CELEX: 51992PC0096(02)
Language: en
Date: 1992-03-27
Title: Amended proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1365/75 on the creation of a European Foundation for the Improvement of Living and Working Conditions

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            C0M(92) 96 final
                                            Brussels, 27 March 1992
                          Amended proposal for a
                         COUNCIL REGULATION (EEC)
           amending Regulation (EEC) No 337/75 establishing a
      European Centre for the Development of Vocational Training
                          Amended proposal for a
                         COUNCIL REGULATION (EEC)
       amending Regulation (EEC) No 1365/75 on the creation of a
            European Foundation for the Improvement of Living
                          and Working Conditions
                          Amended proposal for a
                         COUNCIL REGULATION (EEC)
          amending Regulation (EEC) No 1416/76 on the financial
            provisions applying to the European Centre for the
                    Development of Vocational Training
                         Amended proposal for a
                         COUNCIL REGULATION (EEC)
          amending Regulation (EEC) No 1417/76 on the financial
         provisions applying to the European Foundation for the
               Improvement of Living and Working Conditions
        (presented by the Commission pursuant to Article 149(3)
                           of the EEC-Treaty)
 ---pagebreak---  ---pagebreak---                                  SUMMARY
                                                                   Paoe
I. EXPLANATORY MEMORANDUM                                            3
||.   AMENDED PROPOSALS FOR COUNCIL REGULATIONS (EEC)
    (a) amending Regulation (EEC) No 337/75 establishing a
        European Centre for the Development of Vocational Training   4
    (b) amending Regulation (EEC) No 1365/75 on the creation of a
        European Foundation for the Improvement of Living and
        Working Conditions                                           9
    (c) amending Regulation (EEC) No 1416/76 on the financial
        provisions applying to the European Centre for the
        Development of Vocational Training                          14
    (d) amending Regulation (EEC) No 1417/76 on the financial
        provisions applying to the European Foundation for the
        Improvement of Living and Working Conditions                41
 ---pagebreak---                                     - 3 -
                           EXPLANATORY MEMORANDUM
One 29 November 1990 the Commission presented a proposal for the
amendment of the regulations relating to the European Centre for the
Development of Vocational Training, Berlin, and the European Foundation
for the Improvement of Living and Working Conditions, Dublin.1
The purpose of this proposal was to update and consolidate the
financial rules dating from 1976 in order to meet the new requirements
for drawing up and        implementing   the statements of revenue and
expenditure resulting from the revision of 13 March 1990 of the
Financial    Regulation   applicable   to   the general  budget   of the
                 2
Commun i t i es.
On the basis of this proposal, the Council conducted the consultations
required by Article 209 of the EEC Treaty. The Court of Auditors
expressed     its   opinion    on   18 April 1991^   and  Parliament  on
13 December 1991. 4
In accordance with Article 149(3) of the EEC Treaty, the Commission has
drawn up an amended proposal to take account, where appropriate, of the
opinions expressed by the institutions consulted.
In short, the changes proposed by the Commission are largely changes of
wording. The Commission thus accepts the amendments resulting from the
opinions of Parliament and the Court of Auditors, which recommended
that more of the text of the Financial Regulation applicable to the
general budget of the Communities should be incorporated without,
however, questioning the fact that the Centre and the Foundation should
retain their separate and distinct financial regulations.
The Commission took this opportunity to consolidate the provisions
concerning the size and composition of the Centre's Management Board
and the Foundation's Administrative Board, which were enlarged as a
result of the acts of accession of Greece5 and of Spain and
Portugal.6 The basic regulations for the Centre and the Foundation
have thus been adjusted in line with these acts of accession.
The Commission would again stress the importance and urgency which
this matter dictates so that the new financial rules applicable to the
Centre and the Foundation can enter into force as soon as possible
(i.e. sixteen years after the current regulations were adopted).
1   C0M(90) 534 final .
2   Council Regulation No 610/90 of 13 March 1990 (0J L 70, 16.3.1990,
   p. 1 ) .
3   Letter of 18 April 1991 from the Secretary-General of the Court of
   Auditors, SEC 399/91 and SEC 407/91.
4   A3-0315/91.
5   OJ L 291, 19.11.1979, p. 107.
6   OJ L 302, 15.11.1985, p. 391.
 ---pagebreak---              -3    ^n/o -
The passages underlined show the changes to the initial proposal
 ---pagebreak---                  II (A) Amended proposal for a COUNCIL REGULATION (EEC)
amending   Council   Regulation   (EEC)  No 337/75 of    10 February 1975
establishing a European Centre for       the Development of Vocational
Tra ining
 ---pagebreak---                            Amended proposal for a
                         COUNCIL REGULATION (EEC)
                   amending Regulation (EEC) No 337/75
                 establishing a European Centre for the
                    Development of Vocational Training
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the           European  Economic
Community, and in particular Article 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Court of Auditors,
Whereas   the Treaty of      22 July 1975, amending    certain  financial
provisions of the Treaties establishing the European Communities and of
the Treaty establishing a single Council and single Commission of the
European Communities, modified the procedure for giving a discharge to
the Commission in respect of the implementation of the budget, and
therefore it is appropriate to update the procedure for giving a
discharge to the Management Board of the Centre by reference to the
procedure so modified, as set out in Article 206b of the EEC Treaty.
 ---pagebreak--- Whereas the Treaty of 22 July 1975 substituted the Court of Auditors
for the Audit Board in all the texts referring to the Audit Board;
Whereas the acts of accession of the Hellenic Republic1 and of the
Kingdom of Spain and the Portuguese Republic2 increased the number and
composition of the Management Board and whereas the current regulation
should be amended accordingly-.
Whereas it is desirable to provide for the transmission of the annual
general report on the Centre to all interested Community bodies;
Whereas   Council    Regulation    (EEC)   No 337/75 3  should  be   amended
accordingly;
Whereas the EEC Treaty does not provide other powers of action than
those contained in Article 235 for the adoption of this regulation;
HAS ADOPTED THIS REGULATION:
                                  Article 1
Council Regulation (EEC) No 337/75 is hereby amended as follows:
 1• Article 4(1) is replaced by the following:
    "The centre shall be administered by a Management Board comprising
    39 members of whom:
    (a) twelve members shall     represent   the Governments of   the Member
        States;
    (b) twelve members     shall   represent   the  employers'  professional
        organizat ions;
    (c) twelve members     shall   represent   the  employees'  trade  union
        organizat ion;
    (d) three members shall represent the Commission.
    The members referred to in (a), (b) and (c) shall be appointed by
    the Council on the basis of one member per Member State for each of
    those groups.
    The Commission shall appoint the members who are to represent it."
 ^.Article 9 is deleted.
 3. Article 10 becomes Article 9.
1   0J L 291, 19.11.1979, p. 107
2   0J L 302, 15.11.1985, p. 391
3   OJ L 39, 13.2.1975, p. 1.
 ---pagebreak--- 4. Article 11 becomes Article 10. and is replaced by the following:
                                   "Article 10
     1.  The Management Board   shall, by 31 March each year at the latest,
         send the Commission     an estimate of revenue and expenditure.
         This estimate, which   shall include an establishment plan, shall
         be forwarded by the   Commission to the Council and the European
         Par Iiament with the    preliminary draft budget of the European
         Commun i t i es.
     2.  The budgetary authority shall determine        the  appropriations
         ava i lable for the subsidy for the centre.
         The procedure in force for the transfer of appropriations from
         one chapter to another shall apply to these appropriations.
         The budgetary authority shall draw up the establishment plan of
         the centre.
     3.  The Management Board shall adopt the estimate of revenue and
         expenditure before      the subsidy granted     by  the budgetary
         authority. The estimate thus adopted shall be forwarded by the
         Commission to the budgetary authority."
5. Article 12 becomes Article 11.
     Paragraphs 2 and 3 of that Article are deleted.
     Paragraph 4 becomes paragraph 2.
^_s_ The fol lowing Art icle is inserted:
                                   "Article 12
     1.  The Director shall draw U P and the Management Board shall adopt,
         not later than 31 March, the annual general report on the
         activities, financial situation and future guidelines of the
         Centre and shall send it to the Commission, the Council, the
         European Parliament, the Economic and Social Committee and the
         Court of Auditors.
          It shall also, not later than 31 March, send the revenue and
         expenditure accounts, the analysis of financial management and
         the balance sheet of the centre for the preceding financial year
         to the Commission, the Council, the European Parliament and the
         Court of Auditors. The Court of Auditors shall examine them as
         provided for in Article 206a of the Treaty.
 ---pagebreak---    2.  The Court of Auditors shall transmit to the authorities
       responsible for giving discharge and to the Commission, by
       30 November at the latest, its annual report accompanied by the
       replies of the Centre to its comments, and shall ensure
       publication thereof in the Official Journal of the European
       Communities. The European Parliament, upon a recommendation
       from the Council acting by a qualified majority, shall, before
       30 April of the following year, give a discharge to the
       Management Board of the Centre in accordance with the procedures
       laid down in Article 206b of the Treaty."
7. Article 13 is replaced by the following;
                              "Article 13
   The provisions governing the staff of the Centre shall be adopted by
   the Council, acting on a proposal from the Commission, and after
   consulting the European Parliament."
                               Article 2
This Regulation shall enter into force on the third day following that
of its publication in the Official Journal of the European Communities.
This Regulation shall be binding        in  its  entirety   and directly
applicable in all Member States.
Done at Brussels,                           For the Council
                                            The President
 ---pagebreak---             II (B) Amended proposal for a COUNCIL REGULATION (EEC)
amending Council Regulation (EEC) No 1365/75 on the creation of a
European Foundation for the      Improvement  of Living and Working
Conditions.
 ---pagebreak---                                     10
                          Amended proposal for a
                        COUNCIL REGULATION (EEC)
                  amending Regulation (EEC) No 1365/75
                on the creation of a European Foundation
          for the Improvement of Living and Working Conditions
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the          European   Economic
Community, and in particular Article 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Court of Auditors,
Whereas   the Treaty of     22 July 1975, amending   certain    financial
provisions of the Treaties establishing the European Communities and of
the Treaty establishing a single Council and a single Commission of the
European Communities, modified the procedurre for giving a discharge to
the Commission in respect of the implementation of the budget, and
therefore it is appropriate to update the procedure for giving a
discharge to the Administrative Board of the Foundation by reference to
the procedure so modified, as set out in Article 206b of the EEC
Treaty;
Whereas the Treaty of 22 July 1975 substituted the Court of Auditors
for the Audit Board in all the texts referring to the Audit Board;
Whereas the acts of accession of the Hellenic Republic1 and of the
Kingdom of Spain and the Portuguese Republic 2 increased the number and
composition of the Administrative Board and whereas the current
regulation should be amended accordingly;
Whereas it is desirable to improve the procedure for the transmission
of the annual general report on the Foundation to include all Community
organizat ions;
Whereas Council    Regulation   (EEC)  No 1365/75 3 should   be   amended
accordingly;
1  0J L 291, 19.11.1979, p. 107.
2  OJ L 302, 15.11.1985, p. 391.
3  0J L 139, 30.5.1975, p. 1 .
 ---pagebreak---                                      11
Whereas the EEC Treaty does not provide other powers of action than
those contained in Article 235 for the adoption of this regulation;
HAS ADOPTED THIS REGULATION:
                                 Article 1
Regulation (EEC) No 1365/75 is hereby amended as follows:
1. Article 6(1) is replaced by the following:
   "The Administrative Board shall consist of 39 members, of whom:
   (a) twelve members shall    represent   the Governments of the Member
       States.
   (b) twelve members shall represent the employer's organizations.
   (c) twelve members shall represent the employee's organizations.
   (d) three members shall represent the Commission.
2. Article 13 is replaced by the following:
                                "Article 1
   The Director shall draw U P and the Administrative Board shall adopt,
   not later than 31 March, the annual general report on the
   activities, financial situation and future guidelines of the
   Foundation and shall send it to the Commission, the Council, the
   European Parliament, the Economic and Social Committee and the Court
   of Auditors."
