RESOLUTION
of the European Parliament containing the comments accompanying the decision on the
discharge to the Director of European Foundation for the Improvement of Living and Working
Conditions in respect of the implementation of its budget for the financial year 2002
THE EUROPEAN PARLIAMENT,
— having regard to the Court of Auditors' report on the financial statements of the European
Foundation for the Improvement of Living and Working Conditions for the financial year 2002,together with the Centre's replies (
1) (C5 ‑0631/2003),
— having regard to the Council's recommendation of 9 March 2004 (C5-0137/2004),
— having regard to the EC Treaty, and in particular Article 276 thereof,
— 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, and to Council Regulation (EC) No 1649/2003 of 18 June 2003 amendingRegulation (EEC) No 1365/75 on the creation of a European Foundation for the Improvement of
Living and Working Conditions and repealing Regulation (EEC) No 1417/76 (
3), and in particular
Article 16 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 Council Regulation(EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the
European Communities (
4), and in particular Article 94 thereof,
— having regard to Rule 93 aof and Annex V to its Rules of Procedure,
— having regard to the Report of the Committee on Budgetary Control and the opinion of the
Committee on Employment and Social Affairs (A5-0212/2004),
A. Whereas the European Court of Auditors (ECA) stated in its above-mentioned report that it had
obtained reasonable assurance that the accounts for the financial year ended 31 December 2002 are
reliable and that the underlying transactions, taken as a whole, are legal and regular.
B. Whereas on 8 April 2003 Parliament gave discharge (5) to the Management Board of the Foundation
in respect of the implementation of its budget for the 2001 financial year and at the same timeParliament in its resolution, inter alia:
— regretted that the Foundation had not followed the tendering procedures in all its service
contracts entirely properly and called upon the Foundation to remedy that problem,
— welcomed the overall positive appraisal of the external evaluation of the Foundation's work and
called on it to pursue its efforts with a view to improving cooperation with the Commissionand the Parliament and introducing internal control processes,
— congratulated the Foundation on the high quality of the work carried out and encouraged it to
pursue its information efforts to make this work known to a wider audience,L 330/54 EN Official Journal of the European Union 4.11.2004
(1) OJ C 319, 30.12.2003, p. 55.
(2) OJ L 248, 16.9.2002, p. 1.
(3) OJ L 245, 29.9.2003, p. 25.
(4) OJ L 357, 31.12.2002, p. 72.
(5) OJ L 148, 16.6.2003, p. 89.
1. Notes the following figures for the accounts of the European Foundation for the Improvement of
Living and Working Conditions for the financial years 2002 and 2001:
Revenue and expenditure account for the financial years 2002 and 2001
(1 000 euro)
2002 2001
Revenue
Commission subsidies 16 500 14 958Sundry revenue 62 16Financial revenue 57 96
Total revenue (a) 16 619 15 070
Expenditure
Staff—Title I of the budget
Payments 9 111 7 583Appropriations carried over 216 190Administration —Title II of the budget
Payments 938 854
Appropriations carried over 683 245Operational activities —Title III of the budget
Payments 3 290 3 129Carry-overs 3 105 3 148
Total expenditure (b) 17 343 15 150
Outturn for the financial year (a −b)(
1) −724 −80
Balance carried over from the previous financial year −1 209 −12 1 0
Appropriations carried over and cancelled 81 59Sums from the financial year 2001 for re-use that were not used 13 24Exchange-rate differences 3 −2
Balance for the financial year −1 836 −1 209
(1)Calculation according to the principles of Article 15 of Council Regulation (EC, Euratom) No 1150/2000
( OJ L 130, 31.5.2000, p. 8).
NB: Any discrepancies in totals are due to the effects of rounding.
