Special Report No 23/98 concerning the Information and Communication measures managed by the Commission accompanied by the replies of the Commission (Pursuant to Article 188c (4), second subparagraph, of the EC Treaty)
Date: 1998-10-15
Institutions: European Commission
Subjects: EU programme, dissemination of EU information, implementation of the budget, information network, information policy

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SPECIAL  REPORT  No  23/98

concerning  the  Information  and  Communication  measures  managed  by  the  Commission
accompanied  by  the  replies  of  the  Commission

(Pursuant  to  Article  188c  (4),  second  subparagraph,  of  the  EC  Treaty)

(98/C  393/03)

TABLE  OF  CONTENTS

Paragraph
reference

Page

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 — 4

BUDGETARY  DEVELOPMENT  AND  BUDGET  EXECUTION . . . . . . . . . . . . .

5 — 7

REGULATORY  FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8 — 11

RESULTS  OF  THE  AUDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12 — 32

Unclear  objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

The  functioning  of  the  Information  Networks . . . . . . . . . . . . . . . . . . . . . . . . .

13 — 26

Outline  of  the  system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13 — 17

Information  network  agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 — 23

Prince-agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24 — 26

Evaluation  and  inspection  activities

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

Control  framework  for  the  Community  support . . . . . . . . . . . . . . . . . . . . . . .

28 — 32

CONCLUSION  AND  RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . .

33 — 39

Tables  1-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Replies  of  the  Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48

49

49

50

50

50

50

51

51

51

52

52

54

59

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INTRODUCTION

(iii) Urban  Forums  (UF) (3)

the  audit  was 

(B3-306:  Prince-Programme 

the  permanent
1. The  subject  of 
(B3-300
information  and  communication  activities 
‘General 
information  and  communication  measures
concerning  the  European  Union’,B3-301  ‘Information
‘Information  programmes  for
network’  and  B3-302 
non-member  countries’)  as  well  as  specific  information
measures 
‘Information
in  connection  with  specific  policies’).  The
activity 
permanent 
information  and  communication  activities
comprise information on activities of the European Union
to  provide  the  European  citizen  with  information  on
general  matters  about  Europe.  The  specific  or  priority
information  measures  deal  with  specific  Community
policies of topical interest (Citizens First, EURO, Building
Europe  Together).  These  activities  and  measures  are
managed  by  DG  X.  In  addition  DG  X  has  overall
responsibility for the internal coordination of information
and  communication  activities.

2. The  permanent 
activities  are  split  up  into  :

information  and  communication

(a)  general  information  and  communication  measures

concerning  the  European  Union  (B3-300)

These  measures  cover 
information  activities  and
Europe-wide  operations  to  be  implemented  by  the
Commission  in  association  with  the  other  European
Institutions  and  which  are  designed  to  provide
European  citizens  with  information  about  Europe.
Management  units  involved  in  the  development  of
to  DG  X  and  decentralized
projects  belong 
the
implementation 
is 
in  the
participation  of  the  Commission  Offices 
Member  States;

partially 

assured 

by 

(b) information  network  (B3-301)

This  measure  covers  principally  the  financing  of
permanent 
information  activities  through  specific
agreements  with  four  kinds  of  networks:

(i) 

Info-Points  Europe  (IPE) (1)

(ii)  Rural  Information  and  Promotion  Carrefours

(RIPC) (2)

(1)  They  provide  the  general  public  with  basic  information  on
its  policies,  and  distribute

the  European  Union  and 
Commission  publications  on  general  topics.

(2)  The  purpose  of  the  rural  carrefours  is  to  inform  all  sections
of rural society about the European Union and in particular,
the  different  Union  policies  and  programmes  likely  to  affect
them  directly.

(iv)  Information  Centres  on  Europe  (ICE) (4)

(c) information  programmes  for  non-member  countries

(B3-302)

in  States  outside 

This measure covers the funding of projects designed
to  promote  the  image  of  the  Community  among  a
number  of  strategic  target  audiences  and  opinion
leaders 
(universities  and  schools,  Chambers  of
Commerce  and  Industry,  trade  unions,  professional
and  craft  organisations) 
the
European  Union.  DG  X  has  developed  a  range  of
the
information  strategies  adapted 
regional 
particular  conditions  of  the  major  world  blocs  by
defining specific objectives and key messages for each
region  and  the  principal  target  audiences  within
them.  Of  the  total  funds  under  budget  line  B3-302,
the
part 
Community  and  part  directly  by  DG  X’s  central
units.

the  Delegations  outside 

is  spent  by 

to 

three 

3. The specific activities are under the Prince programme
information
(B3-306).  This  measure  covers 
campaigns  (‘Citizens  First’,  ‘Euro’  and  ‘Building  Europe
Together’)  launched  jointly  by  the  European  Parliament
and  the  Commission  in  October  1995  with  the  aim  of
stimulating  debate  on  major  issues.  The  management  of
this measure was given to a specific task force created ad
hoc for this purpose within DG X. The Prince task force
works closely with DG XV (for Citizens First) and DG II
(for  Euro)  but  has  full  responsibility  for  the  third
campaign  (Building  Europe  Together).  Funds  for  these
campaigns  were  provided  under  the  supervision  of  a
steering  group  made  up  of  Members  of  the  European
Parliament 
charge  of
the  Commission 
coordination  for  the  three  campaigns.  Decentralised
implementation  of  the  Prince  programme  is  ensured
through  a  system  of  agreements  with  some  Member
States,  by  the  participation  of  Commission  Offices  in  the
information
Member  States  and  through  a  set  of 

and 

in 

(3)  They are designed to involve people active in civic affairs and
ordinary  citizens  in  carrying  through  the  European  Union’s
strategy  for  moving  towards  a  type  of  development  which
respects  the  environment  and  our  natural  resources.  The
Forums  are  accommodated  by  local  bodies  with  experience
of  local  development  and  public  information.

(4)  The  centres  were  set  up  jointly  by  the  Commission  and  the
authorities  in  the  host  countries.  The  centres  are  located  in
the  national  capitals  and  their  function  is  to  inform  the
general  public,  reply  to  requests  for  information  from
interest  groups  and  provide  a  venue  for  meetings,  training
and other activities relating to Europe. Three centres have so
far  been  opened,  in  Paris,  Lisbon  and  Berlin.

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networks  supported  by  DG  X/B/3.  For  each  of  the  three
campaigns  a  communication  plan  was  prepared  by  the
Prince  task  force  and  adopted  by  the  steering  group.  On
the  basis  of  these  communication  plans  a  total  of  235
and  662  projects  were  carried  out  in  1996  and  1997
respectively.

7. Not  all  of  the  information  networks  concerning
permanent 
information  activities  are  financed  under
budget  line  B3-301;  some  are  cofinanced  by  budget  line
B3-300.  In  the  interest  of  adherence  to  basic  budgetary
principles  and  to  ensure  a  coherent  and  efficient  overall
management,  the  information  networks  in  their  entirety
should  be  funded  under  one  single  budget  line.

4. The  audit  covers  the  period  1995-1997,  i.e.  almost
ECU  300  million  in  commitment  appropriations  for  the
three-year  period.  The  audits  were  carried  out  at  the
Commission’s  services  in  DG  X  as  well  as  in  five
Commission  Offices  (Belgium,  Germany,  Spain,  France
and  United  Kingdom).