3. Article 15 is replaced by the following:
                                "Article 15
    1. The Administrative Board shall, by 31 March each year at the
        latest, send the Commission an estimate of revenue and
       expenditure. This      estimate.     which    shall   include   an
       establishment plan, shall be forwarded by the Commission to the
       Council and the European Parliament, with the preliminary draft
        budget of the European Communities.
    2. The budgetary authority shall determine the         appropriations
        available for the subsidy for the Foundation.
       The procedure in force for the transfer of appropriations from
       one chapter to another shall apply to these appropriations.
        The budgetary authority shall draw up the establishment plan of
        the Foundat ion.
 ---pagebreak---                                     12
   3.  The Administrative Board shall adopt the estimate of revenue and
       expenditure before    the beginning of     the financial    year,
       adjusting it to the subsidy granted by the budgetary authority.
       The estimate thus adopted shall be forwarded by the Commission
       to the budgetary authority.
4. Article 16 is replaced by the following:
                               "Article 16
   (1) The financial provisions applying to the Foundation     shall  be
       adopted under Article 209 of the Treaty.
       The financial controller of the Commission shall be responsible
       for checking the commitment and payment of all expenditure and
       the recording and recovery of all revenue of the Foundation.
   (2) The Administrative Board shall, not later than 31 March, send
       the revenue and expenditure accounts, the analysis of financial
       management and the balance sheet of the Foundation for the
       preceding financial year to the Commission, the Council, the
       European Parliament and the Court of Auditors. The Court of
       Auditors shall examine them as provided for in Article 206a of
       the Treaty.
   (3) The Court of Auditors shall transmit to the authorities
       responsible for giving discharge and to the Commission, by
       30 November at the latest, its annual report accompanied by the
       replies of the Foundation to its comments, and shall ensure
       publication thereof in the Official Journal of the European
       Communities. The European Parliament, upon a recommendation
       from the Council acting by a qualified majority, shall, before
       30 April of the following year, give a discharge to the
       Administrative Board of the Foundation in accordance with the
       procedures laid down in Article 206b of the Treaty."
5. Article 17 is replaced by the following:
                               "Article 17
   The provisions governing the staff of the Foundation shall be
   adopted by the Council, acting on a proposal from the Commission and
   after consulting the European Parliament."
 ---pagebreak---                                    13
                               Article 2
This Regulation shall enter into force on the third day following that
of its publication in the Official Journal of the European Communities.
This Regulation   shall   be binding   in  its  entirety   and directly
applicable in all Member States.
done at Brussels,                          For the Council
                                           The President
 ---pagebreak---                                    14
            II (C) Amended proposal for a COUNCIL REGULATION (EEC)
amending Council Regulation (EEC) No 1416/76        on the financial
provisions applying to the European Centre for      the Development of
Vocational Training
 ---pagebreak---                                             15
                                Amended proposal for a
                              COUNCIL REGULATION (EEC)
                        amending Regulation (EEC) No 1416/76
               on the financial provisions applying to the European
                 Centre for the Development of Vocational Training
    THE COUNCIL OF THE EUROPEAN COMMUNITIES,
    Having regard to the Treaty establishing the             European    Economic
    Community, and in particular Article 209 thereof,
    Having regard to Council Regulation (EEC) No 337/75 of 10 February 1975
    establishing a European Centre for the Development of Vocational
    Training,1     as amended    by   Regulation    (EEC) No        , 2 and    in
    particular Article 11 thereof,
    Having regard to the proposal from the Commission,
    Having regard to the opinion of the European Parliament,
    Having regard to the opinion of the Court of Auditors,
    Whereas, pursuant to Article 130 of the Financial Regulation of
    21 December 1977, 3 as last amended by Regulation No 610/90, 4 the
    financial provisions governing the Centre should approximate as closely
    as possible to the provisions of the Financial Regulation applicable to
    the general budget of the European Communities and must therefore be
    updated;
    Whereas    the Treaty of       22 July 1975, amending    certain    financial
    provisions of the Treaties establishing the European Communities and of
    the Treaty establishing a single Council and a single Commission of the
    European Communities, modified the procedure for giving a discharge to
    the Commission in respect of the implementation of the budget and
    substituted the Court of Auditors for the Audit Board in all the texts
    referring to the Audit Board;
    Whereas Council      Regulation     (EEC)  No 1416/765 should    be   amended
    accordingly,
    HAS ADOPTED THIS REGULATION:
       1  O J L 3 9 , 31.2.1975, p . 1.
       2  OJ L
       3  O J L 356, 31.12.1977, p . 1.
       4  OJ L 70, 16.3.1990, p . 1.
       5  OJ L 164, 24.6.1976, p . 1.
(3)
 ---pagebreak---                                        16
                                   Article 1
Regulation (EEC) No 1416/76 is hereby amended as follows:
J^ Article 1(2) is replaced by the following paragraphs 2 and 3:
    "2. Expenditure may not be authorized for a period extending beyond
         the financial year.
    3.   Administrative expenditure arising from:
              contracts which   have  been   concluded,  in accordance    with
              local usage, or
              contractual provisions     relating,   in particular,   to   the
              supply of equipment,
         for periods extending beyond the financial year shall be charged
         to the statement of revenue and expenditure for the financial
         year in which it is effected."
2_i. Article 2 is replaced by the following:
                                  "Article 2
    The budget appropriations must be used in accordance with the
    principles of sound financial management, and in particular those of
    economy and cost-effectiveness. Quantified objectives must be
     identified and the progress of their realization monitored."
3^ Article 3(1) is replaced by the following:
     "1. Subject to Article 22, all revenue and expenditure shall be
         entered in fulI in the statement of revenue and expenditure and
          in the accounts without any adjustment against each other."
4^_ The first subparagraph of Article 3(2) is replaced by the following:
     "2. Total revenue shall cover total expenditure.
         However, certain revenues shall not be used          for  any   other
         purpose, notably:
              revenue earmarked for a specific purpose, such as         income
              from foundations, subsidies, gifts and bequests,
 ---pagebreak---                                       17
            revenue from third parties in respect of work carried out at
            their request."
   The second and third subparagraphs become paragraph 3.
5. Article 4 is replaced by the following:
                                 "Art icle 4
   No revenue shall be collected and no expenditure effected unless
   credited to or charged against an article in the statement of
   revenue and expenditure.
   No expenditure may be committed or authorized in excess of            the
   authorized appropriations, without prejudice to Article 22."
5. Article 6 is replaced by the following:
                                 "Art icle 6
   The following rules shall govern the utilization of appropriations:
   1.  (a) Appropriations still uncommitted at the end of the financial
            year for which they were entered, shall, as a rule, lapse.
       (b) Appropriations relating to remunerations and      allowances of
            staff may not be carried over.
       (c.) The appropriations not committed at 31 December         may   be
            carr ied over to the next financial year only.
            Tn
        (<D    © appropriations in respect of payments still outstanding
            at 31 December for commitments properly entered into between
             1 January    and   31 December     shall   be  carried     over
            automatically to the next financial year only.
   2.  For the appropriations mentioned in point 1 (c) the Commission
       shall     forward to the budgetary authority, not        later   than
        15 February, the duly substantiated requests to carry over
       appropriations     which   the    Centre  has  sent to    it   before
        1 February.
       The carryover of such appropriations may be proposed only for
       exceptional reasons to satisfy compelling needs which cannot be
       covered by appropriations for the following financial year.        In
       principle, such carryovers shall be to cover needs remaining
        from the previous financial year for which, owing to delays
       which were not the fault of the authorizing officers, the
        appropriations could not be used in time.
 ---pagebreak---                                          18
       The European Parliament shall consult the Council and shall act
       on these requests for carryovers.
       In the absence of a decision by the budgetary authority within a
       period of six weeks, the requests for carryovers shall be deemed
       to be approved.
   3.  Unused    revenue       and    appropriations     still    available    on
       31 December, arising out of the donations referred to                   in
       Article 3 ( 2 ) , shall be carried over automatically.
   4.  The following appropriations shall         lapse at the end of the year:
       (a) appropriations from the previous financial year:
           - appropriations carried over by decision under point 1(c)
               which have been neither committed nor paid,
           - appropriations           carried    over     automatically     under
               point 1(d) which have not been paid;
       (b) appropriations of the financial year which are not being
           carr ied over.
   5.  A list of automatic carryovers snail be sent to the Commission
       for   its    information before        1 March. The Commission       shall
       forward this list to the European Parliament and the Council for
       their information.
   6.  For the purposes      of implementing the statement of revenue and
       expenditure, the      use of appropriations carried over shall be
       shown separately,      for each budget item, in the accounts for the
       current financial      year."
7. The following paragraph       is added to Article 7:
   "Expenditure relating to rents or certain associated expenditure
   which is payable in advance in accordance with provisions laid down
   by law or contracts may give rise to payments from 20 December
   onwards to be charged to the appropriations for the next financial
   year."
8. Article 8 is replaced by the following:
                                     "Article 8
   1.   If the statement of revenue and expenditure is not finally
       adopted at the beginning of the financial year, Article 204 of
       the   Treaty      shall    apply   to   commitments    and   payments   of
       expenditure of a kind already approved in principle in the last
       statement duly adopted.
 ---pagebreak---                                       19
        An item of expenditure shall be considered as having been
        approved in principle in the last statement duly adopted if it
        could have been charged to a specific budget heading under the
        financial year concerned.
   2.   Payments may be made monthly in respect of any chapter up to
        one-twelfth of the total appropriations entered in the chapter
        in question for the preceding financial year, account being
        taken of transfers: this may not, however, have the effect of
        placing at the disposal of the Centre monthly appropriations in
        excess of one-twelfth of the amount of the subsidy reserved for
        the Centre in the draft budget or, in the absence thereof, in
        the preliminary draft budget of the Communities. Commitments
        may be entered into in respect of the relevant chapter up to
        one-quarter of the total appropriations entered in the chapter
         in question for the preceding financial year, account being
        taken of transfers, increased by one-twelfth for each completed
        month; the amount of the subsidy reserved for the Centre in the
        draft budget or, in the absence thereof, in the preliminary
        draft budget of the Communities may not, however, be exceeded.
   3.   At the request of the Management Board, the Commission may, in
        the light of administrative requirements, authorize two or more
        provisional twelfths simultaneously, provided that the amount
        authorized for each chapter does not exceed the maximum annual
         limit provided for in paragraph 2.
   4.    If, for a given chapter, the authorization of two or more
        provisional twelfths granted in the circumstances provided for
         in paragraph 3 does not enable the expenditure necessary to
        avoid a break in continuity of the Centre's activity in the area
         in question to be met, an overstepping of the total provided for
         in paragraph 3 may, exceptionally, be authorized in accordance
        with the same procedure, provided that the overall total of the
        appropriations    opened   in    the  statement   of  revenue and
        expenditure of the preceding year is not exceeded."
9. Art icle 9 is deleted.
10.     Article 10 becomes Article 9 and is replaced by the following:
                                 "Article 9
    The statement of revenue and expenditure shall be drawn up in ecus.
    The value of the ecu and the arrangements for its conversion into
    national    currencies shall be as       laid down   in the Financial
    Regulation applicable to the general          budget of the European
    Commun i t i es."
 ---pagebreak---                                       20
11.     Article 11 becomes Article 10:
The first subparagraph of paragraph 2 is replaced by the following:
"2.     In   the   event    of  unavoidable, exceptional     or   unforeseen
        circumstances, the Management Board of the Centre may send
        supplementary or amending estimates to the Commission. Such
        estimates shall be presented and adopted in the same form and
        following the same procedure as the statement whose forecasts
        they amend. They must be justified by reference to the
        statement."
12.     Article 12 becomes Article 11.
13.     Article 13 becomes Article 12.
14.     Article 14    becomes   Article 13.   The  following   paragraph   is
        added:
    "The statement and the list of posts shall be published in the
    Official Journal of the European Communities, at the same time as
    the budget of the Communities."
15.     Article 15 becomes Article 14 and is replaced by the following:
                                  "Article 14
    The statement of revenue and expenditure shall be subdivided into
    titles, chapters, articles and items according to the nature of the
    revenue or expenditure or the intended purpose thereof, following a
    decimal classification system.