Source : The Foundation's data. These tables present, in summary form, the data supplied by the Foundation in its
own financial statements
Implementation of the budget
2. Notes the ECA's criticism concerning the large amount of carry-overs in operational activities;
welcomes the efforts made by the Foundation and the outline of measures it presented aimed atimproving planning and monitoring so as to reduce carry-overs considerably; considers that sharingthese measures with other agencies in the context of best practices could be helpful in managing
carry-overs;
3. Invites the Foundation to present its analysis of options offered by the new Financial Regulation, with
a view to further reducing carry-overs;4.11.2004 EN Official Journal of the European Union L 330/55
Financial statements
4. Calls on the Foundation to intensify its efforts to have an integrated accounting system up and
running as soon as possible and to adopt the measures needed for monitoring its fixed assets,
including depreciation; calls on the Commission to provide the Foundation with the assistance this
may require especially as regards integration of the accounting system;
Underlying transactions
5. Expects the Foundation to take all necessary steps, in line with the new Financial Regulation, to
respond rapidly to the ECA's call for it to improve the transparency of its tendering procedures;
Horizontal points on the agencies and the Commission
Implementing the new Financial Regulation - Internal audit and control6. Reiterates the position taken in its resolutions (
1) accompanying the discharge given to the agencies
for 2001 as regards the implementation of the new Financial Regulation; invites the Commission and
the agencies to continue their cooperation, in particular in the areas of accounting, internal audit,
management and control procedures, so as to ensure that a coherent harmonised framework for thefunctioning of the agencies is established;
7. Recalls that it expressed concern in the discharge resolution for 2001 concerning the lack of controls
on the agencies carried out by the internal audit service of the Commission (IAS); expresses graveconcern that such controls do not seem to have been carried out this year; asks the Commission andthe IAS to explain the reasons for this and to provide data about the number of staff available to the
Internal Auditor to carry out controls in the agencies; expects the Commission to indicate how it can
guarantee that sufficient and correct controls are carried out in the satellite bodies, in particular theIAS.
8. Stresses that it is essential that the agencies be required to submit to the investigative powers of
OLAF under the same conditions as the institutions (
2); invites the ECA to provide information, in
time for adoption of the discharge resolution, on whether the Community bodies which acceded tothe Interinstitutional Agreement of 25 May 1999 (
3) on internal investigations by OLAF did so in
the same terms as those laid down in the annex to this Agreement;
Financial management
9. Notes that in some of the Agencies' replies to the questionnaire concerning the way in which the
recurrent problem of substantial carry-overs might be addressed, mention is made of the possibilitiesoffered by the new Financial Regulation, which provides for the use of ‘differentiated appropriations ’;
invites the Agencies to better explain their analysis and to indicate in particular which of their
activities of a multiannual nature might be financed by such appropriations;
10. Invites the Commission to present its position on such a solution and, should it consider that this
solution is not feasible, to outline alternatives allowing for a substantial reduction in carry-overs;L 330/56 EN Official Journal of the European Union 4.11.2004
(1) OJ L 148, 16.06.2003, p. 83 and OJ L 333, 20.12.2003, p. 53 (point 18).
(2) Texts adopted, 13.1.2004, P5_TA(2004) 0015.
(3) OJ L 136, 31.05.1999, p. 15.
