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 Translation Centre for the Bodies of the European Union for the financial year 2008

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2008,

having regard to the Court of Auditors’ report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2008, together with the Centre’s replies [1],

having regard to the Council’s recommendation of 16 February 2010 (5827/2010 — C7-0061/2010),

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 2965/94 of 28 November 1994 setting up a Translation Centre for bodies of the European Union [3], and in particular Article 14 thereof,

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 (A7-0071/2010),

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 on 23 April 2009 Parliament granted the Director of the Translation Centre for the Bodies of the European Union discharge in respect of the implementation of the Centre’s budget for the financial year 2007 [5], and in its resolution accompanying the discharge decision, inter alia:

- noted the Court of Auditors’ observation in its 2006 report that the accumulated budget surplus for 2006 was EUR 16900000 and that, in 2007, the Centre would refund EUR 9300000 to its clients; agreed with the Court of Auditors that such an accumulation of surpluses suggested that the method used by the Centre to price its translations was not precise enough,

- called on the Commission and the Centre to strive to resolve quickly the dispute over pension contributions for staff;

Performance

1. Congratulates the Centre on having developed an efficient IT tool, FlosysWeb, which is used by clients to send translations, with the clients choosing between different format options and receiving the translations back via the same system;

Budget surplus contrary to the Regulation establishing the Centre

2. Notes that for several years the Centre has had an accumulated budget surplus contrary to Regulation (EC) No 2965/94, and that in 2008 the surplus amounted to EUR 26700000 (whereas it had been EUR 16900000 in 2006, EUR 10500000 in 2005 and EUR 3500000 in 2004); notes that this surplus is mainly linked to the lack of precision in the forecasts for translation requests received from its clients; calls on the Centre to take more effective measures to remedy this constant rise in its surplus;

3. Notes that, in 2009, the Centre refunded EUR 11450000 to its clients; stresses that similarly, in 2007, the Centre had already refunded EUR 9300000 to its clients;

4. Notes that the Centre reported EUR 1580984,34 in income from interest in 2008; concludes from the financial statements and from the level of the interest payments that the Centre permanently maintains an extremely high level of cash holdings; notes that on 31 December 2008 the Centre’s cash holdings amounted to EUR 48405006,88; asks the Commission to examine what scope there is for helping to ensure that the cash holdings are managed entirely on a needs-orientated basis, in accordance with Article 15(5) of Regulation (EC, Euratom) No 2343/2002, and what changes of approach are necessary in order to keep the Centre’s cash holdings permanently as low as possible; calls on the Centre to offer its clients cost-covering services in future;

Pension contributions for staff

5. Considers it very regrettable that, although this issue has been highlighted in discharge resolutions over many years, a solution concerning the conflict between the Centre and the Commission as to the employer’s share of pension contributions for staff has still not been found;

6. Notes with concern that this ongoing conflict with the Commission is costing the Centre several millions; notes in particular that in 2008 the Centre established a reserve of EUR 15300000 to tackle the consequences of this conflict; calls, therefore, on the Centre to inform the discharge authority of the progress of the negotiations and of staff costs (in relation to time and expenditure) incurred as a result of this conflict;

Internal audit

7. Notes that the Centre set up an internal audit function in 2006 and that that position has been occupied since February 2008;

8. Acknowledges that most of the recommendations of the Internal Audit Services (IAS) have now been implemented; considers that it is highly important for the Centre to implement fully a policy on sensitive posts and staff mobility;

Human resources

9. Observes that only 81 % of the posts provided for were occupied by officials and temporary staff in December 2008; notes that the Centre has justified this inadequate figure by pointing to a lack of office space, which made it impossible to recruit in accordance with the establishment plan; considers nonetheless that the Centre should plan its recruitment procedures more realistically and effectively in order to respect the time limits and meet all the needs arising from an increase in the Centre’s staff;

10. Encourages the Centre to establish comprehensive training maps based on requisite staff skills and capabilities in order to maintain a high level of competence of its staff; furthermore, supports the Centre in the steps taken by it to effectively monitor the quality of its training courses;

11. Refers for other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of 5 May 2010 [6] on the performance, financial management and control of the agencies.

[1] OJ C 304, 15.12.2009, p. 107.

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

[3] OJ L 314, 7.12.1994, p. 1.

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

[5] OJ L 255, 26.9.2009, p. 145.

[6] Texts adopted, P7_TA(2010)0139. See page 241 of this Official Journal.

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