    11 shaI I show:
    1.  as regards the statement of revenue:
         (a) the revenue for the financial year in question.
         (b) the revenue entered for the preceding financial year and the
             revenue established for the last financial year for which
             accounts have been closed.
         (c) appropriate remarks on each revenue heading;
    2.  as regards the statement of expenditure:
         (a) the appropriations made available for the financial year in
             question divided into titles, chapters, articles and items,
         (b) the   appropriations    made   available   for  the    preceding
             financial year and the actual expenditure for the last
             financial year for which the accounts have been closed,
             increased by the amounts carried forward, using the same
             classi f icat ion;
 ---pagebreak---                                      21
         (c) appropriate remarks on each subdivision;
         (d) in an annex, an establishment plan setting the number of
             permanent and temporary posts for each grade in each
             category and indicating the number of posts authorized for
             the preceding year."
16.      Article 16 becomes Article 15 and is replaced by the following:
                                "Article 15
    The establishment plan drawn up by the budgetary authority shall
    constitute an absolute limit for the Centre; no appointment may be
    made in excess of that limit.
    Instances of half-time work authorized by the Director in accordance
    with Article 29a of Council Regulation No 1859/76* laying down the
    conditions of employment of staff of the Centre may be compensated
    for by the recruitment of other staff within the limits laid down by
    the budgetary authority in the budgetary procedure."
17.      Article 17 becomes Article 16 and is replaced by the following:
                                 "Article 16
    The statement of revenue and expenditure shall be implemented in
    accordance with the principle that the authorizing officers and
    accounting officers are different individuals.
    The appropriations shall be administered by the authorizing officer
    who alone     is empowered    to enter   into commitments   regarding
    expenditure, establish entitlements to be collected and issue
    recovery orders and payment orders. The operations of collection or
    payment shall be carried out by the accounting officer. The duties
    of authorizing officer, financial controller and accounting officers
    shall be mutually incompatible."
18.      Article 18 becomes Article 17 and is replaced by the following:
                                 "Article 17
    The Management Board of the Centre shall implement the statement of
    revenue and expenditure on its own responsibility in accordance with
     this Regulation and within the limits of the appropriations
    allotted.
     *  OJ L 214, 6.8.1976. p. 1.
 ---pagebreak---                                       22
    With the exception of the cases provided for in Articles 23. 30. 38
    and 41 involving decisions overruling the financial controller, the
    Management Board shall delegate its powers under conditions to be
    laid down by it and within the limits set in the instrument of
    delegation which shall be communicated        to the delegatee, the
    accounting officers, the financial controller and the Court of
    Auditors. Those so empowered may act only within the limits of the
    powers expressly conferred upon them."
19.      The following Article 18 is inserted:
                                 "Article 18
    Where revenue and expenditure operations are managed by means of
    integrated computer systems, the provisions of Sections II and III
    and of Title VI shall apply with due allowance for the possibilities
    and requirements deriving from computerized management. To this
    end:
      -  the supporting documents may remain with the authorizing officer
         or the accounting officer for the purposes of checking,
         signatures   and   approvals    may be    added   in appropriate
         computerized form.
    The conditions for implementing this Article shall be determined by
    the implementing rules provided for in Article 7 7 . "
20.      Article 19 is replaced by the following:
                                 "Article 19
    The financial controller of the Commission shall be responsible for
    checking the commitment and payment of all expenditure and the
    establishment and recovery of all revenue of the Centre, in
    accordance with the principles laid down in Article 2.
    Monitoring shall be carried out by that official by means of
     inspection of the files relating to expenditure and revenue and, if
    necessary, on the spot.
    The financial controller may be assisted     in his duties by one or
    more assistant financial controllers.
    The financial controller must be consulted on the setting U P of the
    accounting systems of the Centre. He shall have access to the data
    of such systems."
 ---pagebreak---                                           23
   21.(a) The following paragraph      is inserted after   the second    paragraph
           of Art icle 20:
            "He shall be responsible for preparing the financial        statements
           provided for in Articles 67 and 68."
       (b) The following paragraph is added:
            "The special rules applicable to the accounting officer and to
            assistant   accounting officers shall      be    laid down      in the
            implementing rules provided for in Article 77."
   22.   The following paragraph 5 is inserted in Article 21:
       "5.   Appropriations may be transferred only to budget headings for
           which the statement of revenue and expenditure has authorized
            appropriations or carried a token entry."
       The former paragraph 5 becomes paragraph 6.
   23.      Points (b) and (c) of Article 22 are replaced by the following:
       "(b)     the following sums may be reused under the heading to which
                the initial expenditure was charged:
                -   revenue arising from the refund of amounts paid in error
                   against    appropriations entered     in the statement        of
                    revenue and expenditure;
                -   proceeds from the supply of goods and services to other
                    institutions or     bodies,   including    refunds    by   such
                    institutions or bodies of mission allowances paid on
                    their behalf;
                    insurance payments received;
                -   revenue from payments connected with lettings;
                -   revenue from the sale of publications and films;
                -   refunds of taxes - incorporated in the price of the
                    products or services provided to the Centre - effected by
                   Member States pursuant to the provisions of the Protocol
                   on    the Privileges     and  Immunities    of   the    European
                   Communi t ies;
                -   revenue from the supply of goods and services against
                    payment;
                -   proceeds   from   the sale of vehicles, equipment           and
                    installations and scientific and technical apparatus,
                   equipment and materials which are being replaced or
                    scrapped.
4)
 ---pagebreak---                                     .24
    Such sums must be re-used before the end of the financial        year
    following that in which the revenue was collected.
    The chart of accounts shall include suspense accounts to record
    re-use operations in both revenue and expenditure;
    (c) Adjustments may be made in respect of exchange differences
        occurring in budget operations. The final gain or loss shall be
         included in the balance for the year."
24.     Article 23 is replaced by the following:
                                "Article 23
    1.  All measures which may give rise to or modify a debt due to the
        Centre must be preceded by a proposal from the authorizing
        officer. Such proposals shall be sent to the financial
        controller for his approval and to the accounting officer for
        provisional registration. They shall mention, in particular,
        the type of revenue, the estimated amount thereof and the item
        to which it is to be booked and also the name and description of
        the debtor. They shall be registered after approval by the
        financial controller. The latter's approval shall serve to
        establish that:
         (a) the revenue is booked to the correct item;
         (b) the proposal is in order and conforms to the relevant
             provisions, in particular in the statement of revenue and
             expenditure, the rules applying to the Centre and all acts
             made in implementation of those Regulations, and to the
             principles of sound financial management referred to in
             Art icle 2.
        The financial     controller may withhold his approval. The
        Management Board may, by a decision stating the full reasons
         therefor, and on its sole responsibility, overrule this refusal.
        This decision shall be final and binding; it shall be
        communicated for information to the financial controller. The
        Management Board shall inform the Court of Auditors of all such
         decisions within one month.
     2.  The competent authorizing officer shall draw up, in respect of
         every debt established, a recovery order which shall be sent
         with supporting documents to the financial controller for his
         prior approval. Such recovery orders shall, after they have
         received the approval of the financial controller, be registered
         by the accounting officer.
 ---pagebreak---                                      25
       The purpose of the approval of the financial controller shall be
       to establish that:
       (a) the revenue is booked to the correct item;
       (b) the order     is in order and conforms to the relevant
            provisions;
       (c) the supporting documents are in order;
       (d) the debtor is correctly described;
       (e) the due date is indicated;
       (f) the principles of sound financial management referred to in
            Article 2 have been applied;
       (g) the amount and currency of the sum to be recovered are
            correct.
       If the financial controller's approval is withheld, the second
       subparagraph of paragraph 1 shall apply."
25.    Article 24 is replaced by the following:
                                "Article 24
    1. The accounting officer shall       assume   responsibility   for  the
       recovery orders duly drawn up.
       He shall exercise all due diligence to ensure that the resources
       due to the Centre are recovered at the due dates stipulated in
       the recovery orders, and that the rights of the Centre are
       safeguarded.
       The accounting officer shall inform the authorizing officer and
       the financial controller of any revenue not recovered within the
       t i me limits laid down.
    2. If the authorizing officer waives the right to recover an
       established debt, he shall send beforehand a proposal for
       cancellation to the financial controller for his approval and to
       the accounting officer for information.
       The purpose of the approval of the financial controller shall be
       to establish that the waiver is in order and conforms with the
       principles of     sound   financial   management   referred    to in
       Art icle 2. The proposal concerned shall be registered by the
       accounting officer.
       If approval is withheld, the Management Board may, by a decision
       stating    the   full   reasons    therefor,   and   on    its   sole
       responsibility, overrule this refusal. This decision shall be
       final and binding;    it shall be communicated for information to
       the financial controller.
       The Management Board shall inform the Court of Auditors of all
       such decisions within one month.
       When the financial controller finds that a document establishing
       a debt has not been drawn up, or that a sum due has not been
       recovered, he shall inform the Management Board."
 ---pagebreak---                                         26
26.     In Article 26, "of Article 12" is replaced by "of Article 11".
27.     Paragraph 2 of Article 27 is replaced by the following:
    "2. The procedure for       implementing paragraph 1 above shall be
        determined by the implementing rules provided for in Article 7 7 .
        This procedure shall ensure that an exact account is kept of
        commitments and authorizations in terms of actual needs."
28.     Article 28 is replaced by the following:
                                   "Article 28
    Without prejudice to the provisions of Article 18, proposals for
    commitments,     accompanied    by    supporting    documents,    shall   be
    transmitted to the financial controller and to the accounting
    officer; they shall show,          in particular, the purpose of the
    expenditure, the estimated amount involved, indicating the currency
    where possible, the budget item to which it is to be charged and
    also the name and description of the creditor;               they shall be
    registered,    after   approval     by   the   financial   controller,    in
    accordance with the implementing rules provided for in Article 7 7 . "
29.      (a) In Article 29, point (d) is replaced by the following:
         "(d)   the principles of sound financial management         referred to
                 in Article 2 have been applied."
    (b) The second paragraph     is replaced by the following:
         "Approval may not be conditional."
30.      In Article 30, the last sentence         of  the  third   paragraph  is
         replaced by the following:
    "The Management Board shall inform the Court of Auditors of all such
    decisions within one month."
31.      (This amendment to Article 33 does not affect the English text.)
 ---pagebreak---                                        27
32.     (a) (This amendment     to Article 34 does not affect     the English
            text.)
    (b) In Article 34, the third        indent  of  the  first  paragraph   is
        replaced by the following:
            the amount to be paid (in figures and words), expressed in
            ecus or in national currency,"
33.     In Article 35, "in Article 52" is replaced by "in Article 53".
34.     Article 36 is replaced by the following:
                                  "Article 36
    1.  For payments by instalment, the first payment order shall be
        accompanied by documents establishing the creditor's claim to
        payment of the instalment         in question. Subsequent payment
        orders   shall    refer    to  the   supporting   documents    already
        furnished, and repeat the reference number of the first payment
        order.
    2.  The authorizing officer may grant advances to personnel if a
        provision    laid   down    by   regulation   specifically    provides
        therefor.
        The authorizing offer may grant advances to cover disbursements
        to be effected by a member of the staff on behalf of the Centre.
        Apart from the imprest accounts referred to in Article 43, no
        advance may be paid unless it has been approved beforehand by
        the financial controller."
35.     Article 37 is replaced by the following:
                                  "Article 37
    Without prejudice to Article 18, payment orders shall be sent to the
    financial controller for prior approval.
    The purpose of this prior approval shall be to establish that:
    (a) the payment order was properly issued;
    (b) the payment order agrees with the commitment of expenditure and
        that the amount thereof is correct, taking account of the
        principles and requirements of sound financial              management
        referred to in Article 2;
    (c) the expenditure is charged to the correct item;
    (d) the appropriations are available;
    (e) the supporting documents are in order;
    (f) the payee is correctly named and described."
 ---pagebreak---                                        28
36.      (This amendment to Article 39 does not affect the English text).
