CELEX: 51974PC0705
Language: en
Date: 1974-05-27
Title: Draft REGULATION OF THE COMMISSION introducing procedures for implementing certain provisions of the financial regulation of 25 April 1973

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 705
Vol. 1974/0110
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(74)705 final
                                                Brussels , 27 May 1974
                                 Draft
                       REGULATION OP THE COMMISSION
               introducing procedures for implementing certain
           provisions of the financial regulation of 25 April 1973
CCM(74) 705 final
 ---pagebreak---                                                                    XIX/1 73/74-E
    RgGULATTOyr IITCftOBJCIMa PROCEDURES FOR IMPLEMENTING CBRTAIlf
     PROVISIONS OF THE FINANCIAL REGULATION OP 25 APRIL 1973
THE COMMISSION OP THE EUROPEAN COIMJNITIES ,
Having regard to the Treaty establishing the European Coal and. Steel
Community , and in particular Articles 78(4) and;. (7) thereof ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 205         209 thereof ,
Having regard to the Treaty establishing the European Atomic Energy
Community , and in particular Articles 179 f, nd 1 83 thereof ,
Having regard to the FintCiial Regulation of 25 April 1973 applicable
to the general budget of the European Communities , and in particular
Article 118 thereof ,
Whereas certain provisions of Articles 18 , 19 ,                  provide
explicitly that the procedures for their implementation be drawn up by
the Commission ,
Whereas the drawing-up of such procedures shall not prevent the drawing-up
at a later date of other procedures for which no formal provision is made
in the Financial Regulation but which might subsequently appear expedient ,
Having consulted the European Parliament and the Council ,
Having regard to the Opinion of the Court of Justice and of the Economic
and Social Committee ,
HAS ADOPTED THIS REGULATION INTRODUCING PROCEDURES FOR IMPLEMENTING CERTAIN
PROVISIONS OF THE FINANCIAL REGULATION OF 25 APRIL 1973 :
 ---pagebreak---                           ^      - 2 -
TITLE I - DELEGATIONS OP POWERS (Article 18 of the Financial Regulation)
Article 1 The acts by which powers shall "be delegated pursuant to the
           provisions of Article 18 of the Financial Regulation shall
           contain nominations of those members of staff of the Institution
           authorized to sign instead of the delegator .
Article 2" These acts shall be communicated "by the delegator to the
           delegatees , the accounting officer, the Financial Controller ,
           the Audit Board and , if they are involved , the authorizing
           officers .    These acts shall be accompanied by a specimen
           signature of the delegatee .
           The acts terminating such delegation shall be communicated
           under the same conditions .
 Article 3 In every case the act of delegation shall specify the limits
            within which the delegatees are authorized to draw up collection
            orders , proposals for commitment of expenditure and payment
            orders , the numbers of the Articles and Items in respect of
            which the powers have been delegated and , where appropriate ,
            the length of time for which such powers have been delegated .
 Article 4 Each institution shall adopt the measures for administering the
            appropriations - it deems necessary for the proper implementation
            of the section of the budget for which it is responsible .
TITLE II - RULES APPLICABLE TO THE FINANCIAL CONTROLLER AND TO THE ASSISTANT
            FINANCIAL CONTROLLERS ( Article 19 of the Financial Regulation)
Article 5 The Institution shall appoint , by a decision which gives the grounds
           therefor , the Financial Controller who shall be the official in charge
           of the control of commitments and authorization of all
           expenditure and also the control of all revenue allocated ^
           to the budget of the Communities for hich the institution
            is the approving authority .
 Article 6 The Institution may appoint one or more assistant financial
            controllers . The latter shall report to the Financial
         ' Controller , who shall decide on the powers to be delegated
            to them. They shall bear the responsibility for the approvals
            granted by them in pursuance of the powers delegated to them
            or the instructions which they have received .
 ---pagebreak---                                 - 3 -                         XIX/ 1 73/74-E
Article 7 Because of their special responsibilities , the Financial Controller
            and the assistant financial controllers must be chosen by the
            Institution from among/ nationals of the Member States .
Article 8   The Institution shall place at the disposal of the Financial
            Controller the services necessary for the success of his checking
            work .
Article 9 All decisions relating to -the delegation and subdelegation of powers
            by the Financial Controller or the assistant financial controllers
            shall comply with the provisions of Articles 1 to 3 .
Article 10 In carrying out his checking , the Financial Controller shall be
            completely independent and shall be responsible only to the
            Institution . He may not receive any instructions as regards the
            execution of the duties assigned to him pursuant to the provisions
            of the Financial Regulation in virtue - of his appointment .
            Subject to the provisions of Article 6 , the provisions of the
            preceding subparagraph shall also apply to the assistant financial
            controllers .
Article 11 'The Financial Controller may present reports to the Institution , at
            any time and on any subject having financial implications , especially
            as regards sound   financial management .
Article 12 The Financial Controller and the assistant financial controllers shall
            have access to all supporting documents and to all other documents
            relating to the expenditure and revenue operations which require to
          1 be checked .  They may carry out on-the-spot checks .
