CELEX: 51977PC0059
Language: en
Date: 1977-03-10
Title: AMENDED PROPOSAL in accordance with Articles 149/EEC and 119/EAEC, for a Council Regulation (ECSC, EEC, Euratom) amending the Financial Regulation of 25 April 1973 applicable to the general budget of the European Communities (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 59
Vol. 1977/0025
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(77)59 final
                                                 Brussels , 10 March 1977
    As        /***.
   /Ν         '             -Α
  -::V                 "t Kl
                                AMENDED PROPOSAL
             in accordance with Articles 149/EEC and 119/EAEC ,
             for a Council Regulation (ECSC , EEC, Euratom )
             amending the Financial Regulation of 25 April 1973
             applicable to the general budget of the European
                                   Communities
                    ( submitted to the Council by the Commission )
 COM(77 ) 59 final
 ---pagebreak---                      EXPLANATORY MEMOEAflOtIM
  At its sitting of 14 December 1976 , the European Parliament
 adopted a resolution embodying its opinion on the proposal
  from the Commission to the Oounoil for a Regulation amending
 the Financial Regulation of 25 April 1973 . In this opinion
 Parliament suggests certain amendments to the proposal from
 the Commission .
 The Commission feels that most of the amendments proposed ty
 Parliament do not warrant any objeotion on its part , and that
 they may be incorporated as they stand . These amendments concern*
     (i ) the recitals ,
   (ii ) Articles 1(2 ), 3, 4, 5 , 6(1 ), ( 2) and (5 ), 7, 8, 12, 13,
          17 , 23, 24, 27 , 31 , 42, 73, 75, 81, 85, 90, 91 , 92,         9
          93 , 94 , 95 , 98(2 ), 107 , 113 and 119 of the Financial
          Regulation of 25 April 1973,
 (iii )        new Article providing for the re-examination of the
          Financial Regulation every three years *
These amendments would improve the initial draft without impairing
its structure .
On the other hand, the Commission feels that it has to express
oertain reservations , or give preference to the initial text of its
draft regulation, as regards some Articles t
(ft) Amendment to Artiole 6(2) and deletion of Article 27 .
      As regards resources , the Commission 's proposal , based on the
       "cash budget" concept , provided that "the revenue of a financial
      year shall be entered in the acoounts for that financial year on
      the basis of the amounts collected during the financial year" and
      that the own resources paid (by the Member States ) shall be credited
     to the current financial year regardless of the date of establishment .
     The European Parliament endorses the Audit Board 's suggestion that
     the "financial year theory" be applied. The wording adopted V
     Parliament therefore states that "the revenue of a finanoial year
    shall be entered in the accounts for that finanoial year on the
    hasia of entitlements recorded np to and inoludlag 31 December".
 ---pagebreak---     The Commission basically shares the European Parliament 's
    viewpoint , but has to weigh up the financial management
    implications . It is therefore examining these in conjunction
    with the financial and teohnioal authorities in the Member States
    in order to find a solution whioh is satisfactory from the
    finanoial management angle *
(b) Amendaient to Articles 1 (3) 9 6(3 )» «nd 16(2).
    Article 1(3 ) ooncerns the introduction of a distinction in
    the budget between appropriations for commitment and
    appropriations for payment , Article 6(3 ) with the utilization
    and maintenance of appropriations and Article I6(2)(b) with
    the budgetaiy presentation of appropriations .
    The Commission accepts Parliament *s proposal to replaoe the
    expression "appropriations for commitment " by "commitment
    authorizations ".  The new term describes the aotu&l nature of
    the operation (basically an authorization, through the budget ,
    to oontract an obligation to be charged to Community funds )
    better than the word "appropriation" the meaning of which is much
    less precise and the use of whioh is a potential source of
    ambiguity, particularly when translated into other Community
    languages . With the expression "commitment authorization"
    replacing "appropriation for commitment ", it would seem preferable
    to retain the wording initially adopted by the Commission for
    these three Artioles .
    There is no basio contradiction between the respective texts
    proposed ty Parliament and the Commission . However , the advantage
    of keeping the Commission *s text is that it will permit a more
    logical sequence for the three Artioles in question as well as
    greater consistency and clarity .     Furthermore , by keeping to the
    original wording of Article 6(3 ), the Commission will ensure that
    the unused appropriations for payment are still treated "globally",
    one of the fundamental aspects of the new system proposed , which
    implies greater rigidity as regards commitments but calls for more
    flexibility as regards payments , the inevitable outcome of commitments .
(o) Amendment to Article 21 : Transfer of appropriations .
    Paragraph 2, whioh Parliament proposes to delete , makes provision
    for the adjustment of appropriations for payment , and should be
    retained in order to provide greater flexibility in the utilization of
    appropiations for payment . Retention of paragraph 2 means that
    paragraphs 3 &nd 4 should also bo retained, to ensure that the transfer
    provisions are worded as clearly and consistently as possible .
 ---pagebreak---                               - 3 -
(d) Article 85a :       Btaff of the Court of Auditors .
      The European Parliament suggests that the proposal for an
      amendment incorporate the present Article 85 as Article 85a.
      This Artiole stipulates that the members of the Audit Board
       shall aot collectively and that they may seek assistance from
       staff within the limits laid down and made known to the
       authorities in whose organization they are to carry cat their
       work .
       The provisions regarding staff seem to "be in keeping with the
       prerogatives of the Court of Auditors and have "been included
       in the amended text , hut the principle of oollegial action
       has "been omitted , as it was affirmed by the Treaty of
                      r
       22 July 1975 for only one act , adoption of the annual report .
       This reflected the wish to leave the matter open so that the
       Court itself could decide on its modus operandi .           To make
       provision here and now in the Financial Regulation for
       collective action "by the Court of Auditors would "be to
       anticipate the deoisions to be taken in its rules of
       procedure .    It was therefore impossible to inolude the first
       two paragraphs of the existing Artiole 85 in the Commission * s
       amended proposal .
 (•) New Axticie 92a * Making available to the European Parliament
       by all institutions and all staff of the European Coraaunities
       of any documents and information which Parliament calls for in
       the oontext of its exercise of control of the general budget of
       the European Communities .
       This additional Article has clearly been proposed ly Parliament
       as a result of the discussions on the "malt " issue and the draft
      motion of censure® The Commission 's viewpoint was given during
      theso disoussion& . It seems unacceptable' to oreate an obligation
      to provide "ary documents " without first defining the scope of
      the word "dooumftrrfc ^ making requisite provision for seoreoy in
      the areas where this is required s banking, competition , Bur&tom,
      etc *, and consolidating the miles guaranteeing the complete
      independence cf tha financial controllers of the respective
           itut iocs «   &t would tfcarsfor *} 30312 ols&r tfc&'S the wordfj 'S1 of
     *be a&w Article          tu&y go no father than to .r^quira the
     provision cf "asy isxfoxmtioa® which th# Kwopaaa ?terUsoa&? ^Hs
     tor,.
 ---pagebreak---                               - 4 -
( f) Amendment, to Artiole 98(5 ) 1 Non-deduction of Community tax from
        the staff expenditure account ( researoh appropriations ).
        Parliaments proposal to delete from the first subparagraph of
        paragraph 5 "the phrase "after deduction of the Community tax "
        would mean that the tax deducted from the pay of research staff ,
        which is now regarded as a resource for the staff appropriation
        account ( the "staff expenditure account " in the proposal ), would
        in future be oredited to the statement of revenue in the budget .
        Furthermore , assignment to the appropriation accounts and researoh
        objectives of expenditure provisionally charged to the staff
        expenditure account would entail additional charges relating to
        this tax , ultimately or eating: additional requirements as regards
        the prograiMEO allocations which are now calculated net of tax .
        It would therefore seem ■ preferable to kaop the present system
        without precluding , at a later date , where appropriate , the
        possibility of the European Parliament S s proposed aaiecuJffioa-fc being
        incorporated in the forthcoming revision of tha provisions ooxio&raiixig
        rosearoh and investment appropriations .
The amended draft regulation is accompanied by two working
 papers designed to make the text easier to understand i
   ( i ) a table listing the proposed amendments ,
 ( ii )   parallel texts comprising tha Financial Regulation of
          25 April 1973 , the Commission ^ initial draft and the
          final draft amended in eooordance with Artioles 149/EEC
          and II9/EAEC .
 ---pagebreak---                                        AMENDED PROPOSAL
                       in accordanoe with Articles 149/EBO and II9/EAEC ,
                    for a Council Regulation (ECSC , EEC , Euratom ) amending
                     the Financial Regulation of 25 April 1973 applicable
                      to the general "budget of the European Communities
      THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
      Having regard to tho Treaty establishing the European Coal and St^,el Community, «r<4
      in particular Article 78f thereof ;
      Having regard to the Treaty establishing the European Eoosooio Coqpunity, and in
    . particular Article 209 thereof ;
      Having regard to the Treaty establishing tho European Atoaio Energy Ccmarunity, and
      in particular Article 183 thereof ;
      Having regard to the proposal from the Commission ;
      Having regard to the Opinion of the European Parliament ;
      Whereas the Treaty of 22 July 1975 amended oertain finanoial' provisions of the
j     Treaties establishing the European Communities and of the Treaty establishing a
 j    Single Council and a Single Commission of the European Communities ; and whereasy
 j in the light of these amendments changes need to be made to the provisions of the
s 5 , Financial Regulation relating to the adoption of the budget and the measures to b®
j taken if , at the beginning of a budget year , the budget has not y^t been adopted!
      Whereas account should also be taken of the changed distribution of the powers
      of the two institutions which hold the budgetary authority "by amending the
      provisions concerning transfers to refleot the fact that both these institutions ,
      i.e. the Council and the European Parliament , are involved and that the Counoil
      takes the final decision on transfers relating to expenditure resulting
      necessarily from the Treaties and acts adopted in accordanoe therewith , and the
   . Hiropean Parliament the final decision on transfers of all other expenditure ;
      Whereas the Treaty of 22 July 1975 established a Court of Auditors which replaces
      the Audit Board and the ECSC Auditor ; whereas , moreover, the Court of Auditors
      should have the same status as an institution in matters concerning the
      establishment and implementation of its budget ; whereas , however, the Finanoial
      Regulation should define more dearly the jurisdiction and powers of the Court
      and the manner in which it should exercise those powers once it beoomes
      operational ; and whereas it is therefore appropriate to stress the need to
      review that part of the Financial Regulation which relates to the Court of
      Auditors ;
      whereas there should be conferred upon all the Institutions the r*ght to apply the
      practices current in some of the Institutions in respect of th« implementation of
  * to                   whereas in particular all the Institutions should be empowered
      ™ nxeot themselves any neoessary transfers within their own budget section|
 ---pagebreak---                                            _ 2 -
whereas in respect of the Guarantee Section of the European Agriqxltural Guidanoe
and Guarantee Pond the Commission should - because of the requirement that the
account 8 be closed on 31 Maroh – be empowered to o&rry out bet weep 1 January and
31 Karch of the subsequent finr-noial year any transfer® between oip.aptaro that j&oy
be required ; whereas pursuant to the provisions of Regulation (Ej?C) No 2681 /74 ,
it is essential that the Commission Bbould be empowered to make transfers as
necessary between chapters of the Guarantee Section of the Europej^n Agricultural
Guidance and Guarantee Fund, and the Pood Aid chapter ;
Whereas the definition of the unit of account and the methods applicable to making
conversions between the unit of account and the currencies of the Kember States ,
embodied in the tert of Article 10 of the Financial Regulation of 25 April 1973
are no longer appropriate to the current international monetary situation , and
whereas in its report of 4 March 1975 "the Monetary Committee took the view that
a unit of account based on a basket of Community currencies would be beet suited
to the requirements of the Community in general }
Whereas the Council has already adopted euoh a unit of acoount to express th® aaaunt »
of aid mentioned in Article 42 of the ACP-EEC Lora3 Convention iij. Decision
Ko 75/250/ESd { whereas the Commission of the European Communities has adopted the
 earns unit of account for the implementation of th® EC3C Treaty in Deoision              I
Fo 3269/75//^ csc J     whereas the eosne definition should be adopted for the purposes
of implementing the ESC and EAE'Q Treaties f                                              !
'Whereas it is necessary to harmonize th® various budgetary procedures currently na&d     i
for the Social Fund , the Regional Fund and the European Agri cult)jural Guidance and     :
Guarantee Ford , Guidance Section } whereas it io essential that iphaRs procedures be    j
brought in line with the general system ; wfceroas, notwithetanditig ihie 9 tre»eition«i I
provisions eras-; bo introduced to enable t-he arrangement© used fo.r these Fucrds to by {
gradually adapted to the general system }                                                I
                                                                                         1
Whereas a distinction should be cade between commitment authorizations and               j
appropriations for paynent in the case of projects lasting several years and the         i
projects to which euch a distinction applies should be determined under the              5
 budgetary procedure ?                                                                   j
 Whereas , in the case of research and investment appropriations , account should
 be taken of the need for budgetary clarity and whereas an initial breakdown of
 research appropriations by article and item should be given in a speoial chapter
 of the section of the budget relating to the Commission | whereas, moreover g in
 the light of the experience acquired in the preparation and management of the
 function-orientated budget applicable to these research ana investment
 appropriations , the system used for their functional presentation needs to
 be rationalized and simplified ?
 Whereas the . Official Publications Office 1 carries out work for all the Institutions ,
 thus constituting a joint service , and it is oonoequent.ly neooso&ry to improve th®
 presentation and implementation of the budget for this Office | whereas the
  appropriations for the Official Publications Office should " consequently be
  entered in an Annex to the " Commissi on" section in which all thes^ appropriations
  will be entered under a speoifio budget heading and - in order to avoid unnecasaajQr
  inflation of the budget - the Institutions should no longer be required to Bake
  payments to the Office ;
Whereas , to take aooount of developments in Community activities , the budgetary
nomenclature may be changed each year under the budgetary. procedure ;
   0J No L 104 of 24.4.1975 » P. 35 .
 ---pagebreak---                                                   _  X _
             Hhoreao the definitive application of the own resources system from 1 January 1978
             neoessitates the jaodifioation of certain finanoial provisions and the introduction
             of new provisions in order to ensure the Communities * finanoial autonomy by the
             assignment of the total Gum of own resources ;
              Whereas , once this finanoial autonomy is achieved, the effeoting c;f expenditure will
             no longer require the carrying^-ovor of appropriations whioh had ncjj; been committed by
              the end of the finanoial year? whereas the provision for euoh oar^y-evers ahcruld
              therefore be abolished ;
              Vhereaa the Community must nevertheless be able to meet the oommittjiento into vhioh
              it has entered ; whereas it is consequently neoeseary for the appropriations
              corresponding to these commitments and not epent during the financial yoar to be
              maintained in fall to cover these obligations ;
              Whereas borrowing has been reoognf.sed as a means of financing Community activities
              and the provisions of the Financial Regulation oall for modification to take acoount
              of this possibility ;
             Wheras account must bo taken of tfye trends in prioeo ainoo the Finamoial Regulation
             of 25 April 1973 waa drawn up and to modify the waount# referred to' in Articles 62,
             64 , 65 and 103 aooordinglyi
                                  ê                                                         ••
            HI8 Jffiomo KH3 msJUSIGSi                                  . ,
                                         Artiole 1                          '
     The Financial Regulation of 25 April 1973 applioable to the general budget of
  •' the European Communities (73/ 9^/ECSC, EEO, Euratom) shall be amended m follows S
                                                                                       1
     1* The following Artiolea shall be worded as follows *
       .                                  Article 1
      J        1 . She Budget of the Ehropean Communities (hereinafter called
               • Budget *) is the instrument whioh sets out forecasts of, and
               authorises in advance , the expected revenue' and expenditure
|              of the Conmmities for each budget year * For the purpose#
!              of this Financial Regulation, the revenue and expenditure ©f
I              the Conmmities shall comprise :                                     . •
               – the administrative expenditure of the European Coal and
i           '     Steel Community end the oorresponding revenue 5
               – the revenue end expenditure of the Biropeart Economic
                  Community |                                                 .         . .
I        .     – the revenue arid expenditure of th® Raropean Atos&io Energy
                  Community !
               lhe abovementioned expenditure shs,ll comprise that Arising fzvm
               the activities of the institutions *
               The Budget algo sets out foreoasitq of» and authorAaegg
               borrowing: and lending operations * ,
 ---pagebreak---   2 . The appropriations shown in the "budget shall be authorized
  for one finanoial year*
  Ko expenditure may "be incurred or authorised in ezoess of the
  authorized appropriations .
   3 * The appropriations intended to finanoe mult i annual operations
  may inolude commitment authorizations and appropriations for
  payment •
  The commitment authorizations enable the legal obligations vhioh
  have to be contraoted to oover the total oost of operations
  which are to be implemented over several finanoial years to be
   entered into . They represent the upper limit of that expenditure
  the oommitment of whioh has been authorized in order to enable
  the operations in question to be implemented .
  The expression "oommitment authorizations" is used in this Regulation for
   the purpose of applying the financial provisions of the treaties , and in
__particular articles 203 EEC , 177 EAEC and 78 ECSC in addition to the present
   regulation , with the same meaning as the expression "commitment appropriations'!
  used in the EAEC Treaty and, "by way of derogation , for research and investment j
  appropriations , in Title VII of this Regulation .                       j1
  The appropriations for poymont enable expenditure which has *            !Jf
  been comnitted during the current or preceding financial
 yearn to be paid .   They rcprenent the upper limit , of                    !
  expenditure involved in the payment of the conmitments in * *       "      !  ■
  cruer.tion .
  Save 03 otherwise provided in the provisions relating to
  rcorirch and investment appropriations , the operations In .respect
  of vhich a distinction io made between commitment aatho ri sat ions
 and appropriations ; for payment shall be decided            ~
  during the bjd.Tctnry procedure *                        •*
 4 . Without prejudice to the provisionB of the preceding
 paragraph • expenditure nay bo authorized for a period going
 beyond the financial year only in accordance vith the detailed
 rules providod for in the Budget .
 Operating expenditure arising from contraots whioh have
 been concluded in acoordanoe with looal usage for period?
 going beyond the finanoial year is not subject to the
 provisions of the preceding subparagraph . Such expend! tji&xe
 shall be charged to the Budget for the finanoial year ia
 which it is incurred *  *
                               Artide 3
 1 . All estimated revenue and all estimated expenditure
 shall be entered in fall in the budget *
 2*    All revenue and all expenditure shall be entered la
 full in the aooounts *
 ---pagebreak---                                                  5
                                           Article 4
j Tha -total revenue shall "be used to finance the total
  expenditure , subjeot to the provisions of the second paragraph
  of Article 93 *
  In the oase of "budget headings under which appropriations for
  payment and commitment authorizations have been entered , it
  is the amount entered as appropriations for payment which is
  to he used for the purposes of the preceding subparagraph .
                                            Article 5
         Ifotirithstflndlng the nrovtotona of Article 4 « tha - revemo.
     earmarked for a specifio purpose , such as income from
     foundations , subsidies , gifts and bequests , shall not >•
     used for any other purpose .
     The Commission may acoept any donation made to the Communities,
     and in particular foundations , subsidies , gifts and be<juest0«
    The Commission may aooept donations which may involve some
    finanoial charge only subject to prior authorization froa
    the European Parliament and the Council , vhioh shall aot on
   the matter within two months from the date of receipt of the
   request from the Commission* If no objeotion has been p&de
  within this period, the Commission shall talc* a final d^oision in respect                                 !
   of aooeptance *                                                                                     ■     1
                                      JrtlolsJ.                                                ".*         -i
     1 . The financial year shall run from 1 January to 31 . December.
     2 . The revenue of a financial year shall he entered In the                          ' ' "
     accounts for that financial .year on the basis of the
     entitlements established up to and including 31 December. '                                    |
     3 . The following rules nhall govern the utilization of
     appropriations s                                                             ,                  ;
     (a) Under the budget headings where there la a distinction                                     I
           between commitment authorizations 'and' appropriations                  , ;       ^           '
      .    for p'ynent :
          » the connltncnt3 nhall be . entered in the accounto on                     ,
              the basis of the commitments contracted up to                                    • i'
               31 December                   '»      portion of the            ..... ■              ! .
               comraUment authorisat ion whi ch is not utilized            .        ;               '
               by 31 December                         nhall Inpnc , unleaa . .
              t)io Rui.Tot.-iry Authority dccidcn othen.lco ilnri n /T*"
              the budgetary procedure :                   •                                        •
          "" the, payments for a financial year shall be ontercd In                     ■
              the accounts for that year on the bar;is of the
              expenditure in rcnpect of which the authorization                                   ;
             reached the Financial Controller not later than                               •• :•
             31 December , r.nd for T /hich payment v/na effected by                             j
             the accounting officer not later thnn the folloy-in^                           ' '
             15 January . The portion of the appropriat ions foy;
            poynent which ha m not been utilised by 31
                 December j         j but r.'hich corrcnponda to
             CQTir.i tnen ts incurred shall not Inore biit shall be
  •         unod in tho mibsc-oucnt financial year ( o ) "tov;n Y~J a
             the total anount of tho commitments contracted
         . r-ct paid, in thfl preceding financial "yftayYe I.""
 ---pagebreak---                                           - 6 -
    «. Tfco portion of the appropriations for payment which ,
       at 31 December                                exceeds the tot"aT
       ancunt of conmitmenta entered into in tho preceding
       financial vear(s ) ohall lapse .
Q>) Under the budget headings where thoro la no distinction
     between commitment authorizations and appropriations
  . for payment        ( r^n–differentiated appropri ationn )t
    «• the CQTjnitwenta shall be entered in the account s on
        the b.^sis of_the comm itments contracted up to
         31 December                .   Tho portion of the approprlatlona
        which has not been core.-nittcd by           31 December
                            shall lapse ;
       the pnyrrpntg for a financial year nhall be entered
        in the accounts for that year on the banjo of the               • •
        expenditure in respect of vhich the a.ithoriyrrtion
        rcichcd the financial Controller not later than
        31 l.'ccc:nber t rnd for rhi ch payr.cn t v:^.n effected
       by the acc-'untln /; officer not Inter thnn the following              •
        15 January .      The nortj.on of tho appropriations which
       was cer.nit ; cd but not paid by           31 December
                shall r.ot larse but nii.il 1 be ur>»d in tho
       subsequent financial yoar(n ) tovrards tho total
       pric.'ir.t of the crr-.ri truant r, cor.tr.-rtcd but not paid
       in the preceding financial year(3l .
    4 . However , the appropriations for the Outdance Section oV the
     Biropean Agricultural Guidance and Guarantee Hand way be '
    used by way of exception to finance projects for which th <pr
     wcro not initially oommtttod In accordance with                        1
     Regulation 3171 / 75 of :> Docember 1975 .
   5.     The budgetary authority is to "bo informed , in the contest
   of tha quarterly report provided for at Article 31 of this
   Financial Regulation , of the utilization of the appropriations
   referred to at paragraphs 3 and 4 above .
                                      Article 7
   Ttoe appropriations entered in the "budget may be committed
   with effeot from 1 January , once the budget has been
   finally adopted .
   This provision shall not apply to current administrative
   expenditure which , as from 15 November of each financial
   year , may be charged as an expected commitment against the
   appropriations provided for in respeot of the next finanoial
   year . Such commitments shall not , however , exceed one quarter
   of the total corresponding appropriations for the current
   finanoial year . However , euoh commitments shall not apply to
   new expenditure of a kind not yet approved in principle in
   the budget of the current finanoial year.
   The advanoes intended within the meaning of Artioles 107 and 114
   to finance the expenditure of the Guarantee Sootion of the
   European Agricultural Guidanoe and Guarantee Fund and expenditure
   on food aid may be paid from 10 Deoember onwards *
   10J L 315 of 5.12.1975 »
 ---pagebreak---                                                       - 7 -
                                               Article 8
  If the Budget Is not finally adopted at the beginning of the
  flnanolnl y*«r. Artlole 78b of the Treaty oatnbliehing the
  European Coal and Steel Community , Article 204 of the Treaty
  establishing the Biropean Economio Community and Artiole 17o
  of the Troaty establishing the Riropean Atomio Energy Community
  ehall apply to commitments and payments of expenditure of *
  kind already approved in principle in the last budget duly
  adopted *
  Payments may be made monthly in renpeot of any cnapter up t^
  one twelfth of the appropriations in jfespeot of the relevant
  chapter for the preceding financial y«arj this nay not ,
  however, have the effect of placing a1} the disposal of tha
  Commission monthly appropriations in <pccess of one twelfth
  of the Bum provided for in the draft budget or, In the
  absence thereof, in the preliminary draft budget . CoaanitnentS
  nay be entered into up to one quarter of the total
  appropriations in respeot of the relevant chapter for the
  preceding financial year increased by one twelfth for eac3V
  oompleted month ; these commitments may not , however, exceed
  the limit of tho appropriations provided for in the draft
  budget or, in the absenoe thereof, in the preliminary
   draft budget *
    At the request of the Commission , and without projudioe to
    the provisions of the second paragraph , the Counoil mayf
    aoting by a qualified majority , and a« diotated by
    administrative requirements , and after consulting the
    European Parliament authorize the simultaneous expenditure
    of two or more provisional twelfths .
   Decisions concerning several provisional twelfths and
   relating to expenditure other than that necessarily
   resulting from the Treaties or from acts adopted in
   accordance therewith shall be taken pursuant to the
   procedure laid down in Article 78b(2) of the ECSC Treaty,
   Article 204 of the EEC Treaty and the third paragraph of Article 178 of
   the Euratom Treaty , as amended by Articles 4 , 13 and. 21 of the
   Treaty of 22 July 1975 .
   The decisions referred to in . the previous paragraphs shall
    include the requisite measures in respect of resources for
   the purposes of this Article .
    As regards research and investment appropriations t the
    provisions of Article 101 ehall apply*                                   . .
                                                           Article 9
     The rndget and the supplementary or amending budgets , as
     finally adopted , shall be published in the Offioi&l Journal
     of the European Communities , at the                             instance of the President
     of the European Parliament .                                . .
                                                    Article 10
  1.    The bud rat shall be drawn vn in European unite of account
  ( EDA ). The unit of account ahnll be cxprosaad aa the sure of t , io
  following wsounte of the currc'Ticies of ths Kenber States of t'-ia
             '–nr [| III – III –« miim n –Wiiwm ––l » – !■ Wn' ( II –
. Europeaa Corcmanitiesî
 ---pagebreak---                            DM              0.828
                           £ St *.         O . OQ85
                           FF              1.15
                           Lit           109
                           F1              0.286
                           Bfrs            3.66
                           LfTB            0.14
                           Dkr             0.217
                           C Irl           Q. 00759
  2 . The value of the unit of account In a national currency
  shall be equal to the sum of tho cquivalnnta in that currency
  of the amounts of the currencien net out in Paragraph 1 .               It
  shall be determined by the Comminnion on the basis of the
  exchanrc ratc3 recorded each day on the exchan/ro marketn *.
 The dally rates for conversion Into tho various national currenolft
  ahnll ha nvnilnbJ.o rnch day :            thov ohrill bo oublinhod in the"*'' """
 Official Journal of the European Communities .
 3.     Any operationa involving conversion of the European unit '
  of account ( L'DA ) into a national currency Bhall t whore
 appropriate , be effected on the bat:j.3 of the exohanpo rata
 applicable on that day , without prejudice to the special'
 provisions of Article 119 .                                                        '
                                   Artloi* 11
 The European Parliament . the Counoil , the Court of Juat$o*
 and tho Court of Auditors shall , each year before 1 July,
draw up on estimate of their expenditure and their own
 revenues for the following year.
The Eoonomio and Social Committee shall , before 15 June ,
forward to the Counoil an estimate of it* expenditure anfl Its
 revenue for the following year.
These estimates shall be forwarded to the Commission an4»
for information , to the European Parliament and to the              i
Counoil not later than 1 July .
                                  Irtiole 12
1 * The Commission shall
      . prepare a general statement of revamp of the
        Communities an<L
      . consolidate the estl nates referred to 1n Article 11       _
     in the preliminary draft budget which It shall place before
     the Council each year not later than 1 September . It shall .
     at the eftflin tlma . forward the preliminary draft budget to k
     the Riropcan Parliament .
2 . The Commission shall prepare the qonerql Introduction to     .–
the preliminary draft bud/rat , containing in partioular i
(a) financial tables covering the entire bad/ret .
   10J Ko 0 21 of 30.1.1976.
 ---pagebreak---                                      - 9 -
(to) pa regards the Commlasion section *
      - a definition of the policies justifying the requests
          for appropriations ;
      - an explanation of the changes in appropriations
          from one financial year to the next |
      - a detailed statement on tho "borrovrinra and loana policy•
3 . Every other eectlon of the preliminary draft 'budget chall
be preceded by an introduction prepared by the institution
ooncorned .
4 * Tue preliminary draft budget shall be accompanied bjr
working documents containing the following information I
(a) ln respect of 3tafft
      – for each category of staff , a detailed list of
          budgetary posts and numbers of persons in post on
          the date of the submission of the preliminary draft
         budget , indicating their distribution by rrade and
          administrative unit (or principal operational unit toT
          the establishments of tho Joint Reaearoh Centre ) (
      «• vhcre a ohange in the number of persona in post la
          proposed , a statement justifying mich chan /tes t
(b) In resoect of cypcrrHture including rnmmUmpnl              –
      authorizations and appropriations for payment : _
      – a table showing all the cowml tment authorizations
          and the correapondin ^ appropriations for payment for
          the financial year in rruc3tion ;
  (o ) in respect of subsidies to "the bodies set up.^
         pursuant to the Treaties or aots adopted in aooordanoe
         therewith , to the Supply Agency and to the European
         Schools t
         - a forecast of revenue and expenditure prefaoed
            by an explanatory statement drawn up by the
            bodies concerned *
  5 » Furthermore | the Commission shall attaoh to tho preliminary
  draft budget I
 – an analysis of the financial management for the preceding
     financial yearf as envisaged in Artiole 83 , and a balance
     sheet of assets and liabilities of the Communities as at
     31 December of the preceding financial year as envisaged
     at Article 84 » and
 - an opinion on the estimates in respect of the other institutional
     that opinion may contain different estimates , which Bhall be
 c accompanied by a full statement of grounds *
  6 . The Cormlnnlon may , on its own initiative and . If
  appropriate , at the r^gnrGt of the European ParTlnn ent .       '
  the Council , tho Court of Justice and the Court of Audltora t     *
  prcr-"nt - by nr.vm of a letter of nnrmHrnt - proponalo for
  ch.m r-cn to the preliminary draft b-.id.qot necessitated by
  the receipt of new infornr-.tion vhlch vna not available at
  the time the budget v.t.s drr.un up .
 However , suoh a letter of amendment must be put before Parliament
 by the Council at least 15 days before the first reading of th«
 draft budget , save in veiy exceptional circumstances .
 ---pagebreak---                                         - 10 -
     7 . In the event of unavoidable , exceptional and unforeseen
     ciroumstanoes arising , the Commission may submit preliminary
     draft supplementary budgets . Also , particularly to enable
     polioies to be adapted , the Commission may submit preliminary
     draft amending budgets whioh would not alter the total amount
     of the annual budget and to whioh would be attached the
     corresponding neoessary draft regulations . Requests for
     supplementary or amending budgets from the European Parliament ,
     the Counoil , the Court of Justice or the Court of Auditors shall 1)«
     forwarded by the Commission to the Budgetary Authority . The
     Commission may attach a different opinion . These budgets shall
     be submitted , examined , prepared and finally adopted in the same
     form and acoording to the same procedure as for the budget whose
     estimates they are amending. They must be substantiated by
     reference to the latter . The competent authorities shall discuss
     them in the light of their urgenoy . All supplementary budgets
     must , as a general rule , be forwarded to the Counoil by the date
     laid down for the submission of the preliminary draft budget for
     the following financial year .
                                   Artiole 13
1 « lhe Counoil oh all establish the draft "bud gat in aooordanoe
    with the procedure laid down in Artiole 78 of the Treaty
    establishing the European Coal and Steel Con-muni ty ,
  ' Articlo 203 of the Treaty establishing the European Eoonomlo
    Community and Article 177 of the Treaty establishing the
    European Atomio Energy Community .
    The draft Budget shall bo forwarded to the European
    Parliament and placed before it not later than 5 Ootobor.
    The Council shall attach to that draft budget an explanatory
    memorandum defining in particulars
    - the relationship between the .principal objeotivea of the
       Communities and the requests for appropriations )
    - the changes in appropriations oompared with the
        preceding finanoial year )
    - the Council 1 * detailed reasons for departing from . the. preliainary "
       draft budget , if it has done so .        .
      2.   The provisions of paragraph 1 are applicable , mutatis
     mutandis , to draft supplementary and/or amending budgets *
                                 .  Artiole 14                     ' > '     ~ "
      The Budget shall be finally adopted in aocordanoo with
      Artlole 78 of the Treaty establishing the Xhropean Goal
      and Steel Community , Article 203 of the Treaty establishing
      the European Economio Community and Artiole 177 of the             ,   '
      Treaty establishing the European Atomio Ehergy Community.
      Once the Budret has been finally adopted , each Member State
      shall bo hound to place at the Commission 's rilapooal the
      payments due In accordance with the procedure laid down by
      this Finanoial He /nilation#
 ---pagebreak---                                         - 11 -
                                      Article 15
    1 a Hie Budget shall oonsist of
          •» a general statement of the revenue of the                            ..
             Biropem Cornrr.nnltlcr; and                                                «
          ~                 nectlonn subdivided into statements of
             rrvrne and expenditure of the European Parliament ,
             the Council , the Commission , the Court of Juntice
             and the Court of Auditors .                    The revenue and expenditure
             of the Economic and Social Committee shall be entered
             in the section dealing with the Council and presented
             in the form of a statement of revenue and expenditure , .
             subdivided in the same way as the sections of tho
             Budget and subject to the 'same rul^is .
     2 . In each sootion , the Items of revenue and expenditure
     shall be classified according to their type ' or the use to
     which they are assigned under titles , chapters , artioles
     and it ems «
     J. The budgetary nomenclature ohall be decided during the
     budgetary procedure in respect of the apportionment of the
     revenue arid expenditure undor separate titles , chapters
     and articles . i
     4 « Each section of the Budget may inolude a chapter in
     respect of provisional appropriations and a chapter in respoet
     of expenditure not specially provided for * The appropriation*
     entered in these chapters shall bo used only by means of
     transfer in accordance with the procedure laid down in
     Article 21 .
     5 • The following Annexes shall be attached to the Commission
     section ?                                                        '
- the statement of revenue nnd expenditure in respect of
         research and investment activities referred to in Article Q4 &
*        statement of revenue and expe nditu re in respeot of the
        0 f f i cTa!~'Put) l ioat ionb Office of The European Coamunit
         referred to in Article 115(2) »                                       ^
     In addition , tho document showing all the borrowing and
   l ending operations referred to in Artiole 16^3 ) shall be
     annexed to the Budget •                                       .                  '
                                       'Article 1(5                              *
The Budget shall show *
1 » In the general statement of revenue »
      – forecast s of revenue in re spect of the European
         Corrnr.itics for tho finqicinl "yo a r" "i rt "one s iTon""dlvi d c '
         into. . t it.1 en „ Ch nnt cr.~ . . . c rt j c 1 en _ and 1 1 oiqg. |
      «* rovoTje for the procrcHrtT financial vear di vi$<<£ into
         ti ti es » chr»rjt<-r:i , artici cr, ,-md l tema 2
     "" flEnropfis.lc_ .connent 3 on snchoubd fvi ri on *
 ---pagebreak---  In the section referring to each institution !
  (a) as re,Tarda the statrmcnt of revenue :                           •
      – the forecast of rcvonuo for each institution for t|ie
          financial year in question , divided into titles ,
          chapters , articles and items , following a decimal
          classification systcn ;
      – the revenue entered in the Budget for the preceding
          financial year and the revenue established for the
          last financial year for which accounts have been
          closed , using the same decimal classification :
      – appropriate comments for each yevenue heading.
 (b) aa regard 3 the ntatement of expenditure t
     *" conccrni ng the budget headings for which no distinction Is made
        between commitment authorizations' and appropriations :1 for
        payment t
         • the budget appropriations made available for the
           financial year in question divided into titles ,
           chapters , articles and. items , following a decimal
           classification system }
        • the budget appropriations made available for the
          preceding financial year and the actual expenditure
           for the last financial year for Which accounts have
          been closed , using the same decimal classification ;             »
      ** concerning the budget headings which inolude                         '
          commitment authorizations and appropriations
; .       for payment                                        "      '     .
          « th£ appropriations for payment made available for
            the financial year in Question and the preceding                      f
            financial year and the actual expendituro for the                 •   <
            Irnt financial year for which tho accounts have
            been closed , using the same decimal classification
            system :
                                                                  »
           •In the remarks column :
             ( a.) the commitment authorizations for
                   tho financial year in cruestion and for the
                   previous financial year , and
             (b ) the cor.nitnentn entered 'into during the 'last financial year for
                   which the acpfrunta have      olgseflt &q well as ft aohmtoln of
                   due dates for payments'.
       – appropriate comments on each subdivision ; suoh
          comments may be binding , in which oase this fact
          shall be specifically mentioned :
                                                                                6
  (o) as regardrs total staff :
       - in an annex to the Budgot , a list of posts fixing
          the number of posts for eaoh grade in each oatcgory
          and in each service ;
       - annexed to the Commission seotion , a list of posts in
          respect of officials , establishment staff of the
          Joint Research Centre and temporary staff occupying
          permanent posts , classified by categories and grades , •
          whose employment is authorized within the limits
          of the budget appropriations *
 ---pagebreak---                                      - 13 -
       Howovor , ao re^arda eoiontifio ojiu technical staff f
       tho classification may be based on different groups
       of grades , in accordanco vith the conditions laid
       down in each "budget . The list of poets must montion
       the number of highly-qualified teohnical or aoientifio
       pereonnel vho are accorded special, advantages under
       tho Staff Regulations applicable to these officials *
    3be list of posts shall constitute an absolute limit
    for each institution ; no appointment may be made in
    exoes? of the licit set ;
   as regards borrowing and lending operations *
   ( a) in the Commission section !
         – the budgetary headings corresponding to the categories
           of operation, which are generally accorded a token ent;py r
         – remarks which show in particular the legal basin , whan
            appropriate     the annual volume of operations envisaged and
            the financial guarantee given by the Cossaiosion in respect
            of these operations *
   (b) annexed to the Commission section *
         • current capital operations and debt aanageaent,
         – for information , the capital operations and. debt
             ■anaaeeent for the finanoial year in question.
                                   Artide 17
The Budget shall be implemented xn 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 oolleoted
and issue recovery orders and payment orders . The operations
of collection or payment shall be carried out by the aooounting
officer . Bo financial controller or aooounting offioer can
exercise the funotions of an authorizing offioer*
Kb revenue shall be oolleoted end no expenditure effeoted
unless oredited to or charged against an artiole in the
budget •
 ---pagebreak---                                                 - 14 -
    I
    i
                                        Article 18
          Th * Coromi*Bion shall implement tha Budget on its own
          reoponsibility in aooordanoe with the provisions of thia
          Financial Regulation and within the limits of tho appropriation*
          allotted .
  '    The requisite powers for the implementation of the Beotions
  •   'of the Budget relating to the European Parliament , the Counoil,
  j    the Court of Justice and the Court of Auditors are conferred .
  i   i>y the Commission upon each of these institutions .
  i    ■
          With the exception of the oases provided for in Artioles 43 » 52
  '       and 55 , the Commission and the other institutions may delegate
          powers in accordance with the conditions laid dovn by their ^
          internal rules of procedure and within the limits whioh they ^
  |      .themselves lay down in the aot of delegation..                    -   * :
                Delegatees may' &ot only within the limits of tho powers
          expressly conferred upon them, lhe acts of delegation
      ' shall be communicated to all the parties oonoemed in                  .
          accordance with the measures of implementation envisaged in
          Artiole 118 .
          Save as otherwise provided, the Court of Auditors and the
          Economic and Sooial Committee shall , for the purposes of
          this Financial Regulation, be treated            institutions
          of the Communities *
                                        Artide 21
         . 1 . The appropriations shall be classified by Chapter and
            Article .                         ,
            2 . Each institution may adjust the appropriations for pavmfot
            in its section of the Budget to . meet its
            requirements . It shall inform the Commission and the
            Bidrtptary Authority accordingly .
          3(a) The European Parliament , the Council , the Court , of
                 Justice and the Court of Auditors may make transfers
i                between chr.pt era of a Title in their sections of the
!                Biri /rnt and within ench Ch.?nter .
j                 Tr.ir.sfor? by the Kcononic and Social Committee shall
t                be decided by the Council .      Tho Commission and the
I                Budgetary Authority shall be informed of theso transfers *
I            (b) The Commission may make transfers between chapters of
!                 Titles relating to staff nnd operating expend! turcw aridm
!                 in any Title , within each Chapter .
           ■ 4*    Other transfers shall be eubjeot to the following
              procédure *
              Rerpicntw for trensfere shall be eerit to the CommlBBlort and
              forwarded by tho latter to tW Kuropoan I'arllamant and the
              Council .
