Financial Activity Report 2012 — Section II — European Council and Council
Date: 2013-10-22
Institutions: Council of the European Union
Subjects: Council of the European Union, European Council, budgetary assessment, budgetary expenditure, budgetary resources, financial market, implementation of the budget








C_2013307EN.01000101.xml










22.10.2013   


EN


Official Journal of the European Union


C 307/1





FINANCIAL ACTIVITY REPORT 2012
Section II — European Council and Council
2013/C 307/01

TABLE OF CONTENTS







1.

INTRODUCTION









2.

SUMMARY









3.

OBJECTIVES AND BUDGET FOR THE FINANCIAL YEAR 2012









3.1.

The main administrative objectives









3.2.

Establishment of the budget for the European Council and Council in 2012









3.2.1.

General approach









3.2.2.

Budget 2012









3.2.3.

Budget 2012 and the Financial Perspectives of Heading 5 of the EU budget









4.

GLOBAL OVERVIEW OF BUDGET IMPLEMENTATION IN 2012









4.1.

Activities and objectives in 2012









4.1.1.

European Council and Council activities in 2012









4.1.2.

Achievement of administrative objectives in 2012









4.2.

Revenue









4.3.

Expenditure in 2012









4.3.1.

Overview of implementation of the budget in 2004-2012









4.3.2.

Implementation of the appropriations by category 2012









4.3.3.

Modification of the budget in 2012









4.4.

Appropriations carried over









4.4.1.

Implementation of the carry-over appropriations from 2011 to 2012









4.4.2.

Appropriations carried over from 2012 to 2013









4.5.

Assigned revenue









4.5.1.

Assigned revenue accrued before 2012









4.5.2.

Assigned revenue accrued in 2012



1.   INTRODUCTION

In conformity with Article 142 of the Financial Regulation (FR) (1) this document constitutes a report on budgetary and financial management of Section II of the EU budget (European Council and Council) for the financial year 2012.
The report is based on the accounts for 2012, the findings in the annual activity reports of the Council’s authorising officers and the budget implementation information from the Council’s financial system.
Chapter 3 of this report presents a summary of the framework which was established for the financial year 2012. A global overview on the implementation of the budget appropriations available in 2012 is given in Chapter 4.
The implementation of the budget 2012 by budget line is presented in the Annex.
2.   SUMMARY

The General Secretariat of the Council (GSC hereafter) continued efforts to rationalise the budget set up and implementation in 2012 by reinforcing substance knowledge and the operational competencies of its financial agents. As a result of a thorough analysis on the real needs and prioritisation, the budget for the European Council and Council (EC/C hereafter) 2012 was reduced by EUR 29 million compared to 2011.
The efforts to streamline the size and the use of GSC’s human resources was translated into a reduction of 20 posts in the establishment plan totalling, thus, to 3 153 posts in the EC/C establishment plan in 2012.
The EC/C budget 2012 was established at EUR 533,9 million. At the end of 2012, an amount of EUR 489,9 million was committed whereas EUR 44 million was cancelled. Thus, the implementation rate of the EC/C budget was 91,8 % in 2012.
The main reasons for the cancelled appropriation of EUR 44 million are:






—


underspending of the delegations’ travel envelopes (EUR 14,7 million),










—


underspending in interpretation (EUR 5,9 million),










—


no salary adjustment (EUR 7,4 million),










—


reduced need for the Official Journal (EUR 0,9 million),










—


under-occupation of posts in the establishment plan and lower salary costs (EUR 6,4 million),










—


smaller need for other staff expenditure (e.g. contractual agents, SNEs,), and missions (EUR 3 million),










—


lower need for organising meetings, technical installations and office equipment (EUR 1,5 million),










—


non-activation of the reserve (EUR 2 million).




As for the cancelled appropriations, it should be noted that the four first points (EUR 29 million) practically depend on the activities/actions of the Member States, i.e. use of delegations’ travel and interpretation envelopes, decisions on salary adjustments, and how and when the legislative decisions are converted into publications in the Official Journal.
3.   OBJECTIVES AND BUDGET FOR THE FINANCIAL YEAR 2012

3.1.   The main administrative objectives

The main administrative objectives of the General Secretariat of the Council for 2012 were:






—


To ensure continuous support to the President of the European Council and to the Council.










—


To proceed further with the process of administrative modernisation with the objective to reinforce the quality of its organisation.










—


To prepare the adaptation of its organisation to the accession of Croatia in July 2013.




3.2.   Establishment of the budget for the European Council and Council in 2012

3.2.1.   General approach

The establishment of the budget 2012 for the European Council and Council was based on two separate procedures:






(1)


the proposal for the draft budget 2012 in March 2011; and










(2)


an amending letter to the draft budget 2012 in August 2011 in view of the accession of Croatia.




The 2012 EC/C budget was based on the objective of zero growth in terms of appropriations compared to the level of 2011. In addition to this zero growth approach, the appropriations for some specific items were reduced, taking into account past years’ budget implementation.
In order to prepare the accession of Croatia, resources were necessary already for 2012, notably for the Croatian language (translators and lawyer linguists) and for the publication of the acquis communautaire in that language. Therefore, the Commission invited the institutions on 30 June 2011 to introduce by 5 August 2011 their proposals for the accession related resources which were then incorporated into the amending letter to the draft budget 2012 of the EU. To face the requirements of the accession of Croatia, the GSC proposed an addition to its draft budget 2012 of EUR 1 375 000.
3.2.2.   Budget 2012

The budget authority established the overall EC/C budget 2012 at EUR 533,9 million.
The difference of EUR – 29,3 million (– 5,2 %) compared to the 2011 budget breaks down as follows:






—


reduction of EUR 10 million from advance payments for the Europa-Building,










—


reduction of EUR 9 million from delegations’ travel expenses,










—


reduction of EUR 8 million from interpretation,










—


reduction of EUR 4 million from the contingency reserve,










—


reduction of EUR 2,5 million related to the building contracts transferred to EEAS,










—


increase of EUR 2,8 million for operating expenditure (e.g. statutory and contractual obligations),










—


increase of EUR 1,4 million to prepare the accession of Croatia, which breaks down as follows.






—


Contractual staff related expenditure: EUR 400 000,










—


Official Journal/acquis communautaire: EUR 550 000,










—


Buildings, equipment and operating expenditure: EUR 425 000.








