Legislation

Report on discharge in respect of the implementation of the budget of the European Environment Agency for the financial year 2011

(C7-0249/2012 – 2012/2187(DEC))

This report by Gerben-Jan GERBRANDY (ADE, NL) was written for and adopted by the Committee on Budgetary Control. The opinion was sought and received from the Committee on Environment, Public Health and Food Safety. The report reviews the granting of discharge to the Director of the European Environment Agency (EEA) in respect of the implementation of the Agency’s budget for the financial year 2011.

The committee recommended (by 14 votes to 13, with 0 abstentions) that the European Parliament postpone its decision on granting the Executive Director of the European Environment Agency discharge in respect of the implementation of the Agency's budget for the financial year 2011.

In 2011, The EEA had a total revenue of EUR 44.5 million of which EUR 35.5 million was provided by the European Commission.

There were several reasons for the decision of the committee to seek postponement including:

concerns about the possibility of conflicts of interest arising over payment to an international environmental organisation, of which the EEA’s Executive Director was a member of the board of trustees;

a lack of transparency in certain procurement procedures;

weaknesses in EEA recruitment procedures;

concerns about the overall performance of the Agency.

However, contrary to the opinion of the Committee on Budgets, the European Parliament voted not to postpone the decision to grant the Executive Director of the European Environment Agency discharge in respect of the implementation of the Agency's budget for the financial year 2011. abstentions the report

The motion not to postpone discharge was carried on 17th April 2013 with 284 votes for, 356 against with 33 abstentions.

To read the report click here

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Report on discharge in respect of the implementation of the budget of the European Medicines Agency for the financial year 2011

(C7-0252/2012 – 2012/2190(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgetary Control. The opinion was sought and received from the Committee on Environment, Public Health and Food Safety. The report reviews the granting of discharge to the Director of the European Medicines Agency (EMA) in respect of the implementation of the Agency’s budget for the financial year 2011.

The EMA’s budget for 2011 was EUR 208,863,000 which represents a nominal increase over the financial year 2010. The EU’s contribution was EUR 39,765,191 for 2011, an increase of 8.65% from 2010. The rest was financed by fees paid by the pharmaceutical industry when applying for, obtaining or maintaining EU marketing authorisations.

The Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the Centre for the financial year 2011 are reliable and that the underlying transactions are legal and regular. Therefore, Members approved the closure of the Centre’s accounts.

The report expresses some concern that there may be a need for the introduction of a system of remuneration for services provided by Member States’ authorities, based on their real costs, as a large amount of the Agency's revenue is estimated to have derived from the fee revenue, which continues to increase year on year.

The Agency is called to continue its efforts to improve its execution rate of payment, which stands at 95.21% for commitment and 81.97% for payment appropriations.

Recruitment procedures: it was noted that there is a lack of transparency in the staff selection procedures and that there was no evidence of any action taken to address this issue.

Conflict of interest: it was noted that progress had been made to deal with problems over conflict of interest that had been highlighted in the previous discharge procedure. However, it was also noted that the Agency still did not adequately manage such conflict of interest situations. The Agency's commitment to undertake a review of the implementation of its revised policy on the handling of conflicts of interests was welcomed. The Agency is called upon to keep the discharge authority informed on the outcome.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www europarl.europa.eu

Report on discharge in respect of the implementation of the budget of the European Institute of Innovation and Technology for the financial year 2011

(C7-0275/2012 – 2012/2212(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgetary Control. The opinion was sought from the Committee on Industry, Research and Energy - but none was forthcoming. The report reviews the granting of discharge to the Director of the European Institute of Innovation and Technology in respect of the implementation its budget for the financial year 2011.

In accordance with its Foundation Regulation, the budget of the European Institute of Innovation and Technology (EIT) was financed by contributions from the European Union, the European Free Trade Association (EFTA) and by the host Member State. The Institute's overall budget for 2011 was EUR 64,294,640. The mission of the EIT - the headquarters of which are based in Budapest, Hungary - is to increase European sustainable growth and competitiveness by reinforcing the innovation capacity of the EU. The EIT facilitates transitions: “from idea to product, from lab to market, from student to entrepreneur”.

The Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the Institute for the financial year 2011 are reliable and that the underlying transactions are legal and regular. Therefore, Members approved the closure of the Institute’s accounts.

However, the Agency’s accounts have demonstrated a low execution rate, and therefore the report asks the institute to inform the discharge authority of the actions it will take to address this deficiency as the low execution rates show difficulties in budget planning and implementation.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

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Report on discharge in respect of the implementation of the budget of the European Insurance and Occupational Pensions Authority for the financial year 2011

(C7-0271/2012 – 2012/2208(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgetary Control. The opinions were sought from the Committee on Employment and Social Affairs and also from the Committee on Economic and Monetary Affairs. However, only the latter committee provided an opinion. The report reviews the granting of discharge to the Director of the European Insurance and Occupational Pensions Authority (EIOPA) in respect of the implementation its budget for the financial year 2011.

