Council Act of 4 October 1999 adopting the Financial Regulation applicable to the budget of Europol and repealing Council Act 1999/C 25/01
Date: 1999-10-04
Institutions: Council of the European Union
Subjects: Europol, budget, budgetary expenditure, financial control, financial regulation, implementation of the budget

29.10.1999

EN

Official Journal of the European Communities

C 312/1

(Acts adopted pursuant to Title VI of the Treaty on European Union)

COUNCIL ACT

of 4 October 1999

adopting the Financial Regulation applicable to the budget of Europol and repealing Council Act
1999/C 25/01

(1999/C 312/01)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Convention on the establishment of
a European Police Office (Europol Convention) (1), and,
in
particular, Article 35(9) and Article 36(6) thereof,

Having regard to the opinion of the Management Board,

Having regard to the opinion of the Joint Audit Committee,

Whereas:

apply to the Europol budget, clear objectives for planned
activities must be identified in the annual budgets and
business plans, progress of their realisation monitored and,
if necessary, any further action taken to achieve them.

(2) The Financial Regulation adopted under this Act may not
be applied in a way that would endanger the independence
of the Joint Supervisory Body mentioned in Article 24 of
the Europol Convention.

(3) Council Act 1999/C 25/01 of 18 January 1999 adopting
the Financial Regulation applicable to the budget of
Europol (2) should therefore be repealed,

(1) The principles of sound financial management and,

in
particular, those of economy and cost-effectiveness must

HAS ADOPTED THIS FINANCIAL REGULATION:

(1) OJ C 316, 27.11.1995, p. 1.

(2) OJ C 25, 30.1.1999, p. 1.

C 312/2

EN

Official Journal of the European Communities

29.10.1999

CONTENTS

PREAMBLE

TITLE I

General principles (Articles 1 to 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE II

Establishment and structure of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section I

Establishment of the budget (Articles 13 and 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section II

Structure of the budget (Article 15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section III

Changes to the budget (Articles 16 and 17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE III

Implementation of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section I

General provisions (Articles 18 to 24)

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

Section II

Handling of revenue and expenditure (Articles 25 to 36) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section III

Member States’ contributions (Articles 37 to 40) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section IV

Conclusion of contracts and inventory (Articles 41 to 46) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section V

Accountancy (Articles 47 and 48) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section VI

the Accounting Officer, Administrators of
Responsibilities of Authorising Officers,
imprest accounts and the Financial Controller (Article 49) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE IV

Presenting and auditing the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section I

Presenting the accounts (Articles 50 and 51)

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

Section II

Auditing the accounts (Articles 52 to 55)

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

Page

3

5

5

6

6

7

7

8

11

12

13

14

15

15

15

TITLE V

Final provisions (Articles 56 to 59) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

29.10.1999

EN

Official Journal of the European Communities

C 312/3

TITLE I

GENERAL PRINCIPLES

Article 1

— revenue from third parties in respect of work carried out

at their requests.

1.
The budget of Europol (hereinafter called ‘the budget’)
shall be the instrument which provides for the estimated
revenue and expenditure of Europol for each financial year.
For both revenue and expenditure, it shall contain separate
headings for activities financed by third parties.

The five-year financing plan of Europol (hereinafter called ‘the
financing plan’) shall stipulate the revenue and expenditure of
Europol for the financial year which the draft budget concerns
and the following four financial years.

2.
Subject to the provision of Article 22 and with the
exception of activities financed by third parties, expenditure
may not be authorised for a period extending beyond the
financial year.

Such contributions must be authorised by the Management
Board, acting unanimously, in accordance with one of the
following procedures:

— Contributions from third parties shall be authorised both
at the time of the adoption of the budget and in the course
of the financial year.

— Donations made to Europol, including gifts and bequests,
may be accepted provided that these are consistent with
the policies, aims and activities of Europol as established
in the Europol Convention.

Article 4

3.

Expenditure arising from:

— contracts which have been concluded, in accordance with

local usage, or

— contractual provisions relating, in particular, to the supply

of equipment,

No revenue shall be collected and no expenditure effected
1.
unless credited to, or charged against, an Article in the budget.

Without prejudice to Article 22, no expenditure may be
committed or authorised in excess of the authorised appropri-
ations.

for periods extending beyond the financial year shall be
charged against the budget for the financial year in which it is
effected.

2.
The establishment plan adopted pursuant to Articles 13
and 14 shall constitute an absolute limit for Europol; no
appointment may be made in excess of the limit set.

Article 2

Instances of part-time work may be compensated for by the
engagement of other staff within the limits set.

The budget appropriations shall be used in accordance with
the principles of sound financial management, and in particular
those of economy and cost-effectiveness. Quantified objectives
shall be identified and the progress of their realisation moni-
tored.

Article 3

1.
Subject to Article 22, all revenue and expenditure shall
be entered in full in the budget and in the accounts without
any adjustment against each other.

2.

Total revenue shall cover total expenditure.

Article 5

1.
The
31 December.

financial year

shall

run from 1 January to

2.
Revenue shall be entered in the accounts for each
financial year on the basis both of the amounts due and the
amounts collected.

Notwithstanding the first subparagraph, Member States’ contri-
butions to the budget received before the beginning of the
financial year which they concern shall be credited to the
budget for that financial year.

Notwithstanding paragraph 2, certain revenue shall not

3.
be used for any other purpose, notably:

— revenue earmarked for a specific purpose, such as income

from foundations, subsidies, gifts and bequest,

and

3. With the exception of activities financed by third parties,
the allotted appropriations may be used solely to cover
expenditure properly entered into and paid under the financial
year for which they were granted, save as otherwise provided
in Article 6, and to cover the debts relating to preceding
financial years for which no appropriation was carried forward.

C 312/4

EN

Official Journal of the European Communities

29.10.1999

The expenditure of a financial year shall be entered in the
accounts for that year on the basis of expenditure authorised
no later than 31 December, and for which the corresponding
payments are effected before the following 15 January.

