Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 amending Regulation (EC, Euratom) No 2343/2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities
Date: 2008-07-09
Institutions: European Commission
Subjects: financial management, financial regulation, general budget (EU), implementation of the budget

10.7.2008

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COMMISSION REGULATION (EC, EURATOM) No 652/2008

of 9 July 2008

amending Regulation (EC, Euratom) No 2343/2002 on the framework Financial Regulation for the
bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the
Financial Regulation applicable to the general budget of the European Communities

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to the Treaty establishing the European Atomic
Energy Community,

Having regard to Council Regulation (EC, Euratom) No
1605/2002 of 25 June 2002 on the Financial Regulation
applicable to the general budget of
the European Commu-
nities (1), and in particular Article 185(1) thereof,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Council,

Having regard to the opinion of the Court of Auditors (2),

Whereas:

(1)

(2)

Following the amendment of Regulation (EC, Euratom)
‘general Financial Regu-
No 1605/2002 (hereinafter:
lation’) by Council Regulation (EC, Euratom) No
1995/2006 (3),
is necessary to adapt Commission
Regulation (EC, Euratom) No 2343/2002 (4) in order to
align it with the general Financial Regulation. Some
amendments have become necessary in the light of
experience gathered by the existing Community bodies.

it

As regards the difference of the deadline for the discharge
decisions concerning the Community bodies and that
provided for the general budget in the general Financial
Regulation, this Regulation has to follow the deadline set
in the basic acts establishing the Community bodies,
from which it cannot deviate. The institution concerned
and, where appropriate, the Community bodies should
therefore try to avoid difficulties in practice and strive
for a harmonisation of these basic acts in the future.

(3)

(4)

(5)

(6)

(7)

(8)

(9)

It should be made clear that sound financial management
requires effective and efficient internal control. The main
features and objectives of internal control systems should
be defined.

be

ensured

through

Accrued transparency vis-à-vis the budgetary authority
should
new information
requirements incumbent on the Community bodies in
the budget procedure particularly as regards estimations
the number of contract staff, surpluses, assigned
of
revenue and waivers to recovery of established amounts
receivable.

In order to ensure that personal data is kept for no
longer than is necessary for the purposes for which the
data were collected or
for which they are further
processed, specific requirements should be laid down as
regards supporting documents.

In order to strengthen the protection of the financial
interests of
the Communities, each Community body
should establish a list of amounts receivable, stating the
names of the debtors and the amount of the debt where
the debtor has been ordered to pay by a Court decision
that has the force of res judicata and where no or no
significant payment has been made for one year after
should be published,
its pronouncement. This
taking into account
the legislation applicable to data
protection.

list

In order to ensure the transparency of the use of funds
deriving from their budgets, it is appropriate to provide
for a general obligation of the Community bodies to
make available
information on the beneficiaries of
those funds.

The list of assigned items of revenue proved to be
completed in
incomplete
accordance with Article 18(1) of the general Financial
Regulation.

and should therefore be

the budget of Community bodies
The publication of
should be simplified, while preserving the prerogatives
of the budgetary authority and of the Court of Auditors.

(1) OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regu-

lation (EC) No 1525/2007 (OJ L 343, 27.12.2007, p. 9).

(2) OJ C 23, 28.1.2008, p. 1.
(3) OJ L 390, 30.12.2006, p. 1.
(4) OJ L 357, 31.12.2002, p. 72.

(10)

The procedure regarding transfers to be adopted by the
directors of Community bodies has been applied incon-
sistently and should therefore be clarified. In particular,
the budgetary authority should be kept
informed of
important transfers.

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(11)

Payment requests to the Commission should be substan-
tiated and based on rigorous cash management in order
to avoid surpluses at the end of the year.

(21)

(12)

The effects of part-time work on the establishment plan
should be specified to facilitate its use especially in small
Community bodies.

(13)

In order to strengthen the protection of the financial
interest of the Communities, Community bodies should
participate in fraud prevention activities of the European
Anti-fraud Office.

(14)

In order to cover all persons involved in procurement
and grant procedures,
it is appropriate to provide for
particulars regarding conflict of interest situations.

(22)

(23)

(15)

Treatment of similar individual transactions relating to
certain routine expenditure items should be simplified
with regard to ex ante verification obligations.

(16)

Financial liability of authorising officers should be expres-
sively limited to cases of gross negligence and intentional
misconduct.

(17)

to facilitate transactions

In order
in certain cases,
Community bodies should be enabled to use a direct
debit system.