 ---pagebreak---                                                           - 15 -
                   Trannfcrn relating 'to expenditure necennarlly renulting
                   from the TTrnatias or from act3 adopted in accordance therewith
                   nhall Vo downed to bf approved if the Council , acting by
                   c\ii 1 1 f i rd r,.ijor i ty and a fter c onrml tinr; the iviropean
                   Parlia-n?nt . has not taken a dociaion to tho contrary within
            *      six v.-ppks from the date on vihlch the Council received the
:                  request for a transfer .
|                  Transfers relating to expenditure not necenaarlly resulting
•                  from the Treaties or from act a adopted in accordance therewith
!                  'nhall be HromTiT to bo a pproved i f tiio Kuropoan Parliament ,
|                  aftor connul tin;* the Council , hart nob taken a dccinlon to the
;                  contrary within eix wcekn from the date on which the
[                  Europenn Parlianenl rcccivea the r^qijcot .
                   Trans fern relating to expenditure necessarily resulting from
                   the .Treaties or from acts adopted in accordance therewith and
                   other crffnditure shall be deemed to bo approvad if neither
  j                 the Council nor the European Parliament has takon a decision
                    to the contrary within nix v;cokn from the date on which the
                    ■two Inn t ltiit ion * raoaivod tho rorruout .
  i
  I           '
  •'                If , In the case provided for In the preceding oubpararraph .
  |                  the IMropenn Parliament and tho Council reduce the transfer        •' 1
   J               by different amounts the lower amount accepted by one of the
   |               *WQ institutions shall be deemod to be approved.
                   5*     Every proposal for an adjustaant to the appropriations
                   for payment or for a transfer within a Chapter or between
                   Chapters shall be Bubject to the approval of the Financial
                „ Controller , who shall attest that the appropriations are
     |             available.
     j             6* Unless otherwise deoidod in due and proper form under
      I            the budgetary procedure , appropriations can be transferred
       :           only to Articles in the Budget for which the Budget has
       '.          authorized appropriations or carries a 'token entry *.
       I
        j          7 * This Artiole shall apply to the appropriations corresponding to revenue
        i        . earmarked for a specific purpose under Article 5 , only as
         i          long as the revenue is not used for any other purpose *
                                                  Artide 22
         j         ' • Notwithstanding Artloleg 3 and 23 . the following
          !       deductions may be made from all bills , lnvoioes or
          i       statements , which shall then be passed for payment of the
          ;       net amount t         ■
                   (a) fines imposed on a party to a contraotf
                   (b) adjustments of amounts paid in error whioh oan be
                           achieved l$r means of deduction beforehand against a
                           payment of the same kind of expenditure out of
                           appropriations under the Chapter, Article and financial'/ *•
                          year in respoot of vhioh the excess payment yae m&do|
 ---pagebreak---                                            - 16 -
(c) gjiti the value     of apparatus and ©quipmant for scientific
                 technical purpoooo , and the value of vohioloo ,
          errulpmont and installations taken in par£ exohong©
          in accordance with commercial uaag® upon purch&ao of
          new apparatus , vehicles ^ etruipraent arid i^iatallationa
          of the same kind .
Disoounts , refunds and rebates on ixivoioeg and bill® flhall
not be recorded as separate revenue.
 2 . Wo twlth standing- Artlolo 3 . the following: euao may '
r »–u        i
  (a) revenue arising from the refund of amounts paid in
•          error against budget appropriations ;
  (b)          ■ proceeds from the supply of goods and norvioea
        . to other institutions or bodies , including refunds
        • by ouch institutions or bodies of ®isaipn allowances
            paid ,     on their behalff
  ( o ) inBuranoe peignent a reoeived ;
  (dj            revenue fron the sale of publications and filaoj        k
  (js) refunds of taxes – incorporated in the pr ic<* of the
          products or eervicea provided to the Cormnunitioa –
           effected by Member States purauar.t to tha provisions
          of the Protocol on the Privileges and Immunities of
          the European Cosiraunitiec ;
  (£)            revenue from the supply of gooda and sorvioes
          againnt payment ;
  (^)             proceeds from the ctlo of vehicles , equipment arsA
           installations and also apparatus and equipment for
          technical and ecier.tifio purposes , disposed of when
          reolacedt
  Such Guna must be ro-uocd before the end of the finar.oial
year following that in whioh tho revenue vraa oolleoted .
  The accounting systea shall inolude Buaponne accounts in order
  to record the re--use of Buna in respect of revenue and
  of expenditure .
  3 . NothwithBtAnding Artiolos 3 and 23 , repayments made "by
       •third parties may be deducted from expenditure in
  cases where the Institution hao effected a r/ avrr.cnt
  for which It is le^lly liable to ita creditors but wfiere ell
  or a part thoreof has been paid on behalf of those third
  parties .
  4.     Nothwithotand ing Ar t i c 1 8 3 , ad juatmenta roay bo made in
  respect of losses and griina made on exchange rates
  v.'hon transferring funds and also on debtor and creditor
  interest rates relating to financial transactions , only th®
  balance baing ehown ao revenue or oxpenditurp .
  5 . In tho oases referred to in pira^-apha l(o ) e::i 2{b)» (d ) f
  (*<) and ( ff) 9 r&-uo© and deduoiica are poesiH© ©suy if proviol«r
  i3 ua4,« th.ireuros' ia tha remarks oolusai in_tbo Budget . •
 ---pagebreak---                                     - 17 -
                                 Artlol* 23
   1.     Every measure ouch as to give rioe to or to modify a
  debt due to the Communities must bo preceded by a proposal
  from the competent authorizing officer. Such proposals
   shall be forwarded to the Financial Controller of the
  institution for his approval . They shall mention , in
  particular , the type of revenue , "the estimated amount thereof
   and the budget item to which it is to be booked end also the name and
  description of the debtor. 'Ttio purpose of the approval of
   the Financial Controller shall be to establish thati
   (a) the revenue is booked to the oorreot budget lteaj
   (b) the proposal is in order and, conforms to the relevant
         provisions , in particular , of the Budgot and of the
         regulations and alBo of all acts made in implementation
         of the Treaties and of the Regulations , and to the
         principles of sound finanoial management .
   Forward proposals may be made in respect of
   certain items of current revenue '
   in accordance with the meacureo of implenjentatlon envisage^
   in Article 118 .
   Hie Financial Controller may withhold his approval .         Ihe
   superior authority of the institution may , by a deoision
   stating the full reasons therefqr , and on its sole
   responsibility , overrule this refusal . This decision shall "b«
   final and binding; it shall be comrounioated for information
   to the Financial Controller . Ihe superior authority of each
• institution shall guarterly           infero the Court of Auditors
   of all such decisions,.
     2.     The . oompottent authorising offioer shall draw up . in
     respect of every debt entabllohed , a recovery order
 • which shall bn. rent with mipportinft document !, to tho
     Financial Controller for hlo prior approval .       3uch
     recovery , orders chall , after t'no.y have received the
    approval of the Financial Controller , be registered
     accounting officer in accordance with the measures of
     implementation envirar;cd in Article 118 .
    The purpose of the approval shall be to establish that !
     (a ) the revenue is booked t" the correct budget item!
     (b ) the order Is in order and conforms to the relevant
           provisionci
     (o )  the supporting documents are in order ;                    '
     (d )  tho debtor is correctly described ;
     (e )  the due date is Indicated ;
     (f)   the order conforms to sound finanoial management !
     (g)   tho amount and currency of the sum to be recovered are
           correct .
    If approval Is withheld , the second subparagraph of            •
  ■ DaraKraph 1 of thin Article shall apply#
 ---pagebreak---                                    - 18 -
                            Artiole 24
   1*    The accounting officer shall assume responsibility
   for the reoovery orders duly drawn up .
  He shall exercise all due diligenoe to ensure that the
   resources due to the Communities are recovered at the due            - r      •
  dates indicated in the recovery orders , and he shall see        • •
   to it that the rights of the Communities are safeguarded *         •
  The accounting officer shall inform the "authorising offioer
  and the Financial Controller of any revenue not recovered
  within the time-limits laid down .
   2.   If the authorizing offioer valves the riffht to recover an
   established debt , he shall send beforehand a proposal for             • v '■
  cancellation to the Financial Controller for      his approval and '
  to the accounting officer for information .
 The purpose of the approval of the Financial Controller ohall
  be to establish that the vrai.vcr 1B in order and conforms with
  the principles of sound f ir.trcif.l nnnircmont .  Tho propoaal
  concerned shall bo registered by the accounting officer .
  If approval la withheld , the superior authority of the
  Institution ngv , bv a decinlon ntntln/r tho full reaoons therefor ,
  and on its sole responsibility , override, this refusal .      This""deoi8ion
 'shall be tinal and binding ; it shall bo cornrnuiicatcd for
  infomati on to tho Financial Controller .    The nunerlor
  authority of each Institution shall fluarteyl.y      inform the
  Court of Auditors of all such decisions .
 ■          M         1   1                mm
 3.    When the Financial Controller finds that A document
  establishing a debt has not been drawn up, fir that a suq due has              '
 not been recovered , he shall inform the institution thoreof*
 4* The measures of Implementation In reapept of this Artiol*
,shall 1m laid down in Moortancnf with thttBrovAalpna of
                              Artiole 26
  1 . Estimates of the own resources and , if appropriate , of
 tho contributions referred to in Artlclo 4(2 ) and ( 3 ) of the
 De cision of 21 April 1970 to be paid by each Member State
  ehall bo entered in the budget , expresoed in units of aooount
 as defined in Article 10 .      They shall be made available and
   paid over' in accordance with Title II of Counoil Regulation
  ( EEC , Euratom , ECSC) No 2/M of 2 January 1971 implementing .
  the Decision of 21 April 19701 on the replacement of financial
  contributions from Member States by the Communities * own g
  resources , as last amended by Regulation •••••••••••••••«• • ,
  2.     This provision takes aocount of Artiole 131 of the Aot
  of Accession in respect of the new Member States .
 10J Ko L 3tf 5.1.1971 , p. 1 .
    Regulation currently being drawn up to oasnd Regulation "So 2/j\m
 ---pagebreak---                                                         - 19 -
              2.    Artioles 27 and 28 are deleted .
              3 . She following Artioles shall "be worded as follows )
                                                        Article 29
            The balance from each financial year ,                        calculated In
I           accordance with Article 24 of Herniation ( EEC , Euratom .
             ECoC ) I'o 2/71 as amondcd , shall be entered as revenue "
             in the cine of a snrplua or expenditure in the case
             of a deficit in the budget of the second subsequent
 !           financial year .
i           "
Γ
1■          Howavor , if the oitnation requires , a decision may be
i           taken to previously enter all or part of this balance in
!           a supplementary budget for the financial year immediatery
            following the financial year in Question .                                    ,l
'     ■ .                                                                                 1
!
I                                                         Artiole 30
i             1.      The contributions provided for in Artiole 4(6 ) of th«
!            Decision of 21 April 1970 Bhall be paid over                         as follovss    '
 I          «• seven–twelfths of tho amount shown in the budget not '
 !               later than 31 January ;
            – the regaining five-twelfths not later than 15 July#
 | :         2.       Any contribution or additional payment due to the
 I '         Budget from the I?orr.bcr States must be entered in the
            accoujit(c ) of the Commission within thirty days from the
            dato on which funds arc called for .                                           !  .
             3»       Those various payments shall be entered in the account
 ,          provided for in Article 7(1 ) of Reflation No 2 /71 and ''shall,
  i •     ' be subject to the proviBiona of Article 9(2 ) of this I'                            .
            Régulation .                                                                   1
                                                    Artiole 31
             The Cotnmiseion shall , four times a year, present the
             Uzropean Parliament and the Council with a report on the
             Communities' financial situation, inoluding both receipts
             and expenditure .
             There shall be attached to these reports a comprehensive
             statement on the sums maintained from previous years , as
            well as on any changes brought about by supplementary or
            amending budgets .
                                                        Artiole 32
            The payment a of own resources provided for in - Articles 26
            and 30 shall oe effected in national currency and converted
            into and entered in the accounts in units of account .
            The contributions referred to in Articles 26 and 30 shall tie
            expressed in units of account ;                        their payment shall be
            s 2_i o o t •" d in" n jil i ort'i i" "ci< rr0 n c v 1 '
 ---pagebreak---                              20
                              Artide 33
  The Commission shall , once a cruarter , send each Menibor State
  a statement indicating tho transfers effected in that Member
  Stato 's national currency into another currency and vice versa*
 4.   Articles 34 to 39 are deleted .
                     9
 5# The following Articles shall be worded as follows t
                             Artiole 40
 1.     All measures whioh may give yi?® to expenditure
 chargeable to the Budget must be preceded by a proposal for
 commitment of expenditure from the relevant authorizing
 officer.     A provisional commitment may be entered into In
 respect of current expenditure .
  2.   Without prejudice to the provisions of Article 107 »
       the decisions taken by the Commission to grant
financial aid from tho various funds or similar operations
shall constitute commitments of expenditure .
3*     The procedure for implementing the provisions of
paragraphs 1 and 2 above shall be laid down as provided for
in ArtJ.ole 118 .    This procedure shall ensure that an exaot
account is kept of commitments and authorisations in terms
of the actual needs .
                             Artiole 41
  In each institution proposals for commitments , aocompanled *
  by the supporting documents , shall be transmitted to the       !
  Financial Controller and to the, accounting officer !     •       • r;
  they shall show , in particular , the purpose of the expenditure
  the estimated amount involved , indicating the currency wheys .
  possible , the budget item to which it is to be charged and
  also the name and description of the creditor ; they shall \>9
  registered after approval by the Financial Controller , as
  provided for in tho measures of implementation envisaged in
  Artiole 118 .   '                               *            'ι
                                                                       ,
                             Artiole 42
  The purpose of the approval of proposals for commitments of
  axpendure given by the Finanoial Controller shall be to
  establish thatt
                                              *       •
                        «                                                •
  (a) the expenditure has been charged to the oorrsot item in
     . the budget }
  (b) the appropriations are available ;
  (o) the expenditure is in order and oonforms to the relevant
       provisions , in particular of the Ladget and the               !
       Regulations , and of *1^ aots made in implementation oj? •'
        the Treaties and of'th* Regulations ;
 ---pagebreak---                                                  - 21 -
           (d ) -the principles of Bound finanoial management have been
                   applied .
             The measures of implementation of these provisions shrll hp
             determined in accordance with Article 118*
                                   '         Article 43
             The Financial Controller may withhold his approval .            If h*>
             withholds his approval he shall furnish a written statement ,
             stating the full reasons therefor.           The authorizing officer
    , r „ shall be notified accordingly . ...
             If approval is withheld and the authorizing officer maintain*
    '        his proposal , this refusal shall be referred for a decision
             to the superior authority of the competent institution aaMng
'            those listed in the first two paragraphs of Article 18 .
!            Except where the availability of the appropriations is in ' -
!            doubt , the said superior authority may , by a decision
              stating the full reasons therefor , and on its sole
             responsibility , overrule such a refusal#           This decision
             shall be final and binding ; it shall be communicated for
  v          information to the Finanoial Controller*           The superior
             authority     of each institution shall periodically, infora thp
             Court of Auditors of all auoh daoisiona *
                                      ,      Artiole 44
                     Clearanoe of expenditure is the act        by which the authorizing
            officer shall *
            – verify the existenoe of the creditor 's claim }
            ■» determine or verify the existence and the amount of tha jbuxb due ;
                 "and | .
            •- verify the conditions under which payment falls due .
                                              Article 45   •
             1 . Clearance of any expenditure shall be subject to the submission of
           . r . supporting documents Bhowing the creditor 's claim and the service
                   rendered or the existence of a document justifying payment .        The
                   measures of implementation envisaged in Article 118 shall lay down
                   the nature and the contents of the supporting documents to be
                   enclosed with the payment order .
             2m Supporting docnrr.cnta save those in respect of transactions not
                   fi:vllv cloroi . pert-vininr to the accounts and the drav.inn-up of
                   the pvp ni:c ,: nd oxr.nnditnrc account end the balance r. hcct shall be
                   kort for :i period of fivp yoarr. folloinnr the .'Tr.-ntinr of the     T
      ■■'J       : di.T^h     . rofcrr<vl to in Article Q ?. in rer.pect, of implementation
                   of the P'iri.-ot .
             3 * The authorizing officer empowered to 'olear * expenditure shall
                   personally check the supporting documents or shall , on hia own
                   responsibility! pertain that this has teeen do
 ---pagebreak---                                     22 -
                               Article 47 .
Authorization is the'aot whereby the authorizing' officer ,        *    /
"by the iosue of a payment ordor , instruots the accounting offioer tQ
pay an item of expenditure which he has 'cleared . -*• .
                               Artide 48
 Bie payment order shall states
 - the financial year against which the payment sjjxall be
    charged ;                                                       . ; ' .
 - the Budget Artiole and any other subdivision "tyat may
    apply ?                                                     •"
 - the amount to be paid (in figures and words) avowing
    the currency}
 - the name and address of the payeet
                                                            •                 <
 - the purpooe of the expenditure }
 - and the mothod of payment , wherever possible *
                                                                              i
 Tho payment order shall be dated and signed by tlj>e
 authorizing officer *
                              Article 49
 Tho payment order shall be accompanied by the original
 supporting documents , as determined by the measures of             *'      !
 implementation envisaged in Artiole 118 }      those ^.ocumonts             '
 shall be oertified in respect of. – or accompanied by a                    \'
 certificate confirming - the correctness of the ^mounts to                 !
 bo paid , tho rocoipt of the supplies and the perf'ormanoe
 of tho service and , if appropriate , the entry of the goods
 in the inventories referred to in Artiole 67 *
 It shall show the numbers of the relevant
 approvals of commitment *       Copies of supporting documents ,
 certified as true copies by the authorizing officer , may ,
 in some oases , be aooepted in plaoe of the origiqals *
                              Artide 50                                   '     •
 For payments by instalment , the first payment order shall
 be accompanied by documents establishing the creditor 's
  claim to paymont of tho instalment in question *       Subsequent
 payment orders shall refer to tho supporting documents
 already furnished , and repeat the referenoo number of tho
 first payment order *
 Tho authorizing officer may grant advances to personnel if
  the Staff Regulations or the provisions laid down by
 regulation specifically provide therefor *
 The authorizing officer may pyant advances to cover
 di nburscmcnts to bo effected by an official or other member
 of staff on bohalf of hin institution .      Tho measures of
  implonfnt.ition of thin provitiion ghall be determined in ■               ,
 acc.orda.nco with Article . 118 *      '
 Apart from the imprest accounts referred to in Artiole 37 »,           .
 no advance may be granted unless it has been approved
 beforehand by the Finanoit^ Controller*
 ---pagebreak---                                  - 23 -
                                Article 51
payment orders shall be sent for prior approval to the
Financial Controller#
This prior approval Bhall confirm that *
(a) the payment order was properly issued|
     the garment order agrees with the commitment Oi
V expenditure and that the amount thereof is correotj
 (o) the expenditure is charged to the correot itea of
     the Budget ;
 (d) the appropriations are available!
 {e) the supporting: documents are in order|
 (f) the payee ia oorreotly described.
                                 Artide 52
  Should approval be refused, Article 43 ehall apply.
                                 Article 53
  After approval* the original of the payment order , together
 Kith all supporting dooumontp, shall be forwarded to tho
  accounting offioer#
                                  Artide 62
      ' In each institution, before the authorizing offiopr take®
            a decision, contracts involving amounts exoeeding
             1 «i 000 units of account shall be submitted for tap .
       ' opinion of an Adviao^ Committee on Procurements and Contsacta .
        . whose rules' of prooedure shal}. bo laid down in the
            measures of implementation envisaged in Artiolo
                              Article 64
         Ety- way of guarantee of the performance of the oontr^cts , it
         may be recjuired of the suppliers or oontraotors , by a olaus®
         included among the warranty olauses , that they make a
         preliminary deposit under conditions to be laid dowji in tba
         measures of Implementation envisaged in Artiolo 118»
         The amount of the deposit shall be fixed t
        - according to thq usual trad® terms of contract a f,pr
             supplies ;
        – according to th« special conditions governing building
             contracts#
 ---pagebreak---                             - 24 -
  For building works involving an amount exceeding 20p OOP
  units of account , a deposit shall be obligatory* A
  ■ eourity may be retained until final aooeptanco of rtelives?*
  Where a contraot has not been carried out or oompletion
   has been late f the institution shall ensure that it is
  adequately compensated in respect of all damages , interest
  and costs by the deduction of the amount from the d^positf
  vhother this has been lodgod direotly by the avnpli|pr or
  oontraotor , or lay a third party*
                            Artiole 65
   Contracts may be made against invoice or bill of eosts only
   where tho expected value of the goods and services suppliod
   does not exceed 250 units of aqcount .          This limit shall be
   increased to 600 units of account for expenditure to be
   entered into outside the provisional places of work of tho
  institution .
                            Artiole 71
   The accounts shall be kept _in units of «nnmm+ w the double
   sho^all       ' °n and
   show all revenue    ihA haaiB   °f thefor
                             expenditure   calendar   ^ar. year.
                                                the finanoial     They »h*lX
   They shall be authenticated by ' supporting doouments.
   The revenue and expenditure acoount and tho balanoo sheet • -
   Shall be drawn up in units of aooount.
                           Artiole 72
  Entries relating to the budget acoounts and to commitments
. and recovery orders aocounts shall be made on the
  basis of an accounting syst«« comprising a nomenclature of
  budgetary items which makes a olear distinotion between tho
  balance sheet aocounts and the acoounts of budgetary
  expenditure and revenue *
  These entries shall make it possible to dr^w up a general
  monthly balance , and a statement ty Chapter and Artiolo v
  of budgetary revenue and expenditure , whioh shall bo
  forwarded to the Financial Controller .
                           Artiole 73
                           ces referred to in Artlcl^iQ7 and 114 . ony
 ^rn!eJ -° *h"chali than berR„W    idvnnoV            ^^
                             enterod in a suspense account and T<
                                                                           ^
  follows the payment teStofdurin£  the finanoial
                              this advance *         yoar which
            ■ '::?! rnrorrcd tQ               *>■« third oub-narA^,^
              J>0 ..hall boof aottled
            compietion                 withinf™.six «««irath as'
                               tno tiroWt                    „. a      rftl nla
                                                                            mU
 ---pagebreak---                             Artiolo 75
      The acoounts shall bo dosed at the end of the fijp&nci&l
      year to enable a balance sheet of the Communities and the
      revenue and expenditure account referred to in Title VI to
      be drawn up* The revenue and expenditure aooount shall b«
      submitted to the Finanoial Controller .
                                  Artiole 76
 Authorizing offioers who, when establishing entitlements to be
 recovered or issuing recovery orders , entering into a commitment
 of expenditure or signing a payment order do so without complying
 with this Financial Regulation and the rules for its implementation
 render themselves liable to disciplinary action and , iK^ere
 appropriate , may TJO required to make restitution#       came shall
 apply if they omit to draw up a document establishing a 'debt or if
they neglect to issue recovery ord *frq.or are , without
justification , late in issuing them*
                             Article 81
The Commission shall draw up , not later than 1 June of the
following year, a revenue and expenditure aocount for the
Communities , whioh shall include the following tables broken
down in aooordance with the budget nomenclature *
1 * A table of revenue including *
    - estimated revenue for the finanoial year,
    - amendments to the revenue estimates as a result
      of supplementary or amending budgets ,
    - revenue collected during the financial year,
    - entitlements still to be oollected from the
      preceding finanoial year ,
    - entitlements established in the oourse of the
      financial year,
    - amounts still to be colleoted at the end of the
      finanoial year }
2 * Tables showing the budgetary pattern for the finanoial year
    distinguishing between appropriations entered under items ,
    artioles , chapters and titles of the budget and commitment
    authorizations , and indioatingt
    - the initial entries ,
    - any amendments introduced by means of supplementary or
      amending budgets ,
    - any amendments to appropriations introduced by means of transfer
    - the appropriations maintained under Artiole 6(3 ) »
    - the final figures for appropriations for the finanoial year ;
 ---pagebreak---                                      - 26 -
3 . Tables showing the utilization of trie figures entered as
at paragraph 2 above I appropriations maintained and cancellations
shall also "be indioated .
A statement shall be annexed to these table3 , where appropriate ,
showing the revenue , expenditure and balances for the re-use
operations referred to in Article 22(2 ).
4 . Tables showing the use of the authorizations and appropriations
maintained from preceding financial years , indicating a detailed
breakdown of the figures into commitments , payments made , unused
appropriations being maintained and cancellations .
       Annexed to the revenue and expenditure account shall "bo
a document showing capital operations and debt icane-geaent ,
indicating :
 - a)
     ( a)   "the total amount of loans approved ;
     (b )   the total arc. our. t of the repayments          on 'i'-uvxm
            contracted and of the charges on euoh ^ orrovirigej
 M» t )
     ( a)    the amount of "borrowings contracted }
     (o)    the total exaount of repayments           capital
             of interest made on loans grafted .
                          Articles 82
  Each Inntitution nhall , not later than 1 April , forward to
   the Cotrcnieolon the Information roquirod Tor drawing up th©
   revenue and expenditure *cco>mt and th « balance shoot , plus
   a corAributVon to tho nn.ilyo.t a o f tho fin or.ciBl
   referred to in Article 63 .
                          Àrtici * 83   -
    Thia account shall "be preceded by en analyaia of tho
    financial oana^cnent in reopect of tho year in qusotion .
    It Dhall cover all revenue and orponditura transactions
    relating to the procoding financial year for each institution
    It ehall ba submitted In tho some form and following tho
    aame subdivioionei aa the Budget .
                          Art ici a 64
    The CorasiBolon chell draw up , within tho tiras-lisait provided
    for in Article 81 , a balance Bheot of assets and liabilities
    of the Codounitiea as at 31 December of tho preceding
    financial year .      A etotercent , showing the movements &TA ■
    balances of the tcounta , drawn up on tho c oise data r ■ ah&il Va
    fctttciicd tll«y«tO %
 ---pagebreak---                                    - 27 -
                                  Section II
                         Auditing of the aooounts
             Provisions relating to the Court of Auditors
                                  Article 85
  The Commission shall forward the revenue and expenditure acoount ,
  the finanoial analysis and the balance sheet to the European
  Parliament , the Council and the Court of Auditors by 1 June at
 the latest *
 6 . Insertion of a new Artiole 85a. worded as follows 1
                                Artide 85a
 .nfhere , for the performance of certain tasks or certain audits
 the members of the Court of Auditors Beek assistance from staff
of the Court , the tasks delegated to these officials must be
 specifically laid down and limited to the time necessary for
their completion. The Court itself or one of its members
shall notify these taskB to the authorities in whose
organization the person delegated is to cariy out his work*
• * Tho following Articles shall ID © worded as follows t
                               Artiole 86
        Each institution ehnil forward to the Court of Auditora
                                    at th0 lateat withi« «>• month
        which follows the end of the quarter, and , in the car.q of
                   qUa'I'ter« ^ th0 latent within th « nmn-Kh whU*[ '
        fsUfiyg-the close of, the finaj^nl_ycart the documents
        supporting the accounts , in particular the documents and
        IZll tes pe8Pect of               correct application of the
        pr isions which govern the implementation of the Budget
        and relating to commitments and payments , and to the
                                             of revenue , subject to the
        application of Article 14 of Council Regulation (EEC,
       ?«£+<? +*
                            y?1 "J f ArticlQ 87 of this Finanoial
                            Court of Auriitr,™ may question each
       institution on the subject of the said supporting docuaents.
      To this end r the officials whoso operations ars checked by
            Court cf Auditors shall in particulars'
 ---pagebreak---                                         - 28-
                                   Artiol* 67
    on records and , if „eCos3arv                 °r *u<nto™ "ball b« based
   purpose shall be to           ^h            T/" th°
   received and all expe„ditu1 ^hint^read11irru^hia8^rr'
   Banner having regard to the provisions of tit *                   ?? proper
   B»4Set, th. Financial R.(ula?lon, .if ItLl " *"'- ,h*
   pursuant to th. Treatl... <md tt,Jt"h. financial
   haa been aound.
                                                      f!                   *•*•»
                                                                   management
  For the performance of its task
  be  entitled to
   we en^ixiea   to cónsul
                     consultt , in ♦th.
                                     y»-* '        –     *. °f
                                                             – /Uf,Horl «hall
  Article fia
    rticle 89 , «all
                  11 *
                      documenta*           maruier providcd for
                                   and infórmate
  financial
  its         management
       inspection  ; it has of the
                                 thede^^^tooAoHr^
                                     nnut,^ ♦        » bodies subject to
  official responsible for a mv«m ° m                     ®n<iuirie« of any
  and to use any of the auditing nP! j ** exp€n<***ur* operation,
 departments    ol ^encie" g Pr°C0dur*8 -PPropriat. \0 thoi.
 Jhe   Court of Auditor., in 0rder t<) ob
 information for the performance of th« * v J "•ce^aiy
 by the Treaties and ?he metres t2„                          -?tnWt,d *• "
 nay be present , at its request , durin/r th® « "ff* th'Pm,
 out by the Commission in imn1o.L«+ ♦?                 I operations (parri*d
 of Regulation (EEC ) Wo 729/70 and Ar-tfrti Articles 8 (>nd 9
 ' °                  «iratom , ECSC ) »o 2/71            *•*.*        '
ssÄffi.?* ,h*
                               Artici» 88
The Court of Audits ehall oneure tfa t
cash on deposit or in hand             „i.   ,  .      * oowri»W8 ana
* th. d.po.1,^.. „
                            Ssi        9ffioiai
                            Court "«y oarT7 ©Ut suah cheakq
                                                                 of ,;6h
                            Article 89
 The Commission and the other institutions shall afford th*
 Court of Auditors all the facilities and give it all the
 information which the Court may consider neceBsai7 for the
 performance of its task , and shall in particular afford all
 the information obtained as a result of the cheoks Vthich they
 have carried out , as required by the rules laid down by th *
 Community , within the departments responsible for the
 monapement of the Communities' finances and for effecting
 expenditure on their behalf .           In particular , they (;hall
 place at the dispooal of the Court of Auditors all |) ocument* "
 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 , all lists of posts in the departments , which
 the Court of Auditors ma.v consider necessaiy - for auditing
 th* revenue and expenditure aooount on th* b«i* o| reoord*
 or on th* spot *                                                  :
 ---pagebreak---                              - 29 -
  (a) ehow their recordG of cash in hand , any other cash ,
       securities and materials of all kinds , and also the
       supporting document * in reaped* of 4hali> stewardship
       of the funds with which they are entrusted , and also
       any books , registers and other documents relating thereto |
  (b ) present the correspondence and any other document
       required for the full implementation of the audit
       referred to in the first paragraph of Article 87 .
 The information supplied under (b) may be requested only by
 the Court of Auditors or by one of its members , and vuch
 request shall be in writing.
 The Court of Auditors shall be empowered to audit the
 documents in respeot of the revenue and expenditure of the
 Communities which are held by the departments of the institu­
 tions and, in particular, by the departments responsible Tor
 decisions in respect of such revenue and expenditure .
 The task of establishing that the revenue has been received
 and the expenditure incurred in a lawful and proper manner
 and that the financial management has been Bound , shall embraoe
 the utilization by bodies outside the institutions of
 Community funds received by way of aid.
 The granting of aid to bodies outside the institutions shall'
be subject to the agreement by the reoipients to an audit
being carried out by the Court of Auditors on the utilisation
of the amounts granted as aid.
                        Artide 90
  The Court of Auditors shall transmit to the Commission
  and the institutions concerned , by 15 July at the latest ,
  any oomments which are , in its opinion , of a nature suoh
• that they should appear in the report provided for in
  Artiole iQf of the Treaty establishing the European Coal
  and Steel Community , Article 206a of the Treaty establishing
  the European Eoonomic Community and Artiole 180a of the
  Treaty establishing the European Atomio Energy Community.
  Each institution shall address its reply to the Court of
  Auditors by 31 October at the latest . Ihe replies of the
  institutions other than the Commission shall be forwarded
  simultaneously to the Commission .
  The Court of Auditors shall attaoh to the annual report
  an assessment of the soundness of the finanoial management .
  Before or after the accounts for a financial year have been
  olosed , any institution may request the Court of Auditors
  to forward , in addition to the annual report , reports or
  analyses in respeot of speoifio problems relating to the
  general budget of the European Communities .
   The Court of Auditors may , on its own initiative , plaoe similar
   reports or analyses before any institution .
 ---pagebreak---                             - 30 -
                             Artiole 91
     The Court of Auditors shall transmit to the authorities
     responsible for giving discharge and to the other institutions ,
    "by 30 November at the latest , its annual report accompanied by
     the replies , and it shall ensure publication thereof in the
     Official Journal .
                                 Artiole 92
   The European Parlipment,upon a recommendation from the Council
   vhich shall act by a qualified majority , shall, before 30 April
   of the next year , pive a discharge to the Commission ;ln reBpecrfc .
   of the implementation of the Budget . If that date c,annot be
   net , tha European Parliament or the Council shall infprra the
   Commission of the reasons for the postponement *
     The Financial Controller and all the institutions are to
take into accountthe comments given by the European Parliament
     in the decisions giving discharge . At the request of the
     European Parliament or of the Counoil , the institutions
     shall report to the European Parliament on the measures
     taken in the light of these oomments and , in particular ,
     on the instructions given to their departments which are
     responsible for the implementation of the budget . Such
     reports shall also be forwarded to the Court of Auditors
     and to the Commission of the European Communities *
                                                              *
    8*   Insertion of a new Article 92a worded as follows :
                           Artiole 92a
    All institutions and all staff of the European Communities
     shall provide to the European Parliament any info rmat ion
    whioh it calls for in the context of its exeroise of
    oontrol of the general budget of the European Communities *
    9*   The following Artioles shall be worded as follows :
                           Artiole 93
     1 . The provisions of Titles I to VI and XI shall apply
    to the research and investment appropriations set out in
    the annex provided for in Article 94 » hereinafter oalled
     annex , and the financial scheme referred to in Artiole 93 , save
     as otherwise provided in this Title or where they are
    incompatible with the special provisions of this Title *
     2»  The financing of the expenditure relating to the supplementary
     research programmes if governed by the provisions of Artiole 4(6 )
    of the Seoision of 21 April 1970 *
 ---pagebreak---                             - 31 -
                           Artiole 94
 Research and investment appropriations shall "be entered in
 a special ohapter in the seotion of the budget relating to
 the Commission .
 A detailed functional "breakdown of these appropriations
 shall "be given in an annex to this seotion .
That annex, which forms an integral part of the Budget , shall
contain :
– appropriations intonded to finanoe all the research and
   investment objectives ;
•• appropriations for other activities .
                              Article 95
    1. An overall allocation covering several years (herein­
    after called "tranche") shall be made to the chapter of th#
   Budget corresponding to each research end investment objective
    as defined by the Council in its decisions relating to
   programmes or corresponding decisions .
   In budgetary terms , the tranche shall be the total allocation
   provided in the Budget for each research and investment
   objective , taking into account any financial reserves f except
   where the objective is to consist of several speoifio stages
   each forming a self-contained whole .
   2 . Amounts authorized annually |n the Budget to cover
   research and investment expenditure shall include appropri*-.
   tions for commitment and appropriations for payment .
   3 . . The appropriations for commitment within each tranche
   are intended to enable the Commission to meet all the legal-
   obligations which it may contraot .
                                                               «»
   They represent the upper limit of expenditure to which the
   Commission may commit itself -during the finanoial year in
   question for the attainment of the objeotives to which this
    expenditure relatea .
   Uotwlthatfiridinpr thq proviaiona of Artiole 6 the appropriations
    for commitment shall remain valid until they are cancelled
   under the budgetary procedure *
   4 . Appropriations for payment represent the upper limit of
    expenditure which may be incurred or authorized during eaoh
    financial year to cover commitments entered into during ths
   current or preceding financial years.
   Notwithstanding the provisions of Article 6 f those
   .appropriations for payment corresponding to appropriations
   for conrritroont which remain valid shall be carried forward
    until oancelle^undpy budgetary procedure .
 ---pagebreak---                                               - 32
     IjQ.Artiole 96 is deleted.
    11 * The following Articles shall be worded as followst
                                      Artide 97
                                                                                                      I
            Notwithstanding tha provisions of paragraphs 2 and 3 o f                                  t
            Article 1 *?, the nomenclature of the annex shall be "based , aa                      '   !
            regards the dcnftrlption of chapters and articles , on the use                 ,          ■
            of expenditure rocultinfr mainly from carrying out research
            objectives and othur activities.                                    '
                                                                                          •" , ..    <'
             Within the Chapters and Articles , expenditure shall "foe                                l
             olassified aocording to its nature into oategorlea which shall
             \?e subdivided into headings ; in the Budget , however f"this
             $lassification shall only be used in respect of categories*
                                          Artide 98
              1.      In addition to the documents referred to in Article 12 ,                       1
              a financial scheme chall bo drawn up to support the
            preliminary draft annex . Thin r.hall contain , in tjie form               ^
               of appropriation accounto , tho apnropriationa made available            '     \
               in the Chapters and Articlen of tho abovementioned annex                         ■   }
              "corresponding to the instruments of implementation,1^                                i
               For exa^iplo , auch instruments Urei                           '
              – the scientifio divisions }
              - tho général services 1
              - the scientific and technical services .                                             I
                  ■■              ■    1            1        1                                      I
              In addition , the financial scheme shall contain at
              staff expenditure account .
               2.      The financial scheme , amended if necessary '
              in accordance yjth-the Budget , shair serve aa the -basis for
         •     "lan 'V'c "'' cn^»
. >
           Expenditure in respect of the instruments of implementation
           and the staff expenditure acoount shall be entered
          provisionally in this soheme .
            3.        An appropriation account shall bo provided for esch
             inotrumcnt of implementation .           Tho approprl a 1 1 on s entered
             therein in the different chapters of the annex**for these
             instruments shall be claGr. ified according t o thei r nature
           •pursuant to the cocond subparagraph of Article 9|u' ""
                                              h all also T>e         fo»-e3»«nfl*tn *.
            . in the eta-ff erpcnditure accomri'l
 ---pagebreak---                                  - 33 -
    4 . The expenditure entered provisionally in the staff
    expenditure aooount shall not exoeed the amounts made
    available in the appropriation accounts .
    The expenditure entered provisionally in each appropriation
    account shall not exceed the appropriations authorized in
    reject of tho Chapters p.nd Articles in the annex for the
    i nstrument in fruostion , save v.hcro , nr> a result either of
    tr .mr- fers within Chapters and Articles of this rnncx or of
    nd'litior.nl r.T.ounts mnde ovnilablc for third          -
     parties ,         surplus resources make it possible to increase
    expenditure accordingly .        These additional amounts shall be
    ciade • avaj 1 ab 1 e as ;
    – comitinents , up to the amount of tho repayment provided for
     , in the contracts concluded with re ernes tin .^ third parties ,
    – payments , up to the amount of the entitlements for repayment ,.
                                                                                !
    5.     The provisional entries in the staff expenditure account             j
    slhall be distributed over the appropriation accounts each                  }
    month after deduction of the Community tax .                                i
      r                                                                         l
    The provisional entries in the appropriation accounts shall J-             j
    be distributed – by moans of finol entries – over the research :           f
    objectives and other activities each month proportionately
    according to the work done by the instruments ,
    6.      A document shall be appended to the revenue and
    expenditure account showing the results of the operations                  j
    provisionally charged to each appropriation account and                    i
    opwrationa char^od to tha ntaff cxnondlturo aooount ,                      I
                                  Artiole 100
1 . A schedule . of amounts of and duo dates for commitments
and payments, forming an integral part of the Budget , shall
be attached to tho annex provided for in Article 94 and
shall be drawn up as follows by ohapter and artiole *
(a) for each tranche , the schedule of amounts and due                   4
        dates shall show the timetable for the utilization 9f
        the appropriations for commitment | this shall be
        subject to annual review :                             \
(b) for each estimated appropriation for commitment, the
        schedule of amounts and due dates shall show the               '    »
       annual timetable laid down for the payments*                        ' *
                                Artiole 101
If, at the beginning1 of a financial year, the Budget has
not yet been finally adopted, expenditure shall be
effected as follows :
(ft) Regarding tho appropriation3 made available in each
       Chapter for the instruments Article 8 shall apply.
 ---pagebreak---                          - 34 -
(b) . Regarding th» epeolfio appropriations of the Chapters
       in the annex , payments may be effected monthly in respect of any!
       chapter , up to an amount not exceeding one-twelfth of the
       annual estimates shown for that finanoial yeai' in tho
       schedule of amounts and due dates for payment in respect
       of the estimated appropriations for commitment,. .
