25 Where powers of budget implementation are delegated, Article 21 of these Rules shall apply mutatis mutandis to the authorised officers. Section 3 Accounting officer

Article 26 1.Upon proposal of the European Commission, the Director shall appoint an accounting officer, in accordance with the Rules of Procedure in force for the recruitment, working conditions and geographic equilibrium of the staff of the Permanent Secretariat, who shall be responsible in the Permanent Secretariat for: (a)Proper implementation of payments, collection of revenue and recovery of amounts established as being receivable; (b)Preparing and presenting the accounts in accordance with Title V; (c)Keeping the accounts in accordance with Title V; (d)Implementing, in accordance with Title V, the accounting rules and methods and the chart of accounts; (e)Laying down and validating the accounting systems and where appropriate validating systems laid down by the authorising officer to supply or justify accounting information; (f)Treasury management. 2.Subject paragraph 3 the accounting officer is alone empowered to manage monies and other assets and shall be responsible for their safekeeping. 3.If necessary, the accounting officer may delegate certain tasks, without prejudice to the principle of segregation of duties. CHAPTER 3 LIABILITY OF THE FINANCIAL ACTORS Section 1

General rules Article 27 1.The responsibility under these Rules is personal. 2.In the event of any illegal activity, fraud, corruption or irregularity which may harm the interests of the Transport Community, the financial actor shall without delay inform the Director or, if he or she considers it useful, the Regional Steering Committee, or the European Anti-Fraud Office. The ‘Transport Community's financial interests’ means all revenues, expenditure and assets covered by, acquired through, or due to the Transport Community budget. 3.Where an activity has been subject to irregularities or fraud, the authorising officer responsible shall suspend the procedure and may take any necessary measures, including the cancellation of any decision taken in the framework of the said activity. The authorising officer responsible shall inform all competent authorities, including where applicable the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO), immediately of suspected cases of fraud or irregularities. Article 28

1.The authorising officer may withdraw any delegation at any time temporarily or definitively. The Regional Steering Committee and the Chairman of the Budget Committee shall be immediately informed of such an action with a proper justification. 2.The accounting officer may at any time be suspended temporarily or definitively from his duties by the Director, upon preliminary agreement of the European Commission. On a proposal of the European Commission, the Director shall appoint an interim accounting officer and consequently a permanent accounting officer in accordance with the recruitment rules of the Transport Community. Article 29 1.The provisions of this chapter are without prejudice to the criminal law liability which the authorising officer and the persons referred to in this Chapter may incur as provided in the applicable national law of the domicile country and in the provisions in force on the protection of the Transport Communities' financial interests and on the fight against corruption involving officials of the Transport Community or officials of the Parties. 2.In the event of evidence of illegal activity, fraud or corruption which may harm the interests of the Transport Community, the matter will be referred to the competent authorities and bodies.



Section 2 Rules applicable to the authorising officer Article 30 1.The authorising officer may be required to make good, in whole or in part, any damage suffered by the Transport Community as a result of serious misconduct on his part in the course of or in connection with the performance of his duties, in particular if he determines entitlements to be recovered or issues recovery orders, commits expenditure or signs a payment order without complying with this Decision. The same shall apply where, through serious misconduct, the authorising officer: (a) fails to draw up a document establishing an amount receivable; (b)fails to issue a recovery order or is, without justification, late in issuing it; (c)fails to issue a payment order or is late in issuing it, thereby rendering the Transport Community liable to civil action by third parties. 2.An authorising officer by delegation who considers that a decision falling under his or her responsibility is irregular or contrary to the principles of sound financial management shall inform the delegating authority in writing. If the delegating authority then gives a reasoned instruction in writing to the authorising officer by delegation to implement the decision in question, the latter must implement it and may not be held liable. 3.In the event of delegation, the authorising officer shall continue to be responsible for the effectiveness of the internal management rules put in place and for the choice of the authorising officer by delegation. 4.The authorising officer shall not be held responsible for any decisions taken by the Regional Steering Committee, in case they are strictly followed. Should the authorising officer disagree with any of these decisions, he or she has the right to notify the relevant authority in writing. However, he or she is obliged to follow the relevant decisions. CHAPTER 4

REVENUE OPERATIONS Section 1 General provisions Article 31 Interest accrued on the accounts of the Transport Community shall form part of its revenue, in addition to the contributions of the Contracting Parties.



