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 European Centre for Disease Prevention and Control for the financial year 2008

THE EUROPEAN PARLIAMENT,

having regard to the final annual accounts of the European Centre for Disease Prevention and Control for the financial year 2008,

having regard to the Court of Auditors’ report on the final annual accounts of the European Centre for Disease Prevention and Control 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 Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 establishing a European Centre for Disease Prevention and Control [3], and in particular Article 23 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 and the opinion of the Committee on the Environment, Public Health and Food Safety (A7-0104/2010),

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 the underlying transactions are legal and regular,

B. whereas on 23 April 2009 Parliament granted the Director of the European Centre for Disease Prevention and Control 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 that the Centre’s budget increased from EUR 17100000 in 2006 to EUR 28900000 in 2007,

- noted that, in 2006, the carry-over rate was nearly 45 %, and that no major improvement was made in 2007, when it was close to 43 %, which showed the Centre’s difficulties in implementing its budget,

- noted the Court of Auditors’ observation that the level of budget amendments had revealed weaknesses in the monitoring of budget implementation,

1. Expresses its satisfaction with the successful fifth year of operation of the Centre; notes that the Centre’s budget increased from EUR 17100000 in 2006 to EUR 28900000 in 2007 and to EUR 40700000 in 2008;

Performance

2. Consequently, notes that the Centre consolidated its public health functions, enhanced the capacities of its disease-specific programmes, further developed partnerships and improved its managerial structures;

3. Calls on the Centre to set out, in a table to be annexed to the Court of Auditors’ next report, a comparison of operations carried out during the year for which discharge is to be granted and in the previous financial year, so as to enable the discharge authority to assess its performance more effectively from one year to the next;

Carry-over of appropriations

4. Notes that the Court of Auditors points out that about EUR 16200000 (representing 40 % of the Centre’s total budget) have had to be carried over; is consequently concerned that this situation is at odds with the principle of annuality and shows weaknesses in the programming and subsequent implementation of the Centre’s budget;

5. Notes that the Centre’s accounts for the financial year 2008 show income from interest of EUR 313000 and that, in accordance with the Financial Regulation, a sum of EUR 307000 had to be paid back to the Commission; concludes from the annual closure of accounts and the amount of interest payments that the Centre maintains enormously high cash reserves over long periods; notes that as of 31 December 2008 the Centre’s cash reserves amounted to EUR 16705090,95; calls on the Commission to examine ways of ensuring that the principle of needs-based cash management, as laid down in Article 15(5) of Regulation (EC, Euratom) No 2343/2002, is implemented in full and what changes in approach are needed to ensure that the Centre’s cash reserves are kept as low as possible on a long-term basis;

6. Takes note of the Centre’s efforts to conclude procurement and contracting activities initiated in 2008 early in 2009 so as to lower the carry-over level;

The Centre’s seat

7. Is concerned that as of 31 December 2008 there was still no seat agreement between the Centre and the Swedish Government as there were still many outstanding issues that needed further negotiation; points out that in its discharge for the financial year 2007, the discharge authority was already expressing concern at the Court of Auditors’ observation that the Centre had disbursed EUR 500000 on renovation works on the buildings rented for its premises, and that, as in 2006, these works had been decided upon by direct agreement between the Centre and the owner without specifying the nature of the works and the deadlines and payment conditions; nevertheless welcomes the fact that an agreement was concluded in March 2009 on personal identity numbers and supports the Centre’s efforts to find definitive solutions with the Swedish government;

8. Reminds the interinstitutional working group on decentralised agencies to address this issue in general terms in its discussions;

Human resources

9. Points out that there are still weaknesses in the planning of recruitment procedures; is concerned, in particular, that by the end of 2008 only 101 of the 130 posts authorised had been filled;

10. Notes the efforts made to implement the authorised establishment plan of 130 posts in 2008; welcomes the recruitment of 54 additional staff (temporary agents, contract agents and seconded national experts), resulting in 101 occupied posts by the end of 2008, which will help to ensure the operability of the Centre and enable it to achieve the tasks assigned to it; regrets the fact that 16 recruitment procedures needed to be re-advertised; supports the Centre’s measures to improve the situation; welcomes the Centre’s revision of its internal organisation;

Internal audit

11. Deplores the fact that the Centre has not comprehensively fulfilled its obligation to send to the authority responsible for discharge a report drawn up by its Director summarising the number of internal audits conducted by the internal auditor as provided for in Article 72(5) of the framework Financial Regulation; acknowledges, nevertheless, that the Centre gave some information on the six recommendations still open, which are considered to be "very important" by the Commission’s Internal Audit Service; notes that these affect the quality of management (as regards scientific advice, health communication and strengthening the current procedure for urgent risk/threat assessment), follow-up action in respect of certain internal control standards (such as the setting-up of financial circuits) and the implementation of other internal control standards (such as identifying weaknesses and structuring the annual Activity Report);

12. 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. 112.

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

[3] OJ L 142, 30.4.2004, p. 1.

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

[5] OJ L 255, 26.9.2009, p. 133.

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

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