Article 13 The liability of the Financial Controller and of the assistant financial
            controllers to disciplinary action and , where appropriate , to payment
            of compensation , can be invoked only by the Institution itself , in
            the following circumstances :
 ---pagebreak---                                    - ч-                          AlA/ 'l / J/ / 4-jj
            The Institution shall take a decision which gives the grounds tnerefor
            to conduct an inquiry.    This decision shall "be communicated to the
            person concerned and , if he is an assistant financial controller , to
            the Financial Controller . The Institution may , on its own responsibility,
            instruct one or more officials of a grade not lower than that of the
            member of staff concerned and not carrying out the duties of a
            Financial Controller , authorizing officer or accounting officer ,
            to conduct the inquiry. During the inquiry the person concerned and ,
            if he is an assistant financial controller , the Financial Controller ,
            must of necessity "be given a hearing.
            The report on the inquiry shall be transmitted to the person concerned
            and , if he is an assistant financial controller , to the Financial '•
            Controller . The person concerned shall then be given a hearing by
            the Institution with regard to that report .
            On the basis of the report of the hearing , the Institution shall
            take either a decision which gives the grounds therefor to give
            discharge to the person concerned or a similar decision in accordance
            with the provisions of Articles 22 and 86 to 89 of the Staff Regulations .
            Decisions involving disciplinary action and/or pecuniary penalties
            shall be communicated to the person concerned and , for information
            purposes , to the other institutions , the Audit Board and , if the
            person concerned is an assistant financial controller , to the
            Financial Controller .
            The person concerned may lodge an appeal with the Court of Justice , in
            accordance with the provisions of the Staff Regulations , in respect •
            of such decisions .
Article 14 Without prejudice to the grounds for appeal set out in the Staff
           Regulations and the Conditions of Employment of Other Servants , the
           Financial Controller and the assistant financial controllers may lodge
           an appeal with the Court of Justice with regard to any act relating to
            their checking work . Such appeals must be lodged within three months
            from the date of notification of the act in question *
           The provisions of the preceding' subparagraph shall apply only to appeals
           filed by the Institution against its Financial Controller pr its
          assistant financial controllers .
          Appeals shall be investigated and heard as provided for in Artiole 91 (5 /
          of the Staff Regulations .
 ---pagebreak---                                                                  XIX/173/ 74-E
                                  - 5 -
TITLE III - REGISTRATION OP COLLECTION ORDERS ( Article 23 of the Financial
            Regulation)
Article 15 A collection order must be drawn up for every document substantiating
            a debt and must be submitted to the Financial Controller for approval
            and to the accounting officer for registration before being
            communicated to the debtor .
Article 1 6 If a document or decision giving rise to a debt cannot be accompanied
            by a substantiation of the debt because it is impossible to determine
            the amount immediately, ihat document or decision shall be submitted
            to the Financial Controller for prior approval and communicated to
            the accounting officer .
Article 17  The authorizing officer and the Financial Controller must be informed
            as soon as possible of each payment received .
Article 1b The registration in the budgetary accounts of the corresponding
            collection orders and ordeisfor the recovery of funds shall be carried
            out by the central accounts department of the Institution so as to
            guarantee full supervision of all the sums due TO the Institution ,
            thus enabling the following facts , in particular , to be ascertained :
             - what measures liable to give rise to a debt have been taken ;
             -  the amounts of the debts to be recovered ;
             - the date by which the debts must be repaid ;
             -  which debts have been repaid ;
             - which debts have not been repaid despite the fact that they
                have fallen due .                 ' " '
 Article 19  The central accounts department must be so organized as to
             guarantee that the Financial Controller is able to check , at any
             given moment , that proceedings for recovery and the collection
             orders have been registered accurately , and is thus able to make
             the substantiations required of him by Article Zj> of the
             Financial Regulation.
 ---pagebreak---                                                                       XIX/17V74-B
                                     - 6-
TITLE IV - COMMITMENT OP EXPENDITURE (Article 40 of "the Financial Regulation)
Article 20 Before taking any measure which may involve expenditure , t e
             competent authorizing officer must present the Financial Controller
             with a proposal for a commitment of expenditure. Such proposals
             are generally drawn up on the basis of a set of rules to be adopted
             by unanimous agreement by the authorizing officer , the accounting
             officer and the Financial Controller. Such proposals for commitments
             of expenditure must give the information referred to in Article 41
             of the Financial Regulation.'
Article 21 Draft decisions of a general nature*issued 'by the Institution and
             containing an obligation to incur expenditure shall be considered
             to be measures which may involve expenditure .
Article 22 If a decision of principle issued by the Institution precedes a
             decision on expenditure , the draft decision of principle shall be
              transmitted to the Financial Controller for prior approval and ,
              following a decision . by the competent authority, the amount of
              appropriations corresponding to the expenditure to be incurred
              shall be blocked .                                    .           '
               The draft commitment document , drawn up in accordance with the
               decision on expenditure , shall be the subject of a proposal for
               a commitment of expenditure which is submitted to the Financial
               Controller for prior approval and subsequently registered as
               appropriations committed and deducted from the appropriations
               previously blocked .                                         –
 *This expression should be interpreted as follows : "Every measure which , y
  its very nature , may involve expenditure , without any fur er eci
  being required ".
 ---pagebreak---                                                                    XIX/173/74-E
                                     - 7  -
Article 23 Provisional commitments , within the meaning of Article 40(1 ) of
            the Financial Regulation , are strictly limited to current
            expenditure .   Individual commitments covered Tby such provisional
            commitments do not require to "be submitted separately for approval
           by the Financial Controller .
