WRITTEN QUESTION P-2521/01 by Diemut Theato (PPE-DE) to the Commission. Detailed rules for the implementation of the Financial Regulation.
Date: 2001-09-11
Institutions: European Parliament, Provisional data
Subjects: Council of the European Union, European Communities, European Parliament, amendment, audit, financial control, financial regulation, management audit

C 160 E/18

Official Journal of the European Communities

EN

4.7.2002

Several additional pipeline-related energy assistance projects are currently being prepared or implemented
in Ukraine, including the construction of gas metering stations compatible with international standards in
Grebenyky and Kaushany (Inogate € 4 million) and a regional gas calibration centre for Ukraine, Belarus
and Moldova (Inogate € 7,5 million ’ should start shortly).

(2002/C 160 E/019)

WRITTEN QUESTION P-2521/01

by Diemut Theato (PPE-DE) to the Commission

(11 September 2001)

Subject: Detailed rules for the implementation of the Financial Regulation

Pursuant to Article 139 of the Financial Regulation, the Commission is to adopt implementing measures
for the Financial Regulation in consultation with the European Parliament and the Council.

On 21 August 2001, the Commission adopted Regulation (EC) No 1687/2001 (1) amending the detailed
rules implementing the Financial Regulation. The majority of the amendments called for by Parliament at
its sitting of 15 May 2001 to the Commission’s original proposal (SEC(2000) 1890) were not incorporated.

1. Will the Commission state:

(a) Why it did not attempt to seek an agreement between Parliament, the Council and itself on the

amendments to be made?

(b) Why it did not consult Parliament again, as Parliament asked in its resolution of 15 May 2001?

2. Will it also state:

(a) Why it did not incorporate Parliament’s calls for the safeguarding and strengthening of the internal
auditor’s independence (in particular as regards a right to bring action similar to that of the financial
controller?

(b) Why it went back on its original proposal and failed to include provisions pursuant to which the
internal auditor, in addition to evaluating the effectiveness of management and control systems, was
also to have verified the regularity of financial operations and the soundness of financial management?

(c) Why it has not acted in accordance with the new Article 24a of the Financial Regulation (2), under
which implementing measures are to be laid down pursuant to Article 139 on the verification, by
means of internal audit, of the regularity of budget management?

(1) OJ L 228, 24.8.2001, p. 8.
(2) OJ L 111, 20.4.2001, p. 2.

Answer given by Mrs Schreyer on behalf of the Commission

(5 November 2001)

Parliament adopted ten amendments in its opinion of 15 May 2001 to the Commission’s proposed
Regulation amending Commission Regulation (Euratom, ECSC, EC) No 3418/93 of 9 December 1993
laying down detailed rules for the implementation of certain provisions of the Financial Regulation of
21 December 1977 (1). This opinion was drawn up after discussions and contacts in particular with
Parliament’s Committee on Budgetary Control and its rapporteur. Extensive discussions took place also
with the Council, the Court of Auditors and the Economic and Social Committee who each adopted
opinions.

4.7.2002

EN

Official Journal of the European Communities

C 160 E/19

Commission Regulation (EC) No 1687/2001 of 21 August 2001 amending Commission Regulation
(Euratom, ECSC, EC) No 3418/93 of 9 December 1993 laying down detailed rules for the implementation
of certain provisions of the Financial Regulation of 21 December 1977 (2) was adopted on the basis of
these opinions.

1.
The Regulation of 21 August 2001 takes over the substance of most of Parliament’s amendments,
including those relating to the internal auditor, and a number of amendments from the Council, from the
Court of Auditors and also from the Economic and Social Committee.

The Commission did, however, have to reject some amendments, including some relating to the internal
auditor, either because they were not consistent with the rules governing relations between the institutions
or with the current Financial Regulation, or because they were at odds with the principle of sound
financial management, for instance on how to deal with conflicts of interest.

Article 139 of the Financial Regulation provides for the Commission to adopt the implementing rules after
consultation of Parliament and Council and once the opinions of other institutions have been adopted.
This was confirmed in opinion No 22/2001 of 23 February 2001 which Parliament’s legal service
delivered in connection with the adoption of Parliament’s resolution on the updating of the Regulation
laying down detailed rules for the implementation of the Financial Regulation. Once it has examined the
opinions of the other institutions, the Commission adopts its final regulation. Reconsulting the other
institutions is not foreseen.

2.

Parliament adopted an amendment inserting seven articles relating to the internal auditor:

’ The proposals which concerned Articles 43c to g duplicated the provisions of Article 24a of the
the Regulation laying down the
the Financial Regulation extends to the internal auditor the
in force for the financial controller, as regards in particular the

Financial Regulation and Articles 36, 39, 40, 41 and 43 of
implementing rules. Article 24a of
provisions applicable and still
independence and the guarantees he enjoys

’ To rewrite provisions already existing in the same section of the regulation would have offended the
rules of good legislative drafting. The provisions, and in particular the guarantees of independence, are
nevertheless applicable to the internal auditor by virtue of the references in Article 24a of the Financial
Regulation.

’ Guarantees are also written into the Charter of the Internal Audit Service adopted by the Commission

on 31 October 2000.

’ As regards the auditor’s duties,

the Commission’s initial proposal carried no reference to the
verification of the regularity of operations, contrary to what is stated in the question. The Commission
did not therefore go back on anything. On the question of detailed arrangements, both the Committee
on Budgetary Control and the full House rejected the amendments setting a minimum rate of control.

’ A detailed description of the methods for conducting internal audits would add nothing to the
international professional standards applicable, which are sufficient to guarantee the professional
nature of the service.

’ The Commission Regulation does, however, cover the analysis of sound financial management, a

broader concept than the ‘regularity of budget management’ referred to in the question.

’ Finally the amendment proposing that an Article 43b be inserted could not be accepted as it was not
consistent with the new Article 24a of the Financial Regulation, which makes no provision for the
appointment of subordinate auditors.

3.
Nevertheless, the Commission did take over the substance of the majority of the amendments of
Parliament, and will continue to give all due weight to the opinion of Parliament in its decisions on such
implementing rules.

(1) OJ L 315, 16.12.1993.
(2) OJ L 228, 24.8.2001.