Proposal for a Council Regulation on the Financial Regulation applicable to the Euratom Supply Agency
Date: 2007-03-16
Institutions: European Commission
Subjects: Euratom Supply Agency, drawing up of the budget, financial management, financial regulation, implementation of the budget

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.3.2007 
COM(2007) 108 final 

2007/0042 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on the Financial Regulation applicable to the Euratom Supply Agency 

(presented by the Commission) 

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TABLE OF CONTENTS 

EXPLANATORY MEMORANDUM ....................................................................................... 4 

COUNCIL REGULATION on the Financial Regulation applicable to the Euratom Supply 
Agency ....................................................................................................................................... 5 

TITLE I - SCOPE....................................................................................................................... 6 

TITLE II – BUDGETARY PRINCIPLES ................................................................................. 7 

CHAPTER 1: Principles of unity and budget accuracy ............................................................. 7 

CHAPTER 2: Principle of annuality.......................................................................................... 8 

CHAPTER 3: Principle of equilibrium ...................................................................................... 9 

CHAPTER 4: Principle of unit of account............................................................................... 10 

CHAPTER 5: Principle of universality.................................................................................... 10 

CHAPTER 6: Principle of specification .................................................................................. 12 

CHAPTER 7: Principle of sound financial management......................................................... 12 

CHAPTER 8: Principle of transparency .................................................................................. 13 

TITLE III – ESTABLISHMENT AND STRUCTURE OF THE BUDGET........................... 13 

CHAPTER 1: Establishment of the budget.............................................................................. 13 

CHAPTER 2: Structure and presentation of the budget .......................................................... 14 

TITLE IV – IMPLEMENTATION OF THE BUDGET.......................................................... 14 

CHAPTER 1: General provisions ............................................................................................ 14 

CHAPTER 2: Financial players ............................................................................................... 15 

Section 1: Principle of segregation of duties............................................................................ 15 

Section 2: Authorising officer .................................................................................................. 15 

Section 3: Accounting officer .................................................................................................. 17 

CHAPTER 3: Liability of the financial players ....................................................................... 18 

Section 1: General rules ........................................................................................................... 18 

Section 2: Rules applicable to authorising officers by delegation ........................................... 18 

Section 3: Rules applicable to accounting officers .................................................................. 19 

CHAPTER 4: Revenue operations........................................................................................... 20 

Section 1: General provisions .................................................................................................. 20 

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Section 2: Estimate of amounts receivable .............................................................................. 20 

Section 3: Establishment of amounts receivable...................................................................... 20 

Section 4: Authorisation of recovery ....................................................................................... 21 

Section 5: Recovery ................................................................................................................. 21 

Section 6: Specific provisions applicable to fees and charges ................................................. 22 

CHAPTER 5: Expenditure operations ..................................................................................... 22 

Section 1: Commitment of expenditure ................................................................................... 23 

Section 2: Validation of expenditure........................................................................................ 24 

Section 3: Authorisation of expenditure................................................................................... 24 

Section 4: Payment of expenditure........................................................................................... 25 

Section 5: Time limits for expenditure operations ................................................................... 25 

CHAPTER 6: IT systems ......................................................................................................... 26 

CHAPTER 7: Internal auditor.................................................................................................. 26 

TITLE V – PROCUREMENT ................................................................................................. 27 

TITLE VI – PRESENTATION OF THE ACCOUNTS AND ACCOUNTING ..................... 27 

CHAPTER 1: Presentation of the accounts.............................................................................. 27 

CHAPTER 2: Accounting........................................................................................................ 30 

Section 1: Common provisions ................................................................................................ 30 

Section 2: General accounts ..................................................................................................... 30 

Section 3: Budgetary accounts ................................................................................................. 31 

CHAPTER 3: Property inventories .......................................................................................... 31 

TITLE VII – EXTERNAL AUDIT AND DISCHARGE ........................................................ 31 

CHAPTER 1: External audit .................................................................................................... 31 

CHAPTER 2: Discharge .......................................................................................................... 32 

TITLE VIII - TRANSITIONAL AND FINAL PROVISIONS ............................................... 33 

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EXPLANATORY MEMORANDUM 

The Euratom Supply Agency (hereinafter “the Agency”) is the Community body responsible 
for ensuring an equitable supply of nuclear materials (ores, raw materials and special fissile 
materials). As such, it has the exclusive right to conclude contracts relating to the supply of 
these materials coming from inside the Community or from outside (Article 52 Euratom). 

The Agency is under the supervision of the Commission (Article 53 Euratom). The Agency 
has legal personality and financial autonomy (Article 54 Euratom). In Article 54, the Treaty 
provides  that  the  statutes  may  provide  for  a  charge  on  transactions  to  defray  the  operating 
expenses of the Agency.  

Since  circumstances  have  changed,  the  Agency’s  statutes  will  be  updated  following  the 
Council decision, the draft of which is submitted together with this draft Regulation. In 2002 
the  Community  legislator  adopted  a  new  Financial  Regulation  applicable  to  the  general 
budget  of  the  European  Communities  and  pursuant  to  Article  185  thereof  a  framework 
financial regulation was prepared for the decentralised bodies. These two Regulations are not 
directly applicable to the Agency. 

For  several  years  now  the  Court  of  Auditors  has  requested  the  adoption  of  a  financial 
regulation  for  the  Agency  which  could  help  to  achieve  the  objectives  of  sound  financial 
management pursued by the institutions. Given these factors, it seemed appropriate to base the 
proposal  for  a  Financial  Regulation  for  the  Agency  on  the  framework  Financial  Regulation 
No 2343/2002, since the legal environment is broadly similar. However, that model has also 
been adapted to take account of the special features of the Agency: 

1. 

2. 

3. 

4. 

Since  the  Agency’s  budget  is  small,  the  budgetary  authority  is  the  Commission,  in 
accordance  with  the  Agency’s  statutes;  however,  for  the  sake  of  transparency  and 
consistency  with  the  Framework  Regulation  for  the  other  Community  bodies,  the 
discharge authority becomes Parliament, on the Council’s recommendation; 

The Agency can be covered by the Commission’s accounting consolidation exercise; 

The Financial Regulation for the Agency does not require implementing rules but, in 
the absence of rules expressly laid down in it, the provisions of the general Financial 
Regulation  and  of  Commission  Regulation  (EC,  Euratom)  No  2342/2002  of  23 
December  2002  laying  down  detailed  rules  for  the  implementation  of  Council 
Regulation (EC, Euratom)  No  1605/2002 on the Financial Regulation applicable to 
the general budget of the European Communities apply; 

Although  the  Agency  is  not  one  of  the  bodies  cited  in  Article  185  of  the  general 
Financial  Regulation,  its  internal  auditing  function  is  performed  by  the  Internal 
Auditing Service of the Commission. 

Under Article 8(10) of the Agency’s statutes, the Financial Regulation for the Agency should 
be adopted in accordance with Article 185 of the said Regulation.  

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2007/0042 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on the Financial Regulation applicable to the Euratom Supply Agency 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Article 183 thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having regard to the opinions of the Advisory Committee of the Agency and of the Court of 
Auditors, 

Whereas:  

(1) 

(2) 

(3) 

(4) 

The Euratom Supply Agency (hereinafter “the Agency”), which was set up to perform 
certain  activities  relating  to  the  supplying  of  ores,  raw  materials  and  special  fissile 
materials,  has  legal  personality  and  hence  its  own  budget  which  is  intended  to  be 
governed by specific financial rules. 