           In the case of provisional commitments , the authorizing officer is
           bound to check , on his own responsibility , that the individual
           commitments do not exceed the provisional commitment by which-
           they are covered .
           The existence of such provisional commitments does not imply that
           appropriations can be carried ' forward automatically in the sense of
           Article 6 of the Financial Regulation , unless they correspond at the
           end of the financial year to financial commitments actually entered
           into before the deadlines laid down in the Financial Regulation .
Article 24 If in the case of certain measures which may involve expenditure ,
           no exact figures        be given for the expenditure when the relevant
           proposal for a commitment is presented to the Financial Controller
           and communicated to the accounting officer , the authorizing officer'
           must estimate the expected expenditure .
Article 25 All proposals for commitments of expenditure must be submitted to
           the Financial Controller sufficiently early to enable any comments
           which he might wish to make to be taken into consideration , especially
           in such cases where the commitments to be entered into have to be
           negotiated with the contracting parties or have to be submitted to
           consultative bodies .
Article 26  Proposals for commitments of expenditure must be accompanied
            by all the supporting documents and , where appropriate , by any-
            other documents Xirhich are necessary to enable the Financial
            Controller    to make the required substantiations as well as
           by any other information which might enable the Financial ,
            Controller to assess the transaction from the point of view
            of sound financial management .
 ---pagebreak---                                                                     a±AV I / V
                                  - 8    -
    ^ V _ REGISTRATION OP PROPOSALS FOR COMMITMENT OP EXPENDITURE AFTER APPROVAL
    ~– BY THE FINANCIAL CONTROLLER ( Article 41 of the Financial Regulation)
Article 27 Proposals for commitments shall he registered by the Institution's
             central accounts department .   It must he possible to ascertain at
             any given moment which budgetary items or headings contain the
             blocked appropriations , the amounts committed , the payments already
             made in that connection , the payments still to be made and the
             available .appropriations .
Article 28 The central accounts department must be so organized as to guarantee
             that the Financial Controller is able to check that the commitments
             and payments have been registered accurately so that he can , at any
             given moment , ascertain the extent to which the appropriations
           ; have been utilized and inform the authorizing officers of his
             findings .
TITLE VI - APPROVAL OF PROPOSALS FOR COMMITMENT OF EXPENDITURE
             (Article 42 of the Financial Regulation)
Article 29 Subject to the provisions of Article 30 below , approval shall
             be given by placing the signature of the Financial Controller
             or of an assistant financial controller on the proposal for a
             commitment of expenditure . In addition the words "Approved
             by the Financial Controller" shall be stamped on the proposal ,
             and the date on which approval was given shall be indicated .
Article 30 In urgent cases such approval may be given in a note , telex message
             or by any other means which leaves no doubt as to the fact that the
             proposal for a commitment of expenditure in question has been approved .
Article 31   The approval given shall be deemed to be proof of all the points
             listed under ( a) to (d ) of Article 42 of the Financial Regulation.
 ---pagebreak---                                                                       XIX/1 73/ 74-E
                                    - 9  -
 Article 32 If , pursuant to Article 43 of the Financial Regulation , the
              higher authority of the Institution overrides the Financial
              Controller 's refusal to give his approval , the decision shall he
              transmitted to the authorizing officer who shall send the proposal
              for a commitment of expenditure together . with that decision to the
              Financial Controller . The proposal for commitment , together with
              the : decision to override , shall "be registered in accordance with
              the provisions of Article 41 of the Financial Regulation.
 Article 33   If the Financial Controller considers inadequate or incomplete
              the supporting documents provided for in Articles 45 an<i 49 of
              the Financial Regulation and defined in Articles 34 to 40 "below ,
              he shall postpone his approval and return the proposal to the
              authorizing officer , specifying the nature of the evidence
              required .
TITLE VII - SUPPORTING DOCUMENTS ( Articles 45 and 49 of the Financial Regulation)
Article 34 As regards supplies in general , the following in particular
            shall be considered to be a valid supporting document :
         "  -   the invoice drawn up by the supplier , accompanied , where
                necessary , by one of the copies of the document indicating
                the Community's commitment ( e.g. order form or contract ). '
            In every case the document drawn up by the supplier must indicate :
            - the nature and quantity of the supplies or , if appropriate , a
                description of the services rendered in that connection ,
            -   tne unit price and total price ,
            - mention of their exemption from charges and taxes ; where appropriate ,
                an indication of the amount of the changes , taxes and customs
                duties connected with the supply of the goods and included in
                the price .
 ---pagebreak---                                 _ 10 -                       XIX/ 17 3/74-E
           In addition , the authorizing officer , or the official to whom
           he has delegated authority , must indicate the following points
           on that document :
           - that the supplies have been properly received , indicating the
               date and place ,
           - that the supplies have been entered in the inventory whenever
               this is required ,
           - that all parts of the invoice have "been checked ,
           - the opinion of the Advisory Committee on Purchases and Contracts .
            The same information could be given on a certificate of receipt .
Article 35 In the case of services , the invoice ( or bill ) drawn up by the
            person providing the services shall be considered to be a valid
            supporting document .
            That document must : ■
            - indicate the nature of the service , and possibly its unit price ,
                its total price , reference to its exemption from charges ajad taxes
                and , as far as possible , the amount of the charges and taxes
                connected with the service and included in the price ,
            - bear the words "passed for payment " placed on it by the authorizing
                officer or by the official to whom he has delegated authority ,
                certifying that the service was rendered properly and that all the
                parts of the invoice or bill have been checked .