REGULATORY  FRAMEWORK

BUDGETARY 
EXECUTION

DEVELOPMENT 

AND 

BUDGET

there 

existed  no 

comprehensive
5. Before  1995 
budgetary  policy  in  relation  to  information  activities.  An
inventory  of  budget  resources  devoted  to  information
activities  throughout  the  Commission  was  carried  out  by
DG XIX for the first time in 1995 following a demand of
the  General  Inspection  Service.  Since  then  a  similar
exercise has been carried out annually and the results are
communicated to the Steering Committee for Information
and Communication Policy. The basis for this calculation
is  the  population  of  SINCOM  payments  through  the
identification  of  expenditure  related  to 
information
activities found by applying specific analytical codes in all
the  Commission’s  departments.  The  consolidated  data
provided  by  DG  XIX  show  the  following  trend  for
information activities:

(a)  1995:  ECU  137 040 143;

(b) 1996:  ECU  158 116 392;

(c)  1997:  ECU  189  926  270.

the 

For the period covered by the audit, it was impossible to
determine  what  were 
commitment
appropriations  available  to  be  allocated  to  information
activities  in  the  Commission.  Within  the  Information
Policy area managed directly by DG X the four measures
concerned  by  the  Court’s  audit  have  followed  the
budgetary  developments  as  shown  in  Tables  1,  2  and  3.

total 

6. For  budget  lines  B3-3000  and  B3-3060,  part  of  the
planned  funds  are  entered  in  a  reserve  (Chapter  B0-40)
and  require  specific  procedures  before  release  by  the
budgetary  authority.  This  is  usually  only  done  in  the
second  half  of  the  financial  year,  which  adversely  affects
the  functioning  of  the  financial  unit  within  DG  X  and
leads  to  a  low  rate  of  implementation  of  payments.  This
is  especially  the  case  concerning  the  execution  of  the
Prince  programme  in  1996.

implementation  of  measures  within 

8. The 
the
framework  of  Information  and  Communication  Policy  is
characterised by a weak regulatory framework. The legal
reference in the budget itself is to Articles 126 and 127 of
the  Treaty,  which  do  not  deal  with  information  and
communication  policy  but  with  education,  vocational
training  and  youth.  The  Commission  has  not  sufficiently
defined  the  overall  objectives  of  Information  Policy,  the
management systems and rules to be applied in this sector
and the indicative funds available as well as a distribution
among  objectives  of  those  funds.  DG  X  set  out  broad
guidelines  under  Communications  SEC(93)  916/9  (‘The
Commission’s  Information  and  Communication  Policy:  a
new  approach’)  and  SEC(93)1248/3  (‘Information  plan
mechanism’). It appears from these Communications that
the  Commission  lacked  a  coordinated  overall  strategy  in
communication  policy  and  that  in  order  to  meet  the
challenges in this sector there was a need for the creation
of an appropriate mechanism — the information plans —
to  ensure  that  the 
information  and  communication
dimension is integrated into all Commission policies with
external  implications.  It  was  further  foreseen  that  the
new  organisation  of  DG  X  would  be  based  on  a  clear
distinction  between  tasks  of  conception  and  those  of
implementation 
the
Commission  Offices  in  the  Community  which  would
have  to  exercise  a  leading  role  in  relation  to  information
networks  operating  in  their  countries.

reinforcement  of 

through  a 

9. Further  proposals  have  been  drawn  up  in  order  to
apply  new  procedures  and  structures,  mainly:

(a)  SEC (94) 80/4 establishing the functions and duties of

the  Commission  Offices  in  the  Member  States;

(b) SEC(94)  82/4  laying  down  the  general  objectives  of
external  information  and  communication  activities  in
relation  to  third  countries;

(c)  SEC(94)488  establishing  the  operational  framework

regarding  information  networks.

10. The  Court’s  assessment  of  the  operation  of  these
new  procedures  and  structures  identified  the  following
obstacles  to  their  efficient  and  effective  implementation:

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(a)  information  plans 

internal
documents  intended  solely  for  operational  guidance
without  a  direct  link  to  the  budgetary  execution  of
appropriations  within  budget  line  B3-300;

conceived 

are 

as 

(b) attention  should  be  given  to  ensuring  that  the
Commission  Offices  in  the  Member  States  play  a
proper  role  in  the  dissemination  of  information
produced 
in  this  context  the
authority  of  DG  X  in  relation  to  the  Commission
Offices  needs  to  be  strengthened;

in  Brussels,  and 

(c)  the  Operational  Manual  on  Relays  foreseen  in  the
Communication  SEC(94)  488  has  not  yet  been
prepared  by  DG  X.

11. On  11  October  1995  the  Commission  adopted
information
Communication  SEC(95)  1672  on 
activities under the Prince programme. However, no legal
instrument  was  created  to  organise  the  functioning  of
these  specific  information  activities.

the 

RESULTS  OF  THE  AUDIT

Unclear  objectives

12. There  is  insufficient  definition  of  objectives  to  be
achieved  through  the  funding  of  measures/projects  from
budget line B3-300. In practice, some projects which had
no  demonstrable  link  with  information  policy  activities
were  financed.  The  creation  of  the  ‘information  plan
mechanism’ [SEC(93) 1248/3] should have been used as a
basic  reference  framework  in  order  to  establish  a  set  of
measures/projects 
line
B3-3 0 0.

from  budget 

funded 

to  be 

The  functioning  of  the  information  networks

Outline  of  the  system

13. Table  4  shows  the  information  networks  subsidised
by  DG  X  broken  down  by  Member  State  and  type  of
network. The networks are an essential instrument in the
Commission’s  information  policy,  but  despite  this  there
remain  empty  areas,  mainly  in  the  United  Kingdom  and
Germany, where the presence of the networks needs to be
reinforced. At the same time an effort is needed to ensure
a  regional  balance  in  the  geographical  distribution  of  the
four  kinds  of  networks.  It  is  true  that  there  are  other
information  structures  in  the  Member  States  such  as
public  libraries  in  the  United  Kingdom,  but  they  are
outside  the  European  network  and  therefore  are  not
obliged 
the  specific
the  requirements 
agreements  set  up  by  the  Commission.

fulfil 

to 

in 

14. The modernisation of the Commission’s information
policy  should  be  based  on  an  efficient  system  of
information  networks,  and  in  this  context  the  experience
acquired  in  the  Information  Centres  on  Europe  (ICEs)  in
Paris, Lisbon and Berlin should be considered for further
implementation  throughout  the  Community.  However,  a
maximum  amount 
should  be
introduced. Table 5 shows the Community support given
to  the  ICEs  in  the  period  1992-1997.

for  annual  grants 

15. Community support for the ICE in Paris is given by
several Commission departments with a total Community
contribution  ranging  from  44 %  to  51 %  of  budget
revenues  in  the  period  1992-1997.  This  Centre  was
intended  by  the  Commission  to  serve  as  a  model  for
similar projects in the other Member States and develops
two  main  priority  activities:  support  to  the  network  of
information  relays 
in  France  and  production  and
distribution  of  information  documents  targeted  to  the
general public.

16. The  Court’s  overall  assessment  of  documentation
and  information  activities  carried  out  by  the  Centre  is
positive.  However  the  Court’s  perception  of  the  basis  on
which  the  Centre  is  financed  is  less  favourable.  In
December  1991,  the  French  national  authorities  and  the
Commission agreed to split the rent charges in a way that
the  national  authorities  should  bear  two-thirds  and  the
Community  budget  one  third,  while  other  running  costs
were  to  be  divided  equally  between  the  two  parties.  This
arrangement  changed  in  1994  when  the  Community
contribution  to  the  rent  rose  to  50 %,  because  the
national authorities had been unable to fulfil their part of
the original agreement. At the same time, the level of the
rent had been reexamined and as a consequence, reduced.
The  rent  was  then  renegotiated  for  a  second  time  in
1997,  and  was  reduced  still  further.  Despite  these
reductions  in  the  level  of  the  rent,  the  Court  considers
that  the  Commission  should  not  have  accepted  this
change in the proportion of cofinancing  (5), nor should it
have  accepted  the  responsibility  for  covering  unilaterally
the  cumulative  deficit  of  the  Centre  (6)  to  31  December
1997.