Expenditure relating to rents or certain associated expenditure
which is payable in advance in accordance with provisions laid
down by law or contracts may give rise to payments from
20 December onwards being charged to the appropriations
for the next financial year.

Article 6

The following rules shall govern the utilisation of

1.
appropriations:

(a) appropriations still uncommitted at the end of the financial
year for which they were entered shall, as a rule, lapse;

(b) appropriations relating to remuneration and allowances of

staff may not be carried over;

(c) appropriations in respect of payments still outstanding at
31 December by virtue of commitments duly entered into
between 1 January and 31 December shall be carried over
automatically to the next financial year only.

2.
Notwithstanding paragraph 1, the Director may forward
to the Management Board, before 31 January, duly substan-
tiated requests to carry over to the next
financial year
appropriations not committed at 31 December.

The carry-over of such appropriations may be proposed only
for exceptional reasons.

The Management Board shall act on such requests for carry-
over by 1 March at the latest. It shall act unanimously.

3.
Unused revenue and appropriations still available on
31 December, arising out of the donations and work carried
out on behalf of third parties shall be carried over automati-
cally.

Appropriations carried over from one financial year to
4.
the following lapse if still uncommitted at the end of the
financial year to which they were carried over.

A list of

5.
the appropriations to be carried forward
automatically shall be forwarded to the Management Board
for information before 1 March.

Article 8

1.
If the budget is not adopted at the beginning of the
financial year, expenditure already approved in principle in the
last budget duly adopted may be effected under the conditions
laid down in this Article. An item of expenditure shall be
considered as having been approved in principle in the last
budget duly adopted if it could have been charged to a specific
budget heading under the financial year concerned.

2.
Payments may be made monthly in respect of any
chapter up to one-twelfth of the total appropriations entered
in the chapter in question for the preceding financial year in
so far as this is required to meet Europol’s legal obligations.

3.
At the request of the Director, the Management Board
may, in the light of administrative needs, authorise two or
more provisional twelfths at the same time or, in exceptional
cases, payments not required to meet Europol’s legal obli-
gations. In doing so it shall act unanimously.

4.
Under the circumstances referred to in paragraph 1,
Member States’ contributions amounting to three twelfths of
the contributions called up according to the last budget duly
adopted may be called up.

6.
For the purpose of implementing the budget, the utilis-
ation of appropriations carried forward shall be shown separ-
ately, for each budget item, in the accounts for the current
financial year.

5.
At the request of the Director, and after obtaining the
opinion of the Management Board, the Council may, in the
light of financial needs, authorise further Member States’
contributions to be called up.
In doing so it shall act
unanimously.

Article 7

Current expenditure chargeable to the next financial year and
which, by its nature, arises at the beginning of that financial
year may, as from 15 November of each year, be charged as
an expected commitment against the appropriations provided
for in respect of the next financial year up to a maximum of
one quarter of the total corresponding appropriations for the
current year. However, such commitments may only apply to
new expenditure of a kind not yet approved in principle in the
budget of the current financial year if the budget for the next
financial year has already been adopted.

Article 9

The budget and any supplementary or amending budgets, as
adopted, shall be published in the Official Journal of the European
Communities, at the behest of the President of the Council.
Publication shall normally take place within one month from
the date of the adoption.

29.10.1999

EN

Official Journal of the European Communities

C 312/5

Article 10

The budget and the financing plan shall be drawn up in
1.
euro. The euro shall be the single currency as laid down in
Council Regulation (EC) No 974/98 of 3 May 1998 on the
introduction of the euro (1).

Any future amendment to that Regulation shall apply to this
provision.

Any operations involving conversion of euro into a
2.
currency of a Member State not participating in the monetary
union and currencies of third countries shall, in principle, be
effected on the basis of the exchange rate applicable on the
day of operation; derogations from this principle may be
in accordance with the
permitted in exceptional cases,
implementing rules provided for in Article 57(2).

Article 11

1.
On the basis of a review of the existing business plan,
the Director shall each year draw up a draft business plan
setting out the planned activities and developments for Europol
for the following five years. As an integral part of the business
plan, the financing plan shall describe the financial and human
resources deemed necessary for the proposed yearly activities.

2.
The draft business plan shall be submitted to the
Management Board which, after obtaining the opinion of the
Financial Committee, shall take a decision on it. The Mange-
ment Board shall act unanimously.

Article 12

1.

A Financial Committee is hereby established.

The composition of the Financial Committee shall be as
2.
defined in Article 35(8) of
the Europol Convention. The
committee shall be chaired by a representative of the Member
State holding the Presidency of the Council.

3.
The tasks of the Financial Committee shall be as defined
in Article 35 of the Europol Convention and in this Regulation.

Furthermore, the committee shall undertake such tasks con-
cerning budgetary and financial matters which the Manage-
ment Board or the Council refer to it.

In carrying out its tasks, the committee shall in particular
examine whether the principles set out in Article 2 are being
duly adhered to.

The committee may require the Director to furnish it
4.
with any information or evidence it considers necessary
concerning budgetary and financial matters for the supervision
of which it is responsible.

TITLE II

ESTABLISHMENT AND STRUCTURE OF THE BUDGET

SECTION I

(a) a general policy declaration on the objectives to be

achieved with the budget;

Establishment of the budget

Article 13

The director shall forward to the Management Board and the
Financial Committee, by 15 February at the latest, a draft
estimate of Europol’s revenue and expenditure for the coming
year. The budget shall be adopted, and the financing plan
decided on,
in accordance with Article 35 of the Europol
Convention.

(b) a description of the activities for which the appropriations
are requested, taking account of the principles set out
in Article 2 and the business plan as provided for in
Article 11;

(c) a description of the assumptions and the rate for conver-
sion between the euro and the various national currencies
of the non-participating Member States and currencies of
third countries on which the drafts are based;

Article 14

(d) an explanation of the changes in appropriations from one

financial year to the next.

The draft budget and the draft financing plan shall be

1.
accompanied by explanatory notes containing in particular:

(1) OJ L 139, 11.5.1998, p. 1.