Article 36 In the case of study and research contracts , the following shall
             be considered to be valid supporting documents :
 ---pagebreak---                                      - 11 -
            ( a) a copy of "the contract and. of any additional clauses ,
                  to be attached to the first order for payment ;
            (t>) any document which , pursuant to the financial provisions
                  in the contracts , substantiates the corresponding payments
                  ( request from the contractant , invoices , particulars
                  furnished "by the management committees in cases of contracts
                  of association and any other document substantiating expenditure ).
                  The final payment must of necessity he accompanied by a
                  document drawn up by the authorizing officer and certifying
                  that the service has been rendered .
Article 37 In the case of expenditure on staff , the following shall be
           considered to be supporting documents :
           ( a) in respect of the monthly sala.ry :
                 -    the complete list of staff , giving all the components of the
                      remuneration . This list shall be attached to the payment
                      voucher ;
                                 <
                 - a form ( personal information sheet ) indicating, whenever
                      necessary , any changes in any component of the remuneration.
                      This form shall be drawn up on the basis of decisions taken
                      in each specific case ;
                 -    in the case of recruitments or appointments , a certified true
                      copy of the decision in respect of recruitment or appointment
                      shall accompany the first salary payment .
           ( b ) in respect of other remunerations :
                 ( staff paid on an hourly or daily basis )
                 -    a statement dram up by the authorizing officer indicating
                      the days and hours of attendance .
           ( c ) in respect of overtime :
                 -    a statement certifying that the member of staff has worked
                      overtime .
 ---pagebreak---                                    - 12 -
                in respect of mission expenses ;
                    ■the travel order duly signed by the competent authority;
                                                                                    i
                - the "detailed account of mission expenses " indicating, m          |
                   particular, the place of mission, the date and time of departure |
                   from and arrivals at the place of mission , travel expenses ,     !
                   subsistence expenses , and other expenses duly authorized on     j
                   the production of supporting documents; this detailed account j
                   shall be signed by the official on mission and by the            i
                    administrative superior to whom powers have been delegated.
            (e)       respect of other expenditure on staff:
                 - the supporting documents referring to the decision
                      on which the expenditure is hased and giving all the
                       components of the expenditure .
Article 38 In the case of all commitments which involve payments m instalments
            a certified true 'copy of the contract shall be attached to the
            first payment voucher. Reference to that document and to the
            preceding payment( s) shall be made on the other payment vouchers .
Article 39 If only one supporting document covers several payments , all the
            payment vouchers shall bear a reference to the original document.
 Article 40 Except in the cases referred to above, if an original supporting
             document cannot be produced , a certified true copy may be
             substituted for it by the authorizing- officer who must explain
             why the original could not be produced and must certify that
             the payment has not been made .
 ---pagebreak---                                       - 13 -                    ΧΙΧ/173/74-Ξ
TITLiS VIII – BAlWC OR POST OFFICE GIRO ACCOUNTS ( Article 56 of "the Financial
              Regulation)
Article 41   When carrying out financial transactions the Institution may open
             bank and/or post office giro accounts in the Community countries
             and. possibly in non-member countries .
Article 42   The Institution may also hold accounts with the bank of issue in
             every Member State or with the approved financial institution .
Article 43   The Institution shall communicate to all the financial institutions
             with which it holds accounts the names and specimen signatures of
             the staff appointed by it and • authorized to open accounts and to
             use such accounts . ,
Article 44   Use of such accounts requires the signatures of two duly authorized
             officials , one signature of necessity being that of the accounting
             officer , an assistant accounting officer or an administrator of
             advance funds .
Article 45   As a général rule , paymentsî
             -   of the monthly remuneration of officials and other staff ;
             -   of expenditure relating to supplies or services exceeding 100 u .,
             should be made by cheque or by postal or bank transfer order .
TITLE IX - ADVANCE FUEDS ( Article 57 of the Financial Regulation)
Article 46   The setting up of advance funds shall be subject to a decision by
             the authorities set out in Article 18 of the Financial Regulation ,
             on a proposal from the authorizing officer , after a favourable
             opinion has been given by the accounting officer and the Financial
             Controller .
 ---pagebreak---        !
       Ί                                                          XIX/1 73/74-E
       i
                                      14
  J
Article 47  The appointment of an administrator of advance funds shall "be
             subject to a decision by the authorities set out in Article 18
            of the Financial Regulation , on a proposal from the authorizing
            officer, after a favourable opinion has "been given by the
            accounting officer .   Such decision shall indicate the respon­
            sibilities of the administrator of advance funds .
Article 48  The decisions referred to in Articles 46 and 47 above shall be
            communicated to the authorizing officers , the Financial
            Controller , th* accounting officer and the Audit Board .
Article 49  The decision setting up an advance fund shall lay down , in
            parti cularî
            (a ) the maximum amount of the advance which can be granted ;
            (b ) whether a bank or post office giro account is to be
                  opened in the name of the Community concerned ;
            (c ) the nature and maximum amount of every payment which
                  may be made without prior authorization ;
            (d ) the time within which supporting documents must be
                  produced and the procedure for producing them ;
            ( e ) the procedure to be applied in the case of a possible
                  reconstitution of an advance ;
            (f ) the time Tfithin which the formal requirements regarding
                  the operations of the advance fund be complied with .