To  ensure  the  consistency  of  the  Agency’s  financial  rules  with  Council  Regulation 
(EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable 
to  the  general  budget  of  the  European  Communities1,  it  is  appropriate,  since  the 
Agency  receives  a  grant  charged  to  the  Community  budget,  that  the  implementation 
and control of its budget should be based as far as possible on Commission Regulation 
(EC,  Euratom)  No  2343/20022  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, taking the specific features of the Agency into account. 

For  the  purposes  of  establishing  and  implementing  the  budget,  the  four  fundamental 
principles  of  budgetary  law  (unity,  annuality,  universality,  specification),  and  the 
principles  of  budgetary  accuracy,  equilibrium,  unit  of  account,  sound  financial 
management and transparency must be reasserted. 

It is necessary to define the powers and responsibilities of the accounting officer, the 
internal auditor and authorising officers. The last mentioned are fully responsible for 
all revenue and expenditure operations executed under their authority and must be held 

1 
2 

OJ L 248, 16.9.2002, p. 1. 
OJ L 357, 31.12.2002, p. 72. 

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(5) 

(6) 

(7) 

(8) 

(9) 

accountable  for  their  actions,  including,  where  necessary,  through  disciplinary 
proceedings.  The  internal  audit  function  must  be  performed  by  the  Commission’s 
internal auditor. 

The  timetable  for  establishing  the  budget,  presenting  the  accounts  and  granting 
discharge can, where relevant, be aligned on the equivalent provisions of Regulation 
(EC,  Euratom)  No  1605/2002.  Discharge  should  be  given  to  the  Director-General  of 
the Agency by Parliament on the recommendation of the Council. 

Each  section  of  the  budget  includes  an  establishment  plan.  The  staff  of  the  Agency 
should appear separately in the Commission establishment plan. 

The  Agency  should  have  access  to  the  panel  set  up  by  the  Commission  to  examine 
irregularities so that a similar assessment can be made of identical cases. 

The Agency should observe the same requirements as the institutions in the award of 
public contracts. In this respect, reference should be made to the relevant provisions of 
Regulation (EC, Euratom) No 1605/2002. 

The  Agency  may,  for  the  performance  of  the  tasks  entrusted  to  it,  employ  external 
private  sector  bodies  only  where  necessary  and  not  for  tasks  involving  any  public 
service mission or any use of discretionary powers of judgment, in order to guarantee 
that the Agency is accountable for the implementation of its budget and adheres to the 
objectives assigned to it when it was set up. 

(10)  The Agency should submit a cash-flow forecast in support of its requests for payment 

of the Community subsidy. 

(11) 

In  view  of  the  regulatory  requirements  arising  from  the  statutes  of  the  Agency,  the 
procedure for presenting the accounts should be adapted. 

HAS ADOPTED THIS REGULATION: 

TITLE I - SCOPE 

Article 1 

This  Regulation  sets  out  the  principles  and  basic  rules  for  establishing  and 

1. 
implementing the Agency’s budget. 

2. 

For the purposes of this Regulation: 

(a) 

(b) 

“budgetary  authority”  means  the  European  Parliament  and  the  Council  of  the 
European Union. 

“statutes” means the new statutes of the Agency adopted by Council Decision 
of xx xxxxx 200x. 

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TITLE II – BUDGETARY PRINCIPLES 

Article 2 

The Agency’s budget shall be established and implemented in compliance with the principles 
of  unity,  budgetary  accuracy,  annuality,  equilibrium,  unit  of  account,  universality, 
specification, sound financial management and transparency as set out in this Regulation. 

CHAPTER 1: Principles of unity and budget accuracy 

The budget is the instrument which, for each financial year, forecasts and authorises the revenue 
and expenditure considered necessary for the Agency. 

Article 3 

The Agency’s budget shall comprise: 

Article 4 

own revenue consisting of the interest and return on its capital and bank investments 

1. 
and the commission on transactions as provided for in Article 10 of the statutes; 

a  grant  determined  by  the  budgetary  authority  as  part  of  the  general  budget  of  the 

2. 
Communities; 

3. 

4. 

revenue assigned to specific items of expenditure in accordance with Article 17(1); 

the Agency’s administrative expenditure; 

special  financial  rules  will  be  adopted  to  enable  the  Agency  to  use  loans  as  a 

5. 
budgetary source (in accordance with Article VI(3) of the statutes).  

Article 5 

No revenue shall be collected and no expenditure effected unless booked to a line in 

1. 
the budget. 

An  appropriation  must  not  be  entered  in  the  budget  if  it  is  not  for  an  item  of 

2. 
expenditure considered necessary. 

No  expenditure  may  be  committed  or  authorised  in  excess  of  the  appropriations 

3. 
authorised by the budget. 

Interest yielded by funds which are the property of the Agency shall be entered in the 

4. 
budget as revenue. 

Special  financial  rules  will  be  adopted  on  the  use  of  any  loans  contracted  by  the 

5. 
Agency. 

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CHAPTER 2: Principle of annuality 

Article 6 

The appropriations entered in the budget shall be authorised for one financial year which shall 
run from 1 January to 31 December. 

Article 7 

The  budget  shall  contain  non-differentiated  appropriations,  which  shall  consist  of 

1. 
commitment appropriations and payment appropriations. 

Commitment  appropriations  shall  cover  the  total  cost  of  the  legal  commitments 

2. 
entered into during the current financial year. 

Payment appropriations shall cover payments made to honour the legal commitments 

3. 
entered into in the current financial year and/or earlier financial years. 

Administrative 

appropriations. 
shall 
4. 
Administrative  expenditure  arising  from  contracts  covering  periods  that  extend  beyond  the 
financial year, either in accordance with local practice or relating to the supply of equipment, 
shall be charged to the budget of the financial year in which it is effected. 

non-differentiated 

appropriations 

be 

Article 8 

The revenue of the Agency referred to in Article 4 shall be entered in the accounts for 

1. 
the financial year on the basis of the amounts collected during the financial year. 

The  revenue  of  the  Agency  shall  give  rise  to  an  equivalent  amount  of  payment 

2. 
appropriations. 

3. 
The appropriations authorised in the budget for a given year may be used solely to cover 
expenditure  committed  and  paid  in  that  financial  year,  and  to  cover  amounts  due  against 
commitments from preceding financial years. 

Commitments shall be entered in the accounts on the basis of the legal commitments 

4. 
entered into up to 31 December. 

Payments  shall  be  entered  in  the  accounts  for  a  financial  year  on  the  basis  of  the 

5. 
payments effected by the accounting officer by 31 December of that year. 

Article 9 

Appropriations  which  have  not  been  used  at  the  end  of  the  financial  year  for  which 

1. 
they were entered shall be cancelled. 

Appropriations  corresponding  to  obligations  duly  contracted  at  the  close  of  the 

2. 
financial year shall be carried over automatically to the following financial year only.  

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The  appropriations  available  at  31 December  arising  from  the  assigned  revenue 

3. 
referred to in Article 17 shall be carried over automatically. 

The appropriations available corresponding to earmarked revenue carried over must be used 
first. 

Article 10 

Where  amounts  are  decommitted,  as  a  result  of  total  or  partial  non-implementation  of  the 
actions  for  which  they  were  earmarked,  in  any  financial  year  after  that  in  which  the 
appropriations were committed, the appropriations concerned shall be cancelled. 

Article 11 

The appropriations entered in the budget may be committed with effect from 1 January, once 
the budget has become definitive. 

CHAPTER 3: Principle of equilibrium 

Article 12 

1. 

Budget revenue and payment appropriations shall be in balance. 

Appropriations  may  not  exceed  the  amount  of  the  Community  subsidy,  plus  own 

2. 
revenue and any other revenue referred to in Article 4. 