17. The  Centre  is  also  faced  from  time  to  time  with
cashflow  problems  owing  to  delays  in  providing  the
national  contributions  due  in  April  and  October.  While
the  application  of  the  cofinancing  principle  is  welcome,
there  is  no  reason  why  the  national  contributions  should
have  been  paid  months  after  the  payment  dates  agreed
with  the  Commission.

(5)  As  a  consequence  the  Commission’s  part  of  the  rent  rose

from  33 %  to  50 %.

(6)  The  deficit  was  ECU  150 000.

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Information  network  agreements

18. There are three kinds of written agreements between
the  Commission  and  Member  States  depending  on  the
nature  of  the  network.  They  all  provide  a  clear
description  of  the  functions  of  the  networks,  a  system  of
reporting on a six-monthly and yearly basis and the terms
of  the  financial  support  to  be  granted.  However,  the
system  of  agreements  has  not  yet  been  applied  to  the
whole  of  the  networks;  at  the  end  of  1997,  34  IPEs,  1
RIPC  and  2  UFs  were  still  awaiting  signature  of  the
relevant agreement. The agreements with the UFs were all
signed very late in December 1997, which clearly delayed
the  transfer  of  funds  from  DG  X  and  therefore
endangered  the  functioning  of  the  information  activities
to  be  carried  out  by  the  UFs.  There  is  a  lack  of
harmonisation  among  the  three  kinds  of  agreements
regarding the level of the financial support (starting grant
and  ongoing  grants).

22. The  contract  specification  (standard  services  and
additional  services)  delegates  permanent  tasks  to  the
contractor  which  should  be  ensured  by  the  London
Office  itself.  Payments  to  the  contractor  are  based  solely
on  invoices  for  services  provided  and  meagre  quarterly
reports.  Its  accounts  do  not  provide  an  audit  trail  of  the
expenditure  incurred  in  relation  to  the  contract.  The
Commission  should  examine  whether  it  would  be  more
cost  effective  if  the  London  Office  carried  out  the  work
itself.

In 

the  past,  DG  X  has  not 

23.
incorporated
systematically  in  its  agreements  the  general  contractual
conditions  as  they  are  included  in  the  model  contracts
laid  down  by  the  Commission.  In  some  cases,  payments
were  made  automatically  without  specific  requirements
for  their  justification.  In  addition,  in  some  contracts  no
audit  rights  either  of  the  Commission’s  services  or  of  the
Court  of  Auditors  were  established,  contrary  to  the
provisions  of  the  Financial  Regulations.

19.
In  Germany,  the  Commission  Office  largely  ignores
the guidelines developed by DG X. The Info-Points set up
in  Bonn  and  Erfurt  not  only  failed  to  sign  the  standard
agreement but also received grants two or three times the
normal  level.  For  the  Info-Point  Bonn  the  financial
contribution  from  the  Community  budget  covers  100 %
of  the  costs  and  the  compulsory  Advisory  Committee  on
Procurements  and  Contracts  (ACPC)  procedures  were
disregarded.

Prince  agreements

24.
In  relation  to  the  Prince  programme,  the  system  of
agreements with some Member States has been applied in
the  two  strands  where  a  decentralised  management
approach  was  retained:  Euro  and  Building  Europe
Together  (see  Table  6).

the 

In  Spain, 

setting-up  of 

20.
Info-Points  was
orientated  towards  the  creation  of  a  computerised
network  based  on  the  ‘Disputaciones’.  In  the  period
1995-1997, 
to
implement  the  first  phase  of  the  network,  with  a  global
commitment  of  145  000  ECU.  After  two  years,  these
commited  funds  had  not  been  utilized.  A  new  approach
based  on  the  regional  level  is  being  adopted.

‘Disputaciones’  were 

chosen 

five 

of 

operations 

25. The main advantages of the signature of agreements
with  Member  States  for  the  implementation  of  activities
under  the  Prince  programme  are  to  decrease  the
scattering 
the
characterises 
implementation  of  permanent 
information  activities,
especially  as  far  as  budget  line  B3-300  is  concerned,  and
the  principle  of
to  apply  on  a  systematic  basis 
cofinancing, though for the rest of the projects within the
PRINCE  programme  the  target  of  50 %  grant  of  total
costs  is  not  a  compulsory  rule.

that 

21.
In  the  United  Kingdom,  the  Commission  Office  in
London  has  awarded  two  contracts  to  a  company  which
provides administrative support to the London Office for
servicing  the  national  information  network  and  gives
assistance  in  a  programme  of  follow-up  activities.  The
first  contract,  signed  on  15  December  1993,  has  led  to  a
total  payment  of  ECU  1 045  752,  although  ACPC
opinion  No  818/93  as  amended  by  ACPC  opinions  No
877/95  and  No  700/96  concerning  the  contract  fixed  an
expenditure  ceiling  of  ECU  909 500.  Subsequently,  a
restricted  call  for  tenders  was  published  on  30  October
1996  and  this  time  the  expenditure  ceiling  was  increased
to ECU 3 242 925 for a five years period. On this basis a
second  contract  was  awarded  to  the  same  company  on
11  April  1997.  The  two  contracts  together  cover
expenditure  of  at  least  ECU  4  million  over  eight  years.

26.
In  the  period  1995-1997  the  system  of  agreements
covered  a  total  of  15  projects  amounting  to  ECU  29,3
million or 25 % of the total funds allocated to the Prince
programme.  An  increased  use  of  this  mechanism  would
be  welcome  in  terms  of  value  for  money  and  would
simplify  the  administrative  management  at  Commission
level  through  a  proper  application  of  the  principles  of
subsidiarity  and  cofinancing.

Evaluation  and  inspection  activities

27.
In  the  period  covered  by  the  audit  (1995-1997)
there  were  few  DG  X  evaluations  in  the  field  of

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to 

the 

Information Policy and they were only for actions within
budget  lines  B3-301  and  B3-302.  Insufficient  attention  is
given 
implementation  of  on-the-spot  of
information  projects  and  the  follow-up  of  Commission
Offices activities. Control visits to Commission Offices by
central  departments  are  organised  within  the  framework
of  Note  No  1887  of  13  March  1995  issued  by  the
General Director of DG X in agreement with the GIS. In
the  period  1995-1997  only  four  Commission  Offices
were  visited  (1996:  Spain,  United  Kingdom;  1997:
France, Portugal).

These  circulars  are  not  precise  enough  because  the
calculation  basis  to  determine  the  financial  contribution
is  not  clearly  defined.  To  achieve  a  uniform  and  equal
treatment  of  all  applicants  the  definition  of  a  single
indispensable.  Applications  and
calculation  base 
approvals  for  the  projects  audited  were  based  sometimes
on  full  cost  accounting  (total  costs)  and  sometimes  on
direct  costing  (additional  costs  caused  by  the  project).
This  tends  to  lead  to  a  higher  contribution  rate  in  the
latter  case,  e.g.  80 %  for  the  projects  of  some  German
foundations,  compared  to  a  calculation  on  full  costs.

is 

Control  framework  for  the  Community  support

28. Through  the  period  1995-1997  the  allocation  of
financial  contributions  was  characterised  by  a  weak
contractual  framework  based  solely  on  two  Circulars
from  DG  X  issued  in  1993  and  1995.  Unit  DG  X/1  has
recently  prepared  a  vade-mecum  on  grants  which  should
be  applied  with  effect  from  1998.  Based  on  a  sample  of
projects  audited  at  both  levels  —  central  units  and
Commission Offices — the Court has identified a number
of  issues  that  would  need  to  be  taken  into  consideration
in  the  application  of  the  new  vade-mecum  on  grants.