In respect of staff, the draft budget shall further be
2.
accompanied by a working document containing the following
information:

C 312/6

EN

Official Journal of the European Communities

29.10.1999

(a) for each category of staff, a detailed list of budgetary posts
and numbers of persons in post on the date of the
submission of the draft budget, indicating their distribution
by grade and administrative unit;

2.
‘Draft supplementary budget’ means any proposal which
would either increase the total amount of appropriations or
finance one or more new activities without increasing the total
amount of appropriations.

(b) where a change in the number of persons is proposed, a

statement justifying such changes.

SECTION II

Structure of the budget

Article 15

The budget shall be subdivided into titles, chapters, articles
and items according to the nature of the revenue or expenditure
or the intended purpose thereof, following a decimal classifi-
cation system.

The budget shall contain separate headings for activities
financed by third parties. It shall show:

(a) as regards the statement of revenue:

— the revenue for the financial year in question,

— the revenue entered for the preceding financial year
and the revenue established for the last financial year
for which accounts have been closed,

— appropriate remarks on each revenue heading;

(b) as regards the statement of expenditure:

— the appropriations made available for the financial year
in question, divided into titles, chapters, articles and
items,

— the appropriations made available for the preceding
financial year for which the accounts have been closed,
increased by the amounts carried forward, using the
same classification,

— appropriate remarks on each subdivision; such remarks
may include financial information in relation to pro-
jects within Europol’s working programme, services
provided for third parties, the participation of third
parties in Europol’s activities.

SECTION III

Changes to the budget

Article 16

‘Draft amending budget’ means any proposal which would
involve amendments to the budget of a financial or technical
nature, without causing an increase in the total amount of
appropriations and without providing for new activities.

3.
Draft supplementary and/or amending budgets shall be
submitted, examined and adopted in the same form and using
the same procedure as the budget whose estimates they are
amending.

Supplementary and/or amending budgets shall be adopt-
4.
ed in accordance with the procedure laid down in Article 35
of the Europol Convention.

Article 17

During the last four months of the financial year the

1.
Director may transfer:

— a maximum of 25 % of the total appropriations within

each chapter,

— appropriations between chapters within the same title in
order to increase the total sum of appropriations within
any chapter by no more than 25 %.

The Director shall inform the Management Board three weeks
before making such transfers.

The Director may propose transfers of appropriations

2.
other than those provided for in paragraph 1.

The Management Board shall take a decision on such proposals
for transfers. It shall act unanimously.

In the event of unavoidable, exceptional or unforeseen
1.
circumstances, the Director may submit draft supplementary
and/or amending budgets.

Notwithstanding paragraph 2, no appropriations can
3.
be transferred to or from the title concerning personnel
expenditure.

29.10.1999

EN

Official Journal of the European Communities

C 312/7

TITLE III

IMPLEMENTATION OF THE BUDGET

SECTION I

General provisions

Article 18

The budget shall be implemented in accordance with the
principle that the Authorising Officers, Accounting Officers
and Financial Controller are different individuals.

The appropriations shall be administered by the Authorising
Officer who alone is empowered to enter into commitments
regarding expenditure, establish entitlements to be collected
and issue recovery orders and payment orders. The operations
of collection and payment shall be carried out by the
accounting officer.

The Financial Controller may be assisted in his duties or
temporarily replaced by one or more Assistant Financial
Controllers also to be appointed in accordance with
Article 35(7) of the Europol Convention.

In carrying out his duties, the Financial Controller shall

2.
be accountable solely to the Management Board.

The Financial Controller shall be responsible for the

3.
monitoring of:

— the commitment of all expenditure,

— the disbursement of all expenditure,

The duties of Authorising Officer, Accounting Officer and
Financial Controller shall be mutually incompatible.

— all revenue.

Article 19

In accordance with Article 29(3) of the Europol Conven-
1.
tion, the Director, being accountable to the Council, shall
implement the budget on his own responsibility in accordance
with this Regulation and within the limits of the appropriations
allotted.

The Director may delegate his powers under conditions to be
laid down by him and within the limits set by the act of
delegation, which shall be communicated to the empowered
person, the Accounting Officer, the Financial Controller, the
Management Board and the joint Audit Committee.

2.
Every three months the Director shall report to the
Management Board and the Financial Committee on the
implementation of the budget.

3. With the prior concurrence of the Management Board,
the Director may, if necessary, enter into commitments for
future financial periods provided that such commitments relate
to work authorised in the current budget and concern:

(a) administrative requirements of a continuing nature;

(b) contracts where longer lead times are required,

or

(c) purchase for which payment is to be made over several

years.

Article 20

By way of derogation from Article 25(2), Article 26(2) and (4),
Article 27(2), Article 29(3) and Article 34(2) of this Regu-
lation, and in accordance with Article 35(7) of the Europol
Convention,
in
Article 57(2) of this Regulation may make provision for ex-post
monitoring by the Financial Controller in the case of minor
items of income or expenditure.

rules provided for

implementing

the

4.
Furthermore, the Financial Controller shall review, evalu-
ate and report on the soundness, adequacy and application of
systems, procedures and related internal controls.

Reports on each separate inspection, evaluation and investi-
gation shall be submitted to the Director and to the Manage-
ment Board. The Director shall notify the Management Board
of the measures to be taken following each report.

5.
For each financial year the Financial Controller shall
submit a report to the Management Board and the Joint Audit
Committee on the internal supervision activities for that year.

Article 21

The receipt of revenue and the discharge of expenditure shall
be carried out by an Accounting Officer appointed by and
being responsible to the Director. Subject to Article 32(2), the
Accounting Officer shall be the only person empowered to
manage funds and assets. He shall be responsible for their
safekeeping.

A Financial Controller shall be appointed in accordance

1.
with Article 35(7) of the Europol Convention.

The Accounting Officer may be assisted in his tasks by one or
more Assistant Accounting Officers appointed under the same
conditions as the Accounting Officer.

