Resolution of the European Parliament of 24 April 2007 with observations forming an integral part of the Decision on the discharge for implementation of the European Union general budget for the financial year 2005, Section V - Court of Auditors
Date: 2008-04-24
Institutions: European Parliament
Subjects: European Court of Auditors, budgetary discharge, financial year, general budget (EU), implementation of the budget

15.7.2008

EN

Official Journal of the European Union

L 187/61

RESOLUTION OF THE EUROPEAN PARLIAMENT

of 24 April 2007

with observations forming an integral part of the Decision on the discharge for implementation of
the European Union general budget for the financial year 2005, Section V — Court of Auditors

THE EUROPEAN PARLIAMENT,

— having regard to the European Union general budget for the financial year 2005 (1),

— having regard to the final annual accounts of the European Communities for the financial year 2005 —

Volume I (C6-0468/2006) (2),

— having regard to the Annual Report of the Court of Auditors on implementation of the budget for the
financial year 2005 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 (A6-0107/2007),

1. Notes that in 2005 the European Court of Auditors (ECA) had available commitment appropriations

amounting to a total of EUR 107 548 618,24 with a utilisation rate of 87,22 %;

2. Notes that following the introduction of accrual accounting with effect from 1 January 2005 the ECA's
2005 financial statements disclose a negative economic out-turn for the year (EUR 16 820 000) and an
excess of liabilities over assets of EUR 11 450 000;

3.

Recalls that as regards the financial year 2005 (as was also the case for the financial year 2004) the ECA's
accounts were audited by an external firm, KPMG, which concluded that:

‘[t]he attached financial statements give a true and fair view, in accordance with Council Regulation (EC,
Euratom) No 1605/2002 of 25 June 2002, the implementing rules, generally accepted accounting
principles and the European Court of Auditor's Internal Rules, of the assets and financial position of the
European Court of Auditors at 31 December 2005 and of the economic out-turn and the revenue and
expenditure for the financial year then ended.’

(1) OJ L 60, 8.3.2005.
(2) OJ C 264, 31.10.2006, p. 1.
(3) OJ C 263, 31.10.2006, p. 1.
(4) OJ C 263, 31.10.2006, p. 10.
(5) 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).

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4. Notes, however, that KPMG made that statement subject to the effect of any rectifications that might
prove necessary with respect to the treatment given, as regards accounting, to the ECA's Members'
pensions, bearing in mind that the relevant accounting standard No 12 was then being revised; points
out that the revised standard was adopted by the Commission's accounting officer in October 2006;

5.

Recalls that in its 2004 accounts the ECA recorded, for the first time, a provision for its Members'
pensions combined with a long-term claim on the Member States to the value of EUR 43 689 621; the
amount of the provision was calculated on the basis of an actuarial analysis carried out by the European
Community;

6. Notes that, in the absence of an equivalent provision as regards its Members' pensions, the ECA's balance
sheet for the financial year 2005 discloses a deficit of EUR 16 800 000 (compared with balanced assets
and liabilities in 2004);

7.

8.

Believes that both the liability for future pension payments and also the long-term claim against the
Member States — by virtue of their guaranteeing the financing of the pension scheme — should be
included in the balance sheet in order to reflect the principles of accrual accounting applicable from
1 January 2005;

Recognises that the ECA has correctly applied the relevant accounting standard; expresses, however, its
concern at the current position with regard to the ECA's balance sheet under which the ECA's Members'
future pensions are included under liabilities without a balancing asset; notes the apparent explanation
that the Member States' guarantee in respect of such pension rights cannot properly be considered as an
asset within the meaning of the Commission's accounting standard No 12 (employee benefits);

9. Notes with concern the ECA's difficulty in recruiting qualified staff

for several posts from the

competitions organised by EPSO;

10. Recalls that Mr Weber, President of the ECA, in a speech in Strasbourg on 14 November 2005, told the
Committee on Budgetary Control that the ECA was carrying out a self-assessment of its organisation and
methods to be followed by a ‘peer review’;

11. Reiterates its hope that it will be possible to devise a more rational structure for the ECA before the next
enlargement; asks the ECA to consider existing models with a view to reducing the total number of ECA
Members; calls for consideration of proposals to introduce a rotating system similar to that applying to
the Governing Council of the European Central Bank or a system with a single Auditor-General;

12. Notes from the ECA's activity report that in 2005 it decided to begin a self-assessment exercise based on
the Common Assessment Framework model
jointly developed by the European Institute of Public
Administration and the Innovative Public Service Group as a result of the cooperation among EU
ministers responsible for public administration;

13. Welcomes the information contained in the ECA's replies to the rapporteur’s questionnaire that following
that self-assessment an action plan had been adopted by the ECA, and implementation has started with
actions covering broad areas such as mission and strategic objectives, programming and performance
measuring, audit methodology, human resource strategy, internal and external communication and
administrative procedures;

14. Notes that the action plan will be subjected to a ‘peer review’ and that the President of the ECA will give
more details on its contents during his presentation of the ECA's annual work programme for 2007;

15. Notes in relation to declarations of Members' financial interests that in compliance with the ECA's Code
of Conduct, ECA Members communicate a declaration of their financial interests and other assets

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(including shares, convertible bonds and investment certificates, as well as land and real property,
together with their spouses' professional activities) to the President of the ECA, who keeps them under
confidential custody, and that these declarations are not published;

16. States that, as a matter of principle and in the interests of transparency, Members of all EU institutions
should be required to submit a declaration of financial interests which should be accessible on the
Internet via a public register; calls on the ECA to inform Parliament by 30 September 2007 of what
appropriate measures it will take;

17. Recalls that the Court of Justice has, at Parliament's suggestion, set up a working group to study the
feasibility of requiring, inter alia, a declaration of its Members' financial interests; considers that this
question could form a useful part of the ECA's current self-assessment and peer review process.