CELEX: 51977PC0122
Language: en
Date: 1977-04-06
Title: Amended proposal, in accordance with Articles 149/EEC and 119/ECSC, for Title VII - Special Provisions applicable to the Research and Investment Appropriations of the 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) 122
Vol. 1977/0049
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM(77)122 final.
                                          Brussels , 6 April 1977 •
    Amended proposal , in accordance with Articles 149/EEC
    and 119/ECSC , for Title VII - Special Provisions
    applicable to the Research and Investment Appropriations
    of the 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)
                                         V
  COM(77 ) 122 final ,
 ---pagebreak--- Amended proposal , in accordance with Articles 149 /EEC
and 119/ECSC , for Title VII - Special Provisions
applicable to the Research and Investment Appropriations
of the Council Regulation (ECSC , EEC , EURATGM ) amending
the Financial Regulation of 25 April 1973 applicable to
the General Budget of the European Communities
 ---pagebreak--- Explanatory ncrnorandum
A.     The basis for this proposal
                 Λ
On 26 May 1976 , the Commission sent to the Council a proposal for
amendments to the Financial Regulation of 25 April 1973 , including
a number of changes to the special provisions on research and
investment appropriations ( Articles 93 to 103). The main objective
was to enhance the transparency of the Function-orientated Research
Budget , i.e. Annex 1 (Statement of Revenue and Expenditure relating
to Research and Investment Activities) to the Commission Section
of the General Budget , aa objective embodied in the European
resolutions of 2? October 1976 ( point 1 <?) and 14 Docaobsr 1976
( point 20).
Before adopting the Community Budget for 1977 , the European Parliament
adopted two amendments (N ob 14 and 15) concerning & new presentation
for research and investment appropriations within the Commission
r ret ion of the Genei-al Budget .  These amendments are backed up by
justifications eraphanizln# the need for a new presentation of these
appropriations in 1978 on the basis of the Nomenclature approved for
 1977 . The Commission was asked to report before the end of 1977 ©n
the results of applying this neV Nomenclature . The final changes to
the Budget Nomenclature and to the presentation of research and
 investment appropriations , sji well as any amendments to th« regulations
which may r*suit therefrom , would be formulated on the basis of this
 report .
 It should be recalled that the Preliminary Draft Budget for 1978 is to
 be drawn up in th® next few months and that it would be desirable to
 una the new format to present the research and Investment appropriation#
 for this Budge t <> T3ie Commission therefore proposes that the amendments
necessitated by this new format be incorporated la th« ftbonrsaeatioaed
proposal of 26 Hay 1976 now b«for* the Council*
  Doc . C0M(76) 210 final . Meanwhile , on 11 March 1977» *ke Commission
sent to the Council an, amended proposal which takes into account , to
a very large extent , P&riiaaaat 's opinion «mhodi»d is its resolution
of 14 December 197 60
 ---pagebreak--- B.   The essence of this proposal
Like the proposal of 26 May 1976, this proposal does not call into
question the functional presentation of the researoh and investment
appropriations nor their special features which result from the
provisions of the EABC Treaty .
1 . However, this presentation will now be confined to Chapter 33
of Section III of the Budget in which the appropriations are
classified, in accordance with their purpose , into articles and
items for the JRC and indireot aotion.       In theory, with this
new presentation each item corresponds to one research objective
consisting of one or more activities , and so the new items correspond
to the chapters of the present Annex I to the Commission Section
of the General Budget .
The appropriations in these items are broken down according to
type, into sub–items comprising the following expenditure ( in
oondensed form):
    staff expenditure
    administrative operating expenditure
    technical operating expenditure
    investment expenditure
    contract expenditure
    miscellaneous expenditure ( grants , training periods , visiting
    scientists , vocational training schools ).
2 . A provisional schedule showing the total financial allocation
for eaoh objective , the budgetary tranches made available and the
timetable for the utilization of appropriations for commitment
and appropriations for payment is contained in and is an integral
part of Chapter 33 •
3 . An important innovation is the transformation of the Statement
of Expenditure in Annex I into "Financial Schemes ", one for
direct action, the other for indireot action.       These schemes are
attached to the Preliminary Draft Budget as working papers .
Part 1 consists of the researoh objectives following the
Nomenclature used to present the appropriations in Chapter 33 .
