European Parliament resolution containing the comments accompanying the decision on the discharge to the Director of the European Agency for Safety and Health at Work in respect of the implementation of its budget for the financial year 2001
Date: 2003-11-06
Institutions: Committee on Budgetary Control, European Parliament
Subjects: European Agency for Safety and Health at Work, budgetary discharge

20.12.2003

EN

Official Journal of the European Union

L 333/53

EUROPEAN PARLIAMENT RESOLUTION

containing the comments accompanying the decision on the discharge to the Director of the Euro-
pean Agency for Safety and Health at Work in respect of the implementation of its budget for the
financial year 2001

THE EUROPEAN PARLIAMENT,

— having regard to the Court of Auditors' report on the financial statements of the European Agency for
Safety and Health at Work concerning the financial year 2001, together with the Agency's replies (1)
(C5-0102/2003),

— having regard to the Council's recommendation of 7 March 2003 (C5-0103/2003),

— having regard to the EC Treaty, and in particular Article 276 thereof,

— having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
Regulation applicable to the general budget of the European Communities (2) and in particular Article
185 thereof,

— having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 on the
framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC,
Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European
Communities (3) and, in particular, Article 94 thereof,

— having regard to Rule 93a and Annex V of its Rules of Procedure,

— having regard to its decision of 8 April 2003 on the postponement of the decision concerning

discharge and its resolution containing the comments accompanying that decision (4),

— having regard to the report of the Committee on Budgetary Control and the opinion of the Committee

on Employment and Social Affairs (A5-0360/2003),

A. whereas in its abovementioned resolution, Parliament

— welcomed the fact that it is henceforth the competent authority for giving discharge to the Com-

munity bodies referred to in Article 185(1) of the new Financial Regulation, and

— stressed that in order to fulfil its new responsibilities in this respect it expected to receive all relevant
and necessary information from these bodies in reply to questions that it would have forwarded to
them;

B. whereas its competent Committee has received answers to such questions;

C. whereas the Agency's answers to the abovementioned questions, in many respects, provided Parliament
with updated information; whereas such information is supplementary to the observations contained in
the Court of Auditors' abovementioned report on the financial statements of the European Agency for
Safety and Health at Work (OSHA) for 2001 and to the Agency's replies to these observations;

D. whereas the condition that Parliament takes a decision on discharge after it has been adequately

informed was thus met;

1. Notes the following figures for the accounts of the European Agency for Safety and Health at Work for

the financial years 2001 and 2000;

(1) OJ C 326, 27.12.2002, p. 9.
(2) OJ L 248, 16.9.2002, p. 1.
(3) OJ L 357, 31.12.2002, p. 72.
(4) OJ L 148, 16.6.2003, pp. 16 and 18.

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Revenue and expenditure account for the financial years 2001 and 2000

2001

2000

(EUR 1 000)

Revenue collected for the financial year

Commission subsidies

Other subsidies

Financial revenue

Budgetary expenditure for the financial year

Total revenue (a)

Staff — Title I of the budget

Payments

Appropriations carried over

Administration — Title II of the budget

Payments

Appropriations carried over

Operational activities — Title III of the budget

Payments

Appropriations carried over

9 400

184

91

9 676

2 654

168

846

229

1 543

5 814

Total expenditure (b)

11 255

Outturn for the financial year (a-b) (1)

– 1 579

Balance carried over from the previous financial year

Appropriations carried over from the previous financial
year and cancelled

Sums to be reused carried over from the previous finan-
cial year

Exchange-rate differences

Adjustment entries

– 886

242

9

2

27

6 188

288

97

6 573

2 358

36

746

204

1 339

1 745

6 427

146

– 1 273

234

—

—

—

Balance for the financial year

– 2 185

– 886

NB:

Any discrepancies in totals are due to the effects of rounding.

Source: The Agency's data — These tables present, in summary form, the data provided by the Agency in its own financial state-

ments.

(1) The negative outturn and own capital balances do not constitute a loss of capital. They result from the application of the Finan-

cial Regulation in respect of revenue (collected only) and expenditure (payments made plus appropriations carried over).

