3. European Parliament resolution of 24 April 2007 with observations forming an integral part of the decision on the discharge for the implementation of the budget of the European Food Safety Authority for the financial year 2005 (C6-0399/2006 - 2006/2166(DEC))
Date: 2007-04-24
Institutions: Committee on Budgetary Control, European Parliament
Subjects: European Food Safety Authority, budgetary discharge, financial year, implementation of the budget

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Tuesday 24 April 2007

Revenue and expenditure account for the financial years 2004 and 2005

2005

2004

(in 1 000 EUR)

Operating profit/(loss)

Revenue from financial operations

Expenditure from financial operations

Profit/(loss) on financial operations

Current profit/(loss)

Extraordinary revenue

Extraordinary expenditure

Extraordinary profit /(loss)

Economic outturn for the financial year

−761

-

−7

−7

−768

-

-

−768

808

0

−7

−6

802

−27

−27

775

NB: Variations in totals are due to the effects of rounding.
Source: The Authority's data — This table summarises the data provided by the Authority in its own annual accounts.

2.

Approves closing the accounts of the European Food Safety Authority for the financial year 2005;

3.
Instructs its President to forward this decision to the executive director of the European Food Safety
Authority, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the
Official Journal of the European Union (L series).

European Parliament resolution of 24 April 2007 with observations forming an integral part of the
decision on the discharge for the implementation of the budget of the European Food Safety Auth-
ority for the financial year 2005 (C6-0399/2006 — 2006/2166(DEC))

3.

The European Parliament,

— having regard to the final annual accounts of the European Food Safety Authority for the financial year

2005 (1),

— having regard to the Court of Auditors' report on the final annual accounts of the European Food

Safety Authority for the financial year 2005, together with the Authority's replies (2),

— having regard to Council's recommendation of 27 February 2007 (5711/2007 — C6-0080/2007),

— 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
the European Communities (3), and in particular

Regulation applicable to the general budget of
Article 185 thereof,

— having regard to Regulation (EC) No 178/2002 of the European Parliament and of the Council of
28 January 2002 laying down the general principles and requirements of food law, establishing the
European Food Safety Authority and laying down procedures in matters of food safety (4), and in par-
ticular Article 44 thereof,

(1) OJ C 266, 31.10.2006, p. 22.
(2) OJ C 312, 19.12.2006, p. 42.
(3) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1995/2006 (OJ L 390,

30.12.2006, p. 1).

(4) OJ L 31, 1.2.2002, p. 1. Regulation as last amended by Commission Regulation (EC) No 575/2006 (OJ L 100,

8.4.2006, p. 3).

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Tuesday 24 April 2007

— 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 (1), and in particular Article 94 thereof,

— having regard to Rule 71 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 the Environment, Public Health and Food Safety (A6-0112/2007),

A. whereas the Court of Auditors stated, that it obtained reasonable assurance that the annual accounts for
the financial year ended 31 December 2005 were reliable, and the underlying transactions, subject to
reservation, were legal and regular,

B. whereas on 27 April 2006 Parliament gave discharge to the director in respect of the implementation
of the Authority's budget for the 2004 financial year (2) and in the resolution accompanying the dis-
charge decision Parliament, inter alia,

— was disappointed to note that the Court of Auditors again discovered anomalies in the application
of the rules concerning staff recruitment, and urged the Authority to apply with more transparency
the rules regarding selection procedures;

— was concerned by the irregularities noted by the Court of Auditors in contract award procedures;

General points concerning the majority of EU Agencies requiring individual discharge

Considers that the ever-growing number of Community Agencies and the activities of certain of them
1.
do not seem to form part of an overall policy framework, and that the remits of some Agencies do not
always reflect the real needs of the Union or the expectations of its citizens, and notes that in general terms
the Agencies do not always have a good image or a good press;

2.
Invites the Commission therefore to define an overall policy framework for the setting up of new
Community Agencies and to present a cost-benefit study before the setting up of any new agency, while
being careful to avoid any overlap of activities between Agencies or with the remits of other European
organisations;

Calls on the Court of Auditors to give its opinion on the cost-benefit study before Parliament takes its

3.
decision;

Invites the Commission to present every five years a study on the added value of every existing
4.
Agency; invites all relevant institutions in the case of a negative evaluation of the added value of an Agency
to take the necessary steps by reformulating the mandate of that Agency or by closing it;

5.
Considers it regrettable, given the growing number of regulatory agencies, that the negotiations on the
draft interinstitutional agreement on the operating framework for the European regulatory agencies have not
yet been concluded, and calls on the relevant departments of the Commission, in consultation with the
Court of Auditors, to do their utmost to ensure that the agreement is brought to a rapid conclusion;

Notes that the Commission's budgetary responsibility calls for closer linking of the Agencies to the
6.
Commission; calls on the Commission and the Council to take all necessary steps to give the Commission a
blocking minority in the supervisory bodies of the regulatory Agencies by 31 December 2007 and to
provide for such a minority from the outset when new Agencies are set up;

7.
Invites the Court of Auditors to create an additional chapter in its Annual Report, devoted to all
Agencies to be discharged under the Commission's accounts in order to have a much clearer picture of
the use of EU funds by Agencies;

Recalls the principle according to which all Community Agencies, whether subsidised or not, are
8.
subject to discharge by the Parliament, even where a discharge authority exists by virtue of their constitutive
texts;

(1) OJ L 357, 31.12.2002, p. 72.
(2) OJ L 340, 6.12.2006, p. 134.