C 312/8

EN

Official Journal of the European Communities

29.10.1999

Article 22

Article 23

Notwithstanding Article 3(1) and Article 4(1):

(a) the following deductions may be made from all bills,
invoices or statements, which shall then be passed for
payment of the net amount:

— fines imposed on a party to a contract on an accepted

tender,

— adjustment of amounts paid in error, which may be
achieved by means of deduction beforehand when
another validation of the same type is being effected
under the chapter, Article and financial year in respect
of which the excess payment was made,

— the value of vehicles, apparatus, equipment and instal-
lations taken in part exchange in accordance with
commercial usage upon purchase of new vehicles,
apparatus, equipment and installation of the same
kind.

Discounts, refunds and rebates on invoices and bills shall
not be recorded as separate revenue;

(b) the following sums may be re-used under the heading to

which the initial expenditure was charged:

— revenue arising from refund of amounts paid in error

against appropriations entered in the budget,

— proceeds from supply of goods and services to other
institutions or bodies,
including refunds by such
institutions of mission allowances paid on their behalf,

— insurance payments received,

— refund of

taxes incorporated in the price of

the

products or services provided to Europol,

The balance from each financial year shall be entered in the
budget for the second financial year following the financial
year from which it derives in accordance with Article 40(2).

Article 24

Where revenue and expenditure operations are managed by
means of integrated computer systems, the provisions of
Section II of this Title and Title IV shall apply with due
allowance for the possibilities and requirements deriving from
computerised management. To this end:

— the supporting documents may remain with the Authoris-
ing Officer or the Accounting Officer for the purposes of
checking,

— signatures and approvals may be added in appropriate

computerised form.

The conditions for implementing this Article shall be deter-
mined by implementing rules provided for in Article 57(2).

SECTION II

Handling of revenue and expenditure

Article 25

1.
Any measure or situation which may give rise to, or
modify, a debt due to Europol must be preceded by a debt
forecast from the Authorising Officer. Such forecast shall
mention, in particular, the type of revenue and the budget
item to which it is to be booked and also, as far as possible,
the estimated amount and the name and description of the
debtor.

— proceeds from the sale of vehicles, apparatus, equip-
ment and installations which are being replaced or
scrapped.

2.
Debt forecasts shall be forwarded to the Accounting
Officer who shall submit them to the Financial Controller for
approval.

Sums must be re-used before the end of the financial year
following that in which the revenue was collected.

The purpose of this approval shall be to establish that:

(a) the revenue is charged to the correct item;

The chart of accounts as provided for in Article 48 shall
include suspense accounts to record re-use operations for
both revenue and expenditure;

(c) adjustments may be made in respect of exchange differ-
ences occurring in budget operations, and in respect of
debtor and creditor interest rates relating to cash oper-
ations. Only the final gain or loss shall be included in the
balance for the year.

(b) the forecast is in order and conforms to the relevant
provisions, in particular of the budget and of the rules
applying to Europol and also of all acts made in implemen-
tation of such rules, and to the principles of sound financial
management referred to in Article 2.

The approved debt forecasts shall be registered provision-

3.
ally by the Accounting Officer.

29.10.1999

EN

Official Journal of the European Communities

C 312/9

Article 26

A provisional commitment may be entered into for current
expenditure.

For the collection of any amounts owing to Europol the
1.
issue of a recovery order by the Authorising Officer shall be
required.

2.
Recovery orders shall be forwarded to the Accounting
Officer, who shall submit them to the Financial Controller for
approval.

The purpose of this approval shall be to establish that:

(a) the revenue has been charged to the correct item;

(b) the recovery order is in order and conforms to the relevant

provisions;

(c) the supporting documents are in order;

(d) the debtor is correctly described;

(e) the due date is indicated;

(f)

the principles of sound financial management referred to
in Article 2 have been applied;

(g) the amount and currency of the sum to be recovered are

correct.

The Accounting Officer shall assume responsibility for

3.
the recovery orders duly drawn up.

He shall exercise all due diligence to ensure that payment of
the revenue of Europol is made at the proper time and that the
rights of Europol are preserved.

4.
If the Authorising Officer waives the right to recover an
established debt, he shall first forward a proposal for cancel-
lation to the Accounting Officer, who shall submit it to the
Financial Controller for approval.

The Financial Controller’s approval shall serve to certify that
the waiver is in order and conforms with the principles of
sound financial management referred to in Article 2.

Article 27

1.
Any measure likely to involve expenditure against the
current or any subsequent budget must first be the subject of
a proposal
for a commitment of expenditure from the
Authorising Officer. Without prejudice to Article 20(3) he may
not enter into legal commitments vis-à-vis third parties until
the Financial Controller has given his approval.

2.
Proposals for commitment shall be forwarded to the
Accounting Officer, who shall submit them to the Financial
Controller for approval.

The purpose of this approval shall be to establish that:

(a) the proposal

for commitment has been presented in

accordance with paragraph 1;

(b) the expenditure has been correctly charged;

(c) the appropriations are available;

(d) the expenditure is in order and conforms to the relevant
provisions,
the budget and the rules
applying to Europol, and of all acts made in implemen-
tation of these rules;

in particular of

(e) the principles of sound financial management referred to

in Article 2 have been applied.

3.

Approval may not be conditional.

The Accounting Officer shall register the approved

4.
proposal for commitment.

Article 28

The purpose of validation of expenditure by the Author-

1.
ising Officer shall be:

(a) to verify the creditor’s claim;

(b) to determine or verify the existence and the amount of the

sum due;

(c) to verify the conditions under which the payment falls due;

(d) to verify that goods have been delivered or services

rendered as ordered.

Validation of any expenditure shall be subject to the
2.
submission of supporting documents showing the creditor’s
rights.

The Authorising Officer and another member of staff shall
carry out and sign for the verification referred to in para-
graph 1(d).

The Authorising Officer may have the verifications carried out
under his responsibility.

Proposals shall show the purpose of the expenditure, the
estimated amount involved, the budget item to which the
expense is to be charged and the creditor.