(18) Given that the director of the Community body, who is
the
independence of the
in the performance of his duties

authorising officer,
accounting officer, the functional
accounting officer
should be explicitly referred to.

is the hierarchical superior of

(19) Accounting officers’

responsibility for certifying the
information
accounts on the basis of
the financial
supplied to them by authorising officers
should be
clarified. To this end, the accounting officer should be
empowered to check the information received from the
authorising officer by delegation and to enter reser-
vations, if necessary.

Community bodies should be able to draw on the
expertise of the specialised Financial Irregularities Panel
of the Commission established pursuant to Article 66(4)
of
Financial Regulation, which should
become, by default, competent for Community bodies
unless the latter decide to set up a panel or to participate
in a joint panel established by several Community bodies.

the general

and

offices,

services

The conditions for the use, by Community bodies, of
Commission
interinstitutional
European offices and the Translation Centre for bodies
of the European Union established by Council Regulation
(EC) No 2965/94 of 28 November 1994 setting up a
Translation Centre for bodies of the European Union (1)
and joint procurement procedures with host Member
States should be specified in order to reinforce interin-
stitutional
between
and
Community bodies and with host Member States.

cooperation

cooperation

of

the

and

given

In order to strengthen the protection of the financial
that
Communities
interests
Community bodies cannot exercise certain prerogatives
exclusively assigned to the Community institutions, they
should be required to insert specific contractual clauses in
their contracts and grant agreements concluded with
third parties enabling them to exercise certain rights,
including the suspension and termination of contracts
and tender procedures and the establishment of a
limitation period.

(24)

reasons of

For
the budgetary
transparency vis-à-vis
authority, an information procedure for projects with
significant impact on the administrative budget of the
Community body should be introduced.

(25)

It is necessary to provide for a specific procedure for the
selection of experts, corresponding to that laid down in
the general Financial Regulation.

(26)

(27)

Communication and cooperation between the director of
the Community body and the management board in the
framework of
should be
enhanced.

the discharge procedure

In line with Article 185(1) of the general Financial Regu-
lation, it should be provided that where the Community
body will adopt rules to implement its financial regu-
lation,
to the
prior agreement of the Commission.

these rules is subject

the adoption of

(20)

It is necessary to define a set of rules for fees and charges
collected by the Community bodies in order to meet the
needs of certain Community bodies financed from such
revenue.

(28)

Regulation (EC,
therefore be amended accordingly,

Euratom) No 2343/2002 should

(1) OJ L 314, 7.12.1994, p. 1. Regulation as last amended by Regu-

lation (EC) No 1645/2003 (OJ L 245, 29.9.2003, p. 13).

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HAS ADOPTED THIS REGULATION:

Article 1

‘By 1 June of the year N+1 at the latest, the Community
body shall
inform the Commission about the imple-
mentation of the assigned revenue carried over.’;

Regulation (EC, Euratom) No 2343/2002 is amended as follows:

4. Article 13 is replaced by the following:

1. Article 3 is replaced by the following:

‘Article 3

The establishment and implementation of the budget of the
Community body (hereinafter referred to as “the budget”)
shall comply with the principles of unity and budget
accuracy,
account,
equilibrium,
universality, specification, and sound financial management,
which requires effective and efficient internal control and
transparency as provided for in this Regulation.’

annuality,

unit

of

2. In Article 8, paragraph 1 is replaced by the following:

‘1.
The budget shall contain non-differentiated appro-
priations and, where justified by operational needs, differ-
entiated
consist of
commitment appropriations and payment appropriations.’;

appropriations. The

latter

shall

3. Article 10 is amended as follows:

(a)

In the second subparagraph of paragraph 1, the words
‘paragraphs 2 to 8’ are replaced by ‘paragraphs 2 to 7’;

(b) Paragraph 3 is replaced by the following:

‘3.
Commitment appropriations and non-differen-
tiated appropriations not yet committed at the close
of the financial year may be carried over in respect of
amounts corresponding to commitment appropriations
for which most of
the
commitment procedure, to be defined in the rules im-
plementing the financial regulation of each Community
body, have been completed by 31 December;
these
amounts may then be committed up to 31 March of
the following year.’

the preparatory stages of

(c)

In paragraph 4, the first sentence is replaced by the
following:

‘Payment appropriations may be carried over in respect
of amounts needed to cover existing commitments or
commitments linked to commitment appropriations
carried over, when the appropriations provided for
the relevant
the following
financial year do not cover requirements.’;

lines in the budget

for

(d) In paragraph 7, the following subparagraph is added:

‘Article 13

1.
As from 15 November of each year, routine admin-
istrative expenditure may be committed in advance against
the appropriations provided for the following financial year.
Such commitments may not, however, exceed one quarter
of the appropriations decided by the management board on
the corresponding budget line for the current financial year.
They may not apply to new expenditure of a kind not yet
approved in principle in the last budget duly adopted.

rents, may give

Expenditure which must be paid in advance,

for
2.
example
from 1
December onwards to be charged to the appropriations
for the following financial year.
the limit
referred to in paragraph 1 shall not apply.’;

to payments

In this case,

rise

5. Article 15 is amended as follows:

(a) Paragraph 4 is replaced by the following:

‘4.
Community funds paid to the Community body
shall constitute for its budget a balancing subsidy which
shall count as pre-financing within the meaning of
Article 81(1)(b)(i) of the general Financial Regulation.’