       Commitments may be effected up to an amount n^t exceeding '
       one-fourth of each appropriation shown in the schedule
       of due dates for tho estimated commitments for the
       financial year concerned , increased by one-twelfth for         *
       each month elapsed , , provided that they do not exceed
       the amount provided for in the draft budget r <pr la tho          '
       absence thereof, in the preliminary draft budiret *
                     Artide 102
  1 * Every decision relating to transfers
  shall be subject to prior approval by the Financi{id
  Controller , who shall certify that the funds are jpw&ilabl *
  and that these operations are in order and in aooordanoe
 with the provisions in force .
  2.   However , if the Finanoial Controller oonsiders that he
  oarmot ascertain in advance the effeots of such transfers
  on the financial balance of the appropriation aooounta : of
  the financial scheme , he shall oonfine himself to delivering
  an opinion .
 In that case , and in so far as he is empowered , the
  authorizing officer may on his sole responsibility effect
  the transfer , provided that he malces available each month to
  the Financial Controller all appropriate information enabling
  an assessment to be made of the finanoial effect^ of such
  transfers#
  If as a Result of such information the Financial Controller
  finds that a financial imbalanoe has oocurred- in any
  appropriation account , he shall , inform the authorizing
  officer thereof#
  3.   Adjustments between categories of the Btaff expenditure
  account and within tho Bpeciflo appropriations in the
  appropriation accounts shall bo communicated to the Financial
  Controller but shall not require his prior approval .
 4.    In order to enable tho last definitive entri e s - to be made
  transfers may be made even after the end of the"jfinancial year*
                     Article 103
  1.   Notwithstanding Article 21 (4 ) « the Commission may , withis
  the limits and in the conditions fixed at the final adoption,
• of the statement of expenditure on research and investment t .
  mako transfers of appropriations between ohaptens , which
  shall thereupon 1?® specified by         la the statement*
  2v Kotwithstanding Article 21(6 ) f lib# prohibitions of
  transfers referred to thorein shall sot be applicable
   to the classification of expenditure according to its
  jn&ture , withia the moaning of Article $7 »
 ---pagebreak---                                 - 35 -
   3 » Notwithstanding Article 60 (a), a contract for scientifio and
    technical equipment or "building work may be let "by private
    treaty where the amount does not exoeed 20 000 units of
   Account , without prejudice to ^hooe cases where private
   •treaties are allowed under Art     , cle 60 (b ), ( c ) and ( d ) and
   Without prejudice to the general obligation to invite
   competitive tenders , as far as . possible and by all suitable
   means , from those capable of supplying the goods and
   services required by the contract .
   4 * Notwithstanding Article 62 , the following shall be
   submitted , before the decision of .the authorizing officer ,
   for the opinion of an Advisory Committee on Procurements and
   Contraots , whose composition and funotioning shall be settled
  by the measures of implementation envisaged in Article ll8t
   (a) contracts of a scientifio or technioal nature , for suae
         exceeding 100 000 units of aocount , and the acquisition
         of immovable property ;
   ^b) contraots for supplies and equipment of a nature other
         than scientifio or technioal , for suns exoeeding
         25 000 units of acoountf
   (o) contraots for supplies and equipment of a nature other
         than scientifio or technical for sums exoeeding
         5 000 units of acoount , to which points ( o ), (d ) and ( e ) of
         Article 60 apply.
   5« Notwithstanding the provisions of the first subparagraph
         of Article 68 , scientific and technical equipment may
         be sold , without first bein r. advertised , following a
     • • decision taken by the authorizing officer after he has
         consulted the Advisory Committee on Procurements and Contraots *
  12 . Title VIII , "Special provisions applicable to the European
         Social Fund** ( Articles 104 and 105 ) « is deleted*
  13 . Title IX becomes Title VIII .
         Artioles 107 * 108 , 110 'and 111 shall be worded as follows !
                               Artiole 107
Provisional global commitments shall be entered into , corresponding to
the advances to be made to the Member States , in respect of the
appropriations for the Guarantee Section of the European Agricultural
Guidanoe and Guarantee Fund .
The Commission Decisions fixing the amounts of these advances , in
accordance with Article 5(2 ) (a) of Regulation (EEC ) No 729/70 constitute
provisional global commitments . Hie approval of the Finanoial Controller
shall have the sole purpose of establishing that the commitments
correspond to the amount of the advahoes deoided by the Commission ,
after consultation with the Fund Committee , and that they are within
the limits of the total amount of appropriations in the Guarantee
Seotion of the European Agricultural Guidanoe and Guarantee Fund .
 ---pagebreak---                                                                                        - 36 -
     However, when the Commission considers -that a measure may "be of
     a nature that would result in the appropriations under a
     particular chapter being exoeeded substantially , the proposal
     in question should be transmitted to the European Parliament for
     its opinion . In suoh cases , Parliament should give its reaction
     within one month *
                                                                   Artiole 108
      1*           The expenditure effoctod by the departments and agencies
      in application of Article 4 of Regulation ( EEC ) No '729/70 shall •
      be tho subject of a commitment by chapter , article ,pjid item ,
      and shall also be charged as a payment , after examination of
      the statements transmitted by the Member States in
      accordance with the provisions laid down in application of
      Article 5(3 ) of the said Regulation , and after the approval
      of the Financial Controller *
      The commitment shall be entered into within two months after
      reception of the statements transmitted by the Member States *
      The charging as a payment shall , in general v be oarpried oat
      within the same period*
      This article shall apply, without prejudice to the plearanoe
      of accounts provided for in Artiole 5(<0(b ) of Regulation (EEC)
      No 729/70.
      2 * The commitments envisaged under this Article shall be
      deducted from tho provisional global ooctmitmentg referred to
      in Article 107#                                                                                             ■'
                                                                         Artiole 110
         Aay differences which may exist "between the expenditures
         charged to a financial year , pursuant to Artiole 109 » anti
         those recognized by the Commission at tho tine of clearaaioa
         of the accounts , aq provided for in Article 5(2)(l|), of
      • Regulation (EEC ; No 729/70, shall be charged as undo;^- or
         over-expenditure                                                to the finanoial year during which the
         accounts are cleared *
                                                                                Artiole 111
1 * Appropriations which have been globally committed in accordance with
Article 107 , and which have not- been the subject of a commitment under tfc«
budgetary nomenclature in accordance with Article 108 by 1 Apri l of the
Bubsoqugnt financial year , nhall be maintained - with a view to. _coverity
tho expenditure charrcuble to tho original financial year «                                                             _ _ ~
2 • Any ?.ppronri;xtion3 in exccsn of such .expenditure gha!j.l_'be . c'i'ncgllcd
urdor the oririml
■ IΤ                                   ■ -
                                                       financial "voar .
 A provisional rlobal amount corresponding to this sum sj;
 from the            appropriations for the current financial yearv'
        I,, γ'Ϊ , I ι^ίι Τ ι |ΗΤΓΙΤ·η-/ΐι·Ι·ΜΙΙΙ»,Ι ι' ·Μ»ι» II, III 1*11 101 ΙϋΙΙΙΠ-ηΐΒΠΠΙ–ΙΜίηΠΠ-η^ΙΊΓιΓΤΙ Μ»–·    4«
 ---pagebreak---                                                    - 37 -
14. Article 112 i" deleted.
15. Article 113 shall be worded' as follows :
                                              Article 113
                1 . Transfers from one article "to another within each chapter shall bo made
               \>y ^cTfx^^rTh^'CcT^isr.xon taken not laier than M * i-arch of" "the .          Am
               fir.c-r.cial year , in accordance with the procedure provided for in Article,!1
               of r'e.ruluUcn ( h-Lic ) Mo 7?V/ 70 .
      ι ·· - -
               2 . Transfers between chapters , whether within or between the titles created^
               in the budget for the Guarantee Section of the European Agricultural Guidanoe
               and Guarantee Fund, shall be made by the Commission, as necessary, up to
               31 March of the following year .
               3. The Commission may make transfers between the »Food Aid1 chapter and the             ,
               chapters of the Guarantee Section of the European Agricultural Guidance and
               Guarantee Fund up to 31 March of the following financial year in
               with the limits set by the application of Regulation (EEC) 2681/74 of                     ,
               21 Ootober 1974 for payments imputed to the financial year concerned.
               4. It shall take deoisions to transfer not earlier than one month after it » :
               has informed the budgetary authority of itB proposals in regard to suoh transfers           ι
                                                                                                          f
                                                                                                           I
                                               • • ■                                                       I
   16. Article 114 is deleted.                                                                             t
                                                                                                           »
                                                                                                            I
   17* Title X becomes Title IX
   18. Artiole 115 Veeomes Artiole 114 * worded as followst
                          •                                        >
 i                                • •                        '                                     '
 !                                                             •                                  '* '
                                          ,   Article 114                                          «
                Eveiy food aid programme shall , onoe adopted "by the Counoily "be made the
                subj ect of a proposal for commitment in accordance with the procedure
                laid down in Articles 40 to 43 .
                The advanoes paid to Member States shall be entered globally against the
                abovementioned commitments ; the sum set aside for the commitments may not
                be exceeded .
                As regards the booking as payment of the expenditure effeoted by the
                Member States using the funds advanced by the Commission, and as regards
                the olearanoe of acoountB . the provisions of Artioles 108 to 110 shall apply*
 ---pagebreak---                                         - 38 -
   The Commission may deoide , tip to 31 March of the following
   finanoi&l year, oa transfers from ono article to another
  vithin the said chapt era                            .. . •
              A new Title X , worded as follows t has been introduced*
                                    TITLE £                                    .. *
        SPECIAL PROVISIONS RELATING TO THE OFFICIAL - PUBLICATIONS
                   OFFICE OF THE EUROPEAN COMMUNITIES .
                                 Article 115
 1.    Without prejudice to the other provisions of the Fj^nanoiax
 Regulation, the following special provisions shall appjly to
 the functioning of the Official Publications Office of, the "
 European Communities .
  2 . The appropriations for the Official Publications Office .
  the total amount of which shall bei entered under a special budget
  heading within the section of the Budget relating to the
  Commission , r.hall be set out in detail in nn Annex to that seetion «
  The appropriations shown under this specific budget heading roay "be
  trunr.t erred in accordance with the conditions set out in                 -   •
  Article 21 .                                                     f~~
  The Annex shall take the form of a statement of revenue and                         •
  expenditure , subdivided in the same way as the sections of the
  Budget .
  The appropriations entered in that Annex shall cover all the
  financial requirements of the Official Publications Office in                         •
  the performance of its duties in the service of the Community 's                  *.
  institutions as defined in the Decdsion of 16 January 1969
  setting up the Office .
  Where necessary , the estimates mav be ad.iusted during the
  financial year by the Managing Board of the Office which
  shall decide on the transfers required within the Annex as a
         t of auoh ftdjuntmcnto .
  3.   The remarks on the pn /^e fncinff the specifio budget heading
  under which is entered the total appropriation for thq Official
. P»VH r-A+.i mis Office shall show an estimate of the cost of             .
  servicen rendered by the Office to each of tho Institutions .
  Thin shall be based on the forecasts of the analytical accounts
  provided for in pararraph 5 below .
  The total cost's of services rendered by the Office shall
  correspond to tho totRl eypenditure shown in its statement of
  expenditure .                                                  '
  A paper setting out the basi c data ••■underlyi ng -the estiiate of -the
  allocation of the          e;B~s ervi ooa "as between the Institutions          •
              shal 1 be provided as a supporting document for the
  preliminary draft "budget#                       .             ;     . .
 ---pagebreak---                                                    - 39 -
   4»     Each inHtltution shall . for Abidance , enter in itii section          '
  of the Budget a pro forma appropriation corTPRponding'to the
  services v.hich it expects the Office to render to it <?uring "the
  financial yo.ir concerned .
     5 * The Official Publications Office. .shall draw up analytical               ^ .
     acco'. i nts of ltn evn ^v ii tu r e , enabl i ng the proportion of its
     scrvi cos rorvlcrcd to e -"-.h of the In s titutions to be assessed each
     ronth , 'ij"'e Managing Board               shall lay down the criteria on
   ■ which the accounting eyptr-n shall be based .                   • •
     The Office shall notify the Institutions concerned of the results ■
     of t r.'i analytical , acoountn .               .  .
      6 . On a proposal from the Managing Board the Commission
     shall , for the appropriations entered in the Annex for the
     Official Publications Office , delegate the powers of authorisation
     to the Director of the Office and shall fix the limits and
     conditions of such delegation .
     Each Institution shall retain the powers of authorization for
     expenditure char/rod to the appropriations for the publication
     of all work entrusted to outoide bod,ie3 by the Office .
     7 * The Financial Controller shall Relegate powers to an
     official responsible for the control of commitment and
     authorization of expenditure and for the control of the
     revenue of the Office .                                                 . .
     The Commission, on a proposal from the Managing Board
     of the Office , shall appoint an assistant accounting officer
     specially responsible for the collection of revenue and
     the settlement of expenditure effeoted directly by the
     Office .
     8. To meet the cash require nrrta of the Office , bank aooounta
 " or post office giro accounts may be "opened oh its behalf by
     the Commission , on a proposal from the Managing Board .
1 The accounts . shall be financed regularly "hv payments _ effected "hv
; the Cor.rni r.cii on upon receipt of cnlln for func3n from the Office .
     Such payments may not exceed the total nmount of the
     appropriations ontcrod for thio purpose in the Commission Budget,*
     The final cash position for each year shall be adjusted
     between the Office an$ , the Commission at the end of th«
     financial year.
      9 • The net prooeeds from sales of publications by t^ e Offjoe
      shall be re-used by the institution which drew up the
      publication , pursuant to Article 22(2 ).                        :
       10* The revenue and expenditure account and the b&lanoe sheet
       in respect of the Offioe shall fora an integral part of the
      revenue and expenditure account and of the balance iheet
      of the Communities referred to In Artiolea 81 and 64 of
      the financial Regulation.                                 -
       11 . The Managing Board              ' of the Offioe shall determine
       the detailed ruleq for the application of the preceding
       provisions , and also spocifio rules governing . the tpnna of
       eale of publications and the corresponding accoimtiipg Bystea»
 ---pagebreak---                                                     - 40 -
20 .     Title Xa is deleted .
21 •     Title XI "bears the title : Transitional and final provisions
22 * In Arfciol * 117 th« t«ro "Audit Board" i« r®pl»o«4 "by
         "Court of Auditors ".
23 .    Article 119 is worded as follows J
          •;                                     Artici* 119                                         "
                   l(a) The provisions amending Artioles 26 . 28 and 29 shall
                 ■ not apply •until 1 January 1978 .                                          "
                   (h )   The T>rovi nj ona pP Articles ?6 to 31 . 33 .
                   sub*vir.i~Tvrh of Article 3/l(?)t onri Ariiclco 37(1 )          39
                   of i'i mncinT"Hf"'al ation Ho 73/91 ( KCGC . Kl-.C, Kur.itom ) of
            |      ?*3 Anril 1973 chall remain in force until 31 December 1977 .
              ■    Kherc the accounts for the 1976 and . 1977 financial years are               ••
      ■        '   clopfi , the Cor.-:i nr-ion shall draw up a otat^prnt of Bums
                   p~u»i , corrarinr: the n\:ir.s nctual l.y paid by the ? Prober States         -..-J
                   with thorp quo to have boon pai (1 under the nt -itc -nenta of
                   revenue ard expenditure for tho f inancial year in crucction .
                   This snail be followed by a clearance of tho difference
                   chown in the statement .
                   ( o ) Th «> r>rovlsion3 of Article 38 cihall remain in force until
                   the final date set for implementing the finance mechanism                  1
                   ent.Vb ] ir.hcd by Council Rcrculntion No' 1 iV^/ fb       17      l97o *_
                   2. The provisions of the fourth paragraph of Article 6 , Rnd
                   Article 9 "nd the fir3t paragraph of Article 92 ( insofar Ra
                   t hey j.Mrnd the current rulen ) and the provisions ooncernin ,?
                   the Court of Audi torn shall not come into forco until the dat e
                   of the ratification of tho Treaty of 22 July emending certain                    '<
                                  provirlons of the Treaties enthblinhinrr the European
                   Communities and tho Treaty ert^bl inhin ^ a;Sinrle Council and a
              ' Single Con-mi r. 3 ion of the European Communities .
                   3.    The provisions of Articles 66 to 92 shall be reviewed , in
                   accordance with the procedure . laid down for thio purpose in
                   the Treaties , after the Court of Auditors has issued its
             '     opinion on these provisions .
  - .             Parsuant to the provisions of Artiole 28 of the Treaty of
            . 22              197*7 . the terms of office of tho members of the Audit
        ■ • Eojrd and that of the auditor shall expire on the day they
                  submit their Report on the financial year preceding that in whioh
                  the members of the Court of Auditors are appointed ; their
                 powers of audit shall be confined to operations relating to that
                  financial year. These powers shall be exercised in aooordnno*
                 with tho provisions of Articles 85 to 92 of Financial Regulation
                 No 73/91/M2SC , EBC » Euratorn of 25 April 1973 .
                 After the members of the Court of Auditors have been appointed, the
                 three authorities responsible for external oontrol shall confer and
                 take the appropriate measures to assure continuity of oontrol .
  OJ No L 131 of 20.5.76 .
 ---pagebreak---                                                                      - 41
i *.?  A. A nnronrl JltiIW1W         OTIS remitted
                                            V"'" yn-.ie
                                                  ,        .mfrut TlOt paid
                                                              rnn^v      nto at thO_gr^
                                                                             force          j^thg   . *
                                                                                     ol ■ ihTS^ent»).               j
       financiaJ                                                '■""'J–.                  ,                         i
■•     ~ ■ ".       _   . i J\t * \
                                                                       maintaxnea under                 •           ]y
       Article          6(3   ;(*>).«                                                                                »
       e;        r. rrimi -tmen-t                mtiona for the Social Fund lnauRd_on ^
 :               –1              |^).; TTfthe entry into force of the amrndTiPntB ) on
                                 Artir.TR 104 of Kin-'moiu'l Reflation No 73/^1 jj£S|Lt.
        v-. - r; Lr^mS of 25 April Tm^hall remain i n force during the
                            . nir for which they u«.rn Issued and the r.tima committed
  '                   ihr -> Authorizations nh-ill be gdded to t ^o appropriations
  - •                                  tvr- thu financial year for which they were opened.
       6 . Exceptional ly i                                                                                   i         j
       «■ payments made up to 31 January 1973 for the Guarantee Section                                                 •
     !         of the hJu rop'-in Agricultural Oui<)nncc and (iu.'ir.-intce Fund by
               the ."boAlea nr.d departnrntn referred to in Article 4 of                                             ";j
    |          Rcf7.il at ion ( MI-JCl No
                  ''              I .1    ! f ,     I 1 !f I  «
                                                                  shall be included in the account
                                                                              ■             !  I                       m
    i          for 1972 *                                                                                         "   H
    I "* Guidance
               *n the cage             of the Guidance Section of the 'European Aftrlcultural
                                and Guarantee Fund a special entry shall be made in
                                                                                                                       k
    j          the remarks column of the Budget re/tardin/t the appropriations                                         »i.
               reserved for improving arricul tural structures which have been                                  ,      1^«'
    j          carried over from previous financial years but commitment of
    j         which ia not planned during the financial year concerned. In
               that year they will not require to be covered by revenue .
              However , insofar as they were the subject of commitment
              decisions pursuant to the provisions established under the ooomon
              agricultural policy , they constitute commitment authorizations*
              Where this is the oaBdj; the appropriate amendments on the                                   ;
              revenue side shall be effeoted through budgetary procedure#                                 "* . '
       7 * The appropriation?* for commitment entered in the budgets
       for 1975 > 1976 and 1977 for tho European Reprional Development
       Fund and not coTmittcd b.y the end of the financial year for
       which they were entered in the Bud /ret shall remain available
        for the two subsequent financial years .
       8(a ) The provisions amending Articles 10 and 71 shall r.ot enter
       into force until 1 January 197d»                                            ■              '
       From that date the term "unit of account " used in this Plnanclal
       Regulation Khali be ttken to mean the European unit of a ccount
        ( IIJA ) an defined in Article 10.
       Until 31 December 1977 the provisions of Artioles 10 , 27 and 71
       of Financial Relation No 73 /91 /l'KSC . KBC . Furatom of
       23 April 1973 shall remain in force .
       (b ) The oonditions in which the' European emit of account (EUA) i3 to be
       applied to revenue and expenditure shall 1 9 decidad in q,o0crd?no«
       with the implementing oeaawres envisaged in Artiola 118 '©? this
       FiiUiacial Regulation*
 ---pagebreak---                                              - 42 -
24 . Annoxes I, II , III and IV ar« doleted.
                                       Artiole 2
          The following shall "be repealed :
          - The Pinanoial Regulation of 10 March 1975 supplementing the Pinanoial Regulation
             of 25 Aoril 1973 applicable to the general budget of the European Communities
             (75/l84/Euratom, ECSC, EEC) 1 ;
          f The Financial Regulation of 24 November 1975 derogating from Artiole 6(l ) pf the
             Pinanoial Regulation of 25 April 1973 applioablegto the general budget of the
             European Communities (75/717A*ura^°®» ECSCf EEC) )
          111 other provisions contrary to the present Regulation shall also be repealed*
                                        Artide 3
           At three yearly intervals the European Parliament and the Council of the
           European Communities shall examine the Financial Regulation in the light"
           of a proposal from the Commission of the European Communities to take
           account of developments . Any amending regulations shall "be adopted by
           the Counoil after reoourse to the oonoertation prooedure if Parliament
           so requests *
        ,
                                              Article 4
           This Regulation shall enter into foroo on ••••••
           This Financial Regulation shall be binding in its entirety and directly applicable
          in all Member States.                                         .
     j Î.OJ Ko L 73 of 21.3.1975
     ; 2oj Ko L 307. Of 27.11.1975-
 ---pagebreak---                                      LIST OF AKEKDKEWT5 PROPOSKD W PARLIAMENT AHD
                                            ACTION TAKES BY THE COMMISSION
                                                                ACTION TAKEN Br THE COMMISSION
                                            Beferenoe        Aaendaent aooepted         Aaendnont acoepted     Anendnent not
 T7P® of anendœent
                                                             as it stands               subjeot to             accepted (»
                                                                                        altération              Initial CoRsalssioi
                                                                                                               text retained )
  ( l ) Definition of the annual ity of
         of appropriations (» no»-      ^
         differentiated appropriations )    Article 1(2 )
  (2) Provisions ooncerning
         differentiated appropropriation®                                                                  lvlth the exception ]
         (* oomaitment author! eationo                .                                                    K.3 )
         and appropriat lone for paynwt     Artlolt 1(3)                                                     ixcopt that it has
                                                                                                             >een agreed to
                                                                                                             -eplaoe " appropri »-    I
                                                                                                             . ion for payment" ty    '
                                                                                                             'conaitnent author– !    j
                                                                                                               sation" ( in this    |
                                                                                                           , Lrtiole and eleewhere )«
  ( j) Definition of appropriation*        Artide 1(3)
  (4 ) Entry in full of all revenue
         and all expenditure               Artide
                                            Art i oie 3(2 )              X
  ( 3 ) Drafting amendment                 Artlole 4                     X
  (6 ) Drafting amendsant                  Article 5                     X
  (7 ) Drafting aaendaent                  Artlole 6(1 )                 X
  (8) Revenue entered in the acoount■
        on the basis of entitleaents
        established up to and including
        31 December ( instead of on the
        basis of the mounts
        collected )                        Artiole 6(2 )
  (9 ) Provisions concerning the
        utilization and Baintenanoe
        of appropriations                  Artlole 6(3)
  (10) Informing the budgetary
        authority of the utilisation
        of appropriations                  Artiole 6(5)*                 X
I (ll) Drafting amendment                  Artlole 7                     X
  (12) Drafting attendsent^
          (twelfths )                      Artide 6                     X
  (13) drafting aaendaent                  Artide 12(2)(b)              X
  (U ) Explanatory statement dram up
        tar " satellite'* todies           Artiole 12(4)(o )
     Addition proposed by Parllaaent .
   Pwlieaent proposes, aaong other thing*, that the Cowioil should oonrult it on ooa]rulsory expenditure^
 ---pagebreak---                                                                         - 2 -
       rape of Menda orti                             R«for«no«
                                                                                            ACTION TAXKH BT THE CGtttfSSIO.T
                                                                       Anendaont ecoepted     Aa^ndnent accepted     Anendnent not accepted
                                                                       u it a tanda           eubjeot to             (» Initial Connlaeion
                                                                                              altération             text retained )
     ( ij ) Balance eheet of aaaete and
              liabilities to be attached to .
             the preliminary draft budget        Article 12(5)*                X
     ( 16) Utttri of aaendaent                   Artiola 12(6) .     ,         z
                                                 aeoond aubparagiwph
     ( 17) Suppleaentary and oaendlnf
             budgete                             Artide 12(7 )                 ζ
     ( 18 ) Drafting aaendaent                   Art loia 1 } -                ζ .
     ( 19) Presentation of appropriations        Artlela 16(2)(b)
             in the budget                                                                                            X (vltli the exception
                                                                                                                      •r i)
    ( 20} Drafting aaendsent                    Artlola 17
    ( 21 ) Tranefer provlilom                   Artiola 21
                                                ( paragraph* 2,
                                                3 and 4)
    ( 22) Drafting aaendnint                    Artlola 21(7)                  χ
   { 2}) Drafting uandaint                      Artlola 2) f                   χ
   ( 24) Drafting u«nda«nt                      Artlola 24                     χ
   ( 25 ) Delation of Artiola Zl
            aa a, roeult of rebooting
            "oaati budget " principle
   ( 26) Quarterly report en
            rtotlpti and up«ndltv«             Artlola J1                     ζ
  ( 27 / Drafting anendaent                    Artlola 42                     χ
  ( 28) Drafting anendaent                     Artlola 7)                     ζ
  ( 29) Deletion of tha
           provision for adjuataento           Artlola 75
           to bo appended to tha               • econd aub–
           aheate for 31 December             para^rapii
  {30) Drafting aaendaenta                    Artlole 81
                                              ( parngrapha 1 ,
                                              2, 3 and 4 )
 OO Forwarding the rovenue
          and expend! turo account            Artlola 85
 (32) Power* of tho Court of
          Audi tors
                                              Artlola a;>* .                              •thlrd paragrapfc
                                                                                           oaljr
 (33) The dates "15 July** and
          "31 Cbtober** for tha
         presentation of accounts             Artlola 90
• Addition propoaad by Pu-H^ai („ Arlkol* 85).
 ---pagebreak---                                                            - 3 -
                                                                           ACTION TAKEN BT THE COMMISSION                    I
                                     Ref*r*nc*          Amendment aconpted     Amendment aocapted     Amendment not accepted   j
     of amendment                                       as it stand *          subjeot to             (- Initial Commission
                                                                               alteration             text retained )
34) Specifio reporte , Court of  Article 90                      X
     Auditors
                                                                                                                               '
33) Transmission of th6 annual
     report of the Court of
     Auditors                    Artide 91                       X
                                                                                                                                 \
                                                                                                                                   i
35) Drafting amendment (aotion                                                                                                    i;
     to be taken on the oomnenta                                                                                                  i<
     in the decisions giving                                                                                                      I'
     dieoharge )                 Artiole 92                      X
                                                                                                                                   [
37) Providing Parliament with                                                   Amendment aocepted                                 !
     any documents and                                                          subject - to the '
     information                 Artiole 92a                                    deletion of "and any
                                                                               documents" ( leaving
                                                    ■ I                         "any information")                                I
                                                                                                                                  i
38) Various adjustments
      concerning research        Articles 93 » 94 »
     appropri ati ons            95 . 98(2 )                     X
39) Non-deduction of Community
      tax from the staff
      expenditure acoount         Artiole 98(5)                                                                  x
40; "Guarantee" and "Food Aid"    Artiole 113
      transfers                   (paragraphs 2 , .
                                  3 and 4)                       X
 41) Rie authorities              Artiole 119(3)
      responsible for external    last sub­
      eontrol shall confer        paragraph                      X
 42) Hew Artlols 3 (of our
      overall proposal ) «
      re-examination of the
      Financial Regulation at
      three-yearly interval*      (Artlolo 3)                    X
                                                                                                                                 i
                                                                                                                                  i
                                                                                                                                   1
                                                                                                            *                  II
   itton proposed to ParlluNnt *
                                                                                                                 .    .
                                                                                                                                     (
                                                                                                                                     i
 ---pagebreak---                          WORKING PAPER
PARALLEL TEXTS COMPRISING :
1*  The Financial Regulation of 25 April 1973
2*  The proposal for a Regulation amending the Finanoial
    Regulation of 25 April 1973
    (presented "by the Commission to the Council on
    26 May 1976 )
3.  The proposal of 26 May 197° »    amended on the 'basis
    of the opinion of the European Parliament of
    14 Deoember 1976 *
 ---pagebreak---  9   ■ ■
,                 FINANCIAL REGULATION             Proposal for a Council Regulation (ECSC, EEC, Euraton)        Proposal for a Regulation presented by the Conlsslon, after
I                    of 25 Aprll 1973              amending the Financial Regulation of 25 April 1973           aaendnent on the basis of the Opinion of the European
' applicable to the General Budget of the European applicable to the General Budget of the European              Parllanent of n.12,1976
                      Conaunl tl es                Connunl ties, ( Submitted by the Cooalsslon to th#
            ( 73/91 /ECSC, EEC, Euratoa)           Council on 26 Hay 1976)
   TOR COUNCIL OF THE EUROPEAN COMMUNITIES ,          THE COUNCIL OF THE EUROPEAN COMMUNITIES,
                                                                                           .  ■            I
                                                     Having regard to the Treaty establishing the          '    Unchanged
   Having regard to the Treaty establishing the      European Coal and Steel Community, and in
                                                     particular Article 78f thereof,
   Eur op6an Coal and Steel Conununi'tyj and in
                                                     Having regard to the Treaty establishing the               whanged
   particular Article 78 (f) thereof}                European Economic Community, and in particular
                                                     Article 209 thereof,
   Having regard to the Treaty establishing the      Having regard to the Treaty establishing the               Unchanged                                                       ]
                                                     European Atomic Energy Community, and in
   European Economic Community , and in parti-       particular Article 183 thereof,
   cular Article 209 thereof}
                                                     Having regard to the proposal from the Commission.         Unchanged
   Having regard to the Treaty establishing the     Having regard to the opinion of the European                Unchanged
                                                    Parliament,
   European Atomio Energy Community, and in
                            I
                                                    Whereas the Treaty of 22 July 1975 amended certain          unchanged
   particular Article 183 thereof}                   financial provisions of the Treaties establishing the
                                                    European Communities and of the Treaty
                                                    establishing a Single Council and a Single
   Having regard to the proposal from the           Commission of the European Communities; and
                                                    whereas, in the light of these amendments, changes
    Commission}                                     need to be made to the provisions of the Financial
                                                    Regulation relating to the adoption of the budget
                                              /
                                                    and the measures to be taken if, at the beginning of
                                                    a budget year, the budget has not yet been adopted;
    Having regard to the Opinion of the
    European Parliament i                          Whereas account should also be taken of the                 whereas account should also be taken of the changed distribution
                                  >
                                                   changed distribution of the powers of the two               of the povers of the two Institutions which hold the budgetary
                                                    institutions which hold the budgetary authority by         authority by aaendlng the provisions concerning transfers to
                                                                                                             I
 ---pagebreak---                                                                                                      <                    ι        *
                                                                              1
                                                                                                                               -2
  amending the provisions concerning transfers to          reflect the fact that both these Institutions , I.e. the Council
  reflect the fact that tiic European Parliament makes     and the European Parllaaent , are Involved and that the Council
  the final decision on transfers relating to expenditure  takes the final decision on transfers relating -to expenditure
  which does not necessarily result from the Treaties      resulting necessarily fron the Treaties and acts adopted in accordance
  or from Acts adopted in accordance therewith;            therewith, and the European Parllaoent the final decision on transfers
                                                           of all other expenditure;
  Whereas the Treaty of 22 July 1975 established a         Whereas the Treaty of 22 July 1975 established a Court of Auditors which
  Court of Auditors which replaces the Audit Board         replaces the Audit Board and the ECSC Auditor; whereas , moreover, the
  and the Auditor of the European Coal and Steel           Court of Auditors should have the saoe status as an institution 1n
  Community; whereas the Court of Auditors should          natters concerning the establishsent and implementation of its budget;
  have the same status as an institution in matters        whereas , however , the Financial Regulation should define *ore clearly
  concerning the establishment and implementation of       the jurisdiction and powers of the Court and the manner in which it
                                                           should exercise those powers once it becones operational ; and whereas
  tl-.e budget, and whereas the provisions covering the     it Is therefore appropriate to stress the need to review that part
  jurisdiction and powers of the Court of Auditors         of the Financial Regulation which relates to the Court of Auditors;
  should be reviewed once the Court has been
  constituted;
  Whereas there should be conferred upon all the            Unchanged
  institutions the right to apply the practices current in
t some of the institutions in respect of the
  implementation of their budgets, and whereas in
  particular all the institutions should be empowered
  to effect themselves any necessary transfers within
   their own budget section; whereas in respect of the
  Guarantee Section of the European Agricultural
  Guidance and Guarantee Fund the Commission
   should – because of the requirement that the
   accounts be closed on 31 March – be empowered to
   carry out between 1 January and 31 March of the
  subsequent financial year any transfers between
   chapters that may be required; whereas, pursuant to
   rhe provisions of Regulation (EEC) No 2681 /74, it is
  essential that the Commission should be empowered
  to make transfers as necessary between chapters of
  the Guarantee Section of the European Agricultural
   Guidance and Guarantee Fund and the Food Aid
   chapter;
   Whereas the definition of the unit of account and        Unchanged
   the methods applicable to making conversions
   between the unit of account and the currencies of the
    Member States, embodied in the text of Article 10 of
   the Financial Regulation of 25 April 1973 {' ) are no
   longer appropriate to the current international
   monetary situation, and whereas in its report of
   4 March 1975 the Monetary Committee took the
    view that a unit of account based on a basket of
   Community currencies would be best suited to the
    requirements of the Community in general ;
 ---pagebreak---   Whereas the Council has already adopted such a unit  Unchanged                                                          - 5 -
 of account to express the amounts of aid mentioned
 in Article 42 of the ACP-EEC Convention of Lome
 in   Decision   No    75 /250/EEC (!); whereas   the
 Commission of the European Communities has
 adopted the same unit of account for the
 implementation of the ECSC Treaty in Decision No
3289/75/ECSC; and whereas the same definition
 should be adopted for the purposes of impjementing
the EEC and EAEC Treaties ;
Whereas it is necessary to harmonize the various       unchanged
budgetary procedures currently used for the Social
Fund, the Regional Fund and the European
 Agricultural Guidance and Guarantee Fund
Guidance Section; whereas it is essential that these
procedures be brought in line with the general
system ; whereas, notwithstanding this, transitional
provisions must be introduced to enable the
arrangements used for these Funds to be gradually
 adapted to the general system;
                    I
Whereas a distinction should be made between           Whereas a distinction should be oade between commitment authorizations
appropriations for commitment and appropriations      and appropriations for paynent In the case of projects lasting several
for payment in the case of projects lasting several    years and the projects to which such a distinction applies should be
years and the projects to which such a distinction     deteroined under the budgetary procedure:
applies should be determined under budgetary
procedure;
Whereas, in the light of the experience acquired in   whereas. In the case of research and Investment appropriations, account
the preparation and management of the function-       should be taken of the need for budgetary clarity and whereas an Initial
 orientated budget applicable to research and         breakdown of research appropriations by article and 1 ten should be given
 investment appropriations, the system used needs to  in a special chapter of the section of the budget relating to the
 be rationalized and simplified;                      Commission ; whereas , aoreover, In the light of the experience acquired
                                                      in the preparation and nanagenent of the function-orientated budget
                                                      applicable to these research and Investnent appropriations , the systea
                                                      used for their functional presentation needs to be rationalized and
                                                      si uplifted;
( 2 ) OJ No h 104 , 24,4.1975 » ?• 35.
 ---pagebreak---  Whereas the Official Publications Office carries       Unchanged                                                          – 4
out work for ail the institutions, thus constituting a
 joint service, and it is consequently necessary to
 improve the presentation and implementation of the
 budget for this Office; whereas the aopropriations
 for the Official Publications Office should
 consequently be entered in an Annex to the
 'Commission'      section    in .  which     all these
 appropriations will be entered under a specific
 budget heading and – in order to avoid unnecessary
inflation of the budget – the institutions should no
longer be required to make payments to the Office;
Whereas the budgetary nomenclature needs to be          Whereas , to take account of developnents In Conaunity activities, the
decided each year under the budgetary procedure to      budgetary nomenclature nay be changed each year under the budgetary
take account of the trends in the activities of the     procedure;
Communities;
Whereas the definitive application of the own           Unchanged
resources system from 1 January 1978 necessitates
the modification of certain financial provisions and
the introduction of new provisions in order to ensure
the Communities' financial autonomy by the
 assignment of the total sum of own resources;
Whereas, once this financial autonomy is achieved,      Unchanged
 the effecting of expenditure will no longer require
 the carrying-over of appropriations which had not
 been committed by the end of the financial year;
 whereas the provision for such carry-overs should
 therefore be abolished;
 Whereas the Community must nevertheless be able        Unchanged
  to meet the commitments into which it has entered ;
  whereas it is consequently necessary for the
  appropriations corresponding to these commitments
  and not spent during the financial year to be
  maintained in full to cover these obligations;
  Whereas borrowing has been recognized as a means      Unchanged
   of financing Community activities and the provisions
  of the Financial Regulation call for modification to
   • ntso nrrmtn» thic nrmiKîlitv*
 ---pagebreak---                                                                                                                                                                          - 5 -
                                                           Whereas account must be taken of the trends in       Unchanged
                                                           prices since the Financial Regulation of 25 April
                                                           1973 was drawn up and to modify the amounts
                                                           referred to in Articles 62, 64, 65 and 103
                                                           accordingly,
HAS ADOPTED THIS FINANCIAL RECUUTTONi                      HAS ADOPTED THIS REGULATION:                         HAS ADOPTED THIS REGULATION:
                  TITLE I                                                            TITLE I                                                    TITLE I
          GENERAL PRINCIPLES                                                 GENERAL PRINCIPLES                                          GENERAL PRINCIPLES
                     Article 1
                                                              Article 2                                                                        Artidi 1
1.    The Budget of the European Communities                  1 . The Budget of the European Communities        1# Unchanged
                                                              (hereinafter called 'budget') is the instrument
(hereinafter called 1 Budget' ) is the Instrument             which sets out forecasts of, and authorizes in
                                                              advance, the expected revenue and expenditure
 which sets out forecasts of, and authorizes In advance,      of the Communities for each budget year. For
                                                              the purposes of this Financial Regulation, the
the expected revenue and expenditure of the                   revenue and expenditure of the Communities
                                                              shall comprise:
Communities . for each budget year. For the purposes
 of this Financial Regulation , the revenue and expendltui
of the Communities eha.ll comprises
•    the administrative expenditure of the                  – the      administratis c  expenditure  of  the
                                                                 European Coal and Steel Community and
     European Coal and Steel Community and the                   the corresponding revenue.
   . corresponding revenue ;
–    the revenue and expenditure of the
                                                             – the revenue and expenditure of the
     European Economic Community}                                 European Economic Community,
–    the revenue and expenditure of the Euro­
                                                            – the revenue and expenditure of the                                                                        •
     pean Atomic Energy Community , with the                     European Atomic Energy Community.            I
                                                                                                                                                                                       !
                                                                                                                                                                                       I
     •xoeption of that of the Supply Agenoy                                                                                                                                            j
                                                                                                                                                                . . . •   , « t-w "\jm
                                                                                                                                                        Y   > i
     pn& of the Joint Undertakings.
 ---pagebreak---  The abovementi oned expenditure shall com­       The abovemeniioncd expenditure shall comprise
                                                  that arising from the activittQS of the
                                                   institutions.
 prise that ariBing from the activities of
 the institutions as set out in the budgetary     The budget *lso sets out forecasts of, and
                                                  authorizes, borrowing and lending operations.
 nomenclature provided for in Article 15 (4) •
                                                  2.     The appropriations entered annually in the 2. The appropriations shown in the budget shall be authorized for on#
                                                  budget yhall       be used to finance the         financial year.
                                                  commitments entered into during the financial
 2.   For the purposes of this Financial          year and the relevant payments without
                                                  prejudice to the provisions of paragraph 3
 Regulation , research and investment ex­         relating to muhiannu.il projects.
 penditure shall comprise any expenditure         No expenditure may be incurred or authorized      So expenditure nay be incurred or authorized in excess of the authorized
                                                  in excess of the authorized appropriations.       appropriations.
 vrhicb asy be charge*! io the Budget
                                                  3. The appropriations intended to finance         3. The appropriations intended to finance multiannual operations say
  under    the Treaty establishing the            multiannual projects shall include appropria­     include commitment authorizations and appropriations for payment.