Section 2 Estimate of amounts receivable Article 32 An estimate of the amount receivable shall first be made by the authorising officer responsible in respect of any measure or situation which may give rise to or modify an amount owing to the Transport Community body. Section 3 Establishment of amounts receivable from third parties Article 33 1.Establishment of an amount receivable is the act by which the authorising officer or authorising officer by delegation: (a)verifies that the debt exists; (b)determines or verifies the reality and the amount of the debt; (c)verifies the conditions in which the debt is due. 2.Any amount receivable that is identified as being certain, of a fixed amount and due must be established by a recovery order given to the accounting officer, accompanied by a debit note sent to the debtor. Both of these documents shall be drawn up and sent by the authorising officer responsible. 3.In duly substantiated cases, certain routine revenue items may be established provisionally. Provisional establishment shall cover the recovery of several individual amounts which therefore do not need be established individually.

Before the end of the financial year, the authorising officer shall amend the amounts established provisionally to ensure that they correspond to the amounts receivable actually established. Article 34 The authorisation of recovery is the act whereby the authorising officer responsible instructs the accounting officer, by issuing a recovery order, to recover an amount receivable which he or she has established. Article 35 4.Amounts wrongly paid shall be recovered. 5.The accounting officer shall act on recovery orders for amounts receivable duly established by the authorising officer or authorising officer responsible. He or she shall exercise due diligence to ensure that the Transport Community receives its revenue and shall see that its rights are safeguarded. 6.Where the authorising officer responsible is planning to waive recovery of an established amount receivable, he or she shall ensure that the waiver is in order and complies with the principle of sound financial management. Such a waiver shall be by decision of the authorising officer, which must be substantiated. The authorising officer may not delegate such a decision. The waiver decision shall state what action has been taken to secure recovery and the points of law and fact on which it is based. 7.The authorising officer responsible shall cancel an established amount receivable when the discovery of a mistake as to a point of law or fact reveals that the amount had not been correctly established. Such cancellation shall be by decision of the authorising officer responsible and shall be suitably substantiated. 8.The authorising officer responsible shall adjust the amount of an established debt upwards or downwards when the discovery of a factual error entails the alteration of the amount of the debt, provided that this correction does not involve the loss of the established entitlement of the Transport Community. Such an adjustment shall be by decision of the authorising officer responsible and shall be suitably substantiated. 9.Where a debtor has a claim against the Transport Community, of a fixed amount and due relating to a sum established by a payment order, the accounting officer shall, after expiry of the deadline specified in the debit note, recover established amounts receivable by offsetting. In exceptional circumstances, where it is necessary to safeguard the financial interests of the Transport Community and where the accounting officer has justified grounds to believe that the amount due to the Transport Community would be lost, the accounting officer may recover by offsetting before the expiry of the deadline specified in the debit note. The accounting officer may also recover by offsetting before the expiry of the deadline specified in the debit note when the debtor agrees. 10.Before proceeding with any recovery in accordance with paragraph 9 of this Article, the accounting officer shall consult the authorising officer and inform the debtor(s) concerned. 11.The offsetting referred to in paragraph 9 shall have the same effect as payment and discharge the Transport Community for the amount of the debt and, where appropriate, of the interest due. Article 36 1.Upon actual recovery of the sum due, the accounting officer shall make an entry in the accounts and shall inform the authorising officer responsible. 2.A receipt shall be issued in respect of all cash payments made to the accounting officer.

Article 37 1.If actual recovery has not taken place by the due date stipulated in the debit note, the accounting officer shall inform the authorising officer responsible and immediately launch the procedure for effecting recovery by any means offered by the law. 2.The accounting officer shall recover amounts by offsetting them against equivalent claims that the Transport Community has on any debtor who himself has a claim on the Transport Community body that is certain, of a fixed amount and due, provided that offsetting is legally possible. Article 38 The accounting officer, in collaboration with the authorising officer responsible, may allow additional time for payment only at the written request of the debtor, with due indication of the reasons, provided that the following two conditions are met: (a)the debtor undertakes to pay interest for the entire additional period allowed, starting from the date on which the payment was originally due at the rate applied by the European Central Bank for its main refinancing operations in euros (the reference rate) plus eight points. The reference rate is the rate in force, as published in the C series of the Official Journal of the European Union, on the first day of the month in which the payment period ends; (b) in order to safeguard the rights of the Transport Community, the debtor provides a financial guarantee covering both the principal sum and the interest. CHAPTER 5 EXPENDITURE OPERATIONS Article 39 1.Every item of expenditure shall be committed and paid. Section 1 Commitment of expenditure Article 40 1.The budget commitment is the operation reserving the appropriation necessary to cover subsequent payments to honour a legal commitment. 2.The legal commitment is the act whereby the authorising officer responsible enters into or establishes an obligation which results in a charge for the budget.

