Resolution of the European Parliament containing the comments accompanying the decision on the discharge to the Director of the European Monitoring Centre on Racism and Xenophobia in respect of the implementation of its budget for the financial year 2002
Date: 2004-04-21
Institutions: European Parliament
Subjects: European Union Agency for Fundamental Rights, budgetary discharge, financial year, implementation of the budget

4.11.2004

EN

Official Journal of the European Union

L 330/67

RESOLUTION

of the European Parliament containing the comments accompanying the decision on the
discharge to the Director of the European Monitoring Centre on Racism and Xenophobia in
respect of the implementation of its budget for the financial year 2002

THE EUROPEAN PARLIAMENT,

— having regard to the Court of Auditors' report on the financial statements of the European
Monitoring Centre on Racism and Xenophobia for the financial year 2002, together with the
Centre's replies (1) (C5-0633/2003),

— having regard to the Council's recommendation of 9 March 2004 (C5-0138/2004),

— 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, and to Council Regulation (EC) No 1652/2003 of 18 June 2003 amending
Regulation (EC) No 1035/97 on establishing a European Monitoring Centre on Racism and
Xenophobia (3), and in particular Article 12a thereof,

— having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on
the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation
(EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the
European Communities (4), and in particular Article 94 thereof,

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

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

Committee on Citizens' Freedoms and Rights, Justice and Home Affairs (A5-0212/2004),

A. Whereas the European Court of Auditors (ECA) stated in its abovementioned report that it had
obtained reasonable assurances that the accounts for the financial year ended 31 December 2002 are
reliable and that the underlying transactions, taken as a whole, are legal and regular.

B. Whereas on 6 November 2003 Parliament gave discharge (5) to the Director of the European
Monitoring Centre on Racism and Xenophobia in respect of the implementation of its budget for the
2001 financial year and at the same time Parliament in its resolution, inter alia:

— invited the Centre to monitor more closely the implementation of appropriations and its work
programme and encouraged it to make further efforts to solve recurrent problems in its
relations with the RAXEN network,

— took the view that the Centre should intensify its cooperation with other Agencies faced with
similar ‘systemic’ problems in their relations with the networks of National Points so that
progress might be made in developing a harmonised approach to such problems based on best
practice,

— stressed that the Centre should continue its efforts in particular in the areas of internal audit

and control so as to improve its financial management,

(1) OJ C 319, 30.12.2003, p. 69.
(2) OJ L 248, 16.9.2002, p. 1.
(3) OJ L 245, 29.9.2003, p. 33.
(4) OJ L 357, 31.12.2002, p. 72.
(5) OJ L 333, 20.12.2003, p. 78.

L 330/68

EN

Official Journal of the European Union

4.11.2004

1. Notes the following figures for the accounts of the European Monitoring Centre on Racism and

Xenophobia for the financial years 2002 and 2001:

Revenue and expenditure account for the financial years 2002 and 2001

(1 000 euro )

2002

2001

Total revenue (a)

Revenue

Own revenue

Commission subsidy

Miscellaneous revenue

Financial revenue

Expenditure
Staff — Title I of the budget

Payments

Appropriations carried over
Administration — Title II of the budget

Payments

Appropriateions carried over
Operating activities — Title III of the budget

Payments

Appropriations carried over

Total expenditure (b)

4 320

43

4 363

2 416

187

377

60

1 686

1 324

5 960

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

− 1 597

Balance carried over from the previous financial year

Appropriations carried over, cancelled

Appropriations for re-use from the previous financial year, not
utilised

Repayment to the Commission

Exchange-rate differences

Balance for the financial year

− 8

52

151

− 179

2

− 1 579

5 000

46

5 046

2 072

67

662

151

990

1 181

5 123

− 77

179

75

0

− 174
− 11

− 8

(1) Calculation based on the principles of Article 15 of Council Regulation (EC, Euratom) No 1150/2000 of

22 May 2000 (OJ L 130, 31.5.2000, p 8).

NB: Any discrepancies in totals are due to the effects of rounding.
Source: Centre data.

Implementation of the budget

2. Notes the ECA's recommendation that the Monitoring Centre should continue its efforts to reduce
carry-overs still further; notes also the Centre's position that the substantial carry-overs in operating
appropriations are mainly related to the cycle of contract implementation by the RAXEN network;
expects the Centre to improve its planning in this respect;

3.

Invites the Centre to further explain its analysis of options offered by the new Financial Regulation,
in particular with regard to the contracts relating to the RAXEN network, with a view to reducing
carry-overs and ensuring compliance with the annuality principle;

4.11.2004

EN

Official Journal of the European Union

L 330/69

4. Notes the Centre's acknowledgment of the improper carry-over of provisional commitments and its
assurance that article 6 of the Centre's Financial Regulation will be properly applied in future;

5.