32. The  nature  of  this  system  can  give  rise  to  a
considerable  variation 
financial
contributions. In the sample of projects audited the Court
noted 
the  period
the 
1995-1997:

fluctuations 

range  of 

following 

the 

for 

in 

(a)  in  Germany,  financial  contributions  varied  between

25 %  and  100 %  of  the  total  costs  of  projects;

(b) in Spain, financial contributions varied between 13 %

and  84 %  of  the  costs  of  projects;

(c)  in  Belgium,  financial  contributions  varied  between

9 %  and  100 %  of  the  costs  of  projects;

(d) in the United Kingdom, financial contributions varied
between  11 %  and  75 %  of  the  costs  of  projects.

29. With  few  exceptions  (Youth  projects  and  some
Prince  actions)  financial  contributions  were  given  in  the
period  1995-1997  without  a  guarantee  of  clear
transparency  through  the  application  of  a  system  of  calls
for  proposals.

Moreover,  in  none  of  the  cases  audited,  where  the
financial  contribution  rate  exceeded  the  target  ceiling  of
50 %  of  total  costs,  did  the  files  contain  a  satisfactory
justification.

30. The  DG  X  Circular  No  6268  of  13  October  1993
discouraged  the  creation  of  a  direct  dependence  of  final
beneficiaries  on  the  Commission,  but  the  Court  notes  a
few  cases  where  the  audit  revealed  support  for  the  same
beneficiaries  over  successive  years.

31. The  DG  X  Circular  No  6268  of  13  October  1993
fixed a ceiling of 50 % of the costs of the projects for the
level  of  financial  contributions.  Its  Circular  No  2074  of
financial
indicates  a 
17  March  1995 
contributions  at  three  levels:

range  of 

Type  of  grant

A

B

C

Amount

(cid:44) ECU  20 000 ECU  20 000-

(cid:46) ECU  60 000

60 000

Financial
contribution
rate (%)

(cid:44)  25

25-50

(cid:46)  50

CONCLUSION  AND  RECOMMENDATIONS

33. EU-information  policy  in  the  Member  States  is
implemented mainly by the Commission Offices. There is
insufficient  definition  of  objectives  to  be  achieved
through  the  funding  of  measures/projects  from  budget
lines  B3-300,  and  in  practical  terms  some  projects  which
information  policy
had  no  demonstrable 
activities  have  benefitted  from  financial  support.  The
creation  of  the  ‘information  plan  mechanism’  [SEC(93)
1248/3]  should  have  been  used  as  a  basic  reference
framework in order to establish a set of measures/projects
to  be  funded  from  budget  line  B3-300  (see  paragraphs
8-12).

link  with 

improved  evaluation  system 

to
34. An 
ascertain  the  effectiveness  of  Community  expenditure  in
achieving  objectives  in  relation  to  target  groups.  The
likely  future  increase  in  funding  of  information  policy
activities makes this even more necessary. There is a need

is  needed 

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for  improving  on  appraisal  methods  and  follow-up
systems  at  DG  X  headquarters  level.  The  evaluation  and
inspection  system  should  be  strengthened  by:

(a)  further  developing 

the  annual  evaluation  plan
covering  the  permanent  (B3-300,  B3-301,  B3-302)
and 
Information  Policy
(B3-306) 
the 
activities;

specific 

(d) limit the percentage of the advance to a prudent level
financial  contribution

the  amount  of 

the 

of 
approved;

(e)  fix  a  maximum  acceptable  proportion  of  overhead
costs  to  be  taken  into  consideration  (see  paragraphs
28-32).

(b) increasing the inspection of the use of DG X funds by
providing  for  an  audit  visit  to  each  Commission
Office  on  a  regular  basis  (see  paragraph  27).

35. The  information  measures  of  the  Commission  as
stipulated  in  the  annual  work  programmes  of  DG  X
failed  to  standardise:

(a)  the  application  procedure;

(b) the  project  selection  procedure;

37. Apart  from  the  partial  exception  of  the  information
networks,  there  is  a  general  lack  of  a  proper  and
systematic  set  of  rules  for  contracts  with  beneficiaries.
Future contracts should have clearer and stricter financial
provisions,  especially  regarding  two  main  areas  of
particular risk, i.e.:

(a)  the  level  of  permitted  overhead  costs;

(b) the use of actual figures rather than budget figures in

the  final  report.

(c)  the  extent  of  the  Community  contribution;

(see  paragraphs  28,  31-32).

(d) the  budget  line  to  be  charged;

(e)  the  eligibility  of  expenditure  incurred  (see  paragraphs

28-32).

In  order  both 

36.
the  management
procedures  and  to  guarantee  transparency  and  equal
treatment  of  final  beneficiaries  the  Commission  should:

simplify 

to 

(a)  increase the use  of calls for  proposals  in  the selection

of  final  beneficiaries;

(b) establish  a  standard  financial  reporting  format  for
categories  of  eligible  expenditure  to  be  used  by  the
beneficiary  for  the  final  report;

(c)  fix  rates  of  financial  contribution  for  all  projects
based  on  a  unified  calculation  basis  with  the  sole
exception  of  information  networks  funded  through  a
lump-sum  grant;

rules, 

38. The  financial  implementation  of  the  agreements
within  the  Prince  programme  needs  to  be  covered  by
strict 
level  of
expenditure  incurred  for  the  triggering  of  advances,
eligibility  periods  and  overhead  costs  (see  paragraphs
24-26).

in  particular 

regarding 

the 

39. The  Commission  Offices  should  play  a  leading  role
in  both  the  financing  of  permanent  networks  and  the
Prince  information  activities.  For  these  purposes  the
Commission  should  establish  a  policy  and  financial
planning  framework  in  order  to  define  the  overall
objectives of Information Policy, the management systems
and 
including  a
distribution  among  objectives  of  those  funds.  In  this
context,  DG  X  must  reinforce  its  internal  coordination
role 
the
Commission’s  information  and  communication  activities.

funds  available, 

to  ensure  an 

improvement 

indicative 

in  order 

the 

in 

This  report  was  adopted  by  the  Court  of  Auditors  in  Luxembourg  at  its  meeting  of  14  and  15
October  1998.

For  the  Court  of  Auditors

Bernhard  FRIEDMANN

President

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Table  1

Programming  of  Information  Appropriations

Commitments  Appropriations

(ECU  1 000)

1995

44 800
9 300
7 000
11 000

72 100

1996

1997

41 000
7 800
7 500
50 000 (1)

44 550 (2)
7 700
7 400
55 000 (3)

106 300

114 650

Payments  Appropriations

1995

33 058
5 612
4 750
530

43 950

1996

1997

40 000
10 000
7 000
50 000 (1)

42 550 (2)
6 900
6 900
45 000 (3)

107 000

101 350

Budget  Line

B3-3 0 0
B3-3 0 1
B3-3 0 2
B3-3 0 6

Budget  Line

B3-3 0 0
B3-3 0 1
B3-3 0 2
B3-3 0 6

Total

Total

(1)  Lifting  of  the  reserve  blocked  on  Budget  item  B0-40  was  made  in  two  phases:

—  ECU  23  million  on  15  May  1996
—  ECU  12  million  on  8  October  1996.

(2)  Lifting  of  the  reserve  blocked  on  Budget  item  B0-40  was  made  in  two  phases:

—  ECU  5  million  on  21  May  1997
—  ECU  6  million  on  22  July  1997.

(3)  Lifting  of  the  reserve  blocked  on  Budget  item  B0-40  was  made  in  one  instalment:

—  ECU  15  million  on  10  September  1997.