3.
Salaries, wages, emoluments and allowances shall be
validated in accordance with a collective statement drawn
up by the Personnel Department, except where individual
validation is necessary.

C 312/10

EN

Official Journal of the European Communities

29.10.1999

Article 29

Article 30

Authorisation shall be the act whereby the Authorising
1.
Officer, by the issue of a payment order, authorises the
Accounting Officer to pay an item of expenditure which has
been validated.

For payment by instalments, the first payment order shall be
accompanied by documents establishing the creditor’s claim
to payment of the instalment in question. Subsequent payment
orders shall refer to the supporting documents already furni-
shed and repeat reference number of the first payment order.

2.

Payment orders shall state:

— the financial year against which the payment shall be

charged,

— the budget article and any other subdivision that may

apply,

Article 31

Payment shall be the final act whereby Europol

1.
discharged of its obligations towards its creditors.

is

— the amount of the sum to be paid (in figures and words)

and the currency,

Payment shall be made by the Accounting Officer within the
limits of the funds available.

— the name and address of the payee,

— the purpose of the expenditure,

— the method of payment, wherever possible,

— the numbers and dates of

the relevant approvals of

commitment.

Payment orders shall be accompanied by the original support-
ing documents or, in exceptional circumstances, by certified
true copies. The documents shall bear or be accompanied by a
statement certifying the correctness of the amounts to be paid,
the receipt of the supplies and the performance of the service
and, if appropriate, the entry of the goods in the inventory
referred to in Article 45.

The payment order shall be dated and signed by the Authoris-
ing Officer.

3.
Payment orders shall be forwarded to the Accounting
Officer, who shall submit them to the Financial Controller for
approval.

The purpose of this approval shall be to establish that:

(a) the payment order was properly issued;

In the event of a substantive error or of the validity of the
discharge being contested or of failure to observe the formaliti-
es prescribed by this Regulation, the Accounting Officer shall
suspend payment.

If payment is suspended, the Accounting Officer shall
2.
give the reasons therefor in a written statement which he shall
forward to the Authorising Officer and, for information, to the
Financial Controller.

Article 32

Payments shall be effected as a general rule through a

1.
bank account or post office giro account.

The Director shall establish such bank accounts and post office
giro accounts in Europol’s name. In designating such banks or
other financial institutions, the Director shall have regard for
the security of Europol’s cash assets. In particular, the Director
shall select only banks or institutions that have a high credit
rating in the financial community. The procedure for opening,
administering and using these accounts shall be laid down in
the implementing rules provided for in Article 57(2).

(b) the payment order agrees with the commitment of expen-
diture and that the amount thereof is correct, taking
account of the principles of sound financial management
referred to in Article 2;

2.
Cheques and post office giro or bank transfer orders
shall require the joint signature of two officials authorised by
the Director, one signature necessarily being that of
the
Accounting Officer, an Assistant Accounting Officer or an
Administrator of an imprest account.

(c) the expenditure is charged to the correct item;

(d) the appropriations are available;

(e) the supporting documents are in order;

(f)

the payee is correctly named and described.

Article 33

imprest
For payment of certain categories of expenditure,
accounts may be set up in accordance with the implementing
rules provided for in Article 57(2).

After approval,

the payment order,
the original of
4.
together with the supporting documents, shall be forwarded
to the Accounting Officers.

Only the Accounting Officer may replenish the imprest
accounts, save in exceptional cases defined in the implementing
rules provided for in Article 57(2).

29.10.1999

EN

Official Journal of the European Communities

C 312/11

These rules shall contain specific provisions concerning in
particular:

— the appointment of Administrators of imprest accounts,

— the nature and maximum amount of each item of expendi-

ture to be incurred,

— the maximum amount of the imprest which may be

advanced,

However, costs in relation to activities undertaken by liaison
officers on behalf of Europol and in agreement with the
seconding Member States or requested by Europol or which
otherwise fall within the general competence of Europol, shall
be borne by the Europol budget. Expenditure which is not
attributable shall also be borne by the Europol budget.

SECTION III

— the time within which supporting documents must be

produced,

Member States’ contributions

— the responsibility of

the Administrators of

imprest

accounts.

Article 37

Article 34

The Accounting Officer may grant advances to staff if a
1.
provision laid down by regulation or in the implementing
rules, provided for in Article 57(2), provides therefor.

The Accounting Officer may grant advances to cover disburse-
ments to be effected by a member of staff on behalf of Europol.

2.
Apart from the imprest accounts referred to in Article 33,
no advance may be paid unless it has been approved before-
hand by the Financial Controller.

Article 35

1.
Should the Financial Controller withhold his approval
as provided for in Article 25(2), Article 26(2), Article 26(4),
Article 27(2), Article 29(3) or Article 34(2), he shall give his
reasons therefor in a written statement which shall be forward-
ed to the Accounting Officer, who shall inform the Authorising
Officer of the refusal.

In the event of a refusal to approve, except for cases
2.
the
where the availability of appropriations is in doubt,
Director may confirm the debt
forecast, recovery order,
proposal for cancellation, commitment of expenditure, pay-
ment order or advance in a reasoned decision.

The debt forecast, recovery order, proposal for cancellation,
commitment of expenditure, payment order or advance shall
then be considered to have been validly made.

The Management Board and the Joint Audit Committee shall
be informed immediately whenever this provision is applied.

Article 36

1.
Each Member State’s contribution to the budget for the
financial year t shall, in accordance with Article 35(2) of the
Europol Convention, be calculated on the basis of that State’s
gross national product (hereinafter called ‘GNP’) for the year
t−2.

The contribution shall be expressed in euro.

2.
The calculation of the contributions used when drawing
up the budget shall be based on the GNP forecasts, in euro or
in national currencies for the non-participating Member States,
used when drawing up the preliminary draft budget of the
European Union for the financial year t−2. These forecasts
shall be converted into euro applying the average exchange
rate of the year t−2.

