2012/598/EU: Decision of the European Parliament of 10 May 2012 on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2010
Date: 2012-05-10
Institutions: European Parliament
Subjects: European Union Agency for Fundamental Rights, budgetary discharge, financial year, general budget (EU)




L_2012286EN.01028101.xml










17.10.2012   


EN


Official Journal of the European Union


L 286/281








            DECISION OF THE EUROPEAN PARLIAMENT
         
of 10 May 2012
         
on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2010
(2012/598/EU)


THE EUROPEAN PARLIAMENT,






—


having regard to the final annual accounts of the European Union Agency for Fundamental Rights for the financial year 2010,










—


having regard to the Court of Auditors’ report on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2010, together with the Agency’s replies (1),










—


having regard to the Council’s recommendation of 21 February 2012 (06083/2012 – C7-0051/2012),










—


having regard to Article 319 of the Treaty on the Functioning of the European Union,










—


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 Communities (2), and in particular Article 185 thereof,










—


having regard to Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights (3), and in particular Article 21 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 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,










—


having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,










—


having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0122/2012),






1.   

Grants the Director of the European Union Agency for Fundamental Rights discharge in respect of the implementation of the Agency’s budget for the financial year 2010;



2.   

Sets out its observations in the resolution below;



3.   

Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Director of the European Union Agency for Fundamental Rights, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).






The President

Martin SCHULZ
            



The Secretary-General

Klaus WELLE
            





(1)  
            OJ C 366, 15.12.2011, p. 9.

(2)  
            OJ L 248, 16.9.2002, p. 1.

(3)  
            OJ L 53, 22.2.2007, p. 1.

(4)  
            OJ L 357, 31.12.2002, p. 72.






            RESOLUTION OF THE EUROPEAN PARLIAMENT
         
of 10 May 2012
         
with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2010


THE EUROPEAN PARLIAMENT,






—


having regard to the final annual accounts of the European Union Agency for Fundamental Rights for the financial year 2010,










—


having regard to the Court of Auditors’ report on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2010, together with the Agency’s replies (1),










—


having regard to the Council’s recommendation of 21 February 2012 (06083/2012 – C7-0051/2012),










—


having regard to Article 319 of the Treaty on the Functioning of the European Union,










—


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 Communities (2), and in particular Article 185 thereof,










—


having regard to Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights (3), and in particular Article 21 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 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,










—


having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,










—


having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0122/2012),










A.


whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the European Union Agency for Fundamental Rights (‘the Agency’) for the financial year 2010 are reliable and that the underlying transactions are legal and regular,










B.


whereas on 10 May 2011 Parliament granted the Director of the Agency discharge for implementation of its budget for the financial year 2009 (5), and in its resolution accompanying the discharge decision, inter alia:






—


urged the Agency to improve its budgetary and recruitment planning in order to address the lack of consistency between its budgetary and staff forecasting,










—


called on the Agency to make progress in ensuring a realistic evaluation of tenders,










—


called on the Agency to remedy the four outstanding recommendations of the Internal Audit Service (IAS),














C.


whereas the overall budget of the Agency for the financial year 2010 was EUR 20 200 000, which is an increase of 17,44 % compared to 2009,










D.


whereas the initial contribution of the Union to the budget of the Agency for 2010 was EUR 19 100 000 compared to EUR 17 000 000 in 2009 (6), which represents an increase of 12,35 %,






Budgetary and financial management









1.


Recalls that the initial Union contribution to the Agency for 2010 amounted to EUR 19 100 000; notes, however, that EUR 900 000, coming from the recovery of surplus, was added to this amount which, as a result, makes a total Union contribution of EUR 20 000 000;












2.


Acknowledges from the Agency’s Report on Budgetary and Financial Management (RBFM) that two amending budgets took place during the financial year 2010 and amounted to EUR 212 010; notes in particular that the purpose of the two amending budgets was twofold:






—


to take into consideration Croatia’s participation in the work of the Agency;










—


to acknowledge that the Agency received one third of the monthly rent for the period January to June 2010 from the Austrian authorities;
















3.


Notes from the RBFM that EUR 13 830 000 was allocated to administrative expenses and EUR 6 170 000 was allocated to the operational expenditure; notes that these figures represent an increase of 13 % for administrative expenditure and an increase of 26 % for operational expenditure compared to the 2009 final budget;












4.


Ascertains from the Agency that the implementation rate of the Union contribution followed the previous year’s trend and remained at 100 %, and that the budget execution rate in terms of payments reached 61,65 % in 2010 compared to 60,64 % in 2009; notes with concern that under Title III (Operational expenditure) the budget execution rate in terms of payments reached only 28,08 %; therefore calls on the Agency to make further efforts and to take appropriate actions to ensure a greater level of budget execution in terms of payment, in particular under Title III;












5.


Welcomes the Agency’s ICT software development for project management (i.e. MATRIX), which constitutes an effective computer-aided tool for setting up project plans and documenting them in a uniform manner and for implementing and managing projects, and which, based on the IAS audit on planning and monitoring of March 2011, was stated to constitute best practice and a source of strength; also welcomes the Agency’s initiative to link MATRIX with ABAC, the budgetary system, in order to provide information on the level of commitment and payment appropriations execution;





Carry-over appropriations and transfers









6.


Urges the Agency to improve its budgetary implementation planning in order to reduce its high level of carry-overs (EUR 6 900 000); notes in particular from the Court of Auditors that the Agency committed 48 %, i.e. EUR 4 600 000, of its annual Title III (Operational expenditure) in December 2010; is of the opinion that such concentration of spending in the final weeks of the year has a significant impact on the level of carry-overs and indicates a clear need to improve the Agency’s budgetary implementation planning; notes from the Agency that it has recently adopted a budget module which should enable it to plan annually its level of carry-overs;












7.