The establishment plan 2012 of the EC/C was reduced by 20 posts from 3 173 to 3 153.
Table 1 gives an overview on how the budget 2012 was established by category. With the impact of the supplementary resources to prepare the accession of Croatia the nominal decrease of the 2012 EC/C compared to 2011 was 5,2 %. Given the estimated inflation of 1,8 % for 2012 the EC/C budget was actually reduced in real terms by 7 %.

Table 1


EC/C budget 2012 compared to 2011 (by category)











(EUR)




Category


Budget 2011


Draft budget 2012


Amending letter (Cro)


Final budget 2012


Difference 2012/2011




 


1


2


3


4 = 2 + 3


5 = 4/1




Establishment plan


288 302 206


294 797 000


—


294 797 000


2,3 %




Other staff expenditure


24 586 301


23 065 000


425 000


23 490 000


–4,5 %




Buildings


38 255 000


38 153 000


350 000


38 503 000


0,6 %




IT systems


35 782 000


36 091 000


25 000


36 116 000


0,9 %




Interpreting costs


94 722 973


86 723 000


—


86 723 000


–8,4 %




Delegations’ travel expenses


33 675 000


24 675 000


—


24 675 000


–26,7 %




Official Journal


5 193 000


4 626 000


550 000


5 176 000


–0,3 %




Title III (transferred to EEAS in 2012)


2 536 000


—


—


—


– 100,0 %




Miscellaneous


19 210 000


17 415 000


25 000


17 440 000


–9,2 %




Reserve


6 000 000


2 000 000


—


2 000 000


–66,7 %




Total (excl. acquisition)


548 262 480


527 545 000


1 375 000


528 920 000


–3,5 %




Acquisition of immovable property


15 000 000


5 000 000


—


5 000 000


–66,7 %




Grand total


563 262 480


532 545 000


1 375 000


533 920 000


–5,2 %




3.2.3.   Budget 2012 and the Financial Perspectives of Heading 5 of the EU budget

Table 2 gives an overview on the evolution of the EC/C budget in 2006-2012. The EC/C share in the Heading 5 of the Multiannual Financial Perspectives has declined from 8,8 % in 2006 to 6,2 % in 2012.
The reductions achieved in 2006-2012 are largely a result of prudent budget management. The significant reduction in 2011 is mainly due to the transfer of resources to the EEAS, whereas the decrease in 2012 resulted from reductions of appropriations of certain activities in view of the previous years’ implementation and actual need (e.g. interpretation and delegations’ travel expenses; ref. point 3.2.2).

Table 2


Evolution of Section II of the EU budget (European Council and Council) under Heading 5 of the Financial Perspectives in 2006-2012




















(Amounts at current prices)


2006


2007


2008


2009 (2)



2010


2011


2012




million EUR


change


million EUR


change


million EUR


change


million EUR


change


million EUR


change


million EUR


change


million EUR


change




Heading 5


6 708


5,5 %


7 115


6,1 %


7 457


4,8 %


7 603


2,0 %


7 962


4,7 %


8 173


2,7 %


8 607


5,3 %




EC/C


592


5,2 %


594


0,3 %


595


0,2 %


603


1,3 %


634


5,1 %


563


–11,2 %


534


–5,2 %





EC/C share in Heading 5



8,8 %


8,3 %


8,0 %


7,9 %


8,0 %


6,9 %


6,2 %




4.   GLOBAL OVERVIEW OF BUDGET IMPLEMENTATION IN 2012

4.1.   Activities and objectives in 2012

4.1.1.   European Council and Council activities in 2012

In the framework of the financial activity report, the GSC provides information on its core activities which are relevant from the financial point of view, and which describe the functioning of the Council and European Council during the financial year.
Table 3 gives an overview of the development of the number of meetings organised by the GSC for the European Council and Council in 2003-2012. In addition to the 4 704‘institutional’ meetings, the GSC has organised a further 2 189 internal meetings, training sessions, seminars, information sessions and briefings, and meetings with third countries in 2012.

Table 3


Development of the number of meetings in 2003-2012
















Institutional meetings


2003


2004


2005


2006


2007


2008


2009


2010


2011


2012




Summits


6


5


3


3


3


5


7


7


9


7




Councils


77


76


80


76


68


81


74


86


85


77




Coreper


134


128


123


120


106


144


140


122


135


140




Working groups


4 333


3 971


3 918


4 037


4 183


4 480


4 272


4 127


4 373


4 480




Total


4 550


4 180


4 124


4 236


4 360


4 710


4 493


4 342


4 602


4 704




Other meetings


2 209


2 392


2 791


2 713


1 735


2 051


2 021


1 996


2 075


2 189




Grand total


6 759


6 572


6 915


6 949


6 095


6 761


6 514


6 338


6 677


6 893




Another quantitative indicator of activities is the legal acts published in the Official Journal (OJ) (Table 4). In 2012, 958 legal acts were published in the OJ. It should be noted that the volume of the legal acts depends on the finalisation of the legislative process before the acts can be elaborated into final texts for publishing in the OJ.

Table 4


Development of the number of legal acts in 2003-2012
















 


2003


2004


2005


2006


2007


2008


2009


2010


2011


2012




Legal acts published in the OJ


1 045


1 118


1 056


1 317


1 000


1 274


829


825


986


958




4.1.2.   Achievement of administrative objectives in 2012

Achievement of the objectives established for the budget year 2012 may be summarised as follows:






—



Establishment plan

In 2012, the GSC recruited 165 officials (147 permanent officials and 18 temporary agents). During the year 246 officials (217 permanent officials and 29 temporary agents) left resulting in a net decrease of 81 in the EC/C establishment plan.










—



Administrative modernisation

As a consequence of management decisions taken by the GSC, the establishment plan was reduced by 20 posts. The reduction is a combination of a transfer of activities from the GSC’s Sickness Insurance Service (9 posts) to the PMO of the Commission, and a rationalisation of the working methods within the language units (11 posts).
As part of a continued drive towards administrative modernisation and flexible working arrangements, and to help all staff to improve their work-life balance, new teleworking options were introduced at the GSC in November 2012. The arrangement expands, within certain conditions inter alia verifiable result and measurable output, the possibilities for standard and occasional teleworking of staff.