The Authority's overall allocated budget for 2011 amounted to EUR 10,667,000 made up from contributions by Member States, European Free Trade Association Countries and the EU.

The Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the Agency for the financial year 2011 are reliable and that the underlying transactions are legal and regular. Therefore, Members approved the closure of the Agency’s accounts.

It is highlighted in the report that, given that the Authority is an integral part of the European System of Financial Supervisors and works in close cooperation with its sister authorities, the European Banking Authority and the European Securities and Markets Authority, within a Joint Committee, and with the European Systemic Risks Board, Members call on the Commission to evaluate the possibility of coming up with a proposal ensuring that the budgets of the three European Supervisory Authorities (ESAs) are fully funded by the Union budget.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www.europarl.europa.eu

Report on discharge in respect of the implementation of the budget of the European Institute for Gender Equality for the financial year 2011

(C7-0269/2012 – 2012/2206(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgetary Control. The opinion was sought and received from the Committee on Women’s Rights and Gender Equality. The report reviews the granting of discharge to the Director of the Institute for Gender Equality (EIGE) in respect of the implementation its budget for the financial year 2011.

The overall budget of the Institute for the financial year 2011 was EUR 7.53 million, which was a 32.6% increase over 2010. The Institute is entirely financed by the Union’s contribution.

The Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the Institute for the financial year 2011 are reliable and that the underlying transactions are legal and regular. Therefore, Members approved the closure of the Institute’s accounts.

It is observed in the report that considerable commitment appropriations contracted by the end of 2011 but not yet paid were carried forward to 2012, represent 50 % of total commitments. They call on the Institute to inform the discharge authority of the actions taken to ensure a satisfactory budget execution rate in the future.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www.europarl.europa.eu

Report on discharge in respect of the implementation of the budget of Eurojust for the financial year 2011

(C7-0253/2012 – 2012/2191(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgets. The opinion was sought and received from the Committee of Civil Liberties, Justice and Home Affairs. The report reviews the granting of discharge to the Director of Eurojust in respect of the implementation of the budget of Eurojust for the financial year 2011.

To reinforce the fight against serious organised crime, the European Council, established Eurojust in 2002. The budget of Eurojust for the financial year 2011 was EUR 31.358 million. This represented a decrease of 2.91% compared to 2010.

The Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of Eurojust for the financial year 2011 are reliable and that the underlying transactions are legal and regular. Therefore Members approve the closure of Eurojust’s accounts.

The report notes that the payment execution rate for 2011 was 58%. Eurojust is requested to inform the discharge authority of the actions taken to address that deficiency as the low execution ratio indicates difficulties in the planning or implementation of Eurojust activities. The report also deplores the high level of carry-overs to 2012 (16% of total payment appropriations). Again, Eurojust is asked to inform the discharge authority of the actions taken to address that deficiency as its level is excessive and at odds with the principle of annuality.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www europarl.europa.eu

Report on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2011

(C7-0247/2012 – 2012/2185(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgets. The opinion was sought and received from the Committee on Civil Ciberties, Custice and Home Affairs. The report reviews the granting of discharge to the Director of the European Union Agency for Fundamental Rights (FRA) in respect of the implementation of the Agency’s budget for the financial year 2011.

The FRA’s budget for 2011 was Euro 20.18 million. The Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of FRA for the financial year 2011 are reliable and that the underlying transactions are legal and regular. As a result, Members approved the closure of the FRA’s accounts.

In 2011the Agency committed 100% of the appropriations received. However, in terms of paid appropriations, the Agency's execution rate stands at only 27% for operational expenditure. Therefore the Agency is called to implement specific measures to improve its budgeting process and execution rate of payment in the case of administrative and operational expenditure.

It is noted that there were cases of alleged psychological harassment within the Agency. As such the Agency, given the reputational risk at stake, should inform the discharge authority in detail on the rules of procedure established for the launch and conduction of internal investigations and the protection of witnesses' anonymity in the occurrence of such internal investigations.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www europarl.europa.eu

Report on discharge in respect of the implementation of the European Union general budget for the financial year 2011, Section II – European Council and Council

(COM(2012)0436 – C7-0226/2012 – 2012/2169(DEC))

This report by Andrea ČEŠKOVÁ (ECR, CZ) was written for and adopted by the Committee on Budgets. The author sought the opinion - but none was forthcoming - from the following committees:

Petitions

Regional Development

Constitutional Affairs

Development

Culture and Education

Foreign Affairs

Fisheries

Agriculture and Rural Development

Environment, Public Health and Food Safety

Employment and Social Affairs

Budgets

Industry, Research and Energy

Legal Affairs

Economic and Monetary Affairs

Civil Liberties, Justice and Home Affairs

International Trade

Internal Market and Consumer Protection

Transport and Tourism

Women’s Rights and Gender Equality

The report reviews the discharge being sought in respect of the implementation of the European Union general budget for the financial year 2011, Section II – European Council and Council

The report notes with some satisfaction that the Court of Auditors concluded that the payments as a whole for the year ended on 31 December 2011, for administrative and other expenditure of the institutions and bodies, were free from material error. Some of the key points highlighted in the report include:

Weaknesses in the application of selection and award criteria in the procurement of cleaning services and equipment, including clothing and shoes.

