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 for the European GNSS Supervisory Authority for the financial year 2008

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the European GNSS Supervisory Authority for the financial year 2008,

having regard to the Court of Auditors’ report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2008, together with the Authority’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 the 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 1321/2004 of 12 July 2004 on the establishment of structures for the management of the European satellite radio-navigation programmes [3], and in particular Article 12 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 (A7-0073/2010),

A. whereas the Court of Auditors nuanced its statement of assurance on the reliability of the annual accounts for the financial year 2008 and on the legality and regularity of the underlying transactions,

B. whereas the Court of Auditors, in its report on the annual accounts of the Authority for 2006, issued a positive statement of assurance,

C. whereas the Court of Auditors states that it was unable to form an opinion on the accounts of the European GNSS Supervisory Authority for the financial year 2007 and points out that the entire architecture of the Galileo project was being revised in 2007 and that the Authority’s accounts were prepared in a fragile legal environment,

D. whereas the Authority became financially autonomous in 2006,

E. whereas on 23 April 2009 Parliament granted the Executive Director of the European GNSS Supervisory Authority discharge for implementation of the Agency’s budget for the financial year 2007 [5], and in its resolution accompanying the discharge decision, inter alia:

- noted that the appropriations actually made available to the Authority (EUR 210000000) were substantially lower than had been budgeted, due to delays incurred in the Galileo Programme,

- was concerned that the Court of Auditors had found the following weaknesses with regard to budget implementation: low consumption level of commitment and payment appropriations for operational activities (63 % for commitments and 51 % for payments); absence of a clear link between the Authority’s work programme and the budget; transfers neither justified nor documented; repeated late booking of recovery orders; inconsistent presentation of budget implementation,

- took note the Court of Auditors’ criticism, with regard to Galileo project assets, that the Authority was unable to provide sufficient information in its accounts, as no list of the assets held by the European Space Agency (ESA) had been established by the end of 2007,

Budgetary and financial management

1. Regrets that the Court of Auditors nuanced its statement of assurance on the reliability of the annual accounts for the financial year 2008 and on the legality and regularity of the underlying transactions;

2. Notes that the Authority has decided to present the results of its activities without taking into account the fact that the Authority’s management of the Galileo and EGNOS programmes would be discontinued after the finalisation of the transfer of assets and funds to the Commission scheduled for the end of the first quarter of 2008;

3. Notes that Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 [6] entered into force on 25 July 2008, and that in spite of the transfer to the Commission of responsibility for management of the Galileo and EGNOS programmes, the Commission transferred EUR 95000000 to the Authority’s bank account on 24 December 2008; regrets that no proper amending budget was established;

4. Notes that following the entry into force of Regulation (EC) No 683/2008, a very substantial reduction in the Authority’s budget was adopted in 2008 (from EUR 436500000 in 2007 to EUR 22700000);

5. Is concerned that, although under Regulation (EC) No 683/2008 the Commission became responsible, from 1 January 2009, for fund management and implementation of the European satellite navigation programmes (EGNOS and Galileo), neither activities nor any assets had yet been transferred to the Commission by the end of 2008, and that the new distribution of responsibilities between the Commission and the Authority was not clearly reflected in their respective annual accounts; understands from the Court of Auditors that the Authority should accordingly have treated the amount of EUR 58400000 as a debt to the Commission and not shown it as prefinancing received from the Commission; notes, moreover, that the EUR 55600000 payable to the European Space Agency should not have appeared in the accounts, as this figure represented contributions by the Communities to the Galileo and EGNOS programmes and came under the Commission’s responsibility;

6. Notes, nevertheless, the Authority’s reply justifying its action by stating that the Commission had formally confirmed its agreement for the assets to be transferred only with effect from 31 July 2009, as it had not been possible to agree the transfer arrangements with the Commission until the end of June 2009;

7. Refers to the recommendations in Special Report No 7/2009 of the Court of Auditors addressed to the Commission as the new manager of the Galileo Programme;

Internal audit

8. Acknowledges that the Internal Audit Service (IAS) conducted its internal audit in November 2007 and its follow up audits in October 2008 and December 2009; notes that the two remaining important IAS recommendations yet to be implemented relate to sensitive posts and job descriptions;

9. Refers, for other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of 5 May 2010 [7] on the performance, financial management and control of the agencies.

[1] OJ C 304, 15.12.2009, p. 100.

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

[3] OJ L 246, 20.7.2004, p. 1.

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

[5] OJ L 255, 26.9.2009, p. 162.

[6] Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 on the further implementation of the European satellite navigation programmes (EGNOS and Galileo) (OJ L 196, 24.7.2008, p. 1).

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

--------------------------------------------------