3 
Funds paid to the Agency shall constitute for its budget a balancing subsidy which shall 
count as pre-financing within the meaning of Article 81(1)(b)(i) of Regulation (EC, Euratom) 
No 1605/2002. 

Article 13 

1. 
If the balance of the outturn account within the meaning of Article 76 is positive, it 
shall be repaid to the Commission up to the amount of the Community subsidy paid during 
the year.  

The  difference  between  the  Community  subsidy  entered  in  the  general  budget  of  the 
European  Communities  (hereinafter  “the  general  budget”)  and  that  actually  paid  to  the 
Agency shall be cancelled. 

If the balance of the outturn account provided for in Article 76 is negative, it shall be 

2. 
entered in the budget for the following financial year. 

The  revenue  or  payment  appropriations  shall  be  entered  in  the  budget  during  the 
letter  of  amendment  procedure  or,  while  budget 

3. 
budgetary  procedure  using 
the 
implementation is under way, by means of an amending budget. 

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CHAPTER 4: Principle of unit of account 

Article 14 

The budget shall be drawn up and implemented in euro and the accounts shall be presented 
in euro. 

However,  for  cash-flow  purposes,  the  accounting  officer  shall  be  authorised  to  carry  out 
operations in national currencies. 

Article 15 

1. 
If the Agency’s budget has not been adopted at the beginning of the financial year, the 
following rules shall apply to the commitment and payment of expenditure which it has been 
possible to book to a specific budget line as part of the implementation of the last budget duly 
adopted. 

2. 
Commitments may be made per chapter up to a maximum of one quarter of the total 
appropriations authorised in that chapter for the previous financial year, plus one twelfth for 
each month which has elapsed. 

Payments  may  be  made  monthly  per  chapter  up  to  a  maximum  of  one  twelfth  of  the 
appropriations authorised in that chapter for the preceding financial year. 

The limit on the appropriations provided for in the estimate of revenue and expenditure may 
not be exceeded. 

3. 
At the request of the Director-General, if the continuity of action by the Agency and 
management  needs  so  require,  the  Commission  may  simultaneously  authorise  two  or  more 
provisional twelfths for both commitments and payments over and above those automatically 
made available by the provisions of paragraphs 1 and 2. 

The additional twelfths shall be authorised in full and shall not be divisible. 

CHAPTER 5: Principle of universality 

Article 16 

Total  revenue  shall  cover  total  payment  appropriations,  subject  to  Article  17.  All  revenue 
and expenditure shall be entered in full without any adjustment against each other, subject 
to Article 19. 

Article 17 

The  following  items  of  revenue  shall  be  used  to  finance  specific  items  of 

1. 
expenditure: 

(a) 

revenue  earmarked  for  a  specific  purpose,  such  as  income  from  donations, 
subsidies, gifts and bequests; 

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(b) 

additional capital subscriptions by the Member States if such funds are granted 
or  intended  for  specified  activities  or  expenditure  of  the  Agency,  and  if  the 
Council so decides.  

All  items  of  revenue  within  the  meaning  of  paragraph  1  shall  cover  all  direct  or 

2. 
indirect expenditure incurred by the activity or purpose in question. 

The budget shall carry headings to accommodate the categories of assigned revenue 

3. 
referred to in paragraph 1 and wherever possible shall indicate the amount. 

Article 18 

1. The Director-General may accept any donation made to the Agency, such as grants, gifts 
and bequests. 

2. Acceptance of donations which may involve some financial charge shall be subject to the 
prior authorisation of the Commission, which shall take a decision within two months of the 
date  on  which  the  request  was  submitted  to  it.  If  the  Commission  fails  to  take  a  decision 
within that period, the donation shall be deemed accepted. 

Article 19 

The amounts which may be deducted from payment requests, invoices or statements, 

1. 
which shall then be passed for payment of the net amount, are: 

(a) 

(b) 

penalties imposed on parties to contracts, including procurement contracts; 

adjustments for  amounts paid unduly,  which  can  be  made  by  means  of  direct 
deduction against a new payment of the same type to the same payee under the 
chapter, article and financial year in respect of which the excess payment was 
made, and which give rise to interim payments or payments of balances. 

Discounts,  refunds  and  rebates  on  invoices  and  payment  requests  shall  not  be  recorded  as 
Agency revenue. 

The cost of products or services provided to the Agency shall be charged to the budget 

2. 
for the full ex-tax amount, where they incorporate taxes refunded: 

(a) 

(b) 

either  by  the  Member  States  pursuant  to  the  Protocol  on  the  Privileges  and 
Immunities of the European Communities; 

or  by  a  Member  State  or  non-member  country  on  the  basis  of  other  relevant 
agreements. 

Any  national  taxes  temporarily  borne  by  the  Agency  under  the  first  subparagraph  shall  be 
entered in a suspense account until they are refunded by the State concerned. 

3. 

Any negative balance shall be entered in the budget as expenditure. 

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4. 
Adjustments  may  be  made  in  respect  of  exchange  differences  occurring  in  the 
implementation of the budget. The final gain or loss shall be included in the balance for the 
year. 

CHAPTER 6: Principle of specification 

The  appropriations  in  their  entirety  shall  be  earmarked  for  specific  purposes  by  title  and 
chapter; the chapters shall be further subdivided into articles and items. 

Article 20 

Article 21 

The  Director-General  may  make  transfers  from  one  article  to  another  within  each 

1. 
chapter. He/she shall inform the Commission of this as soon as possible. 

2. 
The  Director-General  may  make  transfers  from  one  title  to  another  and  from  one 
chapter to another within a limit of 10% of the appropriations for the financial year. Beyond 
this limit, he/she may propose to the Commission transfers of appropriations from one title to 
another or from one chapter to another within a title. The Commission shall have one month 
in which to oppose such transfers; after this time limit they shall be deemed to be adopted. 

Proposals  for  transfers  and  transfers  carried  out  under  this  Article  shall  be 
3. 
accompanied by appropriate and detailed supporting documents showing the implementation 
of appropriations and estimates of requirements up to the end of the financial year, both for 
the headings to be credited and for those from which the appropriations are drawn. 

Article 22 

Appropriations  may  be  transferred  only  to  budget  lines  for  which  the  budget  has 

1. 
authorised appropriations or carries a token entry (p.m.). 

Appropriations  corresponding  to  assigned  revenue  may  be  transferred  only  if  they  are 

2. 
used for the purpose to which the revenue is assigned. 

CHAPTER 7: Principle of sound financial management 

Article 23 

Budget appropriations shall be used in accordance with the principle of sound financial 
1. 
management,  namely  in  accordance  with  the  principles  of  economy,  efficiency  and 
effectiveness. 

The principle of economy requires that the resources used by the Agency for the pursuit 
2. 
of its activities shall be made available in due time, in appropriate quantity and quality and at 
the best price. 

The  principle  of  efficiency  is  concerned  with  the  best  relationship  between  resources 

3. 
employed and results achieved. 

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The principle of effectiveness is concerned with attaining the specific objectives set and 

4. 
achieving the intended results. 

CHAPTER 8: Principle of transparency 

Article 24 

The  budget  shall  be  established  and  implemented  and  the  accounts  presented  in  compliance 
with the principle of transparency. 

The  budget  and  amending  budgets,  as  finally  adopted,  shall  be  published  on  the  Agency’s 
website. 

TITLE III – ESTABLISHMENT AND STRUCTURE OF THE BUDGET 

CHAPTER 1: Establishment of the budget 

Article 25 

The preliminary budget shall be drawn up by the Director-General in accordance with 

1. 
the statutes of the Agency. 