In 2011, the European Council and the Council had available commitment appropriations of appx. EUR 506 million with a utilisation rate of 90% which is lower than 2010. There is concern that the underspend rate has risen and continues to be high; it needs to be improved and suggests the development of key performance indicators within the most critical areas, such as delegations' travel, logistics and interpretation.

Parliament needs to review the complete annual activity report, including a comprehensive overview of all the human resources broken down by category, grade, gender, nationality and vocational training.

Concern that internal audit has highlighted weaknesses in the financial management and the procurement procedures in relation to IT consultant contracts and security contracts.

The need for the Council to provide a thorough explanation of the costs associated with the purchase of the Résidence Palace building.

DIsmay that the creation of the European External Action Service (EEAS) was not anticipated in the 2011 budget.

Regret that the Council continues to refuse to answer Parliament's questions on Budgetary Control and recalls the lack of cooperation exhibited by the Council that caused such difficulties in the discharge procedures for the financial years 2007, 2008, 2009 and 2010.

As such, the European Parliament decided to postpone granting the Secretary-General of the Council discharge in respect of the implementation of the European Council's and the Council's budget for the financial year 2011.

The European Parliament voted to postpone granting discharge on 17th April 2013 with 570 for, 5 against, with 10 abstentions.

To read the report click here

Alternatively visit the website at www.europarl.europa.eu

Report on discharge in respect of the implementation of the budget of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2011

(C7-0277/2012 – 2012/2215(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgets. The opinion was sought from the Committee on Industry, Research and Energy but none was forthcoming. The report reviews the discharge being granted to the Director of the European Joint Undertaking for ITER (International Thermonuclear Experimental Reactor) and the Development of Fusion Energy in respect of the implementation of the Joint Undertaking’s budget for the financial year 2011.

The Court of Auditors stated it had reasonable assurances that the accounts of the Joint Undertaking for the financial year 2011 are reliable, legal and regular. Therefore Parliament agreed upon the closure of the Joint Undertaking’s accounts. However, some recommendations were made which are summarised below.

The Joint Undertaking needs to enhance its efforts to increase competition. The number of offers received for the operational procurement procedures signed in 2011 was still low – averaging 2 offers per procedure and the number of grant proposals per call was just one.

The Joint Undertaking must find value for money in all possible acquisitions.

The Joint Undertaking continues to occupy temporary premises sponsored by Spain.

Some observations were also made regarding the Undertaking’s procurement procedures, internal control standards, intellectual property rights and industrial policy.

Furthermore, Parliament has invited the Court of Auditors to provide it with a special report on the common issues affecting all the Joint Undertakings (JUs) in order to ensure JUs provide value and efficient execution of Union research, technological development and demonstration programmes.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www europarl.europa.eu

Report on discharge in respect of the implementation of the budget of the Innovative Medicines Initiative Joint Undertaking for the financial year 2011

(C7-0281/2012 – 2012/2219(DEC))

This report by Gerben-Jan GERBRANDY (ADLE, NL) was written for and adopted by the Committee on Budgets. Opions were sought from the Committee for Environment, Public Health and Food Safety as well as from the Committee on Industry, Research and Energy. However, none was forthcoming. This report reviews the granting of discharge to the Executive Director of the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative Medicines (IMI) in respect of the implementation of the budget of the Joint Undertaking for the financial year 2011.

The Court of Auditors stated it had reasonable grounds for assurance that the annual accounts of the Joint Undertaking for the financial year 2011 were reliable but has delivered a qualified opinion on the legality and the regularity of the transactions underlying the Joint Undertaking's accounts. Parliament approved the closure of the Joint Undertaking’s accounts. However, a number of recommendations were made which need to be taken account when the discharge is granted. The following points were made in the report.

Financing, budget and financial management: the maximum contribution from the EU over a 10 years period to the Joint Undertaking is EUR 1 billion. There was a delay in the adoption of the implementation plan and the budget by the Governing Board. As such there was a delay in the call for proposals which meant the Joint Undertaking was obliged to use the provisional twelfths budget rule to make payments.

Implementation rate of appropriations and carryovers: There is concern about the low implementation rate of the commitment appropriations available for research activities and the low implementation of the Joint Undertaking’s budget. It calls for a detailed progress report on those shortcomings.

Qualified opinion of the Court of Auditors: Members are waiting on the agreement between the Court and the Joint Undertaking on an audit methodology.

The European Parliament voted to approve the report on the 17th April 2013.

To read the report click here

Alternatively visit the website at www.europarl.europa.eu