—



Financial management

In 2012, the GSC continued with measures to further improve its financial management and performance. During the year the GSC focused on reinforcing the substance knowledge and operational competencies of its financial agents. As a result authorising officers’ budget planning and implementation improved (less reallocation of funds and higher budget implementation rate compared to 2011).
In the context of improving the cash flow position of European businesses, the average payment delay of invoices in the GSC continued to improve and was 19 days in 2012 (21 days in 2011 and 27 in 2010; maximum time limit being 30 calendar days (Directive COM(2009) 126 final).










—



Building Policy

The project to renovate the Residence Palace and convert it into the seat of the European Council and the Council of Ministers (Europa Building) continued in 2012 with the actual construction work including, among other things, starting to building up floors, insulation and various technical installations.




4.2.   Revenue

Table 5 gives an overview on the global outcome of revenue operations in 2012. The expression ‘Established rights 2011’ refers to the recovery orders which were made in 2011 but for which the recovery of the amounts took place only in 2012. The expression ‘Established rights 2012’ in turn corresponds to recoveries launched in 2012.
As the 2011 revenue operations concern merely the finalisation of the outstanding recoveries in 2012, the analysis on revenue operations is focused on those launched in 2012 and on the totals.

Table 5


Overview of revenue operations in 2012 budget













(EUR)




Title
Chapter


Established rights 2011


Recovered revenues from 2011


Established rights 2012


Recovered revenues from 2012


Total established rights 2011 + 2012


Total recovered 2011 + 2012


To be recovered in 2013




 


1


2


3


4


5 = 1 + 3


6 = 2 + 4


7 = 5 – 6











4



Miscellaneous Community taxes, levies and dues







1 781 865




1 613 558




56 728 674




55 732 900




58 510 539




57 346 459




1 164 080












40



Deductions from staff remuneration






0


0


25 237 663


25 237 663


25 237 663


25 237 663


0











41



Contributions to the pension scheme






1 781 865


1 613 558


31 491 011


30 495 238


33 272 876


32 108 796


1 164 080











5



Revenue accruing from the administrative operation







8 710 247




8 509 259




40 751 445




31 791 610




49 461 692




40 300 869




9 160 823












50



Proceeds from the sale of movable and immovable property






55 493


57 947


4 690


3 200


60 183


61 147


– 965











51



Proceeds from letting and hiring






50 917


50 917


322 152


287 378


373 068


338 295


34 773











52



Revenue from investments or loans granted, bank and other interest






161


 


92 525


92 525


92 686


92 525


161











55



Revenue from the proceeds of services supplied and work carried out






124 562


124 016


183 407


179 254


307 969


303 270


4 699











55



EEAS Revenue from the proceeds of services supplied and work etc.






2 788


 


6 334 595


6 327 661


6 337 383


6 327 661


9 722











57



Other contributions and refunds in connection with administrat.






8 191 127


7 991 179


33 250 315


24 462 809


41 441 442


32 453 988


8 987 453











58



Miscellaneous compensation






0


0


171 611


71 561


171 611


71 561


100 050











58



EEAS Miscellaneous compensation






285 200


285 200


392 150


367 221


677 350


652 421


24 929











6



Contributions and repayments under community agreements etc.







9 324




9 324




1 147 035




503 774




1 156 359




513 098




643 261












63



Contributions under specific agreements






9 324


9 324


1 147 035


503 774


1 156 359


513 098


643 261











7



Interest on late payments







0




0




395




395




395




395




0












9



Miscellaneous revenue







1 966




534




1 586




730




3 552




1 263




2 289





Total


10 503 403


10 132 676


98 629 134


88 029 409


109 132 537


98 162 085


10 970 453




The total volume of revenue operations in terms of established rights, i.e. issued recovery orders, was EUR 109 million in 2012. From this amount EUR 98 million was recovered during the financial year whereas EUR 11 million will be collected in 2013.
Almost 60 % (EUR 57 million) of the total recovered revenues in 2012 relates to Community taxes, levies and dues collected from the GSC’s personnel. From this amount EUR 25 million covers the deductions from staff remuneration. EUR 32 million corresponds to contributions and transfers of pension rights to the pension scheme.
The remainder, or 40 % (EUR 40 million), is accrued from various administrative operations. This amount comes mainly from the following sources:






—


Recovery of parts of the amounts paid to Member States in previous years for delegates’ travel expenses following their declarations for 2010 and 2011 (EUR 7,5 million and EUR 15,4 million respectively) (Chapter 57).










—


Recovery of payments by Member States for supplementary on-request interpretation into certain languages (EUR 7,1 million) (Chapter 57).










—


Transfers from the EEAS to the Council as advance payments for the services rendered by the GSC to the EEAS (EUR 6,3 million and EUR 0,7 million) (Chapters 55 and 58 respectively).










—


Contributions by other institutions and payments by Council officials for the Council crèche (EUR 1,1 million) (Chapter 57).




4.3.   Expenditure in 2012

4.3.1.   Overview of implementation of the budget in 2004-2012

The overall implementation rate of the EC/C budget has been on average 96 % over the past nine years (Graph 1). The implementation rate refers to the commitments made during the budget year.
The actual annual payments during the period have been on average 81 % of the budget. The difference between the overall implementation and payments of a given year (i.e. non-paid commitments) has been carried over, in conformity with Article 9(4) of the Financial Regulation, to the next budget year for the necessary payments.
The carried over appropriations break down into two major categories: functioning of the GSC and buildings. The first is related to obligations duly contracted before the end of the budget year but where the goods have not yet been delivered and/or for which no invoices have been received before the end of the year.

Graph 1


Global budget implementation 2004-2012




The second category refers to the GSC’s acquisition of buildings such as LEX, the crèche and the Europa Building. In the last few years, the GSC has been able to use the savings made during the budget implementation to finance these acquisitions.
In 2012, two payments were made for the acquisition of the Europa Building: the first in February of EUR 5 million and the second in December of EUR 10 million.
4.3.2.   Implementation of the appropriations by category 2012

The analysis of expenditure in 2012 is presented at a level of the 10 most significant expenditure categories.
Table 6 compares the final budget after transfers (column 2) with the outturn of the budget in terms of commitments (column 3). The difference between the final budget and the committed appropriations corresponds to the amounts not used in 2012.