2. 
Having obtained the opinion of the Advisory Committee, the Director-General of the 
Agency shall send the Commission an estimate of the Agency's revenue and expenditure as 
well as its work programme by 31 March each year. 

The estimate shall include an establishment plan setting the number of permanent and 

3. 
temporary posts at the Agency3. 

As part of the procedure for adopting the general budget, the Commission shall take 
4. 
account  of  the  Agency’s  estimate  in  order  to  determine  the  amount  of  the  subsidy  for  the 
Agency and the number of staff it considers that the Agency needs. 

The  budgetary  authority  shall  adopt  the  establishment  plan  of  the  Agency  and  any 

5. 
subsequent amendment thereof. 

The budget and the establishment plan shall be adopted by the Commission after final 
6. 
adoption of the general budget setting the amount of the subsidy and the establishment plan 
and, if necessary, shall be adjusted accordingly. 

Any amendment of the budget, including the establishment plan, shall be the subject of an 
amending budget adopted by the same procedure as the initial budget. 

Article 26 

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In  accordance  with  Article  30  of  Regulation (EC,  Euratom)  No 2342/2002,  Agency  staff  appear 
separately in the Commission establishment plan. 

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CHAPTER 2: Structure and presentation of the budget 

The budget shall comprise a statement of revenue and a statement of expenditure. 

Article 27 

Article 28 

The budget shall show: 

1) 

in the statement of revenue: 

(a) 

(b) 

the estimated revenue of the Agency for the financial year in question; 

the estimated revenue for the preceding financial year and the revenue for year 
n-2; 

(c) 

appropriate remarks on each revenue line. 

2) 

in the statement of expenditure: 

(a) 

the commitment appropriations for the financial year in question; 

(b) 

the  commitment  appropriations  for  the  preceding  financial  year  and  the 
expenditure committed during the financial year n-2; 

(c) 

appropriate remarks on each subdivision. 

Article 29 

The  establishment  plan  referred  to  in  Article  25  shall  show  next  to  the  number  of  posts 
authorised for the financial year, the number authorised for the preceding year and the number 
of posts actually filled. 

It shall constitute an absolute limit for the Agency; no appointment may be made in excess 
of the limit set. 

TITLE IV – IMPLEMENTATION OF THE BUDGET 

CHAPTER 1: General provisions 

Article 30 

The Director-General shall perform the duties of authorising officer. He/she shall implement the 
revenue and expenditure of the budget in accordance with the financial rules of the Agency, on 
his/her  own  responsibility,  in  the  departments  placed  under  his/her  authority  and  within  the 
limits of the allotted appropriations. 

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Article 31 

The  Director-General  may  delegate  his/her  powers  of  budget  implementation  to  Agency  staff 
covered by the rules and regulations applicable to officials and other servants of the European 
Communities.  Those  so  empowered  may  act  only  within  the  limits  of  the  powers  expressly 
conferred upon them. 

Article 32 

1. 
All  financial  actors  within  the  meaning  of  Chapter  2  of  this  title  shall  be  prohibited 
from taking any measures to implement the budget which may bring their own interests into 
conflict with those of the Agency. Should such a case arise, the actor in question must refrain 
from such measures and refer the matter to the competent authority. 

2. 
There  is  a  conflict  of  interest  where  the  impartial  and  objective  exercise  of  the 
functions  of  a  player  in  the  implementation  of  the  budget  or  an  internal  auditor  is 
compromised  for  reasons  involving  family,  emotional  life,  political  or  national  affinity, 
economic interest or any other shared interest with the beneficiary. 

The competent authority referred to in paragraph 1 shall be the immediate superior of 
3. 
the member of staff concerned. If the member of staff is the Director-General, the competent 
authority shall be the Commission. 

Article 33 

Where  necessary,  technical  expertise  tasks  and  administrative,  preparatory  or  ancillary  tasks 
involving  neither  the  exercise  of  public  authority  nor  the  use  of  discretionary  powers  of 
judgment may be entrusted by contract to external private-sector entities or bodies. 

CHAPTER 2: Financial players 

Section 1: Principle of segregation of duties 

Article 34 

The  duties  of  authorising  officer  and  accounting  officer  shall  be  segregated  and  mutually 
incompatible. 

Section 2: Authorising officer 

Article 35 

1. 
The authorising officer shall be responsible for implementing revenue and expenditure 
in  accordance  with  the  principles  of  sound  financial  management  and  for  ensuring  that  the 
requirements of legality and regularity are complied with. 

To implement expenditure, the authorising officer shall make budget commitments and 
2. 
legal commitments, shall validate expenditure and authorise payments and shall undertake the 
preliminaries for the implementation of appropriations. 

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3. 
Implementation of revenue shall comprise drawing up estimates of amounts receivable, 
establishing  entitlements  to  be  recovered,  issuing  recovery  orders  and  sending  debit  notes.  It 
shall involve waiving established entitlements where appropriate. 

As  authorising  officer  for  the  Agency,  the  Director-General  shall  put  in  place  the 
4. 
organisational structure and the management and internal control systems and procedures suited 
to  the  performance  of  the  Agency’s  tasks.  These  shall  be  reasonably  adapted  from  the 
Commission’s  internal  control  standards,  taking  account  of  the  low  level  of  risks  associated 
with the management environment and the nature of the measures financed by the Agency. 

5. 
Before  a  transaction  is  authorised,  the  operational  and  financial  aspects  shall  be 
verified  by  officials  other  than  the  official  who  initiated  it.  The  initiation  and  the  ex  ante 
verification of an operation shall be separate functions. 

6. 
The  authorising  officer  shall  conserve  the  supporting  documents  relating  to 
operations  carried  out  for  a  period  of  five  years  from  the  date  of  the  decision  granting 
discharge for implementation of the budget. 

Article 36 

1. 
Initiation of an operation as referred to in Article 35(5) shall be understood to mean 
all the operations which are preparatory to the adoption of the acts implementing the budget 
by the authorising officers responsible referred to in Articles 30 and 31. 

2. 
Ex  ante  verification  of  an  operation  as  referred  to  in  Article  35(5)  shall  be 
understood to mean all the ex ante checks put in place by the authorising officer responsible 
in order to verify the operational and financial aspects. 

Each operation shall be subject at least to an ex ante verification. The purpose of that 

3. 
verification shall be to ascertain that: 

(a) 

the expenditure is in order and conforms to the relevant provisions; 

(b) 

the principle of sound financial management referred to in Article 23 has been 
applied. 

4. 
The  officials  or  other  staff  responsible  for  the  verification  functions  referred  to  in 
paragraph 2  are  separate  from  those  carrying  out  the  initiation  tasks  referred  to  in 
paragraph 1 and are not subordinate to them. 

5. 
All  staff  responsible  for  scrutinising  the  management  of  financial  operations  must 
have  the  necessary  professional  skills  and  respect  a  specific  code  based  on  standards  laid 
down by the Commission for its own departments. 

Article 37 

The Director-General shall report to the Commission on the performance of his/her duties as 
an  authorising  officer  in  the  form  of  an  annual  activity  report  (hereinafter  “authorising 
officer’s report”), together with financial and management information. 

EN 

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The report shall cover the results of his/her operations by reference to the objectives set, the 
risks  associated  with  those  operations,  the  use  made  of  the  resources  provided  and  the 
functioning  of  the  internal  control  system.  The  internal  auditor  within  the  meaning  of 
Article 66 shall take note of the annual activity report and any other pieces of information 
identified. 

