CELEX: 51978DC0452
Language: en
Date: 1978-09-07
Title: TRANSFERS OF APPROPRIATIONS BETWEEN CHAPTERS (Non-compulsory expenditure)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 452
Vol. 1978/0170
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
GENERAL BUDGET FOR 1978              .         COM(78 ) 452 final
SECTION III - COMMISSION                       Brussels , 7 September 1978
               TRANSFERS OF APPROPRIATIONS BETWEEN CHAPTERS
                      (Non-compulsory expenditure )
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COM(78 ) 452 final
 ---pagebreak---                                                                     XÏX/41G/78~
GENERAL BUDGST FOR 1973
SECTION' III - COMMISSION
                  '  TRANSFERS 0? APPROPRIATIONS BBTWESN CHAFFERS
                             (Non-compulsory expenditure )
A » Transfers proposed "by the Commission 'pursuant 'to Article 21 ( 8 ) of
    the Financial Regulation - of 21 December 1977
                                                                         EUA
    From Chapter 23 – Current administrative expenditure
         Article 230 – Stationery and office supplies                - '250 000
    From Chapter 25 – Expenditure on formal and other meetings
         Article 250 – Expenditure on formal meetings and
                          meetings m général                         – 250 000
    To Chapter 21      – Rental of "buildings and associated
                          expenditure
         Article 210 – Rent
         Item    2100 - Rent                                         + 200 000
    To Chapter 22      – Movable property and associated
                         expenditure
         Article 224 – Hire of equipment , operating costs
                          and rendering of services relating to
                         the Computer Centre and the running of
                         "the Information and Documentary
                         Research System , (CIRCE )
         Item    2243 – Development of data–processing1
                         applications                      ■         + 300 000
B*  Transfers submitted to the Budgetary Authority pursuant to
    Article 21 ( 2 ) of the Financial Regulation of 2.1 December 1977
     1 . TRANSFER No 25 /78
    From Chapter 101 – Contingency reserve                          – 800 000
    To Chapter 102      – Reserve intended to cover any
                           shortfall in appropriations due to
                           the difference between estimated EUA
                           conversion rates and budget implementation
                           rates actually applied                    + 800 000
 ---pagebreak---     THAJFF5R- ITo 26 /78
From Chapter 102                                                        – 350 000
To Chapter 2 i     – Rental of build ;.?1 gs ?jad associated
                      expenditure
     Article 214 – Fitting^-out of premises                             + 300 000
     Article 215 ~ Security and guarding of buildings                   + 50 000
3 . TRANSFER No 27 /78
From Chapter 102                                                        – 375 000
To Chapter 22      – Movable property and associated expenditure
     Article 221 – Furniture
     Item   2210 - New purchases                                        +  50 000
     Article 222 - Technical equipment and installations
     Item   2220 – New purchases                                        + 75 000
     Article 224 – Hire of equipment , operating costs and
                      rendering of services relating to the
                      Computer Centre and the running of the
                      Information and Documentary Research
                      System ( CIRCE )
     Item   2243 – Development of data–processing applications          + 250 000
4 . TRANSFER No 28/78
From Chapter 102                                                        – 75 000
To Chapter 23      – Current administrative expenditure
     Artiole 231 – Postal charges and telecommunications
     Item 2310     – Postage on correspondence and delivery
                      charges                                           +  50 000
     Item 2311     – Telephone , telegraph , telex, television          + 25 000
Under the terms of Article 21 (4) of the Financial Regulation , the financial
controller has approved this proposal , certifying that appropriations in
Chapter 101 were available as of
 ---pagebreak--- JUSTIFICATION
The General Budget of the European Communities for the financial year 1979
 ( OJ No L .36 of 6 Februaiy 1978 ), last amended "by Supplementary Budget No 3
( OJ No L 162 of 19 June 1978 ) was drawn up in EUA on the basis of the rates
obtaining on 1 February 1977 «                                                  . -
As far as the 1979 Budget - now in preparation - is concerned , the estimates
were based on the EUA rates obtaining on 1 February 1978 , substantially
different from the situation one year earlier ( see Annex l ). •
However , the extent to which the rates varied in the first half of 1978 was
even more marked .     Quoted at Bfrs 40.3265 (- 2.4$ ) on 2 January , the EUA
gradually fell in value .and was 4       down in March (Bfrs 39-4773 on 9 March 1978 )
but recovered to Bfrs 40*6953 (- 1®5^) 011 30 June .                                -
Since administrative expenses are ..largely paid in Belgian francs , the
Commission is faced with a shortage of appropriations , especially in
Chapters 2l , 22 and 23 of Title 2 : Buildings , equipment and miscellaneous
administrative expenditure ( see Annex II ).     There is also a strain on other
Chapters within this Title ; consequently,' much of the flexibility, deriving
from its prerogatives in the transfer of appropriations , which the Commission
usually has in implementing the Budget has been eroded .
Anticipating difficulties of this kind , the Commission requested that a
special heading be - provided in the 1978 Budget , namely Chapter 102 : Reserve
intended to cover any shortfall in appropriations due to the difference between
estimated EUA conversion rates and budget implementation rates actually applied .
However , this heading carried only a token entry .