(b) The following paragraph 5 is added:

‘5.
The Community body shall implement rigorous
taking due account of assigned
cash management,
revenue, in order to ensure that its cash balances are
limited to duly justified requirements. With its payment
requests it shall submit detailed and updated forecasts
on its real cash requirements throughout
the year,
including information on assigned revenue.’;

6. In Article 16(1), the following subparagraph is added:

‘The Community bodies shall provide, by 31 March of the
year n at the latest, an estimate of the operating surplus
to be returned to the
from the year N-1, which is
Community budget later in year N, in order to complete
the information already available concerning the surplus of
the year N-2. This information shall be duly taken into
account by the Commission when assessing the financial
needs of Community bodies for the year N+1.’;

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7. Article 19 is replaced by the following:

8. Article 21(1) is replaced by the following:

‘Article 19

The following items of revenue shall be used to

1.
finance specific items of expenditure:

following deductions may be made

‘1.
The
payment
then be passed for payment of the net amount:

from
statements, which shall

invoices or

requests,

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

(a) penalties imposed on parties to procurement contracts

or beneficiaries of a grant;

(b) contributions to the Community body’s activities from
Member States, non-member countries or miscellaneous
bodies, insofar as this is provided for in the agreement
concluded between the Community body and the
Member States, non-member countries or bodies in
question;

(b) discounts, refunds and rebates on individual

invoices

and payment requests;

(c)

interest generated by pre-financing payments.’;

(c) revenue from third parties in respect of goods, services
or work supplied at their request, with the exception of
fees and charges referred to in Article 5(a);

9. Article 23 is replaced by the following:

(d) proceeds from the supply of goods, services and works
for Community institutions or other Community
bodies;

(e) revenue

arising from the

repayment of

amounts

wrongly paid;

(f) proceeds from the sale of vehicles, equipment,

instal-
lations, materials, and scientific and technical apparatus,
which are being replaced or scrapped when the book
value is fully depreciated;

(g)

insurance payments received;

(h) revenue from payments connected with lettings;

(i)

revenue from the sale of publications and films,
including those on an electronic medium.

The basic act applicable may also assign the revenue

1a.
for which it provides to specific items of expenditure.

2.
All items of revenue within the meaning of points (a)
to (d) of paragraph 1 shall cover all direct or indirect
expenditure incurred by the activity or purpose in question.

‘Article 23

The Director may make transfers from one chapter to
1.
another and from one article to another without limit and
from one title to another up to a maximum of 10 % of the
appropriations for the financial year shown on the line
from which the transfer is made.

2.
Beyond the limit referred in paragraph 1, the director
may propose to the management board transfers of appro-
priations from one title to another. The management board
shall have three weeks in which to oppose such transfers.
After this time-limit they shall be deemed to be adopted.

3.
Proposals for transfers and transfers carried out under
paragraphs 1 and 2 shall be accompanied by appropriate
and detailed supporting documents showing the implemen-
tation 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.

4.
The Director shall inform the management board as
soon as possible of all transfers made. He shall inform the
budgetary authority of all
transfers carried out under
paragraph 2.’;

10. In Title II, Chapter 7, the following Article 25a is inserted:

3.
The budget shall carry lines to accommodate the cate-
gories of assigned revenue referred to in paragraphs 1 and
1a and wherever possible shall indicate the amount.’;

‘Article 25a

The budget shall be implemented in compliance with

1.
effective and efficient internal control.

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For

the purposes of

the
2.
budget, internal control is defined as a process applicable
at all levels of the management and designed to provide
reasonable assurance of achieving the following objectives:

the implementation of

(a) effectiveness, efficiency and economy of operations;

(b) reliability of reporting;

(c) safeguarding of assets and information;

(d) prevention and detection of fraud and irregularities;

(e) adequate management of

the risks relating to the
legality and regularity of the underlying transactions,
taking into account
character of
programmes as well as the nature of the payments
concerned.’;

the multiannual

deriving from its budget, including experts contracted
to Article 74b. The published information
pursuant
shall be easily accessible,
transparent and compre-
hensive. The information shall be made available with
due observance of the requirements of confidentiality
and security,
in particular the protection of personal
data laid down in Regulation (EC) No 45/2001 of the
European Parliament and of the Council (*).