Article 38 

Any member of staff involved in the financial management and control of transactions who 
considers  that  a  decision  he/she  is  required  by  his/her  superior  to  apply  or  to  agree  to  is 
illegal,  irregular  or  contrary  to  the  principles  of  sound  financial  management  or  the 
professional rules he/she is required to observe shall inform the Director-General in writing 
and,  if  the  latter  fails  to  take  action  within  a  reasonable  period,  the  panel  referred  to  in 
Article 43(4). In the event of any illegal activity, fraud or corruption which may harm the 
interests of the Community, he/she shall inform the authorities and bodies designated by the 
applicable legislation. 

Article 39 

Where powers of budget implementation are delegated in accordance with Article 31, then 
Article 35(1),  (2)  and  (3)  shall  apply  mutatis  mutandis  to  the  authorising  officers  by 
delegation. 

Section 3: Accounting officer 

Article 40 

1. 
The  Commission  shall  appoint  an  accounting  officer,  covered  by  the  Staff 
Regulations  of  officials  of  the  European  Communities,  who  shall  be  responsible  in  the 
Agency for: 

(a) 

implementing  payments  properly,  collecting  revenue  and  recovering  amounts 
established as receivable; 

(b) 

preparing and presenting the accounts in accordance with Title VII; 

(c) 

keeping the accounts in accordance with Title VII; 

(d) 

(e) 

implementing, in accordance with Title VII, the accounting rules and methods 
and  the  chart  of  accounts  in  accordance  with  the  provisions  adopted  by  the 
Commission’s accounting officer; 

laying  down  and  validating  the  accounting  systems  and  where  appropriate 
validating  systems  laid  down  by  the  authorising  officer  to  supply  or  justify 
accounting information; 

(f) 

treasury management. 

EN 

17 

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2. 
The accounting officer shall obtain from the authorising officer, who shall guarantee its 
reliability, all the information necessary for the  production of accounts which give a true and 
fair view of the Agency’s assets and the budget’s implementation. 

The  accounting  officer  alone  shall  be  empowered  to  handle  monies  and  other  assets. 

3. 
He/she shall be responsible for their safekeeping. 

The accounting officer may delegate certain tasks to a subordinate covered by the Staff 

4. 
Regulations, where this is indispensable for the performance of his/her duties. 

The  instrument  of  delegation  shall  lay  down  the  tasks  entrusted  to  the  person 

5. 
empowered and his/her rights and obligations. 

CHAPTER 3: Liability of the financial players 

Section 1: General rules 

Article 41 

Without prejudice to any disciplinary action, authorising officers by delegation may at 
1. 
any  time  have  their  delegation  withdrawn  temporarily  or  definitively  by  the  authority  which 
appointed them. 

Without prejudice to any disciplinary action, the accounting officer may at any time be 
2. 
suspended  temporarily  or  definitively  from  his/her  duties  by  the  Commission.  The 
Commission shall appoint an interim accounting officer. 

Article 42 

The provisions of this chapter are without prejudice to the criminal-law liability which 
1. 
the authorising officer and the persons referred to in Article 41 may incur as provided for in the 
applicable  national  law  and  in  the  provisions  in  force  on  the  protection  of  the  Communities’ 
financial interests and on the fight against corruption involving officials of the Communities or 
officials of Member States. 

2. 
Each authorising officer or accounting officer shall be liable to disciplinary action and 
payment of compensation as provided for in the Staff Regulations, without prejudice to Articles 
43 or 44. In the event of illegal activity, fraud or corruption which may harm the interests of the 
Community,  the  matter  will  be  referred  to  the  authorities  and  bodies  designated  by  the 
applicable legislation. 

Section 2: Rules applicable to authorising officers by delegation 

Article 43 

1. 
The authorising officer shall be liable to payment of compensation as laid down in the 
Staff Regulations. Accordingly, he/she may be required to make good, in whole or in part, any 
damage  suffered  by  the  Communities  as  a  result  of  serious  misconduct  on  his/her  part  in  the 
course  of  or  in  connection  with  the  performance  of  his/her  duties,  in  particular  if  he/she 

EN 

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determines entitlements to be recovered or issues recovery orders, commits expenditure or signs 
a payment order without complying with this Financial Regulation and its implementing rules. 

The same shall apply where, through serious misconduct, he/she fails to draw up a document 
establishing  an  amount  receivable  or  if  he/she  fails  to  issue  a  recovery  order  or  is,  without 
justification, late in issuing it, or if he/she fails to issue a payment order or is late in issuing it, 
thereby rendering the Agency liable to civil action by third parties. 

An  authorising  officer  by  delegation  who  considers  that  a  decision  which  it  is  his/her 
2. 
responsibility  to  take  is  irregular  or  contrary  to  the  principles  of  sound  financial  management 
shall inform the delegating authority in writing. If the delegating authority then gives a reasoned 
instruction  in  writing  to  the  authorising  officer  by  delegation  to  implement  the  decision  in 
question,  the  latter  must  implement  it  and  may  not  be  held  liable;  he  shall  carry  out  the 
instruction, unless it constitutes a breach of criminal law or of the relevant safety standards. 

3. 
In the event of delegation, the authorising officer shall continue to be responsible for the 
effectiveness of the internal management and control systems put in place and for the choice of 
the authorising officer by delegation. 

The  panel  set  up  by  the  Commission  in  accordance  with  Article  66(4)  of  Regulation 
4. 
(EC,  Euratom)  No  1605/2002  to  determine  whether  a  financial  irregularity  has  occurred  and 
what  the  consequences,  if  any,  should  be  shall  exercise  the  same  powers  in  respect  of  the 
Agency as it does in respect of Commission departments. 

On  the  basis  of  the  panel’s  opinion,  the  Director-General  shall  decide  whether  to  initiate 
disciplinary proceedings or proceedings for the payment of compensation. If the panel detects 
systemic problems, it shall send a report with recommendations to the authorising officer and to 
the  Commission’s  internal  auditor.  If  the  opinion  implicates  the  Director-General,  the  panel 
shall send it to the internal auditor and the Commission. 

Any member of staff may be required to make good, in whole or in part, any damage 
5. 
suffered by the Agency as a result of serious misconduct on his/her part in the course of or in 
connection with the performance of his/her duties. 

The  appointing  authority  shall  take  a  reasoned  decision,  after  completing  the  formalities  laid 
down by the Staff Regulations with regard to disciplinary matters. 

Section 3: Rules applicable to accounting officers 

Article 44 

An accounting officer may be liable to disciplinary action and payment of compensation, as 
laid  down  in  the  Staff  Regulations  of  officials  of  the  European  Communities,  in  particular 
where: 

he/she loses or damages monies, assets and documents in his/her keeping or causes them 

1. 
to be lost or damaged by his/her negligence; 

he/she  alters  bank  accounts  or  postal  giro  accounts  without  notifying  the  authorising 

2. 
officer in advance; 

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19 

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he/she  recovers  or  pays  amounts  which  are  not  in  conformity  with  the  corresponding 

3. 
recovery or payment orders; 

4. 

he/she fails to collect revenue due. 

CHAPTER 4: Revenue operations 

Section 1: General provisions 

Article 45 

The  Agency  shall  present  to  the  Commission  requests  for  payment  of  all  or  part  of  the 
Community  subsidy,  supported  by  a  cash-flow  forecast,  under  terms  and  at  intervals  agreed 
with the Commission. 

Article 46 

The funds paid to the Agency by the Commission by way of the subsidy shall bear interest for 
the benefit of the general budget. 