Implementation of the budget/SME funding scheme

2. Notes that the main cause for the large amount of operating appropriations carried over from 2001 to
2002 was the late approval of the new activity, the SME accident prevention funding scheme, that the
Commission entrusted to the Agency;

3. Accepts the explanation provided by the Agency on the circumstances that resulted in this important
carryover and considers that the Agency's efforts to implement this new activity were, considering the
context, appropriate;

4. Notes with satisfaction in this respect the good overall assessment of the Agency's performance
contained in the external evaluation of the first SME funding scheme (2001 and 2002); requests that
the Agency forward to Parliament the external evaluation report for the second scheme, as this is in line
with Parliament's wish to be informed on the results of evaluations carried out;

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5. Takes the view that appropriate consideration should be given to the Agency's position in favour of a
multiannual programme for health and safety issues in SMEs, based on a decentralised approach and
aimed at developing a safety culture in SMEs through partnership and developing networks;

6. Recalls, in this respect, that in its resolution of 23 October 2002 (1) on the Commission's communica-
tion on a new Community strategy on health and safety at work 2002 to 2006, Parliament deeply
regretted ‘that the Commission has still not launched a multiannual SME programme based on the two
years of preparatory actions undertaken by the Bilbao Agency on the initiative of the European Parlia-
ment …’ (paragraph 25) and welcomed the proposal for the Bilbao Agency to establish a ‘Risk Observa-
tory’ (paragraph 33);

7. Expects the Commission, in this respect, to explain whether it is preparing a proposal for a specific
multiannual programme promoting health and safety at work in SMEs as provided for in the remarks of
budget lines B3-4 3 1 4 and B3-4 3 2 1 (in the 2002 and 2003 budget); furthermore,
invites the
Commission to present the reasons for its proposal, in the context of the 2004 budgetary procedure,
that the SME scheme it had entrusted to the Agency be discontinued, against the background of the
needs related to the process of integrating the accession countries and while it recognises that the
Agency is capable of being the ‘driving force’ in non-legislative health and safety activities;

8. Expects the Agency to continue its efforts to further improve its internal procedures and the quality of
the programming of its activities with a view to enhancing its efficiency in carrying out its tasks and in
order substantially to reduce the rate of carryovers for operating appropriations; takes the view that
such a reduction in carryovers does not solely depend on the multiannual programming of activities;

Financial statements/Financial provisions

9. Notes the Agency's efforts to update its inventory system and thus ensure that the Commission's valua-
tion and depreciation rules for fixed assets will be applied by the end of the year; also notes that the
Agency modified the rules in the system of reimbursement of expenses for experts' meetings in
response to criticism from the Court of Auditors;

10. Takes the view that the Agency should improve the programming of its work with regard to the
national focal points; considers that an appropriate planning of their tasks and an enhanced moni-
toring of implementation will help achieve positive results;

Cooperation with the Dublin Foundation (Eurofound)

11. Notes with satisfaction that, further to their Memorandum of Understanding of February 2001, the
Agency and the European Foundation for the Improvement of Living and Working Conditions have
very recently concluded a specific cooperation agreement in order to improve complementarity and
remove any risk of duplication of their work; takes the view, however, that notwithstanding these
efforts, a solution should be found, in the context of the upcoming enlargement, with regard to the
composition of boards which, as a general rule, are already ponderous;

Cooperation with OLAF

12. Asks the Director to bring the Agency's decision of 18 June 1999 concerning the terms and conditions
for internal investigations by the European Anti-fraud Office (OLAF) into line with the Interinstitu-
tional Agreement of 25 May 1999 (2) by introducing a provision allowing Agency staff to report to
OLAF directly;

(1) P5_TA(2002)0499.
(2) OJ L 136, 31.5.1999, p. 15.

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General points concerning the Agencies

Operational tasks

13. Reiterates,

in the light of the fact that,

in the case of many agencies, administrative expenditure
exceeds operational expenditure, there is scope for these agencies to be entrusted with more opera-
tional tasks; takes the view that they could for example be entrusted with implementing Community
programmes in the field of education or health, thus helping to avoid the unnecessary creation of
further executive agencies by the Commission; regrets that the Commission did not comply with
Parliament's request (1) to make proposals in this respect by 30 June 2003; invites the agencies to iden-
tify areas where they could take over implementation of Community programmes currently managed
by the Commission and to make proposals in this respect by the end of 2003;

14. Welcomes, in this context, the proposal from the European Training Foundation (ETF) to take up
possible further tasks; invites the Commission to use the ETF's expertise in a wider geographical area
than at present and for providing technical assistance to programmes such as Tempus and Erasmus
Mundus;

Adapting the financial rules to the new Financial Regulation

15. Expects the Agencies to complete their procedures for bringing into line their internal financial rules
with the requirements of the new framework Financial Regulation as soon as possible and in any event
by the end of the year at the latest; recalls that such internal financial rules may not depart from the
framework Financial Regulation except where the specific operating needs of an agency so require and
with the Commission's prior consent; calls on the agencies once they have completed such a process
to inform Parliament's competent committees; asks the Court of Auditors to give an opinion on all
financial provisions adopted by the agencies which depart from the framework Financial Regulation;

16. Reiterates its call to the Agencies to ensure a strict segregation of duties between authorising officer(s)

and accounting officer(s); recalls the enhanced role of the latter in:

(a) laying down and validating the accounting systems;

(b) keeping the accounts;

(c) validating systems laid down by the authorising officer to supply accounting information;

(d) cooperating with the Commission's accounting officer

(e) preparing and presenting the financial statements and the reports on implementation of the

budget.