37.      In Article 42,      the  second   paragraph   is  replaced   by   the
         following:
    "The procedure for opening, administering and using such accounts
    shall be determined by the implementing rules provided for in
    Article 77. These rules shall, in particular, indicate which items
    of expenditure must necessarily be paid either by cheque or by post
    office or bank transfer order, and shall require the Joint signature
    on cheques and on post office or bank transfer orders of two duly-
    authorized officials, one signature necessarily being that of the
    accounting    officer,    an   assistant   accounting   officer,   or   an
    administrator of an imprest account."
38.     Article 43 is replaced by the following:
                                   "Article 43
    For the payment of certain categories of expenditure,              imprest
    accounts may be set up in accordance with the implementing measures
    provided for in Article 77.
    Only the accounting officer may replenish the imprest accounts, save
     in exceptional cases defined in the implementing rules of this
    Regulat ion.
    These measures     shall   contain   specific  provisions  concerning   in
    part icular:
         the appointment of administrators of imprest accounts,
         the nature and maximum amount of each item of expenditure to be
         incurred,
         the maximum amount of the imprest which may be advanced,
         the time within which supporting documents must be produced,
         the responsibility of the administrators of imprest accounts.
39.      A new Section IV is inserted after Article 43:
 ---pagebreak---                                      29
                                "SECTION IV
                            MANAGEMENT OF POSTS
                                 Article 44
    1.   The following shall be established:
         (a) a file    identifying   the posts and    containing   a  job
             description for each category A post;
         (b) an organization chart showing the organization of the
             departments detailing the tasks of each administrative unit.
    2.   If the note 'to be abolished' is placed against a post in the
         statement of revenue and expenditure, it may no longer be filled
         when the next vacancy arises in the same career."
40.      Article 44 becomes Article 45.
    The first paragraph of this article is replaced by the following:
    "1. Contracts for the purchase or hiring of buildings or goods for
         the provision of services or for building works shall be in
         writing. Apart from contracts relating to the purchase of a
         building already constructed or to the leasing of a building,
         all such contracts shall be concluded after an invitation to
         tender has been issued either by the automatic public tendering
         procedure or the discretionary tendering procedure.
         However, contracts may be made by private         treaty  in the
         circumstances referred to in Article 47.
         Contracts may be made against invoice or bill of costs in cases
         provided for in Article 51."
41.      Article 45 becomes Article 46.
     In paragraph 3, "in Article 76" is replaced by "in Article 77".
 ---pagebreak---                                         30
42.      Article 46 becomes Article 47.
    Point (a) of this article is replaced by the following:
    "(a)     where the contract for the purchase or hiring of goods, for
             the provision of services or for building works involves an
             amount not exceeding the limit laid down in the implementing
             rules    provided    for   in Article 126 of     the   Financial
             Regulation     applicable    to   the  general budget   of   the
             Communities, the Centre being bound, however, as far as
             possible and by all appropriate means, to enable suppliers
             who are likely to be able to supply the goods and services
              in question to compete."
    In point ( b ) , "in Article 45" is replaced by "in Article 46".
43.      Article 47 becomes Article 48.
44.      Article 48 becomes Article 49 and is replaced by the following:
                                    "Article 49
    Contracts involving amounts exceeding the amount laid down in the
     implementing rules provided for in Article 126 of the Financial
    Regulation applicable to the general budget of the Communities shall
    be subject to the authorization of the Management Board."
45.      Article 49 becomes Article 50.
     In the third paragraph, "exceeding 100 000 units of account" is
    replaced by "exceeding the limit laid down in the implementing rules
    provided for in Article 126 of the Financial Regulation applicable
    to the general budget of the Communities".
46.      Article 50 becomes Article 51 and is replaced by the following:
                                    "Article 51
    Contracts may be made against invoice or bill of costs where the
    estimated value of the goods, services or works does not exceed the
     limits    laid down by the        implementing  rules provided   for   in
    Article 126 of the Financial Regulation applicable to the general
    budget of the Communities."
 ---pagebreak---                                            31
    47.      Article 51 becomes Article 52 and is replaced by the following:
                                      "Art icle 52
        When concluding contracts referred to in this Regulation, the Centre
        shall comply with the relevant measures laid down by the Council in
        implementation of the Treaty."
    48.      Article 52 becomes Article 53 and is replaced by the following:
                                      "Article 53
        Permanent inventories showing the quant i ty and value of all movable
        and immovable property belonging to the Centre shall be kept in
        accordance with a model drawn up by the Commission. Only movable
        property exceeding a specific value laid down in the implementing
        rules provided     for    in Article 77 shall      be entered     in those
         inventor ies.
        The Centre shall instruct its departments to check that the entries
         in the inventory correspond to the facts."
    49.      Article 53 becomes Article 54.
         In the first   paragraph,   "under   Article 76"  is replaced   by  "under
        Article 77".
    50.      Article 54 becomes Article 55.
        The first paragraph    is replaced by the following:
         "A statement or record shall be drawn up by the authorizing officer
        and authenticated by the financial controller whenever any property
         in the inventory is sold, given away free of charge, scrapped, hired
        out, or missing on account of loss, theft or any other reason."
    51.      Article 55 becomes Article 56.
         In the first     paragraph,    "in    Article 52"   is replaced    by  "in
        Article 53".
    52.      Article 56 becomes Article 57 and is replaced by the following:
(5)
 ---pagebreak---                                        32
                                  "Article 57
    The accounts shall be kept in ecus by the method of double entry, on
    the basis of the calendar year. They shall show all revenue and
    expenditure for the financial year; they shall be authenticated by
    supporting documents. They may in addition be kept in the currency
    of the country where the Centre has its seat.
    The revenue and expenditure account     and the balance sheet shall   be
    drawn up in ecus."
53.      Article 57 becomes Article 58 and is replaced by the following:
                                  "Article 58
    The chart of accounts shall make a          clear  distinction   between
    budgetary accounts and cash accounts.
     It shall comprise two parts:
    (a) accounts of budgetary expenditure and revenue, which show        the
         detailed    implementation   of  the statement   of   revenue   and
         expendi ture;
    (b) the balance sheet accounts, which disclose the assets of         the
         Centre.
    These accounts shall show the expected effect of the Centre's      legal
    obiigat ions.
    The accounts shall make it possible to draw up a balance of assets
    and a monthly statement of revenue and expenditure by chapter and
    art icle.
    These statements shall be forwarded to the financial controller, the
    authorizing officer and the Court of Auditors."
54.      Article 58 becomes Article 59 and is replaced by the following:
                                  "Article 59
    Any advance, other than regular advances which are periodically re-
    examined, shall be entered in a suspense account and settled at the
     latest during the financial year which follows the payment of this
    advance.
    However, the advances referred to in the second subparagraph of
    Article 36(2) shall be settled as a general rules within six weeks
    following completion of the project for which they were granted."
 ---pagebreak---                                        33
55.     Article 59 becomes Article 60 and is replaced by the following:
                                  "Article 60
    The detailed conditions for the establishment and operation of the
    chart of accounts for transactions relating both to assets and to
    the implementation of the budget shall be determined by the
    implementing rules provided for in Article 77."
56.     Article 60 becomes Article 61.
57.     Article 61 becomes Article 62.
    (a) "Receivable orders"      is replaced by "recovery orders".     (A
        further amendment does not affect the English text).
    (b) The following paragraph is added:
         "The same shall apply if they neglect to issue payment orders or
        are, without     Justification, iate in issuing them, thereby
        rendering the Centre liable to civil action by third parties."
58.     Article 62 becomes Article 63 and is replaced by the following:
                                  "Article 63
    1.  Accounting officers and assistant accounting officers shall
         render themselves liable to disciplinary action and, where
        appropriate, to payment of compensation as regards payments made
        by them in disregard of the third subparagraph of Article 40.
        They shall render themselves liable to disciplinary action and
         to payment of compensation as regards any loss or deterioration
        of the monies, assets and documents in their charge where such
         loss or deterioration result from an intentional mistake or
         serious negligence on their part.
         Under the same conditions, they shall be responsible for the
         correct execution of orders received by them in respect of the
        use and the administration of bank and post office giro
         accounts, and in particular:
         (a) where the recoveries or payments made by them do not agree
             with the amounts on the corresponding recovery or payment
             orders;
         (b) where they effect payment to a party other than the payee
             ent i tled.
 ---pagebreak---                                     34
   2.   Administrators of advance funds shall render themselves liable
        to disciplinary action and, where appropriate, to payment of
        compensation in the following cases:
        (a) where they cannot show due warrant with proper documents for
             payments made by them;
        (b) where they effect payments to parties other than entitled
             payees.
        They shall be liable to disciplinary action and to payment of
        compensation in respect of any loss or deterioration of the
        monies, assets and documents in their charge where such loss or
        deterioration results from an intentional mistake or serious
        negligence on their part.
    3.  The accounting officer, assistant      accounting officers and
        administrators of    imprest accounts shall    insure themselves
        against the risks arising under this Article.
        The Centre shall cover the insurance costs relating thereto.
        A special allowance is granted to the accounting officer,
        assistant accounting officers and administrators of imprest
        accounts. The sums corresponding to this allowance shall be
        credited each month to an account opened by the Centre on behalf
        of each official in order to establish a guarantee fund for the
        purpose of covering any cash or bank shortage for which the
        person concerned might render himself liable, in so far as such
        shortages have not been covered by refunds from insurance
        companies.
        The credit balance in these guarantee accounts shall be paid
        over   to the persons concerned when they terminate their
        appointment as accounting officer, assistant accounting officer
        or administrator of imprest accounts."
59.     Article 63 becomes Article 64 and is replaced by the following:
                                "Article 64
    Authorizing officers, accounting officers, assistant      accounting
    officers and administrators of imprest accounts may be liable to
    payment of compensation and to disciplinary action in accordance
    with the provisions of Regulation No 1859/76."
60.     Article 64 becomes Article 65.
 ---pagebreak---                                        35
61.      Article 65 becomes Article 66 and is replaced by the following:
                                  "Article 66
    The Management Board shall draw         up  each    year   a  revenue   and
    expenditure account for the Centre.
    The revenue and expenditure account shall cover all revenue and
    expenditure transactions relating to the preceding financial year.
    It shall be submitted in the same form and following the same
    subdivisions as the statement of reverse and expenditure.
    The revenue and expenditure account shall be preceded by an analysis
    of the financial management in respect of the year in question. For
    the drawing up of this analysis, the Centre shall supply details on
    the realization of the principles and objectives as referred to in
    Art icle 2.
62.      Article 66 becomes Article 67 and is replaced by the following:
                                  "Article 67
    The revenue and expenditure account shall include the following
    tables subdivided     in accordance with the nomenclature of the
    Centre's statement of revenue and expenditure:
    1.   a table of revenue comprising:
             estimated revenue for the financial year,
             amendments   to   the revenue estimates        as a result      of
             supplementary or amending statements,
             entitlements established in the course of the financial
             year,
             entitlements still     to be collected from the preceding
             financial year,
             revenue collected during the financial year and revenue
             carried over pursuant to Article 6 ( 3 ) ,
             amounts still to be collected at the end of the financial
             year,
             the cancellation of established entitlements.
         A statement shall be annexed, where appropriate, to this table,
         showing the balances and gross amounts of the transactions
         referred to in Article 22;
    2.   a table showing changes      in appropriations    for   the  financial
         year, indicating:
              the initial appropriations;
             any amendments to appropriations made by means of transfers;
             any amendments made by means of supplementary or amending
             statements;
              the final appropriations for the financial year;
             appropriations carried over under Article 6;
 ---pagebreak---                                       36
    3.   a table of expenditure showing the use of the      appropriations
         allocated for the financial year, indicating:
             the commitments entered into and chargeable to the financial
             year;
             the payments made and chargeable to the financial year;
             the amounts still to be paid at the close of the financial
             year;
             the appropriations carried over under Article 6;
             appropriations lapsing.
         A statement shall be annexed to this table, where     appropriate,
         showing the balances and gross amounts of the         transactions
         referred to in Article 22.