Section 2: Estimate of amounts receivable 

Article 47 

An  estimate  of  the  amount  receivable  shall  be  made  in  advance  by  the  authorising  officer 
responsible in respect of any measure or situation which may give rise to or modify an amount 
owed to the Agency. 

Section 3: Establishment of amounts receivable 

Establishment  of  an  amount  receivable  is  the  act  by  which  the  authorising  officer  or 

1. 
authorising officer by delegation: 

Article 48 

(a) 

verifies that the debt exists; 

(b) 

determines or verifies the reality and amount of the debt; 

(c) 

verifies the conditions in which the debt is due. 

2. 
Any  amount  receivable  that  is  identified  as  being  certain,  of  a  fixed  amount  and  due 
must be established by a recovery order given to the accounting officer, accompanied by a debit 
note sent to the debtor. Both of these documents shall be drawn up and sent by the authorising 
officer responsible. 

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20 

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3.  Without  prejudice  to  the  provisions  laid  down  in  the  rules,  contract  or  agreement 
applicable, any debt not repaid on the due date laid down in the debit note shall bear interest in 
accordance  with  the  detailed  rules  for  the  implementation  of  Regulation  (EC,  Euratom)  No 
1605/2002. 

In  duly  substantiated  cases,  certain  routine  revenue  items  may  be  established 

4. 
provisionally. 

Provisional  establishment  shall  cover  the  recovery  of  several  individual  amounts  which  need 
not therefore be established individually. 

Before the end of the financial year, the authorising officer shall amend the amounts established 
provisionally to ensure that they correspond to the amounts receivable actually established. 

Section 4: Authorisation of recovery 

Article 49 

The authorisation of recovery is the act whereby the authorising officer responsible instructs the 
accounting officer, by issuing a recovery order, to recover an amount receivable which he/she 
has established. 

Section 5: Recovery 

1. 

Amounts wrongly paid shall be recovered. 

Article 50 

2. 
The accounting officer acts on recovery orders for amounts receivable duly established 
by  the  authorising  officer  responsible.  He/she  shall  exercise  due  diligence  to  ensure  that  the 
Agency receives its revenue and shall see that its rights are safeguarded. 

3. 
Where  the  authorising  officer  responsible  is  planning  to  waive  recovery  of  an 
established amount receivable, he/she shall ensure that the waiver is in order and complies with 
the principle of sound financial management. 

Such a waiver shall be by decision of the authorising officer, which must be substantiated. The 
authorising officer may not delegate such a decision. 

The waiver decision shall state what action has been taken to secure recovery and the points of 
law and fact on which it is based. 

4. 
The authorising officer responsible shall cancel an established amount receivable when 
the  discovery  of  a  mistake  as  to  a  point  of  law  or  fact  reveals  that  the  amount  had  not  been 
correctly  established.  Such  cancellation  shall  be  by  decision  of  the  authorising  officer 
responsible and shall be suitably substantiated. 

5. 
The  authorising  officer  responsible  shall  adjust  the  amount  of  an  established  debt 
upwards or downwards when the discovery of a factual error entails the alteration of the amount 
of the debt, provided that this correction does not involve the loss of the established entitlement 

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of the Agency. Such an adjustment shall be by decision of the authorising officer responsible 
and shall be suitably substantiated. 

Upon actual recovery of the sum due, the accounting officer shall make an entry in the accounts 
and shall inform the authorising officer responsible. 

Article 51 

Article 52 

If actual recovery has not taken place by the due date stipulated in the debit note, the 
1. 
accounting officer shall inform the authorising officer responsible and immediately launch, after 
informing  the  debtor,  the  procedure  for  effecting  recovery  by  any  means  offered  by  the  law, 
including, where appropriate, by offsetting and, if this is not possible, by enforced recovery.  

2. 
The  accounting  officer  shall  recover  amounts  by  offsetting  them  against  equivalent 
claims that the Agency has on any debtor who himself or herself has a claim on the Agency that 
is certain, of a fixed amount and due, provided that offsetting is legally possible. 

Article 53 

The  accounting  officer,  in  collaboration  with  the  authorising  officer  responsible,  may  allow 
additional time for payment only at the written request of the debtor, with due indication of the 
reasons, provided that the following two conditions are met: 

1. 
the  debtor  undertakes  to  pay  interest  at  the  rate  specified  by  the  detailed  rules  for 
implementation  of  Regulation  (EC,  Euratom)  No  1605/2002  for  the  entire  additional  period 
allowed, starting from the date on which the payment was originally due; 

in order to safeguard the rights of the Agency, the debtor provides a financial guarantee 

2. 
covering both the principal sum and the interest. 

Section 6: Specific provisions applicable to fees and charges 

Article 54 

The Director-General shall adopt the specific provisions applicable to fees and charges. 

CHAPTER 5: Expenditure operations 

Every item of expenditure shall be committed, validated, authorised and paid. 

Article 55 

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Section 1: Commitment of expenditure 

Article 56 

The  budget  commitment  is  the  operation  reserving  the  appropriations  necessary  to 

1. 
cover subsequent payments to honour a legal commitment. 

The legal commitment is the act whereby the authorising officer responsible enters 

2. 
into or establishes an obligation which results in a charge for the budget.  

The  budgetary  commitment  and  the  legal  commitment  shall  be  adopted  by  the  same 
authorising officer, save in duly substantiated cases as provided for in the detailed rules for 
the implementation of the Regulation (EC, Euratom) No 1605/2002. 

The budgetary commitment shall be individual when the beneficiary and the amount 

3. 
of the expenditure are known. 

The budget commitment shall be global when at least one of the elements necessary 

4. 
to identify the individual commitment is still not known. 

5. 
The  budget  commitment  shall  be  provisional  when  it  is  intended  to  cover  routine 
administrative  expenditure  and  either  the  amount  or  the  final  beneficiaries  are  not 
definitively known. 

The provisional budget commitment shall be implemented either by the conclusion of one 
or more individual legal commitments giving rise to an entitlement to subsequent payments 
or, in exceptional cases relating to expenditure on staff management, directly by payments. 

Article 57 

1. 
In  respect  of  any  measure  which  may  give  rise  to  expenditure  chargeable  to  the 
budget, the authorising officer responsible must first make a budgetary commitment before 
entering into a legal obligation with third parties. 

Individual 

2. 
legal  commitments 
commitments shall be concluded by 31 December of year n. 

relating 

to 

individual  or  provisional  budget 

At the end of the periods referred to in the first subparagraph, the unused balance of these 
budget commitments shall be decommitted by the authorising officer responsible. 

3. 
The  legal  commitments  entered  into  for  actions  extending  over  more  than  one 
financial year and the corresponding budgetary commitments shall, save in the case of staff 
expenditure,  have  a  final  date  for  implementation  set  in  compliance  with  the  principle  of 
sound financial management. 

Any  parts  of  such  commitments  which  have  not  been  executed  six  months  after  that  final 
date shall be decommitted in accordance with Article 10. 

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Article 58 

When  adopting  a  budgetary  commitment,  the  authorising  officer  responsible  shall  ensure 
that: 

1. 

2. 

the expenditure has been charged to the correct item in the budget; 

the appropriations are available; 

the  expenditure  conforms  to  the  applicable  provisions,  in  particular  those  of  the 

3. 
statutes and rules of the Agency and all acts adopted pursuant to them; 

4. 

the principle of sound financial management has been complied with. 

Section 2: Validation of expenditure 

Article 59 

Validation of expenditure is the act whereby the authorising officer responsible: 

1. 

2. 

3. 

verifies the existence of the creditor’s entitlement; 

verifies the conditions in which payment is due; 

determines or verifies the reality and the amount of the claim. 