Article 50 Every administrator of an advance fund shall be responsible to
           the authorizing officer for the payment of debts , and to the
           accounting officer for the making of payments .
Article 51 He shall keep accounts of the funds at his disposal and of
           payments made , in accordance with the instructions of the
           accounting officer .
 ---pagebreak---                                                                     XIX/173/74-E
                                    - 15 -
Article 52 The administrator of advance funds shall make all the necessary-
Article 52
             provisions to safeguard the funds at his disposal .
Article 53 Without prejudice to the control carried out by the Financial
Article 53
             Controller, the accounting officer must himself, or through an
             assistant accounting officer, as a general rule on the spot and
             without warning, audit the funds allocated to the administrators
             of advance funds and the management of the accounting records .
Article 54 The accounting officer and the Financial Controller shall inform
Article 54
             each other of the results of their audits and shall communicate
             them to the authorizing officer .
TITLE X - IMITATION TO COMPETITIVE TENDER (SELECTION AND CALL FOR TENDERS )
      '    ( Article 59 of the Financial Regulation)
Article 55 Invitations to competitive tender shall , as far as possible ,
             have a standard form or a standard text .
Article 56 Calls for tender shall contain, in particular , information on :
              (a) the procedure' for submitting tenders , and particularly the
                   possible need to use a standard reply form ;
              (b ) the application of the protocol on privileges and immunities ,
                   and references to the general conditions applicable to the
                   contract concerned (supplies , work, services or publications )
                   and , possibly, to the document indicating the specific
                   conditions applicable to the contract ;
              (c ) a clause indicating that the submission of a tender implies
                   acceptance of the conditions enumerated ;
              (d) the terms under which an inspection may be made , to be set
                   out in detail in the case of on–the–spot inspections ;
              (e ) the period of validity of tenders during which the successful
                   tenderer may not change the terms of his tender ;
              (f) the penalties provided for by way of sanctions for failure to
                    observe the clauses of the contract ;
 ---pagebreak---                                                                        ÀlA/ I ( V 74–i!»
                                       16 -
            (g) the details which must "be contained in the invoices (or
                 in the supporting documents thereto ) in accordance with
                 the provisions of TITLE VII ;
            (h ) the prohibition of any contact between the Institution
                 and tenderers save , "by way of exception , under the
                 following conditions :
                 1 . Before      closing date for the submission of tenders :
                     - at the instance of tenderers :
                       Additional information solely for the purpose of
                       explaining the nature of the call for tender may
                     ■ be communicated to tenderers .
                     - at the instance of the Institutions :
                       If the departments of the Institution notice an
                       error , a lack of precision , an ommission or any
                       other type of material defect in the text of the
                       call for tender they may inform the persons
                       concerned under the very same conditions as those
                       applicable to the call for tender .
                 2 . After the closing date for the submission of tenders
                     and at the instance of the departments of the
                     Institutions :
                     If an explanation is required in    connection with a
                     tender , or if obvious material errors contained in
                     the tender must be corrected , the Institution may
                     contact a tenderer .
Article 57 In every case where contact has been made under the conditions
           provided for above (Article 56(h ) )» a "note for the file" shall
           be drawn up and such contact shall be mentioned in the report
           which shall subsequently be submitted to the Advisory Committee
           on Purchases and Contracts .
 ---pagebreak---                                                                    XIX/1 73/74-E
                                     - 17 -
Article 58  The general conditions applicable to the proposed contract shall
            lie attached to the call for tender .  Where appropriate , a docu­
            ment containing the specific conditions applicable to the con­
            tract shall also be attached .
Article 59  The deadline for the submission of tenders shall be fixed
            according to the nature of the contract , and shall be dependent
            on the length of time necessary for the preparation of the reply-
            to the call for tender .
Article 60  Tenderers may submit tenders
           – either by post
               The call for tender must then specify that it shall be the
               date on which a tender is posted , as indicated by the post­
               mark , which shall be proof of due posting . Tenders submitted
               by post must be registered .
           - or by delivering them to the Institution
               The call for tender must then indicate the date and time
               by which tenders must be submitted and specify the depart­
               ment to which they must be submitted against a signed and
               dated receipt .
           In both cases the same date shall apply .
           In order to maintain secrecy and to avoid any difficulties , the
           following words shall appear in the call for tender :
           " Tenders must be submitted in a closed and sealed envelope
           contained in a second closed and sealed envelope .    The inside
           envelope shall bear , in addition to the name of the department
           to which it is addressed , as indicated in the call for tender ,
           the words "Call for tender - Hot     to be opened by the registry".
           If self-adhesive envelopes are used they shall be sealed with
           adhesive tape across which the sender shall place his
           signature ."
 ---pagebreak---                                                                    XIX/1 73/74-E
                                      - 18 -
Article 61 Every tender must be opened .
           Tenders which do not satisfy the conditions laid down in the call
           for tender shall be eliminated .
Article 62 All tenderers shall be informed of the decision taken with regard
           to their tenders .