 ---pagebreak---                                - 3 -
Part 2 of the Financial Schemes ( the principle of which is
contained in the Commission's above mentioned proposals ) contains
the " instruments of implementation" in the form of appropriation
accounts , mainly relating to the JRC .        By way of a guide , these
instruments are :
     the scientific divisions
     scientific and technioal support
     the general services .
Part 3 consists of the staff expenditure accounts .
4 . Within each appropriation account and the staff expenditure
accounts expenditure is classified by type in sub–items in
accordance with the criteria for the classification of expenditure
 within Part 1 .       Sub–items may be subdivided into categories ^ and
headings^ for the purposes of administration.
 As already mentioned, txie Financial Schemes are annexed to the
 Preliminary Draft Budget as working papers .        This means that it
 is still possible to make a detailed examination of the financial
 requirements of the research objectives and of the instruments of
 implementation.        In addition, these Schemes , which are to be
 adjusted in accordance with the Budget finally adopted, -will be
 used for administrative purposes , enabling the execution of
 the appropriations made available in Chapter 33 of the Budget to
be monitored in greater detail .
 1
   e.g. :
   Sub–item 33001s      Staff expenditure
   Category 11     }    Chapter 11 )  «
   Category 12     t    Chapter 12) of
                                     of the
                                        th  General Budget
        •
   Category 11 :
   Heading 1100:
                     ■B .     ,         {corresponding to the items of the
                     flaslo salary      ^nomenclature within Chapter 11 of
   Heading 1101 :    Family allowances)the General Budget .
   eto . up to
   Category 11 84s     Allowances for standby duty at work or at home .
 ---pagebreak--- 5.   Another innovation compared, with the proposal of 26 May 1976
concerns the presentation of Chapter 92 of the Statement of
Revenue in the General Budget .    It should, be recalled that at
present the revenue accruing from:
– placing installations and/or staff of the Commission at the
   disposal of third parties ( Member States or national
   organizations ) pursuant to Article 6(c ) of the Euratom Treaty);
–  contracts of cooperation with certain third States :
–  work for third parties on request and against payment is booked
   only as resources to the corresponding appropriation accounts .
These resources are intended exclusively to cover the relevant
expenditure imputed to the appropriation account concerned.       The
point is that this proposal is based on the assumption that ,
pursuant to the "global " principle , which calls for the entry of
all expenditure and all revenue in full in the Budget , the
expenditure on the abovementioned activities should also appear
in the Commission Budget .    However, it is planned to continue
the practice whereby additional revenue from services rendered
for third parties supplements the appropriations earmarked for
the activity concerned by the amount in question.
Although this innovation will inevitably swell the Statement of
Revenue and the Statement of Expenditure , it has the advantage
of making the presentation of research and investment
appropriations more transparent .
6.  Last but not least , it should be pointed out that the new
presentation offers certain advantages as regards the size of the
Budget document .   Annex I (Volume 5 of the 1977 Preliminary
Draft Budget ), which at present consists of about 170 pages ,
disappears completely.     This represents a saving of about 100
pages in this Volume even compared with the presentation
envisaged in the Commission's proposal of 26 May 1976 which foresees
the retention of Part 1 of the present Volume 5 as Annex I.
On the other hand, the new presentation requires some 40 pages
in Chapter 33 of the Commission Section (Volume 4) of the General
Budget instead of the 12 pages at present , as a result of the
amendments made by the European Parliament .
 ---pagebreak--- There is . therefore, a net saving of about 140 pages .
7 . To sum up, the Commission feels that the amendments now
proposed are such a3 to make for a greater transparency and henoe
easier control over the research and investment appropriations ,
as requested by Parliament .
 ---pagebreak---                                                     XIX/ 21 3/ ' / < •
                               TITLE VII
 SPECIAL PROVISIONS APPLICABLE TO THE RESEARCH AMD INVESTMENT APPRO PRIAT10rJS
                           I
                             . Article 93
The provisions of Titles I to VI and XI shall apply to the researcn
and investment appropriations set out in the special chapter provided
for in Article 94 and to the financial schemes referred to in
Article 97 , save as otherwise provided in this Title or where they
are incompatible with the special provisions of this Title .
                               Article 94
The appropriations relating to research and investment shall "be
entered in a special chapter in the section of the Budget relating
to the Commission .
That special chapter shall contain :
– the appropriations intended to finance all research objectives ;
– the appropriations for concerted activities ;
– the appropriations for other activities .