Article 60 

1. 
Validation of any expenditure shall be based on supporting documents attesting the 
creditor’s  entitlement,  on  the  basis  of  a  statement  of  services  actually  rendered,  supplies 
actually delivered or work actually carried out, or on the basis of other documents justifying 
payment. 

The  decision  validating  the  expenditure  shall  be  expressed  by  the  signing  of  a 

2. 
“passed for payment” voucher by the authorising officer responsible. 

3. 
In a non-computerised system, “passed for payment” shall take the form of a stamp 
incorporating the signature of the authorising officer responsible. In a computerised system, 
“passed for payment” shall take the form of validation using the personal password of the 
authorising officer responsible. 

Section 3: Authorisation of expenditure 

Article 61 

1. 
Authorisation of expenditure is the act whereby the authorising officer responsible, by 
issuing a payment order, instructs the accounting officer to pay an item of expenditure which he 
has validated. 

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2. 
The payment order shall be dated and signed by the authorising officer responsible, then 
sent to the accounting officer. The supporting documents shall be kept by the authorising officer 
responsible in accordance with Article 35(6). 

Where  appropriate,  the  payment  order  sent  to  the  accounting  officer  shall  be 
3. 
accompanied  by  a  document  certifying  that  the  goods  have  been  entered  in  the  inventories 
referred to in Article 85(1). 

Section 4: Payment of expenditure 

Article 62 

1. 
Payment shall be made on production of proof that the relevant action has been carried 
out  in  accordance  with  the  provisions  of  the  basic  act  within  the  meaning  of  Article  49  of 
Regulation  (EC,  Euratom)  N°  1605/2002  and  the  contract,  and  shall  cover  one  of  the 
following operations: 

(a) 

payment of the entire amount due; 

(b) 

payment of the amount due in any of the following ways: 

– 

– 

– 

pre-financing, which may be divided into a number of payments, 

one or more interim payments; 

payment of the balance of the amounts due. 

Prefinancing shall count in full or in part against the interim payments. 

The entire prefinancing and interim payments shall count against the payment of balances. 

A  distinction  shall  be  made  in  the  accounts  between  the  different  types  of  payment 

2. 
referred to in paragraph 1 at the time they are made. 

Article 63 

Payment of expenditure shall be made by the accounting officer within the limits of the funds 
available. 

Section 5: Time limits for expenditure operations 

Article 64 

The validation, authorisation and payment of expenditure must be carried out within the time 
limits  specified  in,  and  in  accordance  with  the  provisions  of,  the  detailed  rules  for  the 
implementation of Regulation (EC, Euratom) No 1605/2002. 

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CHAPTER 6: IT systems 

Article 65 

Where  revenue  and  expenditure  operations  are  managed  by  means  of  computer  systems, 
documents may be signed by a computerised or electronic procedure. 

CHAPTER 7: Internal auditor 

Article 66 

The  Agency  shall  have  an  internal  auditing  function  which  must  be  performed  in 

1. 
compliance with the relevant international standards. 

The  Commission’s  internal  auditor  shall  exercise  the  same  powers  with  respect  to  the 

2. 
Agency as with respect to Commission departments. 

Article 67 

1. 
The  internal  auditor  shall  advise  the  Agency  on  dealing  with  risks,  by  issuing 
independent  opinions  on  the  quality  of  management  and  control  systems  and  by  issuing 
recommendations for improving the conditions of implementation of operations and promoting 
sound financial management. 

He/she shall be responsible for: 

(a) 

(b) 

assessing the suitability and effectiveness of internal management systems and 
the  performance  of  departments  in  implementing  programmes  and  actions  by 
reference to the risks associated with them; 

assessing the suitability  and  quality  of  the internal control  systems applicable 
to every budgetary implementation operation. 

2. 
The  internal  auditor  shall  perform  his/her  duties  with  regard  to  all  the  Agency’s 
activities  and  departments.  He/she  shall  enjoy  full  and  unlimited  access  to  all  information 
required to perform his/her duties. 

The  internal  auditor  shall  report  his/her  findings  and  recommendations  to  the 
taken  on 

the  Director-General.  They  shall  ensure 

that  action 

3. 
Commission  and 
recommendations resulting from audits. 

is 

4. 
The internal auditor shall submit to the Agency  an  annual  internal  audit  report  setting 
out, inter alia, the number and type of internal audits conducted, the recommendations made and 
the action taken on these recommendations. The annual report shall also mention any systemic 
problems  detected  by  the  specialised  panel  set  up  under  Article  66(4)  of  the  Regulation  (EC, 
Euratom) No 1605/2002. 

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5. 
The annual activity report drawn up by the Director-General and sent to the Commission 
for approval shall include a summary of the internal audits conducted by the internal auditor, the 
recommendations made and the action taken on these recommendations. 

Article 68 

The responsibility of the internal auditor for action taken in the performance of his/her duties 
shall  be  determined  in  accordance  with  Article  87  of  Regulation  (EC,  Euratom)  No 
1605/2002. 

TITLE V – PROCUREMENT 

Article 69 

As  regards  procurement,  the  relevant  provisions  of  Regulation  (EC,  Euratom)  No  1605/2002 
and the detailed rules for implementing that Regulation shall apply. 

TITLE VI – PRESENTATION OF THE ACCOUNTS AND ACCOUNTING 

CHAPTER 1: Presentation of the accounts 

Article 71 

The annual accounts of the Agency shall comprise: 

(a) 

the financial statements of the Agency; 

(b) 

the reports on implementation of the Agency’s budget. 

The  Agency’s  accounts  shall  be  accompanied  by  a  report  on  budgetary  and  financial 
management during the year. 

Article 72 

The accounts shall comply with the rules and shall be accurate and comprehensive and present a 
true and fair view: 

as  regards  the  financial  statements,  of  the  assets  and  liabilities,  charges  and  income, 

(a) 
entitlements and obligations not shown as assets or liabilities, and cash flow; 

(b) 

as regards reports on budgetary implementation, of revenue and expenditure operations. 

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Article 73 

The  financial  statements  shall  be  drawn  up  in  accordance  with  the  generally  accepted 
accounting principles specified in the detailed rules for implementing Regulation (EC, Euratom) 
No 1605/2002, namely: 

(a) 

going-concern basis; 

(b) 

prudence; 

(c) 

consistent accounting methods; 

(d) 

comparability of information; 

(e) 

(f) 

materiality; 

no netting; 

(g) 

reality over appearance; 

(h) 

accrual-based accounting. 

Article 74 

1. 
In  accordance  with  the  principle  of  accrual-based  accounting,  the  financial  statements 
shall show the charges and income for the financial year, regardless of the date of payment or 
collection. 

2. 
The value of assets and liabilities shall be determined in accordance with the valuation 
rules  laid  down  by  the  accounting  methods  provided  for  in  Article  132  of  Regulation  (EC, 
Euratom) No 1605/2002. 

1. 

The financial statements shall be presented in euro and shall comprise: 

Article 75 

(a) 

(b) 

(c) 

the balance sheet and the economic outturn account, which represent the assets 
and liabilities and financial situation and the economic outturn at 31 December 
of  the  previous  year;  they  shall  be  presented  in  accordance  with  the  structure 
laid down by the Council Directive on the annual accounts of certain types of 
companies, but with account being taken of the specific nature of the Agency’s 
activities; 

the  cash-flow  table  showing  amounts  collected  and  disbursed  during  the  year 
and the final treasury position; 

the  statement  of  changes  in  capital  presenting  in  detail  the  increases  and 
decreases during the year in each item of the capital accounts. 

