Resolution of the European Parliament of 22 April 2008 with observations forming an integral part of the decision on discharge in respect of the implementation of the European Union general budget for the financial year 2006, section VII — Committee of the Regions
Date: 2008-04-22
Institutions: European Parliament
Subjects: European Committee of the Regions, budgetary discharge, financial year, implementation of the budget

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Official Journal of the European Union

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RESOLUTION OF THE EUROPEAN PARLIAMENT

of 22 April 2008

with observations forming an integral part of
the
implementation of the European Union general budget for the financial year 2006, section VII —
Committee of the Regions

the decision on discharge in respect of

THE EUROPEAN PARLIAMENT,

— having regard to the European Union general budget for the financial year 2006 (1),

— having regard to the final annual accounts of the European Communities for the financial year 2006 —

Volume I (C6-0368/2007) (2),

— having regard to the Committee of the Regions' annual report to the discharge authority on internal

audits carried out in 2006,

— having regard to the Annual Report of the Court of Auditors on implementation of the budget for the
financial year 2006 and the Court of Auditors' special reports, together with the audited institutions'
replies (3),

— having regard to the statement of assurance as to the reliability of the accounts and the legality and
regularity of the underlying transactions provided by the Court of Auditors pursuant to Article 248 of
the EC Treaty (4),

— having regard to Articles 272(10), 274, 275 and 276 of the EC Treaty,

— having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
the European Communities (5), and in particular

Regulation applicable to the general budget of
Articles 50, 86, 145, 146 and 147 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 (A6-0095/2008),

1. Notes that in 2006 the Committee of the Regions (CoR) had available commitment appropriations
amounting to a total of EUR 74 391 953,27 (2005: EUR 69 570 456,32), with a utilisation rate of
97,94 %;

2. Notes that, following the introduction of accrual accounting with effect from 1 January 2005, the CoR's
financial statements disclose a negative economic out-turn for the financial year 2006 (EUR 8 306 761)
and identical amounts of assets and liabilities (EUR 101 124 165);

3. Welcomes the signature in December 2007 of a new Administrative Cooperation Agreement between
the European Economic and Social Committee (EESC) and the CoR for the period 2008 to 2014; is
convinced that cooperation between the two institutions will be financially advantageous for the
European taxpayers;

4. Welcomes the clear commitment of the two committees to the aim of harmonising their internal control
standards, based on best practices, as well as all other relevant financial procedures relating to the Joint
Services;

5. Notes that the new agreement keeps the most important areas (infrastructures, IT and telecommunica-
tions as well as translation, including the production of documents) within the Joint Services' remit, while
a limited number of services are de-coupled, such as internal services, socio-medical service, the library
and prepress;

(1) OJ L 78, 15.3.2006.
(2) OJ C 274, 15.11.2007, p. 1.
(3) OJ C 273, 15.11.2007, p. 1.
(4) OJ C 274, 15.11.2007, p. 130.
(5) OJ L 248, 16.9.2002, p. 1.

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6.

7.

Insists however that this de-coupling should be budget neutral and, therefore, urges the two committees
to make a joint analysis as part of the mid-term review in order to assess whether this shift of resources
will have been beneficial to both; calls on the two committees to keep Parliament informed of the mini-
cooperation agreements in the areas concerned by de-coupling;

Points to the remark made by the ECA at point 10.19 of its Annual Report that some management and
control weaknesses appeared in relation to public procurement; notes with concern the high percentage
of negotiated procedures, instead of calls for tenders, within the whole expenditure for procurement;
welcomes however the information provided by the Joint Services according to which, for most of the
building-related services that were previously awarded after negotiated procedures, new contracts have
been signed after calls for tender or call for tender procedures are on-going;

8. Welcomes in this context the creation within the Joint Services of a Contracts Unit providing assistance
to all operational departments in the Joint Services in the area of public procurement; notes that under
the new agreement the verification service of the Joint Services has been transferred to each committee's
own services;

9. Notes that, according to the Joint Services' answers to the rapporteur's questionnaire, with the
occupation of the Remorqueur and Van Maerlant buildings in 2007, 92 % of the Committees' total office
space is now occupied and their needs for space have been satisfied for the coming years;