Where information is published only in anonymous
form,
the Community body shall, upon request,
provide information on the beneficiaries concerned to
the European Parliament in an appropriate manner.
___________
(*) OJ L 8, 12.1.2001, p. 1.’;

12. Article 27 is replaced by the following:

‘Article 27

11. Article 26 is amended as follows:

(a) Paragraph 2 is replaced by the following:

‘2.
A summary of the budget and amending budgets,
as finally adopted, shall be published in the Official
Journal of the European Union within three months of
their adoption.

and operational budget,

The summary shall show the five main revenue budget
lines, the five main expenditure budget lines for the
estab-
administrative
lishment plan and an estimate of
the number of
contract staff expressed in full-time equivalents for
which appropriations are budgeted, and seconded
national experts. It shall also indicate the figures for
the previous year.’

the

The budget shall be established in accordance with
that

the constituent

instrument of

1.
the provisions of
Community body.

2.
The Community body shall send the Commission a
provisional draft estimate of its revenue and expenditure
and the general guidelines underlying that estimate by 10
February each year and the final draft estimate by the date
specified in the constituent instrument.

The estimate of

3.
Community body shall include:

revenue and expenditure of

the

(a) an establishment plan setting the number of permanent
and temporary posts authorised within the limits of the
budget appropriations, by grade and by category;

(b) The following paragraphs 3 and 4 are added:

(b) where there is a change in the number of persons in
post, a statement justifying the request for new posts;

‘3.
The budget including the establishment plan and
amending budgets, as finally adopted, as well as an
indication of the number of contract staff expressed
in full-time equivalents for which appropriations are
budgeted, and seconded national experts, shall be trans-
mitted for information to the budgetary authority, the
Court of Auditors and the Commission, and shall be
published on the Internet site of the Community body
concerned within four weeks of their adoption.

4.
The Community body shall make available on its
Internet site information on the beneficiaries of funds

(c) a quarterly estimate of cash payments and receipts;

(d) information on the achievement of all previously set
objectives for the various activities as well as new
objectives measured by indicators.

Evaluation results shall be consulted and referred to as
evidence of the likely merits of an increase or decrease of
the Community body’s proposed budget
in comparison
with its budget for year N.

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The Community body shall send to the Commission
4.
and the budgetary authority by 31 March each year at the
latest the following:

(a)

its draft work programme;

(b) its updated multi-annual staff policy plan, established in

line with the guidelines set by the Commission;

(c)

information on the number of officials, temporary and
contract staff as defined in the Staff Regulations and the
Conditions of Employment of Other Servants (here-
inafter “the Staff Regulations”) for the years n-1 and n
as well as an estimate for the year N+1;

(d) information on contributions in kind granted by the

host Member State to the Community body.

(e) an estimate of

the balance of
within the meaning of Article 81 for the year N-1.

the outturn account

5.
As part of the procedure for adoption of the general
budget, the Commission shall send the Community body’s
statement of estimates to the budgetary authority and
propose the amount of the subsidy for the Community
body and the number of staff it considers that the body
needs. The Commission shall provide the draft estab-
lishment plan of
the Community bodies and for an
estimate of the number of contract staff expressed in full-
time equivalents for which appropriations are proposed.

The budgetary authority shall adopt the establishment
6.
the Community body and any subsequent
plan of
amendment thereto in accordance with Article 32(1). The
establishment plan shall be published in an Annex to
Section III – Commission – of the general budget.

final adoption of

7.
The budget and the establishment plan shall be
adopted by the management board. They become definitive
after
the general budget setting the
amount of the subsidy and the establishment plan and if
necessary the budget and the establishment plan shall be
adjusted accordingly.’;

‘Where a staff member requests the withdrawal of the
authorisation before expiry of the granted period, the
Community body shall take appropriate measures to
respect the limit referred to in point (b) of paragraph
1 as soon as possible.’;

14. In Article 33, the following subparagraph is added:

‘Without prejudice to the responsibilities of the authorising
officer as regards prevention and detection of fraud and
the Community body shall participate in
irregularities,
the European Anti-fraud
fraud prevention activities of
Office.’;

15. In Article 34(1),

the words ‘the regulations and rules
applicable to officials and other servants of the European
Communities’
(hereinafter referred to as the ‘Staff Regu-
lations’) are replaced by ‘the Staff Regulations’;

16. In Article 35, paragraphs 1 and 2 are replaced by the

following:

‘1.
All financial actors within the meaning of Chapter 2
of
this Title and any other person involved in budget
implementation, management, audit or control shall be
prohibited from taking any measures which may bring
their own interests
the
Community body. Should such a case arise, the person in
question must refrain from such measures and refer the
matter to the competent authority.

into conflict with those of

2.
There is a conflict of interests where the impartial and
objective exercise of the functions of a person referred to in
paragraph 1 is compromised for reasons involving family,
emotional
life, political or national affinity, economic
interest or any other shared interest with the beneficiary.’;

17. In Article 38(6), the following sentences are added:

‘Personal data contained in supporting documents shall be
deleted where possible when those data are not necessary
for budgetary discharge, control and audit purposes. In any
event,
traffic data,
Article 37(2) of Regulation (EC) No 45/2001 shall apply.’;

conservation of

concerns

the

as

13. Article 32 is amended as follows:

18. In Article 39(3), the following subparagraphs are added:

(a)

In the third subparagraph of paragraph 1, the words
‘A1 and A2 and A3’ are replaced by ‘AD 16, AD 15,
AD 14 and AD 13’;

(b) In paragraph 2, the following sentence is added:

‘For the purpose of ex ante verification, a series of similar
individual transactions relating to routine expenditure on
salaries, pensions, reimbursement of mission expenses and
medical expenses may be considered by the authorising
officer responsible to constitute a single operation.

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In the case referred to in the second subparagraph, the
authorising officer
responsible shall, depending on his
risk assessment, carry out an appropriate ex post verifi-
cation, in accordance with paragraph 4.’;

19. In Article 40, paragraph 1 is replaced by the following:

The

shall

report

authorising

‘1.
the
officer
management board on the performance of his duties in
the form of an annual activity report,
together with
financial and management
information confirming that
the information contained in the report presents a true
and fair view except as otherwise specified in any reser-
vations related to defined areas of revenue and expenditure.

to

The annual activity report shall indicate the results of his
operations by reference to the objectives set, the risks asso-
ciated with these operations, the use made of the resources
provided and the efficiency and effectiveness of the internal
control system. The internal auditor within the meaning of
Article 71 shall take note of the annual activity report and
any other pieces of information identified.’;

20. Article 43 is replaced by the following:

‘Article 43

The management board shall appoint an accounting
1.
officer, covered by the Staff Regulations, who shall be func-
tionally independent in the performance of his duties. He
shall be responsible in the Community body for:

(a) proper

implementation of payments, collection of
revenue and recovery of amounts established as being
receivable;

(b) preparing and presenting the accounts in accordance

with Title VII;

(c) keeping the accounts in accordance with Title VII;

(d) implementing,

in accordance with Title VII,

the
accounting rules and methods
chart of
accounts in accordance with the provisions adopted
by the Commission's accounting officer;

and the

The

accounting officer

shall obtain from the
2.
authorising officer, who shall guarantee its reliability, all
the information necessary for the production of accounts
which give a true image of the Community body's assets
and of budget implementation.

2a.
Before the adoption of the accounts by the Director,
the accounting officer shall sign them off, thereby certifying
the accounts
that he has a reasonable assurance that
present a true and fair view of the financial situation of
the Community body.

For that purpose the accounting officer shall satisfy himself
that the accounts have been prepared in accordance with
the accounting rules, methods and accounting systems
is
established, and that all
entered in the accounts.

revenue and expenditure

The authorising officer shall forward all
information that
the accounting officer needs in order to fulfil his duties.

The authorising officer shall remain fully responsible for
the proper use of the funds they manage as well as the
legality and regularity of
their
control.

the expenditure under

2b.
The accounting officer shall be empowered to check
the information received as well as to carry out any further
checks he deems necessary in order
the
accounts.

to sign off

The accounting officer shall make reservations, if necessary,
explaining exactly the nature and scope of such reser-
vations.

2c.
The accounting officer of the Community body shall
sign off its annual accounts and send them to the Commis-
sion's accounting officer.

Subject to paragraph 4 of this Article and Article 44,
3.
only the accounting officer shall be empowered to manage
cash and cash equivalents. He shall be responsible for their
safekeeping.

(e)

laying down and validating the accounting systems and,
where appropriate, validating systems laid down by the
authorising officer to supply or justify accounting infor-
mation; the accounting officer shall be empowered to
verify the respect of validation criteria;

4.
The accounting officer may, in the performance of his
duties, delegate certain tasks to subordinate staff subject to
the Staff Regulations, where this is indispensable for the
performance of his duties.

(f)

treasury management.

5.
The instrument of delegation shall lay down the tasks
entrusted to the delegatees and their rights and obligations.’

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21. In Article 44, the following paragraph is added:

‘Payments from imprest accounts may be made by bank
credit transfer, including the direct debit system referred to
in Article 66(1a), cheque or other means of payment, in
accordance with the
laid down by the
instructions
accounting officer.’