Article 38

1.
Before 1 December of the year t−1 or no later than one
month after the budget is adopted whichever date is the later,
the Director shall call up the contributions for the financial
year t.

2.
Subject to Article 8, payment of the Member States’
contributions shall be made in full before 31 March of the year
t or no later than one month after the contributions are called
up, whichever date is the later.

Payment shall be made in euro or in national currency by the
non-participating Member States.

3.
Interest shall be charged on the basis of Euribor (Euro
Interbank Offered Rate) to be specified in the implementing
rules provided for in Article 57(2), on that part of a Member
State’s contribution which has not been paid within one
month of the time limit specified in paragraph 2.

In accordance with Article 5(9) of the Europol Convention,
costs relating to the activities of liaison officers shall, as a
general rule, be borne by the seconding Member States.

The Management Board shall be informed whenever this
provision is applied.

C 312/12

EN

Official Journal of the European Communities

29.10.1999

Article 39

Articles 37 and 38 shall apply likewise in the event of a
supplementary budget.

(b) where the purchase or hiring of goods, the provision of
services or building works are so urgently needed that it is
not possible to wait for a tendering procedure to be carried
out;

Article 40

(c) where the tendering procedures do not give any result or

where the prices quoted are not acceptable;

1.
On the basis of the revenue and expenditure account for
the financial year t drawn up in accordance with Article 53,
the Director shall, by applying the actual GNP figures for t−2
as established in national currencies by the Commission of the
European Communities and the average exchange rate for
the same year, recalculate the Member States’ contributions
necessary for the financial year t in order to finance the actual
expenditure for this year and the carry-overs to the following
financial year.

To take account of the surplus from the financial year t
2.
and the differences between the provisional and the actual
GNP figures for t−2, the following procedure shall be applied:

(a) for those Member States whose contributions actually paid
for the financial year t exceed the contributions necessary
according to paragraph 1, the amount paid in excess shall
be deducted from the contributions called up for the
financial year t+2.

(b) for those Member States whose contributions actually paid
for the financial year t are smaller than the contributions
necessary according to paragraph 1,
the outstanding
amount shall be called up together with the contributions
called up for the financial year t+2.

(d) where for technical, practical, security or legal reasons the
supply of goods and services can be carried out only by a
particular contractor or supplier;

(e)

for contracts for the supply of additional goods and
services or for ancillary building works which, technically,
cannot be separated from their main contract.

In the cases referred to under (a), (b) and (c), Europol shall
nonetheless be bound, as far as possible and by all appropriate
means, to enable suppliers who are likely to be able to supply
the goods and services in question to compete.

Invitations to tender shall, as a general rule, be published
3.
in all the Member States and, where appropriate,
in third
countries in so far as this is compatible with the development
of relevant industries within the European Union. However,
their publication may be restricted where the scale or nature
of the goods or services is such that they are not appropriate
for a general invitation to tender.

SECTION IV

Conclusion of contracts and inventory

Article 41

4.
The tendering procedures, award criteria and price
adjustment procedures occurring after the conclusion of
contracts
shall be determined and governed by the
implementing rules provided for in Article 57(2), given that
the award criteria shall be defined by analogy with the
provisions of the directives referred to in Article 44.

1.
Contracts for the purchase and hiring of buildings or
goods, for the provision of services or for the performance of
construction work shall be in writing.

2.
Apart from contracts relating to the purchase of a
building already constructed or the leasing of a building, all
such contracts shall be concluded after an invitation to tender
has been issued.

However, contracts may be made by private treaty in the
following circumstances:

Contracts exceeding the limit

5.
laid down by the
implementing rules provided for in Article 57(2) shall be
subject to the authorisation of the Management Board.

Article 42

(a) within the limit laid down by the implementing rules

provided for in Article 57(2);

No discrimination shall be practised between nationals of
Member States on grounds of nationality in respect of contracts
entered into by Europol.

29.10.1999

EN

Official Journal of the European Communities

C 312/13

Article 43

Contracts may be made against invoice or bill of costs
1.
where the expected value of the goods, services or works does
not exceed the amounts laid down by the implementing rules
provided for in Article 57(2).

2.
By way of guarantee of the performance of contracts,
suppliers or contractors may be required by a warranty clause
to make a preliminary deposit.

The amount of the deposit shall be fixed according to the usual
trade terms and conditions.

2.
A statement or record shall be drawn up by the
Authorising Officer whenever any property in the inventory is
sold, given away free of charge, scrapped, hired out, or missing
on account of loss, theft or other reason. The statement or
record shall be forwarded to the Accounting Officer, who shall
submit it to the Financial Controller for authentication.

The statement or record shall refer in particular to any
obligation that may devolve on a member of the staff of
Europol or any other person to replace the item in question.

Apart from sales by public auction, members of staff

3.
may not acquire any movable property sold by Europol.

Where a contract has not been performed or completion has
been late, Europol shall ensure that it is adequately compen-
sated in respect of all damages, interests and costs by the
deduction of the amount from the deposit, whether this has
been lodged directly by the supplier or contractor or by a third
party.

If immovable property or large installations are made
4.
available free of charge, they must be covered by contracts
approved by the Financial Controller. Such immovable prop-
erty or large installations can only be accepted after prior
approval by the Management Board. The Management Board
shall act unanimously.

Article 44

When concluding contracts in respect of which the amounts
involved are equal to or greater than the thresholds laid down
by the Council Directives coordinating the procedures for the
conclusion of contracts covering public works, supplies and
services, Europol shall be subject to the same obligations
which are incumbent on parties in the Member States pursuant
to the Directives.

Article 45

1.
A permanent inventory showing the quantity and value
of all movable and immovable property belonging to Europol
shall be kept. Only movable property exceeding a specific
value laid down in the implementing rules provided for in
Article 57(2) shall be entered in this inventory.

2.
All acquisitions of such movable or immovable property
shall be entered in the permanent inventory before payment
can be made.

The entry shall be recorded in the corresponding invoice or
attached document drawn up with a view to payment of the
expenditure.