    4.   A table showing the use of appropriations carried over from the
         preceding financial year, indicating:
             the amount of appropriations carried over;
             the payments made from appropriations which         have  been
             carr ied over;
             the unused appropriations lapsing".
63.    Article 67 becomes Article 68 and is replaced by the following:
                                  "Article 68
    1.   The Management Board shall also draw up a balance sheet of the
         assets and liabilities of the Centre at 31 December of the
         preceding financial year.
         A statement of accounts showing cash movements and balances at
         the same date shall be attached thereto.
         The balance sheet shall include, on the assets side, the amount
         of revenue to be collected and, on the liabilities side, the
         amount of expenditure chargeable to the financial year, which
         have not yet been entered in the accounts.
    2.   These documents shall be submitted to the financial controller."
64.    Article 68 becomes Article 69 and is replaced by the following:
                                  "Article 69
    The Management Board shall, by 31 March at the latest, send the
    revenue    and    expenditure  account,   the  analysis  of   financial
    management and the balance sheet of the Centre for the preceding
    financial    year    to the Commission,    the Council, the    European
    Parliament and the Court of Auditors."
 ---pagebreak---                                       37
65.     Article 69 becomes Article 70.
    "Audit Board" is replaced by "Court of Auditors".
66.     Article 70 becomes Article 71.
    "Audit Board" is replaced by "Court of Auditors".
67.     Article 71 becomes Article 72.
    "Audit Board" is replaced by "Court of Auditors".
    (a) The second paragraph is replaced by the following:
         "In particular, the Centre shall place at the disposal of the
        Court of Auditors all documents concerning the conclusion of
        contracts and all accounts of cash or materials, all accounting
        records or     supporting   documents, and   also   administrative
        documents pertaining thereto, all documents relating to revenue
        and    expenditure,   all    inventories and    all   departmental
        organization charts which the Court of Auditors may consider
        necessary for auditing the revenue and expenditure account on
        the basis of records or on the spot, and all documents and data
        created or stored on a magnetic medium".
    (b) The fourth paragraph is replaced by the following:
         "The information supplied under (b) may be requested only by the
        Court of Auditors."
    (c) The seventh paragraph is replaced by the following:
         "The grant of aid to beneficiaries outside the Centre shall be
        subject to the acceptance in writing by the recipients of an
        audit being carried out by the Court of Auditors on the
        utilization of the amounts granted."
68.     Article 72 becomes Article 73 and is replaced by the following:
                                 "Article 73
    The report of the Court of Auditors established in accordance with
    Article 206a of the EEC Treaty shall be governed by the following
    provisions:
    1.   the Court of Auditors shall transmit to the Centre and the
        Commission, by 15 July at the latest, any comments on the
         accounts and the balance sheet which are, in its opinion, of
         such a nature that they should appear in the annual reports.
        These comments must remain confidential. The Centre shall
         address its reply to the Court of Auditors and simultaneously to
         the Commission by 31 October at the latest;
 ---pagebreak---                                    38
    2. the Court of Auditors' report shal1 contain an assessment of the
       soundness of financial management;
    3. the Court shall take all necessary steps to ensure that the
       replies of the Centre to its comments are published immediately
       following those comments;
    4. the Court    of Auditors shall     transmit  to the   authorities
       responsible for giving discharge, to the Centre and to the
       Commission, by 30 November at the latest, its annual report
       accompanied by the replies and it shall ensure publication
       thereof in the Official Journal of the European Communities."
69.    Former Article 73 is deleted.
70.    Article 74 is replaced by the following:
                               "Article 74
    1. The European Parliament, upon a recommendation from the Council
       acting by a qualified majority, shall, before 30 April of the
       following year, give a discharge to the Management Board in
       respect of the implementation of the statement of revenue and
       expenditure.   If that date cannot be met, the Parliament or the
       Council shall inform the Management Board of the reasons for the
       postponement.
        If the European Parliament postpones       the decision   giving
       discharge, the Management Board shall make every effort to take
       measures, as soon as possible, to facilitate removal of the
       obstacles to that decision.
    2. The discharge decision shall cover the accounts of all revenue
       and expenditure of the Centre, the resulting balance and the
       assets and liabilities of the Centre shown in the balance sheet.
        It shall include an assessment of the responsibility of the
       Management Board's budgetary management over the past financial
       year.
    3. The financial controller shall take account of the comments    in
       the decisions giving discharge.
    4. The Management Board shall take all appropriate steps to act on
       the comments appearing in the decisions giving discharge.
    5. By 15 December of the year        in which the decision    giving
       discharge is taken, the Centre shall report on the measures
       taken in the light of these comments, and, in particular, on the
        instructions given to those of       its departments which   are
       responsible for the implementation of the budget. Such reports
       shall be transmitted to the European Parliament, the Council,
       the Commission and the Court of Auditors.
 ---pagebreak---                                      39
        The Centre must also give an account, in an annex to the revenue
        and expenditure account for the next financial year, of the
        measures taken in the light of the comments appearing in the
        decisions giving discharge.
    6.  Supporting   documents   pertaining  to the    accounts  and   the
        preparation of the revenue and expenditure account and the
        balance sheet shall be kept for a period of five years following
        the date of the decision giving discharge in respect of the
         implementation of the statement of revenue and expenditure.
        However, the documents relating to transactions not finally
        closed shall be kept for longer than the said period until the
        end of the year following the year in which such transactions
        are f inaIly closed."
71.     Article 75 is replaced by the following:
                                 "Article 75
    The Management Board shall inform the Court of Auditors, as soon as
    possible, of all decisions and rules taken pursuant to Articles 3,
    6. 8. 13 and 21.
    The Court of Auditors and,the financial controller shall be informed
    of the appointment of authorizing officers, the accounting officer,
    assistant accounting officers and administrators of imprest accounts
    and of the acts of delegation or appointment under Articles 17., 20
    and 43.
    The Management Board shall transmit to the Court of Auditors       any
    rules of procedure they adopt in respect of financial matters."
72.     The following Article 76 is inserted:
                                 "Article 76
    Until the entry into force of the implementing rules provided for in
    Article 126 of the Financial Regulation applicable to the general
    budget of the Communities, the limit values to be specified for the
    purposes of Articles 47, 49, 50 and 51 shall be as follows-.
        Article 47, point ( a ) : the limit below which  contracts may   be
        made by private treaty shall be ECU 10 000,
        Article 49: the limit above which the authorization        of   the
        Management Board shall be required shall be ECU 35 000,
         third subparagraph of Article 50:   the threshold for  compulsory
         security shall be ECU 250 000,
 ---pagebreak---                                     40
       Article 51: the    limits below which contracts may be made
       against invoice or bill of costs shall be ECU 750 and ECU 2 000
       respectively for expenditure away from the Centre."
73.    Article 76 becomes Article 7 7 .
74.    Article 77 becomes Article 7 8 .
                                Art icle 2
This Regulation shall enter into force on the third day following     its
publication in the Official Journal of the European Communities.
This Regulation    shall  be binding     in  its  entirety   and directly
applicable in all Member States.
Done at Brussels,
                                            For the Counc iI
                                            The President
 ---pagebreak---                                  41
          II (D) Amended proposal for a COUNCIL REGULATION (EEC)
amending Council Regulation (EEC) No 1417/76 of 1 June 1976 on the
 financial provisions applying to the European Foundation for the
            Improvement of Living and Working Conditions
 ---pagebreak---                                    42
                         Amended proposal for a
                        COUNCIL REGULATION (EEC)
                  amending Regulation (EEC) No 1417/76
    on the financial provisions applying to the European Foundation
          for the Improvement of Living and Working Conditions
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the         European  Economic
Community, and in particular Article 209 thereof,
Having regard to Council Regulation (EEC) No 1365/75 of 26 May 1975
establishing a European Foundation for the Improvement of Living and
Working Conditions,1 as amended by Regulation (EEC) No           ,* and
in particular Article 16 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Court of Auditors,
Whereas, pursuant to Article 130 of the Financial Regulation of
21 December 1977, 3 as last amended by Council Regulation No 610/90 of
13 March 1990, 4 the financial provisions governing the Foundation
should approximate as closely as possible to the provisions of the
Financial Regulation applicable to the general budget of the European
Communities and must therefore be updated;
   1   0J L 139, 30.5.1975, p. 1.
   2   QJL
   3   0J L 356, 31.12.1977, p. 1.
   4   0J L 70, 16.3.1990, p. 1.
 ---pagebreak---                                        43
Whereas    the Treaty of       22 July 1975, amending     certain    financial
provisions of the Treaties establishing the European Communities and of
the Treaty establishing a single Council and a single Commission of the
European Communities, modified the procedure for giving a discharge to
the Commission in respect of the implementation of the budget, and
substituted the Court of Auditors for the Audit Board in all the texts
referring to the Audit Board;
Whereas Council       Regulation   (EEC)  No 1417/765    should   be   amended
accordingly,
HAS ADOPTED THIS REGULATION:
                                   Article 1
Regulation (EEC) No 1417/76 is hereby amended as follows:
1.      Article 1(2) is replaced by the following paragraphs 2 and 3:
        "2. Expenditure may not be authorized        for  a period   extending
             beyond the financial year.
        3.   Administrative expenditure arising from:
             -  contracts which have been concluded,       in accordance with
                 local usage, or
             -  contractual provisions     relating,   in particular,   to the
                supply of equipment,
             for periods extending beyond the financial year shall be
             charged to the statement of revenue and expenditure for the
             financial year in which it is effected."
 2.     Article 2 is replaced by the following:
                                   "Article 2
        The budget appropriations must be used in accordance with the
        principles of sound financial management, and in particular
        those of economy and cost-effectiveness. Quantified objectives
        must be identified and the progress of their realization
        monitored."
    5   OJ L 164, 24.6.1976, p. 1.
 ---pagebreak---                                     44
3.  Article 3(1) is replaced by the following:
    "1. Subject to Article 22, all revenue and expenditure shall be
        entered in full in the statement of revenue and expenditure
        and in the accounts without any adjustment against each
        other."
4.  The first     subparagraph   of   Article 3(2)  is  replaced  by the
    following:
    "2. Total revenue shall cover total expenditure.
        However, certain revenues shall not be used for any other
        purpose, notably:
        -   revenue earmarked for a specific purpose, such as income
            from foundations, subsidies, gifts and bequests,
        -   revenue from third parties in respect of work carried out
            at their request."
    The second and third subparagraphs become paragraph 3.
5_. Article 4 is replaced by the following:
                               "Article 4
    No revenue shall be collected and no expenditure effected unless
    credited to or charged against an article in the statement of
    revenue and expenditure.
    No expenditure may be committed or authorized in excess of the
    authorized appropriations, without prejudice to Article 22."
6.  Article 6 is replaced by the following:
                               "Art icle 6
    The    following    rules    shall    govern   the   utilization  of
    appropr iat ions:
    1.   (a)    Appropriations still uncommitted at the end of the
               financial year for which they were entered, shall, as
               a rule, lapse.
        (b)    Appropriations       relating    to   remunerations   and
               a Ilowances of staff may not be carried over.
        (c.)   The appropriations not committed at 31 December may be
               carr ied over to the next financial year only.
        (d.)   The appropriations       in respect of payments still
               outstanding at 31 December for commitments properly
               entered into between 1 January and 31 December shall
               be carried over automatically to the next financial
               year only.
 ---pagebreak---                                    45
2.   For     the   appropriations      mentioned     in   point 1 (c)     the
     Commission shall forward to the budgetary authority, not
     later than 15 February, the duly substantiated requests to
     carry over appropriations which the Foundation has sent to
     it before 1 February.
     The carryover of such appropriations may be proposed only
     for exceptional reasons to satisfy compelling needs which
     cannot be covered by appropriations for the following
     financial year.        In principle, such carryovers shall be to
     cover needs remaining from the previous financial year for
     which, owing to delays which were not the fault of the
     authorizing officers, the appropriations could not be used
      in t ime.
     The European Parliament shall consult          the Council and shall
     act on these requests for carryovers.
