Commission’s modified text Court’s suggestion

Article 10 Carry over rules for assigned revenue Article 10 Carry over rules for assigned revenue

Revenue not used and appropriations available at 31 December arising from the assigned revenue referred to in Article 18 shall be carried over as follows: Revenue not used and appropriations available at 31 December arising from the assigned revenue referred to in Article 18 shall be carried over as follows:

— external assigned revenue shall be carried over automatically and must be fully used until all the operations relating to the programme or action to which they are assigned have been carried out. External assigned revenue received during the last year of the programme or action may be used in the first year of the succeeding programme or action, — external assigned revenue shall be carried over automatically and must be fully used until all the operations relating to the programme or action to which they are assigned have been carried out. External assigned revenue received during the last year of the programme or action may be used in the first year of the succeeding programme or action.

— internal assigned revenue shall be carried over for one year only, unless specified otherwise in the basic act applicable, or in duly justified exceptional circumstances. The corresponding appropriations available must be used first. —

Article 81 Types of payments Article 81 Types of payments

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4. Prefinancing payments shall be cleared regularly by the responsible authorising officer. To this effect appropriate provisions shall be included in the contracts, grant decisions and agreements as well as the delegation agreements entrusting implementation tasks to the entities and persons referred to in points (a) to (h) of point (2) of the first paragraph of Article 53. 4. Prefinancing payments shall be cleared by the responsible authorising officer To this effect appropriate provisions shall be included in the contracts, grant decisions and agreements as well as the delegation agreements entrusting implementation tasks to the entities and persons referred to in points (a) to (h) of point (2) of the first paragraph of Article 53.

Article 123 Rules governing the accounts Article 123 Rules governing the accounts

The financial statements referred to in Article 121 shall comply with the Union accounting rules as adopted by the Accounting Officer of the Commission and shall present a true and fair view of the assets and liabilities, charges, income and cash flow.

The budgetary accounts referred to in Article 121 shall comply with the budgetary principles laid out in this Regulation. They shall present a true and fair view of the budgetary revenue and expenditure operations. The budgetary accounts referred to in Article 121 shall comply with the budgetary principles laid out in this Regulation. They shall present a true and fair view of the budgetary revenue and expenditure operations.

Article 143 Annual Report of the Court of Auditors Article 143 Annual Report of the Court of Auditors

1. The Court of Auditors shall transmit to the Commission by 15 June and to other institutions and bodies referred to in Article 121 by 1st of June at the latest, any observations which are, in its opinion, such that they should appear in the annual report. These observations must remain confidential and are subject to a contradictory procedure. Each institution shall address its reply to the Court of Auditors by 15 October at the latest. The replies of institutions other than the Commission shall be sent to the Commission at the same time. 1. The Court of Auditors shall transmit to the Commission and institutions , by 30 June at the latest, any observations which are, in its opinion, such that they should appear in the Annual Report. These observations must remain confidential . Each institution shall address its reply to the Court of Auditors by at the latest. The replies of institutions other than the Commission shall be sent to the Commission at the same time.

2. After completion of the contradictory procedure, each institution or body concerned shall address its reply to the Court of Auditors by 15 October at the latest. The replies of institutions other than the Commission and of the bodies shall be sent to the Commission at the same time.

Article 144 Special Reports of the Court of Auditors Article 144 Special Reports of the Court of Auditors

1. The Court of Auditors shall transmit to the institution or the body concerned any observations which are, in its opinion, such that they should appear in a special report. These observations must remain confidential and are subject to a contradictory procedure. 1. The Court of Auditors shall transmit to the institution or the body concerned any observations which are, in its opinion, such that they should appear in a special report. These observations must remain confidential .

The institution or the body concerned shall have two-and-a half months within which to inform the Court of Auditors of any replies it wishes to make on the observations in question. The institution or the body concerned shall 2 ½ months within which to inform the Court of Auditors of any replies it wishes to make on the observations in question.

The Court of Auditors shall adopt the definitive version of the special report in question the following month upon the receipt of the replies made by the institution or the body concerned.

The special reports, together with the replies of the institutions or bodies concerned, shall be transmitted without delay to the European Parliament and the Council, each of which shall decide, where appropriate in conjunction with the Commission, what action is to be taken in response. The special reports, together with the replies of the institutions or bodies concerned, shall be transmitted without delay to the European Parliament and the Council, each of which shall decide, where appropriate in conjunction with the Commission, what action is to be taken in response.

The Court of Auditors shall take all necessary steps to ensure that the replies of each institution or body concerned to its observations are published immediately next to or after each observation to which they relate. The Court of Auditors shall take all necessary steps to ensure that the replies of each institution or body concerned to its observations are published .

Article 185 Framework Financial Regulation for agencies and bodies set up under the Treaty on the functioning of the European and the Treaty establishing the European Atomic Energy Community Article 185 Framework Financial Regulation for agencies and bodies set up under the Treaty on the functioning of the European and the Treaty establishing the European Atomic Energy Community

1. In accordance with Article 290 of the Treaty on the Functioning of the European Union, the Commission shall adopt a framework Financial Regulation for bodies set up under this Treaty and the Treaty establishing the European Atomic Energy Community which have legal personality and receive contributions charged to the Union budget. 1. In accordance with Article 290 of the Treaty on the Functioning of the European Union , the Commission shall adopt a framework Financial Regulation for bodies set up under this Treaty and the Treaty establishing the European Atomic Energy Community which have legal personality and receive contributions charged to the Union budget.

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4. Unless otherwise provided in the basic act creating a body referred to in paragraph 1, the Court of Auditors shall examine the legality and regularity of the revenue and expenditure of this body before its accounts are consolidated with the Commission’s accounts. This examination shall rely on the audit report established by an independent external auditor designated by the body and whose mission is to verify the conformity of the body’s accounts with Article 123 of this Regulation. 4. 4.

Article 185a Model Financial Regulation for public private partnership bodies Article 185a Model Financial Regulation for public private partnership bodies

The bodies having legal personality set up by a basic act and entrusted with the implementation of a public-private partnership pursuant to Article 53(1) point (2) (e) shall adopt their financial rules. The bodies having legal personality set up by a basic act and entrusted with the implementation of a public-private partnership pursuant to Article 53(1) point (2)(e) shall adopt their financial rules.

These rules shall include a set of principles necessary to ensure sound financial management of Union funds, inspired by Article 53b of the present Regulation and which shall be laid down in a light model Financial Regulation, to be adopted by the Commission, in accordance with Article 290 of the Treaty on the Functioning of the European Union. These rules shall include a set of principles necessary to ensure sound financial management of Union funds, inspired by Article 53b of the present Regulation and which shall be laid down in a light model Financial Regulation, to be adopted by the Commission, in accordance with Article 290 of the Treaty on the Functioning of the European Union .