European Atomic Energy Community andU^er          tions for commitment         and   appropriations
                                                  for payment.
the inpleseniing provisions and in particular: "
                                                 The appropriations for commitment authorize        The commitment authorizations enable the legal obligations which have to
                                                 the signature of the legal obligations which have  be contracted to cover the total cost of operations which are to be
                                                 to be contracted to cover the total cost of        implemented over several financial years to be entered into. They
                                                 projects which are to be implemented over          represent the upper limit of that expenditure the commiteent of which
– expenditure relating to the implementation     several financial years. They represent the upper  has been authorized in order to enable the operations in question
                                                 limit of that expenditure the commitment of        to be Implemented.
    of the research and training programme of    which has been authorized in order to enable
                                                                                                    The expression ■ commi tment authorizations* is used in this Regulation with
                                                 the projects in question to be implemented.        the same meaning as the expression " commitment appropriations used in
    the Community!                                                                                  Article 176 of the FAEC Treaty and, by way of derogation, for research
                        ι                        The appropriations for payment enable              and investment appropriations, in Title VII of this Regulation.
-   any contribution to the capital of the       expenditure which has been committed during        The appropriations for payment enable ..... ( text unchanged)
                                                 the current or preceding financial years to be
    Supply Agency and to its investment ex­      paid. They represent the upper limit of
                                                 expenditure involved in the payment of the
    penditure }                                  commitments in question.                 '
- expenditure relating to the equipment of
                                                 Save as otherwise provided in the provisions       Save as otherwise provided in the provisions relating to research and
    training centres;                            relating      to    research    and     investment investment appropriations , the operations In respect of which a
                                                 appropriations, the projects in respect of which   distinction is made between commitment authorizations and appropriations
                                                 a distinction is made between appropriations for   for payment shall be decided during the budgetary procedure.
- any contribution to the Joint Undertakings     commitment and appiopriations for payment
                                                 shall be decided ijSuring the budgetary
    and to certain joint ventures;               procedure.
 ---pagebreak--- -    the CoaaniBBion'e financial eupport to        4. Without prejudice to the provisions of the      Unchanged'
                                                   preceding paragraph, expenditure may b«
    prospecting programmes in the territories      authorized for a pciiod going beyond the
                                                   financial year only ij.i accordance with the
    of Member States In accordance with Article 70 detailed rules provided |;or in the budget.
   of the Treaty establishing the European         Operating expenditure arising from contract *
                                                   which have been concluded in accordance with
    Atomic Energy Community and also the           local usage for peri, ids going beyond the
                                                   financial year it not subject to the provision! of
    financing of emergency stocks which it may     the preceding subparagraph. Such expenditure
                                                   shall be charged to the budget for the financial
    be decided to build up pursuant to Article 72  year in which it it incurred.
    of the same Treaty)
- loans made and oharges relating thereto)
- repayment of loans and oharges relating
    theretO|
tad also all other expenditure relating to the
lotivities decided on by the Counoil .
 3.    Without prejudice to Article 93 , 104 and
 107 , expenditure may be authorized for a
 period going beyond the financial year only
 In accordance with the detailed rules pro­
 vided for in the Budget .
  Operating expenditure arising from contracts
  which have been concluded in accordance with
  local usage for periods going beyond the
  financial year is not subject to the provi­
  sions of the preceding subparagraph.        Such
  expenditure shall be charged to the Budget
  for the financial year in which it is ia-
 ---pagebreak---                                                       6
4.   Where necessary , or at the request of
the European Parliament , the Council or the
Court of Justice , the Commission may submit
                                     c
supplementary or amending budgets in preli­
minary draft form .     Such draft "budgets shall
be presented , examined, drawn up and finally
adopted in the same way and in accordance
with the same procedure aB the budget whose
forecasts they modify .      Such a draft "budget
must be justified "by reference to the said
budget .   In discussing it , the competent
authorities shall take into account the
urgency of the matter .      Preliminary drafts
of supplementary budgets must , as a general
rule , "be submitted to the Council not later
than the date laid down for tabling the pre­
liminary draft budget for the next fiiiancial
 y®ar .
 5.  The final adoption of the Budget places .
each Heater State under the obligation to place the .
contributions at the disposal of the Comml ssl on, in
 accordance with the rules laid down in this
 Financial Regulation ,
 ---pagebreak---                      A' tr2 Ol© iC                                   Article 2                                                  Article 2                           - 9
   The budget appropri aiaons shall be used in     Unchanged                                       Unchanged
   accordance with the principles of economy
   and sound financial management .
                   Article 3                      Article 3                                                                     Article 3
                                                   à.
                                                  All revenue and all expenditure shall be entered 1 . All estimated revenue and all estimated expenditure shall be
1.    All revenue ar.d all expenditure shall be
                                                  in full in the budget and in the account?        entered In full In the budget.
                                                  without any adjustment against each other.
entered in full in the Budget and in the
                                                                                                   2. All revenue and all expenditure shall be entered In full in
accounts .                                                                                         the accounts.
                                                I
Total revenue shall be used to finance
 total expenditure without prejudice to    –V
           the provisions of Article 3 (4) and
Article 4 ( 6) of the Decision of 21 April 1970 ,
2.    Notwithstanding the provisions of the
second subparagraph of paragraph 1 , any
                         »
revenue earnarked                         \
                   X   for a specific purpose ,
such as income frora foundations , subsidies ,
yifts and bequeBts , shall not be used for any
>ther purpose .
 Fhe Commission may accept any donation made
 ;o the Communities , and in particular found-
 itions , subsidies , gifts and bequests .
 ---pagebreak---                                                    1
rhe Commission nay      accept donations which
nay involve sone financial charge only
subject to prior authorization from the Euro-
jean Parliament and the Council, which shall
 act   on the matter within two months     from
the date of receipt of the request from the
 SorrjrdBsion.  If no objection has "been made
 aithin this period, the Commission shall
                                                 t
 take a final decision on acceptance .
                   Ax-tiele 4                                                                                                           Article 4
                                                     Artide 4
                                                     1 . The total revenue shall be used to finance     The total revenue shall be used to finance the total expenditure,
 So revenue shall "be collected and no expendi-      the total expenditure.                             subject to the provisions of the second paragraph of Article 93.
 ;ure effected unless credited to or charged         In the case of budget headings under which         In the case of budget headings under which appropriations for paysent
                                                     appropriations for commitment and appro­           and comml tment authorizations have been entered, It Is the aaount
 igainst an article in the Budget .                  priations for payment have been entered,           entered as appropriations for payment which Is to be used for the
                                                     it is the amount entered as appropriations for     purposes of the preceding subparagraph.
                                                     payment which is to be used for the purposes of
                                                     the preceding paragraph.
 Save as otherwise provided in this Financial
                                                     2. The financing of the expenditure relating
  Regulation , expenditure may not he incurred in    to the supplementary research programmes is
                                                     governed by the provisions of Article 4 (6) of
  jxcess of the appropriations authorized for th{    the Decision of 21 Aprij 1970.
  financial year or of the authorizati one granted   3. Notwithstanding the provisions of
                                                     paragraph 1 , the revenue earmarked for a specific
  in rebpect of subsequent financial yearB .         purpose, such as income from foundations,
                                                     subsidies, gifts and bequests, shall not be used
                                                     for any other purpose.
  Bo expenditure shall be authorized in excess
                                                     The Commission may accept any donation
   of the allotted appropriations .    The total     made to the Communities, and in particular
   a'neuni of the proceeds shall be entered in the
                                                     foundations, subsidies, pifts and bequests.
   accounts without any adjustment of revenue        The Commission may accept donations which
                                                     may involve some financial charge only subject
                                                     to prior authorization from the European
   against expenditure , save as otherwise pro–      Parliament and the Cquncil, which shall act oil
                                                     the matter within two months from the <fate of
   vided in Article
 ---pagebreak---                     Articlo 5                      receipt «>f the request from the Commission. If
                                                   no objection has been made within this period,
                                                   the Commission shall take a final decision of
  The financial year shall correspond to the       acceptance.
  calendar year .                                  Article 5                                     •
                                                                                                                                 Article 5
                                                                                           m
                                                   No revenue shall be collected and no            Notwithstanding the provisions of Article K, the revenue earmarked
  The revenue of a financial year shall be         expenditure effected unless credited to or
                                                   charged against an article in the budget.       for a specific purpose, such as Income fron foundations, subsidies,
1 entered in the accounts for that financial                                                       gifts and bequests, shall not be used for any other purpose.
^ year on the basis of entitlements recorded                                                       The Commission nay accept any donation made to the Communities, and
                                                                                                   in particular foundations, subsidies, gifts and bequests .
1 up to and including 31 December.                                                                 The Commission nay accept donations which say involve sone financial
                                                                                                   charge only subject to prior authorization from the European Parllanent
                                                                                                   and the Council , which shall act on the matter within two months froa
  The portion of entitlements for a financial                                                      the date of receipt of the request fron the Commission. If no objection
                                                                                                   has been nade within this period, the Commission shall take a final
  year which has not been collected at that                                                        decision In respect of acceptance.
  date shall be entered separately Article by
  Article up to and including 31 December of the
  next financial year in the accounts for the
  next financial year as an outstanding amount
  from the preceding financial year still to be
                       I
  collected.
  The allotted appropriations Bhall be used sole­
   ly to cover expenditure properly entered into
   and paid under the budget for the financial
  year for which they were granted , save as
  jtherwise provided in Articles 6 , 95 » 104
  md 111 | and to cover the debtB relating to
  preceding financial years for which no appro­
   priation was carried forward . ....           „
 ---pagebreak---                                                       f
                                                                                                                                                                              - 12 -
he expenditure of a financial year Bhall be
atered in the accounts for that year for
tens i.i reif.o.l of which the authorization
      ' reached the financial controller not
ater than 31 December , and for p'aynents
hi ch       were effected not later than the
ollowirig 15 January.
                    Article 6
                                                        Artide 6                                                                          Article 6
                                                        1 . The financial year shall correspond to the   1 . The financial year shall run fro 0 1 January to 31 Deceaber.
» (a) Appropriations relating to the                    calendar year.
         remuneration and allowances of the             2.    The revenue of a financial year shall be   2. The revenue of a financial year shall be entered in the accounts
                                                        entered in the accounts for that financial year  for that financial year on the basis of the entitlements established
         members and the staff of the Insti­            on the basis of the amounts collected during the up to and Including 31 Oecember.
                                                        financial year.
         tutions may not be carried forward.
                                                        3. The following rules shall govern the          3. The following rules shall govern the utilization of appropriations :
                                                        utilization of appropriations:
   (b) Appropriations in respect of pay­                (a) Under the budget headings where there is a   (a) Under the budget headings where there Is a distinction between
                                                            distinction    between   appropriations  for     commitment authorizations and appropriations for payeent :
         ments still outstanding as at 31 De­               commitment        and   appropriations   for
                                                            payment:
         cember for commitments entered into
                                                            – the     commitments shall be entered in        - the corarai tments shall be entered In      ( text unchanged!
         after 15 December and which relate to                  the   accounts on the basis of the
                                                                commitments contracted up to the end of
         the supply of goods and services , as                  the financial year. The portion of the
                                                                appropriations for commitment which is
         aleo that portion of the appropri­                     not utilized by the end of the financial
                                                                year shall lapse, unless the Budgetary
         ations still uncoanltted as at 31 December , 1         Authority decides otherwise during the
                                                      I         budgetary procedure,
         may be carried forward to the next
          financial year only.
 ---pagebreak---                                                   – the payments for a financial year shall he               - the payaenh for a financial year
    ( c) Approprlailons In respect of pay­             entered in the accounts for that year on                                                         ( text unchanged)
         ments Btill outstanding for commitments
                                                       the basis of the expenditure in respect of
                                                       which the authorization reached the
                                                       Financial Controller not later than 31
         properly entered into between 1 January      December, and for which payment was
                                                      effected by the accounting officer not
         and 31 December, with the exception of        later than the following 15 January. The
                                                      potion      of the       appropriations     for
         commitments entered into after 15 De­        payment which has not been utilized by
                                                      the end of the financial year, but which
         cember relating to supply of •               corresponds to commitments incurred
                                                      *hall not lapse but shall be used in the
         goodB and services , shall be carried        subsequent financial year(s) towards the
                                                      total amount of the commitments
         forward automatically to the next            contracted but not paid in the precedjng
                                                      financial years(s),
         financial year only.
                                                  – the portion of the appropriations for                    ■ the portion of the appropriations for ..... ( text unchanged]
                                                      payment which, at the end of the
                                                      financial year, exceeds the total amount
2.   For the appropriations mentioned in para­        of commitment! entered Jntp in |he
                                                      preceding financial year(s) shall lapie;
graph 1 (b), the Commission shall sutmit to ^    (b) Under the budget headir„gs where there is
the Council and shall forward to the European                                                            (b] Under the budget headings where there Is no distinction between
                                                     110 distinction between impropriations for
                                                     commitment and appropriations for payment               cooBltoent authorizations and appropriations for payient
Parliament , before 1 May , the duly documented                                                              (non-dl fferent I ated approprla tlons) :
                                                     (non-differentiated appropriations):
requests to carry forward appropriations made
                                                     – the commitments shall be entered in the
                                                          accounts on         the   basis     of the
                                                                                                             « tha coaaltaents shall ba entered in the ..... ( text unchanged]
by the European Parliament , the Council , the
                                                          commitments contracted up to the end of
Court of Justice and the Commission itself .              the financial year. TV portion of the
                                                          appropriations which has not been
                                                          committed by the cn^| of the financial
                                                          year shall lapse,
Should the Council , acting by a qualified ma­
                                                     – the payments for a financial year shall be            - the payaents for a financial year shall be          ( text unchanged]
jority and after consulting the European                  entered in the accounts for that year on
                                                          the basis of the expenditure in respect of
Parliament , fail to take a contrary decision             which the authorization reached the
                                                          Financial Controller not later than 31
vithin a month, the carrying forward of these             December, and for wt|ich payment was
                                                          effected by the accounting officer not
appropriations shall be deemed to be approved.            later than the following 15 January. J"he
                                                          portion of the appropriations which was
                                                          committed but not paid by the end of the
3. Unexpended revenue and appropriations still            fmancial year shall not lapse but shall be
                                                          used in the subsequent financial year(s)
available on 31 December , arieing out of the             towards     the   total  amount      of    the
                                                          commitments contracted but not paid in
donations referred to in Article 3, paragraph 2           the preceding financial > car(s).
 ---pagebreak---                                                                                                   I
U The appropriations referred to in paragraph   4.     However, the        appropriations for the    4, Unchanged
                                                Guidance Section of the European Agricultural
1 (b ) which are not yet committed on 31 Decem­ Guidance and Guarantee Fund may be used by
                                                way of exception to finance projects for which
ber and for which authority to carry forward    they were not initially committed in accordance
                                                with Council Regulation (EEC) No 3171 /75 of
 to the next financial year has "been given     3 December 1975 (' ).
 Bhall lapse if they are not committed and                                                           5. The budgetary authority Is to be Inforned, In the context of the
 paid       by the end of the said financial                                                         quarterly report provided for at Article 31 of this Financial Regulation,
                                                                                                     of the utilization of the appropriations referred to at paragraphs 3
 year , with the exception of the appropri­                                                          and \ above.
 ations for the Guidance Section of the Euro­
 pean Agricultural Guidance and Guarantee
 Fund .
  5 . Notwithstanding the provisions of para^-
 graph 1 | the appropriations for the Guidance
 Section of the European Agriculturo.1 Guidance
 and Guarantee Fund in respect of payments
 still due by reason of commitments
 entered into between 1 January and 31 Decem­
 ber shall be carried forward automatically
 for a period of five years .
                                                  (') OJ hjo L 315, 5. 12. 197S, p. 1.              ( 1 ) OJ No L 315, 5.12.1975, p. 1.
 ---pagebreak---                                                   15
On expiry oS that period , the Commission
 jay submit annual3 y to the Council before
1 May a list of the appropriations still
committed, with a request , duly documented,
for them to be carried forward. The Council
shall act by a qualified majority within a
month} if it has not acted at the end of
that period, the carrying forward of the
appropriations shall "be deemed to "be approved.
6.   The Council and the European Parliament
shall be provided for their information be-,
fore 1 April with a list of the euris to be
carried forward automatically.
7 . When implementing the Budget , details of the
                     ι
utilization of appropriations carried forward
 shall be entered separately Article by Article
 in the accounts for the current financial year .
 ---pagebreak---                                                                                                                                                                              - 16
                   Article 7                                                                                                               Arild * 7
                                                          Article 7
                                                          Once the budget for the following financial year   The appropriations entered In the budget Bay be cosaltted with
Current administrative' expenditure which Is            j has been finally adopted, the appropriations       effect fro* 1 January, once the budget has been finally adopted.
chargeable to the next financial year and which, by Its j entered therein may be committed with effect
                                                          from 1 January.
nature , arises at the 'beginning of that finan­
                                                          However, irrespective of the adoption of this      This provision shall not apply to current adalnlstratlve expenditure
cial year may , as from 15 November of each               budget, current administrative expenditure         which , as froa 15 Novenber of each financial year , ray be charged
                                                          which is chargeable to the nejjt financial year    es an expected coooUaent against the appropriations provided for
financial year , he charged as an expected                and which, by its nature, arises at the beginning  In respect of the next financial year. Such conoltoents shall not,
                                                          of that financial year may, as from IS             however, exceed one quarter of the total corresponding appropriation*
commitment against the appropriations pro­                November of each financial year, be charged as
                                                                                                             for the current financial year. However , such cosaltaents shall not
                                                          an      expected    commitment      against    the apply to new expenditure of a kind not yet approved In principle
vided for in respect of the next financial
                                                          appropriations provided for in respect of the       In the budget of the current financial year.
                                                          next financial year up to a maximum of one
year up to a maximum of one-quarter of the                quarter of the totat corresponding                  The advances Intended within the eeanlng of Articles 107 and 11V
total corresponding appropriations for the
                                                           appropriations for the current year. However,      to finance the expenditure of the Guarantee Section of the furopean
                                                           such commitments shall not apply to new            Agricultural Guidance and Guarantee Fund and expenditure on food »ld
current year . However , such commitments shall            expenditure of a kind not yet approved in          say be pal d froa 10 Deceaber onwards.
                                                           principle in the budget of the current financial
not apply to new expenditure of a kind not yet             year. Similarly the advances within the meaning
                                                           of Articles 107 and 114, intended to finance the
approved in principle in the budget of the then            expenditure of the Guarantee Section of the
                                                            European Agricultural Guidance and Guarantee
current financial year .                                    Fund and expenditure on food Sid, may be paid
                                                            from 10 December onwards.
                                                                                                                                          Article 8
                                                             Artidi 8
                    Article 8
                                                             If the budget is not finally adopted at the        Unchanged
If the Budget is not finally adopted at the be­              beginning of the financial year, Article 78b of
                                                             the Treaty establishing the European Coal and
                                                             Steel Community, Article 204 of the Treaty
 ginning of the financial year , Article 78b                 establishing    the     European      Economic
                                                             Community and Article 178 of the Treaty
 jf the Treaty establishing the European Coal                establishing the European      Atomic Energy
                                                             Community shall apply to commitments and
 wd Steel Community, Article 204 of the Treaty               payments of expenditure of a kind already
                                                             approved in principle in the last budget duly
 istablishing the European Economic Community,               adopted.
 ind Article 178 of the Treaty establishing the
                                                             Payments may be made monthly in rcspca <>f         Unchanged
  Juropean Atomic Energy Community shall apply               any chapter up to one-twelfth of the
 ---pagebreak--- to commitments and payments of expenditure
                                                         for the preceJing fin.incid year; (hit may rot,
of a kind already approved in principle in
                                                        however, have the effect of placing at the
                                                        disposal of the Commission monthly
                                                        appropriations in exicss of one-twilfth of the
"the last budget duly adopted.                          sum proviJcJ for in the draft budget or, in the
                                                        absence thereof, in the preliminary draft budget.
                                                        Commitments may be entered into up to one
Payments may be made monthly in respect of any quarter of the total appropriations in respect of
                                                        the relevant chapter for the preceding financial
 chapter up to one-twelfth of the appro­                year increased by one-twelfth for each
                                                       completed month ; these commitment may not,
priations in respect of the relevant chapter           however, exceed the limit of the appropriations
                                                       provided for in the draft budger or, in the
 for the preceding financial yearj         this may    absence thereof, in the preliminary draft budget.
not , however , have the effect of plaoing at
 the disposal of the Commission monthly appro­
 priations in excess of one-twelfth of the stun
 provided for in the draft budget or , in the
 absence thereof, in the preliminary draft
 budget .   Commitments may be entered into up
 to one-quarter of the total appropriations
 in respect of the relevant chapter for the
 preceding financial year increased by one-
 twelfth for each completed month ;        these com­
 mitments may not , however , exceed the limit
 of the appropriations provided for in the
 draft budget or , in the absence thereof , In
 the preliminary draft budget .
 At the request of the Commission , and without       At the request of the Commission, and without       At the request of the Coaalsslon , and without prejudice to tht
                                                      prejudice to the provisions of the second           provisions of the second paragraph , the Council aay, acting by I
 prejudice to the provisions of the second            paragraph, the Council may, acting by a             qualified aajorlty, and as dictated by administrative requlreaenta ,
                                                      qualified majority, and as dictated by              and after consulting the European Pari lanent, authorize the
 paragraph,       the Council nay , acting by a       administrative requirements, authorize the
                                                      simultaneous expenditure of two or more             slaultaneous expenditure of two or core provisional twelfths.
 qualified majority, and as dictated by               provisional twelfths.
  administrative requirements , and after con-
 ---pagebreak---  6ultiri£ the European Parliament ,• authorize  If ihis decision concerns expenditure other than  Decisions concerning several provisional twelfths and relating     ~
                                                compulsory expenditure arising from the Treaty    to expenditure other than that necessarily resulting froa the Treaties
 the simultaneous expenditure of two or more   or acts adopted thereunder, the Council shall      or fron acts adopted in accordance therewith shall betaken pursuant
                                               forward such decision forthwith to the
 provisional twelfths .                        European Parliament within 30 days; the            to the procedure laid down in Article 78b(2) of the ECSC Treaty,
                                                European Parliament may, acting by a majority     Article 204 of the EEC Treaty and the third paragraph of Article 178 of
                                                of its members and time-niths <>l the votes cast, the Euratou Treaty, as amended by Articles 4, 13 and 21 of the Treaty
                                                take a differing decision on this expenditure ip  of 22 July 1975.
                                                respect of the portion exceeding the one-twelfth
                                                referred to in paragraph 2. This part of the
                                                Council Decision shal | be suspended until the
                                                European Parliament fias taken its decision. If
                                                the European Parliament has not taken a
                                               decision differing fropi that of the Council
                                               within the period laid ^own, the Decision of the
                                               Council shall be deemed to be finally adopted.
                                               The decisions referred to in the previous          Unchanged
                                               paragraphs shall include the requisite measures
                                               in respect of resources for the purposes of this
                                               Article.
As regards research and investment appropri­   As regards research and investment                 Unchanged
                                               appropriations, the provisions of Article 101
ations ! the provisions of Article 101 Bhall   shall apply.
apply.
 ---pagebreak---                        Artide 9
                                                       Article 9                                                    Artlci » 9
   The Budget and the supplementary or emending       The budget and the supplementary or amending        Unchanged
                                                      bujgets, as finally adapted, shall be published
   budgets , as finally adopted, shall be pub­        in the Official Journal of the European
                                                      Communities, at the instance of the President of
   lished in the Official Journal of the Euro­        the Europeanjarliament.
   pean Communities , at the instance of the Pre­     Artide 10                                                     Article 10
    sident of the institution which established
                                                       1.   The budget shall I* drawn up in European      Unchanged
                                                      units of account (EUA). The unit of account
   the final adoption of that budget .                shall be expressed as tjpe sum of the following
                                                      amounts of the currencies of the Member States
                                                      of the Communities :
                                                      DM                      0-838
                       Article 10                     £ Stg                  0-0885
                                                      FF                      115
    '  .                       I
                               ♦          .<
                                                      Lit                109
   1«    The budget shall be drawn up In units of-    FL                     0-28^
   account: the value of one unit of account shall be Bfrs                   366
I
                                                      lirs                   σΐ4
   0.88867088 grammes of fine gold.                   Dkr                    0-217
 »
                                                      £ Ir!                   0-00759
   2. In case of a chafige in the parity of the       2.    The value of the unit of account in a
                                                      national currency shall be equal to the sum of
   currency of -one or aore Member States in re­      the equivalents in that currency of the amounts
                                                      of the currencies set out in paragraph 1 . It shall
. lation to the unit of account , the Commission      be dctcrmincJ by the Commission on the basis
                                                      of the exchange rates recorded each day on the
   nay submit to the Council within two months of     exchange markets (' ).
   such parity change a prel 1*1 nary draft           The daily rates for conversion into the various
                                                      national currencies shal| be available each ^iy:
   of an amending budget adjusting the appropri­
                                                      they shall be published in the Official Journal
   ations and the revenue expressed In unl ts of       of the European Communities.
                                                      3.     Any operations involving conversion of the
   account, so that the voluae of operation pro­      European unit of account (EUA ) into a national
   vided for in the budget remains unchanged.         currency shall, where appropriate, be effected
                                                      on the basis of the exchange rate applicable on
   The adjustment of revenue shall be carried out     that day, without picjudice to »the special
                                                      provisions of Article II ?.
   in accordance with the provisions in Title III ,
   Section II .                                       (') OJ No C 21 , 30. 1 . 1176, p. 4.
 ---pagebreak---                          TITLE II                                            TITLE II                                          TITLE II
     PRESENTATION AND STRUCTURE OF THE BUDGET         PRESENTATION AND STRUCTURE OF THE BUDGET          PRESENTATION AND STRUCTURE OF THE BUDGET
                       Section I                                             Section I                                       Section I
             Présentation of the Budget                           Présentation of the Budget                         Présentation of the Budget
                      Article 11
                                                      Article il           •                                                  Article 11
                                                      The European Parliament, the Council, the     Unchanged
The European Parliament , the Council and the
                                                      Court of Justice and the Court of Auditor*
Court of Justice shall , each year before             shall, each year before 1 July, draw up an
                                                      estimate of their expenditure and their own
                                                      revenues for the following year.
1 July , draw up an estimate of their expendi­
ture and their own revenues for the following
                                                      The Economic and Social Committee shall,      Unchanged
                                                      before 15 June, forward to the Council an
                                                      estimate of its expenditure and its revenue ^
year .
                                                      for the following year.
                                                      These estimates shall be forwarded to the     Unchanged
The Audit Board and the Auditor of the Euro­          Commission and, for information, to the
                                                      European Parliament and to the Council not
pean Coal and Steel Community - shall , before        later than 1 July.
this date , forward to the European Parliament
and the Council an estimate of their expendi­
ture and their own revenues for the coming
year *
                           ι
The Economic and Social Committee shall ,
before this date , forward to the Council an
estimate of its expenditure and its own
revenue for the following year .
Hot later than 1 July, these estinates shall be
 forvrarded to the Coanisslon and - for Information ,
 4o the Council .
 ---pagebreak---                           Artide 12
                                                          Artiere 12                                                                                                          - 21 -
                                                                                                                                           Article 12
  I.   The Commission shall consolidate the
                                                          I.    The Commission sh.ill
                                                                                                               1. Unchanged
 istimates referred, to in Article 11' in the            -• prepare a general statenent vf-revenue * '
                                                             of the Cooaunltles and
 preliminary draft budget of the European                - consolidate fhe' estlcates referred to In /
                                                             Article 11 In the prel I Binary dr^ft budget
 Jomnmnitiea and bhall place it before the                   vhlch It shall place, before the Council, »
                                                             each year not later than' 1' Septeeber. Tt
 "ounoil each year not later than 1 September .              shall , at the sane tlee . forward the
                                                             prellalnary draft budqet to the European
                                                             Parllanent .
 I, Each section of the, preliminary draft               I'. The Cocnlsslon shall prepare the qoneral-        2. The Cosalsslon shall prepare the general Introduction to the
                                                         introduction to          preliminary draft j^uaget,  prellalnary draft budget, containing In particulars
 Budget shall be precededby an introduction pre          containing in particular:
 pared by the institution concerned.                     (a) financia] tablcs covering the entire Ijudget;    (a) financial tables covering the entire budget;
             • (• Illtll'    Iv • •            • v •
                                                         (b)-ps regards the Commission section:               (b)'asrregar<5s-the Coaalslon section:           . j,-,.
J. The prellalnary draft budget shall be acconpanl ed ,      – a definition of the policies justifying the      ■ - a definition of the policies Justifying the requesta for
                                                                 requests for appropriations,                         appropriations ,
 by the following stateaents :                               – an explanation of the changcj in                   • an explanation of the changes In appropriations fro> on#
                                                                 appropriations from one financial year to            financial year to the next,
* for each category of staff , a detailed IIbi                   ihe next,
                                                                 a general stjtcmcnt on the borrowings            - a detailed stateaent on the borrowings and loans policy.
     of budgetary ports and aotual numbers of                    anj loans po|icy.
     persons in post on the date of the sub­
                                                        3. Every other section of the preliminary             3. Unchanged
                                                        draft budget shall be preceded by an
     mission of the preliminary draft budget ,          introduction      prepared     by   the   institution
                                                        concerned.
     indicating their distribution to career
     braoket and administrative unit ( or principal      4. The preliminary drjift budget shall be            4. Unchanged
                                                         accompanied by working documents containing
     operational unit as regards the establish­          the following information:
     ments of the Joint Research Centre ))               (a) in respect of staff:                             (a) Unchanged
                                                             – for each category of staff, a detailed list
                                                                 of budgetary posts and numbers of
• where a ohange in the numbers of persons i ..                  persons in post tin the date of the
                                                                 submission of thi: preliminary draft
     post is proposed , a statement giving the                   budget, indicating their distribution by
                                                                 grade and administrative unit (or
     reason for requesting new posts |                           principal operational unit for the
                                                                 establishments of the Joint Research
                                                                 Centre),
     a monthly estimate of cash payments ar.c.               – where a change in t|ie number of persons
                                                                 in post is proposed,           a  statement
     receipts !                                                  justifying such char, res;
 ---pagebreak--- - a table showing, for the Cui dance Section              (b) in respect of expenditure inciuJing appro­    (b) In respect of expenditure Including coealtnent authorizations    –22
                                                              priations for commitment and appropriations       and appropriations for payaent:
   of the European Agricultural Cui dance and                 for payment:
                                                              – a table showing all the appropriations          - t table shoving all the coaaltaent authorizations and tha
   Guarantee Fund:
                                                                  for commitment and the corresponding             corresponding appropriations for payaent for tha
                                                                  appropriations for payment for the               financial year In question ;
   ( a) a statement of commitments and pay-'                      financial year in question ;
          Bents aB at 31 December of the pre­
           ceding year and & B at      1 September
           of the current yearj                           (c) in respect of subsidies tp the Supply Agency,  (0 In respect of subsidies to the bodies set up pursuant to the
                                                              to the bodies set up pursuant to the Treaties      Treaties or acts adopted in accordance therewith, to the
    (b)    a schedule of amounts of and due dates for fo ^ and to the European schools;                          Supply Agency and to the European Schools:
                                                              – a forecast of revenue and expenditure.           . ■ forecast of revenue and expendl ture prefaced by an
           seeable payments to the end of the                                                                       explanatory stateaent drawn up by the bodies concerned.
           current yearj
    (c) estimated payments for subsequent
           financial years.
4, As a preface to the preliminary draft                  5.    Furthermore, the Commission shall attach     5. Furtheraora , the Coaalsslon shall attach to the preliminary
                                                          to the preliminary draft budget:                   draft budget;
budget , the Commission shall submit a general            – a balance sheet of assets and liabilities for    • an analysis of the financial ranageaent for the preceding financial
introductory note containing in particular }                  the preceding financial year, as envisaged in    year, as envisaged In Article 83, and a balance sheet of assets and
                                                              Article 83, and                                  liabilities of the Coanunltles as at 31 Oeceober of the preceding
                                                                                                               financial year as envisaged at Article 84, and
- an outline of the policy Justifying the                 – an opinion on the estimates in respect of the
                                                              other institutions; that opinion may contain   . an opinion on the estlaates In respect of the other Institutions;
                                                              different estimates, duly supported.             that opinion aay contain different estlaates, which shall be
    requests for the appropriations;                                                                           accompanied by a full stateaent of grounds.
- an explanation of the changes in appro­
   priations from one financial year to the
    next .    .
Furthermore , the Commission shall attach to
the preliminary draft budget an opinion on
the estimates in respect of the other insti­
tutions ;    that opinion may contain different
estimates duly supported.
 ---pagebreak--- 5. The Commission may - if appropriate and   : 6. The Commission may, on its own initiative           6. The Commission nay, on Its own Initiative and. If appropriate,
                                               and, if appropriate, at the request of the             at the request of the European Parliament, the Council , the Court
at the request of the European Parliament ,    European Parliament, the Council, the Court of
                                               Justice and the Court of Auditors, present – by        of Justice and the Court of Auditors, present - by Beans of a letter
the Council or the Court of Justice – file ,   means of a letter of amendment –- proposals            of amendment - proposals for changes to the preliminary draft budget
                                               for changes to the preliminary draft budget            necessitated by the receipt of new lnfornatlon which was not available
before the adoption of the Budget , any        necessitated by the receipt of new information         at the tine the budget was drawn up.
                                               which was not available at the time the budget
amendment necessitated by the receipt of       was drawn up.                                          However, such a letter of amendment oust be put before Parliament
additional information .
                                                                                                      by the Council at least 15 days before the first reading of the
                                                                                                      draft budget , save in very exceptional circumstances*
                                                 7.     The Commission may, if necessary, submit  7. In the event of unavoidable, exceptional and unforeseen circumstances
                                                 supplementary or amending preliminary draft         arising, the Commission cay submit preliminary draft supplementary
                                                 budgets. Requests for supplementary or              budgets. Also, particularly to enable policies to be adapted, the
                                                 amending budgets from the European                  Commission may submit preliminary draft amending budgets which would
                                                 Parliament, the Council, the Court of Justice or
                                                 the Court of Auditors shall be forwarded by the     not alter the total amount of the annual budget and to which would
                                                 Commission to the Budgetary Authority. The          be attached the corresponding necessary draft regulations. Requests
                                                Commission may attach a different opinion.           for supplementary or amending budgets from the European Parliament,
                                                These budgets shall be submitted, examined           the Council , the Court of Justice or the Court of Auditors shall ba
                                                 prepared and finally adopted in the same form       forwarded by the Commission to the Budgetary Authority. The
                                                 and according to the same procedure as for the      Commission may attach a different opinion. These budgets shall be
                                                 budget whose estimates they are amending.           submitted, examined, prepared and finally adopted in the saae form
                                                 They must be substantiated by reference to the     and according to the same procedure as for the budget whose estlcates
                                                 latter. The competent authorities shall discuss     they are amending. They must be substantiated by reference to the
                                                 them in the light of their urgency. All            latter. The competent authorities shall discuss then in the light
                                                 supplementary budgets must be forwarded to
                                                 the Council by the date laid down for the          of their urgency. All supplementary budgets must , as a general rule,
                                                 submission of the preliminary draft budget for     be forwarded to the Council by the date laid down for the submission
                                                 the following financial year.                      of the preliminary draft budget for the following financial year.
 ---pagebreak---                       Article 13
                                                                                                                                                                          -24 -
                                                        Article 13                                                                        Article 13
  The Council shall establish the draft "budget         The Council shall establish the draft budget in      1. Unchanged
  in accordance with the procedure laid down            accordance with the procedure j;aid down in
                                                        Article 78 of the Treaty establishing the
  in Articles 78 and 78A of the Treaty estab­           European Coal and Steel Community, Article
                                                        203 of the Treaty establishing <he European
                                                       Economic Community and Article 177 of the
  lishing -the European Coal and Steel Community,      Treaty establishing the European Atomic Energy
                                                       Community.
  Articles 203 and 203a of the Treaty estab­
                                                       The draft budget shall be forwarded to the               Unchanged
  lishing the European Economic Community and          European Parliament and placed before it not
                                                       later than 5 October. The Council shall attach
  Articles 17? and 177a of the Treaty estab­           to    that    draft    budget    an    explanatory
                                                       memorandum defining in particular:                 ,
 lishing the European Atomic Energy Community.
                                                            – the relationship between the principal              - Unchanged
                                                                objectives of the Communities and the
 The draft of the Budget shall be forwarded to                  requests for appropriations,
                                                            – the changes in appropriations compared              - Unchanged
 the European Parliament and placed before it                   with the preceding financial year,
 not later than 5 October. The Council shall                – the Council's reasons for departing                 - the Council % detailed reasons for departing from the
                                                                from the preliminary draft budget, if It              preliminary draft budget. If It has done so.
                                                               has done to.
 attach to that draft budget an explanatory
 memorandum defining in particular:                                                                         2. The provisions of paragraph 1 are applicable, nutatls autandls,
                                                                                                            to draft supplementary and/or attending budgets.
– tne relationship between the principal ob­
     jectives of the Communities and the requests
     for appropriations ;
– the changes in appropriations compared with
    ■fche preceding financial yearj                  i
– "the Council 's reasons for departing froa
     the prellolnary draft budget, If H has done so.
 ---pagebreak---                      Artiole 14
                                                  Article 14                                                       Article 14
 The Budget shall be finally adopted in ac­      The budget shall be finally adopted in               Ihchanoed
                                                  accordance with Article 78 of the Treaty
  cordance with Articles 78 and 78A of the       establishing the European Coal and Steel
                                                 Community, Article 203 of the Treaty
  Treaty establishing the European Coal and      establishing      the      European        Economic
                                                 Community and Article 177 of the Treaty
  Steel Community, Articles 203 and 203a of      establishing the European Atomic Energy
                                                 Community.
  the Treaty establishing the European Economio
                                                 Once the huilget has been finally aJnpted, each
  Community and Articles 177 and 177a of the     Member State shall be bound to place at the
                                                 Commission's disposal the payments due in
  Treaty establishing the European Atomio Ener­  accordance with the procedure laid down by
                                                 this Financial Regulation.
  gy Community.
                    Section II                                   Section II                                           Section 11
           Structure of the Budget                      Structure of the Budget .                               Structure of the Budget
                    Article 15                                   Article 15                                            Article 15
 1.   The Budget shall consist of separate      1.     The budget ihall consist of                   Unchanged
                                                – . a général stateoent of the revenue .
 parts , called sections , dealing with the re­     of the European Communities, and
-venue and expenditure of the European Par­
 liament , the Council , the Commission and the – separate sections jubdivideq into statements
                                                    of revenue and expenditure of the European
 Court of Justioe .                                  Parliament, the Council, the Commission,
                                                    the Court of Justice and the Court of
                                                     Auditors. The revenue and expenditure of
 The revenue and expenditure of the Eoonoaic         the Economic and Social Committee shall be
                                                     entered in the section dealing with the
 •nd Sooial Committee shall be entered in the
                                                     Council and pretented in the form of a
 seotion dealing with the Council .   The reve­
                                                     statement of revenue and expenditure,
                                                     subdivided in the same way as the sections
                                                      of the budget and subject to the same rules.
 nue and expenditure of the Audit Board and
 of the Auditor of the European Coal and Steel
                                                2.     In each section, the items of revenue and
                                                expenditure shall be classified according to their
                                                  tyP«    or the use to which they are assigned
 Community shall be entered in two halves :
                                                under titles, chapier>, articles and items.
 one half in the section dealing with the Coun­
 cil and the other half in the section dealing
 lith the European Parliament .
 ---pagebreak---                                                                                                               - 26
The revenue and expenditure of the Economic
and Social Committee , the Audit Board and the
Auditor of the European Coal and Steel Commu­
nity shall "be presented in the foim of a state­
ment of revenue and expenditure , subdivided in
                                                                                                            /
the same way as the sections of the Budget , and
subject ifco "the sanse rules# These statements
of their revenue and expenditure shall "be
annexed to the section dealing with the Council .
                -----  - -- -,      -   - UC
 2, lasauo. section, the items of revenue and
 expenditure shall be classified according to
 their nature or the use to which they are
 assigned uadwr titles , chapters , articles and
 iteiÛSr,
 3. Back section of the Budget may include a      3. The budgetary nomenclature shall be          Unchanged
                                                  decided during the budgetary procedure in
 chapter in respect of provisional appropri­      respect of the apportionment of the revenue and
 ations not allocated and a chapter in respect    expenditure under separate titles, chapter* »nd
                                                  articles.
 of expenditure not specially provided for .
  I'he appropriations entered in these chapters
  shall ba -used only by means of transfer in
  accordance with the procedure laid down in
  Article 21 .
 ---pagebreak---                                                                                                                                 -*7
4. The budgetary nomenclature annexed to this    , 4. Each section of the budget may include a          5. Unchanged
                                                   chapter in respect ol provisional appropriations
Regulation shall be mandatory in respect of        and a chapter in tcspect of expenditure pot
                                                   specially provided /or. The appropriations
the apportionment of the revenue and expendi­      entered in these chapters shall be used only by
                                                   means of transfer ' in accordance with the
ture under separate titles , chapters and artic­   procedure laid down in Article 21 .
les .  It may be supplements within the frame­
 work of the budgetary procedure , as this nay
 become necessary.