22. In title IV, Chapter 3, the title of Section 2 is replaced by

the following:

‘S e c t i o n 2

applicable

Rules
officer
the
authorising officers by delegation or subdelegation’

authorising

to

and

23. Article 47 is replaced by the following:

‘Article 47

The authorising officer shall be liable to payment of

1.
compensation as laid down in the Staff Regulations.

The obligation to pay compensation shall apply in

1a.
particular if:

(a)

authorising officer, whether

the
intentionally or
through gross negligence on his part, determines enti-
tlements to be recovered or issues recovery orders,
commits
a payment order
without complying with this Regulation and its imple-
menting rules;

expenditure or

signs

(b) the

authorising officer, whether

intentionally or
through gross negligence on his part, omits to draw
up a document establishing an amount
receivable,
neglects to issue a recovery order or is late in issuing
it, or
thereby
is late in issuing a payment order,
rendering the Community body liable to civil action
by third parties.

2.
An authorising officer by delegation or subdelegation
who considers that a decision falling under his responsi-
bility is irregular or contrary to the principles of sound
financial management
delegating
shall
authority in writing. If the delegating authority then gives
a reasoned instruction in writing to the authorising officer
by delegation or subdelegation to implement the decision
in question, the latter must implement it and may not be
held liable.

inform the

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

The specialised financial irregularities panel set up by
4.
the Commission in accordance with Article 66(4) of the
general Financial Regulation, shall exercise the same powers
in respect of the Community body as it does in respect of
Commission departments, unless the management board
decides to set up a functionally independent panel, or to
participate
several
Community bodies. For cases submitted by Community
bodies, the specialised financial
irregularities panel set up
include one staff member of a
by the Commission shall
Community body.

established by

joint panel

in a

On the basis of the opinion of this panel, the Director shall
to initiate disciplinary proceedings or
decide whether
proceedings
the
the payment of compensation.
for
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, the panel shall send it to the management
board
auditor. The
internal
Director shall refer,
in anonymous form, to opinions of
the panel
in his annual activity report and indicate the
follow-up measures taken.

and the Commission's

If

in part,

5.
Any member of staff may be required to compensate,
suffered by the
in whole or
any damage
Community body as a result of serious misconduct on
his part
in connection with the
performance of his duties.

in the course of or

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

24. Article 50 is replaced by the following:

‘Article 50

The Community body shall present to the Commission
requests for payment of all or part of the Community
subsidy pursuant
to Article 15(5) under terms and at
intervals agreed with the Commission.’;

25. In Article 53, paragraph 3 is replaced by the following:

‘3.
The contracts and grant agreements concluded by the
Community body shall provide that any debt not repaid on
the due date laid down in the debit note shall bear interest
in accordance with Commission Regulation (EC, Euratom)
No 2342/2002 (*). The condition whereby interest on late
payment is due to the Community body, including the rate
for default interest, shall be explicitly referred to in the
contracts and grant agreements.
___________
(*) OJ L 357, 31.12.2002, p. 1.’

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26. In Article 55(3), the first and second subparagraphs are

replaced by the following:

of such fees and charges shall be made at the beginning of
each financial year.

‘Where the authorising officer responsible is planning to
waive or partially waive
an established
amount receivable, he shall ensure that the waiver is in
order and complies with the principle of sound financial
management and proportionality.

recovery of

Such a waiver shall be made by a duly substantiated
decision of the authorising officer. The authorising officer
may delegate such a decision only for amounts receivable
of less than EUR 5 000.’;

27. In Article 58, point (a) is replaced by the following:

‘(a)

the debtor undertakes to pay interest at
the rate
specified in Article 86 of Regulation (EC, Euratom)
No 2342/2002 for
additional period
allowed, starting from the date set in the debit note.’;

entire

the

28. In Title IV, Chapter 4, Section 5, the following Articles 58a

and 58b are inserted:

‘Article 58a

The accounting officer shall keep a list of amounts due to
be recovered, in which the Community body's entitlements
are grouped according to the date of issue of the recovery
order. He shall also indicate decisions to waive or partially
waive recovery of established amounts. The list shall be
added to the Community body’s report on budgetary and
financial management.