Source:  Court  of  Auditors  —  based  on  data  from  the  Commission.

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Table  2

Budgetary  execution

Commitments  Implementation

(ECU  1 000)

Budget  Line

1995

1996

1997

B3-3 0 0
B3-3 0 1
B3-3 0 2
B3-3 0 6

44 797
9 297
6 998
10 916

99,9 %
99,9 %
99,9 %
99,2 %

40 995
7 800
7 483
49 998

99,9 %
100,0 %
99,7 %
99,9 %

44 550
7 675
7 400
54 613

100,0 %
99,7 %
100,0 %
99,3 %

Total

72 008

99,8 %

106 276

99,9 %

114 238

99,6 %

Budget  Line

1995

1996

1997

Payments  Implementation

B3-3 0 0
B3-3 0 1
B3-3 0 2
B3-3 0 6

33 048
5 446
4 750
477

99,9 %
97,0 %
100,0 %
90,0 %

39 473
7 294
5 341
19 491

98,7 %
72,9 %
76,3 %
38,9 %

35 129
6 708
6 062
44 937

82,5 %
97,2 %
87,8 %
99,8 %

Total

43 721

99,5 %

71 599

66,9 %

92 836

91,6 %

Source:  Court  of  Auditors  —  based  on  data  from  the  Commission.

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Permanent  Information  Activities:  Distribution  of  Budgetary  Appropriations  between  Central  DG  X  Units
and  Commission  Offices

Table  3

1994

1995

1996

1997

Budget  Line

B3-3 0 0

B3-3 0 1

B3-3 0 0

B3-3 0 1

B3-3 0 0

B3-3 0 1

B3-3 0 0

B3-3 0 1

(ECU)

Centre

Offices

15 702 695

2 876 730

22 736 561

5 329 223

17 476 529

5 258 631

18 404 180

5 079 707

15 413 167

360 904

22 047 028

3 897 796

23 483 972

2 528 142

26 021 435

2 550 502

Not  committed

884 138

262 366

16 411

72 981

39 499

13 227

124 385

69 791

Total

32 000 000

3 500 000

44 800 000

9 300 000

41 000 000

7 800 000

44 550 000

7 700 000

Source:  Court  of  Auditors  —  based  on  data  from  the  Commission.

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Inventory  of  information  networks  (Situation  at  31  December  1997)

Table  4

Country

IPE (1)

RIPC (2)

UF (3)

ICE (4)

B

Belgium

DK

Denmark

D

EL

E

F

Germany

Greece

Spain

France

IRL

Ireland

I

L

Italy

Luxembourg

NL

Netherlands

A

P

Austria

Portugal

FIN

Finland

S

Sweden

UK

United  Kingdom

3

0

7

3

9

6

3

7

2

12

7

3

0

3

2

Total

67

(1)  Info-Points  Europe.
(2)  Rural  Information  and  Promotion  Carrefours.
(3)  Urban  Forums.
(4)  Information  Centres  on  Europe.
Source:  Court  of  Auditors  —  based  on  data  from  the  Commission.

1

2

8

5

14

12

3

15

1

3

4

6

5

10

6

95

2

1

2

1

2

2

1

2

0

1

1

1

1

1

2

20

0

0

1

0

0

1

0

0

0

0

0

1

0

0

0

3

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Table  5

Information  Centres  on  Europe:  Community  support

DG  X  grants  in  terms  of  commitments

Paris

Lisbon

Berlin

Community
support  (ECU)

Contribution
rate  (%)

Community
support  (ECU)

Contribution
rate  (%)

Community
support  (ECU)

Contribution
rate  (%)

793 480
1 390 568
1 450 000
1 445 000
1 582 000
1 666 554

50
50
50
50
50
52 (1)

550 000
550 000
750 000
600 000

50
50
50
50

170 000
199 144
280 000

82
63
42

Paris  Centre:  Community  support  (payments)  (FRF)

Community
support  (payments)

Budget
(Total  revenue)

Contribution  rate
(%)

5 236 919
9 193 557
10 325 952
11 243 289
9 255 613
13 437 682 (2)

10 710 270
20 159 651
21 014 159
22 040 278
20 775 803
26 300 273

48,89
45,60
49,13
51,01
44,54
51,09

Year

1992
1993
1994
1995
1996
1997

Year

1992
1993
1994
1995
1996
1997

Including  ECU  150 000  in  order  to  cover  an  exceptional  balancing  grant  taken  from  the  1998  appropriations.
Including  an  exceptional  balancing  grant  to  cover  the  1996  deficit  which  was  made  available  in  March  1998.

(1) 
(2) 
Source:  Court  of  Auditors  —  based  on  data  from  the  Commission.

Table  6

Conventions  between  Commission  and  Member  States

Convention  signature

Euro

Building  Europe  Together

1996

1997

B,  D,  E,  I

B,  F

B,  D,  E,  F,  IRL,  I,  A

F,  I,  NL,  P

Source:  Court  of  Auditors  —  based  on  data  from  the  Commission.

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COMMISSION’S  REPLIES

INTRODUCTION

800  relays  in  Europe,  by  concluding  agreements  on  joint
actions  with  the  Member  States  and  by  involving  civil
society  in  Union  information  campaigns.

1.
In  1993,  the  European  Commission  adopted  a  new
approach  to  its  information  and  communication  policy.
The  Directorates-General  are  responsible  for  information
relating  to  the  policies  which  they  apply.  DG  X  is
responsible  for  general  information  and  the  coordination
of  the  information  and  communication  policy.

New  technologies,  in  particular  the  Internet,  make  it
possible  to  reach  a  very  wide  public,  notably  young
people,  at  little  cost.  The  Commission  has  been  using
these  since  1995.  The  multilingual  Europa  Internet
website  is  known  for  its  quality.

A framework has been put in place in the form of several
(six  between  1993  and  1997  and  one 
in  1998)
communications  covering  the  various  aspects  of  this
policy  (general  approach,  information  plans,  role  of  the
Union Representations in the Member States, information
for  non-member  countries,  networks  and  relays,  priority
information  campaigns,  information  strategy  for  the
euro). This framework sets out the general objectives, the
management  systems  and  the  rules  to  be  applied.

institutions 

involves  the  other 

in
The  Commission 
carrying  out  this  policy  in  all  the  areas  where  it  is
possible.  It  cooperates  closely  with  Parliament.  The
Commission  regularly  sends  reports  on  cooperation  to
the  Parliament.  Joint  meetings  are  organised  with  the
Council  and 
information  and
communication policies in the Member States with a view
to  harmonising  information  campaigns.  This  ensures
external  coordination  at  European  level.

in  charge  of 

those 

Internal  coordination  within  the  Commission  has  been
tightened  considerably 
in  recent  years.  A  steering
committee  meets  regularly.  Information  plans  must
accompany  new  Community  initiatives.  An  integrated
programme  covering  the  all  aspects  of  the  information
is  drawn  up  each  year.  Groups  coordinate
policy 
information  measures  by 
families  of  Community
policies.

General  objectives  (decentralisation,  coordination,  use  of
new  medias,...)  are  set  out  in  the  legal  framework
mentioned  above.  Each  year,  the  Commission  sets  itself
specific  objectives  with  regard  to  its  information  policy.
In  1998,  priority  was  given  to  measures  relating  to
television,  direct  measures  aimed  at  the  general  public
(‘call  centres’),  measures  targeting  women  and  measures
coordinating information networks and relays throughout
Europe.