Expects the Centre to comply with the ECA's observations on the timely issuing of recovery orders
so as to ensure the effective monitoring of revenue;

Financial statements

6.

7.

8.

Shares the ECA's concern over the problem of the balance for the financial year 2002 (a deficit of
EUR 1,6 million); notes also the adverse effects which the low level in payment appropriations may
have on carrying out the Centre's work programme; takes the view that the difference between
commitment and payment appropriations may not be such as to put at risk the proper
implementation of the work programme;

Notes that the Community subsidy to the Centre is paid in four instalments; notes also the Centre's
remark in its replies to the questionnaire that a situation similar to that of 2002, with a low level of
payments and delays in the payment of instalments, was reoccurring in 2003, resulting in a similar
cashflow problem;

Invites the Commission and the Centre to improve their co-ordination in order to avoid such
problems occurring again; invites the Commission to inform its competent committees about the
problem and the measures taken to remedy the situation;

Legality and regularity of the underlying transactions

9.

Expresses deep concern over the fact that despite repeated observations by the ECA on persistent
internal control problems the desired improvements were still not put in place; takes the view that
the implementation of the new Financial Regulation will help bring about such improvements;
invites the Centre to increase its efforts in this regard;

10. Stresses the need for proper evaluation of results before renewal of contracts with the RAXEN
national focus points, especially since problems with the network have already in previous years
been considered ‘systematic’; welcomes the Centre's plans to continuously evaluate the work of the
focus points; stresses the importance of proper evaluation before new financial obligations are
undertaken;

11.

Invites the Centre to make sure that the ECA's recommendations, in particular as regards contract
management, are followed up; stresses the need for efficiency in satellite bodies as the relative size of
administrative expenditure is high compared with operational expenditure;

Horizontal points on the Agencies and the Commission

Implementing the new Financial Regulation - Internal audit and control

12. Reiterates the position taken in its resolutions (1) accompanying the discharge given to the agencies
for 2001 as regards the implementation of the new Financial Regulation; invites the Commission and
the agencies to continue their cooperation, in particular in the areas of accounting, internal audit,
management and control procedures, so as to ensure that a coherent harmonised framework for the
functioning of the agencies is established;

(1) OJ L 148, 16.6.2003, p. 83 and OJ L 333, 20.12.2003, p. 53 (point 18).

L 330/70

EN

Official Journal of the European Union

4.11.2004

13. Recalls that it expressed concern in the discharge resolution for 2001 concerning the lack of controls
on the agencies carried out by the internal audit service of the Commission (IAS); expresses grave
concern that such controls do not seem to have been carried out this year; asks the Commission and
the IAS to explain the reasons for this and to provide data about the number of staff available to the
Internal Auditor to carry out controls in the agencies; Expects the Commission to indicate how it can
guarantee that sufficient and correct controls are carried out in the satellite bodies, in particular the
IAS;

14. Stresses that it is essential that the agencies be required to submit to the investigative powers of
OLAF under the same conditions as the institutions (1); invites the ECA to provide information, in
time for adoption of the discharge resolution, on whether the Community bodies which acceded to
the Interinstitutional Agreement of 25 May 1999 (2) on internal investigations by OLAF did so in the
same terms as those laid down in the annex to this Agreement;

Financial Management

15. Notes that in some of the agencies' replies to the questionnaire concerning the way in which the
recurrent problem of substantial carry-overs might be addressed, mention is made of the possibilities
offered by the new Financial Regulation, which provides for the use of ‘differentiated appropriations’;
invites the Agencies to better explain their analysis and to indicate in particular which of their
activities of a multiannual nature might be financed by such appropriations;

16.

Invites the Commission to present its position on such a solution and, should it consider that this
solution is not feasible, to outline alternatives allowing for a substantial reduction in carry-overs;

Review of the agencies

17. Stresses that, prior to any decision to set up an agency, the Commission must make a rigorous
analysis of the need for and added value of the functions that the agency will perform, with an eye to
the principles of subsidiarity, budgetary rigour and procedural simplification;

18. Calls on the Commission to make a general study of activities currently carried out by various
Community bodies that might overlap or serve the same goals, and to propose appropriate
solutions, including the possible mergers of agencies;

19.