10. Notes in relation to the renovation of the Montoyer entrance hall, that the EESC Internal Auditor
concluded in its report that ‘he did not find elements that would suggest the settlement of the penalties
for late delivery for the Montoyer hall renovation was not defendable’; points out that this report was
sent to OLAF and that this has not resulted in any follow-up of which the EESC or the CoR is aware;

11. Notes that the verification service was transferred in 2006 from the Budget and Finance unit to the
General Administration unit, with a view to further emphasising the principle of the separation of
functions and the independence of that service; further notes that the CoR considers that it has carried
out a satisfactory number of ex-post controls in 2006 and that it requested all its services to verify 5 % of
all files in 2007; welcomes the fact that the CoR has significantly increased its resources and capacities in
its financial verification service;

12. Considers it crucial that the controls carried out by, for example, authorising officers, verifiers and
auditors, are rigorous enough; underlines in this context the importance of a sufficient number of
random checks in all sectors, in addition to those few strategic ones that present a higher risk;

13. Points to the remark made by the ECA at point 10.23 of its Annual Report that in the context of an ex-
post verification procedure, the CoR's administration found that, in the case of one national delegation,
the amounts refunded to members for travel expenditure (air tickets) on the basis of hand-written travel
agency invoices were on average 83 % higher than the price actually charged by the airline for the ticket
used;

14. Observes that, following this, the CoR's administration carried out a broad investigation into the matter,
which was completed in July 2007 and whose results did not demonstrate, in the ECA's opinion, that the
amounts paid for administrative costs were justified;

15. Notes with satisfaction that the CoR decided to make further reimbursements subject to compliance with
a number of conditions and suspended all reimbursements based on travel documents purchased under
the previous arrangements; welcomes that, as a precautionary measure, the CoR also informed OLAF
about the evolution of ex-post verifications and the measures adopted by the CoR's administration;

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16. Notes that the internal audit on salary transfers, which was completed in 2006 and which included an in-
depth review of all existing transfers, revealed that ‘[w]eaknesses existed concerning the principle of
separation of functions in this area (initiating functions and internal verification) and the control
environment should have been given greater priority in view of the risks concerned’; further notes that a
follow-up to the Internal Auditor's recommendations was carried out in February 2007; urges the CoR's
administration to ensure the full implementation of all audit recommendations;

17. Notes that, following an investigation, OLAF established with regard to eight transfers that they were not
in compliance with statutory conditions and recommended recovering the amounts overpaid from the
officials concerned; notes with satisfaction that all recoveries had been completed by early 2007; further
notes that with regard to six staff members, OLAF recommended the opening of disciplinary
proceedings, and for five of them it also submitted files to the Belgian authorities;

18. Observes that, following a request by the Belgian authorities, the CoR Appointing Authority lifted the
immunity of the officials concerned on 6 July 2007 to enable them to be interviewed by the authorities;
further notes that to date, no information has been received by the CoR's administration as to whether
the Belgian authorities intend to follow-up those files;

19. Notes with satisfaction that an administrative enquiry was launched by the CoR's Secretary General and
carried out by a former deputy Director-General of the Commission; points out that in two of the five
cases where the files were submitted to the authorities, the CoR Appointing Authority decided to open
disciplinary proceedings before the Disciplinary Board; understands that in accordance with the Staff
Regulations, a final decision can be taken in these cases only after a final judgment has been handed
down by the Belgian court;

20. Notes that in the three other cases, the Appointing Authority will take its decision on the opening of
disciplinary proceedings as soon as it has received the necessary information as to the follow-up the
Belgian authorities intend to give to those files; further notes that in a further case, in which OLAF has
not submitted the file to the Belgian authorities, the Appointing Authority decided, in line with the
recommendations of the administrative enquiry, to address a warning to the official concerned; reiterates
its demand for a strict prosecution of all cases where fraudulent behaviour can be proved;

21. Asks the CoR to consider proportionate disciplinary measures if the outcome of the cases pending before

the competent courts requires them;

22. Notes with satisfaction that there are no more specific problems for the CoR as regards recruitment and

that it takes up almost its full quota as negotiated with the other institutions.