                                                    5.    The following Annexes shall be attached
                                                     tojne Commission section:
                                                    – the statenent of revenue and expend! lure In
                                                        respect of the research and investment
                                                        activities referred to in Article 94,
                                                    *– ihe statenent of revenue and expenditure In
                                                        in respect of the Official Publications
                                                        Office of the European Cosiunltles –■-»'
                                                        referred to in Article 115 (2).
                                                    In addition, the q|ocument showing all the
                                                    borrowing and lending operations referred to -
                                                     In Article 16(3) shall be annexed .to . the
                                                     Budget.
                                                     Anide 16                                                        Article 16
                 Article 16
                                                     The buJget shall shqw:
The Budget shall 6how in the section relating        1. In the general statement of revenue:            1. Unchanged
to each institution:                                    – forecasts of revenue in respect of the
                                                            European Communities for the financial
(a) the budget appropriations made available                year in question divided into titles,
                                                            chapters, articles and items ;
for the financial year in question divided in­          – revenue for the preceding financial year
                                                            divided into titles, chapters, articles and
to titles , chapters , articles and items , fol­            items;
lowing a decimal classification system;                  – appropriate commenti on each sub*
                                                             diviuoru
 (b) the budget appropriations made available
 for the preceding financial year and the ao-
 tual expenditure for the last finanoial year
 ---pagebreak---                                                                                                               \
                                                                                                                                                                          - 28 -
for which the accounts have been closed, in­      2. In the section referring to each institution:       2. Unchanged
creased by the items carried forward , UBing         (a) as regards the statement of revenue:            (a) Unchanged
the same decimal classification)                         – the forecast of revenue for each
                                                             institution for the financial year in
( c) appropriate comments on each subdivision)               question, divided into titles, chapters,
                                                             articles and items, • following          •
such comments may be binding , in whioh case                 decimal classification system,
this fact shall be specifically mentioned)               – the revenue entered in the budget for
                                                             the preceding financial yeaf and the
                                                             revenue     established  for   the    last
( d) in an annex to the Budget , a list of posts             financial year for which account*
                                                             have been closed, using |he same
fixing the number of posts for each grade in                 decimal classification,
eaoh category and in each service )                      – appropriate        comments    for    each
                                                             revenue heading.
 ( e) annexed to the Commission section , a list
of posts in respect of officials , establish­
                                                     (b) as regards the statement of expenditure:       ( b) as regards the stateaent of expenditure:
ment staff of the Joint Research Centre and'             – concerning the budget headings which              • concerning the budget headings for which no distinction Is aade
                                                            do not include appropriations for                    between conaltnent authorizations and appropriations for
temporary staff occupying permanent posts ,                 commitment and appropriations for                   paysent;
                                                            expenditure:
classified by categories and grades , whose                 – the budget appropriations made                    . the budget appropriations aade        ( text unchanged)
                                                                 available for the financial year in
appointment is authorized within the limits                      question divided into , title*,
                                                                 chapters, articles and items,
of the budget appropriations .                                   following a decimal classification
                                                                 system,
However , as regards scientific and technical               – the budget appropriations made                    . the budget appropriations aade available .... ( text unchanged]
                                                I                available for the preceding
 staff , the classification may be based on .                    financial year and the actual
                                                                 expenditure for the last financial
different groups of grades , in accordance with                  year for which accounts have been
                                                                 closed, using the same decimal
the conditions laid down in each budget . The                    classification,
list of posts must mention the number of                – as for the budget headings which                  • concerning the budget headings which Include cosBltsent .
                                                            include appropriations for commit­                  authorizations and appropriations for paysent;
highly-qualified technical or soientific                    ment and appropriations for expend­
                                                            iture:
personnel who are accorded special advantages
under the Staff Regulations applicable to
 these officials .
 ---pagebreak---                                                        . the appropriations for payrent cade available for the financial ~ *S
                                                          year In question and the preceding financial year and tha actual
                                                         expenditure for the last financial year for which the accounts
                                                         have been closed, using the sane declaal classification systes-
                                                      • In the remarks coluin;
                                                         (a) the coast taent authorizations for the financial year In question
                                                              •nd for the previous financial year, and
                                                         ( b) the cosiltsents entered Into during the last financial year
                                                              for which the accounts have been closed, as well as a
                                                              schedule of due dates for payaents.
                                                    " appropriate cossents on each subdivision; such conaents say be
                                                      binding, tn which case this fact shall be specifically nentloned;
                                               (c) Unchanged
                                                   • Unchanged
                                                   - unchanged
                                                   - Unchanged
The list of posts shall constitute an absolute
                                                   - Unchanged
limit for each institution; no appointment
nay be made in excess of the limit set .
 ---pagebreak--- as regards borrowing and lending operations:    3. Unchanged
(a) in the Commission section :
    – the budgetary headings corresponding
        to the categories of operation which
        are generally accorded a token entry,
    – remarks which fhow in particular the
         legal basis, where appropriate, the ~
         annual volume of operations envis­
         aged and the financial guarantee given
        by the Commission in respect of these
        operations;
(b) annexed to the Commission section:
    – current capital operations and . v
          debt nana ge men t,"
    – for information, the capital operations
          and debt nanagement for - tte
          financial year In question.
 ---pagebreak---                         TITLE III                                        TITLE III                                                 TITLE III                        - 31
            IKPIIHENTATIOH OF TO BUDGET                   MPLEIOTATIOK OF THE BUDGET                                     IMPLEMENTATION OF THE 6UDGET
                        Section I                                        Section I                                                 Section I
                  General Provision»                               General Provisions                                          Généra) Provision!
                        Artici » 17                                      Artici * 17                                               Artide 17
                                                  Unchanosfl                                       Onchanged
The Budget shall be implemented in
accordance with the principle "that the
 authorizing officers and accounting officer!
 are different individual !.
 The appropriations shall he administered by      Unchanged                                        Unchanged
 the authorizing officer who alone is empowered
 to enter into commitments regarding eapenditurj
 establish sums due to he collected and
 issue receivable Orders and payment orders .
 The operations of collection or payment shall
 be carried out by the accounting officer.
 No financial controller or accounting officer
 can exercise the functions of an authorizing
 officer.
    •      «X MC                . . ..  –                                                          No revenue shall be collected and no expenditure effected unless
                                                                                                    credited to or charged against an article In the budget*
                    Article 18
                                                 Article IH                                                                       Artici * 18
  The Commission shall implement the Budget on   "I lie Commission slull implement the huJgci on    Unchanged
                                                 us own responsibility in accorJjncc with the
  its own responsibility in accordance with the  provisions of thi* Financial Regulation and
                                                 within the limits of the appropriations allotted.
  provisions of this Financial Regulation and
  within the limits of the appropriations allot­
  ted.
 ---pagebreak--- The requisite powers for the Implementation       The requisite powers for the implementation of    Unchanged
                                                  the sections of the budget relating to the
 of the sections of the Budget relating to the    Fiimpcan Parliament, the Council, the Court of
                                                  Justice anJ I he Court of AuJitort are conferred
 European Parliament | the Council or the Court   by the Commission upon each of these
                                                  institutions.
 of Justice are conferred by the Commission up­
                                                  With the exception of the cases provided for in   unchanged
 on each of these institutions.                   Articles 43, 52 and S5, the Commission and the
                                                  other institutions may delegate powers         in
                                                  accordance with the conditions laid down      by
 With the exception of the oases provided for     their internal rules of procedure and within the
                                                  limits which they themselves Jay down in     the
 in Articles 43 , 52 and 55i the Commission and   act of,.de^egatton.
 the other institutions may delegate powers in          Delegates ni.iy act only within the limits  unchanged
                                                  of the powers expressly conferred upon them.
 accordance with the conditions laid down by
                                                  The acts of delegation shall be cojtaunlcated '
                                                  to al.l the parties concerned In
 their internal rules of prooedure and within
                                                  accordance with the measures of imple­
                                                   mentation envisaged in Article 118.
 the limits which they themselves lay down in
 the instrument of delegation of powers*          Save as otherwise provided, the Court of          Unchanged
                                                  Auditors     and   the   Economic and     Soda]
                                                  Committee shall, for the puiposes of this
                                                  Financial Regulation, be treated as institutions
 Those delegated may act only within the limits   of the Communities.
 of the powers expressly conferred upon then.
 Hie instruments of delegation of powers must
 be notified to all the parties concerned in
 accordance with the seasures of Iiplesent-
 ation envisaged in Article 118.
Save as otherwise j.i-ovided, the Economic and
Social Committee , the Audit Board and the
Auditor of the European Coal and Steel Commu­
nity shall , for the purposes of this Financial .
Regulation, be treated as institutions of
the Coraaunities .
 ---pagebreak---                      Article 19                                  Art , ,           Artlcli 19 - 3*
    Each institution shall appoint a financial         Unchanged         unchanged
    controller who ohall be responsible for moni­
    toring the commitment and authorization of
    all expenditure , and also for monitoring the
    receipt of all revenue .
   The check civ I ! K carriedout by that official
   by means of inspection of the files relating
   to expenditure       revenue and , if necessary.
   on the spot .
   The financial controller may be accisted in hlB
   iuties by one or rooro assistant financial con­
   trollers.
   The special rules applicable -to such officials ,
   Hhirh shall be laid down within the l"ru.Tx'.:c r.T
•< of the measures rf implementation envisaged
       In  Article 118 , shall be so formulated as
    to guarantee that they are independent in the
     discharge of their duties .  The measures taken
     in respect of their appointment and proootion,
     disciplinary action or transfers , and the va­
     rious methods of interruption or termination
     of appointment , shall be covered by decisions
 ---pagebreak--- which give the grounds therefor to he for­
warded, for information, to the European
Parliament , the Council and the Commissi on.
                                                                                   *< iUI « iv . jj .
Thff persons concerned , and the institutions    Unchanged            Unchanged
employing -( hem , nay institute proceedings be­
fore the Court of Justice .
                   Artide 20                               Article 20
              I
                                                                                Arti eli 20
In each institution , the collection of reve­    unchanged            Unchanged
nue and the payment of expenditure shall he
carried out by an accounting offioer.
This accounting officer shall he appointed hy
the Institution.
Without prejudice to the system provided for
in Articles 4 end 5 of Regulation ( EEC)
Ho 729/70 and subject to the provisions of
Article 56 , second paragraph , and of Artic­
le 57 , the accounting officer alone is em­
powered to manage funds and assets . Ee shall
he responsible for their care .
He may he assisted in his duties hy one or
more assistant accounting officers , appointed
under the same conditions as the accounting
officer.
 ---pagebreak---                 Article 21                        Article 21                                                             Artici
                                                  1 . The appropriations shall be classified by        1 . Unchanged
1 . The appropriations shall be classified by     chapter and article.
Chapter and Article .
                                                  2. Each Institution may adjust the                   2. Unchanged
                                                  appropriations for payment In ■ • – . s
2 . The appropriations entered under each Chap­   its section of the budget to meet its
                                                  requirements. It shall inform the Commission
ter of expenditure shall not be used for pur­     and the Budgetary Authority accordingly.
poses of other Chapters of expenditure .          3. (a) The European Parliament, the Council,         3. ( a) Unchanged
                                                          the Court of Justice and the Court of
                                                          Auditors m;iy make transfers between
3. However , the Commission may propose to the            chapters of a title in their sections of the
                                                          budget and within each chapter.
Council that appropriations be transferred from
                                                         Transfers by the Economic and Social                  Unchanged
one Chapter to another .   Proposals made by              Committee shall be decided by the
                                                         Council. . The      Commission      and   the
other institutions for transfers between Chap­            Budgetary Authority shall be informed
                                                         of these transfers.
ters , shall be automatically forwarded to the
Council]   the Commission may, when forwarding
these , attach its opinion .
The Council Bhall act by a qualified majority
taking into account the urgency of the matter
and shall inform the European Parliament of its
decision.
If the Council has not acted within sii weeks ,
the transfers of appropriations shall be
deemed to be approved,
 AB regards the transfers of appropriations bet­
 ween Chapters within Title I , the Council Bhall
 ---pagebreak--- act by qualified majority within fc.r weeks . If     1 (H) 'The Commission may make transfers
                                                            between chapters of titles relating to naff  ( b) Unchanged " ' •- .. ,r -. 36
the Council has not acted within that time-                 and operating expenditure, and, in j»ny
                                                            title, within euch chapter.
limit , the transfers of appropriations shall be
                                                   4. Other transfer^ shall be subject to the            4. Unchanged
deemed to be approved.                             following procedure:
                                                   Requests for transfers shall be sent to the
 With regard to proposals for transfers froir. the Commission and forwarded by the latter to the
                                                   European Parliament and the Council.
 Chapter 'Provisional Appropriations not allo­
 cated " to other Chapters , the Council shall ,   Transfers relating to expenditure necessarily
                                                    resulting   from the Treaties or from acts adoptet
                                                    in accordance therewith shall be deemed to t>e
 except in cases of extreme urgency, consult
                                                    approved if the Council, acting by qualified
 the European Parliament without delay upon         majority and after consulting the European
                                                    Parliament, has no{ taken a decision to the
 receipt of the proposal .   The European Par­      contrary within six weeks from the date on
                                                    which the Council received the request for a
                                                   transfer.
 liament shall give its opinion early enough
                                                    Transfers relating to expenditure not necessarily
 to allow the Council to take cognizance of         resulting   from the Treat! es or from acts adqpte J
                                                    in accordance therewith shall be deemed to be
 it and to act within the period laid down in       approved if the European Parliament, after
                                                    consulting the Council, has not taken a decision
 this Financial Regulation.                         to the contrary within six weeks from the date
                                                    on which the European Parliament received the
                                                     request.
 4 . In each section , transfers between Articles
                      i
                                                    Transfers relating |jo expenditure necessarily
 within each Chapter shall be made by the Com­       resulting from the Treaties or from acts adopte I
                                                     in accordance therewith and other expenditure
 mission , which acts taking into account the        shall be deemed to be approved if neither the
                                                     Council nor the European Parliament has
 urgency of the matter .   As regards the sections   taken a decision to the contrary within six
                                                     weeks from the dare on which the fwo
 which do not relate to the Commission , such        institutions received the request.
 transfers shall be deemed effective if the Com­     If, in the case pro\idcd for in the preceding
                                                     subparagraph, the European Parliament and tbe
 mission does not make a decision within six         Council reduce tl-/ transfer by different
                                                     amounts the lower ^ mount accepted by one of
 weeks from the date when the proposal is lodged.    the two institutions shall be deemed to be
                                                     approved.
 ---pagebreak---                                                                                                                                                                         - η
   Every proposal for a transfer within a Chapter
   or between Chapters shall be subject to the
   approval of the Financial Controller who shall
«
   attest that the appropriations are available .
   5 . Unless otherwise decided In due
                                                   5. Every proposal for an adjustment to the            5. Unchanged
   and proper form under the budgetary procedure ,
                                                   appropriations for jiaymcnt or for a transfer
                                                   within a chapter or between chapters shall be
  appropriations can be transferred only to        subject to the approval of the Financial
                                                   Controller, who shall attest that (he
                                                   Appropriations are available.
  entries in the Budget for which the Budget
  has authorized appropriations or has made a
  * token entry' ,
  6. This Article shall apply to the appropri­      6.   Unless otherwise decided in due and            6.   Unchanged
                                                    proper form under the budgetary procedure,
  ations for revenue allotted to a purpose under    appropriations can bj: transferred only to articles
                                                    in the budget for which the budget l»as
  Article 3 ( 2), only as long as the allotment     authorized appropriations or carries a 'fofcep
  of such revenue to that specific purpose in
  maintained.
                                                    7. This Article shall apply to the                  7. This Article shall apply to the appropriations corresponding
                                                    appropriations for revenue allotted to a purpose
                                                    under Article 4 (3), only as long as the            to revenue earmarked for a specific purpose under Article 5, only
                                                    allotment of such revenue to that specific          as long as the revenue is not used for any other purpose.
                                                    purpose is maintained.
 ---pagebreak---                  Article 22
                                                 Article 22                                •                         Artici * 22
îotwithstanding Article 4 ,                       1 . Notwithstanding Articles 3 and 23, the          Unchanged
                                                 following deductions may be made from all
                                                 bills, invokes or statements, which shall then be
[a) the following deductions may be made from    passed for pa) merit of the net amount:
    all 1)1116 , invoices t r statements , which  (a) lines imposed on a party to a contract ;
    gfrall then be passed lor pc.yme;it «>J" tho
                                                 (b) adjustments of amounts paid in error which
    net Ejaountt                                     ; can he achieved by means of deduction
                                                         beforehand against a payment of the same
    – fines imposed on a party to & contract          ! kind of expenditure out of appropriation*
                                                      1 under the chapter, article and financial year
      or an accented tender|                             in respect of which the excess payment was
                                                         made;
                                                       »
    – adjustments of amounts paid in error       (c) the value of apparatus and equipment tor
                                                         scientific and technical purposes, and the
      which can be achieved by means of de­              value of vehicles, equipment and
                                                       ! installations taken in p:rt exchange in
       duction beforehand against a payment of          'accordance with commercial usage upon
                                                         purchase of new apparatus, vehicles,
       the same kind of expenditure out of               equipment and installations of the same
                                                        'kind.
       appropriations under the Chapter, Ar­
                                                 Discounts, refunds and rebates on invoices and
       ticle and financial year in respect of    hills shall not be recorded as separate revenue.
       which the excess payment was made ;
                                                 2.        Notwithstanding Article 3, the following
                                                 sums aay be re-used:
    – the value of apparatus and equipment for
                                                 (a) revenue arising from the refund of amount*
       scientific and technical purpocer , cir.d         paid in error against budget appropriations;
       the value of vehicles , equipment r: •"   (b) i proceeds from the Mippjy of goods and
                                                         services to other institutions or bodies, •             » 1 »    »  J:
       installations taken in part exclumi.-. n.         Including refunds by such institutions or              * -    . ■ .!■  ,
                                                         bodies of mission allowances paid–        •
       accordance with commercial usa^e upon             on their behalf;
       purchase of new apparatus , vehicles ,    (c) insurance payments received;
       equipment and installations of tbe        (d)          revenue from the sale of publication!
                                                         and films;
       kind.
                                                 (e) refunds of taxes – incorporated in the price
                                                         of the products or services provided to the
                                                         Communities – effected by Member States
                                                         pursuant to the provisions of the Protocol
                                                         on the Privileges and Immunities of the
                                                         European Communities;
 ---pagebreak---  Discount b , refunds and rotates en                 (f) rcvrnue (wm the supply ef go&dt »nJ
                                                     MTvlfc* against pr/mnti
 invoiccc and tills shall not toe re­
 corded ao separate revenuej                       (fi)       proceeds from the tale of vehicles,
                                                        equipment and installations and also
                                                        spjMMiu* anJ equipment fat technical tnd
the following sums shall be re-usodi                    scientific purposes, tiUpmci of when
                                                        replsceJ}
– revenue arising from the refund of              Such iumi must be re-u&cd before the end of the
  amounts paid in error against budget            financial year following that in which the
                                                  revenue was collected.
  appropriations}
                                                  The accounting systee shall Include suspense
– the proceeds froa the supply                    accounts in order to record the rc-use of sums
                                                  in respect of revenue and of expenditure.
  of goods and services to other institu­
                                                  3.      Notwithstanding Arjicles 3 and 23,
  tions cr bodies , including refunds             repayn en ts cade by third parties «ay be deductei
                                                  froo expenditure in cases where the Institution
  by such institutions or bodies of sission       has effected a payaent^for whichlt is legally
                                                 liable to its creditors bat vhere all or apart
  duty allowances effected on their behalf; . s,
                                                  thereof has been paid on behalf of those third
                                                 parti es^^             – -
– insurance payosnts received;                    4. Notwithstanding Artjde 3, adjustments
                                                 may be made in respect           losses and gains
                                                 made on exchange rates ..vfien
                                                 transferring funds and a] so on debtor and
– the revenue arising from the sale of           creditor interest rates re|ating to financial
                                                 transactions, only the balance being shown as
                                                 revenue or expenditure.
  publications and filmsj
– refunds of taxes - incorporated                5. In the cases referred to in paragraphs 1 (c)
                                                 and 2 (b), (d), (f) and (g), re-use and deduction
                                                 arc possible only if provision is made therefor
   in the price of                               in the roaarks coluanjn the Budoat,
   the products or services provided to
  the Communities - effected by Msmbsr
  St ate b pursuant to the provisions of
  the Protocol on the Privileges Mid Im­
  munities of the European ConununiticBi
 ---pagebreak---  – the revenue from the Bupply of goods               40
    and services against payment }
 - the proceeds from the sale of vehicles ,
    equipment and installations and also
    apparatus and equipment for technioal
        and scientific purposes , disposed of
        when replaced.
       Such suns Bust be re-ased         •'
     "before the end of the financial year
     which follows the one in which the reve- '
     nue was collected;
[c ) adjustments may be made in respect of the
      losses and gains made on the rates of
      exchange when transferring funds and
      also on debtor and creditor interest
      rates relating to financial transactions, o/ily
      the balance being shown as revenue or
      expenditure .
rhe accounting plan shall Include sus­
pense accounts in order to record the re-use
of suns either in respect of revenue or of
expenditure .
 ---pagebreak---                         ^ ciion II                                       tectlon II                                           Section II
                     Budgetary revenue                                Budgetary revenue                                    Budgetary revenue
             Management of available funds                      Management of available funds                         Hanageoent of available funds
                1 . General provisions                              • GeneraT provisions                               1 . General provisions
                       Article 23                                         Article 23                                          Article 23
1 . Every measure such as to gl ve                  1 . Every measure such as to give rise to or to   1 . Unchanged
                                                    modify a debt due to the Communities must be
rise to a debt due to the Communities must be       preceded by a proposal fiom the competent
                                                    authorizing officer. Such proposals shall be
preceded by a proposal from the competent           forwarded to the Financial Controller of the
                                                    institution for his approval. They shall mention,
authorizing officer .       Such proposals shall be in particular, the type of revenue, the
                                                     estimated amount thereof and the budget Iteu
forwarded to the official responsible for            to uhlch It Is to be booked and also the naoe
                                                     and description of the debtor. The purpose "
financial control in each institution .       They   of the approval of the Financial Controller
                                                     shall be to establish that :
shall mention , in particular , the type , the
estimated amount and the budget item to which
the revenue is booked and also the name and
description of the debtor . They shall be re­
corded , after approval by the official res­
ponsible for financial control , in accordance
with conditions to be determined within the
framework of the measures of implementation
 envisaged in Article 118 . The purpose of the
approval of the official responsible for fi­
nancial control shall be to establish that :
( a) the revenue is booked to the correct           (a) the revenue is booked to the correct budget    (a ) Unchanged
                                                        item :
      budget item ;
 ---pagebreak---  the proposal is in order and conforms
                                                  (h) the proposal is in orJcr qnJ conforms to the      ( b) Unchanged                                            - 42 -
                                                       relevant provisions, in particular, of the
                                                       budget and of the regulations and also of
to the relevant provisions , in parti cular ,          all acts made in implementation of the
                                                       Treaties and of the Regulations, and to the
 of the Budget and of the regulations said         • principles of sound financial management.
 also of all acts made in implementation
 of the Treaties and of the Regulations , and
to the principles of sound financial manage­         .Forward proposals may be mads In respect of
                                                     .certain Items of current revenue In accordance
ment .
                                                      with the measures of Implementation envisaged
                                                      In Article 118.
The official responsible for financial con­
                                                     The Financial Controller may withhold his
                                                     approval. The superior authority of the            The Financial Controller may withhold his approval . The
trol may withhold his approval .  The authorizing
                                                     institution may, by a decision stating the full   superior authority of the institution nay, by a decision
officer may , by a decision stating the full
                                                     reasons therefor, and on its sole responsibility, stating the full reasons therefor, and on its sole resDonsiblll ty
                                                      disregard this. _        This decision shall be  overrule this refusal . This decision shall be final and binding;
reasons therefor , and on his sole responsibi­
                                                      final and binding; It shall be coanuntaated      it shall be comiunlcated for infornation to the Financial Controller
                                                     for Information to the Financial Controller.      The superior authority of each Institution shall quarterly
                                                      The superior authority of each institution shal  '"for® *he Court of Auditors of all such decisions
lity, disregard this .    The decision of the        periodically : inform the Court of Auditors
                                                     of all such decisions.
authorizing officer shall have executory
effect ; it shall be communicated for inform­
ation to the Financial Controller .    The
superior authority of each institution shall
periodically inform the Audit Board of all '
 such decisions.
2 . When the authority responsible for the          2.     The competent authorizing officer shall     2, Unchanged
                                                    draw up, in respect of every debt established, a
institution waives the right to draw up             recovery order which shall be sent with
                                                    supporting documents to the Financial
 a document establishing a debt or to recover       Controller for his prior approval. Such
                                                    recovery orders shall, after they have received
 sums due , it shall inform the official in         the approval of the Financial Controller, be
                                                    registered by the accoutlng officer In accordarpe
charge of financial control thereof .               with the measures of implementation envisaged
                                                    in Article 118 .
 ---pagebreak---                                              The purpose of the approval shall be to         Unchanged
When the official responsible for financial  establish that :
control finds that a document establishing   (a) the revenue is booked to the correct budget
                                                 item ;
a debt has not been drawn up , or that a sum
                                             (b) the order is in order and conforms to the
due has not been recovered , he shall inform     relevant provisions;
                                             (c) the supporting documents are in order;
the institution thereof.
                                             (d) the debtor is correctly described;
                                             (e) the due date is indicated;
                                             (f) the order conforms to sound financial
                                                 management;
                                             (g) the amount and currency of the sum to be
                                                 recovered are correct.
                                             If approval is withheld, the second
                                             subparagraph of paragraph 1 of this Article
                                             shall apply.
 ---pagebreak---                                                                                                                                                                     - 44
                                                    Article 24
               Article 24                                                                                                               Article 24
                                                     1.   The    accounting officer       shall  assume         1 , Unchanged
Phe accounting officer shall assume responci-       responsibility for the recovery orders duly
                                                    drawn up.
aility for the receivable orders duly drawn
                                                    He shall exercise all due diligence to ensure that
                                                    the resources due to the Communities are
ip .
                                                    recovered at the due dates indicated in the
                                                    recovery orders, and he shall see to it that the
                                                    rights of the Communities are safeguarded.
 He shall exercise all due diligence to ensure
 that the resources due to the Communities are      The accounting officer shall inform the
                                                    authorizing officer and the Financial Controller
 recovered at the due dates stipulated in the       of any revenue not recovered within the time
                                                    limits laid down.
 receivable orders , and he shall see to it that
                                                    2.    If the authorizing officer waives the right           2. Unchanged
 the rights of the Communities are safeguarded.     to recover an established debt, he shall send
                                                   beforehand a prop^al for cancellation to the
                                                    Financial Controller for his approval and to the
 The accounting officer shall inform the autho­     accounting officer for information.
 rizing officer and the Financial Controller       The purpose of th<- approval of the F inancial
                                                    Controller shall be to establish that the waiver is
 of any revenue not recovered within the time-     in order and conforms with the principles of
                                                   sound financial management. The proposal
 limits laid down.                                 concerned shall be registered by the accounting
                                                 - officer.
                                                                                                                    If approval is withheld , the superior
                                                                                                                    authority of the institution may , by
                                                   If approval is withheld, the superior authority                  a decision stating the full reasons
                                                   of the institution nrijiy, by a decision stating the             therefor , and on its sole responsibility, <
                                                   full reasons therefor, and on its sole                           override this refusal . • This decision shall -    !
                                                   responsibility, disregard             This decision' shall       be final and binding } it shall be
                                                   be final and bindinj;; it $: . !! be communicated                communicated for information to the
                                                   for information to t||»e Financial Controller. The               Financial Controller . The superior
                                                 » superior authority of each institution shall                     authority of each institution shall
                                                   periodically inform j |he Court of Auditors of all               guarterl ^ inform the Court of Auditors
                                                   such decisions.                                                  of all such decisions .
                                                   3.    When the Financial Controller finds that a             3. Unchanged
                                                   document establishing a debt has not been                  '
                                                   drawn up, or that a sum due has not been
                                                   recovered, he sh^ll inform the institution                j
                                                   thereof.                                                  J
                                                   4.    The measures (jf implementation in respect             4. Unchanged
                                                   of this Article shall be laid down in accordance
                                                   with the provisions «»f Article 1 18.
 ---pagebreak---                                                                                                                                    - 45
                                                                             Article 25                                 Article 25
                   Article 25
                                                         Unchanged                                            Unchanged
A reoeipt shall be issued in respect of all
cash payments made to the accounting officer .
                    2 . Own resources
                                                            Article 26                                                  Article 26
                        Article 26
                                                            1.    Estimates' of the own resources and, if     Unchanged
    1 . Estimates of the own resources to be paid           appropriate, of the contributions referred to in
                                                            Article 4 (?) and (3J of the Decision of 21 April
    by each Member State shall be entered in the            1970 to be paid by each Member State shaU be
                                                            entered in the budget, expressed in units of
    budget , expressed in units of account as de­           account as defined in Article 10. They shal) be
                                                            made available and paid over In accordance-'
    fined in Article 10 .      They shall be made avail­    with Title II of Council Regulation (EEC,
                                                            Euratom, ECSC) Jyo 2/71 of 2 January 1971
    able and transferred in accordance with
                                                            implementing the Decision of 21 April 1970 on
                                                            the replacement of financial contributions from
    'i'ltle 11 of Council Regulation ( i&C , ifiuraiom ,    Member States by the • Communities' own
                                                            resources (' ), as last amended by Regulation
    SC3C ) No 2/71 of 2 January 1971 implementing
    the Decision of 21 Jirril 1970 (^) on the re­
    placement of financial contributions from
    Member States by the Communities' own re­
    sources , as amended by Regulation (ECSC , EEC ,
      hiratom ) Mo $06/Tl (^).                           (») O!NoL3 0f 5.1.1971 , p. 1 .
                                                         (■) Regulation currently being drawn up to„ amend
     ( 1 ) OJ Ko L 3, 5 . 1 . 1971 , p. 1 .                  Regulation (EEC, Euratom, ECSC) No 2/71.
     ( ) OJ lio L 69 , 5 . 4 . 1973 , p. 1 .
 ---pagebreak---                                                                                                                                  - 46-
                                                        2.    This provision takes account of Article 131
?. However , for the financial year In question ,"      of the Act of Accession in respect of the new
                                                        iMember States.
each Heciber State shall transfer the own resources
actually recorded up to the percentage provided for
In the fourth subparagraph of Article 3(1) of the
Decision of 21 April 1970.
           3. vinanriial contributions
                from Member States
                                                            Article 27                                                Artlcle 27
                   Article 27
                                                            The own resources paid by the Member States      Del eted
                                                            pursuant to Title II of Council Regulation
 "he financial contributions from the Member                (EEC, Euratom, ECSC) No 2/71 of 2 January
                                                             1971 shall be credited to the current financial
 .tates fixed "by the Budget shall be expressed (           year regardless of the d.tte of establishment
                                                            defined in Article 2 of this Regulation."
   n units of account as defined in Article 10 .
                                                    I
                                                    I
  "hey gfraTi be converted into the respective      i
   national currencies on the basis of the re-
   ationship existing on the day of their pay-
   sent between the weight of fine gold con-          ,
   ained in a unit of account' as above defined
   nd the weight of fine gold corresponding to        .
   .arity in respect of ihe relevant currency         j
       declared to the International Monetary
    Nond .  Should the currency of one or more of
    he Member States cease to have any declared
    arity with the International Monetary Fund ,
     he Comni scion shall propose appropriate
 ---pagebreak---                                                                                                  '7
                                                                                               - 47
                     Article 28                                  Article 28         Article 28
The financial contributions thus expressed               Deleted            Deleted
in national currencies shall, In accordance with
 the procedure laid down In Articles 31 to 37 Inclusive,
 be entered by each Heober State to the credit of
 special 'Contributions' accounts , opened by the
 Comnlsslon with the Treasury, or the body appointed
 by the Heeber State.
The amounts entered to the credit of those
 accounts shall be placed at the disposal of the Con-
mission in accordance with the conditions laid
down in Article 36 .      For this purpose , the
Commission shall forward to the Treasuries
or the bodies appointed by the Member States
its orders and instructions which shall be
carried out as soon as possible .          Such deposit
accounts shall be nalntalned without charge to the ,
Communities , and do not earn interest for them .
 ---pagebreak---                    Article 29                                Article 29
ie amounts entered to the credit of the accounts referred    The balance from each financial year, calculated
                                         «
                                                             in accordance with Article 24 of Regulation
j in Article 28 shall retain the value corres-               ( EEC, Euratom, ECSC) No 2/71 as amended,
                                                             shall be entered as revenue in the case of a
                                                             surplus or expenditure in the case of a deficit in
inding to the parity in force on the day of                  the budget of the second subsequent financial
                                                             year.
sposit in relation to the unit of account as
jfined in Article 10 .
                                                             However, if the situation requires, a decision
                                                             may be taken to previously enter all or part of
                                                             this balance in a supplementary budget for the
lould the parity of the currency of a Member                 financial year immediately following the
                                                             financial year in question.
tate in relation to the unit of account be
jdified , there shall immediately be an ad-
ustment of the balance of those accounts ,
ty means of a further payment made by the
lember State or Member States concerned or
y means of a repayment made by the Commission .
                                                           Article 30
                   Article 30
                                                           1 . The contributions provided for in Artjcle 4
                                                           (6) of the Decision of 21 April 1970 shall be
 n adjustment of the contributions due shall                paid over as follows:
 e made , where necessary , during the month              •– seven-twelfths of the amount shown in the
                                                                budget not later than 31 January,
 ollowing the final adoption of the amending              – the remaining five-twelfths not later than 15
                                                                July.
 udget as provided for in Article 10 or a
 ouncil decision noting the Implications of               2.      Any contribution or additional payment
                                                          due to the budget from the Member States must
                                                          be entered in the account(s) of the Commission
 rarity changes.                                          within 30 days from the date on which funds
                                                          are called for.
     Financing the financial requl renents of the
     CornunHles within the franework of the               3.     These various payments shall be entered in
               budgetary expenditure
                                                          the account provided for in Article 7 (1 ) of .
                                                          Regulation (EEC, Euratom, ECSC) No 2/71 and
                                                          shall be subject to the provisions of Article 9 (2)
                                                          of this Rcculation
 ---pagebreak---                                                                                                             Article 31
                  Artioie 31                         Article 31
                                                     The Commission shall, /our times a year,  The Commission shall , four times a
                                                     present the European Parliament and the   year , present the European Parliament
, The financial requlreaents as estimated nonthly    Council with a report on the Communities' end the Council with a report on the
                                                     financial situation.                      Communities' financial situation ,
aall be met by the Member States in propor>                                         %
                                                                                               including both receipts and expenditure
ion to the relative share laid down in the                                                     There shall be attached to these re ¬
                                                                                               ports a comprehensive statement on the
adget for each of them .                                                                       sums maintained from previous years ,
                                                                                               as veil as on any changes brought about
                                                                                               by supplementary or amending budgets .
he final adoption of a supplementary or amend-
og budget shall , if this is necessary , give
ise to the amendment of the abovementioned
elativs share .
 • From the sum due from it each Member State      _
 hall deduct the amount of own resources to bo
 aid the same month , in accordance with thv
 provisions of Article 9         Régulation (EEC f
 Euratom , ECSC) No 2/71 .
                         ι
 3. However , those Member States which, according
 to "the budget estimates , would not be bound to
 nake financial contributions , shall transfer
 monthly , as own resources , a sum corresponding
 to the relative share applied to the financial
 requirecsnts referred to In paragraph 1 .
 ---pagebreak---                    Artici© 3*
                                                  Article 32
Khen closing the accounts of each financial       The payments of own resource* provided for in
                                                   Article 26 shall be effected ,f\ national currency
                                                   and convened into and entered in the account*
year , the Commission shall draw up a table of     in unit) of account.
rums paid showing the difference between the      The contributions referred to in Articles 26 and
amount actually paid by the Member States and     .10 shall he expressed in units of account; their
                                                  payment shall be effected in iiationa! currency.
that which they should have paid in accord­
ance with the revenue and expenditure account
for the financial year in question.
The total amount thus calculated shall be re­
funded to them by means of a deduction froa
the next monthly payment to be mads .
 At 1 );o came time , if required and up to a
maximum amount of 400 million units of account ,
 the Member States shall , at the request of
 the Commission, place at the disposal of the
 Commission the total amount referred to in
  the preceding paragraph .   In that event , the
  financial participation from the Member States
   :hall be apportioned as follows :
    for "the new Member States , in accordance
    with the percentages laid down in Article
    129 of the Act concerning the Conditions of
    Accession and the Adjustments to the Treaties
    taking into account the abatement provided
    for in Article 130 of that Act ,
 ---pagebreak---                   ...«. L'cr suites , «and in o.r^«?r                                                                       – K
                                                                                                                              s
   to cover the balance , in accordance with the
   percentages laid dovm in Article 3 ( 2 ) of
   the Decision of 21 April 1970 .
Where the total amount referred to above ex­
 ceeds 400 million units of account , the ex­
 cess shall "be included in the financial require­
 ments of the Commission .
 The amounts thus established shall be
 booked to the next monthly payment to be
 mada .
                 Article 33                           Article 33                                                 Article 33
                                                      The Commission shall , once a quarter, send      Unchanged
Ix , when the Commission calls for funds , the        each Member State a statement indicating the
                                                      transfers effected in that Member State 's
Tudget has still not been finally adopted , the       national currency into another currency and vice
                                                      versa .
relative share taken' as the reference figure
for determining the participation of each Mem­
ber State in accordance with Article 31 ( l )
above shall be that of the draft or prelimi-
lary draft budget under consideration .
 ---pagebreak---                    Article 34                      Article 34           Article 31
1.   The Commission shall inform each Member Staii            Deleted
 of the financial    requirements referred to in
Article 31 ( 1 ) not later than the first of the                      /
aonth preceding that to which the estimate re­
lates .
2.   The corresponding payments , other than
own resources , shall be made by each Member
State not later than the fifteenth of the
month preceding that to which the estimate re­
lates .
However , the contributions provided for in
Articles 3 (4) and 4 ( 6) of the Decision of
21 April 1970 shall be paid:
- seven-twelfths not later than 15 January;
.. the balance not later than 15 July.
fhese payments shall be credited to a special
 • Contributions * account pursuant to Article 28,
 ---pagebreak---             Jn ths ent : ,■ inio trdn account of the
amounts due pursuant >o Articles 31 to 34 in­
clusive shall give rise to ; ayment by the Member
State concerned of interest , the rate of which
shall be equal to the highest discount rate
in the Member States applicable on the date          ;
when the payment falls due .      That rate shall
be increased by 0»25 point for each month of de­
lay.
                  Article 35                                   Article 35          Arti ci e 35
  Four -times a year} the Coramisr-ion shall sub­      Deleted            Del eted
  mit a report to the European Parliament and
  to the Council on the implementation of the
  Budget . This report shall make it possible
 to examine the financial situation of the Communi­
 ties and see whether it corresponds with
 current requirements .
                  Artide 36                                    Article 36          Article 36
 -■he payments provided for in Articles 26 to          Deleted            Deleted
 34 shall be made in national currencieoj
 they chall be calcxilated on the basis of the
 parity declared to the International Monetary
 fluid in force on the day of payment .
 ---pagebreak---                 Article 37                                   Article 37
     Articles 31 to 36 inclusive shall remain      Deleted
  ; force until 31 December 1974 or a"^ the
  .test until the time when , for certain Mem–
                                                           /
 :r States , the financial contributions are
 -•placed by the payaent of a part of the value
   ded tai, pursuant to Artiole 4      the De­
: sion of 21 April 1970 .
 ,   notwithstanding the first subparagraph of
   tide 34 ( 2), until 1 October 1973 , the pay-
   nte other than own resources    shall be made
 t the lateBt by the end of the month prece-
   ng that to which the estimate relates .
          5. Management of available funds
                       t
                  Article 38                                 Article 38
 ™ae funds credited to the accounts referred      Del eted
to in Article 28 of this Financial Regulation
 ..id Article 7 of Regulation ( EEC , Euratom ,
iCSC ) No 2/71 shall be at the disposal of the
Commission , in order to replenish its accounts ,
and in particular :
 ---pagebreak---                                                                      - 5^
– to cover the payments to be made in the na­
    tional currencies in which these accounts are
    denominated,
- to effect the transfers which are necessary
   for the implementation of the Budget .
                                                          Article 39
                     Article 39
                                                  Deleted
The Commission shall forward quarterly to each
Member State a statement of transfers effected
from the currency of that Member State to an­
other currency.