      In the absence of a decision by the budgetary authority
     within a period of six weeks, the requests for carryovers
     shall be deemed to be approved.
3.   Unused      revenue    and    appropriations    still    available    on
     31 December, arising out of the donations referred to in
     Article 3 ( 2 ) , shall be carried over automatically.
4.   The following appropriations shall          lapse at the end of      the
     year:
      (a)     appropriations from the previous financial year:
          -   appropriations       carried   over     by    decision    under
              point 1(c) which have been neither committed nor paid,
          -   appropriations       carried   over     automatically     under
              point 1(d) which have not been paid;
      (b)     appropriations of the financial year which are not
              being carr ied over.
 5.  A     list of automatic carryovers shall be sent                 to the
      Commission      for     its    information    before     1 March. The
      Commission      shall    forward    this   list    to    the   European
      Parliament and the Council for their information.
 6.   For the purposes of implementing the statement of revenue
      and expenditure, the use of appropriations carried over
      shall be shown separately, for each budget item, in the
      accounts for the current financial year."
 The following paragraph        is added to Article 7:
 "Expenditure relating to rents or certain associated expenditure
 which is payable in advance in accordance with provisions laid
 down by law or contracts may give rise to payments from
 20 December onwards to be charged to the appropriations for the
 next financial year."
 Article 8 is replaced by the following:
 ---pagebreak---                                  46
                             "Article 8
    1.   If the statement of revenue and expenditure is not finally
         adopted at the beginning of the financial year, Article 204
        of the Treaty shall apply to commitments and payments of
        expenditure of a kind already approved in principle in the
         last statement duly adopted.
        An item of expenditure shall be considered as having been
         approved in principle in the last statement duly adopted if
         it could have been charged to a specific budget heading
        under the financial year concerned.
    2.   Payments may be made monthly in respect of any chapter up to
        one-twelfth of the total appropriations entered in the
         chapter in question for the preceding financial year,
         account being taken of transfers: this may not, however,
         have the effect placing at the disposal of the Foundation
        monthly appropriations in excess of one-twelfth of the
         amount of the subsidy reserved for the Foundation in the
         draft budget or, in the absence thereof, in the preliminary
         draft budget of the Communities. Commitments may be entered
         into in respect of the relevant chapter up to one-quarter of
         the total appropriations entered in the chapter in question
         for the preceding financial year, account being taken of
         transfers, increased by one-twelfth for each completed
         month; the amount of the subsidy reserved for the Foundation
         in the draft budget or, in the absence thereof, in the
         preliminary draft budget of the Communities may not,
         however, be exceeded.
    3.. At the request of the Administrative Board, the Commission
         may, in the light of administrative requirements, authorize
         two or more provisional twelfths simultaneously, provided
         that the amount authorized for each chapter does not exceed
         the maximum annual limit provided for in paragraph 2.
    4.    If, for a given chapter, the authorization of two or more
         provisional twelfths granted in the circumstances provided
         for in paragraph 3 does not enable the expenditure necessary
         to avoid a break in continuity of the Foundation's activity
          in the area in question to be met, an overstepping of the
         total provided for in paragraph 3 may, exceptionally, be
         authorized in accordance with the same procedure, provided
         that the overall total of the appropriations opened in the
         statement of revenue and expenditure of the preceding year
          is not exceeded."
9.  Art icle 9 is deleted.
10. Article 10 becomes Article 9 and is replaced by the following:
 ---pagebreak---                                     47
                                "Article 9
       The statement of revenue and expenditure shall be drawn up        in
       ecus. The value of the ecu and the arrangements for              its
       conversion into national currencies shall be as laid down in     the
       Financial Regulation applicable to the general budget of         the
       European Communities."
11.    Article 11 becomes Article 10:
The first subparagraph of paragraph 2 is replaced by the following:
"2.     In   the event    of  unavoidable,    exceptional   or   unforeseen
       circumstances, the Administrative Board of the Foundation may
       send supplementary or amending estimates to the Commission.
       Such estimates shall be presented and adopted in the same form
       and following     the same procedure as the statement whose
       forecasts they amend. They must be justified by reference to
       the statement."
12.    Article 12 becomes Article 11.
13.    Article 13 becomes Article 12.
14.    Article 14    becomes  Article 13.   The   following   paragraph   is
       added:
        "The statement and the list of posts shall be published in the
       Official Journal of the European Communities, at the same time
       as the budget of the Communities."
15.    Article 15 becomes Article 14 and is replaced by the following-.
                                "Article 14
        The statement of revenue and expenditure shall be subdivided
        into titles, chapters, articles and items according to the
        nature of the revenue or expenditure or the intended purpose
        thereof, following a decimal classification system.
         It shalI show:
        1.   as regards the statement of revenue:
             (a)   the revenue for the financial year in question.
             (b)   the revenue entered for the preceding financial year
                   and the revenue established for the last financial
                   year for which accounts have been closed.
             (c)   appropriate remarks on each revenue heading;
 ---pagebreak---                                    48
    2.   as regards the statement of expenditure:
         (a)   the appropriations made available for the financial
               year    in question     divided   into titles, chapters,
               art icles and i terns,
         (b)   the appropriations made available for the preceding
               financial year and the actual expenditure for the last
               financial year for which the accounts have been
               closed, increased by the amounts carried forward,
               using the same classification;
         (c)   appropriate remarks on each subdivision;
         (d)   in an annex, an establishment plan setting the number
               of permanent and temporary posts for each grade in
               each category and indicating the number of posts
               authorized for the preceding year.
16. Article 16 becomes Article 15 and is replaced by the following:
                              "Article 15
    The establishment plan drawn up by the budgetary authority shall
    constitute an absolute limit for the Foundation; no appointment
    may be made in excess of that limit.
     Instances of half-time work authorized by the Director             in
    accordance with Article 29a of Council Regulation No 1860/76*
     laying down the conditions of employment of staff of the
    Foundation may be compensated for by the recruitment of other
    staff within the limits laid down by the budgetary authority in
    the budgetary procedure."
17. Article 17 becomes Article 16 and is replaced by the following:
                              "Art icle 16
    The statement of revenue and expenditure shall be implemented in
    accordance with the principle that the authorizing officers and
    accounting officers are different individuals.
    The appropriations shall be administered by the authorizing
    officer who alone       is empowered     to enter     into commitments
    regarding expenditure, establish entitlements to be collected
    and issue recovery orders and payment orders. The operations of
    collection or payment shall be carried out by the accounting
    officer. The       duties   of    authorizing    officer.    financial
    controller     and    accounting     officer    shall     be  mutually
    incompat ible."
18. Article 18 becomes Article 17 and is replaced by the following:
    OJ L 214, 6.8.1976, p . 1
 ---pagebreak---                                   49
                             "Art icle 17
    The Administrative Board of the Foundation shall implement the
    statement of revenue and expenditure on its own responsibility
    in accordance with this Regulation and within the limits of the
    appropriations allotted.
    With the exception of the cases provided for in Articles 23. 30.
    38   and   41  involving    decisions    overruling    the    financial
    controller.
    The Administrative Board       shall   delegate    its powers     under
    conditions to be laid down by it and within the limits set in
    the instrument of delegation which shall be communicated to the
    delegatee, the accounting officers, the financial controller and
    the Court of Auditors. Those so empowered may act only within
    the limits of the powers expressly conferred upon them."
19. The following Article 18 is inserted:
                             "Art icle 18
    Where revenue and expenditure operations are managed by means of
    integrated computer     systems, the provisions of Sections II
    and III and of Title VI shall apply with due allowance for the
    possibilities   and   requirements     deriving   from     computerized
    management. To this end:
        the supporting documents may remain with the authorizing
        officer or the accounting officer for the purposes of
        check ing,
        signatures   and   approvals   may    be  added   in    appropriate
        computerized form.
    The conditions for implementing this Article shall be determined
    by the implementing rules provided for in Article 7 7 . "
20. Article 19 is replaced by the following:
                             "Art icle 19
    The financial controller of the Commission shall be responsible
    for checking the commitment and payment of all expenditure and
    the establishment and recovery of all revenue of the Foundation,
    in accordance with the principles laid down in Article 2.
    Monitoring shall be carried out by that official by means of
    inspection of the files relating to expenditure and revenue and,
    if necessary, on the spot.
    The financial controller may be assisted     in his duties by one or
    more assistant financial controllers.
 ---pagebreak---                                       50
        The financial controller must be consulted on the setting up of
        the accounting systems of the Foundation. He shall have access
        to the data of such systems."
21. (a) The following paragraph     is inserted after the second paragraph
        of Article 20:
             "He shall     be responsible for preparing      the  financial
             statements provided for in Articles 67 and 68."
    (b) The following paragraph is added:
             "The special rules applicable to the accounting officer and
             to assistant accounting officers shall be laid down in the
              implementing rules provided for in Article 77."
22.   The following paragraph 5 is inserted in Article 21:
        "5.    Appropriations may be transferred only to budget headings
             for which the statement of revenue and expenditure has
             authorized appropriations or carried a token entry."
        The former paragraph 5 becomes paragraph 6.
23.     Points (b) and (c) of Article 22 are replaced by the following:
         "(b)    the following sums may be reused under the heading       to
                 which the initial expenditure was charged:
                 -  revenue arising from the refund of amounts paid in
                    error against appropriations entered in the statement
                    of revenue and expenditure;
                 -  proceeds from the supply of goods and services to
                    other institutions or bodies, including refunds by
                    such institut ions' or bodies of mission allowances paid
                    on their behalf;
                     insurance payments received;
                 -   revenue from payments connected with lettings;
                 -   revenue from the sale of publications and films-,
                 -   refunds of taxes - incorporated in the price of the
                    products or services provided to the Foundation -
                    effected by Member States pursuant to the provisions
                    of the Protocol on the Privileges and Immunities of
                     the European Communities;
 ---pagebreak---                                          51
               -  revenue from the supply of goods and services against
                  payment;
               -  proceeds from the sale of vehicles, equipment and
                  installations and scientific and technical apparatus,
                  equipment and materials which are being replaced or scrapped
       Such sums must be re-used before the end of the financial year
       following that in which the revenue was collected.
       The chart of accounts shall include suspense accounts to record re-use
operations in both revenue and expenditure;
       (c) Adjustments may be made in respect of exchange differences
           occurring in budget operations. The final gain or loss
           shall be included in the balance for the year."
24.    Article 23 is replaced by the following:
                               "Article 23
       1.  All measures which may give rise to or modify a debt due to
           the Foundation must be preceded by a proposal from the
           authorizing officer. Such proposals shall be sent to the
           financial controller for his approval and to the accounting
           officer for provisional registration. They shall mention,
            in particular, the type of revenue, the estimated amount
           thereof and the item to which it is to be booked and also
           the name and description of the debtor. They shall be
           registered after approval by the financial controller. The
            latter's approval shall serve to establish that:
           (a)    the revenue is booked to the correct  item;
           (b)    the proposal is in order and conforms to the relevant
                  provisions, in particular in the statement of revenue
                  and expenditure, the rules applying to the Foundation
                  and   all  acts made     in  implementation  of   those
                  Regulations, and to the principles of sound financial
                  management referred to in Article 2.
           The financial controller may withhold his approval. The
           Administrative Board may, by a decision stating the full
           reasons therefor, and on its sole responsibility, overrule
           this refusal. This decision shall be final and binding; it
           shall be communicated for information to the financial
           controller. The Administrative Board shall inform the Court
           of Auditors of all such decisions within one month.
       2.  The competent authorizing officer shall draw up, in respect
           of every debt established, a recovery order which shall be
           sent with supporting documents to the financial controller
           for his prior approval. Such recovery orders shall, after
           they have received the approval of the financial controller,
           be registered by the accounting officer.
 ---pagebreak---                                   52
        The purpose of the approval       of the  financial  controller
        shall be to establish that:
        (a)    the revenue is booked to the correct item;
        (b)    the order is in order and conforms to the relevant
              provis ions;
        (c)    the supporting documents are in order;
        (d)   the debtor is correctly described;
        (e)   the due date is indicated;
        (f)   the principles of sound financial management referred
              to in Article 2 have been applied;
        (g)   the amount and currency of the sum to be recovered are
              correct.