SECTION V

Accountancy

Article 47

The accounts shall be kept in euro by the double-entry
1.
method, on the basis of the financial year. They shall show all
revenue and expenditure for the financial year; they shall be
authenticated by supporting documents.

The accounts shall be closed at the end of the financial year to
enable the balance sheet and the revenue and expenditure
account referred to in Article 50 to be drawn up by the
Accounting Officer on behalf of the Director. The revenue and
expenditure account shall be submitted to the Financial
Controller. The Director shall sign and approve the financial
statements.

The revenue and expenditure account and the balance

2.
sheet shall be drawn up in euro.

Article 48

Europol shall carry out its own inspection to ascertain

3.
that entries in the inventory correspond to the facts.

The chart of accounts shall make a clear distinction

1.
between budgetary accounts and cash accounts.

Article 46

It shall comprise two parts:

1.

The sale of movable property shall be suitably advertised.

show the detailed implementation of the budget;

(a) accounts of budgetary expenditure and revenue which

C 312/14

EN

Official Journal of the European Communities

29.10.1999

(b) the balance sheet accounts which disclose the assets and

liabilities of Europol.

The same shall apply if the Authorising Officer omits to draw
up a document establishing a debt or if he neglects to issue a
recovery order or is, without justification, late in issuing it.

These accounts shall show the expected effect of Europol’s
legal obligations and shall make it possible to draw up an
annual balance of assets and liabilities and a monthly statement
of revenue and expenditure by chapter and article.

These statements shall be forwarded to the Financial Controller,
the Authorising Officer and the Joint Audit Committee.

2.
Any advance, other than regular advances which are
periodically re-examined, shall be entered in a suspense
account and settled at the latest during the financial year which
follows the payment of this advance.

However, the advances referred to in Article 34 shall be settled
as a general rule within six weeks following completion of the
project for which they were granted.

The detailed conditions for the establishment and oper-
3.
ation of the chart of accounts for transactions, relating both to
assets and liabilities and to the implementation of the budget,
including the accounting standards, shall be determined by the
implementing rules provided for in Article 57(2).

2.
The Accounting Officer and Assistant Accounting Offi-
cers shall render themselves liable to disciplinary action and,
where appropriate,
to payment of compensation in the
following cases:

(a)

if they fail to comply with Article 31(1);

(b) if the payments made by them do not agree with the

amounts and currencies of the payment orders;

(c)

if they effect payment to a party other than the entitled
payee.

The Accounting Officer and Assistant Accounting Offi-
insure themselves against the risk arising under

3.
cers shall
paragraph 2.

Europol shall cover the insurance costs relating thereto.

4.
Supporting documents pertaining to the accounts and
the preparation of the revenue and expenditure account and
the balance sheet shall be kept for a period of five years
following the date of the decision provided for in Article 55(2)
giving discharge in respect of the implementation of the
budget.

4.
Administrators of imprest accounts shall render them-
selves liable to disciplinary action and, where appropriate, to
payment of compensation in the following cases:

(a) where they cannot show due warrant with proper docu-

ments for payments made by them;

However, the documents relating to transactions not finally
closed shall be kept for longer than the said period until the
end of the year in following the year which such transactions
are finally closed.

(b) where they effect payment to parties other than entitled

payees.

SECTION VI

Responsibilities of Authorising Officers, the Accounting
imprest accounts and the
Officer, Administrators of

Financial Controller

Article 49

5.
The Financial Controller and Assistant Financial control-
lers shall render themselves liable to disciplinary action and,
where appropriate, to payment of compensation for any action
taken during their term of office; in particular, by granting
their approval in excess of the budgetary appropriations.

6.
The liability of Authorising Officers, the Accounting
Officer, Assistant Accounting Officers and Administrators of
imprest accounts to payment of compensation and disciplinary
action shall be determined in accordance with the relevant
provisions of the Staff Regulations of officials of Europol.

1.
An Authorising Officer shall render himself liable to
disciplinary action and, where appropriate, to payment of
compensation if he enters into a commitment of expenditure
or signs a payment order without complying with this
Regulation.

These provisions shall also apply, mutatis mutandis, in case of
liability of the Financial Controller and Assistant Financial
Controllers to payment of compensation and disciplinary
action.

29.10.1999

EN

Official Journal of the European Communities

C 312/15

TITLE IV

PRESENTING AND AUDITING THE ACCOUNTS

SECTION I

Presenting the accounts

Article 50

In accordance with Article 36 of the Europol Convention, the
Director shall each year draw up and present the financial
statements of Europol including:

(c) the appropriations unused at the end of the financial year

and not carried over the following financial year;

(d) the appropriations carried over to the following financial

year pursuant to Article 6;

(e) the use of appropriations carried over from the preceding

financial year;

(f) an explanation where revenue or expenditure has been

higher or lower than anticipated in the budget;

— a revenue and expenditure account, and

(g) the assets and liabilities of Europol;

— a balance sheet of assets and liabilities as at 31 December
of the preceding financial year and such explanatory notes
as are required for a proper understanding of Europol’s
including a statement of significant
financial position,
accounting policies.

The revenue and expenditure account shall cover all revenue
and expenditure transactions relating to the preceding financial
year. It shall be submitted in the same form and following the
same subdivisions as the budget and shall show:

— the original budget appropriations,

— the appropriations as modified by any transfers of funds,

— the amounts charged against the appropriations, and

— the uncommitted balance of appropriations.

The balance sheet shall include, on the asset side, the amount
of revenue to be collected and, on the liabilities side, the
amount of expenditure chargeable to the financial year, which
have not yet been entered in the accounts.

A statement showing the movements and balances of the
accounts at 31 December of the preceding financial year shall
be attached to the balance sheet.

Article 51

1.
The Director shall send the financial statements, includ-
ing the revenue and expenditure account, the balance sheet,
explanatory notes and the report on the annual accounts, as
provided for in Article 36(1) of the Europol Convention, the
Council and the Joint Audit Committee and, for information,
to the Management Board and the Financial Committee by
31 May of the following year at the latest.