 ---pagebreak---                  Section III
       Commitment , validation ,, authorization
            and payment of expenditure
            1 . Commitment of expenditure
                  Article 40
                                                 Article 40                                               Article 40
 1.  All measures which may give rise to ex­     1 . All measures which inay give rise to       Unchanged
                                                Expenditure chargeable to the budget must be
penditure chargeable to the Budget oust be      preceded by a proposal for commitment of
                                                expenditure from the relevant authorizing
preceded by a proposal for commitment of ex­    officer. A provisional commitment may be
                                                entered into in respect of current expenditure.
penditure from the relevant authorizing offi­   2. Without prejudice to the provisions of
cer . A provisional commitment may be entered   Article 107, the decisions taken by the
                                                Commission to grant financial aid froo the
into in respect of current expenditure .        various funds or similar operations shall
                                                constitute commitments of expenditure,
                                                3.    The procedure for implementing the
2.   For the purposes of the appropii ations    provisions of paragraphs 1 and 2 above shall be
                                                laid down as provided for in Article 118. This
of the Guidance Section of the European Agri­   procedure shall ensure that an exact account is
                                                kept of commitments and authorizations in
                                                terms of the actual needs.
 cultural Guidance and Guarantee Fund, the
 decisions taken by the Commission in accord­
 ance with Article 7 of the Regulation (EEC)
 Ho 729/70 shall constitute connltaents
 of expenditure .
 ---pagebreak--- Artide 41
In each institution, proposals for commitments,
accompanied by the supporting documents, shall
be transmitted to the Financi.tl 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 bj' the Financial
Controller, as provided for in the measures of
implementation envisaged in Anjicle 118.
                     Û' '      )
                   4
 ---pagebreak---                    Article 42                         Article 42                                                                    Article W
                                                      The purpose of the approval of proposals for           Unchanged
The purpose of the approval of proposals for          commitments of expenditure given by the
                                                      Financial Controller shall be to establish that:
commitment b of expenditure given by the Finan­       (a) the expenditure has been charged to the
                                                          correct item in the budgctj
cial Controller shall he to establish that :                                       »                       I
                                                      (b) the appropriations are available;
. a) the expenditure has "been charged to the         (c) the expenditure is in order pnd conforms to
                                                          the relevant provisions, in particular of the
       correct item in the budget j                       budget and the Regulations, and of all acts
                                                          made in implementation of ( he Treaties and
£b) the appropriations are available}                     of the Regulations;
                                                      (d) the     principles    of    sound      financial
< c) the expenditure iB in order and conforms             management have been applied.
       to the relevant provisions , in particular     The Financial Controller shall take into account       Deleted and transferred to Article 92
                                                      the comments in the decision giving discharge.
       of the Budget and the Regulation^ and of
                                                      The measures of implementation of these                Unchanged
       all actB made in implementation of the         provisions shall be determined in accordance
                                                      with Article 118.
       Treaties and of the Regulations ;
   d) the principles of sound finanoial manage­
       ment have been applied.
  :rae Financial Controller may withhold his appro­
   val if it appears from the decision giving dis-
    iarge that a commitment did not comply with
    he Regulations.
                                                    I
                                                  • i
    he measures of implementation of these pro-
    icions Bhall be determined in accordance
   vith Article 118 .
 ---pagebreak---                                                                                                                                 - 59
                                                         Article 43                                                   Artide K3
                   Article 43 ■
                                                         The Financial Controller may withhold his          Unchanged
ir he withholds his approval , the Finan­                approval. If he withholds his approval he shall
                                                         furnish a written statement, stating the full
                                                         reasons therefor. The authorizing officer shall
cial Controller shall furnish a written state­           be notified accordingly.
ment , .stating the full reasons therefor. The authoriz­ If approval is withheld and the authorizing
                                                         officer maintains his proposal, this refusal shall
ing officer Bhall be notified accordingly .              be referred for a decision to the superior
                                                         authority of the competent institution among
                                                         those listed in the first two paragraphs of
If approval is withheld and                              Article 18 .
•the authorizing officer maintains his                   Except where the availability of the
                                                         appropriations is in doubt, the said superior
proposal , this refusal Bhall he referred for            authority may, by a decision stating the full
                                                         reasons therefor, and on its sole responsibility,
 a decision to the superior authority of the             overrule ; such a refusal . This decision shall be
                                                          final and binding; it shall be communicated for
 competent institution among those listed in             information to the Financial Controller. The
                                                         superior authority of each institution shall
 the first two paragraphs of Article 18.                 periodically inform the Court of Auditors of all
                                                         such decisions.
 Except where the availability of the appro­
 priations is in doubt , the said superior
 authority may, by a decision stating
 the full reasons therefor , and on its sole
 responsibility, disregard such a refusal .      This
  decision shall be final and binding; It
  shall be oommunicated for information to the
  Financial Controller .      The superior authority
  of    ch institution Bhall periodically inform
  the Audit Board of all such decisions.
 ---pagebreak---               2. Validation of expenditure            2 . Clearance of expenditure                              2. Clearance of expendltura « 60
                  Artiole 44                      Article 44                                                             Artici » KK
                                                         Clearance of expenditure is the acrby        unchanged
The purpose of validation of expenditure by the     •hich the authorizing officer shall:
authorizing officer shall bet                       - verify the existence of the creditor's claim,
                                                    - determine or verify the existence and the
                                                       amount of the - SUB due; and
- to verify the existence of the creditor's
                                                    - verify the conditioni under which payment
                                                       fall* due.
   claim;
- to determine or verify the existence and the
   amount of the existing debt } and
_ to verify the conditions under which payment
   falls due .
                  Artiol* 45
                                                  Artictt 4S
                                                                                                                       Artlelt «
 Validation of any expenditure shall he subject    !. Clearance of any expenditure thai! 1»e         Unchanged
                                                  subject to the submission of supporting
to the submission of supporting documents show­   documents showing the creditor's claim and the
                                                  service rendered or the existence of a document
ing the creditor* s claim and the service ren­    justifying payment. The measures of
                                                  implementation envisaged in Article 118 shall
dered or the existence of a document justifying    lay down the naiure and the contents of the
                                                  supporting documents to be enclosed with the
payment .    The measures of implementation en­   payment order. .
visaged     is   Article 118 shall lay down the    2. Supporting documents save those in respect
                                                  of transactions no,i finally closed, pertaining to
nature and the contents of the supporting docu­    the accounts and the drawinp-up of the revenue
                                                  and expenditure account and the balance sheet
ments to be enclosed with the payment order.      shall be kept for a period of five years following
                                                  the granting of the discharge, referred to in
                                                  Article 92, in respect of implementation oif the
The authorizing officer empowered to validate     budget.
penditure shall personally check the support– -   3. The authorizing officer empowered to
                                                  clear expenditure shall personally check the
 ing docuiients or shall , on his own responsibi­ supporting documents or shall, on his own
                                                  responsibility, ascertain that this has been done.
 lity , ascertain that this has been done .
 ---pagebreak---                    Article 46                                    Article 4°                                      Article V6
  Remuneration and allowances shall be validated Unchanged                                         Unchanged
  in accordance with & collective statement
drawn up by the department in charge of per­
 sonnel , except where individual clearance is
necessary.
         3. Authorization of expenditure           3 . Authorization of expenditure                          3, AuthoH zatlon of expenditure
                 Article 47                       Article 47                                                       Article V7
                                                  Authorization - Is the act* vhereby             Unchanged
Authorisation shall be the formal step whereby    the authorizing officer, by the issue of a
                                                  payment order, instructs the accounting officer
the authorizing officer , by the issue of a pay­  to pay an item of expenditure which he has
                                                  cleared.
ment order , instructs the accounting officer
to pay an item of expenditure which he has
validated.
 ---pagebreak---                                                                                                                        - 62
               Article 4o                         Article 48                                                 Article W
                                                  The payment order shall state:                   Unchanged
 a payment order shall state :
                                                  – the financial year against which the payment
                                                      shall be charged,
 the financial year against which the payment
                                                  •– the budget articl : and any other subdivision
 shall be charged}                                    that may apply, :
                                                  – the amount to be paid (in figure* and
                                                      words) showing the currency,
 the Budget Article and any other sub­
                                                  – the name and address of the payee,
 division that may applyj
                                                  – the purpose of thj; expenditure,
 the amount to "be paid ( in figures and words )
                                                  – the method of payment, wherever possible.
                                                  The payment order shall be dated and signed by
  showing the currency}                           the authorizing officer.
  the name and address of the payee ;
  the purpose of the expenditure ;
  xnd the method of payment , wherever possible .
he payment order shall be dated and signed -
iy the authorizing officer.                   j
 ---pagebreak---                                                                                                                           - 63-
                 Article 49                         Article 49                                                 Article \9
The payment order shall "be accompanied "by the     The payment order sjull be accompanied by the    Unchanged
                                                    original supporting ^ocumc-nts, as determined
original supporting documents , as determined       by the measures of implementation envisaged in
                                                    Article 118 ; those documents shall be certified
toy the measures of implementation envisaged        in respect of – or accompanied by a certificate
                                                    confirming – the correctness of the amounts to
in Article 1 18j   those documents Bhall toe cer­   be paid, the receipt of the supplies and the
                                                    performance of the service and, if appropriate,
tified or accompanied toy a certificate confir­      the entry of the goods in the inventories
                                                    referred to in Article 67.
ming the correctness of the amounts to toe paid ,
                                                    It shall show the numbers of the relevant
the receipt of the supplies and the perfor­         approvals of commitment. Copies of supporting
                                                    documents, certified as true copies by the
mance of the service and , if appropriate , the     authorizing officer, may, in some cases, be
                                                    accepted in place of the originals.
entry of the goods in the inventories , referred
to in Article 67 •
It shall show the numbers and dates of the re­
levant approvals of commitment *     Copies of
 supporting documents , certified as true copies
toy the authorizing officer , may , in some cases ,
toe accepted in place of the originals .
 ---pagebreak---                                                                                                                       - 64"
                Article 50                     Article 50                                                  Article 50
                                               For payments by instalment, the first payment     Unchanged
    payments by instalment , the first payment order shall be accompanied by documents
                                               establishing the creditor's claim to payment of
  sr shall be accompanied by documents e stab­ the instalment in question . Subsequent payment
                                               orders shall refer to the supporting documents
  bing the creditor 's claim to payment of the already furnished, and repeat the reference
                                               number of the first payment order.
  ialment in question.   Subsequent payment
                                               The authorizing officer may grant advances to
  are shall refer to the supporting documents  personnel if the Staff Regulations or the
                                               provisions laid down by regulation specifically
  aady furnished, and repeat the reference     provide therefor.
  ber of the first payment order.              The authoring officer may grant advances to
                                               cover disbursements to be effected by an official
                                               or other member of staff on behalf of his
                                               institution. The measures of implementation of
    authorizing offioer may grant advances     this provision shall be determined in accordance
                                               with Article 118 .
  personnel if the Staff Regulations or the
                                               Apart from the imprest accounts referred to in
  visions laid down by regulation specifical-  Article 57, no advance may be granted unless it
                                               has been approved beforehand by the Financial
  provide therefor , or if an official or      Controller.
  er servant makes disbursements
  behalf of his institution which are charge­
  /) to the Budget ,
  rt from the imprests referred to in Ar-
  le 57 , no advance may be granted unless it
:v been approved beforehand by the Financial
utroller.
 ---pagebreak---                  Article 51                          Artii le
                                                     Payment orders shall be sent for prior approval
                                                     to the Financial Controller.
Payment orders shall be sent for prior appro­
val to the Financial Controller .                    This prior approval shall confirm that:
                                                     (a) the payment order was properly issued)
This prior approval shall confirm that :             (b) the     payment   order     agrees with    the
                                                         commitment of expenditure and th^t the
                                                         amount thereof is correct ;
( a) the payment order was properly issued;
                                                     (c) the expenditure is charged to thp cprrect
                                                         item of the budget;
(b) the payment order agrees with the commit­
                                                     (J) the appropriations are available;
     ment of expenditure and that the amount
                                                     (e) the supporting documents are in order;
     thereof is correot )                          " (f) the payee is correctly described.
(c ) the expenditure is charged to the oorreot
     item of the Budget }
(d) the appropriations are availablej
( e) the supporting documents are in orderj
( f) lae payee is correctly described.
                   Artide 52                             Article 52
                                                         Should approval be refused, Article 43 shall
  Should approval be refused , Article 43 shall          apply-
  apply.
                   Article 53                           Article 53
  After approval the original of the payment            After approval, the original of the payment
                                                        order, together with all supporting documents,
                                                        shall be forwarded to the accounting officer.
  order , together with all supporting documents ,
  shall be forwarded to the accounting officer .
 ---pagebreak---           4 . Ppym ent of erpenditure                4 . Payment of expenditure           K. Payment of expenditure
                                                             Article 54                          Article 5V
                 Article 54
.yment shall "be the final aotion whereby the   Unchanged                       Unchanged
aBtitution concerned is discharged of its
• ligations towards its creditors .
i.yment shall be made by the aocounting offioer
  thin the limits of the funds available .
   the event of an error or of the validity
   the discharge being contested or of failure
   observe the formalities prescribed t»y this
 nanoial Regulation , the acoounting offioer
  at suspend payment .
 ---pagebreak---                      Article 53                                 Article 55           Article 55 - 6.7
    f payment IB suspended , the accounting offioer   Unchanged
                                                                           unchanged
       1 give the reasons for his decision in a
  *"'* ten statement which he shall send forth­
 "•fit: \ C in Q authorizing officer and, for inforo-
     ■     to tha Financial Controller .
   k ipt where the validity of the discharge
  18     itested, the authorizing officer may
 plact Ae natter before the authority appoin­
 ted "by ; be institution in the manner laid
 tfown in vie rules of procedure of that insti­
tution. The said authority may reqa5.re , in
Writing8 and on its own responsibility, that
paymeet ba effected.
 ---pagebreak--- ynents thall ba effected as a general rule           Unchanged Unchanged
         a tank acoount or post office giro
 lount .
 a procedure for opening , administering and
 a of suoh accounts shall be in accordance
 fch the measures of implementation envica.-ed
• Article 118.     These measures shall , in par-
 crular, identify expenditure the payment of
 ich must necessarily be effected either by
  ague or by post office or bank transfer order,
 i shall require the joint signatures en chaques,
   post office or bank transfer orders of two
  ly authorized officials , one signature
  cessarily being that of the accounting offi-
     an assistant accounting officer , or a
  iy-authorized adainistrator of an iaprtst account*
 ---pagebreak---                                                      1
                      5 . Imprestn                                5 * ImpreBts           5.  Inprests
                                                                  Article 57             Article 57
                      Article 57
For the payment of certain categories of ex–           Unchanged.              Unchanged
                           t
pendityre , imprest accounts Bay   sot up filprovi-*
ded for in the measures of implementation en­
visaged in Article 11 8»
These measures shall contain specific provi­
 sions concerning in particulars
- the appointment of adalnistrators #f iaprest
     accounts;
- the nature and maximum amount of each ex­
   penditure to "be incurred^
- the maximum amount of the imprest which
   may be advanced}
- the time within Which supporting documents
   niuBt be produced}
- the responsibility of the a(}s jn1stratori of
    ioprest accounts.
 ---pagebreak---                   TITLE IV                               TITLE IV                                                TITLE IV
   CONCLUSION OF CONTRACTS , INVENTORIES ,       CONCLUSION OP CONTRACTS , INVENTORIES             CONCLUSION OF CONTRACTS, INVENTORIES,
                 ACCOUNTANCY                              ACCOUNTANCY                                          ACCOUNTANCY
                   Section I                               Section I                                             SECTION
      Contract b for the supply of goods         Contracts for the supply of goods                  Contracts for the supply of goods
      and services , and hire contracts          and services , and hire contracts                  and services , and hire contracts
                   Article 58                              Article 58                                          Article 58
 1 , Contracts for the purchase or hiring of     Unchanged                             Unchanged '
goods , for. the provision of servioes or for
"building works shall be made in writing.
 They shall "be. concluded following an automar-
 tic public tendering or discretionary tende­
 ring procedure.
However , contracts may be entered into by
 private treaty in the circumstances referred
 to in Article 60 . -
 Purchases may be made hy way of a bill of
 costs or invoice in the case provided for in
 Article 65 .
 ---pagebreak--- 2.   Calls for tender shall , as a general rule ,
be published throughout all the Member States ,
and , where appropriate , in non-member countries ,
Insofar as this is compatible with the develop­
ment of the relevant industries in the Communi­
ties . However , the distribution of such invi­
tations to tender may be restricted , where the
eoale or nature of the goods or services is
such that they are not appropriate for & general
Invitation to tender .
                   Artide 59                                   Article 59           Art ) ci •
  1.  Automatic public tendering is an              Unofcangei            Unchanoad
 administrative procedure which precedes
 the conclusion of & contract and follows
 a call for tender .    Its effect is to confer
  publicly on the tenderer whose tender is the
  lowest  - out of all those which are entered
  in due and proper form , meet the conditions
  l^id down , _nd &re comparable with
  etch other - the right to the definitive
  award of the contract , after the approval of
  the competent authorizing officer . This ter.de.
 ring procedure i3 c?id to be open, where it is
  open to all comers to submit a tenderj it ia
  void to b« restricted where "tenders may be
 ---pagebreak---     entered only by those whon it has been deoi-
    ded to consult because of their speoi&l          72
   qualifications ,
   2. A discretionary tendering oontraot
   is a oontraot entered into by the contracting
   parties following a call &r tender. In this
   case , the offer considered the most favourable
   may be chosen at discretion , taking into account
  the oost of performance , running costs invol­
  ved, technical merit , the time for performance, '
  together with the financial guarantees and the
  guarantees of professional corapetenoe    -
 put forward by each of the tenderers.
 Such a call for tender is said to be public or
 open where a general invitation to tender
 is involved} it is said to be restricted
where it is addressed only to those whom it        i
has been decided to oonsult because of their
epeoial qualification!».
3. The procedure for inviting tenders , both
as regards automatic public tendering and dis­
cretionary tendering, shall be speci.'itd in
the measures of implementation envisaged in
Article 116.
 ---pagebreak---                   Artioì© 60                                 Article 60           Article 60 – 73
Sontracts nay bo mado by private treaty :        Unchanged -            Unchanged
( a) where the contract for the purchase or
     hiring of goods , for the provision of
     services or for building works involves
     an anount not exceeding 5 000 unite of
     account , the institution being bound ,
     however , as far as possible and by all
     appropriate means , to enable suppliers
     vho are likely to be able to supply the
     goods and services in question to com­
     pete;                                     j
 b) where the purohaee or hiring of goodB ,
     the provision of services or the con­
     struction works are so urgently needed
     that it is not possible to wait for
      one of the tendering procedures specified
      in Article 59 to be carried out ;  .
  c) where the automatic public tendering or
      discretionary tendering procedures do not
      give any result or where the prices quoted
      are not acceptable ;
  d) where for technical , practical or legal
      reasons , the supply of goods and services
      can only be oarried out by a particular
      contractor or supplier i
 ---pagebreak---                                                                                                                                 - 74 •
( e) for contracts for the supply of goods and
      services or for ancillary workB which tech­
      nically cannot he separated from the main
       contraot ,                                   !
                                                                                                                                    y
                      Article 61                                      Article 61                                     Article 61
 There Bhall be no discrimination between na­         Unchanged                                            Unchanged
 tionals of Member States on grounds of nation­
 ality in respect of contracts entered into by
        Communities ,
               :                      ........    J
                       Article 62                     Article 62                                                     Article 62
                                                      In each institution, befofe the authorizing          Unchanged
   In each institution , before the authorizing       officer takes a decision, contracts involving
                                                       amounts exceeding 15 000 units of account shall
    off-leer takes a decision , contracts involving   be submitted for the opinio^     an Advisory
                                                       CoEolttee on Procurements and Contracts whose rules
   amounts exceeding 12 000 units of account
                                                      of procedure shall be laid down in the measures
                                                       of implementation envisaged in Article 118.
   shall be submitted for the opinion of a pUp.
   ohases and contracts advisory committee whose
   .rules of procedure shall be laid down in the
   aeasures of implementation envisaged in
   Article 118 ,
 ---pagebreak---                                                                                          - 15
                                                         Article 63           Article 63
              Article 63
The Advisory Comaittee referred to in Ar­      Unchanged            Unchanged
ticle 62 ehall include et least one repre­
sentative of the department responsible for
general administration , one representative
of the department responsible for finance
and one representative of the department
responsible for legal matters ;  a represent-*
ative  of the Financial Controller shall be
present as observer.
The Committee shall deliver an opinion as to
whether the procedure followed is in order ,
on the choice of suppliers and, in general ,
on the proposed terms of the contract .
Any other problem concerning matters falling
under this Title may be referred to the said
Committee for an opinion.
 ---pagebreak---                                                                                                                             - 76
                   Article 64                      Article 64                                                    Article 6V
                                                   By way of guarantee of the performance of the       Unchanged
  By way of guarantee of the performance of the    contracts, it may be required of the suppliers or
                                                   contractors, by a clause included among the
  contracts , it may be required of the suppliers  warranty clauses, that they make a preliminary
                                                   deposit under conditions to be laid down in the
  or contractors , by a olausa inoluded among the  measures of implementation envisaged in Article
                                                   118 .
  warranty clauses , that they make a preliminary
                                                   The amount of the deposit iljall be fixed:
  deposit under conditions to be laid down in
                                                   – according to the usu^l trade terms of
  the measures of implementation mvltajW in            contracts for supplies,
                                                   – according to the fecial                conditions
  Artiole 118 .                                        governing building contract*.
                                                   For building works involving an amount
  The amount of the deposit shall be fixed :       exceeding 2(H) 000 units of account, a deposit
                                                   »hal ! be obligatory. A security may be retained
  - according to the usual trade terms of con­     until final acceptance of delivery.
    ' tracts for supplies ;                        Where a contract has not \<cn carried out or
                                                   completion has been late, the institution shall
  - according to the        ^   special conditions ensure that it is adequately compensated in
                                                   respect of all damages, interest and costs by the
      governing building contraots .               deduction of the amount from the deposit,
                                                   whether this has been lodged directly by the
                                                   supplier or contractor, or by i| third party.
                                   »
  For building works involving an amount exceed­
  ing 100 000 units of account , a deposit shall
( be obligatory. A security may be retained un­
  til final acceptance of delivery.
   Where a contract has not been carried out or
   completion has been late , the institution
   shall ensure that it is adequately compensated
   in respect of all damages , interest and
            costs by the deduction of the amount
 ---pagebreak--- from the deposit , whether this haB been
lodged directly "by the supplier or contractor ,
or by a third party .
                    Article 65
                                                   Article 65                                                    Article 65
Contracts may be made against invoice or bill      Contracts may be made against invoice or bill       Unchanged
                                                   of costs only where the expected value of the
of costs only where the expected value of the      goods and services supplied does not exceed ISO
                                                   units of account. This limit shall be increased to
goods and services supplied does not exceed        600 units of account for expenditure to be
                                                   entered into outside the provisional places of
200 units of account .     This limit shall be in­ work of the institution.
creased to 500 units of account for expendi­
ture to be entered into outside the provi­
sional places of work of the institution .
                   Article 66                                         Article 66                                 Article 66
                      r
 When concluding contracts, referred to in this     Unchanged                                         Unchanged
 Financial Regulation , each institution shall
 comply with the measures laid down in respeot
 of publio workB by the Council in implement­
 ation of the Treaty establishing the Euro­
 pean L - o;.omic Community.
 ---pagebreak---                 Section II                                  Section II                           Section II
      Inventoriea of movable and                   Inventories of movable ana           Inventories of eovable and
            immovable property                         immovable property                   Uoovable property
                Àrtiole 67                                Artide 67                            Arti ci a 67
Permanent quantitative inventories of all      Unchanged                      Unchanged
movable and immovable property belonging to
the Communities shall he kept in accordance
with a BO del drawn up hy the Commission .
Only movable property exceeding a speoific
value provided for in the measures of
implementation envisaged in Article 118 Bhall
ho entered in those inventories .
Eaoh institution shall carry out its own
inspection to ascertain that the entries in
the inventory correspond to the faots .
                 Artide 68                                Article 68                         Artide 68
The sale of movable property shall be suitably Unchanged                      Unchanged
advertised as laid down in the measures of
implementation envisaged in Article 118.
 ---pagebreak--- Apart frci talcs by iufantic public itndtr, official a
and other servants of the institutions may
not acquire any movable property sold by the
said institutiono .
                     Artide 69                                   Article 69           Article
 A statement or record Bhall be drawn up by the        Unchanged            Unchanged
 authorizing officer and authenticated by tho
 Financial Controller whenever any property in
the inventory is disposed of, scrapped, hired
out , or missing on aooount of loss , theft or
any other reason.
The statement or record shell refer in paxw
ticular to any obligation that may devolve on
an official or other servant of the Communi- 1
ties or any other person to replaoe the item
in question.
 If immovable property or large installations
 are made available free of charge , they must
 be covered by contracts submitted to the
Finanoial Controller for approval , and shall
be the eubjeot of an annual communication to
 the European Parliament and the Council when
 the preliminary draft budget is submitted.
 ---pagebreak---                                                                     Article 70                                   Art ! cl I 70 - 8C
                   Artiolô 70
Every purcHaso of movable or immovable propor–     Unchanged                                          Unchanged
ty as defined in Artiole 67 shall , before
payment is made , lie entered in the permanent
inventories .
That entry shall he reoorded in the corres­
ponding invoice or annexed document prepared
with & view to paying for the expenditure
in question.
                                                                   Section III                                   Section III
                   Section III
                    Account s                                       AccountB                                      Accounts
                    Art i oie 71                    Artiae 71                                                   Article 71
                                                    The accounts shall he kept in units of account    Unchanged
,The aooounts shall he kept hy the cJoubl •         hy ihc double entr> method, on the basis of the
                                                    calendar year. Thiy shall show all revenue and
  intry t*thed,   on the basis of the calendar      expenditure for the financial year. They shall be
                                                    authenticated by supporting documents.
 year .    They shall show all revenue and ex­
                                                    The revenue and expenditure account and the
 penditure for the financial year;     they         balance sheet shall be drawn up in units of
                                                    account.
   shall he authenticated hy supporting docu­
   ments .   They may he kept in the currency of
   the country where the seat of the Commission
   is located or , where appropriate , in the cur­
   rencies of the countries where the establish­
   ments of the Joint Research Centre are lo­
   cated without prejudice to the provisions of
 ---pagebreak--- The revenue and eoy, "inditure account and the
balance sheet shall be drawn up in units of
account .
Any amount expressed in units of account shall
"be entered in the account     n terroB of the
parity in force on the da      of transfer or
 actual payment .
                                                  Article 72                                                Article 72
                  Article 72
                                                  Entries relating to the budget accounts and to  Unchanged
 Entries relating to the budget accounts and      commitments and recovery orders accounts shall
                                                  be made on the basis of an accounting systea
 to commitments and established entitlements'     comprising a nomenclature of budgetary items
                                                  which makes a clear distinction between the
 accounts shall be made on the basis of an ac­    balance sheet accounts and the accounts of
                                                  budgetary expenditure and revenue.
 counting plan comprising a nomenclature of
                                                  These entries shall make it possible to draw up
 budgetary items which makes a clear distinc­     a general monthly balance, and a statement by
                                                  chapter and article, of budgetary revenue and
 tion between the balance sheet accounts and      expenditure, which shall be forwarded to the
                                                  Financial Controller.
 the accounts of budgetary expenditure and
 revenue .
 These entries shall be recorded in books or
 on cards . These shall make it possible to
 draw up a general monthly balance , and a state­
ment by Chapter and Article , of budgetary re­
 venue and expenditure , which shall be for­
 warded to the Financial Controller .
 ---pagebreak---                                                                                                                     Article 73
                                                                                                                                           - 82 -
                Article 73                        Article 73
                                                  Except for the advances referred to in Articles   Unchanged
Except for the advances referred to in Ar–        107 and 114, any advance, other than regular
                                                  advances which arc periodically re-examined,
tide 107 1 any advance shall be entered in a      shall be entered in a suspense account and
                                                  settled at the latest during the financial year
suspense account and settled at the latest        which follows the p.iyment of this advance.
                                                  However, the advances referred to in the third    However , the advances referred to in
during the financial year which follows the                                                         the third subparagraph of Article 50
                                                  subparagraph of Article 50 shall be settled       shall be Bettled within six week a
payment of this advance .                         within the two months following completion of
                                                  the project for which they were granted.          aa a general rule following completion
                             • *. t c '                                                             of the project for which        vera
                                                                                                    granted .
                                                  Article 74                                                       Article 7V
                 Article 74
Details of the method for drawing up and          Unchanged                                         Unchanged
operating the accounting plan 6hall be laid
down in the measures of implementation
envisaged in Article 118.
                                                                                                                   Article 75
                 Article 75                         Article 75
                       t
                                                   The accounts shall be dosed at the end of the     Unchanged
                                                    financial year to enable a balance sheet of the
 The account b shall he closed at the end of the   Communities and the revenue and expenditure
                                                    account referred to in Title VI to be drawn up.
 financial year to enable a balance sheet of the   The revenue and expenditure account shall be
                                                   submitted to the Financial Controller.
 Communities and the revenue ar;d expenditure
 account referred to in Title VI to be drawn up .
                                                   The adjustment operations and those in respect    Deleted
 The revenue and expenditure account shall be      of additional periods shall be appended to the
                                                   sheets for 31 December of the year in question.
 Eutnitted to the Financial Controller .
 ---pagebreak---                   TITLE V                                                 TI TLE V                                                f ! TU -y
   RESPONSIBILITIES OF AUTHORIZING                      RESPONSIBILITIES OF AUTHORIZING                               RESPONSIBILITIES OF AUTHORIZING
   OFFICERS , FINANCIAL CONTROLLERS ,                   OFFICERS , FINANCIAL CONTROLLERS ,                            OFFICERS , FINANCIAL CONTROLLERS ,
   ACCOUNTING OFFICERS AND ADMINISTRATORS OF            ACCOUNTING OFFICERS AND ADM I N I STRATORS OF                 ACCOUNTING OFFICERS AND ADMINISTRATORS OF
   IMPREST ACCOUNTS                                     IMPREST ACCOUNTS                                              IMPREST ACCOUNTS
                    Article 76                         Anide 76                                                                  Article 76
                                                       Authorizing officers, who, when establishing         Unchanged
 Authorizing officers who , when establishing          entitlements to be recovered or issuing recovery
                                                       orders, entering into a commitment of
 entitlements to "be recovered or issuing re­          expenditure or signing a payment order do so
                                                       without     complying      with     this   Financial
ceivable orders , entering into commitments            Regulation and the rules for its implementation
                                                       render temsclves liable to disciplinary action
of expenditure or signing payment orders do            and, where appropriate, may be required to
                                                       make restitution. The same shall apply if tjicy
so without complying with this Financial Regu­         omit to draw up a document establishing ? debt
                                                       or if they neglect to jssue recovery orders or arc,
lation and the rules for its implementation            without justification, late in issuing them.
 render themselves liable to disciplinary action an{],
where appropriate , may he required to make
restitution .       The same shall apply if
they omit to draw up a document establishing
a debt or if they neglect to issue receivable
orders or are , without justification , late
in issuing them.
 ---pagebreak---                       Article 77                                      Artiole 77           Artici » 77
 Financial Controllers render thcuselves liable to dls-     Unchanged            Unchanged
 ciplinary action and , where appropriate , may he
 required to make restitution for any action taken
 during their term of offioe , in particular ,
 by granting their approval to transactions in
 •xoess of the 'budgetary appropriations.
                      Artiole 78                                      Artide 78            Article 78
  1.   Accounting officers and assistant account-           Unchanged            Unchanged
  ing officert render thenselves liable to disciplinary
  action and, where appropriate , nay he required to
   make restitution as regards payments made hy
   then in disregard of the third subparagraph
    of Article 54 .
     They render theaselves liable to disciplinary action
     and nay be required to nake restitution as regards
                                                          I
. any loss or deterioration of the monies ,
   assets and documents in their charge where
   such loss or deterioration rnsxlts from a
   del iterate breach of duty or seriou*
 . negligence on their part .
 ---pagebreak---   Under the same conditions , they shall he res­              Unchanged Unchanged
  ponsible for the correct execution of orders
' received by them in respect of the use end
   the administration of hank accounts and post
   offioe giro accounts , and in particular ;
   (a) where the payments or recoveries made by
         then do not agree with the amounts on the
         payment orderB or receivable orderBj
   (b) where they effect payment to a party other
         than the entitled payee .               ■
 2.      Administrators of Imprest accounts render theaselves
 liable to disciplinary action and, where appro­
  priate, nay be required to Bake restitution in the
  following cases :
  (a) where they cannot show warrant with docu­
        ments in due and proper form for payments
      ° made toy themj
 (b) where they effect payment to a party other
    .   than the entitled payee .
 They render ther,se1ves liable to disciplinary actton and
 may be reijuired to make restitution in respect
 of any loss or deterioration of the monies ,
 assets and documents in their charge as a re­
 sult of a deliberate breach of duty or serious
 neclic®nce 011 "their part .
 ---pagebreak--- 3.    The accounting officer , annistant account­           Unchangftd
ing officers and adalnl$trators of Inprest accounts shall
  Insure theaselves against the risks arising under this
Jtrtiole .
The Institution shall cover the insurance costs
relating thereto in accordance with the measu­
res of implementation envisaged in Article 118. '
A special indemnity shall be granted in each
of the institutions to the accounting offioer ,
assistant accounting officers and adalnlstrators of
 toprest accounts. The suns corresponding to this Indea-
nity shall be credited each month to an account
opened 'by the Institution on behalf of each
official in order to establish a guarantee fund
to cover 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 com­
 panies .
 The oredit balance in these guarantee accounts
  shall be paid over to the persons concerned
when they terminate their appointment as ac-              !
counting officer , assistant accounting offioer
or adnlMstrator of leprest accounts.
 ---pagebreak--- 4 . The measures of implementation envisaged               Unchanged
in Article 118 shall specify the categories
of officials or other Btaff qualified
to be appointed accounting offioerfl or
adislnlstratonsof lnprest accounts.
                                                                     Artici
                       Artide 79
  The requirement for authorizing officers ,              Unchanged
  financial controllers , accounting officers ,
   assistant accounting officers and adalnlstrator of
   Ictprest accounts to sake restitution, or their liabi­
   lity to disciplinary action , shall be gover­
  ned "by the provisions of Articles 22 and 86                    \
   to 89 , respectively, of the Staff
  Regulations of Officials of the European
  Communities .
                      Article 60
                                                          Unchanged
   Each institution shall be allowed a period
   of two years from the date when the revenue
   and expenditure account is submitted to take
   » decision on the final discharge to be given
   to accounting officers for the transactions
   relating thereto .
 ---pagebreak---                                                                               TITLE VI                                                       TITLE VI
                       TITLE VI
                                                                                                                           PRESENTATION'- ANO AIDITING OF THE ACCOUNTS
PRESENTATION ANO AIDITING OF THE ACCOUNTS .             PRESENTATION ANO A1J0ITING OF THE ACCOUNTS        ,                                 Section I
 ,             -
                                                                                                                                 Presentation of the accounts
                                                                               Section I
                     Section I
                                                                                                                                        X.-t
                                                                Presentation of th* account! •
                                                                                                    .. r
                                                                                                                    The Commission shall draw up, not
         Présentation of the accounts                                                                               later than 1 June of the following
                                                                                                                    year , a revenue and expenditure
                     Artiole 81                            Article 8Î                                               account for the Communities , which
                                                                                                                    shall include the following tables
                                                                                  »
                                                           The Commission shjll uraw up, not later than             broken down in accordance with the
                                                                                                                    budget nomenclature !
   The Commission shall draw up, not later than             1 June, a revenue and expenditure account for
                                                           the Communities, which shall include the              1 . A table of revenue including :
   1 June , a revenue and expenditure aocount for          following tables brpken down in accordance
                                                           with the budget nomenclature:                            - estimated revenue for the finan­
  the CoonrunitieB.                                                                                                    cial year ,
                                                           S. À table of revenu; including:                         - amendments to the revenue estimates
                                                                – estimated revenue for the financial year,            as a result of supplementary or
  This account shall he preceded by an analysis                                                                        amending budgets ,
                                                                – amendments po the revenue estimates at
  ot the financial management in reBpeot of the                     a result of supplementary or amending           - revenue collected during thf finan­
                                                                    budgets,                                           cial year ,
  year In question.       It Bhall cover all revenue            – revenue collected during the financial            - entitlements still to be
                                                                    year;                                              from tl.e prece ding financial year .
  and expenditure transactions relating to the                                                                      - .entitle ments established in the
                                                           2. Tables showing |. he trend in appropriations             course of the       financial year .
  preceding financial year for each institution .               in respect of the financial year,
                                                                distinguishing between appropriations for           - amounts still to be collected at
  It shall 'be submitted in the same form and                                                                          the end of the financial yea r :
                                                                commitment, appropriations for payment
                                                                and appropriations where no such                 i•   Tables showing the budgetary pattern
  following the sane subdivisions as the Budget .               distinction is made, and indicating:                   for thf financial yea r d is ; i r.gruish-
                                                                                                                       lnq bet «-c- er. aarrc or lat lar.s enter e d
                                                                – enc initial appropriations,
                                                                                                                       under i terns , article s . chaatera and
                                                                – any amendments introduced by means of                title s of the budqe tand conBlte6gt'_
                                                                    supplementary or amending budgets,                 authorizations , and Indicating;        • ~ r
                                                              ' – any amendments to appropriations
                                                                    introduced by'means of transfers,                 the initial entries .
                                                                – the final appropriations for the financial      -   any amendments introduced by means
                                                                    y«»f; _                                           of supplementary or amending "
                                                                                                                      budgets ,                                 ..
       •  •• M                                ** " *         3»Tablcs      of    expenditure    showing     the
■\* *                                                V-         utilisation of the appropriations for the         -   any amendments to appropriations'*
                                                          • - financial year, indicating:                      *      introduced by means of transfer ,
                                                        .       – the final appropriations, distinguishing        - • theappropr 1 at ions maintained
                                                                                                                      under Article 6(3 )
                                                                    between appropriations for commitment,
                                                                    appropriation!.    for    payment     and     •   the final figure * for appropri%-
                                                                     appropriation^, where no such distinction        tiona for the financial yeat ;
                                                                    is made.
 ---pagebreak---                                                                                                             - 69
  •– the      commitments        entered   into  and    J.   Tablea shoving the utili zation of
      chargeable to the financial year,                      the figures entered as at pr racraph
                                                             2 above : appropr i at i ons r?a i r.t a : ned     1
      distinguishing between appropriations                  and cancellations shall also be                    |
      for commitment and appropriations                      indicated .                                        }
      where no such distinction is made*
   – the payments made and chargeable to the
       financial year, distinguishing between
       appropriations for payment and
       appropriations where no such distinction
       is made,
   – the settlement of the commitments in.
       respect of the financial year and the
       calculation of the amounts spll to be
       paid at the close of the financial year,
   – the       appropriations      for   commitment
       carried forward in accordance with
       Article 95 and with the decision taken by
       the Budgetary Authority pursuant to
        Article 6 (3) (a), first indent,
   –- the appropriations for payment carried
       over pursuant to Article 6 (3) (a), first
        indent,
   – the appropriations where po such
        distinction is made, carried over pursuant
        to Article 6 (3) (b),
   – the appropriations cancelled, dis­
        tinguishing between appropriations
        for commitment, appropriations for
        payment and non-ditferentiatep appro­
        priations.
   A statement shall be annexed to these tables,        Unchanged
   where appropriate, showing the revenue,            j
   expenditure and b.ilances for - the re-use i
    operations referred to in Article 22(2). • ;
4. Tables showing the use of the                          4.   Tables snowing the use of the
    appropriations carried forward from                        authorizations and appropriations
    preceding financial years, indicating:                     maintained from preceding
                                                               f inancial years , indicatin g a
   – the amount of appropriations carried                      detailed breakdown of the figures
         forward,        distinguishing       between          into commitments , payments made ,
         appropriations for commitment and                     unused appropriations being main -
         other appropriations,                                 tained and cancellations .
 ---pagebreak--- – the     commitments      entered  into   and
   chargeable to tlic appropriations for
   commitment carried forward,
– the payments made against the
   appropriations for payment and against
   the non-differentiated appropriations
   carried forvvard,
– the validation of the amounts still to be
   paid at the close of the preceding
   financial year and the amounts still to be
    paid at the close of the current financial
    year,
– the unused appropriations to be carried
    forward to the nc};t financial year,
– the appropriations cancelled, distin­
    guishing between appropriations for
    commitment and pther appropriations;
Annexed to the revenue and expenditure          Unchanged
account shall be a document showing capital
 operations . and debt management, Indicating
– A
    (a) the total amount of loans approved;
    (b) the total amount of the repayments
         made on borrowings contracted and
         of the charges on such borrowings;
– Β
     (a) the   amount of borrowings con­
         tracted;
     (b) the total amount of repayments of
         capital and pa) ments of interest made
         on loans grantiid.
 ---pagebreak---                    Article 82                     ' Article 82                                                Article
                                                    Each institution shall, npt later than 1 April, Unchanged
The revenue and expenditure account shall in­       forward to the Commission the information
                                                    required for drawing j,ip the revenue and
clude the following tables broken down in           expenditure account and the balance sheet, plus
                                                    a contribution to the analysis of the financial
 accordance with the budget nomenclature :          management referred to in, Article 83.