The Community body shall establish a list of the body’s
the debtors and the
entitlements stating the names of
amount of the debt, where the debtor has been ordered
to pay by a Court decision that has the force of res judicata
and where no or no significant payment has been made for
one year following its pronouncement. The list shall be
legislation on
published,
data protection.

taking account of

the relevant

Article 58b

Entitlements of the Community body in respect of third
parties and entitlements of third parties in respect of the
Community body shall be subject to a limitation period of
five years, which shall be laid down in the contracts and
grant agreements concluded by the Community body.’;

29. Article 59 is replaced by the following:

the management board,

Where fees and charges are entirely determined by legis-
lation or decisions of
the
authorising officer may abstain from issuing recovery
orders and directly draw up debit notes after having estab-
lished the amount receivable. In this case all details of the
Community body’s entitlement shall be registered. The
accounting officer shall keep a list of all debit notes and
provide the number of
the debit notes and the global
in the Community body’s report on budgetary
amount
and financial management.

Where the Community body uses a separate invoicing
system, the accounting officer shall regularly, and at least
on a monthly basis, enter the accumulated sum of fees and
charges received into the accounts.

As a general
rule the Community body shall provide
services by virtue of the tasks entrusted to it only after
the corresponding fee or charge has been paid in its
entirety.
If by way of exception, a service has been
the corresponding
provided without prior payment of
charge or fee, Sections 3, 4, and 5 of this Chapter shall
apply.’;

30. In Article 60(3), the following sentence is added: ‘The work
and
comprise

objectives

detailed

programme
performance indicators.’

shall

31. Article 62 is replaced by the following:

‘Article 62

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

Global budget commitments shall cover the total cost
commitments
individual
the

2.
of
concluded up to 31 December of year N+1.

corresponding

legal

Individual legal commitments relating to individual or pro-
visional budget commitments shall be concluded by 31
December of year N.

‘Article 59

Where the Community body collects fees and charges
referred to in Article 5(a), an overall provisional estimate

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

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

Any parts of such commitments which have not been
executed six months after that final date shall be decom-
mitted in accordance with Article 11.

The amount of a budget commitment corresponding to a
legal commitment
for which no payment within the
meaning of Article 67 has been made in a period of
three years following the signing of the legal commitment
shall be decommitted.’;

32. In Article 66, the following paragraph 1a is inserted:

‘1a. Where periodic payments are made with regard to
services
services, or goods
including rental
delivered, and subject to his risk analysis, the authorising
officer may order the application of a direct debit system.’;

rendered,

33. In Article 72(1), point (b) is replaced by the following:

‘(b)

for assessing the efficiency and effectiveness of the
internal control and audit
systems applicable to
every budget implementation operation.’;

34. Article 74 is replaced by the following:

No 2965/94 (*)
services or performance of work that the latter provide.

for the supply of goods, provision of

The Community body may use joint procurement
5.
procedures with contracting authorities of
the host
Member State to cover its administrative needs. In such
case, Article 125c of Regulation (EC, Euratom) No
2342/2002 shall apply mutatis mutandis.

For the application of Article 101 of

6.
the general
Financial Regulation, the call for tender shall provide that
the Community body may, before the contract is signed,
either abandon the procurement or cancel
the award
procedure without
tenderers being
the
entitled to claim any compensation.

candidates or

For the application of Article 103 of

the general
7.
launched by the
Financial Regulation, calls for
Community body shall provide that it may suspend the
procedure and may take whatever measures are necessary,
including the cancellation of
the
conditions laid down in that Article.

the procedure under

tender

For the application of Article 103 of the general Financial
the contracts concluded by the Community
Regulation,
body with economic operators shall stipulate that it may
take the measures specified in that Article under
the
conditions laid down therein.

___________
(*) OJ L 314, 7.12.1994, p. 1.’

‘Article 74

35. The following Titles VA and VB are inserted:

1.
As regards procurement, the relevant provisions of
the general Financial Regulation and Regulation (EC,
Euratom) No 2342/2002 shall apply subject to paragraphs
4 to 7 of this Article.

‘TITLE VA

The Community body may be associated, at

its
2.
request,
award of
Commission or interinstitutional contracts and with the
award of contracts of other Community bodies.

contracting

authority,

in the

as

The Community body

3.
in the
common central database set up and operated by the
Commission pursuant
the general
Financial Regulation.

to Article 95 of

shall participate

PROJECTS WITH SIGNIFICANT BUDGET IMPLICATIONS

Article 74a

The management board shall, as soon as possible, notify
the budgetary authority of its intention to implement any
project, which may have significant financial
implications
for the funding of its administrative budget, in particular
any projects relating to property such as the rental or
purchase of buildings.
inform the Commission
It shall
thereof.