Table 6


Overview of the implementation of the 2012 budget (by category)











(EUR)




Category


Budget 2012 (initial)


Budget 2012 (3) (final)


Commitments


Outturn rate


Cancelled appropriations




 


1


2


3


4 = 3/2


5 = 2 – 3




Establishment plan


294 797 000


294 797 000


280 945 901


95,3 %


13 851 099




Other staff expenditure


23 490 000


23 490 000


20 460 594


87,1 %


3 029 406




Buildings


38 503 000


39 773 000


38 906 426


97,8 %


866 574




Computer systems


36 116 000


36 116 000


35 987 499


99,6 %


128 501




Interpreting costs


86 723 000


79 517 346


73 648 026


92,6 %


5 869 320




Delegations' travel expenses


24 675 000


20 095 654


5 425 528


27,0 %


14 670 126




Official Journal


5 176 000


5 176 000


4 306 791


83,2 %


869 209




Miscellaneous


17 440 000


17 955 000


15 241 542


84,9 %


2 713 458




Reserve


2 000 000


2 000 000


—


—


2 000 000




Total (excl. acquisition)


528 920 000


518 920 000


474 922 307


91,5 %


43 997 693




Acquisition of immovable property


5 000 000


15 000 000


15 000 000


100,0 %


—




Grand total


533 920 000


533 920 000


489 922 307


91,8 %


43 997 693




The global implementation rate of the 2012 budget, including the advance payments for the Europa Building, is 91,8 %.
The difference between the final budget and implementation can be explained as follows:






—


The fact that there were no adjustments of remuneration in 2011 and 2012 resulted in an underspending of EUR 7,4 million in the category of establishment plan. Another EUR 4,4 million underspending is due to a low occupation rate of posts in the establishment plan (on average 93 % (4)). The remainder of EUR 2 million mainly relates to a smaller need on entitlements as foreseen by the Staff Regulations (e.g. house hold and other allowances).










—


Almost half of the global saving (EUR 1,4 million out of EUR 3 million) in the category of other staff expenditure relates to fewer payments for contractual agents, seconded national experts and other outside services. Smaller spending in mission related costs corresponds to a saving of EUR 1,1 million.










—


The global implementation of the building related expenditure (without the Europa-Building) resulted in a saving of EUR 0,9 million. From this amount EUR 0,4 million is due to lower costs in water, gas and electricity whereas the rest corresponds to savings in certain fitting-out, installation and maintenance works.










—


Underspending of EUR 5,9 million in appropriations for interpretation. It should be noted that this underspending is the final result after the transfer of EUR 9,4 million from interpretation envelopes to delegations’ travel envelopes (5) and of EUR 0,2 million to cover supplementary legal expenses of the Council. The final result includes also a transfer back of EUR 2,4 million from some travel envelopes to cover the supplementary interpretation in certain languages.










—


The amount available for delegations’ travel expenses after transfers amounted to EUR 34,1 million. The initial budget was EUR 24,7 million to which EUR 9,4 million was transferred from the savings in some interpretation envelopes. On the other hand, during the year EUR 2,4 million was transferred to finance supplementary interpretation in certain languages. Since the Member States had to reimburse unused amounts from previous years, only EUR 5,4 million was committed for subsequent payments in the 2012 budget. This underspending made it also possible to transfer EUR 10 million as an additional payment for the Europa Building in 2012, EUR 1,3 million for fitting out and installation works in Justus Lipsius building and EUR 0,3 million for certain meeting expenditure in Brussels.










—


The implementation of the appropriations for the Official Journal was 83 %. The cancelled amount EUR 0,9 million shown in Table 6 corresponds mainly to the lower number of co-decisions and other legal acts published in the Official Journal in 2012.










—


In category miscellaneous, the relatively low implementation rate is explained by the following factors:






—


reduced financial need for documentation, publications and public events (EUR 0,9 million),










—


smaller need in organising meetings including protocol, conference and catering costs (EUR 0,7 million),










—


lower need in certain technical installations such as multimedia equipment in the conference rooms (EUR 0,5 million),










—


lower need for transport and furniture and office supplies (EUR 0,2 million and EUR 0,1 million respectively).














—


The overall underspending of the budget made it possible to reallocate EUR 10 million in addition to the EUR 5 million earmarked in the budget for advance payments for the Europa Building.




4.3.3.   Modification of the budget in 2012

During the financial year 2012, the appropriations were reallocated by different transfers. Table 7 shows the decisions which modified the budget appropriations in the years 2008-2012.

Table 7


Number of budget modifications by type in 2008-2012












Modification


Year




Type


Legal Basis (6)



2008


2009


2010


2011


2012




Amending budget



FR Article 29



0


1


0


0


0




Transfer B



FR Article 22



72


46


47


23


23




Transfer C



FR Article 22



3


2


2


2


2




Transfer D



FR Article 24



1


0


0


0


0




Total


76


49


49


25


25




The C-transfers, which involve informing the budget authority (in accordance with Article 22 of the Financial Regulation), were made to reinforce the following subjects:






—


C1-transfer on 31/5/2012:






—


the supplementary legal expenses related to unforeseen anti-dumping cases (EUR 240 000).














—


C2-transfer on 29/11/2012:






—


advance payments for the Europa Building (EUR 10 million),










—


the supplementary expenditure (EUR 1 270 000) in three projects in Justus Lipsius building: improving emergency exits (EUR 217 000), replacing of cooler units for the air conditioning (EUR 318 000) and building up a local data centre (EUR 735 000),










—


the training budget: transfer of the remainder of the suppressed Fellowship program to (EUR 26 000).








In 2012, the EC/C budget was internally modified by 23 B-transfers based on Article 22 (4) of the FR. Even though these transfers do not require prior notification of the budget authority, they have to be duly justified, both for the lines to which the appropriations are to be transferred and for those from which they are to be taken.
Table 8 gives an overview of the budget lines which were significantly (7) modified in 2012 by different transfers.