 1.  . A table of revenue Including:
     - estimated revenue for the financial year }
     - amendments to the revenue estimates as a
        result of supplementary or amending
        budgets ;
     - entitlements still to be collected from
        the preceding financial year;
    - entitlements established in the course
       of the financial year}
    - amounts collected;
    - amounts still , to be collected at the
       end of the financial year .
    A statement shall be annexed , where appro­
    priate , to this table , showing the balan­
    ces and gross amounts of the transactions
    referred to in Article 22 .
2.  A table showing the trend in appropriations
    in respect of the financial year , indicat­
    ing !
 ---pagebreak--- - tbe initial appropriations »                92
- any amendments to appropriations intro­
  duced by means of transfers ;
_ any amendments introduoed by meanB of
  supplementary or amending budgets}
- the final appropriations for the finan­
  cial year .
A table of expenditure showing the trend
ia appropriations in respeot of the finan­
cial year , indicating:
- the total appropriations )
– the commitments entered into and charge­
   able to the finanoial year}
 _ the payments made at the end of the
   period of implementation of the budget ;
 – the amounts still to be paid at the close
   of the financial year;
 – the appropriations carried forward
    automatically under Article 6(1)( C);
 – the appropriations carried forward under
    Article 6 ( 1 ) (b) relating to contraots
    concluded after 15 December of the
    financial year;
 ---pagebreak---  - the available appropriations carried for-    >3
                                              i
   ward under Article 6 ( l ) (b)j
                                              i
                                              I
 - the available appropriations to be can­
   celled.
 A statement shall be annexed to this table ,
 where appropriate , showing the balances
 and gross amounts of the transactions
 referred to in Article 22 .
 A table showing the trend in appropriations
 carried forward from preceding financial
 years , indicating:
 – the amount of appropriations carried
   forward;
- the payments shown in the accounts at
  the end of the period of implementation
                *
  of the budget }
– the unused appropriations to be can­
  celled)
– the unused appropriations to be carried
  forward again to the next financial
  Ye .-w.'
 ---pagebreak---                                                94
A table showing :
- a)
   ( a) the total amount of loans approved
        by the Communities ;
   (b) the total amount of the repayment 8
        made on borrowings contracted and
         of the charges on such borrowings ;
- *)
   ( a) the amount of borrowings contracted ;
  ( b) the total amount of repayments of ca^-
        pital and payments of interest made
        on loans granted.
    A statement shall be annexed to the table
    showing the state of borrowing and lending
    by the Community.
 ---pagebreak---                    Article 8.                        I  Article 83
 The Commission shall cb iw up , within the time- j     This account shall be preceded by an analysis of
                                                    !
                                                        the financial management in respect of the year
                                                        in question. It shall cover all revenue and
 limit provided for in Article 81 , a balance j
 sheet of assets and liabilities of the Communi­
                                                        expenditure transactions relating to the
                                                        preceding financial year for each institution. It
                                                        shall be submitted in the same form and
 ties as at 31 December of the preceding finan­        following the same subdivisions as the budget.
 cial year. A statement of account s f showing     |
 cash movements and balances , drawn up on the
 same date , Bhall be attached "{hereto .
                  Article 84
                                                       Article 84
Each institution shall , not later than 1 May, j       The Commission shall draw up, within the time
                                                       Jimit provided ior in Article 81 , a balance sheet "
forward to the Commission the information re- J        of assets and liabilities of jhe Communities as at
                                                       31 December of the preceding financial year. A
quired for drawing up the revenue and ei-        f     statement, showing the movements and balance*
                                                       of- the accounts, drawn up on the same date,
penditure aooount and the balance sheet .        1     shall be attached thereto.
 ---pagebreak---                       Section II                                         SECTION 11                                                 SECTIOH II
                                                                                                    •       t
                                                                AUDITING OF THE ACCOUNTS                    i                AUDITING OF THE /
              Auditing cf ths accounts                  PROVISIONS RELATING TO THE COURT OF                             PROVISIONS RELATING TO THE COURT OF
     rovisions relating to the Audit Board                                AUDITORS                                                    AUDITORS
                                                                                                            I
                                                                                                          . I
                                                                                                                               Article 85
                                                         Article 85                                         1
                      Article 85
                                                        The revenue and expenditure account, the                The Commiss i on shall forward the
                                                        financial analysis and the balance sheet shall be       revenue and expe n diture account , the
    here shall be collective action and responBi-       forwarded to the Council and the European               financial analvsi s and the balance
                                                        Parliament by 1 June at the latest.                     sheet to the European Parliament , the
    ility in the exercise by the members of the
                                                                                                                Coun cil      and the Court of Auditors
                                                        The Court of Auditors shall be informed that            by 1 June at the latest .
    udit Board of the powers conferred upon             these documents have been sent.
     fiem .
                                                                                                                                      Article o5a
: tie Board may authorize one or more of its
                                                                                                              Where , for the performance of certain tasks
      embers to carry out certain tasks or certain                                                            or certain audits the members of the Court
                                                                                                              of Auditors seek assistance from staff of
      adits . Any member or members so authorized                                                             the Court , the tasks delegated to these
 >-. a.y on their initiative seek assistance from
                                                                                                              officials must "be specifically laid down
                                                                                                              and limited to the time necessary for their
      fficers of the Board.                                                                                   completion.      The Court itself or one of
                                                                                                              its members shall notify these tasks to
                                                                                                              the authorities in whose organization the
     'be tasks delegated to the officers pursuant                                                             person delegated is to carry out his work.
 iio the foregoing provisions must be specifical-
      / laid down and limited to the time necessa-
 rr for their completion .          The Board itself or
      ne of its members shall notify the authori­
 ties in whose organization the officer dele­
 gated is to carry out his work of these tasks .
 ---pagebreak---                                                   Article 86                                                 Art ? tic 66
                 Article 66
                                                 T.ach institution shall forward to the Court of   Unchanged
 Each institution shall forward to the Audit      Auditors on a quarterly basis and at the latest
                                                  within the month which follows the end of the
Board , on a quarterly basis and at the latest    quarter, and, in the case of the fourth quarter,
                                                  at the latest within the month which follows the
within the month which follows the end of the    close of the financial year, the documents
                                                 supporting the accounts, in particular the
 quarter , the documents supporting the accounts documents and certificates in respect of the
                                                 correct application of the provisions which
in particular the documents and certificates     govern the implementation of the budget and
                                                 relating to commitments and payments, to the
in respect of the correct application of the     establishment and collection of revenue, and
                                                 subject to the application of Article 14 of
provisions which govern the implementation of    Council Regulation (EEC, Euratom, ECSC) No
                                                 2/71    and of Article     87  of this  Financial
the Ridget and relating to commitments and       Regulation. The Court of Auditors may
                                                 question each institution on the subject of the
                                                 said supporting documents.
payments , an<j {^establishment and collection
of revenue , Bubject to the application of Ar­
ticle 14 of Council Regulation (EEC , Euratom ,
ECSC) No 2/71 and of Article 87 of this finan­
cial Regulation. The Audit Board may question
each institution on the subject of the Baid
supporting documents .
                    I
The revenue and expenditure account and the
balance sheet shall be forwarded to the Audit
Board within the period laid down in Ar­
ticle 81 .
 ---pagebreak---                                                                                                                             - 93 *
                 Article 87                         Article 87                                                   Artlelt 87
                                                    The audit carried out by the Court of AuJitors     Unchanged
The audit carried out by the Audit Board shall      shall be based on records and, if necessary,
                                                    performed on the spot. Its purpose shall be to
be based on record* and, if necessary, per­         establish that all revenue has been received and
                                                   "all expenditure incurred in a lawful and proper
formed on the spot . Its purpose shall be to        manner having regard to the provisions of the
                                                    Treaties, the budget, the Financial Regulations
establish that all revenue has been reoeived        ani] all other measures taken pursuant to the
                                                    Treaties, and that the financial management has
                                                    been sound.
and all expenditure incurred in a lawful and
proper manner having regard to the provisions       For the performance of its task, the Court of
                                                    Auditors shall be entitled to consult, in the
of the Treaties , the Budget , the Financial        manner provided for in Article 89, all
                                                    documents and information relating to the
Regulations and all other measures taken pur­       financial management of the departments or
                                                    bodies subject to its inspection; it has the power
suant to the Treaties , and that the financial      to make enquiries of any official responsible for
                                                    a revenue or expenditure operation, and to use
management has been sound.                          any of the auditing procedures appropriate to
                                                    those departments or agencies.
For the performance of its task , the Audit
                                                     The Court of Auditors, in order to obtain all
Board shall "be entitled to consult, in the manner   the necrsviry information for the performance
                                                     of the tavk entrusted to it by the Treaties and
provided for in Article 89 ) all documents aod       the measures taken to implement them , may be
                                                     present, at its request, during the operations
information relating to the financial manage­        carried on : by the Commission in
                                                     imp'emcmation of Articles 8 and 9 of
ment of the departments or bodies subject to         Ri£u!.ition (F.H.C ) No 729.70 ami Articles 13
                                                     and 14 o : Regulation ( tEC, Euraiom, ECSC)
its inspection;    it has the power to moke          N >> 2.71 . This measure shall also apply to the
                                                     inspection of any fund set up by the
enquiries of any official responsible for a          Communities.
revenue and expenditure operation , and to use
any of the auditing procedures appropriate
to those departments or aganclis.
The Audit Board , in order to obtain all the
necessary information for the performance of
the task entrusted to it by the Treaties and
the measures taken to implement them , may be
present , at its request , during the operations
 ---pagebreak--- carried out by the Commission in implement­
ation of Articles 8 and $ of Regulation
(EEC) Bo 729/70 and Articles 13 and 14 of
Regulation (EEC, Euratom , ECSC) No 2/71 .
This measure shall also apply to the in­
spection of any fund set up by the Communi­
ties .
                Arti ole 88                                                                           Article
                                              Article 88
                                              The Court of Auditors shall ensure that all   Unchanged
The Audit Board shall ensure that all se­     securities and cash on deposit or in hand are
                                              checked against vouchers signed by the
 curities and cash on deposit or in hand are  depositaries or against official memoranda of
                                              cash and securities held. The Court may carry
 checked against vouchers signed by the depo- out such checks itself.
 sitaries or against official memoranda of
 cash and securities held.   The Board may
 carry out such checks itself .
 ---pagebreak---                                                            Article 89
                irtiolò 89
                                                           The Commission and the other institutions shall
                                                           afford the Court of Auditors all the facilities
The Comaieeion and the other institutions                  and give it all the information which the Court
                                                           may consider necessary for the performance of
shall afford "the Audit Board all the facili­              its task, and shall in particular afford all the
                                                           information obtained as a result of the checks
                                                           which they have carried out, as required by the
ties and give it all the information which                 rules laid down by the Community, within the
                                                           departments responsible for the management of
the Board may consider necessary for the per­              the Communities' finances and for effecting
                                                           expenditure on their behalf. In particular, they
formance of its task , and shall in particular             shall place at the disposal of the Court of
                                                           Auditors            all      documents         concerning       the
afford all the information »bhin*d                         conclusion of contracts and all accounts of cash
as a result of the checks which they have car­             or      materials,           all     accouniii'5     records     or
                                                           supporting documents, and ako administrative
ried out , tt required by ths rultJ laid dovti by the Cos- documents pertaining thereto all documents
                                                           relating to revenue and expenditure, ali
Bum ty, within the departments responsible for             inventories, all lists of posts in the departments,
                                                           which the Court of Auditors may consider
the managedent of the Communities' finance a               IK cssary fur auditing the revenue and
                                                           expenditure account on the basis of records or
arid for effecting expenditure on their behalf.            on the spot.
                                                           To this end , the officials whoie operations arc
In particular , they shall place at the dis­               chc.l.cd by the Court of Auditots snail in
                                                           {■articular :
posal of th« Audit Board all Qoejier/r.B c.nc.rr-           ,'ni ; h:i" ihiir tccorus o! ca;:r> in lurid, 3ny
                                                                 (.. '••■r I' -,. I.   s».-|t.iti' <          ' CrliH of al;
5og the concliira.-u of contracts EJ.O all C ^covuto             I 'T'Js. fid               i'u wr>»>".:t.-.ig Jr):i;mcr.ti iii
                                                                 "vsr-cct •          ilr.'ii Stcv ai-Jili::'- of tVs funds
of cash or .'uatsrialt , all accouiii.-i.rg rt>co-ds             with .vhi'Ji they are cit'rm't d, a::d aho any
                                                                 books. * register!. and <>: her documents
or supporting documents , and alGO air.ini stra-                 relating thereto;
ti ve documents pertaining thereto , all docu-             (b) present the correspondence and any other
                                                                 document                required       for       the ■ full
nents relating to revenue and expenditure , all                  implementation of the audi; referred to in
                                                                 the first paragraph of Article 87.
inventories , all lists of posts in the depart­
ments , which the Board may consider necessary             The information supplied under (b) may be
                                                           requested only by the Court of Auditors or by
 for auditing the revenue and expenditure ao–              one of its members, and such request shall be in
                                                           writing.
 count on the basis of records or on the spot .            The Court of Auditors shall be empowered to
                                                           audit the documents in respect of the revenue
                                                           and expenditure of the Communities which are
 To this end , the offioialB whose operations              held by the departments of the institutions and,
                                                           in particular, by the departments responsible for
are checked by the Audit Board shall in parti­             decisions in respect of such revenue and
                                                           expenditure.
 cular :
 ---pagebreak---                                                              – 101
( a) "show -their records of ca6h in hand , any    Unchanged
     other cash , securities and c.aterials of all
     kinds ,   and also the supporting documents
     in respect of their stewardship of the
     funds with which they are entrusted, and
     also any books , registers and other do­
     cuments relating thereto ;
(b) present the correspondence and any other
     document required for the full implement­
     ation of the audit referred to in the first
     subparagraph of Article 87 .
The information supplied under (b) may be re­
                                              >
quested only by the Audit Board or by one of
its members , and such request shall be in
writing.
The Audit Board shall be empowered to audit
the documents in respect of the revenue and
expenditure of the Communities which are held
by the departments of the institutions and ,
in particular, by the departments responsible
loi     ^ 'licna in respect of such revenue and
expenditure .
 ---pagebreak---                                                                                                                                                      - 102
The task of establishing that the revenue has                                                         Unchanged
been received and the expenditure incurred      The task of establishing that the revenue has
                                                been received and the expenditure incurred in a
in a lawful and proper manner   and that the    lawful and proper manner and that the financial
                                                management has been sound, shall embrace          ihe
financial management has been Bound, in­        utilization by bodies outside the institutions of
                                                Community funds received by way of aid.
cludes the utilization by bodies outside the    The granting of aid to bodies outside the
                                                institutions shall be subject to the agreement by
institutions of Community funds received by     the recipients to an audit being carried out by
                                                the Court of Auditors on the utilization of the
way of aid.                                     amounts granted as aid.
The granting of aid to bodies outBide the
institutions shall be subject to the agree-
 tent ly the recipients to an  audit being
carried out by the Audit Board on the utili­
sation of the amounts granted as aid.
                                                                                                                        Article 90
                Article 90                       Article 90                                             The Court of Auditors shall transmit
                                                                                                        to the Commission and the institutions
                                                 Any comments which are, in the opinion of the          concerned , by J5 July at the latest ,
Any oomments which are , in the opinion of the   Court of Auditors, of a nature such that they          any comments which are , in its opinion ,
                                                should appear in the report provided for in             of a nature such that they should
Audit Board, of a nature such that they should   Article 78d of the Treaty establishing the             appear in the report provided for in
                                                 European Coal and Steel Community, Article            Article 78f of the Treaty establishing
appear in the report provided for in Article    206 of the Treaty establishing the European             the European Coal and Steel Community ,
                                                Economic Community, and Article 180 of the             Article 206a of the Treaty establishing
78d of the Treaty establishing the European     Treaty establishing the European Atomic Energy          the European Economic Community and
                                                Community shall be communicated to the                 Article 180a of the Treaty establishing
Coal and Steel Community, Article 206 of the     Commission and the institutions concerned.
                                                                                                        the European Atomic Energy Coaaunlty.
Treaty establishing the European                Each institution shall address its reply to the        Each institution shall addres,3 its reply
                                                 Court of Auditors. The replies of the                 to the Court of Auditors by 3 ? October
 Econooic Community, and Article 180 of the     institutions other than the Commission shall be        at the latest . The replies               the
                                                 forwarded simultaneously to the Commission.           institutions other than the Commission
 Treaty establishing the European Atomic Energy The Court of Auditors shall attach to the              shall be forwarded simultaneously to
                                                 annual report an assessment of the soundness of       the Commission .
 Community Bhall be communicated to the Commis­  the financial management.                              The Court of Auditors shall attach to the annual
 sion and the institutions concerned.                                                                   report an assessment of the soundness of the
                                                                                                       financial management.              «
 ---pagebreak---                                                                 ·                  - ΙΟΛ
                                                 Before or after the accounts for
 Each institution shall address its reply to the a financial year have been c l osed .
                                                 any institution may r equest t_he
 Audit Board.   The replies of the institutions  Court of Auditors to forward , in
                                                 a ddition to the annual report ,
 other than the Commission shall be forwarded    reports or analyses in respect of
                                                 specific pr oblems relating to the
 simultaneously to the Commission.   The Audit   tfcnera 1 budget of the European
                                                 Communi ties .
 Board shall attach to the annual report an
                                                 The Court of Auditors may , on its
 assessment of the soundness of the financial    own initiative , place similar reports
                                                 or analyses before any institution .
management .
The European Parliament and the Council may
request the Audit Board to forward, in addition
to the annual report , reports or analyses in
respect of specific problems relating to the
accounts of financial years which have been
closed.   The Audit Board may, on its own ini­
tiative , place similar reports or analyses be­
fore the European Parliament or the Council .
 ---pagebreak---                                                                                                                                            - 104
                 Article 91                                                                                    Article 91
                                                 Article 91
                                                                                                   The Court of Auditors s h all t ran smit
                                                 The Court of Auditors shall transmit its report   to the a utho ritic s responsible fo r
The Audit Board, shall conclude its report on    to the institutions 45 days after receiving the   giving dis c harge and to t hc_ r t bor
                                                 revenue and expenditure account.                  institutions , by 30 November fet tho
the accounts for the preceding financial year                                                      latest , its annu.il report accompanied
                                                 The replies from the institutions shall be        bv the replies , and it shall ensure
                                                 forwarded to the Court of Auditors three          publication thereof in the Official
not later than 15 July.
                                                 months after they have received the report and    Journal .
                                                 the comments referred to above.
The Audit Board shall , not later than that
date , make known its observations on the 'ba­
lance sheet .
The revenue and expenditure account , the ba­
lance sheet and the report of the Audit Board ,
together with the replies to the "comments ,
shall be submitted by the Commission to the
European Parliament and the Council not later
than 31 October.
                       t
                 Article $2
                                                  Article 92                                                       Article 92
 The Council and the European Parliament shall ,  The       European    Parliament,    upon      a Unchanged
                                                  recommendation from the Council which shall
 before 30 April of the next year , give a dis­    act by a qualified majority, shall, before 30
                                                   April of the next year, give a discharge to the
 charge to the Commission in respect of the        Commission in respect of the implementation of
                                                   the budget. If that date cannot be met, the
 implementation of the Budget . If that datt       European Parliament or the Council shall
                                                   inform the Commission of the reasons for the
 cannot be met , the Council, or the European      postponement.
                             \
 Parliament shall inform . the Commission of the
  reasons TOT the postponement *                                                                                                                 t
 ---pagebreak---                                                  The institutions shall take all appropriate steps   The Financial Controller and all the
The institutions Bhall take all appropriate      to take action on the comments appearing in the      institutions are to conform with the
                                                 decisions giving discharge. At the request of the
steps to take action on the comments appear­     European Parliament or the Council, the             comments given by the European
                                                 institutions shall report on the measures taken      Parliament in the decisions giving
ing in the decisions giving discharge .   At     in the light of these comments and, in
                                                 particular, on the instructions given to their       discharge . At the request of the European Pari 1 ament
the request of the European Parliament or        departments which are responsible for the             or of the Council , the institutions. shall report
                                                 implementation of the budget. Such reports            to the European Pari 1 anient on the measures
the Council , "the institutions shall report     shall also be forwarded to the Court of               taken in the ligtvt                      -J-
                                                 Auditors .                                           of these comments and, in particular ,
on the measures taken in the light of these
                                                 Subject to the provisions of the second sentence     on the instructions given to their
                                                 of the second subparagraph, the institutions
comments and, in particular , on the instruc­     must give an account, in the Annex to the           departments which are responsible
tions given to their departments which Eire
                                                 revenue and expenditure account for the next          for the implementation of the budget .
                                                 financial year, of the measures taken in the light   Such reports shall also be forwarded
                                                 of the comments appearing in the decision
responsible for the implementation of the                                                             to the Court of Auditors              and to the
                                                 giving discharge.
Budget . Such reports shall also "be forwarded                                                      ' Commission of the European Ccpmunities .
to the Audit Board.
                                                                                                      Subject to the provisions of the second sentence ....
Subject to the provisions of the second sen­                                                          (and the text following - Deleted)
tence of the Becond subparagraph , the insti­
tutions must give an account , in the axmei
to the revenue and expenditure account for
the next financial, year , of the measures taken
                                                                                                                              Article 92a
in the light of the comments appearing in the
                                                                                                    All institutions and all staff of the European
decision giving discharge .
                                                                                                    Comnunl tl es shall provide to the European Parliament
                                                                                                    any infornation which it calls for in the context
                                                                                                     of Its exercise of control of the general budget
                                                                                                     of the European Connunities.
 ---pagebreak---                        TITLE VII                                           TITLE VII
                                                                                                                                           TITLE VII                - 106
     SPECIAL PROVISIONS APPLICABLE TO THE             SPECIAL PROVISIONS APPLICABLE TO THE                                   SPECIAL PROVISIONS APPLICABLE TO THE
    RESEARCH AND IINVESTMENT APPROPRIATIONS          RESEARCH AND INVESTMEJJT APPROPRIATIONS                                RESEARCH AND INVESTMENT APPROPRIATIONS
                  Article 93                                                                                                            Article 93
                                                          Article 93
                                                          The provisions of Titles I to VI and XI shall apply    1 . Unchanged
 This Financial Regulation shall apply to the             Jo the research and Investment appropriations set ot t
                                                          in the Annex provided for in Article 94,
 research and investment appropriations set out i        hereinafter called Annex, and the financial
                                                   «
                                                         scheme referred to in Article 98, save as
 in the annex provided for in Article 94 , save          otherwise provided in this title or where they
                                                         are incompatible with the special provisions of
 as otherwise provided in this Title or where    !       this title.                                              * ?he ilnancincLof the expend !               re -
 they are incompatible with the special pro­
                                                                                                                     jarogramrrles la governed by ♦->». P^-–
 visions of this Title.                         j
                                                I
                 Article 94                                                                                                           Article QA
                                                        Article 94
                                                        The total amount of research and investment
The total amount of research and investment              appropriations in terms of appropriations for
                                                                                                                     Researched investment apprr.pri.f ;^nn
                                                        commitment and appropriations for payment to                IjhgjJLbe. entered in a special chap.-**
appropriations in terms of appropriations for           be financed in accordance with the Decision of
                                                                                                                    ln__the_section of the                7^^–^
                                                                                                                     to the Commission .                     ~
                                                        21 April 1970 shall be entered in a special
payment to be financed in accordance with               chapter in the section of the budget relating to            ft detailed function al breakdown n r
                     !
                                                        the Commission ; these research and investment              –PPr °Pr ia ti ons shall be given in an~~          "
the Decision of 21 April 1970 shall be entered          appropriations shall be set out in detail in an
                                                        Annex to that section.
                                                                                                                    annex to this section T               :
in a special chapter in the section of the                                                                           That annex , which forms an
                                                        That Annex, which forms an integral part of the
Bucket relating to the Commissi on; these               budget, shall contain:                                      integral part of the budget, ehali
                                                                                                                   contains
                                                        – appropriations intended to finance all the
research and investment appropriations shall                research and investment objectives,                    - appropriations intended to finance
be set out in detail in an annex to that
                                                        – appropriations for other activities.                         all the research and invcat,nant
                                                                                                                       objectives ,
section .
                                                                                                                   - appropriations for other ac;:ltrities .
That annex , which forme an integral part
cf the Budget , Bhall be drawn up using a
 ---pagebreak---                                                                                                                               - 107
                    Artide 95                    Article 9S                                                       Artici * 95
                                                 1 . An overall allocation covering several years       Unchanged
                                                 (hereinafter called 'tranche') shall he made to
1.   An overall allocation covering several      the chapter of the huJget corresponding to each
                                                 research and investment objective as defined by
years (hereinafter called 'tranche' ) shall be   the Council in its decisions relating to
                                                 programmes or corresponding decisions.
made to the chapter of the Budget correspond- .
ing to each research and investment objective
                                                  In buJpcwiy terms, the tranche shall be the
as defined by the Council in its decisions        total allocation provided in the budget for each
                                                  research and investment objective, taking into
relating to programmes or corresponding de­       account any financi.il reserves, except where the
                                                  objective is to con-ist of several specific stages
cisions .                                         each forming a self-contained whole.
                                                  2. Amounts authorized annually in the
In budgetary terms , the tranche shall be the     budget to cover research and investment
                                                  expenditure shall include appropriations for
total allocation provided in the Budget for       commitment and appropriations for payment.
                                                                                                     I
each research and investment objective , taking   3,     The appropriations for commitment within
                                                  each tranche are intended to enable the .
into account any financial reserves , except       Commission to meet all the legal obligations
                                                   which it may contract.
where the objective is to consist of several
                                                   They represent the upper limit of expenditure to
specific stages each forming a s«1f-conta1n»d      which the Commission may commit itself
 wholi .                                           during the financi.il year in question for the
                                                   attainment of the objectives to which this
2.    Amounts authorized annually in the Budget    expenditure relates. ■
to cover research and investment expenditure       Notwithstanding the provisions of Article 6 the
                                                   appropriations for commitment shall remain
shall include appropriations for cosiitaent and    valid until they are cancelled under the
appropriations for payasnt.                        budgetary procedure.
                                                7 4. Appropriation* for payment represent the
3.     The appropriations for commitment within    upper limit of expenditure which may be            .
                                                   incurred or authorized during each financial
each tranche are intended to enable the Com­       year to cover commitments entered into during      •
                                                   the current or prccrding financial years.
                                                                                                      I
mission to meet all the legal obligations
                                                    Notwithstanding the provisions of Article 6,
which it may contract .                             those appropriations for payment corresponding
                                                    lo appropriations for commitment which remain \
                                                    valid shall be carried forward until cancelled-
                                                    under budgetary procedure.
 ---pagebreak---                                                     108
  They represent the upper limit of expenditure
  to which, "the Commission may commit itself   . .
• during the financial year in question for the
  attainment of the . objectives to which this
  expenditure relates.
  The appropriations for commitment shall remain
  valid until they are cancelled under the bud­
  getary procedure .
  4.  Appropriations for payment represent the
  upper limit of expenditure which may "be in­
  curred or authorized during each financial -
  year to cover commitments entered into during
  the current or preceding financial years .
 ---pagebreak---                                                                       – to *
                                                           Article 96
                 Article 96
The annex provided for in Article 94 shall        Del eied
be in two partBj
(a) Part I , the total of which in terms of
    payment appropriations is shown in a spe­
    cial chapter in the section of the Budget
    relating to the Commission , shall comprise :
    - appropriations for carrying out each re­
      search and investment objective }
    - appropriations for other activities , in
      particular those provided for in Ar­
      ticle 174 ( 2), (b), (c ) and ( d) of the
      Treaty establishing the European Atomio
                  t
      Energy Community}
    - appropriations , where necessary, to cover
      the balances on the appropriation accounts
(b) Part II shall comprise the appropriation
    accounts , in particular those concerning:
    - stafft
 ---pagebreak--- Article 97                                                 Ariicle 97
Notwithstanding the provisions of paragraphs 2   Unchanged
and 3 of Article 15, the nomenclature of the
Annex shall be based, as regards {he description
of chapters and articles, on the use of
expenditure resulting mainly from carrying out
research objectives and other activities.
 ---pagebreak--- U'ithin the chapters and appropriation accounts,  Within the chapters and articles, expenditure         Unchanged
                                                  shall be classified according to its nature into
expenditure shall be classified according to      categories which shall be subdivided into
                                                  headings; in the budget, however, thii
its nature as shown in ^nnex IV to this
                                                   classification *haH oply be used in respect of
Financial Regulations    in the Budget , .         categories.
however, this classification shall only bo
used in respect of categories .
                                                    Artide 9M                                                                   Article 93
                 Article 98
                                                    1.     In addition to t|ie documents referred to in  1 . Unchanged
1.   The appropriation accounts referred to
                                                    Article 12, a financial scheme shall be drawn up
                                                    to support the preliminary draft annex. , •
                                                    This shall contain, if| the form of appropriation
in Article 98 (b) Bhall record the uses and         accounts, the appropriations made available is
                                                    the chapters and articles of the abovementioned
resources of the prinoipal instruments made         Annex corresponding to the instrument! of
                                                    implementation.
available for the implementation of the re­
search and investment objectives.                   For example, such iniitruments irej
                                                    – the scicntjfic divisons,
These instruments arei     the Btaff) the infra­    – the général servie^
                                                    – the scientific and technical servtcet.
structures general services and overheads}    the
scientifio and technical Bervioes)    the major   • In addition, the financial scheme shall contain
                                                    a - staff expenditure account. •
installations .
                                                    2.     The    financial    scheme, amended if       2 . The financial schema , amended If
                                                                                                             necessary in accordance with Oio
In addition , appropriation aocounts nay            necessary after the adoption of the budget, shall        budget, shall serve es the basis ior -
                                                    serve as the basis for management.                       'oanageeent*        - –
be opened in order to follow the progress
                                                    Txpendlture In respect ef the lnstrueents           Unchanged
of services performed on behalf of outsiders.        of Irpleaentatton and the staff expenditure'
                                                    account shall be entered provisionally In this
                                                     tcheat.
2. Under the heading of uses , the appropri­
ation aooounts shall reoord the countervalue
of the oeans used and also the expenditure
on behalf of third parties .
 ---pagebreak---                                                  112
Under the heading of resources , the appropri­
ation acoounta shall reoord on the one hand(
the count ervalue of the Beano used charged
either to research objectives or to other appro­
priation accounts and, on the other hand, the
proceeds arising f^oni the use of suob mewiB(
on behalf of third parties *
The fcalanoes of the appropriation accounts re­
sulting from a surplus of uses over resources
shall be charged to the corresponding chapter
of Part I of the annex provided for in Ar­
ticle 94 .
The balanoe of eaoh appropriation account
 shall roprosent tlic aaxitui tot expenditure
tc wO CamOrcd AM       WwCT J     'Ife Oilapi*^
of P»rt I of the **id annex.
 ---pagebreak---  The balances of tho appropriation acoounto      3.    An     appropriation   account    shall    nc 3. Unchanged
                                                 provided       for     each     instrument       of
resulting from a surplus of resources over       implementation. TIic appropriations entered
                                                 therein in the diffeient chapters of the Annex
uses shall be entered in "the statement of       for these instruments shall be classified
                                                 according to their nature pursuant to the second
revenue in the Budget .                          subparagraph of Artjcle 97.
                                                 This same classification shall also be used tor
3.   Uses and expenditure charged to the appro­  expenditure in the st^ff expenditure account.
priation accounts shall not exceed the amounts   4. The expenditure entered provisionally in         V. Unchanged
                                                 the staff expenditure account shall not exceed
authorized in respeot of such accounts , save    the     amounts     iqade    available    in    the
where , as a result either of transfers within   appropriation accoupts.
chapters of Part I of the annex referred to      The expenditure entered provisionally in each
                                                 appropriation accopnt shall not exceed the
in Article 94 or of additional amounts made      appropriations authorized in respect of the
                                                  chapters and articles in the Annex for the
available for outsiders , resouroeB in excess    instrument in qucstjon, save where, as a result
                                                 either of transfers within chapters and articles of
of the estimates make it possible to increase    this Annex or of additional amounts made
                                                 available for third parties ,
aces and expenditure correspondingly,             surplus resources make it possible to increase
                                                  expenditure accordingly. These additional
                                                  amounts shall be cade available as :
tfith reference to the appropriation accounts     – commitments, up to the amount of the
                                                      repayment provided for in the contracts
relating to servioes performed on behalf of           concluded with requesting third parties,
ihird parties additional amounts mgr be entered   – payments, up to the amount of the
                                                      entitlements for repayment.
during the finanoial year in order to cover -
                                                  5. The provisional entries in the staff            5. Unchanged
additional expenditure specifically incurred      expenditure account shall be distributed over
                                                  the appropriation accounts each month after
 in respect of such services .  These additional  deduction of the Community tax.
 amounts shall be shown as :          .  '
 _ commitments , up to the amount of the repay­
    ment provided for in the contracts concluded
    with requesting third parties ,
 ---pagebreak--- payments , up to the amount of the revenue
actually collected as repayment for the above-
mentioned expenditure by requesting third
parties .
 ---pagebreak---                                                      The provisional entries in the appropriation         Unchanged
                                                     accounts shall be distributed – by m^ans of
                                                     final entries – over the research objectives and
                                                     other activities each month proportionately
                                                     according to the work done by the instruments.
                                                     6. A document shall be appended to the           6. Unchanged
                                                     revenue and expenditure account showing the
                                                     results of the operations provisionally charged
                                                     to each appropriation account and operations
                                                     charged to the staff expenditure account.
                                                                                                                               &
                  .Article 99                                         Article 99                                    Article 99
 As regards transfers of scientific and techni-      Unchanged                                           unchanged
                                                   1
 cal equipment between research and investment
 projects , an amount equal to the residual va­
 lue of that equipment shall he entered as ex­
 penditure for the recipient project , while
 that amount is credited to the donor project
~by means of an entry showing a reduction of
 expenditure incurred .   The residual value . •
 shall be fixed ih accordance with a procedure
 which the Commission shall lay down in .advance .
 The operations referred to in this Article
 shall be shown in a special account .
 ---pagebreak---                   Article 100                                 Article 100                                                  Article 100
                                                              1.    A schcJulc of amounts of and due dates       Unchanged
  1.   A schedule of anount-s of and due dates for comml b- '
                                                              for commitments and p.iyments, forming an
                                                              integral p.irt of the budget, shall be attached to
• ents and payments, foralng an integral part of              the Annex provided for in Article 94 and shall
                                                              be drawn up as follows by chapter and article :
  the Budget , shall be attached to Part I of
                                                              (a) for each tranche, the schedule of amounts
  the annex provided for in Article 94                            and due dates shall show the time table for
                                                                  the utilization of the appropriations for
  shall "be dravm up as follows by chapter and                    commitment; this shall be subject to annual
                                                                  review;
  irticle :
                                                              (b) for each estimated appropriation for
                                                                  commitment, the schedule of amounts and
                                                                  due dates shall show the annual timetable
   [a) for each tranche , the schedule of amounts and due
                                                                  laid down for the payments.
       dates shall show the timetable for using
       the appropriations for commitment j       this
       shall be subject to annual review;
  (b) for each estimated appropriation for
       commitment ,   the schedule of anounts and due dat:s
    M
     . shall show the annual timetable laid
|      down for the payments.
  2.   As regards borrowing and lending , a schedule
Lf asei'tft 82d due dates shall be established
I
 ion the basis of interest and depreciation
  payments agreed in the relevant contracts
   for the servicing of such borrowing and
  lending.
 ---pagebreak---  3«    Ttoe Budxet eha.ll altto ehow , for InTorto–
 ation , an estimate of revenue and expendi­
ture to be effected in the currencies of
 non-member countries , special mention being
 made of borrowing and lending In Buch curren­
 cies .
                    Article 101
                                                    Article 101                                                 Article 101
 If , at the beginning of a financial year , the    If, at the beginning of a financial year, the     Unchanged
                                                    budget has not yet been finally adopted,
 Budget has not yet been finally adopted, ex­       expenditure shall be effected as follows:
 penditure shall be effected as follows :           (a) regarding the appropriations made available
                                                        in each chapter for the Instruments Artlcle-8
                                                         shall apply.
 (a) Regarding the appropriation accounts re­
       ferred to in Article $6 (b), Article 178
                        /
       of the Treaty establishing the European
     . Atomic Energy Community fehall apply to
       commitments and payments relating to ex­
       penditure of a kind already approved in
       principle in the last Budget duly adopted.
 ---pagebreak--- -jivalcr-t 'to not more than one-     116
 of the total appropriations in
■opriation account in question for
seding finanoial year may be spent
ith in respect of each appropri-
count , provided that this does
   the effect of placing each month
isposal of the Commission appro–
B- in excess of one-twelfth of
ovided for in the draft "budget , or
bsence »thereof,
           ^
                   in the preliminary
S£e*. Commitments azy be effected
   appropriation account up to an
5t exceeding one-fourth of the
propnations in the appropriation
In question for the preceding finan-
p , increased by one-twelfth for
itional month , but shall not ex-
   amount provided for in the draft
 >r , in the absence thereof , in
  œinary draft budget .
 'quest of the Commission and with-
 idice to the preceding subpara^-
 »
 > Council , acting by a qualified
     day ,  on the basis of admini –
 ---pagebreak---                                                      (b) regarding the specific appropriations of the
ID ) Regarding the chapters of Part I of the             chapters in the Annex, payments may be effec
     annex provided for in Article 94 concern­          monthly in respect of any chapter, up to an
                                                         amount not exceeding one-twelfth of the
                                                         annual estimates shown for that financial
     ing research and investment projects , pay­         year in the schedule of amounts and due
     ments may be effected in respect of any             dates for payment in respect of the
                                                         estimated appropriations for commitment.
     chapter , up to an amount not exceeding
                                                         Commitments may be effected up to an
     one-twelfth of the annual estimates shown           amount not exceeding one-fourth of each
                                                        appropriation shown in the schedule of due
     for that financial year in the schedule of         dates for the estimated commitments for the
                                                        financial year concerned, increased by one-
     amounts and due dates for payment In respect of    twelfth for each month elapsed, provided . ;
                                                        that they do not exceed ' the amount
     the estimated appropriations for commit­           provided for in the dr^,ft budget, or in the
     ment .   Commitments may he effeoted up to
                                                        absence thereof, in tlje preliminary draft
                                                        budget.
     an amount not exceeding one–fourth of each
     appropriation shown in the schedule of
     due dates for the estimated commitments
     for the financial year ooncerned , in­
     creased by one-twelfth for each additional
     month , provided that they do not exceed
     the amount provided for in the draft
     budget , or in the absence thereof , in the
     preliminary draft budget .
 ---pagebreak---                      Article 102
                                                      Article 102
  1 . Every decision relating to transfers with­
                                                      1 . Every decision relating to transfers shall be
  in a chapter or from one chapter to another         subject to prior approval by the Financial
                                                      Controller, who shall certify that the funds are
  shall be subject to prior approval by the Finan­    available and that these operations are in order
                                                      and in accordance with the provisions in force.
  cial Controller , who shall certify that the
                                                      2.    However, if the Financial          Controller
  funds are available and that these operations       considers that he cannot ascertain in advance
                                                      the effects of such transfers on the financial
  axe in order and in accordance with the pro­        balance of the appropriation accounts of the
                                                      financial scheme, he shall confine himself to
  visions in force .
                                                      delivering an opinion.
                                                      In that case, and in so far ?s he is empowered,
  2 . However , if the Financial Controller con­
                                                      the authorizing officer jpiay on his sole
  siders that he cannot ascertain in advance          responsibility effect the transfer, provided that
                                                      he makes available each month to the Financial
  the effects of such transfers on the finan­         Controller all appropriate information enabling ,
                                                      an assessment to be made oj; the financial effects
                                                      of such transfers.
  cial balance of the appropriation accounts ,
  he shall confine himself to delivering an           If as a result of such information the Financial
                                                      Controller finds that a financial imbalance has
   opinion.                                           occurred in any appropriation account, he shall
                                                      inform the authorizing officer thereof.
   3 » that-case , and in so far as he is empowered ,
                      t
                                                      3. Adjustments between categories of the staff
   the authorizing officer may on his Bole res­       expenditure account and within the specific
                                                      appropriations in the appropriation accounts
  ponsibility effect the transfer , provided          shall   be   communicated      to    the  Financial
                                                      Controller but shall not require his prior
  that he makes available each month to the Finan-
                                                      approval.
–oi&l -Controller ail- appropriate information en- '
                                                      4.    In order to enable the last definitive
  abling an assessment to be made of the finan-       entries to be made transfer^, may be made even
                                                      after the end of the financial pear.
- cial - effecte of such transfers ,-  -  –
 ---pagebreak--- If as a result of such information the Finan­
cial Controller finds that a financial im­
balance has occurred in any appropriation
account , he shall inform the authorizing offi­
cer thereof.