Article 41 1.In respect of any measure which may give rise to expenditure chargeable to the budget, the authorising officer responsible must first make a budget commitment before entering into a legal commitment with third parties. 2.Individual legal commitments relating to individual budget commitments shall be concluded by 31 December of the current financial year. Article 42 1.The unused balance of budget commitments relating to year N shall be de-committed by the authorising officer responsible by 31 March of year N+1. 2.The legal commitments entered into for actions extending over more than one financial year and the corresponding budget commitments shall, save in the case of staff expenditure, have a final date for implementation set in compliance with the principle of sound financial management. Any parts of such commitments which have not been executed six months after that final date shall be de-committed. 3.Where a legal commitment has not then resulted in a payment after a period of three years, the authorising officer responsible shall de-commit it. Article 43 When adopting a budget commitment, the authorising officer responsible shall ensure that: (a)the expenditure has been charged to the correct item in the budget; (b)the appropriations are available; (c)the expenditure conforms to the applicable provisions, in particular those of the Treaty, the internal management rules of the Transport Community; (a)the principle of sound financial management is complied with. Section 2 Validation of expenditure Article 44

Validation of expenditure is the act whereby the authorising officer responsible: (a)Verifies the existence of the creditor's entitlement; (b)Verifies the conditions in which payment is due; (c)Determines or verifies the reality and the amount of the claim. Article 45 1.Validation of any expenditure shall be based on supporting documents attesting the creditor's entitlement, on the basis of a statement of services actually rendered, supplies actually delivered or work actually carried out, or on the basis of other documents justifying payment. 2.The validation decision shall be expressed by the signing of a "passed for payment" voucher by the authorising officers responsible. Section 3 Authorisation of expenditure Article 46 1.Authorisation of expenditure is the act whereby the authorising officer responsible, by issuing a payment order, instructs the accounting officer to pay an item of expenditure which he has validated. 2.The payment order shall be dated and signed by the authorising officer responsible, then sent to the accounting officer. The supporting documents shall be kept by the authorising officer responsible in accordance with Article 35(4). 3.Where appropriate, the payment order sent to the accounting officer shall be accompanied by a document certifying that the goods have been entered in the inventories referred to in Article 60.



Section 4 Payment of expenditure Article 47

1.Payment shall be made on production of proof that the relevant action has been carried out in accordance with the provisions of the basic act and shall cover one of the following operations: (a)Payment of the entire amount due; (b)Payment of the amount due in any of the following ways: –pre-financing, which may be divided into a number of payments; –one or more interim payments; –payment of the balance of the amounts due. Pre-financing shall count in full or in part against the interim payments. The entire pre-financing and interim payments shall count against the payment of balances. 2.A distinction shall be made in the accounts between the different types of payment referred to in paragraph 1 at the time they are made. Article 48 Payment of expenditure shall be made by the accounting officer within the limits of the funds available. TITLE VI PROCUREMENT Article 49 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC shall apply.



TITLE VII PRESENTATION OF THE ACCOUNTS AND ACCOUNTING CHAPTER 1

PRESENTATION OF THE ACCOUNTS Article 50 The annual accounts of the Transport Community shall comprise: (a)The financial statements of the Transport Community and accompanying annexes; (b)The report on implementation of the budget of the Transport Community. Article 51 The accounts must comply with the accounting rules defined in Regulation (EU, Euratom) 2018/1046 and be accurate and comprehensive and present a true and fair view: (a)as regards the financial statements, of the assets and liabilities, charges and income, entitlements and obligations not shown as assets or liabilities and cash flow; (b)as regards report on budget implementation, of revenue and expenditure operations. Article 52 The financial statements shall present information, including information on accounting policies, in a manner that ensures it is relevant, reliable, comparable and understandable. The financial statements shall be drawn in accordance with generally accepted accounting principles as outlined in the accounting rules according to Article 80 of Regulation (EU, Euratom) 2018/1046 or the accrual based International Public Sector Accounting Standards (hereafter "IPSAS"). Article 53 1.In accordance with the principle of accrual-based accounting, revenue and expenses are recorded in the period in which they are earned or incurred regardless of the date of payment or collection. 2.The value of assets and liabilities shall be determined in accordance with the valuation rules laid down by the accounting methods provided for in International Accounting Standard and, if necessary, in National standards of the domicile country.