Priority  information  campaigns  have  been  set  out  in
conjunction  with  the  Parliament  as  part  of  the  Prince
programme.  They  have  helped  to  focus  information  and
resources  on  important  topical  themes  (citizens’  rights,
the  Amsterdam  Treaty,  the  Euro)  and  to  strengthen
cooperation  with  Parliament  and,  in  particular,  with
regard  to  the  Euro,  to  develop  common  information
campaigns  with  the  Member  States.

The  management  structure  has  been  reinforced  by  the
preparation  in  1997  of  a  Vade-mecum  on  grants  in  the
field  of  information  and  communication.  Action  has
already  been  taken  on  all  the  Court’s  comments  on
management since the Vade-mecum came into force on 1
January  1998.

In  a  rapidly  changing  environment,  the  Commission  has
adapted  and  continues  to  adapt  its  information  and
communication  policy  be 
in  terms  of  strategy,
organisation,  objectives  and  management.

it 

2.  a)  Since  the  reorganisation  of  DG  X  on  1  August
1997,  European  Union  Offices  in  the  Member
States  have  been  known  as  ‘Representations’.

b)  Apart from the list drawn up by the Court , three
other  types  of  relays  are  financed  by  heading
B3-301;

—  Europe  Houses  managed  by  the  International

Federation  of  Europe  Houses,

—  the  national 
Movement,

sections  of 

the  European

—  the  European  Documentation  Centres.

Decentralisation  is  one  of  the  primary  objectives  of  the
information policy. It is implemented gradually by giving
more  responsibility  to  the  Union  Representations  in  the
Member  States,  by  the  coordinated  development  of  over

5.
In  1993,  the  Commission  adopted  a  new  approach
[SEC(93)  916/9  and  (93)  1248/3]  to  the  information  and

BUDGETARY 
EXECUTION

DEVELOPMENT 

AND 

BUDGET

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communication  policy  by  giving  the  DGs  responsibility
for  sectoral  information  and  DG  X  general  information
and coordination. This approach meant decentralising the
utilisation  of  budgetary  resources 
for  Commission
information  activities,  apart  from  general  information.

On  this  basis,  an  inventory  of  resources  allocated  to
information  and  communication  started  being  produced
in  1995.  The  increase  between  1995  and  1997  is  due
mainly  to  the  Prince  programme.

In  addition  to  the  inventory,  in  1998  the  Commission
prepared  an 
information
integrated  programme  of 
measures  on  the  basis  of  a  survey  of  all  its  departments
thus  applying  an  integrated  approach  to  its  information
policy.

As  from  the  next  budget,  appropriations  provided  for
each of these measures will also be given in the integrated
programme  thereby  showing,  at  the  beginning  of  the
year,  the  commitment  appropriations  allocated  to  all
Commission  information  activities.

6. The  budgetary  authority’s  systematic  practice  since
1996 of placing in reserve appropriations for information
purposes has hampered the implementation of the budget
as
and  management 
appropriations  are  not  available  immediately  after  the
decision  to  release  the  reserve.

of  measures, 

especially 

7. The  Commission  acknowledges  that  all  general
information measures carried out by the relays should be
financed  from  one  heading.  That  will  be  the  case  from
1998  onwards.  It  could  not  be  entirely  so  in  the  past
because  the  budget  remarks  were  vague.

REGULATORY  FRAMEWORK

to 

communication 

8. Commission 
the  budgetary
authority  on  the  legal  bases  and  maximum  amounts
[SEC(94)  1106]  defines  the  general  legal  framework  of
‘Some
information  and  communication  policy: 
the 
operations are conducted by the Commission by virtue of
tasks  assigned  to  it  inherently  in  the  Treaty  as  the
institution  responsible  for  executing  Community  policies.
information  measures
This  applies 
designed to present and promote the Community’s work.
This is an area in which the Commission enjoys freedom
of  action  and  where  it  feels  that  there  is  no  need  for  a
specific legal basis’.

in  particular  to 

Since  1993,  on  that  basis,  the  Commission  has  approved
several communications (six between 1993 and 1997 and
one  in  1998)  which  set  out  the  new  approach  to  the
information 
the
management systems and the rules, which it subsequently
applied  to  activities  coming  under  the  budget  items  for
information  and  communication.

objectives, 

general 

policy, 

its 

Having found that there was a lack of coordination up to
1993,  the  Commission  decided  at  the  time  to  strengthen
that  aspect.  Machinery  was  gradually  put  in  place.
Information plans relating to Commission initiatives were
introduced  and  were  overhauled  in  1996.  The  Steering
Committee  has  met  regularly  since  it  was  set  up.  It  has
been strengthened by an annual integrated programme of
information  measures  (see  point  5)  and  the  setting  up  of
working  parties  under  the  Steering  Committee  on
Information  which  coordinates  information  measures  by
families  of  policies.

DG  X’s  new  structure  has  been  in  place  since  1  August
in  charge  of  devising
1997.  One  directorate 
is 
information 
interdepartmental
and 
activities 
coordination.  The  Representations  have  been  given  a
bigger  role 
in  on-the-ground  coordination  of  relay
networks.

In  1998,  DG  X  set  its  objectives  for  its  own

9.
information  and  communication  activities.

10  a)  Information  plans  are  documents  submitted  by
the  DGs  to  DG  X  for  approval.  They  are
produced  when  a  DG  proposes  an  initiative  to
the  Commission.  As  they  are  sectoral  initiatives,
they are not generally covered by Article B3-300
is
(General 
consistent  with  communication  SEC  (93)  916/9.

information  measures).  This 

These  information  plans  including  those  of  DG
X  are  integrated  into  an  annual  programme  (see
8)  which  will  act  as  a  link  between  them  and
Article  B3-300.

b)  The  dissemination  of  information  was  always
part  of  the  essential  role  of  the  Representations,
formerly  known  as 
‘Press  and  Information
Offices’.  The  Representation  must  adapt  the
information  to  the  sensibilities  of  the  country  in
question.  Thus  the  Representations  bring  added
value  to  the  dissemination  of  information  (for
example: 
brochures,
coordinating  information  networks  etc.).

regional 

drafting 

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The  hierarchical  structure  has  been  strengthened
as  part  of  the  DG  X  reorganisation  on  1  August
1997. Representations report to DG X and more
particularly  Directorate  X/B 
(Information
networks).  The  role  of  the  representations  is  set
out  in  communication  SEC(94)80/4.

States  and  the  various  regions  is  a  constant  concern  of
DG  X.  For  this  it  also  takes  into  account  Eurodesk
relays,  cross-border  consumer  information  and  advice
centres,  Euro  infocentres  etc.  which  come  under  other
Commission  DGs  (DG  XIII,  DG  XVI,  DG  XXII,  DG
XXIII  and  DG  XXIV).

With  regard  to  the  operational  manual  for
relays:

—  in  practice,  a  systematic  and  coherent
approach  is  already  being  taken  to  a  large
extent

—  the  manual  will  be  completed  by  the  end  of

1998.

11. The  Prince  programme  falls  within  the  information
and  communication  policy  which  does  not  need  a  legal
base  (see  point  8).  In  addition  to  the  Communication
referred  to  by  the  Court,  in  1998  the  Commission  also
approved  a  communication  on  an  information  strategy
for  the  Euro  (COM(98)  39).

RESULTS  OF  THE  AUDIT

Unclear  objectives

12. The  Commission  itself  set  out  the  objectives  in  its
communications  during  the  period  under  review  (see
points  8  and  9).