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The annex to the financial statements shall supplement and comment on the information 
2. 
presented  in  the  statements  referred  to  in  paragraph  1  and  shall  supply  all  the  additional 
information prescribed by internationally accepted accounting practice where such information 
is relevant to the Agency’s activities. 

Article 76 

The budgetary implementation reports shall be presented in euro. They shall comprise: 

(a) 

(b) 

the budgetary outturn account, which sets out all budget operations for the year 
in terms of revenue and expenditure; the structure in which it is presented shall 
be the same as that of the budget itself; 

the  annex  to  the  budgetary  outturn  account,  which  shall  supplement  and 
comment on the information given in that account. 

Article 77 

The accounting officer shall send the Agency’s provisional accounts, together with the report on 
budgetary and financial management during the year referred to in Article 71 of this Regulation: 

to the Commissioner’s accounting officer by 1 March of the following year so that the 
1. 
Commission’s accounting officer can consolidate the accounts as provided for in Article 128 
of Regulation (EC, Euratom) No 1605/2002; 

2. 

to the Court of Auditors by 31 March of the following year. 

Article 78 

The  Court  of  Auditors  shall  make  its  observations  on  the  Agency’s  provisional 

1. 
accounts by 15 June. 

On  receiving  the  Court  of  Auditors’  observations  on  the  Agency’s  provisional 
2. 
accounts, the Director-General shall draw up the final accounts of the Agency, under his/her 
own responsibility, and send them to the Agency’s Advisory Committee, which shall give an 
opinion on these accounts. 

3. 
The  Director-General  shall,  by  1  July  of  the  next  financial  year,  forward  the  final 
accounts,  together  with  the  Advisory  Committee’s  opinion,  to  the  European  Parliament,  the 
Council and the Court of Auditors. 

4. 

The final accounts shall be published on the Agency’s website. 

The  Director-General  shall  send  the  Court  of  Auditors  a  reply  to  the  observations 

5. 
made in its annual report by 30 September. 

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CHAPTER 2: Accounting 

Section 1: Common provisions 

Article 79 

The  Agency’s  accounting  system  is  the  system  serving  to  organise  the  budgetary  and 

1. 
financial information in such a way that figures can be input, filed and registered. 

The accounts shall consist of general accounts and budgetary accounts. These accounts 

2. 
shall be kept in euro on the basis of the calendar year. 

The figures in the general accounts and the budgetary accounts shall be adopted at the 

3. 
close of the budgetary year so that the accounts referred to in Chapter 1 can be drawn up. 

Notwithstanding  paragraphs  2  and  3,  the  authorising  officer  may  keep  analytical 

4. 
accounts. 

Article 80 

The accounting rules and methods and the chart of accounts to be applied by the Agency shall 
be  adopted  by  the  Commission’s  accounting  officer  in  accordance  with  Article 133  of 
Regulation (EC, Euratom) No 1605/2002.  

Section 2: General accounts 

Article 81 

The  general  accounts  shall  record,  in  chronological  order  using  the  double  entry  method,  all 
events  and  operations  which  affect  the  economic  and  financial  situation  and  the  assets  and 
liabilities of the Agency. 

Article 82 

1. 

Movements on the accounts and the balances shall be entered in the accounting ledgers. 

All  accounting  entries,  including  adjustments  to  the  accounts,  shall  be  based  on 

2. 
supporting documents, to which they shall refer. 

3. 

The accounting system shall be such as to leave a trail for all accounting entries. 

Article 83 

The Agency’s accounting officer shall, after the close of the budgetary year and up to the 
date of presentation of the final accounts, make any adjustments which, without involving 
disbursement  or  collection  in  respect  of  that  year,  are  necessary  for  a  true  and  fair 
presentation of the accounts in compliance with the rules. 

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Section 3: Budgetary accounts 

Article 84 

1. 

The budgetary accounts shall provide a detailed record of budgetary implementation. 

For  the  purposes  of  applying  paragraph 1,  the  budgetary  accounts  shall  record  all 

2. 
budgetary revenue and expenditure operations provided for in Title IV of this Regulation. 

CHAPTER 3: Property inventories 

Article 85 

1. 
The  Agency  shall  keep  inventories  showing  the  quantity  and  value  of  all  the 
Community’s tangible, intangible and financial assets in accordance with a model drawn up 
by the accounting officer of the Commission. 

The Agency shall check that entries in the inventory correspond to the actual situation. 

2. 

The sale of movable property shall be suitably advertised. 

TITLE VII – EXTERNAL AUDIT AND DISCHARGE 

CHAPTER 1: External audit 

The  Court  of  Auditors  shall  scrutinise  the  Agency’s  accounts  in  accordance  with 
Article 160c of the Euratom Treaty. 

Article 86 

Article 87 

1. 
The Agency shall send the Court of Auditors the budget, as finally adopted. It shall 
inform the Court of Auditors, as soon as possible, of all decisions and acts adopted pursuant 
to Article 24. 

The Court of Auditors shall be informed of the appointment of authorising officers and 

2. 
accounting officers and of delegation decisions under Articles 31 and 40. 

The scrutiny carried out by the Court of Auditors shall be governed by Articles 139 to 144 of 
Regulation (EC, Euratom) No 1605/2002.  

Article 88 

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CHAPTER 2: Discharge 

Article 89 

The  European  Parliament,  upon  a  recommendation  from  the  Council,  shall,  before 
1. 
30 April of year n+2, give a discharge to the Director-General of the Agency in respect of 
the implementation of the budget for the year n. 

If the date provided for in paragraph 1 cannot be met, the European Parliament or the 

2. 
Council shall inform the Director-General of the reasons for the postponement. 

If the European Parliament postpones the decision giving a discharge, the Director-
3. 
General shall make every effort to take measures, as soon as possible, to remove or facilitate 
removal of the obstacles to that decision. 

Article 90 

1. 
The  discharge  decision  shall  cover  the  accounts  of  all  the  Agency’s  revenue  and 
expenditure, the resulting balance and the assets and liabilities of the Agency shown in the 
balance sheet. 

2. 
With a view to granting the discharge, the European Parliament shall, after the Council 
has done so, examine the Agency’s accounts and financial statements. It shall also examine the 
annual report made by the Court of Auditors, together with the replies of the Director-General 
of the Agency, any relevant special reports by the Court of Auditors in respect of the financial 
year  in  question  and  the  Court  of  Auditors'  statement  of  assurance  as  to  the  reliability  of  the 
accounts and the legality and regularity of the underlying transactions. 

3. 
The  Director-General  shall  submit  to  the  European  Parliament,  at  the  latter’s  request, 
any information required for the smooth application of the discharge procedure for the financial 
year in question, in accordance with Article 146(3) of Regulation (EC, Euratom) No 1605/2002. 

Article 91 

The  Director-General  shall  take  all  appropriate  steps  to  act  on  the  observations 
the  comments 

1. 
accompanying 
accompanying the recommendation for discharge adopted by the Council. 

the  European  Parliament’s  discharge  decision  and  on 

2. 
At  the  request  of  the  European  Parliament  or  the  Council,  the  Director-General  shall 
report on the measures taken in the light of these observations and comments. He/she shall send 
a copy thereof to the Commission and the Court of Auditors. 

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TITLE VIII - TRANSITIONAL AND FINAL PROVISIONS 

Article 92 

The European Parliament, the Council and the Commission shall be empowered to obtain any 
necessary  information  or  explanations  regarding  budgetary  matters  within  their  fields  of 
competence. 

Article 93 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Done at Brussels, […] 

For the Council 
The President 

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