2.

The annual report shall in particular describe:

(a) the commitments entered into and payments made charge-

able to the financial year;

(b) the total revenue and expenditure booked under each

Article of the budget;

(h) the capital investments made during the financial year;

(i)

such further explanations as may be necessary for a
proper understanding of the annual accounts including an
assessment of Europol’s future financial situation.

SECTION II

Auditing the accounts

Article 52

The purpose of the audit, carried out by the Joint Audit
Committee in accordance with generally accepted international
auditing standards, based on records and performed on the
spot, shall be to establish that the financial statements present
fairly the financial position of Europol at 31 December, that
all revenue has been received and all expenditure incurred in a
lawful and regular manner, in accordance with the terms of
the Europol Convention, the budget and this Regulation, in
particular Article 2, and that the financial management has
been sound.

Article 53

1.
The Director shall provide the Members of the Joint
Audit Committee and anybody assisting them in carrying out
their tasks with all information and every assistance which
they require in order to perform their task.

In particular, the Director shall place all cash and goods
accounts and all vouchers, supporting documents and stock
registers which the Members of
the Committee consider
necessary for auditing the revenue and expenditure account at
their disposal.

The Members of the Joint Audit Committee and anybody
assisting them in carrying out their tasks shall have personal
access to the premises of Europol and shall have the right to
interview the Director, the Deputy Directors and any other
employee of Europol responsible for transactions involving
revenue or expenditure.

C 312/16

EN

Official Journal of the European Communities

29.10.1999

in
2.
Notwithstanding paragraph 1,
exceptional cases, deny the Members of
the Joint Audit
Committee access to information, in whatever form, covered
by provisions of the Europol Convention or acts adopted in
accordance therewith concerning confidentiality.

the Director may,

The Director shall inform the Management Board immediately
when this provision is applied. The Management Board may
by unanimous decision grant the Members of the Joint Audit
Committee access to the information in question.

The Members of the Joint Audit Committee and anybody
3.
assisting them in carrying out
treat all
information acquired about Europol and its activities as
confidential.

their tasks shall

Article 54

1.
In addition to its responsibility for auditing the accounts,
the Joint Audit Committee shall make any appropriate com-
ments on the accounting methods used, the sound financial
management and, in general, on the financial implications of
the administrative practices followed.

2.
Any comments which in the opinion of the Joint Audit
Committee should be contained in the audit report provided
for in Article 36(3) of the Europol Convention shall be brought
to the attention of the Director and the Financial Controller.
The Director and the Financial Controller shall send the Joint
Audit Committee their replies to any such comments.

Article 55

1.
The Joint Audit Committee shall, by 31 October at the
latest, produce its report on the accounts of the preceding
financial year. The report shall be transmitted to the Manage-
ment Board, the Director and the Financial Controller.

In its report, the committee shall indicate the extent and nature
of the audit performed and give its comments on the accounts
and the balance sheet and a brief assessment of the financial
management of Europol.

The Director and the Financial Controller may, by 30 Novemb-
er at the latest, transmit their respective opinions on the audit
report to the Management Board and to the Joint Audit
Committee.

2.
On the basis of an opinion of the Financial Committee,
the Management Board shall discuss the report and draw up a
recommendation to the Council concerning discharge to be
given to the Director in respect of the implementation of the
budget.

As soon as the Management Board has drawn up its rec-
ommendation, the Joint Audit Committee shall, in accordance
with Article 36(3) of the Europol Convention, submit its report
to the Council.

Before 30 April of the following year and in accordance with
Article 36(5) of the Europol Convention, the Council shall take
a decision on the discharge.

3.
The timetable for the discharge procedure shall be further
specified in the implementing rules provided for in Article
57(2).

The Director shall take all appropriate steps to act on the

4.
comments appearing in the decision giving discharge.

The Financial Controller shall

5.
comments appearing in the decision giving discharge.

take account of

the

TITLE V

FINAL PROVISIONS

Article 56

Article 57

The Management Board shall inform the Joint Audit Com-
mittee, as soon as possible, of all decisions and measures taken
in implementation of Articles 6, 8, 17 and 20.

The Joint Audit Committee and the Financial Controller shall
be informed of the appointment of Authorising Officers,
the Accounting Officer, Assistant Accounting Officers and
Administrators of
the acts of
delegation or appointment pursuant to Article 19(1) and
Article 21.

imprest accounts, and of

The Management Board shall forward to the Joint Audit
Committee any rules of procedure which it adopts in respect
of financial matters.

1.
Amendments to this Regulation shall be adopted in
accordance with Article 35(9) of the Europol Convention and
after consultation of the Joint Audit Committee.

2.
Acting upon a proposal from the Director, and after
consultation of the Financial Controller and the Financial
Committee, the Management Board shall adopt the rules
required for implementing this Regulation. It shall act unani-
mously.

29.10.1999

EN

Official Journal of the European Communities

C 312/17

Article 58

Article 59

1. When Europol takes up its activities, it shall automatically
succeed to all financial rights and obligations recorded in the
accounts of the Europol Drugs Unit.

In accordance with Article 45(5) of the Europol Conven-
2.
tion, Europol shall become the owner of all equipment
financed from the Europol Drugs Unit joint budget, developed
or produced by the Europol Drugs Unit or placed at its
disposal free of charge by the Netherlands Government for its
permanent use.

3. When Europol takes up its activities, the coordinator of
the Europol Drugs Unit shall present to the Council a report
on the statement of accounts of that Unit, as well as an
inventory list of all the equipment of which Europol becomes
owner in accordance with paragraph 2.

This report shall also be sent to the auditor of the Europol
Drugs Unit and to the Joint Audit Committee.

Council Act 1999/C 25/01 is hereby repealed.

Article 60

This Financial Regulation shall enter into force on 1

1.
January 2000.

This Financial Regulation shall be published in the

2.
Official Journal of the European Communities.

Done at Luxembourg, 4 October 1999.

For the Council

The President
K. HA¨ KA¨ MIES