Directorate-General  X  sets  the  annual  objectives  for  its
own  activities.  Appropriations  are  approved  on  the  basis
of a draft annual programme submitted by the Units and
Representations 
closely  match  Commission
priorities.

and 

As  required  by  the  policy  of  decentralisation,  allowance
must  be  made  for  national  characteristics.  Thus:

—  In the United Kingdom, where people are in the habit
of  using  public  libraries,  the  European  information
libraries.  The
system 
Representation 
assistance,
provides 
documentation  and  training.

is  based  on 

the  180 

technical 

—  In  Germany,  information  has  been  disseminated  by
the  33  Europe  Houses  set  up  there  (one  third  of  the
Europe  Houses  of  the  IDEH  are  in  Germany).  Five
IPEs  and 
three  Carrefours  are  being  set  up.
Consolidation  of  the  networks  will  be  completed  at
the  end  of  1999.  In  all,  the  German  network  will
include  over  twelve  IPEs  and  fifteen  or  sixteen
carrefours.  It  should  be  added  that  a  number  of
applications  submitted  by  this  country  were  judged
too  weak  to  act  as  efficient  carrefours.

The  Commission  feels  that  this  provides  a  geographical
balance  (see  also  2(b)).

14. The  Commission  does  not  feel  that  a  maximum
amount  should  be  set  for  this  type  of  grant  where  the
amount  depends  on  the  budget  approved  by  the  annual
general  meetings  in  which  it  participates.

In  1998  priority  was  given  to  measures 
involving
television,  direct  measures  for  the  citizens,  measures
targeting  women  and  the  coordination  of  relays  as
against  written  publications,  colloquia,  seminars,  fairs  or
exhibitions.

15. The  Paris  Centre  is  just  one  model  among  others.
The  development  of  a  relay  network  in  a  Member  State
depends  on  several  parameters,  in  particular,  national
characteristics.  Depending  on  these  parameters,  several
models  are  envisaged.

The  Commission  agrees  that  annual  objectives  should  be
set  out  more  clearly.  The  eligibility  criteria  for  projects
have  already  been  specified  in  its  Vade-mecum  on  grants
which  entered  into  force  on  1  January  1998.

As  explained  at  points  8  and  10a),  information  plans,
including the one for DG X are integrated into an annual
programme  which  will  provide  a 
link  between
information  activities  and  Article  B3-300.

The  functioning  of  the  information  networks

Outline  of  the  system

16. The  Commission  felt  that  the  rent  weighed  too
heavily  on  the  financial  structure  of  Sources  d’Europe.
For  that  reason  it  initially  accepted  to  cover  only  one
third  of  the  rent.  In  1994,  the  rent  was  cut  and  the
Commission  decided  to  return  to  fifty-fifty  financing.

In 1997, the rent was renegotiated and a further cut was
made. The renegotiations were part of an overall plan to
relaunch  the  Centre  which  included:

—  renegotiating  the  rent,

13. Seeing that relays are established in such a way as to
ensure  a  geographical  balance  between  the  Member

—  discharge  of  the  debt  for  interest  on  arrears  in  1994
(borne  by  the  French  authorities  through  the  Caisse
des  de´pôts  et  de  consignation),

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—  discharge  of  the  deficit  accumulated  at  the  end  of

1997  (borne  by  the  Commission),

—  decision by the Caisse des  de´pôts et consignation, i.e.
the French authorities, to grant a supplementary grant
for  1998  onwards,

—  redefining  the  remit  of  the  Centre,

—  evaluating  the  measures  after  one  year.

The Commission feels that this plan is balanced from the
point  of  view  of  the  obligations  of  its  founder  members,
the  French  Government  and  the  Commission,  and  that
under  these  circumstances  it  should  clear  the  deficit
accumulated  at  the  end  of  1997.

17. Grants  are  paid  twice  a  year  by  each  parent  body.
The Commission pays its grant in January and July while
the  French  Government  should  do  so  in  April  and
October.

Information  network  agreements

18. The  main  reason  for  the  delay  in  signing  certain
agreements  was  the  evaluation  of  the  overall  policy
relating  to  relays  and  of  each  individual  relay.  Another
reason  was  the  need  to  make  an  in-depth  study  of  the
multi-financing  of  the  relays.

Agreements  relating  to  all  the  carrefours  and  urban
forums  have  been  signed.  Existing  IPEs  are  still  being
contacted, the aim being to obtain a uniform situation by
the end of 1998. An agreement must be signed before the
opening  of  any  new  Info-Point  Europe.

The  Commission  agrees  with  the  Court  that  relay
contracts  and  funding  for  them  should  be  harmonised.

19. The Representation in Germany has not disregarded
the  general  recommendations  of  the  departments  in
Brussels.  The  German  concept  provides  for  an  approach
adapted to the German political structure. Some relays in
the  Länder  act  as  regional  information  Centres  on  the
EU. This involves different measures for this type of relay
and,  with 
the
Representation and the departments in Brussels, different
procedures  from  those  applied  to  local  relays  were
adopted.  The  level  of  financing  must  be  higher  in  these
cases  and  the  rules  will  be  adjusted  accordingly.

the  agreement  of 

the  Head  of 

Commission  has  had  to  manage  it  directly  and  conclude
contracts  with  service  providers,  which  is  the  reason  for
the  100 %  financing.

20. After  a  few  attempts  at  local  level,  the  Commission
drew  up  a  strategy  for  Spain  based  on  cooperation
agreements  with  the  autonomous  regions.  The  new
IPE/Carrefours 
strategy.  The
appropriations  committed  at  the  time  for  grants  to  the
‘Disputaciones’  have  been  released.

are  part  of 

that 

The  Ghent-Antwerp  urban  forum  failed  because  the  host
agency withdrew, something for which the Commission is
not  responsible.  A  recovery  order  has  been  issued.

21. The  firm  which  was  selected  to  service  relays  in  the
United  Kingdom  was  given  responsibility  for  managing  a
Mobile  Information  Unit  for  the  period  1993-1997.  This
was  not  an  integral  part  of  the  basic  contract  and  it
explains  why  the  upper  limit  set  by  the  ACPC  was
overrun.  That  situation  has  now  been  rectified  and  since
1997 this task has been covered by the contract approved
by  the  ACPC.

By  comparison  with  the  1993  contract,  the  services
requested  in  the  new  invitation  to  tender  were  extended
to  cover  a  significantly  larger  number  of  relays  resulting
in  higher  costs.  In  1997,  the  only  tender  which  provided
all  the  services  stipulated  and  which  complied  with  the
criteria  in  the  invitation  to  tender  was  submitted  by  the
contractor  selected.

The Commission feels that given the range of the tasks to
be  performed  by  the  contractor,  the  amount  of  the
contract, which was awarded in response to an invitation
to  tender  carried  out  in  good  and  due  form,  was
justifiable.

22. The contractor’s tasks related mainly to logistics and
the  implementation  of  an  information  action.  The  fact
that  they  are  permanent,  which  is  because  the  relay
network  is  a  permanent  structure,  does  not  mean  that
they  should  be  carried  out  by  the  Representation.  The
contractor  brings  his  expertise  and  experience  to  tasks
such as locating conference halls, sending out invitations,
managing  exhibition  stands,  the  logistics  of  the  Mobile
Information  Centre  etc.  which  are  all  suited  to  being
farmed  out.

The  Bonn  Info-Point  plays  a  key  role  in  covering  the
federal  capital  of  Germany,  which  has  now  become
Berlin.  So  far  it  has  not  been  possible  to  identify  a
partner  for  this  relay.  Thus,  given  its  importance,  the

The  Representation  has  tightened  up  management  of  the
contract  by  including  a  series  of  measures  including
detailed  monthly  reporting.

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At  this  juncture,  the  Commission  thus  feels  that  the
contract  is  relevant  and  justifiable  on  cost/efficiency
grounds.  It  is,  however,  prepared  to  review  it  carefully.