The Community body may conclude a contract,
4.
to a public procurement
without having
the interinstitutional
procedure, with the Commission,
offices and the Translation Centre for bodies of
the
European Union established by Council Regulation (EC)

recourse

If either branch of the budgetary authority intends to issue
an opinion, it shall within two weeks after receipt of the
information on the project notify the Community body
concerned of
intention to issue such an opinion.
Failing a reply, the Community body may proceed with
the planned operation.

its

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This opinion shall be forwarded to the Community body
within four weeks of
to the
second paragraph.

the notification pursuant

TITLE VB

EXPERTS

Article 74b

for assisting the Community body,

Article 265a of
the Regulation (EC, Euratom) No
2342/2002 shall apply mutatis mutandis for the selection
of experts. Such experts shall be paid on the basis of a
fixed amount,
in
particular in evaluating proposals and grant applications
or tenders for procurement, and for providing technical
assistance in the follow-up to, and final evaluation of
projects. The Community body may use the lists drawn
up by the Commission or other Community bodies.’;

36. Article 75 is replaced by the following:

‘Article 75

1. Where the Community body may award grants in
accordance with its constituent instrument or by delegation
the
the Commission pursuant
of
to Article 54(2)(b) of
general Financial Regulation,
the relevant provisions of
the general Financial Regulation and Regulation (EC,
Euratom) No 2342/2002 shall apply subject to paragraphs
2 and 3 of this Article.

Grants

2.
between the Community body and the beneficiary.

covered by written agreements

shall be

3.
For the application of Article 119(2) of the general
Financial Regulation, grant agreements concluded by the
Community body shall stipulate that
it may suspend,
reduce or terminate the grant in the cases provided for
by Article 183 of Regulation (EC,
Euratom) No
2342/2002 after the beneficiary has been given the oppor-
tunity to make his observations.’

37. In Article 76, the second paragraph is replaced by the

following:

‘The accounts of the Community body shall be accom-
panied by a report on budgetary and financial management
during the year. The report shall give an account, inter alia,
of
the appropriations
implementation of
together with summary information on the transfers of
appropriations among the various budget items.’;

the rate of

38. Articles 82 and 83 are replaced by the following:

‘Article 82

The accounting officer shall send to the Commission's
accounting officer and the Court of Auditors by no later

than 1 March of the following year its provisional accounts,
together with the report on budgetary and financial
management during the year, referred to in Article 76 of
this Regulation,
the Commission's accounting
officer can consolidate the accounts as provided for in
Article 128 of the general Financial Regulation.

so that

The accounting officer
shall also send the report on
to the European
budgetary and financial management
Parliament and the Council by 31 March of the following
year at the latest.

Article 83

In accordance with Article 129(1) of

1.
the general
Financial Regulation, the Court of Auditors shall, by 15
June of the following year at the latest, make its obser-
vations on the provisional accounts of
the Community
body.

On receiving the Court of Auditors’ observations on
2.
the
the provisional accounts of
Director
the
Community body in accordance with Article 43, under
his own responsibility, and send them to the management
board, which shall give an opinion on these accounts.

the Community body,
accounts of

shall draw up the

final

The Director shall send the final accounts, together
3.
with the opinion of
to the
Commission's accounting officer, the Court of Auditors,
the European Parliament and the Council, by 1 July of
the following year at the latest.

the management board,

4.
The final accounts of the Community body, conso-
lidated with those of the Commission, shall be published in
the Official Journal of the European Union by 15 November of
the following year.

5.
The Director shall send the Court of Auditors a reply
to the observations made in its annual report by 30
September of the following year at the latest. The replies
of the Community body shall be sent to the Commission at
the same time.’;

39. Article 94 is replaced by the following:

‘Article 94

1.
The European Parliament, upon a recommendation
from the Council, shall, before 15 May of year N+2 save
where otherwise provided in the constituent instrument,
give a discharge to the director in respect of the implemen-
tation of the budget for year N. The director shall inform
the management board of the observations of the European
Parliament contained in the resolution accompanying the
discharge decision.

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If the date provided for in paragraph 1 cannot be
2.
met, the European Parliament or the Council shall inform
the director of the reasons for the postponement.

If the European Parliament postpones the decision
in cooperation with the
to take
facilitate

3.
giving a discharge, the director,
management board,
every effort
measures as soon as possible to remove or
removal of the obstacles to that decision.’

shall make

‘Article 99

The management board shall, as far as is necessary and
with the Commission’s prior consent, adopt detailed rules
for
the
of
Community body, on a proposal from its Director.’

implementing

regulation

financial

the

Article 2

Each body referred to in Article 185 of the general Financial
Regulation shall amend its financial regulation by 10 January
2009 at the latest.

40. Article 97 is deleted;

Article 3

41. Article 99 is replaced by the following:

This Regulation shall enter into force on the third day following
the European
that of
Union.

its publication in the Official

Journal of

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 9 July 2008.

For the Commission
Dalia GRYBAUSKAITĖ
Member of the Commission