TITLE XI - RULES OP PROCEDURE FOR THE ADVISORY COMMITTEE OK" PURCHASES AND
           CONTRATS ( ACPC ) ( Articles 62 et 103 of the Financial Regulation)
Article 63 In accordance with the provisions of Articles 62 , 63 and 103 of
           the Financial Regulation , the ACPC shall be required to give its
           opinion , in an advisory capacity , on :
           (a ) all proposed contracts for work , supplies or services
                 involving amounts exceeding those indicated in Articles 62
                 and 103 of the Financial Regulation and on proposed
                 purchases of immovables , irrespective of the amount involved ;
           (b ) the proposed additional clauses referred to in the above
                 paragraph whenever such additional clauses change the amount
                 involved in the original contract ;
           (c ) proposed additional clauses which raise the total amount
                 involved in contracts already concluded , and which was
                 originally below the limits referred to in paragraph (a) of
                 this Article , beyond those limits ;
           (d ) the standard forms and texts for invitations to competitive
                 tender and those proposals which will involve an appreciable
                 deviation from such standard texts ;
           ( e ) proposed invitations to competitive tender which are
                 particularly important or are of a special nature ;
           ( f ) questions raised when contracts are concluded or performed
                 (cancellation of orders , requests for payment of late
                 execution penalties , waivers to the provisions of the
                 specification and the general conditions of contract ...),
                 should the matter be sufficiently serious to give rise to a
                 request for an opinion ;
 ---pagebreak---                                                                        XIX/173/74-E
                                    - 19 -
             (g) at the request of the competent authorizing officer or of
                  a member of the Advisory Committee on Purchases and
                  Contracts , proposed contracts involving an amount which
                  is lower than that fixed in paragraph (a ) of this Article ,
                  should he consider that such contracts involve questions
                  of principle or are of a special nature .
Article 64   The Advisory Committee on Purchases and Contracts shall draw up :
             (a ) recommendations with regard to the general supply policy
                  both within and outside the Community and shall , where
                  appropriate , carry out , or have carried out , the necessary
                  investigations and studies ;
             (b ) recommendations with regard to the laying down of the
                  general conditions for purchases and contracts .
Article 65  The files submitted to the Advisory Committee on Purchases and
            Contracts for an opinion shall "be accompanied "by a report drawn
            up and presented by the competent official or "by an alternate
            appointed by the authorizing officer .
Article 66  In every case an opinion shall be given and shall be signed by
            the Chairman .    Such opinions shall be communicated to the
            departments concerned .
Article 67  Every Advisory Committee on Purchases and Contracts shall draw
            up its own rules of procedure which shall be communicated to
            the Advisory Committee on Purchases and Contracts in the other
            Institutions .
TITLE XII - PRELIMINARY DEPOSIT BY WAY OP GUARANTEE OF EXECUTION OP THE
            CONTRACTS ( Article 64 of the Financial Regulation)
Article 68 When , by way of guarantee of execution of the contracts , the
            suppliers or contractors are required to provide a preliminary
            deposit , such deposit must , as a rule , consist of a payment made
            to the Institution in the same currency as that prescribed for
            the payment to be made for the supplies or work .
 ---pagebreak---                                                                     XIX/ v/ v 74-m
                                      _ 20 _
Article 69    Such preliminary deposit could be replaced by
              a personal , joint surety given "by a third party approved "by
              the Institution .
Article 70    The usual supporting documents accompanying the first payment
              order drawn up pursuant to a contract requiring the provision
              of a preliminary deposit , shall be supplemented by a copy ,
              certified true by the accounting officer , of the receipt issued
              when the preliminary deposit was paid , or by a copy , certified
              true by the accounting officer , of the declaration received from
              the establishment or third party providing the surety .
Article 71    Preliminary deposits shall be repaid , or the securities given in
              place of them discharged , under the conditions laid down in the
              provisions relating to the contracts , except in cases of non-
              execution or late^ execution as provided in the final paragraph
              of Article 64 of the Financial Regulation .
TITLE XIII - DETERMINATION OP THE VALUE ABOVE WHICH MOViffiLE PROPERTY MUST BE
               ENTERED IN THE INVENTORY ( Article 67 of the Financial Regulation)
Article 72 . Entries must be made in the inventory for all movable property :
              – with an original value of not less than 30 u.a .
                 ( 100 u.a . in the case of movable property of a scientific
                or technical nature )     and
              - which can be used for more than one year
                 (two years in the case of movable property of a scientific
                                      *
                or technical nature )     and
              - which are not consumer goods .
 Defined in connection with the Joint Research Centre in the "recueil des
 instructions relatives aux inventaires" (doc. 1 3.1 31 /XV/l 968-F) and the
 "nomenclature des matériels – canevas général" (doc. EUR/c/51 15/ 65~F and
 updatings ).
 ---pagebreak---                                                                     Xia/ 173/ 74-E
                                       _ 21 _
TITLE XIV - ADVERTISEMENT OP SALES OP MOVABLE PROPERTY
             ( Article 68 of the Financial Regulation)
Article 73   The sale of movable property shall he :
              (a ) suitably advertised locally if the orignal unit price
                    exceeds 2 000 u.a .
                    Ho advertisement shall be necessary if that price is
                    below 2 000 u.a .
              (b ) advertised by a notice of sale published in the Official
                    Journal of the European Communities if the original unit '
                    price is not less than 100 000 u.a .  Such sales may , of
                    course , be suitably advertised in the press of the Member
                    States .
             Advertisements in the press shall not be necessary if the cost
             involved would prevent any particular advantages from being
             gained .