         If the financial controller's approval is withheld,        the
        second subparagraph of paragraph 1 shall apply."
25. Article 24 is replaced by the following:
                             "Article 24
    1.  The accounting officer shall assume responsibility for the
        recovery orders duly drawn up.
        He shall exercise all due diligence to ensure that the
        resources due to the Foundation are recovered at the due
        dates stipulated in the recovery orders, and that the rights
        of the Foundation are safeguarded.
        The accounting officer shall inform the authorizing officer
        and the financial controller of any revenue not recovered
        within the time limits laid down.
    2.  If the authorizing officer waives the right to recover an
        established debt, he shall send beforehand a proposal for
        cancellation to the financial controller for his approval
        and to the accounting officer for information.
        The purpose of the approval of the financial controller
        shall be to establish that the waiver is in order and
        conforms with the principles of sound financial management
        referred to in Article 2. The proposal concerned shall be
        registered by the accounting officer.
        If approval is withheld, the Administrative Board may, by a
        decision stating the full reasons therefor, and on its sole
        responsibility, overrule this refusal. This decision shall
        be final     and   binding; it shall     be communicated    for
        information to the financial controller.
        The Administrative Board shall inform the Court of Auditors
        of all such decisions within one month.
        When   the   financial   controller  finds   that   a document
        establishing a debt has not been drawn up, or that a sum due
        has not been recovered, he shall inform the Administrative
        Board."
 ---pagebreak---                                     53
26. In Article 26, "of Article 12" is replaced by "of Article 11".
27. Paragraph 2 of Article 27 is replaced by the following:
    "2. The procedure for implementing paragraph 1 above shall be
        determined    by   the    implementing   rules provided      for  in
        Article 77. This procedure shall ensure that an exact
        account is kept of commitments and authorizations in terms
        of actual needs."
28. Article 28 is replaced by the following:
                               "Article 28
    Without prejudice to the provisions of Article 18, proposals for
    commitments, accompanied       by supporting documents, shall         be
    transmitted to the financial controller and to the accounting
    officer; they shall show, in particular, the purpose of the
    expenditure, the estimated amount           involved,   indicating   the
    currency where possible, the budget item to which it is to be
    charged and also the name and description of the creditor-,
    they shall be registered, after approval by the financial
    controller, in accordance with the implementing rules provided
    for in Article 7 7 . "
29. (a) In Article 29, point (d) is replaced by the following:
         "(d)   the principles of sound financial management        referred
                to in Article 2 have been applied."
    (b) The second paragraph     is replaced by the following:
         "Approval may not be conditional."
30. In Article 30, the last sentence         of   the  third   paragraph  is
    replaced by the following:
    "The Administrative Board shall inform the Court of Auditors of
    all such decisions within one month."
31. (This amendment to Article 33 does not affect the English text.)
32. (a) (This amendment     to Article 34 does not      affect  the  English
         text.)
 ---pagebreak---                                    54
    (b) In Article 34, the third indent of the first paragraph         is
         replaced by the following:
         -   the amount to be paid (in figures and words), expressed
             in ecus or in national currency,"
33.  In Article 35, "in Article 52" is replaced by "in Article 53".
34. Article 36 is replaced by the following:
                              "Article 36
    J_.  For payments by instalment, the first payment order shall be
         accompanied by documents establishing the creditor's claim
         to payment     of the    instalment   in question. Subsequent
         payment orders shall refer to the supporting documents
         already furnished, and repeat the reference number of the
         first payment order.
    2.   The authorizing officer may grant advances to personnel if a
         provision laid down by regulation specifically provides
         therefor.
         The    authorizing   offer   may   grant    advances  to   cover
         disbursements to be effected by a member of the staff on
         behalf of the Foundation.
         Apart from the imprest accounts referred to in Article 43,
         no advance may be paid unless            it has been approved
         beforehand by the financial controller."
35. Article 37 is replaced by the following:
                              "Article 37
    Without prejudice to       the provisions of Article 18, payment
    orders shall be sent       to the financial controller for prior
     approvaI.
     The purpose of this prior approval shall be to establish that:
     (a) the payment order was properly issued;
     (b) the payment order agrees with the commitment of expenditure
         and that the amount thereof is correct, taking account of
         the    principles   and    requirements    of   sound  financial
         management referred to in Article 2;
     (c) the expenditure is charged to the correct item-,
     (d) the appropriations are available-,
     (e) the supporting documents are in order;
     (f) the payee is correctly named and described."
 ---pagebreak---                                  55
36. (This amendment to Article 39 does not affect the English text).
37. In Article 42,     the  second   paragraph  is  replaced  by   the
    following:
    "The procedure for opening, administering and using such
    accounts shall be determined by the implementing rules provided
    for in Article 77. These rules shall, in particular, indicate
    which items of expenditure must necessarily be paid either by
    cheque or by post office or bank transfer order, and shall
    require the Joint signature on cheques and on post office or
    bank transfer orders of two duly-authorized officials, one
    signature necessarily being that of the accounting officer, an
    assistant accounting officer, or an administrator of an imprest
    account."
38. Article 43 is replaced by the following:
                             "Article 43
    For the payment of certain categories of expenditure, imprest
    accounts may be set up in accordance with the implementing
    measures provided for in Article 77.
    Only the accounting officer may replenish the imprest accounts,
    save in exceptional cases defined in the implementing rules of
    this Regulat ion.
    These measures shall contain specific provisions concerning     in
    part icular:
         the appointment of administrators of imprest accounts,
         the nature and maximum amount of each item of expenditure to
         be incurred,
         the maximum amount of the imprest which may be advanced,
         the time within which supporting documents must be produced,
         the   responsibility of     the administrators   of   imprest
         accounts.
39. A new Section IV is inserted after Article 43:
 ---pagebreak---                                        56
                            "SECTION IV
                        MANAGEMENT OF POSTS
                             Art icle 44
    1.  The following shall be established:
        (a)    a file identifying the posts and containing      a  job
               description for each category A post;
        (b)    an organization chart showing the organization of the
               departments detailing the tasks of each administrative
               unit.
    2.  If the note 'to be abolished' is placed against a post in
        the statement of revenue and expenditure, it may no longer
        be filled when the next vacancy arises in the same career."
40. Article 44 becomes Article 45.
    The first    paragraph   of   this   article is replaced  by   the
    following:
    "1. Contracts for the purchase or hiring of buildings or goods
        for the provision of services or for building works shall be
        in writing. Apart from contracts relating to the purchase
        of a building already constructed or to the leasing of a
        building, all such contracts shall be concluded after an
        invitation to tender has been issued either by the automatic
        public tendering procedure or the discretionary tendering
        procedure.
        However, contracts may be made by private      treaty  in  the
        circumstances referred to in Article 47.
        Contracts may be made against invoice or bill of costs       in
        cases provided for in Article 51."
41. Article 45 becomes Article 46.
    In paragraph 3, "in Article 76" is replaced by "in Article 7 7 " .
 ---pagebreak---                                    57
42. Article 46 becomes Article 47.
    Point (a) of this article is replaced by the following:
    "(a)   where the contract for the purchase or hiring of goods,
           for the provision of services or for building works
            involves an amount not exceeding the limit laid down in
           the implementing rules provided for in Article 126 of the
           Financial Regulation applicable to the general budget of
           the Communities, the Foundation being bound, however, as
           far as possible and by all appropriate means, to enable
           suppliers who are likely to be able to supply the goods
           and services in question to compete."
    In point ( b ) , "in Article 45" is replaced by "in Article 46".
43. Article 47 becomes Article 48.
44. Article 48 becomes Article 49 and is replaced by the following:
                              "Article 49
    Contracts involving amounts exceeding the amount laid down in
    the implementing rules provided for in Article 126 of the
    Financial Regulation applicable to the general budget of the
    Communities     shall be subject    to the authorization of      the
    Administrative Board."
45. Article 49 becomes Article 50.
    In the third paragraph, "exceeding 100     000 units of account" is
    replaced by "exceeding the limit laid      down in the implementing
    rules provided for in Article 126 of       the Financial Regulation
    applicable to the general budget of the     Communities".
46. Article 50 becomes Article 51 and is replaced by the following:
 ---pagebreak---                                       58
                                 "Article 51
    Contracts may be made against invoice or bill of costs where the
    estimated value of the goods, services or works does not exceed the
    limits laid down by the implementing rules provided for in Article 126
    of the Financial Regulation applicable to the general budget of
    the Communit ies."
47. Article 51 becomes Article 52 and is replaced by the following:
                            "Article 52
    When concluding contracts referred to in this Regulation, the
    Foundation shall comply with the relevant measures laid down by
    the Council in implementation of the Treaty."
48. Article 52 becomes Article 53 and is replaced by the following:
                            "Article 53
    Permanent inventories showing the quantity and value of all
    movable and Immovable property belonging to the Foundation shall
    be kept in accordance with a model drawn up by the Commission.
    Only movable property exceeding a specific value laid down in
    the implementing rules provided for in Article 77 shall be
    entered in those inventories.
    The Foundation shall instruct its departments to check that the
    entries in the inventory correspond to the facts."
49. Article 53 becomes Article 54.
     In the first paragraph, "under Article 76" is replaced by "under
    Article 77".
50. Article 54 becomes Article 55.
    The first paragraph is replaced by the following:
     "A statement or record shall be drawn up by the authorizing
    officer and authenticated by the financial controller whenever
    any property in the inventory is sold, given away free of
    charge, scrapped, hired out, or missing on account of loss,
     theft or any other reason."
51. Article 55 becomes Article 56.
     In the first   paragraph,  "in Article 52"  is  replaced by  "In
    Article 53".
 ---pagebreak---                                             59
    52. Article 56 becomes Article 57 and is replaced by the following:
                                       "Article 57
        The accounts shall be kept in ecus by the method of double entry, on
        the basis of the calendar year. They shall show all revenue and
        expenditure for the financial year; they shall be authenticated by
        supporting documents. They may in addition be kept in the currency of
        the country where the Foundation has its seat.
        The revenue and expenditure account and the balance sheet shall be
        drawn up in ecus."
53.     Article 57 becomes Article 58 and is replaced by the following:
                                 "Article 58
        The chart of accounts shall make a clear        distinction  between
        budgetary accounts and cash accounts.
        It shall comprise two parts:
        (a) accounts of budgetary expenditure and revenue, which show
            the detailed implementation of the statement of revenue and
            expenditure;
        (b) the balance sheet accounts, which disclose the assets of the
            Foundat ion.
        These   accounts   shall    show   the   expected   effect  of   the
        Foundation's legal obligations.
        The accounts shall make it possible to draw up a balance of
        assets and a monthly statement of revenue and expenditure by
        chapter and art icle.
        These statements shall be forwarded to the financial controller,
        the authorizing officer and the Court of Auditors."
54.     Article 58 becomes Article 59 and is replaced by the following:
                                 "Article 59
        Any advance, other than regular advances which are periodically
        re-examined, shall be entered in a suspense account and settled
        at the latest during the financial year which follows the
        payment of this advance.
        However, the advances referred to in the second subparagraph of
        Article 36(2) shall be settled as a general rules within six
        weeks following completion of the project for which they were
        granted."
 ---pagebreak---                                   60
55. Article 59 becomes Article 60 and is replaced by the following:
                             "Article 60
    The detailed conditions for the establishment and operation of
    the chart of accounts for transactions relating both to assets
    and to the implementation of the budget shall be determined by
    the implementing rules provided for in Article 77."
56. Article 60 becomes Article 61.
57. Article 61 becomes Article 62.
    (a) "Receivable orders" is replaced by "recovery orders".     (A
        further amendment does not affect the English text).
    (b) The following paragraph is added:
        "The same shall apply if they neglect to issue payment
        orders or are, without Justification, late in issuing them,
        thereby rendering the Foundation liable to civil action by
        th i rd part ies."
58. Article 62 becomes Article 63 and is replaced by the following:
                             "Article 63
    1.  Accounting officers and assistant accounting officers shall
        render themselves liable to disciplinary action and, where
        appropriate, to payment of compensation as regards payments
        made by them in disregard of the third subparagraph of
        Art icle 40.