                               Article 95
1 . An overall allocation covering several years ( hereinafter called
"tranche") shall be made for each activity covered by Article 94 «
In budgetary terms , the tranche for the research and investment
objectives and for the concerted activities shall be the total
allocation provided in the Budget for each research and investment
objective , taking into account any financial reserves , except where
the objective or the concerted activity comprises several specific
stages each forming a self–contained whole .
2.   Amounts authorized annually in the Budget to cover research and
investment expenditure shall comprise appropriations for commitment
and appropriations for payment .
 ---pagebreak---                               - 2 -
                    /
3 . The appropriations for commitment within each tranche are
intended to enable the Commission fully to cover all the legal
obligations which it may contract .
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 .
Notwithstanding the provisions of Article 6(3)(b ), the appropriations
for commitment shall remain valid until they are cancelled under
the budgetary procedure .
4 . The appropriations for payment represent the upper limit of
 expenditure which may be paid or authorized for payment during each
financial year to cover commitments entered into during the current
year or earlier financial years .
Notwithstanding the provisions of Article 6 , the appropriations for
 payment corresponding to appropriations for commitment shall be
 carried forward until cancelled under budgetary procedure .
                             Article 96
The nomenclature of the special chapter provided for in Article 94
 shall be based , as regards the description of chapters and items ,
on the purpose of the expenditure resulting from carrying out research
objectives , concerted activities and other activities .
Within the items , expenditure shall be classified according to its
nature into sub-items .
                             Article 97
I. In addition to the documents referred to in Article 12 ,
financial schemes shall be drawn up to support the preliminary draft
budget . These financial schemes , amended if necessary in accordance
with the Budget , shall be used for management of the appropriations
entered under the special chapter provided for in Article 94 •
 ---pagebreak---                                - 3 -
 2&   The financial s ^ emes shall comprise :
 (& ) Part I containing the appropriations for carrying out each
research objective , each concerted activity and each other activity ,
including work on behalf of third parties , as entered in the articles
and items in the special chapter provided for in Article 94 * The
nomenclature of Part I shall be drawn up in accordance with the
provisions of Article 96 ?
 (b ) Part II containing, in the form of appropriation accounts , the
appropriations corresponding to the instruments of implementation for
the research objectives , concerted activities and other activities .
For example , such instruments may include :
– the scientific divisions
– the général services
** the scientific and technical services .
 (c ) Part III containing the accounts showing expenditure on staff .
3 . An appropriation account shall be provided for each instrument of
implementation . Each appropriation account shall show the appropriations
entered in the different articles and items in Part I specifically for
use of the corresponding instrument of implementation . Within the
appropriation accounts and the accounts referred to in paragraph 2(c )
above the appropriations shall be classified according to their nature .
For management purposes , the sub-items may be subdivided into
categories and headings .
4•    The charges to the accounts showing staff expenditure shall not
exceed the amounts made available in Part I of the financial scheme .
The charges to the appropriation accounts shall not exceed the amount
of the appropriations entered in the articles and items in Part I
of the financial scheme . However , in the case of transfers or of
additional amounts made available as a result of supplementary receipts
from third parties , expenditure may be increased accordingly :
 ---pagebreak---                                 - 4 -
„ for commitments , up to the amount of the repayments provided for
   in the contracts conoluded with requesting third parties ,
- for payments, up to the amount of the entitlements for such
   repayments .
5 . The charges in the staff expenditure accounts shall "be allocated
monthly to the first and second parts of each financial scheme .
The charges in the appropriation accounts shall be allocated monthly
to the objectives , concerted activities and other activities in
the first part of the financial scheme according to the relevant
share of the work done by the instruments .
Such charges shall be transmitted to the Financial Controller for
approval , and then to the Accounting Officer .
The charges for objectives , concerted activities and other activities
in the first part of the financial scheme shall be allocated monthly
in the Budget to the articles and items in the special chapter provided
 for in Article 94 , by the issue of a proposal for commitment and a
pro forma payment order which shall be transmitted to the Financial
Controller for approval and then to the Accounting Officer .
                              Article 98
The special chapter provided for in Article 94 shall include a
provisional schedule of commitments and payments drawn up for each
article and item showing, for each tranche , the timetable for
utilization of the corresponding appropriations for commitment and for
payment ; the schedule shall be reviewed annually .