Stresses, furthermore, that accounting officers must be appointed by the management boards of the
agencies on the grounds of adequate competence and professional experience; also expects compu-
terised systems put in place to guarantee the existence of a complete audit trail for each operation in
order to ensure transparency;

17. Reminds the agencies that they should fully respect public procurement procedures as laid down in
the Financial Regulation; stresses that open calls for tender must be used as much as possible in order
to enhance transparency and to ensure equal treatment of potential tenderers; emphasises that non-
respect of public procurement rules is not only potentially detrimental to the financial interests of the
agencies but can also be a criminal offence under the law of Member States;

(1) See paragraph 14 of Parliament's resolution containing the comments accompanying the decision concerning
discharge to the Management Board of the European Centre for the Development of Vocational Training in respect
of the implementation of its budget for the financial year 2001 (OJ L 148 of 16.6.2003, p. 83).

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Internal audit and control

18. Recalls that among the important features of the new Financial Regulation are the increased responsi-
bility of authorising officers and the setting-up of internal audit capabilities in order to counter the risk
of irregularities and mismanagement; therefore invites:

— the Court of Auditors to increase the number of checks carried out by its auditors,

— the agencies to thoroughly review their procedures for implementing their budgets in line with the

newly created framework,

— the Commission to cooperate closely with the agencies, especially in the areas of accounting,

internal audit and management and control procedures,

in order for appropriate and harmonised solutions to be put into practice.

19. Invites the Commission to propose a change to Regulation (EC, Euratom) No 2343/2002 on the
framework Financial Regulation governing the agencies in order to give the Agencies' respective
internal auditors real powers of scrutiny instead of merely an advisory role, as is currently the case;

20. Is extremely concerned that the Commission's Internal Audit Service (IAS) does not carry out any
checks on the agencies; stresses that this implies that Articles 71 and 72 of Regulation (EC, Euratom)
No 2343/2002 are not being adhered to and that, in practice, an outside control of the quality of
management and control systems of the agencies is left to be carried out in the context of the Court
of Auditors control; calls, therefore, on the Commission to ensure that the necessary resources are
made available so that the IAS is in a position to fulfil its tasks with regard to the internal control
systems in the Agencies;

Cooperation with OLAF

21. Invites the Court of Auditors to report by the end of the year on whether the Community bodies duly
cooperate with OLAF and apply the corresponding Interinstitutional Agreement of 25 May 1999 unre-
servedly; also asks the Court of Auditors to evaluate the effectiveness of this cooperation on the basis
of the cases processed so far;

Preparing the agencies for enlargement

22. Invites the Commission, with a view to accelerating the efforts towards preparing the integration of
the future Member States, to make the appropriate proposals, before the adoption of the 2004 budget,
aimed at:

— fostering better functioning of these Community bodies,

— ensuring better value for money through a cost/benefit analysis,

— avoiding any unnecessary creation of new agencies;

stresses that the further expansion, on the occasion of enlargement, of the administrative boards of the
agencies, which, as a general rule, are already very ponderous, would not be acceptable, on grounds of
both efficiency and cost; considers that enlargement offers a good opportunity to thoroughly recon-
sider the composition and working methods of these administrative boards;

23. Calls, therefore, on the Commission, in making such proposals, to consider, inter alia:

— entrusting the agencies with further operational tasks such as the carrying-out of programmes,

where appropriate,

— setting up joint boards for more agencies, especially for those with similar tasks,

— the possibility of mergers of agencies where activities overlap;

recalls, with regard to the latter, that the Commission has indicated a possible overlap between the
European Centre for the Development of Vocational Training (Cedefop) and the European Training
Foundation, and between the Foundation for the Improvement of Living and Working Conditions and
the Agency for Safety and Health at Work;

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24. Furthermore, invites the Commission, in line with its proposal on European Governance (aimed at
concentrating its activity on the core tasks), to include in its action programme for 2004 the appro-
priate proposals with a view to avoiding duplication of work, either between agencies with similar
activities, or between the activities of the agencies and those of the Commission;

25. Reiterates its call on the Commission to submit a proposal for an amendment to the constituent acts
of the agencies to ensure that their directors may in future be appointed only with the assent of Parlia-
ment; awaits proposals from the Commission to this effect, to be submitted by 1 December 2003 at
the latest.