        They shall render themselves liable to disciplinary action
        and to payment of compensation as regards any loss or
        deterioration of the monies, assets and documents in their
        charge where such loss or deterioration result from an
         intentional mistake or serious negligence on their part.
        Under the same conditions, they shall be responsible for the
        correct execution of orders received by them in respect of
        the use and the administration of bank and post office giro
        accounts, and in particular:
        (a)    where the recoveries or payments made by them do not
               agree with the amounts on the corresponding recovery
               or payment orders-,
 ---pagebreak---                                   61
        (b)    where they effect    payment to a party other than the
               payee ent it led.
    2.  Administrators of imprest accounts shall render themselves
        liable to disciplinary action and, where appropriate, to
        payment of compensation in the following cases:
        (a)    where they cannot show due warrant with proper
               documents for payments made by them;
        (b)    where they effect payments to parties other than
               ent i tled payees.
        They shall be liable to disciplinary action and to payment
        of compensation in respect of any loss or deterioration of
        the monies, assets and documents in their charge where such
        loss or deterioration results from an intentional mistake or
        serious negligence on their part.
    3.  The accounting officer, assistant accounting officers and
        administrators of imprest accounts shall insure themselves
        against the risks arising under this Article.
        The Foundation shall cover the insurance costs relating
        thereto.
        A special allowance is granted to the accounting officer,
        assistant accounting officers and administrators of imprest
        accounts. The sums corresponding to this allowance shall be
        credited each month to an account opened by the Foundation
        on behalf of each off iciaI in order to establish a guarantee
        fund for the purpose of covering any cash or bank shortage
        for which the person concerned might render himself liable,
         in so far as such shortages have not been covered by refunds
        from insurance companies.
        The credit balance in these guarantee accounts shall be paid
        over to the persons concerned when they terminate their
        appointment as accounting officer, assistant accounting
        officer or administrator of imprest accounts."
59. Article 63 becomes Article 64 and is replaced by the following:
                              "Article 64
    Authorizing officers, accounting officers, assistant accounting
    officers and administrators of imprest accounts may be liable to
    payment of compensation and to disciplinary action in accordance
    with the provisions of Regulation No 1859/76 of 29 June 1976."
60. Article 64 becomes Article 65.
61. Article 65 becomes Article 66 and is replaced by the following:
 ---pagebreak---                                  62
                            "Article 66
    The Administrative Board shall draw up each year a revenue and
    expenditure account for the Foundation.
    The revenue and expenditure account shall cover all revenue and
    expenditure transactions relating to the preceding financial
    year. It shall be submitted in the same form and following the
    same subdivisions as the statement of reverse and expenditure.
    The revenue and expenditure account shall be        preceded by an
    analysis of the financial management in respect      of the year in
    question. For the drawing up of this analysis,        the Foundation
    shall supply details on the realization of the       principles and
    objectives as referred to in Article 2.
62. Article 66 becomes Article 67 and is replaced by the following:
                             "Article 67
    The revenue and expenditure account shall include the following
    tables subdivided in accordance with the nomenclature of the
    Foundation's statement of revenue and expenditure:
    1.   a table of revenue comprising:
        -   estimated revenue for the financial year,
         -  amendments to the revenue estimates as a result of
            supplementary or amending statements,
         -  entitlements established in the course of the financial
            year,
         -  entitlements still to be collected from the preceding
            financial year,
         -  revenue collected during the financial year and revenue
            carried over pursuant to Article 6 ( 3 ) ,
         -  amounts still to be collected at the end of the financial
            year,
         -  the cancellation of established entitlements.
         A statement shall be annexed, where appropriate,        to this
         table, showing the balances and gross amounts           of the
         transactions referred to in Article 22;
     2.  a table showing changes    in appropriations for the financial
         year, indicating:
         -  the initial appropriations;
         -  any amendments     to appropriations made by means of
            transfers;
         -  any amendments made by means of supplementary or amending
            statements;
         -   the final appropriations for the financial year;
         -  appropriations carried over under Article 6;
 ---pagebreak---                                        63
      3.  a table of expenditure showing the use of the appropriations
          allocated for the financial year, indicating:
              the commitments entered          into and chargeable to the
              f inane ia I year ;
          -   the payments made and chargeable to the financial year;
          -   the amounts still to be paid at the close of the
              f inane ia I year ;
          -   the appropriations carried over under Article 6;
          -   appropriations lapsing.
          A   statement     shall     be   annexed    to this  table, where
          appropriate, showing the balances and gross amounts of the
          transactions referred to in Article 22.
      4.  A table showing the use of appropriations carried over from
          the preceding financial year, indicating:
          -   the amount of appropriations carried over;
              the payments made from appropriations wnich          have  been
              carr ied over;
          -   the unused appropriations lapsing".
63. Article 67 becomes Article 68 and is replaced by the following:
                                  "Article 68
       1. The Administrative Board shall also draw up a balance sheet
          of    the assets and          liabilities of    the Foundation at
           31 December of the preceding financial year.
          A statement of accounts showing cash movements and balances
           at the same date shall be attached thereto.
          The balance sheet shall include, on the assets side, the
           amount of revenue to be collected and, on the liabilities
           side, the amount of expenditure chargeable to the financial
           year, which have not yet been entered in the accounts.
       2.  These documents        shall    be   submitted  to the   financial
           controller."
64. Article 68 becomes Article 69 and is replaced by the following:
                                   "Art icle 69
       1.  The Administrative Board shall, by 31 March at the latest,
           send the revenue and expenditure account, the analysis of
           financial management and the balance sheet of the Foundation
           for the preceding financial year to the Commission, the
           Council, the European Parliament and the Court of Auditors."
 ---pagebreak---                                             64
    65. Article 69 becomes Article 70.
        "Audit Board" is replaced by "Court of Auditors".
66.     Article 70 becomes Article 71.
        "Audit Board" is replaced by "Court of Auditors".
67.     Article 71 becomes Article 72.
        "Audit Board" is replaced by "Court of Auditors".
        (a) The second paragraph    is replaced by the following:
             "In particular, the Foundation shall place at the disposal
             of the Court of Auditors all documents concerning            the
             conclusion of    contracts and all       accounts of    cash or
             materials, all accounting records or supporting documents,
             and also administrative documents pertaining thereto, all
             documents   relating     to   revenue   and   expenditure,   all
             inventories and all departmental organization charts which
             the Court of Auditors may consider necessary for auditing
             the revenue and expenditure account on the basis of records
             or on the spot, and all documents and data created or stored
             on a magnetic medium".
         (b) The fourth paragraph   is replaced by the following:
             "The information supplied under (b) may be requested only by
             the Court of Auditors."
         (c) The seventh paragraph    is replaced by the following:
             "The grant of aid to beneficiaries outside the Foundation
             shall be subject to the acceptance          in writing by the
             recipients of an audit being carried out by the Court of
             Auditors on the utilization of the amounts granted."
68.     Article 72 becomes Article 73 and is replaced by the following:
                                  "Art icle 73
        The report of the Court of Auditors established in accordance
        with Article 206a of the EEC Treaty shall be governed by the
         following provisions:
         1.   the Court of Auditors shall transmit to the Foundation and
              the Commission, by 15 July at the latest, any comments on
              the accounts and the balance sheet which are, in its
             opinion, of such a nature that they should appear in the
             annual reports. These comments must remain confidential.
             The Foundation shall address its reply to the Court of
             Auditors and simultaneously to the Commission by 31 October
              at the latest;
 ---pagebreak---                                        65
    2.  the Court of Auditors' report shalI contain an assessment of the
        soundness of financial management;
    3.  the Court shall take all necessary steps to ensure that the replies
        of the Foundation to its comments are published immediately
        following those comments;
    4.  the Court of Auditors shall transmit to the authorities
        responsible for giving discharge, to the Foundation and to
        the Commission, by 30 November at the latest, its annual
        report accompanied by the replies and it shall ensure
        publication thereof in the Official Journal of the European
        Communi t ies."
69. Article 73 is repealed.
70. Article 74 is replaced by the following:
                             "Article 74
    1.  The European Parliament, upon a recommendation from the
        Council    acting by a qualified majority, shall, before
        30 April of the following year, give a discharge to the
        Administrative Board in respect of the implementation of the
        statement of revenue and expenditure.        If that date cannot
        be met, the Parliament or the Council shall inform the
        Administrative Board of the reasons for the postponement.
         If the European Parliament postpones the decision giving
        discharge, the Administrative Board shall make every effort
        to take measures, as soon as possible, to facilitate removal
        of the obstacles to that decision.
    2.  The discharge decision shall cover the accounts of all
        revenue and expenditure of the Foundation, the resulting
        balance and the assets and liabilities of the Foundation
        shown in the balance sheet.      It shall include an assessment
        of    the   responsibility   of    the   Administrative  Board's
        budgetary management over the past financial year.
    3.  The financial controller shall take account of the comments
         in the decisions giving discharge.
    4.  The Administrative Board shall take all appropriate steps to
        act on the comments appearing          in the decisions giving
        discharge.
    5.  By 15 December of the year in which the decision giving
        discharge is taken, the Foundation shall report on the
        measures taken in the light of these comments, and, in
        particular, on the instructions given           o those of    its
        departments which are responsible for the implementation of
         the budget. Such reports shall be transmitted            to the
         European Parliament, the Council, the Commission and the
        Court of Auditors.
 ---pagebreak---                                          66
          The Foundation must also give an account, in an annex to the
          revenue and expenditure account for the next financial year, of the
          measures taken in the light of the comments appearing in the
          decisions giving discharge.
     6.   Supporting documents pertaining to the accounts and the preparation
          of the revenue and expenditure account and the balance sheet
          shall be kept for a period of five years following the date
          of   the   decision   giving   discharge   in respect  of the
           implementation of the statement of revenue and expenditure.
          However, the   documents relating to transactions not finally
          closed shall   be kept for longer than the said period until
          the end of      the year following the year     in which such
          transactions   are finally closed."
71 . Article 75 is replaced by the following.-
                               "Art icle 75
     The Administrative Board shall inform the Court of Auditors, as
     soon as possible, of all decisions and rules taken pursuant to
     Articles 3, 6. 8. 13 and 21.
     The Court of Auditors and the financial controller shall be
      informed of     the appointment     of  authorizing officers, the
     accounting     officer,     assistant    accounting  officers  and
     administrators of imprest accounts and of the acts of delegation
     or appointment under Articles 1 7 , 20 and 43.
     The Administrative Board shall transmit to the Court of Auditors
     any rules of procedure they adopt          in respect of financial
     matters."
72.  The following Article 76 is inserted:
                               "Article 76
     Until the entry into force of the implementing rules provided
     for in Article 126 of the Financial Regulation applicable to the
     general budget of the Communities, the limit values to be
     specified for the purposes of Articles 47, 49, 50 and 51 shall
     be as follows:
          Article 47, point ( a ) : the limit below which contracts may
          be made by private treaty shall be ECU 10 000,
          Article 49: the limit above which the authorization of the
          Administrative Board shall be required shall be ECU 35 000,
           third   subparagraph    of   Article 50: the   threshold for
          compulsory security shall be ECU 250 000,
 ---pagebreak---                                      67
           Article 51: the limits below which contracts may be made
           against   invoice or bill of costs shall be ECU 750 and
           ECU 2 000    respectively    for   expenditure   away   from   the
           Foundat ion."
73.    Article 76 becomes Article 77.
74.    Article 77 becomes Article 78.
                                 Art icle 2
This Regulation shall enter into force on the third day following         its
publication in the Official Journal of the European Communities.
This Regulation    shall   be binding      in  its  entirety   and   directly
applicable in all Member States.
Done at Brussels,
                                                     For the Counc iI
                                                     The President
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(92) 96 final
                                                      DOCUMENTS
EN                                                                              04
                                Catalogue number: CB-CO-92-107-EN-C
                                                             ISBN 92-77-42058-8
Office for Official Publications of the European Communities
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