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Calls on the Court of Auditors to perform performance audits for all Agencies and to report back to

9.
the relevant committees of Parliament, including the Committee on Budgetary Control;

Notes that the number of Agencies is constantly increasing and that, in accordance with the Com-
10.
mission's political responsibility for the operation of the Agencies, which goes far beyond mere logistical
support, there is an even higher need for the Directorates-General of the Commission charged with the
setting up and monitoring of Agencies to develop a common approach to the Agencies; considers that a
structure similar to the one created by the Agencies for coordination among the DGs concerned would be a
pragmatic way forward towards a common approach by the Commission on all matters relating to the
Agencies;

Invites the Commission to improve administrative and technical support to the Agencies, taking into

11.
account the growing complexity of the Community's administrative rules and technical problems;

Notes the lack of a disciplinary body in any of the Community Agencies, and calls on the Commis-

12.
sion to take the necessary steps to ensure that such a mechanism is rapidly put in place;

13. Welcomes the considerable improvements in the coordination among the Agencies, which allows
them to tackle recurring problems and makes cooperation with the Commission and Parliament more
efficient;

Takes the view that the establishment by a number of Agencies of a shared support service aimed at
14.
making their computerised financial management systems consistent with those of the Commission is a
measure that should be taken further and extended;

Calls upon the Agencies to improve their cooperation and benchmarking with actors in the field;
15.
urges the Commission to adopt any measures it considers necessary to help the Agencies enhance their
image and raise the profile of their activities;

Calls upon the Commission to come up with a proposal to harmonise the format of the annual
16.
reporting by the Agencies and to develop performance indicators which would allow a comparison of
their efficiency;

Invites the Agencies to present at the beginning of every year performance indicators against which

17.
they could be measured;

Invites all Agencies to increasingly use SMART objectives which should lead to more realistic plan-

18.
ning and implementation of goals;

19.
Agrees with the Court of Auditors that the Commission also bears responsibility for the (financial)
management of the Agencies; therefore, urges the Commission to monitor and where necessary direct and
help the management of the different Agencies, especially in relation to the proper application of tender
procedures, transparency of recruitment procedures, sound financial management (underspending and over-
budgeting) and most importantly the proper application of the rules concerning the internal control frame-
work;

20.
Considers that the Agencies' work programmes should express their contributions in operational and
measurable terms and that due consideration should be given to the Commission's Internal Control Stan-
dards;

Specific points

21.
Notes that the financial year 2005 was marked by a significant under-implementation of the budget,
with only 80 % of commitment and payment appropriations being used; considers that the Authority
should make a serious effort to improve the use it makes of the appropriations with which it is entrusted
to achieve its objectives;

22.
Strongly deplores the fact that the changes it made to the establishment plan were not respected and
that it restored the grades initially provided for in the draft budget in respect of 19 posts without informing
Parliament;

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Tuesday 24 April 2007

23.
Notes the failure to introduce activity-based management although this is laid down by the Author-
ity's financial regulation, along the lines of what was applied to the general budget with a view to improving
performance monitoring;

Regrets the fact that the Authority did not carry out a risk analysis or formally lay down the internal

24.
control systems and procedures it follows and invites the Authority to do so as quickly as possible;

25.
Notes with regard to recruitment that the Authority rejected candidates on the basis of criteria other
than those provided for in the vacancy notices and, in addition, did not observe the regulatory provisions
concerning the grades of selection board members in relation to the posts to be filled; insists on the strict
application of the relevant criteria and on an effective check as to whether the documents submitted by
candidates in support of their applications actually offer genuine proof;

26.

Notes that the Authority had difficulties in recruiting highly skilled scientific staff in Parma;

27.
Regrets that a considerable number of anomalies were revealed during the audits carried out on the
award and conclusion of contracts; invites the Authority to urgently tighten up its internal control system;

Notes that buildings intended to house the Authority permanently are still not available and that the
28.
Authority was thus obliged to rent and fit out
in 2005: approximately
EUR 3 500 000); invites the Authority, together with the Commission, to clarify this situation with the
national authorities, in particular with a view to any financial compensation.

temporary premises (cost

P6_TA(2007)0126

Discharge 2005: European Centre for Disease Prevention and Control

1.
European Parliament decision of 24 April 2007 on the discharge for the implementation of the
budget of the European Centre for Disease Prevention and Control for the financial year 2005
(C6-0400/2006 — 2006/2167(DEC))

The European Parliament,

— having regard to the final annual accounts of the European Centre for Disease Prevention and Control

for the financial year 2005 (1),

— having regard to the Court of Auditors' report on the final annual accounts of the European Centre for
Disease Prevention and Control for the financial year 2005, together with the Centre's replies (2),

— having regard to the Council's recommendation of 27 February 2007 (5711/2007 — C6-0080/2007),

— 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
the European Communities (3), and in particular

Regulation applicable to the general budget of
Article 185 thereof,

— having regard to Regulation (EC) No 851/2004 of the European Parliament and of the Council of
21 April 2004 establishing a European Centre for Disease Prevention and Control (4), and in particular
Article 23 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 (5), and in particular Article 94 thereof,

(1) OJ C 266, 31.10.2006, p. 31.
(2) OJ C 312, 19.12.2006, p. 54.
(3) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1995/2006 (OJ L 390,

30.12.2006, p. 1).

(4) OJ L OJ L 142, 30.4.2004, p. 1.
(5) OJ L 357, 31.12.2002, p. 72.