Article 54

1.The financial statements shall be presented in Euro and shall comprise: (a)The balance sheet and the statement of financial performance, which represent all assets and liabilities, the financial situation and the economic result at 31 December of the preceding financial year; they shall be presented in accordance with the accounting rules in Article 80 of Regulation (EU, Euratom) 2018/1046 or the accrual based IPSAS; (b)The cash-flow statement showing amounts collected and disbursed during the year and the final treasury position; (c)The statement of changes in equity during the financial year. 2.The annex to the financial statements shall supplement and comment on the information presented in the statements referred to in paragraph 1 and shall supply all the additional information prescribed by internationally accepted accounting practice where such information is relevant to the Transport Community's activities. CHAPTER 2

ACCOUNTING Section 1 Common provisions Article 55 1.The accounting system of the Transport Community is the set of manual and computerised procedures and controls that provide for identifying relevant transactions or events; preparing accurate source documents, entering data into the accounting records accurately, processing transactions accurately, updating master files properly, and generating accurate documents and reports. 2.The accounts shall consist of general accounts and budget accounts. These accounts shall be kept in Euro on the basis of the calendar year. 3.The figures in the general accounts and the budget accounts shall be adopted at the close of the budget year so that the accounts referred to in Chapter 1 can be drawn up. 4.The accounting officer shall apply accounting rules and methods which take account of the internationally accepted accounting standards for the public sector, and if necessary of the rules applied by the public authorities of the host country. Section 2

General accounts Article 56 The general accounts shall record, in chronological order using the double entry method, all events and operations which affect the economic and financial situation and the assets and liabilities of the Transport Community. Article 57

1.Movements on the accounts and the balances shall be entered in the accounting ledgers. 2.All accounting entries, including adjustments to the accounts, shall be based on supporting documents, to which they shall refer. 3.The accounting system must be such as to leave a trail for all accounting entries. Article 58 The accounting officer of the Transport Community shall, after the close of the budget year and up to the date of presentation of the final accounts, make any adjustments which, without involving disbursement or collection in respect of that year, are necessary for a true and fair presentation of the accounts in compliance with these rules. Section 3

Budget accounts Article 59 1.The budget accounts shall provide a detailed record of budget implementation. 2.For the purposes of paragraph 1 above, the budget accounts shall record all budget revenue and expenditure operations. 3.The Permanent Secretariat shall establish an annual report at the latest on 30 March of each year. The report shall include: –an operational report explaining the work carried out by the Permanent Secretariat and the results achieved. This report shall give an overview of the progress towards the objectives set in the annual work programme of the Permanent Secretariat. –a financial report on the budget implementation. CHAPTER 3 PROPERTY INVENTORIES Article 60 The Transport Community shall keep inventories showing the quantity and value of all the tangible, intangible and financial assets constituting Transport Community property.



TITLE VIII

EXTERNAL AUDIT AND PROTECTION OF FINANCIAL INTERESTS Article 61 Each year, the accounting officer establishes the accounts of the previous year no later than the 31 March. These accounts are validated by the Director. Article 62 Independent External Auditors, to be designated by the Regional Steering Committee, shall carry out the annual audit of the Transport Community. The term of service of the External Auditors is renewable every year, unless otherwise specified by the Regional Steering Committee. Article 63 1.The External Auditors shall submit to the Regional Steering Committee a report, together with the statement of assets and liabilities and certified accounts, not later than eight months after the end of the financial year to which they relate. The Regional Steering Committee may provide to the Budget Committee information it deems appropriate. 2.The Director shall make such observations as he considers appropriate on the External Auditors' report. 3.The External Auditors shall conduct such audits as deemed necessary, in accordance with their approved Terms of Reference. The External Auditors shall, in particular, inspect the accounting records and procedures of the Transport Community for the purpose of verifying the accuracy and completeness of the records. The external audit determines the overall validity of financial statements. 4.The External Auditors shall submit an audit report and certified accounts, together with a statement of assurance relating to the reliability of the accounts and the legality and regularity of the underlying transactions, to the Regional Steering Committee not later than eight months after the end of the financial year to which the accounts relate. If so requested by the Regional Steering Committee, the Budget Committee shall make to the Regional Steering Committee such observations on the documents submitted by the Auditors as it may consider appropriate. Article 64 1. The Authorising Officer and the Regional Steering Committee shall transmit without delay to OLAF and the European Commission any information obtained in accordance with Article 27. 2. The Regional Steering Committee and the staff of the Transport Community shall fully cooperate in the protection of the financial interests of the Union, in particular with the European Public Prosecutor’s Office and OLAF and provide them with the relevant information and, upon request, any assistance necessary to exert the latters’ respective competences, including to carry out investigations in accordance with Council Regulation (EU) 2017/1939 and Regulation (EU, Euratom) 883/2013 of the European Parliament and of the Council. The authorising officer shall also assure that any third person involved in the implementation of the Transport Community’s budget will fully cooperate and grant the European Prosecutor’s Office and OLAF equivalent rights. 3. OLAF shall have the power to carry out administrative investigations at the premises of the Transport Community, including the right of access for inspection in accordance with Regulation (EU, Euratom) 883/2013.



TITLE IX