Review of the agencies
11. Stresses that, prior to any decision to set up an agency, the Commission must make a rigorous
analysis of the need for and added value of the functions that the agency will perform, with an eye tothe principles of subsidiarity, budgetary rigour and procedural simplification;
12. Calls on the Commission to make a general study of activities currently carried out by various
Community bodies that might overlap or serve the same goals, and to propose appropriate
solutions, including the possible mergers of agencies;
13. Is concerned by the fact that there is an imbalance between administrative and operational
expenditure in many agencies, with administrative expenditure exceeding expenditure for operationalpurposes; calls therefore on the Commission and the Agencies to set targets and a timetable to
reduce the level of administrative expenditure as a proportion of total expenditure; notes that many
agencies see opportunities in this regard, as listed in the questionnaire;
14. With reference to the replies to the questionnaire on interinstitutional cooperation, encourages the
agencies to improve cooperation between themselves in order to meet their needs in specific areas
(for example, software development) and reduce costs, rather than adopt solutions which were
initially designed for the purposes of the Commission but which often prove to be too cumbersomeand complicated for the agencies' specific needs;
15. Encourages the agencies to organise and develop a close working relationship with the competent
parliamentary committees; invites its standing committees with competence in the areas of activity of
each of the agencies to coordinate their action with the Committees of Budgets and BudgetaryControl, with a view to ensuring efficient monitoring of the activity of the Agencies;
New sources of financing
16. Welcomes the responses and ideas that emerged from the questionnaire concerning the possibilities
of other sources of financing; notes that many current sources and proposals concern the letting of
buildings and facilities and the sale of publications and information; realises that for reasons ofindependence, among other things, not all agencies are to accept additional financial sources; stressesthe economies of scale and financial benefits of the participation of non-EU countries in theactivities of certain Agencies; calls on the Commission and the agencies to come forward with
constructive proposals with regard to further development of new sources of additional financing,
which would increase the level of self-financing;
17. Welcomes the financial contributions of some Member States and regions to the agencies located on
their area; considers it important for Council and the Commission to demand such contributions,
especially when new agencies are set up;
Harmonised operating framework
18. Recalls its position (
1) that the multitude of different forms in the existing agencies' structures was
thought to be ‘neither transparent nor comprehensible, and, even bearing in mind the differences in
tasks, not justified ’; invites the Commission to conduct a review of all the existing agencies with a
view to proposing, where appropriate, amendments to their basic instruments (2) so as to adapt them
to the models that the future regulatory framework should encompass; instructs its competentcommittees to follow up this comprehensive review exercise, which should be conducted as soon aspossible, and to take into consideration the horizontal issues mentioned in this discharge resolution;4.11.2004 EN Official Journal of the European Union L 330/57
(1) P5_TA(2004) 0015 (paragraphs 13 and 14).
(2) P5_TA(2004) 0015 (paragraph 24).
19. Invites the Commission to present appropriate proposals, aimed at creating such a harmonised
framework for the agencies, prior to or at least in parallel with the presentation of the legislative
proposals for the new agencies; insists that an interinstitutional agreement spelling out commonguidelines is a pre-condition for creating the harmonised framework;
Staff policy
20. Notes that, as a result of the new Financial Regulation, the organigrams of the agencies are
established by the budgetary authority; stresses the importance of this change for the agencydischarge procedure in the years to come as regards checking application of the Staff Regulation inmatters of recruitment, promotion policy, vacancy rates and recruitment policy;
21. Notes that, in response to a questionnaire tabled in the course of the budgetary procedure for 2004,
it was established that, on average, it took considerably fewer years to obtain promotion at severalagencies than is the policy in the Commission, that vacancy rates were considerably higher comparedto other institutions and that several of the requested new posts were not proposed at the lowest
grade; considers that staff policy should form an important part of a review of the existing agencies;
22. Considers that the staff policy of the agencies should comply with the Financial Regulation, the Staff
Regulations and the best practice generally followed by the Institutions; considers that theCommission has been requested to give, before the 2005 budgetary procedure, guidelinesconcerning staff policy, notably the rate of vacant posts, the rate of promotions, the level of
recruitment and the standard career profile;
23. Recalls the principle that the agencies should as far as possible employ staff on temporary contracts,
in order to maintain flexibility and efficiency;
24. Is concerned about the serious anomalies detected in connection with the selection procedures of the
European Monitoring Centre for Drugs and Drug Addiction, including: imprecise notice, incomplete
selection committee minutes, criteria for assessing candidates not defined in advance (
1); is very
concerned that this might not be an isolated case but that Agencies in general might have difficultyin managing these rather complex procedures in a fair and transparent manner;
25. Is of the opinion that selection procedures organised by agencies should meet the same standards as
those organised by the European Personnel Selection Office (EPSO) and that they should not be
perceived as a backdoor for easy entry into the European civil service;
26. Invites the Commission to make proposals in order to ensure that the agencies benefit from
appropriate support from the EPSO when organising selection procedures and that there is amechanism in place to validate the outcome of such procedures externally before recruitment takes
place.L 330/58 EN Official Journal of the European Union 4.11.2004
(1) See paragraph 13 of the Court of Auditors' specific report for 2002 (p. 64).