Table 8


Budget lines which were subject to significant transfers in 2012











(EUR)




Item/Article


Heading


Initial budget 2012


Transfers


Final appropriations


Difference





2002



Acquisition of immovable property


5 000 000


10 000 000


15 000 000


200 %





2003



Fitting-out of premises


8 030 000


1 602 500


9 632 500


20 %





2004



Work to make premises secure


1 110 000


– 325 000


785 000


–29 %





2010



Cleaning and maintenance


12 861 000


– 390 000


12 471 000


–3 %





2012



Buildings security and surveillance


9 412 000


532 000


9 944 000


6 %





2100



Acquisition of equipment and software


7 969 000


827 273


8 796 273


10 %





2101



Outside assistance for computer systems


19 032 000


– 291 121


18 740 879


–2 %





2102



Servicing and maintenance of equipment and software


4 891 000


300 648


5 191 648


6 %





2103



Telecommunications


4 224 000


– 836 800


3 387 200


–20 %





2120



Purchase and replacement of technical equipment etc.


4 243 000


– 809 000


3 434 000


–19 %





2122



Rental, servicing, maintenance and repair of technical equip.


580 000


300 000


880 000


52 %





2200



Travel expenses of delegations


24 675 000


–4 579 346


20 095 654


–19 %





2202



Interpreting costs


86 723 000


–7 205 654


79 517 346


–8 %





2203



Entertainment and representation expenses


2 000 000


377 000


2 377 000


19 %





2205



Organisation of conferences, congresses and meetings


800 000


– 400 000


400 000


–50 %





2210



Documentation and library expenditure


513 000


883 000


1 396 000


172 %





2230



Office supplies


657 000


– 265 000


392 000


–40 %





2236



Legal expenses and costs, damages and compensation


600 000


590 000


1 190 000


98 %




4.4.   Appropriations carried over

4.4.1.   Implementation of the carry-over appropriations from 2011 to 2012

As presented in Table 9, an amount of EUR 41,5 million was carried over from 2011 to 2012. Compared to 2011 the carried over amounts decreased by EUR 8,3 million.

Table 9


Implementation of appropriations carried over from 2011 to 2012 (by category)










(EUR)




Category


Appropriations carried over from 2011


Payments 2012


Outturn rate


Cancelled appropriations




 


1


2


3 = 2/1


4 = 1 – 2




Establishment plan


318 160


316 662


99,5 %


1 499




Other staff expenditure


3 233 722


2 529 707


78,2 %


704 015




Buildings


8 092 005


6 015 243


74,3 %


2 076 762




Computer systems


17 074 869


16 046 010


94,0 %


1 028 859




Interpreting costs


5 599 875


5 507 872


98,4 %


92 003




Delegations' travel expenses


—


—


—


—




Official Journal


2 348 791


1 016 989


43,3 %


1 331 802




Title III


19 079


4 029


21,1 %


15 050




Miscellaneous


4 808 554


4 137 433


86,0 %


671 121




Reserve


—


—


—


—




Total


41 495 055


35 573 944


85,7 %


5 921 111




The implementation rate of the appropriations carried over from 2011 was 85,7 %. Even though there is an increase in the implementation rate compared to the previous year, it is not yet globally at the expected level (> 95 %).
The main reasons for the low implementation rate are:






—


Partial or complete lack of delivery of works/goods/services ordered by the GSC during the year.










—


Invoices not received for works/goods/services delivered. It should be noted that this inevitably constitutes a budgetary burden for future years.




4.4.2.   Appropriations carried over from 2012 to 2013

The appropriations carried over from 2012 to 2013 totalled EUR 46 million (Table 10).

Table 10


Appropriations carried over from 2012 to 2013 (by category)











(EUR)




Category


Budget 2012 (initial)


Budget 2012 (8) (final)


Commitments


Appropriations carried over to 2013


Carry-over rate




 


1


2


3


4


5 = 4/3




Establishment plan


294 797 000


294 797 000


280 945 901


471 458


0,2 %




Other staff expenditure


23 490 000


23 490 000


20 460 594


3 425 715


16,7 %




Buildings


38 503 000


39 773 000


38 906 426


12 669 803


32,6 %




Computer systems


36 116 000


36 116 000


35 987 499


17 525 448


48,7 %




Interpreting costs


86 723 000


79 517 346


73 648 026


6 048 263


8,2 %




Delegations' travel expenses


24 675 000


20 095 654


5 425 528


—


0,0 %




Official Journal


5 176 000


5 176 000


4 306 791


777 798


18,1 %




Miscellaneous


17 440 000


17 955 000


15 241 542


5 082 161


33,3 %




Reserve


2 000 000


2 000 000


—


—


—




Total (excl. acquisition)


528 920 000


518 920 000


474 922 307


46 000 647


9,7 %




Acquisition of immovable property


5 000 000


15 000 000


15 000 000


—


—




Grand total


533 920 000


533 920 000


489 922 307


46 000 647


9,4 %




The carried over amounts from 2012 to 2013 come mainly from following categories:






—


Computer systems by EUR 17,5 million, of which EUR 8,1 million relates to outside assistance, EUR 5,7 million to equipment and software, EUR 1,9 million to service and maintenance and EUR 1,8 million to telecommunications.










—


Buildings by EUR 12,7 million where different fitting-out works cover EUR 6,8 million, security and surveillance EUR 2 million, cleaning and maintenance EUR 1,5 million and electricity, water, gas and heating together another EUR 1,2 million.










—


Interpreting costs by EUR 6 million.










—


Miscellaneous by EUR 5,1 million including EUR 2 million for technical equipment, information and publications EUR 1,8 million and meeting and conference costs EUR 1 million.










—


Other staff expenditure by EUR 3,4 million.










—


Official Journal EUR 0,8 million.




4.5.   Assigned revenue

4.5.1.   Assigned revenue accrued before 2012

The total amount of assigned revenue accrued before 2012 was EUR 44,4 million. From this, EUR 38,8 million related to the activities of the GSC. During the financial year EUR 38,4 million was committed leaving EUR 0,45 million to be further carried over to 2013.
Another part of the assigned revenue accrued before 2012 (EUR 5,6 million) relates to amounts transferred by the EEAS in 2011 to the Council to cover the expenses of the services defined in different Service Level Agreements (SLA) between the two institutions and rendered by the GSC.