1.    Although unable to reach a final decision on actual requirements , the
urgency of the situation is such that the Commission is proposing to make the
following transfers between Chapters within Title 2 pursuant to the provisions
of Article. 21(8 ) of the Financial Regulation of 21 December 1977 :
                                                                  Amount
                        Heading
                                                         Levied ,         Added -
  2100 Rent                                                              200 .000
  2243 Development of data-processing applications                       300 000
  230   Stationery and office supplies                   250 000
  250   Expenditure on formal meei?ings and
        meetings in general                               250 000
 ---pagebreak---                                        - 2 -
2.     The ab ovesnem i one d measure does not , however , go the whole way in
meetixjg present requirements .
Since it covers less "than half of the nominal increase in expenditure
expressed in EUA hut validated in Belgian francs , a total appropriation of
800 000 EUA is still required yet cannot , for the time being , "be drawn from
other Chapters in Title 2 *
Consequently , the only option open is to draw on Chapter 102 .
 ( a)   To "begin with , an appropriation should be transferred to this Chapter
        from another Budget heading , io.sic.elj Chapter 101 :  Contingency reserve .
        Although an appropriation of 1 600 000 EUA - shown in the Table in
        Annex II to be the probable total loss - might be considered necessary ,
        the Commission thinks it would he prudent to draw from Chapter 101 no
        more than is strictly needed for the time "being , i c e . 800 000 EUA .
 ("b )  This appropriation should then "be used to effect transfers to the
        following Articles and Items :
                                                                        EUA
        214   Fitting-out of premises                                 300 000
        215   Security and guarding of "buildings                      50 000
        2210 Furniture - new purchases                                 50 000
        2220 Technical equipment and installations -
              new purchases                                            75 000
        2243 Development of data-processing applications              250 000
        2310 Postage on correspondence and delivery charges            50 000
        2311 Telephone , telegraph , telex , television                25 000
              Total transfers                                         800 000
Accordingly , the Commission requests the Budgetary Authority to approve
the proposed transfers .
 ---pagebreak---                               MREX I
                Comparative value iof the EUA.     ' '
                                                                                 *
at 1 February 1977                    at 1 February 1978                    difference
Belgian and Luxembourg              j Belgian and Luxembourg           |I "
franc                    41.3015      franc                  40.1924      !   " 2-7    I
German mark               2.68845     German mark             2.59338         - 3.5
Dutch guilder             2.81281
                                   I
                                      Dutch guilder         . 2.77819         - 1.2    I
                                                                                       1
Pound sterling            0.6511 86 Pound sterling            0.629926        - 3.3
Danish krone  -           6,59738     Danish krone            7.01307         + 6.3
French franc              5.55215     French franc         ; 5.82906          + 5.0
Italian lira           985.667        Italian lira       1 O64.46       I     + 8.0
Irish pound               0.651186 Irish pound                0.629926 I      - 3.3
United States dollar      1.11739     United States dollar    I. 22800        + 9-9
 ---pagebreak---                                  AHNEX II
           Loss incurred in 197° imder Title 2 of the Budget
                                                     i    i  i   ii ■■ m
                                    Prom January Prom July
               Chapter                                 to December
                                                                                    Total
                                    to June
21 Rental of "buildings and
   associated expenditure              725 224,69      255 764.36                980 989.05
22 Movable property and
   associated expenditure              122 904.80      216 439.98                339 344.78
23 Current administrative
   expenditure                         112 012.97      173 695,01                285 707.98
                                                   1
   Total .                         | 960.142,46 j 645            899.35        1 606 041.81
   Remarks
   1 . The loss arises from the difference , calculated for each month , "between
   the EUA amoung obtained by applying the present updated conversion rate to
   actual expenditure and the EUA amoung obtained by applying the budget rate
   (1 EUA = Bfrs 41.3015 ).
   2 . As regards Chapter 22 and 23 "the periods under consideration are
   January to May and June to December .
   3.   During the first half of 1978 » "the change in the updated EUA rate used
   to convert expenditure incurred in Bfrs and Lfrs was as follows :
                                                          Difference in
                    Month                  Rate             relation to budget
                                                            rates ( in t )
             January                     40.4000 '                      - 2.2
             February                j   40.1924                        - 2 -7
             March                       39.5222                        - 4 -3
             April                       39.6802               •        - 3 .»
             May                         39.8955     .
             June                        40.2458                        - 2.6
   4 . In "the second half of the year , the EUA depreciation against the
    Belgian franc was estimated at 2f0f given that the average monthly figure
    in the first half of the year was
 ---pagebreak---                                                          AOTEX III
        APPROPRIATIONS IN CHAPTER 101 '
          AT 31 JULY 1978
      Amounts entered in the Budget : 5 000 000 EUA
                 Transfers approved "by the
                 Budgetary Authority
Article                                Amount in
  or item            No                EUA  .
  . 2981             1                 175 000.
     26°             4                 120 000
     950             5                 500 000
Total                              .   795 000
                 Transfers pending "before      «
                 the Budgetary Authority
Article                                Amount in       '
  or item            No                EUA
  2722       Il
                   • 12 - !            600 000
  3365               13     i          500 000
  2550               16     !          671 000
    343         : . 17 ■ ' Ii
                                       250000
  3540               19                580 000    .
    21 5 .           20                215000        :
                        ■
           .
                            I
                              :                 !   _J
  Total                              2 816 000       ;
.
             I            _J
  Amount available :       1 389 000 EUA