Acknowledges, nevertheless, the Agency’s statement that it has taken appropriate measures (e.g. planning two years in advance) to improve spreading budget implementation throughout the year, thereby avoiding concentration during the last month;












8.


Ascertains from the Agency that the implementation rate of appropriations carried forward automatically from 2009 to 2010 reached 94 % in 2010, leaving EUR 414 633 unused;












9.


Notes from the RBFM that the Management Board approved two budgetary transfers totalling EUR 2 791 055; takes note that these transfers were linked to the allocation of the surplus generated under Title 1 (Staff expenditure) due to delays in recruitment;












10.


Establishes from the RBFM that the Director of the Agency authorised 14 budgetary transfers totalling EUR 228 111; notes from the Agency that these transfers mainly relate to corrective actions required for the efficient implementation of its Annual Work Programme as well as for administrative expenditure;












11.


Notes with concern the Court of Auditors’ comment on the commitment of 48 % of the operational expenditure in the last month of 2010 and on the high level of carry-overs as a consequence; supports the efforts of the Agency to avoid this situation in the future, namely by planning its activities two years in advance and setting objectives during the course of the year in respect of budget implementation; calls on the Agency to ensure that its budget planning allows for ad hoc requests by Parliament; notes that almost all amounts carried over to 2011 were used, leading to a final 2010 outturn of 98,55 %;












12.


Invites the Agency to take the necessary steps to determine and resolve the main obstacles related to budget expenditure, project funding, recruitment, and legal and administrative constraints, in order to ensure the efficient management of its budget;





Human resources









13.


Notes from its RBFM that the Agency faced difficulties in attracting candidates to respond to the call for expressions of interest for the posts of Seconded National Experts; notes with disappointment that two successful candidates withdrew their expressions of interest in secondment to the Agency;












14.


Notes that discharge in respect of the implementation of the budget of the Agency should continue to be based on its performance throughout the year;












15.


Notes with concern the delay in completing recruitment procedures, meaning that only 59 out of 72 posts could be filled during 2010; calls on the Agency to take all necessary steps to prevent a recurrence of this situation; notes with concern the allegations of harassment of staff and the lawsuit that has been filed; requires the Agency to address those allegations adequately; calls on the Agency to clarify the treatment of whistleblowers and to provide a written report to Parliament on the application of the rules in place to protect whistleblowers;












16.


Notes with concern that, during the 2009 discharge procedure, the Court of Auditors already commented that the Agency could improve its budgetary and recruitment planning, notably in respect of the high vacancy rate (21 %) and the high volume of appropriations carried forward; reiterates that the Agency should take all necessary steps to improve the situation;





Performance









17.


Acknowledges from its Annual Activity Report that the Agency adopted a code of good administrative behaviour which, together with the Staff Regulations, aims to ensure ethical conduct, avoid conflicts of interest, prevent fraud and encourage reporting of irregularities; notes, moreover, that specific measures for awareness-raising and avoiding conflicts of interest (declarations) are taken during recruitment procedures and procurement selection panels;












18.


Notes with satisfaction that, in order to further strengthen this internal control, the Agency aims to improve the application of the whistleblowing rules and the protection of whistleblowers, and that this improvement is planned to take place during 2012; calls on the Agency to inform the discharge authority of the measures adopted and implemented in this respect;





Internal audit









19.


Acknowledges that the IAS followed up the implementation of its recommendations made in 2010; notes in particular that all those recommendations were closed;












20.


Notes from the Agency that the IAS performed an audit on planning and monitoring in March 2011 and formulated 11 recommendations, one of which was rated as ‘very important’, seven as ‘important’ and three as ‘desirable’; takes note of the Agency’s statement that the IAS considered 10 of the 11 recommendations to be implemented and that the remaining ‘important’ recommendation was considered to be still in progress;












21.


Draws attention to its recommendations from previous discharge reports, as set out in the Annex to this resolution;












22.


Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of 10 May 2012 (7) on the performance, financial management and control of the agencies.






(1)  
            OJ C 366, 15.12.2011, p. 9.

(2)  
            OJ L 248, 16.9.2002, p. 1.

(3)  
            OJ L 53, 22.2.2007, p. 1.

(4)  
            OJ L 357, 31.12.2002, p. 72.

(5)  
            OJ L 250, 27.9.2011, p. 220.

(6)  
            OJ L 64, 12.3.2010, p. 1037.

(7)  Texts adopted, P7_TA(2012)0164 (see page 388 of this Official Journal).





ANNEX

EUROPEAN PARLIAMENT RECOMMENDATIONS OVER THE PAST YEARS










Agency for Fundamental Rights


2006


2007


2008


2009




Performance


n.a.








—


The Agency should strive for synergies with other institutions active in the field of human rights












—


SMART objectives and RACER indicators should be introduced in the assessments of the achievements






n.a.




Budgetary and Financial Management: procurement procedures








—


The Agency did not respect the rules for budget presentation










—


Issues in the budgetary management












—


The principle of sound financial management has been threatened by the published evaluation method; it has decreased the relative importance of the price criterion (awaiting for a new evaluation method)










—


Almost all appropriations were committed (EUR 13 900 000  out of EUR 14 200 000 )












—


The principle of sound financial management has been threatened by the published evaluation method; it has decreased the relative importance of the price criterion












—


Urges the Agency to improve its budgetary and recruitment planning in order to redress the lack of consistency between its budgetary and staff forecasting










—


Calls on the Agency to make progress in ensuring a realistic evaluation of tenders








Human resources


n.a.


n.a.


n.a.


n.a.




Internal audit


n.a.


n.a.








—


The Agency fulfilled all the recommendations made by the Internal Audit Service












—


Out of nine recommendations of the IAS, four have yet to be implemented by the Agency