                              Article 99
If , at the beginning of a financial year , the Budget has not yet been
finally adopted , expenditure shall be effected as follows :
1 . (a) Payments may be effected monthly in respect of any article or
        item in the special chapter provided for in Article 94 » up "to
        an amount not exceeding one-twelfth of the annual estimates
        shown for that financial year in the schedule of amounts and
        due dates for payment in respect of the estimated appropriations
        for commitment .
 ---pagebreak---       (b ) Commitments may be effected up to an amount not exceeding
           ona-fourth of »ftoh appropriation shown in the schedule of
           due dates for the 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 , or in the absence thereof , in the
           preliminary draft budget .
2.   However , in the absence of a schedule of commitments and payments
for the financial year in question , the operations referred to above
may be effected up to an amount not exceeding the appropriations
entered in the draft budget , or in the absence thereof , of the
preliminary draft budget for the financial year in question, provided
that such measure does not each month make available to the Commission
– in respect of payments , total appropriations exceeding one-twelfth
   of the total of those entered in the Budget for the preceding
   financial year ,
– in respect of commitments , total appropriations exceeding one-fourth
   of the total appropriations entered in the Budget for the preceding
   financial year , increased by one-twelfth for each month elapsed .
                                Article 100
1 . Every decision relating to transfers shall be subject to prior
approval by the Financial Controller , who shall certify that the
funds are available and that these operations are in order and in
accordance with the provisions in force .
2.   However , if the Financial Controller considers that he cannot
ascertain in advance the effects of such transfers on the financial
balance of the appropriation accounts of the financial scheme , he
shall confine himself to delivering an opinion .
In that case , and m so far as he is empowered , the authorizing
officer may on his sole responsibility effect the transfer , provided
 ---pagebreak---                                 - 6 -
that he makes available each month to the Financial Controller all
appropriate information enabling an assessment to be made of the
financial effects of such transfers .
If as a result of such information the Financial Controller finds that
a financial imbalance has occurred in any appropriation account , he
shall inform the authorizing officer thereof .
 3 . Adjustments between categories of the account showing staff
 expenditure and within the specific appropriations in the appropriation
 accounts shall be communicated to the Financial Controller but shall
not require his prior approval .
 4 . In order to enable the last budgetary charges to be made, transfers
 may be made even after the end of the financial year •
                             Article 101
 1 . Notwithstanding Article 2l(l ), the appropriations entered in the
 special chapter provided for in Article 94 shall be classified into
 articles and items according to the purpose of the expenditure and
 into sub-items according to their nature .       »
 2.  Notwithstanding Article 21 ( 3 ) ( b ), the Commission may transfer
 appropriations between the items in the chapter provided for in
 Article 94 «
 3«  Notwithstanding Article 21(4 ), "the Commission may , within the limits
and in the conditions fixed at the final adoption of the Budget , make
transfers of appropriations between articles and items in the chapter
provided for in Article 94 s which shall thereupon be specified by name
in the statement .
4*   Notwithstanding Article 21(6 ), the prohibitions of transfers
referred to therein shall not be applicable to items of expenditure
classified according to their nature , within the meaning of Article $6 .
5 . Notwithstanding Article 60(a ), a contraot for scientific and technical
equipment or building work; may be let by private treaty where the amount does
not exceed 20 COO units of account , without prejudice to those cases where
private treaties are allowed under Article 60(b), (c ) and (d ) and without
 ---pagebreak---  prejudice to the general obligation to invite competitive tenders , as
 far as possible and by all suitable means from all suppliers or contrators
capable of providing the servioes required by the contract ,
6 . Notwithstanding Article 62 , the following contracts shall be submitted
before the decision of the authorizing officer , for the opinion of an
Advisory Committee on Procurements and Contracts , whose composition and
functioning shall be laid down in the measures of implementation envisaged
in Article 118 :
(a) contracts of a scientific or technical nature , for sums exceeding
      100 000 units of aocount , and for the acquisition of immovable
      property ;
(b) contraots for supplies and equipment of a nature other than
      scientific or technical , for sums exceeding 25 000 units of account ;
( o) contracts for supplies and equipment of a nature other than
      scientific or technical for sums exceeding 5 000 units of account ,
      to which points ( c) , ( d) and ( e ) of Article 60 apply.
                             : I
7 . Notwithstanding the provisions of the firsi subparagraph of Article 68
scientific and technical equipment may be sold , without first being
advertised , following a deoision taken by the authorizing officer after
he has consulted the Advisory Committee on Procurements and Contracts .
                              r