Is concerned by the fact that there is an imbalance between administrative and operational
expenditure in many agencies, with administrative expenditure exceeding expenditure for operational
purposes; calls therefore on the Commission and the agencies to set targets and a timetable to reduce
the level of administrative expenditure as a proportion of total expenditure; notes that many agencies
see opportunities in this regard, as listed in the questionnaire;

20. With reference to the replies to the questionnaire on interinstitutional cooperation, encourages the
agencies to improve cooperation between themselves in order to meet their needs in specific areas
(for example, software development) and reduce costs, rather than adopt solutions which were
initially designed for the purposes of the Commission but which often prove to be too cumbersome
and complicated for the agencies' specific needs;

21. Encourages the agencies to organise and develop a close working relationship with the competent
parliamentary committees; invites its standing committees with competence in the areas of activity of
each of the agencies to coordinate their action with the Committees of Budgets and Budgetary
Control, with a view to ensuring efficient monitoring of the activity of the agencies;

Texts adopted, 13 January 2004, P5-TA(2004) 0015.

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

4.11.2004

EN

Official Journal of the European Union

L 330/71

New sources of financing

22. Welcomes the responses and ideas that emerged from the questionnaire concerning the possibilities
of other sources of financing; notes that many current sources and proposals concern the letting of
buildings and facilities and the sale of publications and information; realises that for reasons of
independence, among other things, not all agencies are to accept additional financial sources; stresses
the economies of scale and financial benefits of the participation of non-EU countries in the
activities of certain agencies; calls on the Commission and the Agencies to come forward with
constructive proposals with regard to further development of new sources of additional financing,
which would increase the level of self-financing;

23. Welcomes the financial contributions of some Member States and regions to the agencies located on
their area; considers it important for Council and the Commission to demand such contributions,
especially when new agencies are set up;

Harmonised operating framework

24. Recalls its position (1) that the multitude of different forms in the existing agencies' structures was
thought to be ‘neither transparent nor comprehensible, and, even bearing in mind the differences in
tasks, not justified’; invites the Commission to conduct a review of all the existing agencies with a
view to proposing, where appropriate, amendments to their basic instruments (2) so as to adapt them
to the models that the future regulatory framework should encompass; instructs its competent
committees to follow up this comprehensive review exercise, which should be conducted as soon as
possible, and to take into consideration the horizontal issues mentioned in this discharge resolution;

25.

Invites the Commission to present appropriate proposals, aimed at creating such a harmonised
framework for the agencies, prior to or at least in parallel with the presentation of the legislative
proposals for the new agencies; insists that an interinstitutional agreement spelling out common
guidelines is a pre-condition for creating the harmonised framework;

Staff policy

26. Notes that, as a result of the new Financial Regulation, the organigrams of the agencies are
established by the budgetary authority; stresses the importance of this change for the agency
discharge procedure in the years to come as regards checking application of the Staff Regulation in
matters of recruitment, promotion policy, vacancy rates and recruitment policy;

27. Notes that, in response to a questionnaire tabled in the course of the budgetary procedure for 2004,
it was established that, on average, it took considerably fewer years to obtain promotion at several
agencies than is the policy in the Commission, that vacancy rates were considerably higher compared
to other institutions and that several of the requested new posts were not proposed at the lowest
grade; considers that staff policy should form an important part of a review of the existing agencies;

28. Considers that the staff policy of the agencies should comply with the Financial Regulation, the Staff
Regulations and the best practice generally followed by the Institutions; considers that
the
Commission has been requested to give, before the 2005 budgetary procedure, guidelines
concerning staff policy, notably the rate of vacant posts, the rate of promotions, the level of
recruitment and the standard career profile;

29. Recalls the principle that the agencies should as far as possible employ staff on temporary contracts,

in order to maintain flexibility and efficiency;

(1)
(2)

P5-TA(2004) 0015 (paragraphs 13 and 14).
P5-TA(2004) 0015 (paragraph 24).

L 330/72

EN

Official Journal of the European Union

4.11.2004

30.

31.

32.

Is concerned about the serious anomalies detected in connection with the selection procedures of the
European Monitoring Centre for Drugs and Drug Addiction, including: imprecise notice, incomplete
selection committee minutes, criteria for assessing candidates not defined in advance (1); is very
concerned that this might not be an isolated case but that agencies in general might have difficulty in
managing these rather complex procedures in a fair and transparent manner;

Is of the opinion that selection procedures organised by agencies should meet the same standards as
those organised by the European Personnel Selection Office (EPSO) and that they should not be
perceived as a backdoor for easy entry into the European civil service;

Invites the Commission to make proposals in order to ensure that the Agencies benefit from
appropriate support from the EPSO when organising selection procedures and that there is a
mechanism in place to validate the outcome of such procedures externally before recruitment takes
place.

(1)

See paragraph 13 of the Court of Auditors'specific report for 2002 (p. 64).