23.
For  several  financial  years,  every  new  contract  has
been  based  on  the  provisions  of  the  ACPC  Vade-mecum
and  the  standard  Commission  contract.  Special  attention
for  making
the  necessary  conditions 
is  paid 
payments.

to 

Evaluation  and  inspection  activities

27. Since  1993,  DG  X  has  the  means  to  check  the
impact  of  its  information  measures.  Following  a  tender
procedure,  ten  standard  form  general  contracts  were
signed  with  external  firms  specialising  in  evaluation.

Evaluation of the information policy is part of the general
evaluation  plan  of  DG  X.  The  headings  evaluated  are
B3-300,  B3-301,  B3-303  and  B3-306.  The  following
areas  were  evaluated  during  the  period  covered  by  the
Court’s  audit:

—  promotional material,

—  relays,

—  Contact Magazine,

—  Information  in  four  regions  of  the  World.

inventory  of  the 

An 
information  activities  of  the
Representations  in  1994,  1995  and  1996  has  been
transmitted  to  the  European  Parliament.

The  following  are  planned  from  1998  onwards:

—  Europe  by  satellite,

—  Network  of  lecturers,

—  Introduction  of  a  permanent  relay  evaluation  system,

—  Priority  information  campaigns.

The  Commission  (DG  X)  is  redefining  its  policy  relating
to  checks  on  beneficiaries  and  projects.  It  is  envisaging
checks  at  three  levels:

1.  ordinary  checks  on  files  with  certified  balance  sheet;

2.  for  measures  presenting  risks  or  involving  large
amounts  and  samples  of  other  measures,  checks  on
some  of  the  documents;

the  methodology 

In  1998, 
inspections  of
Representations  was  jointly  updated  by  the  IGS  and  DG
X.  Henceforth,  inspections  will  be  carried  out  on  that
basis.  The  Commission  is  studying  the  possibility  of
increasing  the  number  of  financial  audits.

for 

Control  framework  for  Community  support

28. For  years,  beneficiaries  of  financial  contributions
signed  a  declaration  listing  all  their  obligations  vis-à-vis
the  Commission 
right  of
inspection) to indicate that they were in agreement. From
1995 to 1997, this declaration constituted the contractual
framework.

the  Court’s 

(including 

In 1997, DG X prepared a Vade-mecum on grants. Since
the  entry  into  force  of  the  Vade-mecum  on  1  January
1998,  every  financial  contribution  is  covered  by  a
financing  agreement  signed  by  both  parties.

29. The  Commission  has  gradually  made  calls  for
proposals  for  financial  contributions  in  the  areas  for
which  it  is  responsible  (Culture,  Audiovisual  media,
Information).  The  aim  of  Circular  2074  (from  DG  X)  of
17  March  1995  was  to  extend  calls  for  proposals  to
Information.  Here,  the  Vade-mecum  in  force  makes
provision  for  general  calls  for  proposals  with  the
exception  of  a  few  specific  clearly  identified  and  duly
substantiated  situations.

30. The  Commission  agrees  with  the  Court  that  the
same  beneficiary 
for
should  not 
information  and  communication  measures  repeatedly.
This  principle  does  not  apply  to  Information  Relays.  On
the contrary, the Commission is looking for bodies which
could  relay  information  on  the  European  Union  for
several years.

receive  grants 

31. The  aim  of  Circular  No  2074  of  17  March  1995
was not to widen the band within which the upper limits
on  financial  contribution  rates  can  fluctuate  but  to
specify  how  the  system  applied  (on  the  basis  of  the
amount  and  financing  rate,  definitions  of  cost/efficiency
criteria  and  delegating  the  power  to  sign).

Up  to  the  entry  into  force  of  the  Vade-mecum  on  1
January  1998,  the  base  for  calculating  the  upper  limit
could  vary.  For  that  reason  the  base  has  been  clearly
defined  in  the  Vade-mecum.

3.  in  the  event  of  irregularities,  on-the-spot  inspections.

32. Moreover, as stated above, the allocation system has
been specified in the Vade-mecum which came into force

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on  1  January  1998.  Nevertheless  the  Commission  feels
that  there  could  be  grounds  for  some  fluctuation  in
financing  rates,  which  could  exceed  50 %.

The  general  rule  setting  50 %  as  the  upper  limit  for
financing  the  cost  of  the  project  is  widely  applied.  In
1997,  90 %  of  the  grants  under  Article  B3-300  were
within  this  limit.

With  regard  to  measures  under  the  Prince  programme
and,  in  particular,  those  relating  to  the  euro  and  given
the  priority  status  of  the  Programme  and  the  Union’s
desire,  initially  at  least,  to  provide  an  incentive,  the
selection bodies in some cases authorised a financing rate
in  excess  of  50 %.

CONCLUSION  AND  RECOMMENDATIONS

33. The  general  objectives  of  the  information  policy
have  been  set  out  by  the  Commission 
in  several
communications (six between 1993 and 1997, and one in
1998).

Directorate-General  X  sets  out  the  annual  objectives  for
its  own  activities.  Appropriations  are  approved  on  the
basis  of  a  draft  annual  programme  submitted  by  the
Units and Representations and closely match Commission
priorities.

The  Commission  agrees  that  it  could  define  annual
objectives  more  clearly.

Eligibility  criteria 
its
Vade-mecum  on  grants,  which  entered  into  force  on  1
January  1998.

for  projects  are  set  out 

in 

Information  plans  including  the  one  for  DG  X,  have
already been integrated into an annual programme which
will  be  developed  to  form  a  link  between  information
activities  and  Article  B3-300.

34.  a)  The  Commission  will  beef  up 

its  existing
evaluation  plan.  For  that  purpose  it  set  up  an
it  was
evaluation  section 
reorganised  on  1  August  1997;

in  DG  X  when 

b)  Inspections  of 

the  Representations  already
carried  out  by  DG  X  and  the  IGS  will  be
continued.  The  methodology  is  currently  being
updated.  DG  X  is  considering  the  possibility  of
increasing  the  number  of  financial  audits.

35. DG  X  has  standardised  points  a),  b),  c)  and  e)  by
producing a Vade-mecum  on  grants  in  1997  which  came
into  force  on  1  January  1998.  The  choice  of  budgetary
heading (point d)) is dictated by the budget voted and the
associated remarks.

36. All  the  Court’s  comments  on  transparency  and
procedures  have  been  put  into  effect  by  the  Commission
since  the  entry  into  force  of  DG  X’s  Vade-mecum  on
grants  on  1  January  1998.

37. All 
the  Court’s  comments  on  contracts  with
beneficiaries have been in effect since the entry into force
of  DG  X’s  Vade-mecum  on  grants  on  1  January  1998.

38. All  the  Court’s  comments  are  covered  by  the
Vade-mecum  on  grants  which  entered  into  force  on  1
January  1998  and  which  also  applies  to  the  Prince
programme.

39. The Representations already play an essential role in
the  implementation  of  the  relay  networks  and  the  Prince
programme 
the  ground,
(coordinating  activities  on 
managing  information  for  the  relays,  monitoring  Prince
agreements  with  the  Member  States).  For  the  sake  of
efficient  management,  in  particular,  during  the  start-up
period  of  these  two  measures,  the  Commission  has
preferred  to  keep  management  of  the  appropriations  at
central  level  at  this  stage.

There  is  a  regulatory  framework  for  information  and
communication  measures.  It  was  established  in  several
communications (six between 1993 and 1997 and one in
1998).  The  Commission 
intends  to  tighten  up  the
implementation  of  the  planned  measures  and  where
necessary  to  lay  down  new  ones.  DG  X,  which  has  set
annual  objectives 
including  financial  objectives,  has
already significantly stepped up coordination between the
Directorates-General  as  recommended  by  the  Court  by
putting  in  place  an  integrated  annual  programme  of
Commission  information  measures.