Table 11


Implementation of assigned revenue accrued before 2012 (by category)









(EUR)




Category


Assigned revenues before 2012


Commitments


Available assigned revenues




 


1


2


3 = 1 – 2




Establishment plan


1 197 426


1 197 307


119




Other staff expenditure


2 514 142


2 267 414


246 728




Buildings


929 783


802 223


127 560




Computer systems


1 622 061


1 551 677


70 384




Interpreting costs


5 277 857


5 277 857


—




Delegations' travel expenses


26 404 686


26 404 686


—




Official Journal


194 897


194 897


—




Miscellaneous


673 432


663 023


10 409




Total EC/C


38 814 284


38 359 083


455 201




SLAs with EEAS


5 611 152


5 379 947


231 205




Grand total


44 425 436


43 739 031


686 405




4.5.2.   Assigned revenue accrued in 2012

The total assigned revenue accrued in 2012 was EUR 40,7 million (Table 12). From this, EUR 7 million corresponds to amounts transferred by the EEAS to the Council.
The assigned revenue 2012 relating to the activities of the GSC amounted to EUR 33,7 million. During the financial year EUR 0,7 million was used while EUR 33 million was carried over to 2013 in accordance with Article 10 of the FR.

Table 12


Implementation of assigned revenue accrued in 2012 (by category)









(EUR)




Category


Assigned revenues 2012


Commitments


Available assigned revenues




 


1


2


3 = 1 – 2




Establishment plan


784 727


—


784 727




Other staff expenditure


1 404 014


168 488


1 235 526




Buildings


605 059


287 247


317 813




Computer systems


473 960


91 698


382 262




Interpreting costs


7 114 352


—


7 114 352




Delegations' travel expenses


22 860 824


—


22 860 824




Official Journal


127 337


—


127 337




Miscellaneous


371 086


118 825


252 261




Total EC/C


33 741 360


666 258


33 075 101




SLAs with EEAS


6 980 083


4 510 007


2 470 077




Grand total


40 721 443


5 176 265


35 545 178




The majority (68 %) of the assigned revenue is related to the delegations’ travel expenses (EUR 22,9 million). The amount of EUR 7,1 million in interpretation comes from the top-up payments on certain languages to cover the supplementary interpretation in those languages. The remainder is mainly related to reimbursement of amounts connected with various administrative operations of the Council.


(1)  Regulation (EU, EURATOM) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union.
All other references to the Financial Regulation in this document refer to the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities, which was applicable during the financial year 2012.

(2)  The final budget after the reduction of EUR 40 million for the European Economic recovery Plan in December 2009 was EUR 563 million.

(3)  Includes internal reallocations of appropriations.

(4)  In 2011, the average occupation rate was 92 %. A flat rate reduction of 5,5 % was applied to the relevant appropriations in 2012.

(5)  In conformity with Decision 111/07, the GSC transfers 66 % of the unused amounts of interpretation language envelopes to the delegates' travel envelopes to be used during the same budget year. In 2012, this corresponded to an amount of EUR 9,4 million.

(6)  Financial Regulation 2002; Council Regulation (EC, Euratom) No 1605/2002.

(7)  Net amount > EUR 250 000.

(8)  Includes internal reallocations of appropriations.


ANNEX

COUNCIL


USE OF THE APPROPRIATIONS OF THE YEAR 2012















(EUR)




Budget line


Initial appropriations 2012


Transfers/amendments 2012


Final appropriations 2012


Commitments 2012


Payments 2012


Carry-over by right to 2013


Carry-over by Decision to 2013


Cancelled Appropriations 2012




1


2


3


4


5


6


7


8 = 3 – 5 – 6 – 7





1000



Basic salary


311 000,00


 


311 000,00


304 221,12


304 221,12


 


 


6 778,88





1001



Entitlements related to the post held


67 000,00


 


67 000,00


62 649,96


62 649,96


 


 


4 350,04





1002



Entitlements related to the personal circumstances of the staff member


20 000,00


 


20 000,00


8 130,72


8 130,72


 


 


11 869,28





1003



Social security cover


20 000,00


 


20 000,00


11 876,76


11 876,76


 


 


8 123,24





1004



Other managements expenditure


910 000,00


 


910 000,00


378 680,53


211 322,12


167 358


 


531 319,47





1006



Entitlements related to entering, transfer and leaving the service


77 000,00


 


77 000,00


 


 


 


 


77 000,00






100





Remuneration and other entitlements




1 405 000,00



 



1 405 000,00




765 559,09




598 200,68




167 358,41



 



639 440,91






1020



Provisional appropriations for changes in the entitlements


49 000,00


 


49 000,00


 


 


 


 


49 000,00






102





Provisional appropriation




49 000,00



 



49 000,00



 


 


 


 



49 000,00





Total Chapter 10 - Members of the Institution


1 454 000,00


 


1 454 000,00


765 559,09


598 200,68


167 358


 


688 440,91





1100



Basic salaries


219 068 000,00


 


219 068 000,00


211 616 173,82


211 616 173,82


 


 


7 451 826,18





1101



Entitlements under the Staff Regulations related to the post held


2 573 000,00


 


2 573 000,00


1 937 144,29


1 937 144,29


 


 


635 855,71





1102



Entitlements under the Staff Regulations related to the personal circumstances of the staff member


57 434 000,00


 


57 434 000,00


54 770 833,91


54 770 834


 


 


2 663 166,09





1103



Social security cover


9 602 000,00


 


9 602 000,00


8 788 419,75


8 788 420


 


 


813 580,25





1104



Salary weightings


30 000,00


60 000,00


90 000,00


67 975,95


67 976


 


 


22 024,05





1105



Overtime


1 633 000,00


 


1 633 000,00


1 538 691,78


1 538 691,78


 


 


94 308,22





1106



Entitlements under the Staff Regulations related to entering the service, transfer and leaving the service


3 140 000,00


–60 000,00


3 080 000,00


2 226 661,19


1 755 203,10


471 458,09


 


853 338,81






110





Remuneration and other entitlements




293 480 000,00



 



293 480 000,00




280 945 900,69




280 474 442,60




471 458,09



 



12 534 099,31






1110



Allowances in the event of retirement in the interest of the service


321 000,00


 


321 000,00


303 472,77


303 472,77


 


 


17 527,23





1111



Allowances for staff whose service is terminated


282 000,00


 


282 000,00


236 508,42


236 508,42


 


 


45 491,58





1112



Entitlements of the former Secretaries-General


387 000,00


 


387 000,00


362 301,24


362 301,24


 


 


24 698,76






111





Termination of service




990 000,00



 



990 000,00




902 282,43




902 282



 


 



87 717,57






1120



Provisional appropriation (officials and temporary staff)


1 317 000,00


 


1 317 000,00


 


 


 


 