TITLE XV - METHOD FOR DRAWING-UP AND OPERATING THE ACCOUNTING SYSTEM
           ( Article 74 of the Financial Regulation)
Article 74  Dramii.q-iro of the accounting: system
             The accounting system shall be divided into two separate parts :
            - budgetary accounts ,
            - general accounts .
Article 75  Budgetary accounts
             1.    The budgetary accounts shall indicate , for every subdivision
                   of the budget :
                   – the duties recorded and the funds recovered during the
                      financial year ,
                   - the commitments and payments made during the financial
                      year .
            2.     Separate accounts shall be opened so that the use of appro­
                   priations carried over and the collection of outstanding
                   debts can be watched separately .
            3.     The accounts may be itemized in order to provide a basis for
                   an analysis of the results .
 ---pagebreak---                                                                       XIX/1T3/74-E
                                 - 22 -
           4.   The accounts shall be kept in "books , or on sheets , or may­
                be stored in a computer .
Article 76 General accounts
           1.   The general accounts shall enable the Institution 's
                situation in respect of assets and. liabilities to be
                ascertained .
           2.   The accounting system to be used for the general accounts
                shall be drawn up on the basis of a decimal system of
                classification .
           3*   The following types of account , at least , shall be kept :
                Type 1   fixed capital accounts
                Type 2   fixed asset accounts
                Type 3   stock accounts
               Type 4    sundry  debitors   and creditors accounts
                Type 5   accounts for cash in hand and at bank
                Type 6   revenue a/c expenditure accounts
               Type 7    revenue a/c income accounts
               Type 8    outturn accounts .
           4 . Each of these types of account shall comprise groups (with
               a two-digit code ) which , in their turn , shall be subdivided
               into sub-groups (with a three-digit code ), and the latter
               shall be divided into accounts (with a five-digit code ).
           5.  Type 4 " sundry debitors and creditors accounts" shall contain
               all operations relating to relations with third parties and
               associated documents .
               Type 4 shall comprise the following principal groups :
               - Advances to staff
               - Accounts with the other institutions
               - Sundry debtors and creditors
               - Funds to be transferred
               - Revenue and expenditure to be charged to accounts ,
 ---pagebreak---                                                      axa/ I il/ 14-&
                        - 23 _
    - Adjustment accounts for re-use
    - Reconciliation accounts
    - Departments with separate accounts ( sickness fund )
    - Adjustment accounts for transfers of scientific and
      technical equipment between various research and
      investment objectives .
6.  T^rpe 5 "accounts for cash in hand and at bank" shall indicate
    the transactions in securities , transactions by the cash
    offices , banks and postal cheque offices , operations carried
    out by the assistant accounting officers and the administrators
    of advance fn^ds .
    Type 5 shall comprise the following principal groups :
    - Shares and securities on deposit
    - Cash offices
    - Bank accounts
    - Postal cheque accounts
    - Assistant accounting offiers
    - Administrators of advance funds .
7 . Type 6 "revenue a/c expenditure accounts " shall indicate the
    gross amount of expenditure entered in the budget .
    Separate accounts shall be opened for expenditure relating to :
    - appropriations for the current financial year
    - appropriations carried over pursuant to Article 6(1 )(b ) of
      the Financial Regulation
    - appropriations carried over pursuant to Article 6(l)(c ) of
      the Financial Regulation .
8 . Type 7 "revenue a/c income accounts" shall indicate the gross
    amount of recorded duties entered in the budgetary accounts .
    Separate accounts shall be opened for the recorded duties :
    - of the current financial year
    - still to be collected for previous financial years .
 ---pagebreak---                                                                  XIX/173/74-E
                                  - 24 -
            9«   Type 8 "outturn accounts " shall indicate the outturn of the
                 financial year :
                 - outstanding sums or sums received in excess
                 - debtor or creditor Member States
                 - surplus for the financial year .
           10 .  Each institution shall draw up an accounting system along
                 the lines set out above .  It shall create groups , sub-groups
                 and individual accounts dependent on its particular needs .
Article 77  Operation of the accounting system
            1.   The general accounts shall be kept for each calendar year
                using the double entry method .
            2.   The accounts shall be kept in books , or on sheets , or may be
                 stored in a computer .
            3.  The accounting system shall enable the overall balance of
                the accounts to be drawn up , i.e. the statement of all the
                institution's assets and liabilities accounts , including the
                balanced accounts with , in each case :
                - the account number
                - the heading
                - the total debits
                – total crédits
                - balance .
           4.   The accounting system shall enable a detailed analysis of
                the balances of sundry debitors and creditors accounts to
                be made .
           5.   The current accounts of the other institutions shall be
                audited periodically .
           6.   The suspense accounts shall be under constant examination and
                shall be settled as soon as possible , and at the latest by the
                deadline laid down in Article 73 of the Financial Regulation .
 ---pagebreak---                                                                              XIX/H3/74-E
                                            - 25 -
'                 7 *- The adjustment accounts for re-use shall make it possible to
                       monitor the re-use of the receipts covered by Article 22(b )
                       of the Financial Regulation and enable the requisite state­
                       ment at the end of Article 82(l ) and ( 2 ) to be drawn up .
                  8 . The cash (bank and postal cheque ) accounts shall be kept in
                       foreign currency and in the currency in which the accounts
                       are kept .
                  9.   The accounts of the Joint Research Centre shall be included
                       in the Commission 's general accounts .