 ---pagebreak---                           Article 103                                                                                                                      - 122
                                                                      Article m                                                                Artlcli 103
       1 . Notwithstanding Article 21 ( 2), the •'<>'■•
                                                                       I. NutwiilntJtiJinK Article 21 (4), (he                       Unchanged
      mission cay, within the limits and i-j I ;&                     Commission may, within the limits anil in the
                                                                      conditions fixed at the final adopiiqn of the
      conditions fixed at the final adoption of                       iijtcmcnt of expenditure on rac^rch and
                                                                      Investnent , nuke transfers of tppropriations
      the statement of expenditure on resesrch                        between chapters, which shall thereupon he
                                                                      specified hy name in the statement.
      and development , make transfers of \ypic-
      priations between chaptore , v.hi z':. C.:.l I                  2. Notwithstanding Article 21 (6), the
                                                                      prohibitions of transfers referred to therein thai!
                   V«              V*>         4 >• 41  #   ••                     -    î:~*kt . ♦„
                   WV               "J  ••WW            »•»!*»•
                                                                      expenditure according to iti nature, vithin the
      méat .                                                          meaning of Article 97.
                                                                       3.      Notwithstanding Article 60(a),
                                                                       a contract for scientific and technical
       2. notwithstanding Article 21 ( 5J »                r ;-        equipnent or building work                   .          '
                                                                      may he let by private treaty where th; amount
      hibitiona of transfers referred to ihex%i /.                    Jam HOI IKvllu 2fl '"tC Uiiiii of
                                                                      without prejudice to those cases whepe private
                                                                                      •«      «   •                                »
                                                                      IIVJUO uit «immiu u«KK »                     uw \»tt K+t •••«
                                                                      fd) and without pmudice to the general
       C? ?2?sndit'^r? ic?crii=s tc its rriurs ,                th­   UiMtgJiiuii iu timic                        itnuwi, «» »+i
                                                                      at possible and by all suitable means, from
       in the cleaning of Article 57 .                                lho>c tjpj'oic of »up|>i;iiig liic goou> Aiki
                                                                      services required. by the contract.
, - 3. Uotwithetarrling point (a) of Article 6C ,                     4.       Notwithstanding Article 62, the following
                                                                      shall be submitted, bef*»rc the decision of the
       a contract for scientific and technical -.ifr-                 authorizing officer, f»r ?he opinion of an
                                                                       l>(y | fApy rAvol                                  J r»«
 ■■– plibB itig( h* lei fcy private treaxy wnere \t>'                 whose composition anJ functioning shall be
                                                                      fcT*k\J b** th? frfSMffi of 'mplemfn'atiofi
       amount does nox exceed 20 000 units of &c-
                                                                      envisaged in Article 118 :
       count , without prejudice to those c&b&s wherf
Î                                                                     (a) contracts of a scientific or technical nature,
       pr*v&»€ treaties &X6 ftilowid under Arlicle C0                       For sums exceeding 100000 units of account,
                                                                            and the acquisition of immovable property;
       {h) f (o) -and ( d) and without prejudice to the'
|                  ^ • „  1 », . A ...               -,
       £w*«w> w* wwA*0«a*Ai>u «w ÀuVikV UUuiUvVi lì Vt
                                                             ,        (t/                                 «:J C«|-i|'AU.«ï v» m
                                                                            nature other than tucntiftc or technical, for
 1-        ■» | ••       mm            tuid "by all uuxt-bi'i'      ■    --       cx.-.vJi.it -* O'- '-O u;.i;9 of
  *" meAUB , from those capable of supply
  * '-%&<>£*» uid Bcrvioes tcquired by the -com. rnew "
 ---pagebreak---                                                    – ldj _
4 . Notwithstanding Article 62 , the following
shall "be Butaitted, before the deoision of the
authorizing officer , for the opinion of a pur­
chases and contracts advisory commt ttee, whose '•
composition and functioning shall be settled
by the measures of implementation envisaged in
Article 118:
(a) contracts of a scientific or technical
    nature , for sums exceeding 100 000 units
    of account , and the acquisition of in>-
    oovable property}
(b) contracts for supplies and equipment of a
    nature other than scientific or technical ,
    for sums exceeding 200 000 unite of
    account :
 ---pagebreak--- c ) contracts for supplies end equipment of       (c) contracts for supplies and equipment of a      Unchanged
                                                      nature other than scientific or technical for
     a nature other than eciervtifio or techni­       sums exceeding 5 000 uniis of account, to
                                                      which points (c), (d) and '(e) of Article 60
     cal for Bum b exceeding 5 000 unite of ac­       apply.
     count , to which points ( c) and ( d) of Ar­
                                                  5.    Notwithstanding the provisions of the first
     ticle 60 apply.                              subparagraph of Article 68, scientific and
                                                  technical equipment may be sold, without first
                                                  being advertised, following a decision taken by
                                                  the authorizing officer after he has consulted the
j . Notwithstanding Article 68 , sales of          Advisory ConmHtee on Procurements and Contracts.
icientxfic and technical equipment shall not
->i governed "by the first subparagraph of that
jrticle , save as vhere otherwise decided on
■he opinion of the purchases and contracts
advisory coonl ttee.
 ---pagebreak---                                                                                                    TITLE V\M
          SPECIAL PROVISIONS APPLICABLE            SPECIAL PROVISIONS APPLICABLE         SPECIAL PROVISIONS APPLICABLE
            TO THE EUROPEAN SOCIAL FUND             TO THE EUROPEAN SOCIAL FUND           TO THE EUROPEAN SOCIAL FUND
                                                              (Deleted)                              (Deleted)
                    Article 104                              Article 104                           Article 101
  1.   In accordance with the Council Decision    Deleted                        Deleted
  of 1 February 1971 and without prejudice to
  Article 10 ( 2) of that Decision , the Budget
  for a given financial year shall include , un­
  der the title 'European Sooial Fund* j
  (a) the appropriations for that financial
       yearj
  (t>) the commitment authorizations for the
       two following financial years .
  2.   Subject to Artiole 6 , the appropriations
  for a given financial year shall cover the pay-
  nentB which fall to be made during that year
i in respect either of commitments entered into
  during that same financial year or to commit-'
  nenta entered into during preceding financial
  years under the authorizations referred to in
  j&ragraph 1 (b ).
 ---pagebreak---                                                                                                      - 126 -
3.        The coanii tin silt authorizations shall fix
for the two following financial yearB the
amounts tip to which commitments may he entered
into di.u'ing the financial year ooncerned , under
AxtiolM 4 f'-nd 5 of the Council Decision of
     February 1 97 1 •       They shall he grouped accord­
ing tc budget year and broken down according
  fco the budgetary nomenclature .
                            Article 105                              Article 105         Article 105
                                                             Deleted             Deleted
     1.     Approval given by the Commission to schemes
 _ and applications for add submitted by the Member
 i States in accordance with Articles 6 and J of           i
     the Council Decision of 1 February 1971 shall
     constitute comsitaent to expenditure for the
     Buropesn Social Pand6 .
         _ lo zvgzr&s aid from the Fund as referred
      o In Article 10 ( 2 ) of the Counoil Decision
' I
   ! -f . U^tfcTisxy .-15?1 }-      -recognition- of the
 I nti clcQicn'c of Mesbar States' or the approval
      KWijXxp -*.£* «C«3EÍar3Ídi xó "conversión pro­
  ; epts chalí consíitute comoitraent to expendí–
       •re ,
 ---pagebreak---                                                   TI 'i 'IiE VI 1 1                             TITLE VIII            - 127
5I0NS APPLICABLE TO THE           SPECIAL PROVISIONS APPLICABLE TO THE           SPECIAL PROVISIONS APPLICABLE TO THE
CULTURAL GUIDANCE AM)             EUROPEAN AGRICULTURAL GUIDANCE AND             EUROPEAN AGRICULTURAL GUIDANCE AID
D                                 GUARANTEE FUND                                 GUARANTEE FUND
Section I                                       Section I (deleted)                             Section I ( delete)
AI7TE5 SECTIOIT                             GUARANTEE SECTION                                GUARANTEE SECTION
rticle 106                                        Article 106                                  Article 106
of this section shall apply to    Unchanged                            Unchanged
  financed by the European Agri-
ce and Guarantee Fund , Guarantee
ordance with Regulation ( EEC )
  1 January 197 1 onwards .
Article 107                                      Article 107                                   Article 107
bal commitments Bhall he en-      Unchanged                            unchanged
responding to the advano^e
he Member States , in respect
at ions for the Guarantee Section
  Agricultural Guidance and
 ---pagebreak--- The Commission Decisions fixing the amounts of    Unchanged
these advances , in accordance with point (a ) of
Article 5 (2 ) of Regulation (EEC ) No 729/7O
constitute provisional global commitments#
The approval of the Financial Controller
shall have the sole purpose of establishing that
the commitments correspond to the amount of the
advances decided by the Commission, after -
consultation with the Fund Committee , and that
they are within the limits of the total amount
of appropriations in the Guarantee Section of
the European Agricultural Guidance and
Guarantee Fund .
                                                   However , whon the Commission considers
                                                   that a measure may be of a nature
                                                   that v;ould result in the appropriations -
                                                   under a particular chapter being
                                                   exceeded substant.ial-ly-. - the pr-ODOLsal
                                                   in question should be transmitted -^'
                                                   to the European Parliament for its
                                                   opinion .  In such -cases      Pari iaroent -
                                                   should xiive i.tj>.-rfta.etion ^■a^hi-n-js-ne – –
                                                  month .
 ---pagebreak--- The expenditure effected by the departments and             1 . The expenditure effected by the
                                                            departments and agencies in application of
agencies in application of Article 4 of                     Article 4 of Regulation ( EEC) No 729/70 shall
                                                           be the subject of a commitment by chapter,
Regulation (EEC ) NO 729/70 shall be the subject            article and item, and sha^I also be charged as a
                                                            payment, after examination of the statements
of a commitment by chapter , article and item , and         transmitted by the Mcmher States in accordance
                                                           with the provisions laid ilown in application of
shall also be charged as a payment, after - examination of Article 5 (3 ) of the said Regulation , and after
                                                           the approval of the Financial Controller.
the statements transmitted by the Nember States
                                                           The commitment shall be entered into within
in accordance with the provisions laid down in             two months after rcccp|ion of the statements
                                                           transmitted by the Member States. The charging
application of Article 5 (3) of the said                   as a payment shall, in general, be carried out
                                                           within the same period.
Regulation , and after the approval of
                                                           This Article shall apply, without prejudice to
the Financial Controller .                                 the clearance of accounts provided for in Article
                                                           5 (2) (b) of Regulation (EJ£C) No 729/70.
The commitment shall be entered into within two            2. The commitments envisaged under this
                                                           Article shall be deducted from the provisional
months after reception of the statements                   global commitments referred to in Article 107.
transmitted by the Member States .           The
charging as a payment shall , in general ,
be carried out within the same period .
This article shall apply , without
prejudice to the clearance of accounts
provided for in Article 5 (2 ) (b) of
Regulation (EEC ) Ho 729/70 .
 ---pagebreak---                                                                                                                                        - 130 -
                 Article 109                                                  Article 109                                  Article 109
The expenditure shall l>e charged to a                   Unchanged                                             Unchanged
given financial year on the tests of the
payment s loads up to 31 December toy the
departments or agencies referred to in
irticle 4 of Regulation (EEC ) No 729/70 provided
                                                     . •
.that notification of the coraitraent and authorization
  of these payments fias reached the
accounting officer not later than
31 Karch following#
                   Article 110                                                                                            Article 110
                                                           Article 110
                                                           Any differences which may exist between the          Unchanged
Any differences which may exist between                    expenditures charged to a financial year,
the expenditures charged to a financial
                                                           pursuant to Article 109, and those recognized by
                                                            the Commission at the time of clearance of the
                                                            accounts, as provided for in Article 5 (2) (b), of
year , pursuant to Article 109 , and those                  Regulation (EEC) No 729/70, shall be charged
                                                            as under- or over-expenditure to the financial
recognized toy the Commission at the time                   year during which the accpunts are cleared.
of clearance of the accounts , as provided for
in Article 5 (2 ) 00 , of Regulation (EEC )
No 729/70 , shall 1x5 charged to the
financial year during which the accounts
 are cleared.
 ---pagebreak---                                                                                                                             - 13Î
                       Article 111
                                                 Artide 111                                                     Articla 111
                                                 1.   Appropriations which have been globally        Uncnanoed
Appropriations which have teen globally          committed in accordance with Article 107, and
                                                 which have not been the subject of a
committed in accordance with Article 107 ,       commitment under the budgetary nomenclature
and which have not teen the subject of a         in accordance with Articl,: 108 by 1 April of the
                                                 subsequent financial year, shall be aatntalned "
commitment under the budgetary nomenclature      with a view to covering the expenditure
                                                 chargeable to the original financial yeat
 in accordance with Article 108, shall , as
regards provisions relating to anounts
                                                2.    Any appropriations in excess of such
carried forward , he classified as appropri­    expenditure shall he cancelled under the original
                                                financial year.
ations as referred to in Article 6 (l ) (c ),
                                                A provisional global amount corresponding to
where it has not been possible to effect        this sum shall be committed frojn the
                                                appropriations for the current financial year.
charging of the sums as payments before
 1 April .
                        Article 112                               Articla 112                                   Article 112
                                              Deleted                                               Delatad
By way of exception payments made up to
 31 January 1973 by the departients
  and agencies referred   -to in Article 4 of
Regulation (EEC ) No 729/70, shall be charged
to the 1972 financial year .
                        Article 113            Article 113                                                      Article 113
                                               1.    Transfers from one article to another         1# Unchanged
 1,   Appropriations opened in one chapter of  within each chapter shall be made by decision
                                               of the Commission taken not later than 31
 expenditure my not be allocated to another    March of the subsequent financial year, in
                                               accordance wiih the protnlure provided for in
•chapter of expenditure . .                    Article 1 1 of Regulation (V KC) No 729/70.
 ---pagebreak---                                                                                                                                                       - 132 _
                                                           2.    Notwithstanding Article 21 , for payments 2 . Transf er a between chapters , whether
   However , the Commission may propose transfers          chargeable to the financial year concerned,     within" or between the titles created
                                                           transfers within the Guarantee Section of the   in the budget for the~^uarantee Section
    of appropriations between chapters to the              European Agricultural Guidance and Guarantee    of the European Agr icultural Guidance
                                                         ' Fund may be effected between 1 January and 31   and Guarantee Fund , shall b » ir.ade by
    Council , not later than one month before              March of the subsequent financial year by       the Commission , as necessary , up to
                                                           decision   of   the  Commission       acting in  31 March of the following vi;ar.
      31 March ,                                           accordance with the procedure provided for in
                                                           Article 13 of Regulation ( EEC) No 729/70.
       The Council , acting by a qualified najority ,
       shall        take     its decision within three
       weeks .        Should it not have     taken a
       decision within that time , the transfers
       shall be deemed to be approved ,
       2,  Transfers from one article to anothsr
       within each chapter shall be mails by
 | decision of the Commission taker* r.ox later
       than 31 Kirch , in aosordance with the
 I
          « w w ÙJ. 2    OV   J. x 01 m mjTv imi*    Gì.
  j
  ! :.s^ulat ion (ZDC ) L'o 729/7G .
   !
     i
Î
ii
 ---pagebreak---                                                                                             ~ 13S
                                                3 . The Commission way roafre transfers
                                               between the 'Food Aid' char ter ~ar7d~~ "
3. However, for payments chargeable to the
                                               the chapter s of the Guarant ee Sect ion
financial year concerned, and up to the limits
                                               of the European A g ricultur a 1 c u i dance
                                               and Guarant e e Fund up to 3 1 March of
required for implementing Regulation (EEC) No  the following financial ye"ar~i~n
2681 / 74 of 21 October 1974, the Commission   accordance with the limits set by the
may take transfers between the 'Food Aid'      application of Regulation ( pEC )
Chapter and the 'Guarantee Section' chapters   2681 / 74 of 21 October 1974 for
of the European Agricultural Guidance and      payments imputed tp t2^_XLai^acJLjal
Guarantee Fund up to 31 March at the latest.   year concerned .
4. The Budgetary Authority shall be informed ,  4 « It shall take decisions to transfer
immediately of any decisions to make transfers not earl ier  than on7r"mnnf h
under paragraphs 2 and 3 of this Article.      haa Informe d the budgetary authority
                                               of ita proposals in regard to #uca
                                               tjrana feral                   ""
 ---pagebreak---                                                                                                                           - 134 -
                     Section II                             Section II                               Section II
                  GUTP.'.WK SECTION                     GUIDANCE SECTION ( DELETED )          GUIDANCE SECTION ( DELETED)
                    Article 114                             Article 114                              Article 114
 1.  The appropriations provided for in         Deleted                              Del eted
Article 6 (5 ) of Regulation (EEC )
No 729/70 shall be entered as such in the
"budget for the financial years in quest ior,
and shall "be included in the appropriations
to !>e covered in accordance with the
fi-iancaal measures applicable to that
financial year ,
 2•  Appropriations to "bo re-entered from
 preceding financial year3 shall be entered
    such in the 3udget for the financial
 year in which it is provided that they shall
 be coirjaitted .    They shall be oovered by
 revenue in accordance with the financial '
 provisions applicable to the financial
 year for which they are committed subject to
 the special provisions of Artiole 3(5) of the
 Bacieiou of 21 April 1970 | which artiole
 governs tha approprio/t ions .for the Guidance
                                                                                                                                  .
 ---pagebreak--- Guidance and Cuarantco Fund , of which the           135
first entry relates to a Budget before that
of the 1972 financial year.
 3 , Appropriations to be re-entered from
 preoeding financial years , and not expected
 to "be committed in the
 financial year in question , shall "be
 given a special entry in the 'Remarks'
 colvunn in the Budget ,      They shall not require
 to "be covered by the revenue of that
 financial year *.     However , they shall
 constitute commitment authorizations If
 .they are the subject of commitment .
 deoisions pursuant to the        pPov\slorvS
 within the framework of the common
                        t
 agricultural policy .       In that caBG , the
 .corresponding amendaents in respect of revenue
 shall be made in accordance with the -     *
 budgetary procedure .
 ---pagebreak---                                                                                                                                                    _ 136
                     TITLE X                                           TITLE IX                                                TITLE IX
SPECIAL PROVISIONS APPLICABLE TO FOOD AID      SPECIAL PROVISIONS APPLICABLE TO FOOD AID                     SPECIAL PROVISIONS APPLICABLE TO * 000 AID
                                                   Article 115 becomes Article 114, worded as            Unchanged
                    Article 115                    follows :                          1
Where the expenditure co'vered " v
                                                   Article 114                                                                Article 1H
"by the appropriations entered in the
 Chapter of the Budget headed "Expenditure         Every .food aid programme shall , once adopted by the unchanged
 on Food Aid" is financed by " the granting of     Council , be made the subject of a proposal for
                                                   commitment in accordance vith the procedure laid
 advances to the Member States , Articles 107      down in Articles 40 to W, •
 to 111 inclusive shall he applicable to
                                                   The advances paid to Member States shall be
 such expenditure .                                entered globally against the abovcmcntioned
                                                   commitments ?       the supi set aside for the
                                                   commitments may not be exceeded.
 The Commission may decide , up to 31 March
 of the following financial year , on              As regards the booking as payment of the expenditure
                                                   effected by the Member States using the funds
 transfers from one article to another             advanced by the Commission , and as regards the
 within the said chapter.                          clearance of accounts , the provisions of
                                                   Articles 108 to 110 snail apply.
                                                   The Commission may decide, up to 31 March
                                                   of the following financial year, on transfers
                                                   from one article to another within the said
                                                   chapter.                   1
 ---pagebreak---                                                       A new Title X, worded ay follows, hat been
                                                      introduced:                                                                                      - 137
                      ANNEX I
  SPECIAL PROVISIONS RELATING TO THE OFFICE
  FOR OFFICIAL PUBLICATIONS OF THE EUROPEAN                              TITLE X
                                                                                                                                  TIRE X
                    COMMUNITIES
                                                SPECIAL PROVISIONS RELATING TO THE OFFICE                  SPECIAL PROVISIONS RELATING TO THE OFFICIAL
   (Annex referred "to in Article 119 of the             FOR OFFICIAL PUBLICATIONS OF THE
                                                                                                           PUBLICATIONS OFFICE OF THE EUROPEAN COMITIES
    Finencial Regulation )                                     EUROPEAN COMMUNITIES
                   Article 1
                                                      Article US                                                                Article 115
  Without prejudice to the other provisions of        1.    Without prejudice to tjie other provisions     Unchanged
                                                      of the Financial Regulation, the following
  the Financial Regulation , the following            special provisions shall apply to the functioning
                                                      of the Official Publ 1 cations Office of to#
  special provisions shall apply to the               European Communities.          '
  functioning of the Office for Offioial
                                                      2. The appropriations fcx the Official -*
  Publications of the European Communities .          Publications Office, the toql amount of which
                                                      shall he entered under a speiial budget heading
                                                      within the section of the budget relating to the
                                                    " Commission, shall be set o,jt in detail in an
                   Article 2                     . Annex to that section. The appropriations
                                                      shown under this specific budget heading may
                                                      be transferred in accordance ipith the conditions «
  The appropriations and revenue of the Office       set out in Article 2t .
  shall he entered under each of the chapters
                                                      The Annex shall take the for^i of a statement of
  in the section of the Budget relating to the        revenue and expenditure, subdivided in the
                                                      same way as the sections of the budget.
  Commission .   A summary table annexed to the
                                                     The appropriations entered ii| that Annex shall
• section of the Budget relating to the               cover all the financial requirements of the Official
                                                     • Publications Office           »!>« performance of
  Commission shall shew the aggregate estimates   __ its duties in the service of the Community'*
                                                     institutions as defined in the Decision of 16
  of revenue and expenditure In respect of the       January 1969 setting up the Office.
  Office , subdivided in the saoe way as the         Where necessary, the estimates may be adjusted
                                                     durinc the financial vcar by the Managing-–
  sections of the Budget .   The corresponding          Board of the Office which shall decide on
 appropriations shall be used for the Office          the transfers required within the Annex as a
                                                      result of such adjustments.
 to the extent of these estimates .
 ---pagebreak---                                                 - 130 -
Where necessary , the estimates nay be
adjusted "by the Commission during the
financial year , on a proposal from the
Management Committee of the Office#
                   Article 3
 Any service provided by the Office for an
 institution shall give rise to the issue of
 an invoice , 'based on the cost price
 established "by means of the analytical
 accounts or , failing this , on the fixed cost
 laid down "by the Management Committee of the
 Office .
 The .method of settlement of these   invoices
 shall be defined by the Minageinent Committee
 of the Office .
                    ι
 Each institution shall retain the power of
 authorization of expenditure in respect of
 any work it has submitted to the Office .
 ---pagebreak---                   Article 4                      3.    The remarks on ( lie page lacing the            Unchanged
                                                 specific budget heading under which is entered
                                                 the total appropriation for the Official Publications
On a proposal from the Management Committee t    Office shall        show an estimate of the cost
                                                 of services rendered by the Office to each of the
the Commission shall delegate the powers of      institutions. This shall be based on the forecasts
                                                 of the analytical accounts provided for in
authorization to the Director of the Office      paragraph 5 below.
and shall fix the limits and conditions of       The total costs of services rendered by the
                                                 Office shall correspond to the total expenditure
such delegation .                                shown in its statement of expenditure,
                   Artide 5                      A paper setting out the basic data underlying the
                                                 estimate of the allocation of the Office 's services
                                                 as between the institutions shall be            . rr-
 The Financial Controller shall delegate the     provided as a supporting document for the
                                                 preliminary draft budget.
 powers to an official responsible for the       4.    Each institution sh.ill , for guidance, enter
 control of commitment and authorization of      in its section of the budget a pro forma
                                                 appropriation corresponding tp the services
 expenditure and for the control of the          which it expects the Office to render to it
  revenue pf the Office .
                                                 during the financial year concerned.
                                                 5.    The Official Publications Office shall :
 The Commission | on a proposal from the         draw up analytical accounts of its expenditure,
 Management Committee of the Office , shall      enabling the proportion of its services rendered
                                                 to each of the institutions to be assessed each
 appoint an assistant accounting officer         month. The Managing Board shall lay ; -*■
                                                 down the criteria on which the accounting
 specially responsible for the collection of     system shall be based.
                     !
 revenue and the settlement of expenditure       The Office shall notify the institutions
                                                 concerned of the results of the analytical
                                                 accounts .
  effected directly "by the Office#
                                                 6.    On a proposal from the Managing '
                                                  Board        the Commission shall, for the
                   Article 6                     appropriations entered in the Annex for the
                                                 Official Publications Office, delegate the powers
                                                 of authorization to the Director of the Office
                                                 and shall fix the limits and conditions of such
  To meet the cash requirements of the Office ,
                                                 delegation.
  "bank rcsountB or post office giro accounts
                                                 Each institution shall retain the powers of
  may 'be opened on its behalf by the Commission authorization for expenditure charged to the
                                                 appropriations for the publication of all work
   on a proposal from the Management Committee . entrusted to outside bodies by the Office.
 ---pagebreak---                                                     140
Payments effected "by the institutions by way
of advance , instalment or final payments
against invoioes issued by the Office , and the
proceeds of sale of publications "by the Office ,
shall be paid into those accounts .
The revenue of the Office , other than the taxes
and contributions chargeable to the officials
under the Staff Regulations , shall also "be paid
into those acoounts .                            f
Where necessary , those accounts shall also be
replenished by cash advances made by the
Commission .
                                                  I
The final cash position fop each year shall
be adjusted between the Office and each
 institution at the end of the financial
year .
 ---pagebreak---                                                                                                               « » r a
                                                 7.    The Financial Controller shall delegate      Unchanged
                                                powers to an official responsible for the control
                 Art iole 7                     of     commitment       and     authorization   of
                                                 expenditure and for the control of the revenue
                                                 of the Office.
The revenuo and expenditure account and. the
                                                 The Commission, on a proposal from the
■balance sheet in respect of the Office          Managing Board of the Office , shall             >
                                                 appoint an assistant accounting officer specially
 shall form en integral part of the revenue      responsible for the collection of revenue and the
                                                 settlement of expenditure effected directly by
and expenditure account and of the "balance    • the Office.
 sheet of the Communities referred to in
                                                 8. To meet the cash requirements of the
                                                 Office, bank accounts or post office giro
Articles 81 and 8} of the Financial              accounts may be opened on its behalf by the
                                                 Commission, on a proposal from the
 Regulation .  A summary table clearly           Managing Board.--- -f5"
                                                 The accounts shal ] be financed regularly by
 showing the revenue and expenditure             payments effected by the Commission upon
                                                 receipt of calls for funds from the Office. Such
account of the Office shall "be annexed          payments may not exceed the total amount of
thereto .
                                                 the appropriations entcretj for this purpose in
                                                 the Commission budget.
                                                 The final cash position for each year shall be
                                                 adjusted between the Office and the Conn! ssl on
                 Article 8                       at the end of the financial year.
                                                 9. The net proceed ; from sales of
The Kanagement Committee of the Office shall     publications by the Office shall be re-uscd by
                                                 fhc institution which dre}V up the publication,
determine the detailed rules for the             pursuant to Article 22 (2).
application of the preceding provisions , ar.d   10.    The revenue and expenditure account and
                                                 the balance sheet in respect of the Office shall
also the rules of business accountancy           form an integral part of the revenue and
                                                 expenditure account and of the balance sheet of
                                                 the Communities referred to in Articles 81 and
applicable to the Office concerning both
                                                 84 of the Financial Regulation.
expenditure and revenue and , in particular ,    11 .   The Managing Board of the
                                                 Office shall determine the detailed rules for the
the proceeds of sales , taking into accouni      application of the preceding provisions, and also
                                                 specific rules governing the terms of sale of
the provisions of Article 22 (b ) of the         publications and the corresponding accounting
                                                 system.
Financial Regulation and the distinctive
nature of the Office .
 ---pagebreak---                                                                                                                                                             - 142
                        TITLE Xa                                          TITLE Xa                                             TITLE Xa
Special provisions applicable to the European          Special provisions applicable to the European Special provisions applicable to the European Regional
            Regional Development Fund                            Regional Development Fund                                 Development Fund
                        Article 115a                             Deleted                             Deleted
The provisions of Titles I to VI Inclusive and XI of
this Financial Regulation shall apply to the European
Regional Development Fund save as otherwise provided
by the special provisions of this Title,
                        Article 115b
1 . The budget of the European Communities for a
given financial year shall show under the Title
for the Fund for the financial year concerned:
( a) corasl trient appropriations ; and
( b) paynent appropriations.
2. The appropriations for commitment shall represent
the upper limit of expenditure to which the Commission
may consalt itself for the implementation of the
corresponding operations .
Commitment appropriations which are not used by the
end of the financial year for which they are entered
In the budget shall renaln available during the
following two financial years .
  ?, The appropriations for payment shall represent
  the upper licit of expendl ture . which may be •
 authorized or paid Airing each financial year to
 cover eoasl tnents entered Into during the same
 financial year or preceding years.
                       Article 115c
 Decisions to grant assistance through the Fund
  taken by the Commission on requests by the
 Member States , shall be considered as commitments
 of expenditure for the Fund.
 ---pagebreak---                            TITLE XI                                                 TITLE XI                                            II TIE XI
                     FINAL PROVISIONS                                  TRAWSI TIONAL Af.'O FINAL PROVISIfflS                  TRANSITIOUL ANO FINAL PROVI SION
                        Article 116                                                 Article 116                                       Artide 116
 The European Parliament and the Council shall              Unchanged                                               Unchanged
  t>e empowered to require all information or
  explanations in respect of budgetary natters
  within their oonpetenoe .
  The Council say be assisted In its tasks by a
. Committee set up within the framework of ths
   Pernanent Representatives Conalttee.
                        Article 117                                                Article 117
                                                                                                                                     Article 117
  The European Parliament , the Council and the             The European Parllaisent , the Council and the          unchanged
                                                            Coecisslon shall Infora the Court of Auditors , each
  Comaission shall inform the Audit Board , each            in respect of Its own competence , as soon as
                                                            possible , of all decisions and eeasures taken
   for Its oun part, as                                     Jn ieplecen tation of Articles 3, 6 ( subparagraphs 2
  soon as possible , of all decisions and measures          and 7), 8, U and 21 .
 taken in implementation of Articles 3 , 6(2) and ( 7),
   8, 1 * and 21 .
 The Audit Board shall be informed of the appoint­           The Court of Auditors shall be inforsed of the         Unchanged
                                                             appointnent of authorizing officers , financial
 ment of authorizing officers , financial controllers ,      controllers, accounting officers and lr.prest-holders,
                                                              and of the delegations or nocinatlons »ade In
 accounting officers and adiinistrators of leprest account^ accordance uith Articles 13 , 19, 20 and 57.
  'and of the delegations or. a'ppointaents cade In
 accordance with Artioles 18 , 19, 20 end 57 •
 ---pagebreak---                                                                                                                - 144 _
The Commission shall inform the Audit Board of the The Commission shall Inform the Court of Auditors Unchanged
measures of implementation taken under Artiole 118 of the measures of Icpleoentation taken under
                                                   Article 118 .
Moreover , the Institutions shall                  Moreover , the Institutions shall forward to      Unchanged
 forward to the Audit Board any rules              the Court of Auditors any rules of procedure In
 of procedure in respect of financial              respect of financial natters.
 natters *
 ---pagebreak---                  Aortiolo 1X3                                            Article 118                           ArUcle 118
 In consultât iv.i viih tho European     Unchanged                                                   Unchanged
 Parliament and, the Council and after
 the other inst itut ions have have
 delivered their opinions , the
 Commission Bhall adopt measures for the
 implementation of this Financial
Regulation *
                Article 119              Article 119                                                           Artide 119
                                         1 . (a) The provisions atpcnding Articles 26, 28        1 . Unchanged
The special provisions relating to the               and 29 shall not apply until 1 January
                                                      1978.
Office for Official Publications of the       (b) The provisions of Articles 26 to 31 , 33,
                                                     34 ( 1 ), the first subparagraph of Article
European Communities shall "be set out               34 (2), and Articles 37 ( 1 ) and 38 of
                                                      Financial Regulation No 73 /9I / F-CSC,
in Annex I and form an integral part of               EEC, Euratom of 25 April 1973 shall
                                                     remain in force until 31 December 1977.
this Financial Regulation *
                                                     VC'hen the accounts for the 1976 and
                                                     1977 financial years are closed , the
                                                 ; - Commission shall draw up a statement
                                                     of sums paid, comparing the sums
                                                      actually paid by the Member States with
                                                     those due to have been paid under the
                                                     statements of revenue and expenditure
                                                     for the financial year in question. This
                                                     shall be followed by a clearance of the
                                                     difference showp in the statement.
                                              (c) The provisions of Article 38 shall remain
                                                     in force until the final date set for
                                                     implementing the finance mechanism
                                                     established by Council Regulation No
                                             ' • 3172/76 of 17.5.1976 ( 1 )
                                              ( l ) OJ No L 131 of 20.5.1976.
 ---pagebreak---    2.    The provisions of the ft -unit par.\|;r:ij>h of    2. Unchanged
   Article K, anJ Aitidc 9 and the first paragraph
   of Article 92 (in so far a* they amend the
   current rule*) and the provisions concerning the
   Court of AuJitors shall not come into force
   until the date of the ratification of the Treaty of
   22 July amending certain financial provisions of
   the     Treaties      establishing the     European
I Communities and the Tre.ity establishing a
   Single Council and a Single Commission of the
    European Communities
    J. The provisions of Articles 86 to 92 shall be          3. Unchanged
    reviewed, in accordance with the procedure laid
    down for this purpose in the Treaties, after the
    Court of Auditors has issued its opinion on
    these provisions.
    Pursuant to the provisions of Article 28 of the              Unchanged
     Treaty of 22 July 197J, the terms of office of
     ihe members of the Audit Board and thai of the
      auditor shall expire on the day they submit iheir^
     report on the financial year preceding that in
     which the members of the Court of AuJitors are
.1 appointed; their powers of audit shall be
      confined to operations relating to that financial
      year. These powers shall be exercised in
      accordance with the provisions of Articles 85 to
      92 of Financial Regulation No 73/91/ECSC,
      EEC, Euratom of 25 April 1973.
                                                                  After the members of the Cou rt o f
                                                                  Auditor s have been app oi nted , the
                                                                  three a uthor ities responsible for
                                                                  external control shall confer and
                                                                  tak e th e appropriate neasure s to
                                                                  assure continuity of control .
                                                               I. Unchanged
       4. Appropriations committed but not paid at
       the end of the financial year               (date of
       entry into force of the amendments) shall be
       regarded as appropriations salntalned under
       Article 6 (3 ) (b).
 ---pagebreak--- 5.    Commitment authorizations for the Social       Unchanged
Fund issued on               (date of the entry into
force of the amendments) on the basis of Article
 104 of Financial Regulation No 7.V91 • F.CSC,
 F.KC, F.uratom of 25 April 1973 shall remain in
force during the financial yeaf for which they
were issued and the sums committed under
these . authorizations shall be added to the
appropriations for commitmcn| for the financial
year for which they were openejj.
6.     Exceptionally:                                Unchanged
– payments made up to 31 January 1973 for
     the Guarantee Section of the European
     Agricultural Guidance and Guarantee Fund
     by the bodies and departments referred to in
     Article 4 of Regulation (EEC) No 729/70
     shall be included in the accq.unt for 1972,
~ in the case of the Guidance Section of the
     European Agricultural Guidance and
     Guarantee Fund a specia|| entry shall be
     made in the remarks colurpn of the budget
     regarding the appropriations reserved for
     improving agricultural structures which have
     been carried over from previous financial
     years but commitment t)f which is not
     planned during the financial year concerned.
     In that year they will not require to be
     covered by revenue. Fiowtver, in so far as
     they were the subject of commitment
     decisions pursuant to the provisions
     established under the common agricultural
     policy,     they     constitute    commitment
     authorizations. Where this is the case, the
     appropriate amendments oil the revenue side
     shall    be    effected    through    budgetary
     procedure.
 7. The appropriations for commitment                Unchanged
 entered in the budgets for 1975, 1976 and 1977
 for the European Regional Development Fund
 and not committed by the end of the financial
 year for which they were entered in the budget
 shall remain available for thq, two subsequent
 financial years.
 ---pagebreak--- 8. (a) The provisions amending Articles 10 and      ( a) Unchanged
       71 shall not enter jjnto force until
       1 January 1978,           ;
       From    that   date   the   term 'unit of
       account'     used    in     this Financial
       Regulation shall be ta]cen to mean the
       European unit of account (EUA) as .
       defined in Article 10.
       Until 31 December 1977 the provisions
       of Articles 10, 27 and 71 of Financial
       Regulation No 73 /91 /ECSC, EEC,
       Euratom of 25 April 1973 shall remain in •
       force.
   (b) The conditions in which the European         ("b ) Unchanged
        unit of account ( EllA) Is to be applied to
       revenue and expenditure snail be decided
       in accordance with the implementing
       measures envisaged in Article 118 of this
       Financial Regulation.
 ---pagebreak---                                                             Article 120
               Art iole 120
                                                  Unchanged
The following instruments ere hereby
repealed i
 - Finanoial Regulation of 30 July 1968
   on the establishment and implement­
  ation of the Budget of the European
   Communities and on the responsibility
   of authorising officers and accounting
   officerB C1 )}
 - Financial Regulation of 23 October 1961
   on the establishment and implementation
   of the Research and Investment Budget
   and on the responsibility of authorizing
   officers and accounting officers
                                               2
    (Article 183 (a ) and (c) of the Treaty) ( )j
 - Financial Regulation of 31 'January I96I on
   the methods and procedure whereby the
    contributions of Member States are made
    available to the Commission as referred to
    in Article 200 ( l ) and (2 ) of the Treaty
    establishing the European Economic
    Community and on the technical conditions
    governing the carrying out of the financial
    operations relating to the European Social
    Fund (Article 209 (b) of the Treaty) (3);
 ---pagebreak---  - Financial Reflation of 31 January 1961           Unchanged Unchanged
    on the methods and procedure whereby the
    contributions of Member States are made
    available to the Commission , as referred to
    in Article 172 ( l ) of the Treaty establishing
    the European Atomic Energy Community
     (Article 183 (b) of the Treaty) (^);
  – Financial Regulation of 2 April 1962 on
     methods and procedure whereby the
      contributions of Member States are made
     available to the Commission , as referred
     to in Article 172 (2 ) of the Treaty
      establishing the European Atomic Energy
      Community (Article 183 (b ) of the Treaty )
      <5>!
r ) OJ No L 199 , 10 . 8. 1968 , p. 1 .
(2 ) OJ No 74 , 16 . 11 . 1961 , P. 1433/61 .
(3 ) OJ Ko 22 , 30 . 3. 1961 , p. 509/61 .
(4 ) OJ l?o 22 , 30 . 3 . 1961 , p . 518/61 .
^ o.T Vù ■>,?. "VD . A. 1962 . T>. 1070 /62 .
 ---pagebreak---  - Financial Regulation of 15 December 1 9&9
   determining the procedure for pre sent ing
   and auditing accounts ( );
 - Financial Regulation of 20 September 197 1
   on the special arrangements applicable
   to Research and Investment
                    η
   appropriations ( ' );
 - Financial Regulation of 24 April 1972 on
   the special arrangements applicable to
   the European Social Fund ( g ):
 – Financial Regulation of 7 November 1972
   on the special provisions applicable to
   the European Agricultural Guidance and
   Guarantee Fund, Guarantee Section (^);
                     9
 - Financial Regulation of 18 January 1973
    on the special provisions to cover the
   cash needs of the Communities in the
   content of budgetary expenditure^^.
All previsions which are contrary to thiB
Financial Regulation arc aloo hereby
repealed , except for the provisions
neceB3ary for the application of Article 14
 ---pagebreak---                                                                          - 152
of Council Regulation (EEC ) HO 728/70 of            Unchanged Unchanged
21 Aprii 1970 on additional prcvisionu for
the financing of the Common Agricultural
lolicy (^) and Article 16 (1) of Council
Regulation (EEC) No 729/70 (12) of 21 April 1970, on
the financing of the Connon Agricultural Policy.
(f ) ~OJ ïïoL326 , 29. 12. 1969, P. 34 .
 (7 ) OJ No L 218, 28. 9. 1971 , P. 8 .
 (8) OJ No L 101,    28. 4 . 1972 , p. 34.
 (9) OJ No L 257,    15. 11 . 1972 , P. 22 .
 (10) OJ No L 19,    24 . 1 . 1973 , p. 11.
 (n ) OJ No L 94 ,   28 . 4 . 1970 , p . 9.
  (12 ) OJ No L 94 , 28 . 4 . 1970 , p. 13.
 ---pagebreak---               Article 121                               Article 121           Article 121
This Financial Regulation shall enter        Unchanged.             Unchanged
into force on 1 May 1973 •
This Financial Regulation shall "be "binding
in its entirety and directly applicable in
all Member States .
Done at Brussels , 25 April 1973
                                                            »
                      For the Council
                       The President
                     R. VAN ELSLAMDE