1 317 000,00





1121



Provisional appropriation (retired staff and staff retired under special arrangements)


5 000,00


 


5 000,00


 


 


 


 


5 000,00






112





Provisional appropriation




1 322 000,00



 



1 322 000,00



 


 


 


 



1 322 000,00





Total Chapter 11 - Officials and temporary staff


295 792 000,00


 


295 792 000,00


281 848 183,12


281 376 725,03


471 458,09


 


13 943 816,88





1200



Other staff


7 752 000,00


 


7 752 000,00


6 952 901,93


6 922 872,67


30 029,26


 


799 098,07





1201



National experts on secondment


1 187 000,00


–80 000,00


1 107 000,00


860 728,35


857 002,64


3 725,71


 


246 271,65





1202



Traineeships


565 000,00


 


565 000,00


558 462,60


547 655,87


10 806,73


 


6 537,40





1203



Outside services


2 069 000,00


210 000,00


2 279 000,00


2 009 592,18


1 265 594,26


743 997,92


 


269 407,82





1204



Supplementary services for the translation service


177 000,00


– 130 000


47 000,00


 


 


 


 


47 000,00






120





Other staff and outside services




11 750 000,00



 



11 750 000,00




10 381 685,06




9 593 125,44




788 559,62



 



1 368 314,94






1220



Provisional appropriation


51 000,00


 


51 000,00


 


 


 


 


51 000,00






122





Provisional appropriation




51 000,00



 



51 000,00



 


 


 


 



51 000,00





Total Chapter 12 - Other staff and outside services


11 801 000,00


 


11 801 000,00


10 381 685,06


9 593 125,44


788 559,62


 


1 419 314,94





1300



Miscellaneous expenditure on recruitments


152 000,00


 


152 000,00


150 250,00


93 893,80


56 356,20


 


1 750,00





1301



Further training


1 683 000,00


26 000,00


1 709 000,00


1 703 963,63


722 712,30


981 251,33


 


5 036,37






130





Expenditure relating to staff management




1 835 000,00




26 000,00




1 861 000,00




1 854 213,63




816 606,10




1 037 607,53



 



6 786,37






1310



Special assistance grants


40 000,00


10 000,00


50 000,00


26 866,02


26 866,02


 


 


23 133,98





1311



Social contacts between members of staff


119 000,00


–10 000,00


109 000,00


106 479,94


95 940,91


10 539,03


 


2 520,06





1312



Supplementary aid for the disables


69 000,00


–10 000,00


59 000,00


42 046,03


31 966,30


10 079,73


 


16 953,97





1313



Other welfare expenditure


66 000,00


10 000,00


76 000,00


75 600,00


74 971,17


629


 


400,00






131





Measures to assist institution’s staff




294 000,00



 



294 000,00




250 991,99




229 744,40




21 247,59



 



43 008,01






1320



Medical service


431 000,00


 


431 000,00


399 458,06


214 799,96


184 658,10


 


31 541,94





1321



Restaurants and canteens


1 115 000,00


 


1 115 000,00


1 031 872,03


1 024 460,53


7 411,50


 


83 127,97





1322



Crèches and other childcare facilities


1 749 000,00


 


1 749 000,00


1 629 000,00


885 127,38


743 872,62


 


120 000,00






132





Activities relating to all persons working with the institution




3 295 000,00



 



3 295 000,00




3 060 330,09




2 124 387,87




935 942,22



 



234 669,91






1331



Mission expenses of the Council secretariat


3 216 000,00


–26 000,00


3 190 000,00


2 712 267,17


2 277 267,17


435 000,00


 


477 732,83





1332



Travel expenses of staff related to the European Council


600 000,00


 


600 000,00


533 264,69


493 264,69


40 000,00


 


66 735,31






133





Missions




3 816 000,00




–26 000,00




3 790 000,00




3 245 531,86




2 770 531,86




475 000,00



 



544 468,14





Total Chapter 13 - Other expenditure relating to persons working with the institution


9 240 000,00


 


9 240 000,00


8 411 067,57


5 941 270,23


2 469 797,34


 


828 932,43




TOTAL TITLE 1 - Persons working with the institution


318 287 000,00


 


318 287 000,00


301 406 494,84


297 509 321,38


3 897 173,46


 


16 880 505,16





2000



Rent


1 607 000,00


–77 500,00


1 529 500,00


1 527 296,71


1 524 023,75


3 272,96


 


2 203,29





2002



Acquisition of immovable property


5 000 000,00


10 000 000,00


15 000 000,00


15 000 000,00


15 000 000,00


 


 


 





2003



Fitting-out of premises


8 030 000,00


1 602 500,00


9 632 500,00


9 478 257,16


2 711 843,32


6 766 413,84


 


154 242,84





2004



Work to make premises secure


1 110 000,00


– 325 000,00


785 000,00


778 229,62


242 277,28


535 952,34


 


6 770,38





2005



Expenditure preliminary to the acquisition, construction and fitting-out of buildings


485 000,00


70 000,00


555 000,00


539 628,41


183 460,75


356 167,66


 


15 371,59






200





Buildings




16 232 000,00




11 270 000,00




27 502 000,00




27 323 411,90




19 661 605,10




7 661 806,80



 



178 588,10






2010



Cleaning and maintenance


12 861 000,00


– 390 000,00


12 471 000,00


12 330 689,96


10 790 693,87


1 539 996,09


 


140 310,04





2011



Water, gas, electricity and heating


4 232 000,00


– 110 000,00


4 122 000,00


3 728 975,81


2 501 307,59


1 227 668,22


 


393 024,19





2012



Buildings security and surveillance


9 412 000,00


532 000,00


9 944 000,00


9 895 734,75


7 852 018,40


2 043 716,35


 


48 265,25





2013



Insurance


211 000,00


 


211 000,00


195 604,73


195 604,73


 


 


15 395,27





2014



Other expenditure relating to buildings


555 000,00


–32 000,00


523 000,00


432 009,13


235 393,39


196 615,74


 


90 990,87






201





Costs relating to buildings




27 271 000,00



 



27 271 000,00




26 583 014,38




21 575 017,98




5 007 996,40



 



687 985,62





Total Chapter 20 - Buildings and associated costs


43 503 000,00


11 270 000,00


54 773 000,00


53 906 426,28


41 236 623,08


12 669 803,20


 