  TITLE
  TITLE XVI
        XVI - - INSURANCE OP ACCOUNTING OFFICERS , ASSISTANT ACCOUNTING OFFICERS AND
              -• ADMINISTRATORS OF ADVANCE EUNDS - SPECIAL INDEMNITY .
         -       DETERMINING THE CATEGORIES OF OFFICIALS OR OTHER STAFF QUALIFIED TO BE
                 APPOINTED ACCOUNTING OFFICERS OR ADMINISTRATORS OF ADVANCE IUKDS*
           78
  Article 7o     The accounting officer shall be appointed by each Institution from
                 officials of Category A or Category B who are nationals of the
                 Member States .
                 The assistant accounting officers shall be appointed by each
                 Institution from .officials of Categories A and B.
                 Category C officials may be appointed assistant accounting officers
                 if they are regularly called upon to handle -funds .       However , these
                 officials shall not be empowered to sign , in the sense of Article 56
                 of the Financial Regulation , in their capacity as assistant
                 accounting officers .
                 The administrators of advance       mds   " iall be chosen from officials
                 of Categories ... f B or C , or , should we need arise , from other staff
                 having a status equivalent to th ,e Categories .
  Article 79     The accounting officer , assistant accounting officers and
                 administrators of advance funds shall insure themselves , through
                 the Institution , against the financial risks inherent in their
                 duties .
                  * ( Article 78 of the Financial Regulation)
 ---pagebreak---                                                                     XIX/1 73/74-E
                                    - 26 -
Article 80   The premiums for this insurance shall be paid directly to the
             insurer "by the Institution .
Article 81  ïïotwithstanding :
            - Articles 86-89 of the Staff Regulations of the European
               Communities and Conditions of Employment of Other Servants of
               the Communities ,
            - Article 73 of the Financial Regulation applicable to the
               General Budget of the European Communities ,
            - the Institution 's right of recovery vis-i-vis third parties ,
            the Institution shall cover risks and deficits not covered by the
            insurers , in so far as the amounts credited to the guarantee
            account opened in the name of the official whose liability is
            involved are not sufficient to cover the deficit .
Article 82  The monthly amount of the special indemnity referred to
            in Article "JQ shall be :
            - 60.00 u.a . for the accounting officer
            - 40.00 u.a . for assistant accounting officers
            - 20.00 u.a . for administrators of advance funds , where the
                           amount that they administer is at least equal
                           to or greater than 1 000.00 u.a . and where the
                           period of administration is at least equal to
                           or greater than thirty consecutive days .
            The date on which the allocation of this indemnity shall take
            effect shall be the date of entry into force of the new Financial
           Regulation , i.e. 1 May 1973 *
Article 83 A guarantee account at a bank shall be opened by the Institution
           in the name of each beneficiary in the place where the accounting
           officer performs his duties . This account shall be credited with
           the monthly indemnity referred to in Article 82 and debited by
           the amount of the deficit for which the person concerned is
           declared liable by the Institution which appointed him , in so far
           as these deficits are not covered by reimbursements from the
           insurance companies .
 ---pagebreak---                                                                             ^S/1 73/74-3
                                             - 27 -
Article £4          –e credit "balance of the guarantee account snaxl De paid to the
                    person concerned or to his dependents on termination of his duties
                    as accounting officer, assistant accounting officer or administrator
                    of ad.vsn.ce funds, after a decision has "been taken by the authorities
                    referred, to in Article "53 of the financial Regulation and the fall
                    discharge referred to in Article 80 of the Financial Regulation has
                   "been granted, and after the endorsement of the accounting officer ,
                    save -where he himself is concerned , and that of the Financial
                   Controller have "been given.
                   The requisite measures shall "be taken to ensure that the guarantee
                   account of the r-°rscn concerned can "be debited only if two
                   signatures are given, including that of the accounting officer.
                   In no case may the signature of the party concerned "be used for
                  the purposes of debiting the account .
-rrrrrr ^ y i ; | r»~ "           FZZTA1 PP0YTSTC33
Article £5        The lump-sum amounts provided for in Articles 45 > 72 , 73 and 82
                  shall "be adjusted in accordance vith variations in the Belgian
                  consumer price index , the indez for reference "being that of 1571
                   (ICO ), every tine that the magnitude of the -variation reaches :
                             in the case of the amounts referred to in
                        Articles 45 > 72 and 73
                        10^ in the case of the amounts referred to in Article 82 .
                  The Commission shall determine the new amounts , rounded off to
                  the nearest unit of account above or "below, and shall communica-e
                  them to the other institutions .
Article co        The above procedures shall not prejudice the application of the
                  special provisions of the Financial Regulation viiich are
                  applicable to the European Social Fund (Title YIXI of the
                  Financial Regulation), the European Agricultural Guidance and
                  Guarantee Fund (Title IX of the Financial Regulation), Food Aid
 ---pagebreak---                                                                      XIX/173/74-E
                                - 28 -
           (Title X of "the Financial Regulation) and. "the Office for
           Official Publications of the European Communities (Annex I
           to the' Financial Régulation) .
Article 87 Within six months of the date of entry into force of this
           Regulation, the institutions shall inform the Audit Board,
           of the provisions that they have adapted, in order to apply
           these procedures for implementation .
Article 88 These procedures for implementing the Financial Régulation
                                                                Regulation
           shall take effect from                                " 1974 .
                                           For the Commission ,
                                           The President