866 573,72





2100



Acquisition of equipment and software


7 969 000,00


827 273,00


8 796 273,00


8 795 827,10


3 073 765


5 722 062


 


445,90





2101



Outside assistance for the operation and development of computer systems


19 032 000,00


– 291 121,00


18 740 879,00


18 612 852,82


10 509 678,07


8 103 174,75


 


128 026,18





2102



Servicing and maintenance of equipment and software


4 891 000


300 648,00


5 191 648,00


5 191 642,86


3 288 900


1 902 743


 


5,14





2103



Telecommunications


4 224 000,00


– 836 800,00


3 387 200,00


3 387 175,95


1 589 707,06


1 797 468,89


 


24,05






210





Computer systems and telecommunications




36 116 000,00



 



36 116 000,00




35 987 498,73




18 462 050,44




17 525 448,29



 



128 501,27






2111



Purchase and replacement of furniture


914 000,00


 


914 000,00


774 779,13


568 333,84


206 445


 


139 220,87





2112



Rental, servicing, maintenance and repair of furniture


32 000,00


 


32 000,00


31 765,66


16 058,00


15 707,66


 


234,34






211





Furniture




946 000,00



 



946 000,00




806 544,79




584 391,84




222 152,95



 



139 455,21






2120



Purchase and replacement of technical equipment and installation


4 243 000,00


– 809 000,00


3 434 000,00


3 039 474,50


1 274 318,35


1 765 156,15


 


394 525,50





2121



Outside assistance for the operation and development of technical equipment and installations


60 000,00


9 000,00


69 000,00


64 025,00


37 038,00


26 987,00


 


4 975,00





2122



Rental, servicing, maintenance and repair of technical equipment and installations


580 000,00


300 000,00


880 000,00


744 282,89


555 128,65


189 154,24


 


135 717,11






212





Technical equipment and installation




4 883 000,00




– 500 000,00




4 383 000,00




3 847 782,39




1 866 485,00




1 981 297,39



 



535 217,61






2132



Rental, maintenance and repair of the vehicle fleet


384 000,00


 


384 000,00


258 583,52


200 532,86


58 050,66


 


125 416,48





2133



Mobility plan


360 000,00


 


360 000,00


250 239,47


125 239,47


125 000,00


 


109 760,53






213





Transport




744 000,00



 



744 000,00




508 822,99




325 772,33




183 050,66



 



235 177,01





Total Chapter 21 - Computer system, equipment and furniture


42 689 000,00


– 500 000,00


42 189 000,00


41 150 648,90


21 238 699,61


19 911 949,29


 


1 038 351,10





2200



Travel expenses of delegations


24 675 000,00


–4 579 346,00


20 095 654,00


5 425 528,00


5 425 528,00


 


 


14 670 126,00





2201



Miscellaneous travel expenses


420 000,00


 


420 000,00


284 103,94


190 303,94


93 800,00


 


135 896,06





2202



Interpreting costs


86 723 000,00


–7 205 654,00


79 517 346,00


73 648 025,60


67 599 763,00


6 048 262,60


 


5 869 320,40





2203



Entertainment and representation expenses


2 000 000,00


377 000,00


2 377 000,00


2 137 952,82


1 717 688,17


420 264,65


 


239 047,18





2204



Miscellaneous expenditure on internal expenses


3 024 000,00


– 102 000,00


2 922 000,00


2 787 218,16


2 278 477,99


508 740,17


 


134 781,84





2205



Organisation of conferences, congresses and meetings


800 000,00


– 400 000,00


400 000,00


172 461,31


127 415,56


45 045,75


 


227 538,69






220





Meetings and conferences




117 642 000,00




–11 910 000,00




105 732 000,00




84 455 289,83




77 339 177




7 116 113



 



21 276 710,17






2210



Documentation and library expenditure


513 000,00


883 000,00


1 396 000,00


840 232,22


601 603,68


238 628,54


 


555 767,78





2211



Official Journal


5 176 000,00


 


5 176 000,00


4 306 791,38


3 528 993,02


777 798,36


 


869 208,62





2212



General publications


610 000,00


– 155 000,00


455 000,00


287 331,16


139 379,53


147 951,63


 


167 668,84





2213



Information and public events


1 753 000,00


172 000,00


1 925 000,00


1 735 061,91


1 069 552,33


665 509,58


 


189 938,09






221





Information




8 052 000,00




900 000,00




8 952 000,00




7 169 416,67




5 339 528,56




1 829 888,11



 



1 782 583,33






2230



Office supplies


657 000,00


– 265 000,00


392 000,00


312 427,83


197 371,33


115 056,50


 


79 572,17





2231



Postal charges


145 000,00


–65 000,00


80 000,00


79 976,56


62 714,24


17 262,32


 


23,44





2232



Expenditure on studies, surveys and consultation


40 000,00


 


40 000,00


33 000,00


 


33 000,00


 


7 000,00





2234



Removals


10 000,00


 


10 000,00


 


 


 


 


10 000,00





2235



Financial charges


20 000,00


 


20 000,00


10 180,00


5 029,52


5 150


 


9 820,00





2236



Legal expenses and costs, damages and compensation


600 000,00


590 000,00


1 190 000,00


1 189 990,00


897 299,39


292 690,61


 


10,00





2237



Other operating expenditure


275 000,00


–20 000,00


255 000,00


208 455,98


95 896,19


112 559,79


 


46 544,02






223





Miscellaneous expenses




1 747 000,00




240 000




1 987 000,00




1 834 030,37




1 258 310,67




575 719,70



 



152 969,63





Total Chapter 22 - Operating expenditure


127 441 000,00


–10 770 000,00


116 671 000,00


93 458 736,87


83 937 015,89


9 521 720,98


 


23 212 263,13




TOTAL TITLE 2 - Buildings, equipment and operating expenditure


213 633 000,00


 


213 633 000,00


188 515 812,05


146 412 338,58


42 103 473,47


 


25 117 187,95





101



Contingency reserve


2 000 000,00


 


2 000 000,00


 


 


 


 


2 000 000,00




TITLE 10 - Other expenditure


2 000 000,00


 


2 000 000,00


 


 


 


 


2 000 000,00




TOTAL BUDGET


533 920 000,00


 


533 920 000,00


489 922 306,89


443 921 659,96


46 000 646,93


 


43 997 693,11